§ 591 — Application for a mortgage banker's license; fees

New York § 591

• Jurisdiction: New York
• Law BNK: Banking
• Art. 12-D: Licensed Mortgage Bankers

Text

§ 591. Application for a mortgage banker's license; fees. 1. The\napplication for a license to be a mortgage banker shall be in writing,\nunder oath, and in the form prescribed by the superintendent.\nNotwithstanding article three of the state technology law or any other\nlaw to the contrary, the superintendent may require that an application\nfor, or renewal of, a license or any other submission or application for\napproval as may be required by this article, be made or executed by\nelectronic means, including through the National Mortgage Licensing\nSystem and Registry or other entities designated by the National\nMortgage Licensing System and Registry if he or she deems it necessary\nto ensure the efficient and effective administration of this article.\nThe application shall contain the name and complete business and\nresidential address or addresses of the applicant. If the applicant is a\npartnership, association, corporation or other form of business\norganization, the application shall contain the names and complete\nbusiness and residential addresses of each member, director and\nprincipal officer thereof. Such application shall also include a\ndescription of the activities of the applicant, in such detail and for\nsuch periods, as the superintendent may require; including:\n (a) An affirmation of financial solvency noting such capitalization\nrequirements as may be required by the superintendent, and access to\nsuch credit as may be required by the superintendent;\n (b) The fingerprints of the applicant, which may be submitted to the\ndivision of criminal justice services and the federal bureau of\ninvestigation for state and national criminal history record checks;\n (c) An affirmation that the applicant, or its members, directors or\nprincipals as may be appropriate, are at least twenty-one years of age;\n (d) Information as to the character, fitness, financial and business\nresponsibility, background and experiences of the applicant.\n 2. An application shall be accompanied by an investigation fee as\nprescribed pursuant to section eighteen-a of this chapter payable to the\nsuperintendent.\n 3. A licensee may apply for authority to open and maintain a branch\noffice by giving the superintendent prior notice of its intention in\nsuch form as shall be prescribed by the superintendent. Unless the\nsuperintendent denies the application within thirty days of publication\nof notice of receipt of a completed application, the licensee shall be\npermitted to open and maintain such branch office. An application to\nopen and maintain a branch office shall be accompanied by an\ninvestigation fee as prescribed pursuant to section eighteen-a of this\nchapter.\n 4. As a condition for the issuance and retention of a mortgage\nbanker's license, and subject to such regulations as the superintendent\nshall prescribe, applicants for a license shall file with the\nsuperintendent a surety bond in form satisfactory to him or her issued\nby a bonding company or insurance company authorized to do business in\nthis state. The principal amount of such bond shall be in an amount and\nform prescribed by regulations of the superintendent. Such regulations\nshall provide for a varying bond amount based upon a licensee's volume\nof business and any other relevant factors as determined by the\nsuperintendent, but in no case shall such bond be less than fifty\nthousand dollars nor more than five hundred thousand dollars; provided,\nhowever, that if the superintendent determines, in his or her sole\ndiscretion, that a licensee has engaged in a pattern of conduct\nresulting in bona fide consumer complaints of misconduct, the\nsuperintendent may require such licensee to post a surety bond, or keep\non deposit as provided in this subdivision, twice the amount of such\nbond or deposit as is required consistent with such regulations. In lieu\nof such bond, an applicant may keep on deposit with such banks, savings\nbanks, savings and loan associations, or trust companies or private\nbankers or national banks or federal savings banks or federal savings\nand loan associations in the state of New York as such applicant may\ndesignate and the superintendent may approve, interest-bearing stocks\nand bonds, notes, debentures, or other obligations of the United States\nor any agency or instrumentality thereof, or guaranteed by the United\nStates, or of this state, or of a city, county, town, village, school\ndistrict, or instrumentality of this state or guaranteed by this state,\nor dollar deposits, or such other assets or letters of credit as the\nsuperintendent shall by rule or regulation permit. In the event of the\ninsolvency, liquidation or bankruptcy of such licensee, or the surrender\nor revocation of such mortgage banker's license, or where the\nsuperintendent takes possession of such licensee, the proceeds of each\nbond or deposit shall constitute a trust fund to be used exclusively to\nreimburse consumer fees or other charges determined by the\nsuperintendent to be improperly charged or collected and to pay past due\ndepartment of financial services examination costs and assessments\ncharged to the licensee, unpaid penalties, or other obligations of the\nlicensee. The superintendent is authorized to promulgate such\nregulations as are necessary and desirable to define and implement the\nprovisions of this subdivision. Persons and entities licensed prior to\nthe effective date of any regulations of the superintendent prescribing\nthe bonding requirement authorized by this subdivision shall file such\nbond or establish such deposit within six months of the effective date\nof such regulations.\n