Banking Interpretations

NYSBL 6-L
Gen. Reg. Part 41

Alan Weinberg/legal/NYSBD

To [---]

07/09/2007

Subject: Fw: NY Part 41 clarification concerning seller paid points and fees

This is in reply to inquiry of 6/21/07 below.
 
Where a home dealer pays a lender a fee to make available mortgage funds at a specified rate of interest to the home dealer's buyers, the fee paid to the lender by the dealer/seller would be considered a fee that is to be included in New York points and fees calculation under Part 41.

As previously discussed and as stated in earlier interpretations, the general rule in New York is that points and fees paid by a seller, lender or other third party are included in the New York points and fees calculation.

I trust that this clarifies the matter to your satisfaction.

Alan M. Weinberg
Assistant Counsel
[---]

To <[email protected]>

Subject Re: Fw: NY Part41 clarification concerning seller paid points and fees

Dear Mr. Weinberg,
 
Thank you for your written response to my question.

I have an additional question that has come up since we last spoke: if a lender were to offer a forward commitment to a modular home dealer, for example, wherein the modular home dealer paid the lender a fee to set aside or reserve funds at a certain rate of interest for a specified period of time (i.e. a forward commitment) to be made available to the modular home dealer's buyers for mortgage funds, is the fee paid to the lender by the modular dealer (who would be the seller in the transaction with the borrower) considered a fee that is to be included in New York points and fees calculation?

Thank you,