New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter III - SUPERINTENDENT'S REGULATIONS
Subchapter B - NON-BANKING ORGANIZATIONS
Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES
Section 419.11 - Oversight of third-party providers
Current through Register Vol. 46, No. 12, March 20, 2024
A servicer shall adopt and maintain policies and procedures to oversee and manage third-party providers, including:
(a) A servicer shall perform appropriate due diligence of third-party providers' qualifications, expertise, capacity, reputation, complaints, information systems, document custody practices, quality assurance plans, financial viability, and compliance with licensing requirements and applicable rules and regulations.
(b) A servicer shall require third-party providers to comply with a servicer's applicable policies and procedures and applicable New York and Federal laws and rules.
(c) A servicer utilizing third-party providers shall remain responsible for all actions taken by the third-party providers.
(d) A servicer shall clearly and conspicuously disclose to borrowers if it utilizes a third-party provider and shall clearly and conspicuously disclose to borrowers that the servicer remains responsible for all actions taken by third-party providers.
(e) A servicer shall conduct periodic reviews, not less than annually, of each third-party provider the servicer retains. The review shall be conducted by servicer employees who are separate and independent of employees who prepare foreclosure or bankruptcy affidavits, sworn documents, declarations, or other foreclosure or bankruptcy documents. The review shall include:
(f) A servicer shall ensure that all third-party providers have appropriate and reliable contact information for servicer employees who possess information relevant to the services provided by the third-party provider. A servicer shall ensure that foreclosure and bankruptcy counsel have an appropriate servicer contact to assist in legal proceedings and to facilitate loss mitigation questions on behalf of a borrower.
(g) A servicer shall take appropriate remedial steps if a servicer identifies any problems through the review required by subdivision (e) of this section or otherwise, including terminating its relationship with a third-party provider.
(h) A servicer shall develop and implement policies and procedures detailing how the servicer will oversee and communicate with counsel and those with the authority to fully dispose of the case concerning foreclosure proceedings. Such policies shall, at a minimum: