Banking Law §6-1
Part 41 - GRBB
Personal Property Law 301
October 13, 2004
Dear [ ]:
As discussed during our October 12, 2004 telephone conference and in your letter of the same date, you inquire as to whether loans brokered by your company on manufactured homes are subject to the provisions of Part 41 of the General Regulations of the Banking Board ("Part 41") and whether such loans must be reported on your company's Volume of Operations Report ("VOOR").
Article 9 of the Personal Property Law ("PPL"), the Motor Vehicle Retail Installment Sales Act, PPL §301, et seq., addresses the financing of the purchase of motor vehicles in the State of New York. PPL §301(1) defines a "Motor vehicle" or "vehicle" to also include a `mobile home" or a "manufactured home."
PPL §301(1) defines a "mobile home" or "manufactured home" to be a, "[s]tructure, transportable in one or more sections, which in the traveling mode, is eight body feet or more in width or forty body feet or more in length, or when erected on site, is three hundred twenty or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to required utilities, and includes the plumbing, heating, air conditioning and electrical systems contained therein."
To the extent that a loan brokered by your company is secured by a "mobile home" or a "manufactured home" as defined by PPL §301(1), then it is not subject to the provisions of Article 12-D of the Banking Law and any regulations promulgated thereto.
Additionally, the loan is not subject to the provisions of Banking Law §6-1 and Part 41 and it does not have to be included on the VOOR.
You also ask that if the loan is not subject to the above-described mortgage lending statutes "and regulations, is there a limitation on the number of points that your company can charge in connection with the loan? PPL §303(1) states that a retail seller may collect a credit service charge at a rate agreed to by the retail seller and buyer. I note that PPL §§302 and 303 set forth the requirements regarding retail installment sales contracts and the computation and imposition of credit service charges. Since the PPL does not provide the Banking Department with any regulatory jurisdiction over contracts subject to its provisions, you should consult with private counsel regarding the requirements of the statute, including the fees that may be charged in connection with the loan.
I trust this is responsive to your inquiry.
Very truly yours,
Alvin A. Narin
First Assistant Counsel