N.Y. BNK Law § 28-BB — New York Code / Act BNK / Article 2 / Section 28-BB
Credit needs of local communities; mortgage bankers
Status: in_force

§ 28-bb. Credit needs of local communities; mortgage bankers. 1. When\ntaking any action on an application made by a mortgage banker licensed\npursuant to section five hundred ninety-one of this chapter for a change\nin control under section five hundred ninety-four-b of this chapter, or\non any other application or notice to which the superintendent of\nfinancial services shall by rule or regulation make applicable the\nprovisions of this section, the superintendent shall take into account,\namong other factors, an assessment, in writing, of the record of\nperformance of the mortgage banker in helping to meet the credit needs\nof its entire community, including low and moderate income\nneighborhoods, and consistent with safe and sound operation of the\nmortgage banker. Such assessment and any written communications from the\ndepartment of financial services to a mortgage banker relating to such\nassessment shall be made available to the public upon request, provided\nthat nothing contained in this subdivision shall be deemed to alter,\namend or affect the provisions of subdivision ten of section thirty-six\nof this article. In making such assessment of a mortgage banker, the\nsuperintendent shall review all reports and documents filed by the\nmortgage banker pursuant to section five hundred ninety-seven of this\nchapter. In addition, the superintendent shall consider the following\nfactors in assessing a mortgage banker's record of performance, and\ninclude in its written assessment required by this section the record of\nperformance of such mortgage banker as to each of the following factors:\n  (a) Activities conducted by the mortgage banker to ascertain credit\nneeds of its community, including the extent of the mortgage banker's\nefforts to communicate with members of its community regarding the\nservices being provided by the mortgage banker;\n  (b) The extent of the mortgage banker's marketing and special programs\nto make members of the community aware of the services offered by the\nmortgage banker;\n  (c) The extent of the mortgage banker's participation in community\noutreach, community development or redevelopment, and educational\nprograms;\n  (d) The extent of participation by the mortgage banker's board of\ndirectors, advisory committee, managing members or executive management\nor equivalent body or person, in formulating the mortgage banker's\npolicies and reviewing its performance with respect to the purposes of\nthis section;\n  (e) Any practices intended to discourage application for types of\ncredit offered by the mortgage banker;\n  (f) The geographic distribution of the mortgage banker's credit\nextensions, credit applications, and credit denials;\n  (g) Evidence of prohibited discriminatory or other illegal credit\npractices;\n  (h) The mortgage banker's record of opening and closing offices and\nproviding services at offices;\n  (i) The mortgage banker's participation in governmentally-insured,\nguaranteed or subsidized loan programs for housing;\n  (j) The mortgage banker's ability to meet various community credit\nneeds based on its financial condition, size, legal impediments, local\neconomic condition and other factors; and\n  (k) Other factors that, in the judgment of the superintendent,\nreasonably bear upon the extent to which a mortgage banker is helping to\nmeet the credit needs of its entire community.\n  2. In assessing the record of performance of a mortgage banker\npursuant to the provisions of subdivision one of this section, the\nsuperintendent may, where he or she deems it appropriate, provide for\npublic hearings when an objection to the mortgage banker's application\nor notice has been submitted.\n  3. An assessment of a mortgage banker's record of performance under\nsubdivision one of this section may be the basis for denying an\napplication under the provisions of this section.\n  4. Notwithstanding any other provision of this chapter or other law to\nthe contrary, the term mortgage banker when used in this section shall\nmean and include mortgage bankers licensed pursuant to section five\nhundred ninety-one of this chapter that originate a minimum number of\nloans annually, such number to be set by regulation promulgated by the\nsuperintendent.\n  5. The superintendent is hereby authorized and empowered to promulgate\nrules and regulations effectuating the provisions of this section,\nincluding any rules and regulations providing that the assessment of\nmortgage bankers shall be made on a graduated numerical basis.\n  6. If any clause, sentence, paragraph, subdivision or part of this\nsection or the application thereof to any person, firm, or corporation,\nor circumstance shall be adjudged by any court of competent jurisdiction\nto be invalid or unconstitutional, such judgment shall not affect,\nimpair or invalidate the remainder thereof, but shall be confined (i) in\nits operation to the clause, sentence, paragraph, subdivision, or part\nof this section or (ii) in its application to the person, firm or\ncorporation, or circumstance, directly involved in the controversy in\nwhich such judgment shall have been rendered.\n