Banking Law § 6-m (Subprime Home Loans)
N.Y. Banking Law § 6-m
Section 6-m defines a "subprime home loan" by reference to an APR threshold above a benchmark rate (the Freddie Mac Primary Mortgage Market Survey rate) — exceeding it by more than 1.75 percentage points for first-lien loans and 3.75 percentage points for subordinate-lien loans — and imposes consumer protections, including a mandatory ability-to-repay underwriting standard (the lender must reasonably and in good faith believe the borrower can repay), required escrow of property taxes and hazard insurance, a prohibition on prepayment penalties, a prohibition on financing credit insurance and debt-cancellation products, and restrictions on lender-discretion acceleration (call) provisions absent material default.
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-l (High-Cost Home Loans)
N.Y. Banking Law § 6-l
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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