N.Y. Public Authorities Law § 2405-e: Purchase of employer assisted forward commitment mortgages

§ 2405-e. Purchase of employer assisted forward commitment mortgages.

(1) In accordance with the authority set forth in section twenty-four

hundred five-b of this title, the agency may purchase employer assisted

forward commitment mortgages from banks at such prices and upon such

terms and conditions as it shall determine. In conducting its program of

purchasing employer assisted forward commitment mortgages, the agency

shall be governed by the provisions of section twenty-four hundred

five-b of this title. The board of directors of the agency shall

establish from time to time maximum income limits of persons eligible to

receive such mortgages, which income limits shall not exceed the latest

maximum income limits permitted under the Internal Revenue Code of 1986,

as amended, for mortgages financed by mortgage revenue bonds. An

employer may develop additional qualifications for eligible employees

beyond those qualifications provided for in this section, provided that

such qualifications are non-discriminatory and are pre-approved by the

agency; the employer, however, shall remain solely responsible for

determining and insuring the legality of such qualifications and may not

rely on any agency reviews, approvals, legal opinions or statements.

(2) To participate in an employer assisted forward commitment mortgage

program, an employer must be a corporation, partnership, or sole

proprietorship which maintains an office in the state and must satisfy

the requirements set forth in guidelines established by the agency.

(3) For any employer assisted forward commitment mortgage, the maximum

loan-to-value ratio shall be established by the agency, provided that

such loan shall not exceed one hundred percent of the appraised value of

the mortgaged premises. Reasonable closing costs for the loan may be

amortized over the life of the loan, provided that the final loan amount

does not exceed one hundred percent of the appraised value of the

mortgaged premises.

(4) The agency shall require any employer participating in the

employer assisted forward commitment mortgage program to guarantee to

pay up to twenty percent of the total outstanding mortgage indebtedness

(as determined by the agency) for each employee who obtains a mortgage

loan under the provisions of this section and who defaults on such

mortgage loan during the first seven years of such loan, regardless of

whether such borrower is an employee of such employer at the time of the

default.