The State of New York Mortgage Agency ("SONYMA") was created in 1970, pursuant to Chapter 612 of the Laws of New York,1970, being Title 17 of Article 8 of the Public Authorities Law, in order to alleviate shortages of funds available in the private banking system for residential mortgages within New York State. The State of New York Mortgage Agency's (SONYMA) programs are geared to first time home buyers of owner-occupied, one-to-four unit residences that are required to meet eligibility criteria established by the Agency, which criteria are required by applicable Federal law.
The Agency's Mortgage Insurance Fund Division (MIF) provides primary mortgage insurance when the property which is the security for the loan:
(a) is in an area suffering from disinvestment;
(b) is located within a designated economic development zone;
(c) will result in the production of affordable housing;
(d) will be financed by a public lender and meets that lender's criteria; or
(e) will provide a retail or community service facility that would not otherwise be provided.
In addition, in 1989, the MIF was authorized to write pool insurance on pools of:
(a) single family loans financed by SONYMA's Single Family Division;
(b) loans made by certain domestic not-for-profit corporations; or
(c) loans made by a financial institution to a cooperative housing corporation where refinancing is not otherwise available and will facilitate or accommodate affordable home ownership opportunities.
In addition, in December of 2004, the MIF was authorized to enter into agreements to provide credit support for bonds and ancillary bond facilities issued by the Convention Center Development Corporation, a subsidiary of the New York State Urban Development Corporation. The yearly amount of credit support which can be provided by the MIF is limited by statute.
Membership consists of nine directors as follows:
The Comptroller or a director appointed by the Comptroller who will serve until a successor is appointed, the Director of the Budget, the Commissioner of Housing and Community Renewal, one director appointed by the Temporary President of the Senate, one director appointed by the Speaker of the Assembly and four directors appointed by the Governor with the advice and consent of the Senate. From the four directors appointed by him, the Governor designates the chairperson of the Agency. The directors appointed by the Temporary President of the Senate and the Speaker of the Assembly serve at the pleasure of the Temporary President of the Senate and the Speaker of the Assembly respectively.