NY Banking L § 599-E (2021)
2021 New York Laws BNK - Banking Article 12-E - Licensed Mortgage Loan Originators 599-E - Issuance of a License.

§ 599-e. Issuance of a license. 1. Findings. Notwithstanding any other law,  the  superintendent  shall  not  issue a mortgage loan origination license unless he or she makes, at a minimum, the following findings:  (a) No license revocation. That the applicant has never had a mortgage loan originator authorization, license or license equivalent revoked  in any  governmental jurisdiction, except that a subsequent formal vacation of such revocation shall not be deemed a revocation;  (b) No felony conviction. That the applicant has  not  been  convicted of,  or  pled  guilty  or  nolo  contendere  to, a felony in a domestic, foreign, or military court:  (i) During the seven-year period preceding the date of the application for licensing; or  (ii) At any time preceding such date of application,  if  such  felony involved  an  act  of  fraud, dishonesty, or a breach of trust, or money laundering,  provided  that  for  purposes  of  this  subdivision,   the superintendent  may,  in  his  or her discretion, disregard a conviction where the felon has been pardoned;  (c)  Character  and  fitness.  That  the  applicant  has  demonstrated financial  responsibility,  character,  and  general  fitness such as to command the confidence of the community and to warrant  a  determination that  the  MLO will operate honestly, fairly, and efficiently within the purposes of this article;  (d) Pre-licensing education. That  the  applicant  has  completed  the pre-licensing  education  requirement  described in section five hundred ninety-nine-f of this article;  (e) Written test. That the applicant has passed a  written  test  that meets   the   test   requirement   described  in  section  five  hundred ninety-nine-g of this article;  (f)  Surety  bond.  That  the  applicant  has  met  the  surety   bond requirement  described  in  section  five  hundred ninety-nine-k of this article; and  (g) Affiliation. Unless  the  superintendent  shall  have  waived  the affiliation   requirement   pursuant   to  regulations  adopted  by  the superintendent, that the applicant is employed by, or is an  independent contractor  of  (i)  an originating entity, (ii) solely in the case of a mortgage loan originator  engaged  in  the  origination  of  residential mortgage  loans  on manufactured homes, an entity licensed under article nine or eleven-B of this chapter, or (iii) in the  case  of  a  mortgage loan  originator  engaged  in  mortgage loan servicing and employed by a mortgage loan servicer, an entity registered as a mortgage loan servicer under article twelve-D of this chapter or exempt from registration under such article. A mortgage  loan  originator  may  not  be  simultaneously employed or affiliated with more than one originating entity.   2.  Disqualifying associations. The superintendent may refuse to issue a license pursuant to this article if he or  she  shall  find  that  the applicant  (a)  has been a director, partner, or substantial stockholder of an originating entity which has had a registration or license revoked by the superintendent or a regulator of  another  state  that  regulates such  originating  entity, or (b) has been an employee, officer or agent of,  or  a  consultant  to,  an  originating  entity  that  has  had   a registration  or license revoked by the superintendent or a regulator of another state that regulates such originating entity where  such  person shall  have  been  found  by  the superintendent or by such regulator of another state to bear responsibility for  the  acts  resulting  in  such revocation.  For  the  purposes  of  this subdivision, a person shall be deemed to have been convicted of a crime if such person shall have  pled guilty  to  a charge thereof before a court or magistrate, or shall have been found guilty thereof by the decision or  judgment  of  a  court  or  magistrate   or   by   the  verdict  of  a  jury,  irrespective  of  the pronouncement of sentence or the suspension thereof.   3.  Issuance  of  a  license.  The  superintendent,  after  making the findings required by subdivision one of  this  section  shall  thereupon issue  a  license  to  the  applicant  as  mortgage loan originator. The superintendent shall transmit  one  copy  of  such  certificate  to  the applicant  and  file  another  in  his or her office, and shall transmit notice  of  approval  of  such  application,  in  such   form   as   the superintendent  deems  appropriate,  to the originating entity for which the applicant is providing services.  Such license shall  be  deemed  to terminate  at  the end of the annual license period, unless such license is renewed in accordance with section five hundred ninety-nine-i of this article.