Banking Law § 6-l (High-Cost Home Loans)
N.Y. Banking Law § 6-l
Section 6-l defines "high-cost home loans" by APR thresholds (first-lien APR exceeding 8 points, subordinate-lien 9 points, over comparable Treasury yields) and points-and-fees thresholds, and prohibits predatory terms in such loans, including balloon payments, negative amortization, prepayment penalties (made unenforceable), interest-rate increases after default, and financing points and fees in an amount exceeding 3% of principal. It bars loan flipping (refinancing without tangible net benefit to the borrower), mandates monthly escrow of property taxes and hazard insurance, and provides remedies including rescission, which is available as a defense without time limitation upon a judicial finding of violation.
Who must comply
Other NYS DFS regulations
3 NYCRR Part 38 (Mortgage Disclosure & Advertising)
3 NYCRR Part 38
3 NYCRR Part 79 (Reverse Mortgages)
3 NYCRR Part 79
3 NYCRR Part 82 (Alternative Mortgage Instruments)
3 NYCRR Part 82
Banking Law § 6-m (Subprime Home Loans)
N.Y. Banking Law § 6-m
Banking Law Art. 12-D (Mortgage Bankers & Brokers)
N.Y. Banking Law Article 12-D (§§ 589–599)
RPAPL § 1304 (90-Day Pre-Foreclosure Notice)
N.Y. Real Property Actions and Proceedings Law § 1304
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