N.Y. Comp. Codes R. & Regs. tit. 3, § 41.9
(a) within 30 days of the loan closing and prior to the institution of any action under section 6-l of the Banking Law, the borrower is notified of the compliance failure, appropriate restitution is made, and whatever adjustments are necessary are made to the loan to either, at the choice of the borrower:
(b) the compliance failure resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid such errors and, within 60 days after the discovery of the compliance failure and prior to the institution of any action under section 6-1 of the Banking Law or the receipt of written notice of the compliance failure, the borrower is notified of the compliance failure, appropriate restitution is made, and whatever adjustments are necessary are made to the loan to either, at the choice of the borrower:
A lender of a high cost home loan that, when acting in good faith, fails to comply with the provisions of this section, will not be deemed to have violated this Part and section 6-l of the Banking Law if the lender establishes that either: