2023 New York Laws › BNK - Banking › Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers › 28-BB - Credit Needs of Local Communities; Mortgage Bankers.

§  28-bb. Credit needs of local communities; mortgage bankers. 1. When
taking any action on an application made by a mortgage  banker  licensed
pursuant to section five hundred ninety-one of this chapter for a change
in  control under section five hundred ninety-four-b of this chapter, or
on any other application  or  notice  to  which  the  superintendent  of
financial  services  shall  by  rule  or  regulation make applicable the
provisions of this section, the superintendent shall take into  account,
among  other  factors,  an  assessment,  in  writing,  of  the record of
performance of the mortgage banker in helping to meet the  credit  needs
of   its   entire   community,   including   low   and  moderate  income
neighborhoods, and consistent with  safe  and  sound  operation  of  the
mortgage banker. Such assessment and any written communications from the
department  of  financial services to a mortgage banker relating to such
assessment shall be made available to the public upon request,  provided
that  nothing  contained  in  this subdivision shall be deemed to alter,
amend or affect the provisions of subdivision ten of section  thirty-six
of  this  article.  In  making such assessment of a mortgage banker, the
superintendent shall review all  reports  and  documents  filed  by  the
mortgage  banker  pursuant  to section five hundred ninety-seven of this
chapter. In addition, the superintendent shall  consider  the  following
factors  in  assessing  a  mortgage  banker's record of performance, and
include in its written assessment required by this section the record of
performance of such mortgage banker as to each of the following factors:
(a) Activities conducted by the mortgage banker  to  ascertain  credit
needs  of  its  community, including the extent of the mortgage banker's
efforts to communicate with  members  of  its  community  regarding  the
services being provided by the mortgage banker;
(b) The extent of the mortgage banker's marketing and special programs
to  make  members  of the community aware of the services offered by the
mortgage banker;
(c) The extent of the mortgage  banker's  participation  in  community
outreach,   community  development  or  redevelopment,  and  educational
programs;
(d) The extent of participation by  the  mortgage  banker's  board  of
directors,  advisory committee, managing members or executive management
or equivalent body or  person,  in  formulating  the  mortgage  banker's
policies  and  reviewing its performance with respect to the purposes of
this section;
(e) Any practices intended to  discourage  application  for  types  of
credit offered by the mortgage banker;
(f)  The  geographic  distribution  of  the  mortgage  banker's credit
extensions, credit applications, and credit denials;
(g) Evidence of prohibited  discriminatory  or  other  illegal  credit
practices;
(h)  The  mortgage  banker's record of opening and closing offices and
providing services at offices;
(i) The mortgage  banker's  participation  in  governmentally-insured,
guaranteed or subsidized loan programs for housing;
(j)  The  mortgage  banker's  ability to meet various community credit
needs based on its financial condition, size, legal  impediments,  local
economic condition and other factors; and
(k)  Other  factors  that,  in  the  judgment  of  the superintendent,
reasonably bear upon the extent to which a mortgage banker is helping to
meet the credit needs of its entire community.
2. In assessing  the  record  of  performance  of  a  mortgage  banker
pursuant  to  the  provisions  of  subdivision  one of this section, the
superintendent may, where he or she deems it  appropriate,  provide  for

public  hearings  when an objection to the mortgage banker's application
or notice has been submitted.
3.  An  assessment  of a mortgage banker's record of performance under
subdivision one of  this  section  may  be  the  basis  for  denying  an
application under the provisions of this section.
4. Notwithstanding any other provision of this chapter or other law to
the  contrary,  the term mortgage banker when used in this section shall
mean and include mortgage bankers  licensed  pursuant  to  section  five
hundred  ninety-one  of  this chapter that originate a minimum number of
loans annually, such number to be set by regulation promulgated  by  the
superintendent.
5. The superintendent is hereby authorized and empowered to promulgate
rules  and  regulations  effectuating  the  provisions  of this section,
including any rules and regulations providing  that  the  assessment  of
mortgage bankers shall be made on a graduated numerical basis.
6.  If  any  clause,  sentence, paragraph, subdivision or part of this
section or the application thereof to any person, firm, or  corporation,
or circumstance shall be adjudged by any court of competent jurisdiction
to  be  invalid  or  unconstitutional,  such  judgment shall not affect,
impair or invalidate the remainder thereof, but shall be confined (i) in
its operation to the clause, sentence, paragraph, subdivision,  or  part
of  this  section  or  (ii)  in  its  application to the person, firm or
corporation, or circumstance, directly involved in  the  controversy  in
which such judgment shall have been rendered.