2023 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.