N.Y. BNK Law § 599-C — New York Code / Act BNK / Article 12-E / Section 599-C
License required
Status: in_force

§ 599-c. License required. 1. License required. No individual, unless\nspecifically exempt pursuant to subdivision three of this section shall\nengage in the business of a mortgage loan originator with respect to any\ndwelling or residential real property in this state without first\nobtaining and maintaining annually a license under this article. Each\nlicensed mortgage loan originator must register with and maintain a\nvalid unique identifier issued by the NMLSR.\n  2. Effective date. In order to facilitate an orderly transition to\nlicensing and minimize disruption in the mortgage marketplace:\n  (a) Each individual, other than an individual described in paragraph\n(b) of this subdivision, shall be licensed pursuant to subdivision one\nof this section not later than July thirty-first, two thousand ten, or\nsuch later date approved for mortgage loan originators in this state by\nthe Secretary of the U.S. Department of Housing and Urban Development,\npursuant to the authority granted under Public Law 110-289, Section\n1508(a) and approved by the superintendent;\n  (b) Each individual authorized as a mortgage loan originator under\nprior law not later than July thirty-first, two thousand nine, shall be\nlicensed pursuant to subdivision one of this section not later than\nJanuary first, two thousand eleven, or such later date approved for\nmortgage loan originators in this state by the Secretary of the U.S.\nDepartment of Housing and Urban Development, pursuant to the authority\ngranted under Public Law 110-289, Section 1508(a) and approved by the\nsuperintendent.\n  (c) Notwithstanding paragraphs (a) and (b) of this subdivision, after\nthe effective date of this article, no individual shall act as a\nmortgage loan originator if such individual has been convicted of, or\npled guilty or nolo contendere to, a felony of the types and during the\ntime periods described in paragraph (b) of subdivision one of section\nfive hundred ninety-nine-e of this article, in a domestic, foreign or\nmilitary court, unless expressly authorized to act as a mortgage loan\noriginator by the superintendent.\n  3. Exemption from licensing requirements. The following persons are\nexempt from the licensing requirements otherwise applicable under this\narticle:\n  (a) Registered mortgage loan originators, when acting for an entity\ndescribed in subparagraphs (i), (ii) and (iii) of paragraph (a) of\nsubdivision thirteen of section five hundred ninety-nine-b of this\narticle.\n  (b) Any individual who offers or negotiates the terms of a residential\nmortgage loan with or on behalf of an immediate family member of the\nindividual.\n  (c) Any individual who offers or negotiates terms of a residential\nmortgage loan secured by a dwelling or residential real property that\nserved as the individual's own residence.\n  (d) A licensed attorney who negotiates the terms of a residential\nmortgage loan on behalf of a client as an ancillary matter to the\nattorney's representation of the client, unless the attorney is\ncompensated by a lender, a mortgage broker, or other mortgage loan\noriginator or by any agent of such lender, mortgage broker, or other\nmortgage loan originator.\n  (e) Any individual employed by a mortgage loan servicer registered\nunder article twelve-D of this chapter, who negotiates any modification\nof an existing residential mortgage loan on behalf of such servicer, and\ndoes not otherwise act as a mortgage loan originator, unless licensing\nis required by a rule, regulation, guideline or interpretation issued by\nthe U.S. Department of Housing and Urban Development under Public Law\n110-289.\n  (f) Any individual involved in the sale of manufactured homes if\nexempted from licensing by a rule, regulation, guideline or\ninterpretation issued by the U.S. Department of Housing and Urban\nDevelopment under Public Law 110-289.\n  4. Independent contractor loan processors or underwriters. A loan\nprocessor or underwriter who is an independent contractor of an\noriginating entity may not engage in residential mortgage loan\norigination activities unless such independent contractor loan processor\nor underwriter obtains and maintains a license under this article. Each\nindependent contractor loan processor or underwriter licensed as a\nmortgage loan originator must have and maintain a valid unique\nidentifier issued by the NMLSR.\n