2023 New York Laws › BNK - Banking › Article 12-E - Licensed Mortgage Loan Originators › 599-N - Enforcement Authority; Grounds for Suspension or Revocation of a Mortgage Loan Originator License; Restitution.

§  599-n.  Enforcement authority; grounds for suspension or revocation
of  a  mortgage  loan  originator  license;  restitution.  1.   Licensee
revocation.  In addition to the authority set forth in subdivision three
of  this  section,  the superintendent may revoke a license to engage in
business as a mortgage loan originator pursuant to this article if he or
she finds, after notice and a hearing, that:
(a) Through a  course  of  conduct,  the  licensee  has  violated  any
provisions of this article, or any rule or regulation promulgated by the
superintendent  thereunder, or any rule or regulation promulgated by the
superintendent under article twelve-D of this chapter or  of  any  other
applicable  law,  rule  or  regulation  of  this  state  or  the federal
government  pertaining  to   mortgage   banking,   brokering   or   loan
originating; or
(b)  Any fact or condition exists which, if it had existed at the time
of the original application for such license, would have  warranted  the
superintendent to refuse to issue such initial license.
2.   Restitution.   The  superintendent  may  order  a  mortgage  loan
originator or any other person to pay restitution for violations of this
article or any rules of the superintendent promulgated hereunder.
3. Suspension; termination.  (a)  The  superintendent  may,  for  good
cause,  or  where  there  is  a substantial risk of public harm, without
notice or a hearing, issue  an  order  suspending  the  license  of  any
mortgage  loan  originator  for  a  period not to exceed ninety days for
investigation.  "Good cause", as used in this subdivision,  shall  exist
only  when  the  mortgage  loan  originator  has  engaged  or engages in
dishonest  or  inequitable  practices  or  practices  which  demonstrate
incompetent   mortgage  loan  originating,  which  practices  may  cause
substantial harm to the  persons  afforded  the  protection  of  article
twelve-D of this chapter, or the license of the mortgage loan originator
was revoked in another state or jurisdiction participating in the NMLSR.
(b)  The  superintendent  may,  without  notice or a hearing, issue an
order suspending any  license:  (i)  thirty  days  after  the  date  the
mortgage  loan  originator fails to file any report required to be filed
with the superintendent pursuant  to  the  authority  provided  by  this
article;  or  (ii) immediately upon notice that any required surety bond
with respect to the licensee is no longer in effect.
(c) If the superintendent has issued an  order  suspending  a  license
pursuant  to  paragraph  (a)  of  this  subdivision, such license may be
reinstated  if  the  superintendent  determines,  in  his  or  her  sole
discretion  after  investigation, that good cause therefor did not exist
or  no  longer  exists.  If  the  superintendent  has  issued  an  order
suspending a license pursuant to paragraph (b) of this subdivision, such
license  may  be reinstated, if the superintendent determines, in his or
her sole discretion, that the licensee has cured  all  deficiencies  set
forth  in such order by the close of business ninety days after the date
of such suspension order. Otherwise, in case of a suspension pursuant to
paragraph (b) of this subdivision, unless the superintendent has, in his
or her sole discretion, extended such suspension, the  license  of  such
mortgage  loan originator shall be deemed to be automatically terminated
by operation of law at the close of business on such ninetieth day.
4. Requirement for a hearing. Except as provided in subdivision  three
of  this  section, no license shall be revoked or suspended except after
notice and a hearing thereon.  Any  order  of  suspension  issued  after
notice  and  a  hearing may include as a condition of reinstatement that
restitution be made to consumers of fees or  other  charges  which  have
been   improperly   charged   or   collected   as   determined   by  the
superintendent.
5. Surrender of license. With the prior consent of the superintendent,
any mortgage loan originator may surrender any license by delivering  to
the superintendent written notice that he or she thereby surrenders such
license,  but  such  surrender  shall  not  affect  such  mortgage  loan
originator's  civil  or  criminal  liability for acts committed prior to
such surrender or its obligations to the superintendent for assessments,
fees or administrative actions with respect to the periods  before  such
surrender.
6.  Continuation of liability. A suspension, revocation or termination
of a license in accordance with  this  article  shall  not  affect  such
mortgage   loan  originator's  civil  or  criminal  liability  for  acts
committed prior to such suspension, revocation  or  termination  or  its
obligations   to   the   superintendent   for   assessments,   fees   or
administrative  actions  with  respect  to  the  periods   before   such
suspension, revocation or termination.
7.  Continuation of contracts. No revocation, suspension, surrender or
termination of any license under this article shall impair or affect the
obligation of any preexisting lawful contract between any licensee under
article twelve-D of this chapter and any person.
8. Continuation of license. Every  license  issued  pursuant  to  this
article  shall remain in force and effect until the same shall have been
surrendered, revoked, terminated or suspended  in  accordance  with  any
provision  of  this article, but the superintendent shall have authority
in his or her sole discretion to reinstate a  suspended  license  or  to
issue  a  new  license to a mortgage loan originator whose license shall
have been revoked or terminated if no  fact  or  condition  then  exists
which  would  have  warranted the superintendent to refuse to issue such
initial authorization under this article.
9.  Notice  of  revocation  or  suspension;   review.   Whenever   the
superintendent shall revoke or suspend a license issued pursuant to this
article,  he or she shall forthwith execute multiple copies of a written
order to that effect. The superintendent shall file  one  copy  of  such
order  in  the office of the department and shall forthwith serve a copy
upon the mortgage loan originator and any affected  originating  entity.
Any  such  order  may  be  reviewed  in  the  manner provided by article
seventy-eight of the civil practice law and rules. Such application  for
review  as  authorized  by  this section must be made within thirty days
from the date of such order of suspension or revocation.
10. Notice of termination. Whenever a license shall have terminated in
accordance with  this  article,  the  superintendent  shall  notify  the
mortgage  loan  originator  and any affected originating entity that the
license has terminated and that the mortgage  loan  originator  may  not
engage in the business of soliciting, processing, placing or negotiating
a  mortgage  loan  or offering to solicit, process, place or negotiate a
mortgage loan in this state.
11. Hearing requirements. Any hearing held pursuant to the  provisions
of  this  section  shall  be  subject  to  the  provisions  of the state
administrative procedure act.