New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 418 - Registration Requirements; Financial Responsibility Requirements › Section 418.2 - Mortgage loan servicer registration; exemptions

Current through Register Vol. 46, No. 28, July 10, 2024
Section 590 (2)(b-1) of the Banking Law provides that no
					 person, partnership, association, corporation or other entity shall engage in
					 the business of servicing mortgage loans with respect to any property located
					 in this State without first being registered with the superintendent as a
					 mortgage loan servicer. A person servicing mortgage loans made under the Power
					 New York Act of 2011 (chapter 388 of the Laws of 2011) shall not thereby be
					 deemed to be engaged in the business of servicing mortgage loans. All
					 servicers, including third-party servicers, engaged directly or indirectly in
					 servicing mortgage loans, are required to register hereunder. When a mortgage
					 loan servicer delegates servicing of one or more mortgage loans to another
					 servicer without transferring ownership of the mortgage servicing rights, it
					 remains obligated to comply with all requirements of this Part with respect to
					 the servicing of such loan mortgage loan(s). The sub-servicer likewise remains
					 responsible under this Part. The registration provisions of this Part shall not
					 apply to the following persons, provided that each such exempt person notifies
					 the superintendent that it is servicing mortgage loans in this State and
					 complies with the regulations applicable to mortgage loan servicers (other than
					 those regarding registration):
(a)
Exempt organization.
Any insurance company, banking organization, foreign
					 banking corporation licensed by the superintendent or the Comptroller of the
					 Currency to transact business in this State, national bank, Federal savings
					 bank, Federal savings and loan association, Federal credit union, or any bank,
					 trust company, savings bank, savings and loan association, or credit union
					 organized under the laws of any other state, or any instrumentality created by
					 the United States or any state with the power to make mortgage
					 loans.
(b)
Mortgage
				  banker.
Any person licensed pursuant to section 592  of the Banking Law to engage in the
					 business of making mortgage loans.
(c)
Mortgage broker.
Any person registered pursuant to section 592-a  of the Banking Law to engage in the
					 business of soliciting, processing, placing or negotiating mortgage loans for
					 others, or offering to solicit, process, place or negotiate mortgage loans for
					 others.
(d)
Assisting
				  in incidental activities.
No person shall be subject to the registration provisions
					 of this Part if he or she is employed by an exempt organization, a mortgage
					 banker or mortgage broker, or a mortgage loan servicer to assist in the
					 servicing of mortgage loans for such employer. The preceding sentence shall not
					 affect the obligation of any person to be licensed as a mortgage loan
					 originator when required under article 12-E of the Banking
					 Law.
(e)
Exemptions
				  approved by the superintendent.
Other persons may be exempted with the prior written
					 approval of the superintendent for good cause.