The New York Department of Financial Services (“NYDFS”) has issued final mortgage servicer business conduct rules found in Part 419 of the Superintendent’s Regulations. Our January 24 client advisory provides a full analysis of the changes, which include:
- New provisions governing affiliated business arrangements;
- Expanded restrictions on servicing fees (including property valuation fees);
- A broader servicer duty of fair dealing;
- Expanded protections available to delinquent borrowers and borrowers seeking loss mitigation assistance; and
- Detailed third party vendor management requirements.
Although the rules took effect on December 18, the NYDFS included a 90-day transition period for servicers who were compliant with the previous version of the rules as of the effective date.