According to the new rules, mortgagees may not charge or collect registration fees from mortgagors. If a mortgagee has charged a registration fee to a mortgagor’s account but has not collected it, the mortgagee is instructed to remove and reverse it. Every mortgagee must keep a log of all mortgagors that were either charged, or paid any registration fee to any such mortgagees at any time, for inspection during the NYDFS’s next visit.    

Linda Lacewell, the Superintendent of Financial Services, said: “Imposing these fees on consumers is not only impermissible under Part 419 of New York regulations, but is also particularly troubling for consumers who are already grappling with the financial hardship arising from the pandemic. putting a stop to this practice to ensure that mortgage lenders and servicers do not pass the burden of these fees on to consumers.”