New York State Department of Financial Services · NY
Notice to Persons First Required to Register as Mortgage Loan Servicers by August 24, 2011 Emergency Adoption of Part 418 of the Superintendent’s Regulations
September 14, 2011
Summary
The New York State Department of Financial Services enacted Part 418, requiring all entities that hold mortgage servicing rights (MSRs) to register as mortgage loan servicers, even if they outsource actual servicing duties to third parties. Entities previously exempt were granted a transitional grace period to submit registration applications by October 15, 2011, to account for administrative notification delays.
Industry Letter
Notice to Persons First Required to Register as Mortgage Loan Servicers by August 24, 2011 Emergency Adoption of Part 418 of the Superintendent’s Regulations
September 14, 2011- Updated October 14, 2011
On August 24, 2011, the Department adopted as new emergency regulations Part 418 of the Superintendent’s Rules and new Supervisory Procedures MB 109 and 110 (collectively, “New Part 418”), which govern registration of Mortgage Loan Servicers (“Servicers”).
New Part 418 reflects a number of changes that resulted from public comments on the original version of Part 418. One of those changes requires the registration of holders of mortgage servicing rights (”MSRs”), even where they have sub-contracted servicing responsibilities to a third-party servicer. A link to New Part 418 and its explanatory materials may be found below.
Part 418.14 contains a transitional rule that gives holders of MSRs who previously were not required to be registered a 30-day window in which to submit applications for registration.
Under New York law, an emergency rule is effective when filed with the Department of State for publication in the State Register. There is normally a 2-3 week delay between the filing with the Department of State and publication in the State Register. Consequently, the Department normally gives notice of emergency adoptions by publishing them on our website. Unfortunately, because of unexpected delays, the notice of the revised rule was not published on our website until September 2, 2011. Publication in the State Register took place on September 14, 2011.
Because of the notification delay, the Department will consider an application filed by a holder of MSRs who previously was not required to be registered to be timely filed if such application is received by the close of business on October 15, 2011.
Please be advised that the Department will apply the same approach to entities seeking an exemption from registration if a filing is received by October 15, 2011.
Should you have any questions, please do not hesitate to contact the undersigned at (212) 709-5540.
Rholda Ricketts
Deputy Superintendent
Part 418
Explanatory All Institutions Letter
Common questions
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- The New York State Department of Financial Services enacted Part 418, requiring all entities that hold mortgage servicing rights (MSRs) to register as…
- Which agency issued this update?
- This update was issued by New York State Department of Financial Services.
- When was it published?
- It was published on September 14, 2011.
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