N.Y. Comp. Codes R. & Regs. tit. 8 § 2213.22

Current through Register Vol. 46, No. 53, December 31, 2024

Section 2213.22 - Default claims

(a) A borrower shall be in default on a program loan on the 181st day of delinquency on the program loan.

(b) The holder, or an entity servicing program loans, shall submit a claim to the corporation for reimbursement within 60 days of default.

(c) The holder, or an entity servicing program loans, shall submit a record of all payment and collection activities on the program loan along with all other required documents, as directed by the corporation or as otherwise noted on the program claim form.

(d) All claims deemed acceptable by the corporation based on the program's default avoidance and claim manual shall be reimbursed at 100 percent of the principal, and interest through the claim payment date based on the availability of funds in the applicable default reserve fund.

(e) If a claim is returned to the holder, or an entity servicing program loans, for any reason, the holder shall be allowed one 30 day resubmission period.

(f) Claims not acceptable after the 30 day resubmission period for the error(s) identified shall lose their eligibility for payment by the corporation.

(g) Holders shall receive payment of only the outstanding program loan principal and interest up to claim payment date on a resubmitted claim.

(h) Upon default, the corporation will purchase the loan from the holder and will advise the borrower that his or her loan has been, or is subject to being, purchased and is now in default. Notwithstanding, the borrower is in default on a program loan on the 181st day of delinquency on the program loan. The borrower shall be deemed ineligible for any program loan benefits, except as provided in section 2213.2(f) of this Part.

N.Y. Comp. Codes R. & Regs. Tit. 8 § 2213.22