§ 591-A — Application to register as a mortgage broker; fees

§ 591-a. Application to register as a mortgage broker; fees. 1. An\napplication to become registered as a mortgage broker shall be in\nwriting, under oath, in such form as shall be prescribed by the\nsuperintendent, and shall be accompanied by the fingerprints of the\napplicant. Notwithstanding article three of the state technology law or\nany other law to the contrary, the superintendent may require that an\napplication for, or renewal of, a license or any other submission or\napplication for approval as may be required by this article, be made or\nexecuted by electronic means, including through the National Mortgage\nLicensing System and Registry or other entities designated by the\nNational Mortgage Licensing System and Registry if he or she deems it\nnecessary to ensure the efficient and effective administration of this\narticle. Such fingerprints shall be submitted to the division of\ncriminal justice services for a state criminal history record check, as\ndefined in subdivision one of section three thousand thirty-five of the\neducation law, and may be submitted to the federal bureau of\ninvestigation for a national criminal history record check. Such\napplication shall contain the name and complete business and residential\naddress or addresses of the applicant, or if the applicant is a\npartnership, association, corporation or other form of business\norganization, the names and complete business and residential addresses\nof each member, director and principal officer thereof. Such application\nshall also include an affirmation of financial solvency noting such\ncapitalization requirements as may be required by the superintendent,\nand such descriptions of the business activities, financial\nresponsibility, educational background and general character and fitness\nof the applicant as may be required by the superintendent. Such\napplication shall be accompanied by an investigation fee payable to the\nsuperintendent as prescribed pursuant to section eighteen-a of this\nchapter.\n 2. A registrant 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 registrant 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 3. As a condition for the issuance and retention of a mortgage\nbroker's registration, and subject to such regulations as the\nsuperintendent shall prescribe, applicants for a registration shall file\nwith the superintendent a surety bond or make a deposit, as described in\nsubdivision four of section five hundred ninety-one of this article, in\nan amount and form prescribed by regulations of the superintendent. Such\nregulations shall provide for a varying bond amount based upon a\nregistrant's volume of business and any other relevant factors as\ndetermined by the superintendent, but in no case shall such bond be less\nthan ten thousand dollars nor more than one hundred thousand dollars;\nprovided however that if the superintendent determines, in his or her\nsole discretion, that a registrant has engaged in a pattern of conduct\nresulting in bona fide consumer complaints of misconduct, the\nsuperintendent may require such registrant to post a surety bond, or\nkeep on deposit as provided in this subdivision, twice the amount of\nsuch bond or deposit as is required consistent with such regulations. In\nthe event of the insolvency, liquidation or bankruptcy of such\nregistrant, or the surrender or revocation of such mortgage broker's\nregistration, or where the superintendent takes possession of such\nregistrant, the proceeds of each bond or deposit shall constitute a\ntrust fund to be used exclusively to reimburse consumer fees or other\ncharges determined by the superintendent to be improperly charged or\ncollected and to pay past due department of financial services\nexamination costs and assessments charged to the registrant, unpaid\npenalties, or other obligations of the registrant. The superintendent is\nauthorized to promulgate such regulations as are necessary and desirable\nto define and implement the provisions of this subdivision. Persons and\nentities registered prior to the effective date of any regulations of\nthe superintendent implementing or modifying the bonding requirement\nauthorized by this subdivision shall file such bond or establish such\ndeposit within six months of the effective date of such regulations.\n