New York Codes, Rules and Regulations § 38.3 requires mortgage brokers, mortgage bankers, and exempt organizations to make certain disclosures when they take an application, application fee, credit report fee, or property appraisal fee. The required disclosures differ for mortgage brokers, mortgage bankers or exempt organizations. The disclosures are outlined in subsections (a) through (c), for mortgage brokers, mortgage bankers and exempt organizations, and mortgage bankers or exempt organizations acting in a mortgage brokerage capacity, respectively.
Pursuant to a document review, Docutech is making configuration updates for our NY Pre-Application Disclosure and Fee Agreement for Licensed Brokers (Cx3587), NY Pre-Application Disclosure for Licensed Bankers (Cx5100), and NY Application Disclosure (Cx9710). We are modifying the print conditions based on which option is selected for New York Entity Type (field 74202), as shown below:
- Cx3587 will print when New York Entity Type = “NY Registered Mortgage Broker”
- Cx5100 will print when New York Entity Type = “NY Licensed Mortgage Banker Acting as a Broker” OR “NY Exempt Organization Acting as a Broker”
- Cx9710 will print when New York Entity Type = “NY Licensed Mortgage Banker” OR “NY Exempt Organization”
Since some clients are not set up to use the New York Entity Type field yet, we are also preserving the current document configurations for all cases where New York Entity Type = Not Selected, which is the default selection until another option has been chosen.
In addition, we have modified other print conditions on these NY documents, since the definitions for banker, broker, and exempt organization all deal with “mortgage loans,” which is defined as:
“…a loan made to one or more individuals primarily for personal, family or household use primarily secured by a first of junior mortgage on residential real property located in this State or by certificates of stock or other evidence of ownership interests in, and proprietary leases from, corporations or partnerships formed for the purpose of cooperative ownership of real estate in this State.” [3 NYCRR 38.1(t)]
The definition of mortgage loan includes the term “residential real property” which is defined as:
“…residential real property shall mean real property located in the State improved by a one-to-four-family owner-occupied dwelling used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more owners, but shall not refer to unimproved real property upon which such dwelling is to be constructed.” [3 NYCRR 38.1(y)]
Per these definitions, we are updating configurations for these three documents to print for primary residences and second homes, but not for investment properties. Also, since the definition of “mortgage loan” is broad and there is no exception for HELOCs, we have added HELOCs to the configuration.
These changes will be in effect on February 23, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.