§ 6504 — Required approvals; prohibitions

§ 6504. Required approvals; prohibitions. (a) Every mortgage insurer\nshall file with the superintendent for his approval in accordance with\narticle twenty-three of this chapter its premium rates, forms of\npolicies, certificates, applications and other forms pertaining to\nmortgage guaranty insurance. The premium rate charged for mortgage\nguaranty insurance shall not be deemed to be interest for the purposes\nof section 5-501 of the general obligations law.\n (b) No mortgage insurer shall pay:\n (1) to any person who is acting as agent, representative, attorney or\nemployee of the owner, mortgagee of the prospective owner, or mortgagee\nof the real property or any interest therein, either directly or\nindirectly, any consideration as an inducement for or as compensation on\nany mortgage guaranty insurance business; or\n (2) any compensation to any person for transacting insurance for or\nwith it based in whole or in part upon a commission basis unless such\nperson is licensed pursuant to this chapter.\n (c) In connection with the placement or renewal of any insurance, a\nmortgage insurer shall not permit any compensation to be paid to, or\nreceived by: any insured lender; any officer, director, or employee of\nthe insured; any member of their immediate family; any corporation,\npartnership, trust, or trade association in which an insured is a\nmember; or other entity in which an insured or any such officer,\ndirector, or employee or any member of their immediate family has a\nfinancial interest; or any designee, trustee, nominee, or other agent or\nrepresentative of any of the foregoing.\n (d) The superintendent may, after a hearing, suspend or revoke the\nlicense of any mortgage insurer which, after ten days written notice\nfrom the superintendent requiring it to cease and desist, continues to\npay any consideration in willful violation of this article.\n