NY Banking L § 591 (2021)
2021 New York Laws BNK - Banking Article 12-D - Licensed Mortgage Bankers 591 - Application for a Mortgage Banker's License; Fees.

§ 591.  Application  for  a  mortgage  banker's  license; fees. 1. The application for a license to be a mortgage banker shall be  in  writing, under   oath,   and  in  the  form  prescribed  by  the  superintendent. Notwithstanding article three of the state technology law or  any  other law  to the contrary, the superintendent may require that an application for, or renewal of, a license or any other submission or application for approval as may be required by this article,  be  made  or  executed  by electronic  means,  including  through  the  National Mortgage Licensing System and  Registry  or  other  entities  designated  by  the  National Mortgage  Licensing  System and Registry if he or she deems it necessary to ensure the efficient and effective administration  of  this  article. The  application  shall  contain  the  name  and  complete  business and residential address or addresses of the applicant. If the applicant is a partnership,  association,  corporation  or  other  form   of   business organization,  the  application  shall  contain  the  names and complete business  and  residential  addresses  of  each  member,  director   and principal  officer  thereof.  Such  application  shall  also  include  a description of the activities of the applicant, in such detail  and  for such periods, as the superintendent may require; including:  (a)  An  affirmation  of financial solvency noting such capitalization requirements as may be required by the  superintendent,  and  access  to such credit as may be required by the superintendent;  (b)  The  fingerprints of the applicant, which may be submitted to the division  of  criminal  justice  services  and  the  federal  bureau  of investigation for state and national criminal history record checks;  (c)  An  affirmation  that the applicant, or its members, directors or principals as may be appropriate, are at least twenty-one years of age;  (d) Information as to the character, fitness, financial  and  business responsibility, background and experiences of the applicant.   2.  An  application  shall  be  accompanied by an investigation fee as prescribed pursuant to section eighteen-a of this chapter payable to the superintendent.   3. A licensee may apply for authority to open and  maintain  a  branch office  by  giving  the  superintendent prior notice of its intention in such form as shall be  prescribed  by  the  superintendent.  Unless  the superintendent  denies the application within thirty days of publication of notice of receipt of a completed application, the licensee  shall  be permitted  to  open  and  maintain such branch office. An application to open  and  maintain  a  branch  office  shall  be  accompanied   by   an investigation  fee  as prescribed pursuant to section eighteen-a of this chapter.   4. As a condition  for  the  issuance  and  retention  of  a  mortgage banker's  license, and subject to such regulations as the superintendent shall  prescribe,  applicants  for  a  license  shall  file   with   the superintendent  a  surety bond in form satisfactory to him or her issued by a bonding company or insurance company authorized to do  business  in this state.  The principal amount of such bond shall be in an amount and form  prescribed  by regulations of the superintendent. Such regulations shall provide for a varying bond amount based upon a  licensee's  volume of  business  and  any  other  relevant  factors  as  determined  by the superintendent, but in no case  shall  such  bond  be  less  than  fifty thousand  dollars nor more than five hundred thousand dollars; provided, however, that if the superintendent  determines,  in  his  or  her  sole discretion,  that  a  licensee  has  engaged  in  a  pattern  of conduct resulting  in  bona  fide  consumer  complaints   of   misconduct,   the superintendent  may require such licensee to post a surety bond, or keep on deposit as provided in this subdivision, twice  the  amount  of  such bond or deposit as is required consistent with such regulations. In lieu  of  such bond, an applicant may keep on deposit with such banks, savings banks, savings and loan associations,  or  trust  companies  or  private bankers  or  national  banks or federal savings banks or federal savings and  loan  associations  in  the state of New York as such applicant may designate and the superintendent may  approve,  interest-bearing  stocks and  bonds, notes, debentures, or other obligations of the United States or any agency or instrumentality thereof, or guaranteed  by  the  United States,  or  of  this state, or of a city, county, town, village, school district, or instrumentality of this state or guaranteed by this  state, or  dollar  deposits,  or  such other assets or letters of credit as the superintendent shall by rule or regulation permit. In the event  of  the insolvency, liquidation or bankruptcy of such licensee, or the surrender or   revocation   of  such  mortgage  banker's  license,  or  where  the superintendent takes possession of such licensee, the proceeds  of  each bond  or deposit shall constitute a trust fund to be used exclusively to reimburse  consumer  fees   or   other   charges   determined   by   the superintendent to be improperly charged or collected and to pay past due department  of  financial  services  examination  costs  and assessments charged to the licensee, unpaid penalties, or other obligations  of  the licensee.   The   superintendent   is   authorized  to  promulgate  such regulations as are necessary and desirable to define and  implement  the provisions  of  this subdivision. Persons and entities licensed prior to the effective date of any regulations of the superintendent  prescribing the  bonding  requirement authorized by this subdivision shall file such bond or establish such deposit within six months of the  effective  date of such regulations.