§ 6-l. High-cost home loans. 1. Definitions. The following definitions\napply for the purposes of this section:\n (a) "Affiliate" means any company that controls, is controlled by, or\nis under common control with another company, as set forth in the Bank\nHolding Company Act of 1956 (12 U.S.C. § 1841 et seq.), as amended from\ntime to time.\n (b) "Annual percentage rate" means the annual percentage rate for the\nloan calculated according to the provisions of the Federal\nTruth-in-Lending Act (15 U.S.C. § 1601, et seq.), and the regulations\npromulgated thereunder by the federal reserve board (as said act and\nregulations are amended from time to time).\n (c) "Bona fide loan discount points" means loan discount points\nknowingly paid by the borrower funded through any source, for the\npurpose of reducing, and which in fact result in a bona fide reduction\nof, the interest rate or time-price differential applicable to the loan,\nprovided that the amount of the interest rate reduction purchased by the\ndiscount points is reasonably consistent with established industry norms\nand practices for secondary mortgage market transactions. For purposes\nof this section, it shall be presumed that a point is a bona fide loan\ndiscount point if it reduces the interest rate by a minimum of\ntwenty-five basis points provided all other terms of the loan remain the\nsame.\n (d) A "High-cost home loan" means a home loan in which the terms of\nthe loan exceed one or more of the thresholds as defined in paragraph\n(g) of this subdivision.\n (e) "Home loan" means a loan, including an open-end credit plan, other\nthan a reverse mortgage transaction or a loan made or fully or partially\nguaranteed by the state of New York mortgage agency, in which:\n (i) The principal amount of the loan at origination does not exceed\nthe conforming loan size limit (including any applicable special limit\nfor jumbo mortgages) for a comparable dwelling as established from time\nto time by the federal national mortgage association;\n (ii) The borrower is a natural person;\n (iii) The debt is incurred by the borrower primarily for personal,\nfamily, or household purposes;\n (iv) The loan is secured by a mortgage or deed of trust on real estate\nimproved by a one to four family dwelling, or by a condominium unit, or\nby any certificate of stock or other evidence of ownership in, and a\nproprietary lease from, a corporation, partnership or other entity\nformed for the purpose of cooperative ownership of real estate, in\neither case used or occupied or intended to be used or occupied, wholly\nor partly, as the home or residence of one or more persons and which is\nor will be occupied by the borrower as the borrower's principal\ndwelling; and\n (v) The property is located in this state.\n (f) "Points and fees" means:\n (i) All items listed in 15 U.S.C. § 1605(a)(1) through (4), except\ninterest or the time-price differential;\n (ii) All charges for items listed under § 226.4(c)(7) of title 12 of\nthe code of federal regulations, as amended from time to time, but only\nif the lender receives direct or indirect compensation in connection\nwith the charge or the charge is paid to an affiliate of the lender;\notherwise, the charges are not included within the meaning of the phrase\n"points and fees";\n (iii) All compensation paid directly or indirectly to a mortgage\nbroker, including a broker that originates a loan in its own name in a\ntable-funded transaction, not otherwise included in subparagraphs (i)\nand (ii) of this paragraph;\n (iv) The cost of all premiums financed by the lender, directly or\nindirectly, for any credit life, credit disability, credit unemployment,\nor credit property insurance, or any other life or health insurance, or\nany payments financed by the lender directly or indirectly for any debt\ncancellation or suspension agreement or contract, except that insurance\npremiums calculated and paid on a monthly basis shall not be considered\n
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