1. CLOSING AND DELIVERING SONYMA LOANS

2. Topics Covered Loan Delivery Closing Documents Common Errors
Recorded Instruments & Final Title Policy
Penalties
NRP Program Document

3. Loan Delivery
Lenders have thirty-five (35) calendar days from the closing date to deliver the closed loan package.
Delivery to SONYMA for purchase review and approval should be no later than three (3) business days prior to the thirty-fifth (35) day after the Title Closing date to avoid a late delivery penalty fee.

4. Interest & First Payment Date
Lender must collect interest from the date of the loan closing through the end of the month.
If the loan closes on the first calendar day of the month, no closing interest should be collected.
For loans closed on the first calendar day of the month, the first principal and interest payment will be due on the first day of the succeeding month. (i.e. Closed March 1st. First Payment Due: April 1st.)
For loans closed on the second day through the last day of the month, the first principal and interest payment will be due on the first day of the second month following the loan closing. (i.e. Closing Date: March 2nd. First Payment Due: May 1st.)

5. Sonyma documents & Common errors

6. Mortgage Note FANNIE-MAE/FREDDIE-MAC Form 3233, 1/01
All Mortgagors and Guarantors, if applicable, are required to execute this instrument.
The original completed document and a photocopy are required to be submitted.
Items 1 thru 3B needs to be completed accurately.
The Endorsement language to SONYMA needs to be affixed to the document and should read as follows :
“Pay to the order of the State of New York Mortgage Agency without recourse this date (the Closing Date)”.
Endorsement must reference the Lender’s Name
An authorized signatory of the Lender needs to execute and specify his or her title.

7. Mortgage Note: Common Errors
The initial payment and maturity date are incorrectly stated.
The interest rate is incorrect. The interest rate must be in accordance with terms committed and approved by SONYMA. Lenders are advised to confirm the interest rate prior to title closing via SONYMA’s Lender on Line (LOL) system.
Endorsement language to SONYMA is omitted or incomplete.
Correction and/or changes made must be stricken and initialed and dated by all Mortgagors.

8. MORTGAGE: FANNIE MAE/FREDDIE MAC FORM 3033, 01-01
All Mortgagors in the transaction are required to sign.
Mortgagors must sign two (2) original documents for submission to:
County Clerk’s office for recording; and
SONYMA
All relevant data required must be accurately reflected, inclusive of the following :
All applicable riders (inclusive of the SONYMA Rider to the Mortgage (Form 230) are required, signed by all Mortgagors and made a part of the mortgage instrument.
If Lender is a MERS Member, the MERS Language must be incorporated within the Mortgage instrument. If so, please follow instructions on Page 5, item b.1 thru 5 on the Submission of Post-Closing Loan Files Training Module January 2012.

9. Mortgage: Common Errors
Maturity date is incorrect or omitted.
Legal description (Schedule A) is incorrect or omitted.
The SONYMA Rider to the Mortgage (Form 230) is omitted.
Notary section and its commission is either incomplete or notary commission expired.
Unrecorded document is unacceptable if stamped “Duplicate Original, Copy or Certified True Copy”

10. DPAL Enforcement Note & Mortgage SONYMA Form D1
If applicable, document is required to be executed by all Mortgagors to secure a second lien on the property when the Mortgagor obtains a Down Payment Assistance Loan (DPAL).
Mortgagor(s) must sign two (2) original documents for submission to:
County Clerk’s office for recording; and
SONYMA
Lender is required to submit a complete and accurate document, ensuring all data (Items 1 thru 4) required has been provided.
Item #1 must correctly reflect the approved amount of the Recapture (DPAL amount).
The document, upon being recorded, MUST be in 2nd lien position with all other subsidies and grants subordinate to it.

11. DPAL Enforcement Note and Mortgage: Common Errors
Legal description (Schedule A) of the property is omitted.
Lender’s name is omitted or Lender references “State of New York Mortgage Agency” as the Lender within item #4.
DPAL (Recapture) amount references the combined total of the original loan (1st lien) and DPAL (2nd lien) amounts instead of the actual DPAL (2nd lien) amount.
Riders are attached to and made a part of instrument.

12. Recapture Notification and Mortgagor’s Affidavit SONYMA Form 211
Original signed and completed document and photocopy is required.
Mortgagors reaffirm and complete the following:
Part IV: Income Eligibility Section entitled “At Loan Closing”
Income specified must be within SONYMA’s Income Limits at the time of the loan’s reservation date.
If the income stated exceeds SONYMA’s Income Limits, the Mortgagor(s) will not qualify for the mortgage loan and Lender cannot close the loan.
Document must be dated as of the Closing Date and executed by all Mortgagor’s and if applicable, Guarantor(s).
A Power of Attorney cannot execute this Affidavit on behalf of the Mortgagor’s.

13. Recapture Notification & Mortgagor’s Affidavit: Common Errors
Form submitted at closing contains different information than the version approved by SONYMA at application.
Income Eligibility Section “At Loan Closing” is incomplete.
Reaffirmation "At Loan closing” section is not completed.
Photocopy of the document is submitted.

14. SONYMA Neighborhood Revitalization Program
New Program Document

15. SONYMA Neighborhood Revitalization Fund and Down Payment Assistance
SONYMA Neighborhood Revitalization Fund and Down Payment Assistance Loan Enforcement Note and Mortgage (SONYMA Form #N1/7-16)
If applicable, document is required to be executed by all Mortgagors to secure a second lien on the property when the Mortgagor obtains a Neighborhood Revitalization Program Loan with a Down Payment Assistance Loan (DPAL).
Mortgagor(s) must sign two (2) original documents for submission to:
County Clerk’s office for recording; and
SONYMA
Lender is required to submit a complete document, ensuring that the data entered is correct as followed:
Paragraph 1:
Neighborhood Revitalization Program Loan (“NRP”) must correctly reflect the NRP amount.
Down Payment Assistance Loan (DPAL) must correctly reflect the DPAL amount.
Item# 1: The Recapture Obligation is the combined total of both the “NRP” and “DPAL” amounts stated within Paragraph 1
Item # 2 : Property Address to be completely referenced
Item # 4 : Lender’s name to be reflected and not the State of New York Mortgage Agency’ s.

16. SONYMA Neighborhood Revitalization Fund and Down Payment Assistance
Loan Enforcement Note and Mortgage (SONYMA Form #N1/7-16)
Legal description (Schedule A) of the property must be attached to made a part of the instrument.
No additional Riders are required to be attached or made a part of the instrument.
The document, upon being recorded, MUST be in 2nd lien position with all other subsidies and grants subordinate to it.

17. Assignment of Mortgage (NRP and DPAL) SONYMA Form 202
If applicable, Lender must sign two (2) original documents for submission to:
County Clerk’s office for recording and;
SONYMA#
The amount reflected must be combined total of the NRP and DPAL amounts.
Document must be completed, dated , signed by an authorized officer of the lender, witnessed and dated as of the closing date.
Assignment of Mortgage should not predate the title closing date.
Notary section must be completed either on or after the closing date.

18. Assignment of Mortgage (NRP & DPAL): Common Errors
Mortgagor’s name, closing date is omitted.
Property address is incorrectly stated.
Loan amount is incorrectly stated. Does not reflect the combined total of the loans.
Lender’s officer executed and dated the document prior to the closing date of the loan.
Notary Section predates the title closing, the notary is incomplete or commission has expired.
Document is stamped Duplicate Original, Copy or Certified True Copy sent for recordation.

19. Submission of Recorded Instruments & Final Title Policies
Within 180 days (6 months) of the Closing Date, Lenders are required to submit to SONYMA the original and photocopy of the following documents.
ALL recorded instruments:
Mortgage (Fannie Mae/Freddie Mac Uniform Instrument Form /01 ‐ New York ‐ Single Family);
Assignment of Mortgage (SONYMA Form 202);
DPAL Enforcement Note and Mortgage (SONYMA Form D1), if applicable;
Assignment of DPAL Enforcement Note and Mortgage (SONYMA Form 202), if applicable;
Consolidation, Extension, and Modification Agreement [Fannie Mae/Freddie Mac Single Family 3172‐1/01 (rev. 5/01)], if applicable.
 Final Title Policy (ALTA Loan Policy 2006)

20. Submission of Recorded Instruments & Final Title Policies
All documents must have the SONYMA loan number indicated on the document.
Documents accepted in lieu of originals are:
County Clerk Certified copies of the recorded instruments;
A stamped duplicate original of the Final Title Policy (with an original signature of an authorized agent)
SONYMA Final Document Transmittal (SONYMA Form 245)
SONYMA recommends that Lenders submit outstanding documents utilizing the SONYMA Final Document Transmittal (Form 245) listing the information requested on the form and indicating the document(s) submitted.
A designee of the SONYMA Post-Closed Documents Unit will sign the SONYMA Final Document Transmittal (Form 245) acknowledging receipt of the document and return to Lender as evidence of receipt.

21. Penalties Assessed For Late Delivery Of Recorded Instruments & Final Title Policies
SONYMA will assess penalties to Lenders who do not deliver all final recorded instruments and title policies within one and one‐half (1 1/2) years from the Closing Date.
Any document overdue for a period of more than one and one‐half (1 ½) years from the Closing Date will incur a penalty fee of $25 per month, per outstanding document.
For documents overdue for more than two (2) years, the fee will increase to $50, per document, per month.
If the overdue period reaches three (3) years, SONYMA, at its discretion, will require the Lender or the succeeding Lender to repurchase the loan.
The penalty fees will be netted out of the Lender’s current loan funding on a quarterly basis.
If no loan funding takes place for a period of six (6) months, Lender will be billed the fees.
Lenders who are billed, but do not pay the penalty charges, will not be permitted to register new loans until the bill has been paid in full.
SONYMA’s acceptance of the penalty fee payment does not waive the Lender’s obligation from securing and sending to SONYMA the outstanding documentation, and as a result, additional penalties may be incurred.

22. Schedule of Penalties

23. QUESTIONS?

24. Thank you!