N.Y. Private Housing Finance Law § 474: Servicing of loans by banking institutions and loan servicing companies

§ 474. Servicing of loans by banking institutions and loan servicing

companies. 1. The agency is authorized to make provision in the note and

loan agreement or by separate agreement for the performance by one or

more banking institutions of such services as are generally performed by

any such bank itself owning and holding such a loan and as may be

approved by the superintendent of financial services for which services

a bank may make and collect such service charges as the superintendent

shall prescribe or approve.

2. The agency is authorized to make provision in the note and loan

agreement or by separate agreement for the servicing of such loans by a

loan servicing company or other qualified entity, as determined by the

agency, and such services may include, but not be limited to, the

collection of the debt services on such loans and the establishment,

administration, and distribution of an escrow account for the payment of

the owner's real estate taxes, sewer and water rents and fire insurance.