Rental and mortgage rates on the Jumbo loan have jumped by more than 30 percent over the past six months.
The new rates are based on the latest available data from the New York State Department of Financial Services.
“The increase in the rates comes as the loan program is under scrutiny from the state comptroller’s office for potentially inflated loan amounts,” the AP said.
The latest figures come as the state is considering how to close the $1.6 billion Jumbo program, which was started by former Gov.
Andrew Cuomo to help low-income New Yorkers buy homes.
A spokesman for the comptroller said the state’s comptroller is still evaluating the data and would release a new estimate in the coming weeks.
In New York, the Jumps are the first increase in more than a year and are the second biggest in the state since July 2015.
In December, the state paid a $5,000 interest fee on the first installment of the Jumbotank loan, which helped homeowners pay for a $500,000 home they were told was coming soon.
The state comptroller, who has oversight of the program, said he’s concerned about the amount of interest the state will be required to pay to the banks that make loans under the program.
New York has been trying to close a gap of $1 billion in state-backed mortgage-backed securities with new rules that the bank regulators are proposing to impose on lenders.
The New York Banking Commission on Monday recommended that the state allow banks to buy mortgages in their own name and to issue their own loans.
The regulator said it would allow banks that offer loans under Jumbo to sell their loans to third-party lenders, but it will prohibit banks from making loans to borrowers who don’t meet income guidelines.
In addition, the regulator will require that borrowers have at least one qualifying mortgage that can be sold to a third-parties to pay off the loan.
The commission also will require banks to maintain certain disclosures about the nature of the loan, such as the amount paid by the borrower.