Bulletin: NY000230

Date:
September 03, 2004
To:
All Issuing Offices in New York
RE:
Mortgage Tax Changes and IT 2663 Change

All of the following are effective on November 18, 2004.

1. IT-2663

Co op sales are now included within the ambit of the IT-2663 provision.  Within 15 days of the sale, as evidenced by the date of transfer or issuance of shares, the tax is due, along with the IT-2663 form.  (Part H, Chapter 60, laws of 2004)

2. Spreader Agreements and Additional Mortgages

Applies to any spreader agreement or additional mortgage recorded inNew York City only on or after 11/18/2004.

Mortgage tax is due on the recording of a spreader agreement or additional mortgage on property not originally covered with a primary mortgage.

The exception is when the property in New York City is owned by the same party as the property with the mortgage to be spread.  (Part Q, Chapter 60, laws of 2004)

3. Wrap Around Mortgages

Applies to mortgages recorded on or after 11/18/2004.

A wrap around mortgage in New York City, where the total indebtedness remains the same as the face of the mortgage to be wrapped,  is no longer exempt from mortgage tax.

The law defines the word “mortgage” to include an agreement to wrap. (Part Q, Chapter 60, laws of 2004)

A wrap around mortgage is a mortgage in the amount equal to the difference between the total amount secured and the principal of the existing mortgage.  The new mortgage is “wrapped” around the existing mortgage, and the payment to the mortgagee is the total of the two mortgages.  The agreement/mortgage obligates the 2nd mortgagee to make the first mortgage payments.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None