§ 953. Duties and responsibilities of mortgage investing institutions.
1. Every mortgage investing institution shall make all payments for
taxes for which they hold real property tax escrow accounts, in a timely
manner.

2. Every mortgage investing institution subject to the provisions of
section fourteen-b of the banking law shall pay at least the minimum
rate of interest on each real property tax escrow account as prescribed
therein except that any such mortgage investing institution shall not be
required to pay such minimum rate of interest on real property tax
escrow accounts established for non-mortgagors.

3. Every mortgage investing institution shall deposit funds from a
real property tax escrow account of a mortgagor in a banking institution
whose deposits are insured by a federal agency or a licensed branch of a
foreign banking corporation whose deposits are insured by a federal
agency. Notwithstanding the foregoing provisions of this subdivision,
the superintendent of financial services shall have the power to exempt
from the requirements of this subdivision any banking organization which
does not receive deposits or share accounts from the general public.

4. No mortgage investing institution shall impose a service charge or
any other fee in connection with the maintenance of a real property tax
escrow account nor, as provided in section two hundred fifty-four-d of
the real property law, shall a fee be imposed for direct payment of real
property taxes.

5. A mortgage investing institution may debit a mortgagor's real
property tax escrow account for payments of taxes only if actual payment
for such taxes is made within twenty-one days after such debit.

6. Every mortgage investing institution shall, at least annually and
without charge to the mortgagor, provide to the mortgagor an analysis of
the real property tax escrow account of the mortgagor. Such analysis
shall contain, for the twelve month period covered by the analysis, at
least: (i) interest earned; (ii) the amount of taxes paid from the real
property tax escrow account; and (iii) the account balance as of the
beginning of the period the analysis covers and the ending account
balance as of a specified date within forty-five days preceding the date
of the analysis. In addition, the mortgage investing institution shall,
upon request by the mortgagor, provide to the mortgagor without charge
the date or dates of the payment of taxes from such real property tax
escrow account. The information required by this subdivision may be
provided in notices otherwise required by federal or state law,
regulation or rule to be sent on at least an annual basis to the
mortgagor. The analysis shall also contain the following information in
at least eight point bold face type in substantially the following
language:

(a) that the mortgage investing institution is obligated to make all
payments for taxes for which the real property tax escrow account is
maintained and that if any such payments are not timely, the mortgage
investing institution is responsible for making such payments including
any penalties and interest;

(b) that the mortgagor is obligated to pay one-twelfth of the taxes
each month to the mortgage investing institution which is deposited into
the real property tax escrow account, unless there is a deficiency or
surplus in the account, in which case a greater or lesser amount may be
required;

(c) if the mortgage investing institution is subject to the provisions
of subdivision three of this section, that the mortgage investing
institution must deposit the escrow payments made by the mortgagor in a
banking institution or a licensed branch of a foreign banking
corporation whose deposits are insured by a federal agency; and

(d) that the mortgage investing institution cannot impose any fees
relating to the maintenance of the real property tax escrow account.

6-a. Every mortgage investing institution shall upon the request of a
borrower who has been notified of the granting of an exemption pursuant
to section four hundred twenty-five of this chapter to review the
expected real property tax liability which is assessable against a
property which is a one, two or three family dwelling and which is the
primary residence of the borrower. In any case, where as the result of
the granting of such exemption an overage in the escrow shall exist, the
owner shall be entitled to a proportionate reduction in the amount such
mortgage investing institution is authorized to collect and deposit on a
monthly basis into an escrow account to insure the payment of real
property taxes. This review shall be considered maintenance of a real
property tax escrow account.

7. Every mortgage investing institution shall provide written notice
to a mortgagor no later than ten business days after the transfer to
another mortgage investing institution of the right to receive all
payments from the mortgagor, including payments made into the real
property tax escrow account, which notice shall include the name,
address and telephone number of the mortgage investing institution to
which such rights have been transferred. Upon request by the mortgagor,
the mortgage investing institution shall advise the mortgagor of the
amount of money in such account as of the date of such transfer. Every
mortgage investing institution shall remain fully liable to pay any
taxes which are due and payable prior to the date of such transfer, and
the mortgage investing institution to which such rights have been
transferred shall be liable to pay any taxes which are due and payable
after the date of such transfer, unless otherwise agreed among the
parties to the transfer.

8. Every mortgage investing institution shall, no later than
twenty-one days after the final payment of the mortgage loan, where the
mortgagor retains ownership of the property, send to the mortgagor a
written statement that shall include, but not be limited to the
following information: (a) that the real property tax escrow account has
been or will be terminated (whichever is applicable); and (b) that
unless the mortgagor establishes a new real property tax escrow account
with a mortgage investing institution, the mortgagor will be obliged to
pay to the appropriate collecting officers taxes becoming due
thereafter. The written notice shall also set forth the effective date
of the termination and shall provide the name, address and telephone
number of each collecting officer or office and advise the mortgagor to
contact such officer or office for tax billing information.

8-a. Any mortgage investing institution which does not comply with the
provisions of subdivision eight of this section shall be financially
responsible for interest or penalties charged a former mortgagor of such
institution by a taxing municipality, county, and/or delinquent tax
enforcement agency for non-payment or late payment of real property
taxes in the first taxable year following satisfaction of the mortgage
held by such institution.

9. Every mortgage investing institution shall, no later than the
twenty-fifth day of each month, report to the county director of real
property tax services, or the commissioner of finance for property
located in the city of New York, on a form prescribed or approved by the
commissioner, the creation of a real property tax escrow account, or any
change of a tax billing address required by a transfer or termination of
a real property tax escrow account pursuant to subdivisions seven and
eight of this section, occurring during the prior month with respect to
real property located in such county or city, as the case may be. The
county director or the commissioner of finance of the city of New York
shall thereupon furnish a copy of such report to the person or persons
having custody and control of the appropriate assessment roll, tax roll
or data file, as defined in section fifteen hundred eighty-one of this
chapter, and such person or persons are hereby authorized and directed
upon receipt of such report to enter the appropriate tax billing address
on such assessment roll, tax roll or data file.