reglab/statecodes huggingface dataset:
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 418.5 - Branch application and fees

Current through Register Vol. 46, No. 28, July 10, 2024
(a) An
				  MLS may apply to open and maintain one or more branches. A branch may be
				  applied for by application containing the information and documents set forth
				  in an application form prescribed by the Superintendent. Instructions for
				  submission of applications are available on the Department's website as set
				  forth in section
				  1.1  of
				  Supervisory Policy G 1 and may be obtained from the Department as set forth
				  above. If an application is requested in writing, the address should indicate
				  the following: Attn: Mortgage Banking Division.
(b) An application for branch office filed by
				  an MLS shall be accompanied by payment of the fee, if any, specified in section 18-a 
				  of the Banking Law.
(c) In the
				  event the Superintendent does not reject or deny the application for a branch
				  within 60 days of publication in the
Weekly Bulletin
of the
				  Department of the receipt of a completed application, the MLS may open the
				  branch.
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 418.6 - Calculation and collection of fees

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Payment of fees. An application to become
				  a registered MLS and any other application by an MLS for an approval of the
				  Superintendent required under Article 12-D of the Banking Law shall be
				  accompanied by payment of the appropriate fee, if any, as set forth in Section 18-a 
				  of the Banking Law. In addition to the amount prescribed by Section
				  418.4(b),
				  such fees may include any processing fee charged by the Nationwide Mortgage
				  Licensing System and Registry ("NMLSR") (or any other entity with which the
				  Superintendent has entered into a written contract or memorandum of
				  understanding to process applications and other submissions relating to
				  mortgage loan servicing) and fingerprint processing fees collected by the
				  Criminal Justice Services and/or the NMLSR. Such fees are nonrefundable.
(b) Fee amount. The schedule of
				  fees in effect from time to time shall be posted on the Department's website,
				  as set forth in section
				  1.1  of
				  Supervisory Policy G 1.
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 418.7 - Approval or denial of application

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Approval of application.
If the Superintendent shall find that
				  the financial responsibility, experience, character, and general fitness of the
				  applicant, and of the members thereof if the applicant is a co-partnership or
				  association, and of the officers and directors thereof if the applicant is a
				  corporation, are such as to warrant belief that the business will be operated
				  honestly, fairly, and efficiently within the purpose of Article 12-D of the
				  Banking Law, the Superintendent shall thereupon in accordance with paragraph
				  (c) below approve the application, register the applicant as a Mortgage Loan
				  Servicer on a list maintained for that purpose at the Department and shall
				  issue a certificate to the registrant attesting to such registration.
(b)
Grounds for refusal.
The
				  Superintendent may refuse to register the applicant as a Mortgage Loan Servicer
				  upon any ground on which the Superintendent could refuse to license the
				  applicant as a mortgage banker under section 592  of the Banking Law or register the
				  applicant as a mortgage broker under section 592-a  of the Banking Law.
(c)
Notice of approval.
Upon
				  registering any applicant as an MLS, the Superintendent shall transmit notice
				  of approval of the application, including the certificate described in (a)
				  above, in such form as the Superintendent deems appropriate, to the
				  MLS.
(d)
List of
				  registrants.
The Superintendent shall maintain upon the Department's
				  website a list of registered Mortgage Loan Servicers. The list shall indicate
				  the following:
1. Name of each MLS;
				  and
2. The location of the
				  principal office of such MLS.
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 418.8 - Changes in directors, officers or control of Mortgage Loan Servicer

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Change
				  in control.
It shall be unlawful except with the prior approval of the
				  Superintendent for any action to be taken which results in a change of control
				  of the business of a Mortgage Loan Servicer.
1. For purposes of this Part, a "change in
				  control" shall have the same meaning with respect to an MLS that it has for a
				  Mortgage Banker or Mortgage Broker under section 594-b  of the Banking Law.
2. For a period of six months from the date
				  of qualification of a legal representative, and for such additional period of
				  time as the Superintendent may prescribe, in writing, the provisions of this
				  Section 418.8  shall not apply to a transfer of control by operation of law to
				  the legal representative, as defined in Section 594-b (3)  of the Banking
				  Law, of one who has control of a Mortgage Loan Servicer.
3. Approval of a change of control of a
				  Mortgage Loan Servicer shall be governed by the same standards as an applicant
				  for registration as an MLS under sections
				  418.2 
				  and 418. 7 of this Part, as applicable.
4. Each application for change of control of
				  a Mortgage Loan Servicer shall be subscribed by the applicant under penalty of
				  perjury and shall contain the information and documents referred to in
				  Supervisory Procedure MB 110, as well as any other information and documents as
				  the Superintendent may require to assist in reviewing the
				  application.
5. Fee. A completed
				  application must be accompanied by payment of a non-refundable application fee.
				  The amount of such fee is $3,000, as provided in section 18-a 
				  of the Banking Law.
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 418.9 - Revocation, suspension, termination and surrender of registration

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Grounds
				  for revocation.
The Superintendent may revoke any registration to
				  engage in the business of servicing mortgage loans issued pursuant to this Part
				  if he or she shall find that:
1. The MLS has
				  violated any applicable provision of Article 12-D of the Banking Law, any
				  applicable rule or regulation promulgated under Article 12-D of the Banking Law
				  or any other law, rule or regulation of New York State or the federal
				  government pertaining to Servicing Mortgage Loans;
2. Any fact or condition exists which, if it
				  had existed at the time of the original application for such registration,
				  would have warranted the Superintendent in refusing originally to issue such
				  registration; or
3. The MLS has
				  committed a crime under the laws of New York or any other state or of the
				  United States involving moral turpitude or fraudulent or dishonest dealing, or
				  a final judgment has been entered against the MLS in a civil action on grounds
				  of fraud, misrepresentation or deceit.
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 418.10 - Fines and penalties

Current through Register Vol. 46, No. 28, July 10, 2024
The Superintendent may impose a fine against an MLS for any
					 violation of the Banking Law, any regulation promulgated thereunder, any final
					 or temporary order issued pursuant to Section 39  of the Banking Law, any condition imposed
					 in connection with the grant of any application or request or any written
					 agreement entered into with the Superintendent, or any conduct which would
					 constitute grounds for revocation or suspension of the registration of such
					 MLS.
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 418.11 - Business background and character and fitness requirements for Mortgage Loan Servicer registration

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Business background.
Applicants for registration to engage in
				  the business of Servicing Mortgage Loans shall demonstrate to the
				  Superintendent's satisfaction that they have five years verifiable experience
				  in the business of servicing mortgage loans or similar servicing experience or
				  that they have engaged or shall engage in their employ one or more Persons
				  having such experience. At the Superintendent's sole discretion, other relevant
				  educational or business experience may be substituted for some of the servicing
				  experience described in this subdivision.
(b)
General benefit.
Applicants shall demonstrate to the Superintendent their character and fitness
				  to engage in the business of Servicing Mortgage Loans in a manner which is
				  honest, fair, efficient, and free from deceptive and anticompetitive
				  practices.
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 418.12 - Financial responsibility requirements for Mortgage Loan Servicers and Applicants, other than insured depository institutions covered by Section 418.13

Current through Register Vol. 46, No. 28, July 10, 2024
Each Applicant for registration to engage in the business
					 of Servicing Mortgage Loans shall provide the Superintendent with evidence
					 acceptable to the Superintendent of its financial responsibility. In
					 particular:
(a) Net worth. Each
				  Applicant shall demonstrate the ability to maintain, and a registered Mortgage
				  Loan Servicer or Exempted Person (other than an insured depository institution
				  covered by
§
											418.13
) shall maintain net worth of at least $250,000 plus 1/4 of 1% of the
				  outstanding principal balance of aggregate mortgages serviced (whether or not
				  in New York), provided, that, if such Person is solely a Third-party servicer,
				  such net worth calculation shall be based upon the amount of the entity's New
				  York mortgage loans serviced, and if such Person is a Third-party servicer with
				  respect to certain mortgage loans and owns other mortgage loans or the
				  servicing rights thereto, it shall maintain net worth of at least $250,000 plus
				  1/4 of 1% of the outstanding principal balance of the non-Third-party servicer
				  loans and 1/4 of 1% of the outstanding principal amount of the New York
				  mortgage loans for which it is a Third-party servicer. Net worth for purposes
				  of this Part shall consist of total equity capital, determined in accordance
				  with Generally Accepted Accounting Principles, at the end of the most recent
				  reporting period for which financial results are available, less:
(i) goodwill and other intangible assets
				  (excluding mortgage servicing rights);
(ii) assets pledged to secure obligations of
				  a Person other than the Servicer,
(iii) any amounts due from officers or
				  stockholders of the Servicer or from a related company,
(iv) any amount in excess of the lower of
				  cost or market value of mortgages in foreclosure, construction loans or
				  property acquired through foreclosure, and
(v) any other receivables that the
				  Superintendent determines are not collectable. At least 10% of the net worth
				  required under this paragraph shall consist of cash, cash equivalents or
				  readily marketable securities.
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 418.13 - Financial responsibility requirements for insured depository institutions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Net Worth;
				  Surety Bond. An institution whose deposits are insured by the Federal Deposit
				  Insurance Corporation and that is at least adequately capitalized as defined in
				  Section 38 of the Federal Deposit Insurance Act (12 U.S.C. Section
				  1831o)  shall be exempt from the net worth
				  and surety bond requirements of Section
				  418.12
				  of this Part.
(b) Fidelity Bond;
				  E&O Coverage. Each institution whose deposits are insured by the Federal
				  Deposit Insurance Corporation and that services mortgage loans shall comply
				  with the Fidelity Bond and E&O Coverage applicable to Exempted Persons
				  under Section
				  418.12(c)of 
				  this Part, provided that the Superintendent need not be named as an additional
				  loss payee under each such bond or coverage.
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 418.14 - Transitional period

Current through Register Vol. 46, No. 28, July 10, 2024
If an MLS is doing business in this state on June 30, 2009
					 and has filed an application for registration by July 31, 2009, it shall be
					 deemed in compliance with the registration requirements of this Part until it
					 has been notified by the Superintendent that its application has been denied,
					 in which case it shall immediately transfer its servicing rights in this s6tate
					 to an authorized mortgage loan servicer. If a Person
IS
required
					 to file an application for a license solely because of the amendments to this
					 Part 418 that were effective August 23, 2011, so long as it has filed an
					 application that is substantially complete by the 30th day after such effective
					 date and expeditiously provides such additional information as may be required
					 by the Superintendent, such Person may continue to operate without a license,
					 until it is notified by the Superintendent that its application has been denied
					 or until six months after such effective date, whichever is
					 earlier.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.2 - Escrow accounts

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				  shortage, surplus or deficiency in a borrower's escrow account shall be
				  addressed by a servicer in accordance with the provisions of RESPA,
				  12 C.F.R. section
				  1024.17(f). Alternatively,
				  with the consent of the borrower, an escrow account surplus may be applied to
				  the principal balance.
(b) If a
				  servicer advances funds in paying a disbursement, which is not the result of a
				  borrower's payment default under the underlying mortgage document, then the
				  servicer shall conduct an escrow account analysis to determine the extent of
				  the deficiency and shall provide a written explanation to the borrower. The
				  servicer shall wait 30 calendar days after providing the written explanation to
				  the borrower before seeking payment of the funds necessary to correct the
				  deficiency from the borrower.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.4 - Statement of account

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Annual statements.
At least once annually, within 30 days of the end of the
					 escrow account computation year, a servicer shall deliver to each borrower a
					 plain language statement of the borrower's account that lists the unpaid
					 principal balance of the mortgage loan at the end of the immediately preceding
					 12-month period, the interest paid during such period, and the application of
					 all payments during such period; and the amounts deposited into escrow and
					 disbursed from escrow during the period. The escrow statement may be provided
					 separately from the statement showing the unpaid principal and interest paid.
					 The format and content of the annual escrow statement shall comply with the
					 requirements of RESPA and
					 12 C.F.R. section 1024.17(i)(1)
					 and (j).
(b)
Payment histories.
Within 30 days of receipt of a request from the borrower, a
					 servicer shall deliver to the borrower a payment history for the preceding 36
					 months (unless a different period is requested) of the borrower's account
					 showing the date, amount, and application of all payments credited to the
					 account and the total unpaid balance during this period. The servicer shall
					 have 60 days to deliver a payment history when the request is for a period
					 longer than the preceding 36 months and the servicing rights to the loan were
					 transferred within that 36-month period.
(c)
Periodic statements.
A servicer shall provide each borrower, for each billing
					 cycle, a periodic statement which shall include:
(1) The amount due, including, but not
				  limited to:
(i) the payment due
				  date;
(ii) the amount of any late
				  payment fee, and the date on which that fee will be imposed if payment has not
				  been received;
(iii) if the
				  transaction has multiple payment options, the amount due under each of the
				  payment options;
(iv) an
				  explanation of the amount due, including:
(a)
				  the monthly payment amount, including the amount, if any, that will be applied
				  to principal, interest, and escrow and, if a mortgage loan has multiple payment
				  options, a breakdown of each of the payment options along with information on
				  whether the principal balance will increase, decrease, or stay the same for
				  each option listed;
(b) the total
				  sum of any fees or charges imposed since the last statement; and
(c) any payment amount past due.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.5 - Fees

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Schedule
				  of fees.
A servicer shall maintain and keep current a schedule of
					 standard or common fees that may be charged to a borrower. A servicer shall
					 make its schedule available on its public website and to a borrower upon
					 request. The schedule shall identify each fee, provide a plain language
					 explanation of when and why the fee will be charged and state the amount of the
					 fee or range of amounts or, if there is no standard fee, how the fee is
					 calculated or determined.
(b)
Authorized fees.
A servicer may only collect a fee if it is for a service
					 that is actually rendered to the borrower, reasonably related to the cost of
					 rendering that service, and it meets one of the following conditions:
(1) the fee is expressly authorized and
				  clearly and conspicuously disclosed by the loan instruments and not prohibited
				  by law;
(2) the fee is expressly
				  permitted by law and not prohibited by the loan instruments; or
(3) the fee is not prohibited by law or the
				  loan instruments and is for a specific service requested by the borrower that
				  is assessed only after disclosure of the fee is provided to the borrower and
				  the borrower expressly consents to pay the fee in exchange for the
				  service.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.6 - Borrower complaints and inquiries

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Servicers shall establish and maintain:
(1) procedures and systems to respond to and
				  resolve borrower complaints and inquiries in accordance with the requirements
				  of this Part;
(2) a customer
				  service department staffed by trained personnel to whom borrowers may direct
				  complaints and inquiries; and
(3) a
				  toll-free telephone number or collect calling service that enables borrowers to
				  speak with a living person, during regular business hours, trained to answer
				  inquiries and instruct borrowers on how to file written complaints.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.8 - Volume of servicing report

Current through Register Vol. 46, No. 28, July 10, 2024
The superintendent may require each servicer that is either
					 registered or required to be registered with the superintendent or that is an
					 exempt organization regulated by the superintendent to compile and submit,
					 within 30 days of the end of each calendar quarter, a report in the format
					 required by the superintendent, that contains information regarding the
					 servicer's mortgage loans servicing activities.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.9 - Books and records and annual reports

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
In general.
This section applies to each servicer that is either
					 registered or required to be registered with the superintendent or that is an
					 exempt organization regulated by the superintendent. Each servicer
					 shall:
(1) keep such books and records
				  in a manner that will allow the superintendent to determine whether the
				  servicer is complying with applicable laws and regulations; and
(2) preserve its books and records for at
				  least three years after making the final entry with respect to any New York
				  mortgage loan being serviced by the servicer, unless a longer period is
				  provided by statute. At a minimum, books and records must provide information
				  regarding:
(i) loan payments received,
				  disbursements made and the dates of transactions for each account;
(ii) the principal balance of each loan
				  account;
(iii) the amount and due
				  date of each loan installment for each loan serviced;
(iv) the servicing history for all mortgage
				  loans serviced by the servicer, including the servicing history of loans
				  acquired from another entity, provided that the servicer is only required to
				  maintain records of any prior servicer of a loan to the extent that such
				  information is reasonably available; and
(v) the servicing of delinquent loans,
				  including loans in foreclosure.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.12 - Mortgage servicing transfers

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The first monthly statement provided by a
				  transferee servicer to a borrower shall include a copy of the transferee
				  servicer's welcome packet and a payment history containing the information
				  detailed in section 419.4(b)  of this Part.
(b) A transferee servicer shall allow a
				  borrower that is complying with the terms of a trial loan modification as of
				  the effective date of transfer of the servicing of the borrower's mortgage loan
				  to the transferee servicer to continue making existing trial loan modification
				  payments for the remainder of the trial modification period.
(c) A transferee servicer shall allow a
				  borrower who has successfully completed a trial modification prior to the
				  effective date of transfer of the servicing of the borrower's mortgage loan to
				  the transferee servicer, but who has not yet received permanent modification
				  documents from the transferor servicer, to continue making trial modification
				  payments until the transferee servicer can provide permanent modification
				  documents to the borrower.
(d) A
				  transferee servicer shall not refuse to consider for a loss mitigation option a
				  borrower who was previously denied for a loss mitigation option by a transferor
				  servicer by sole reason of the denial by the transferor servicer.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.13 - Affiliated relationships

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Within 10 days of entering into an affiliated relationship, servicers must
				  provide to each borrower whose mortgage loan is subject to such arrangement, a
				  written disclosure of the nature of the relationship (explaining the ownership
				  and financial interest) between the parties to the arrangement and of an
				  estimated charge or range of charges generally made by such
				  affiliate.
(b) All affiliated
				  relationships must be negotiated at market rate and a servicer shall neither
				  give nor accept any fee, kickback or other thing of value pursuant to any
				  affiliated relationships other than payments listed in section 419.5  of this
				  Part; and
(1) a return on an ownership
				  interest which does not include:
(i) any
				  payment which has as a basis of calculation no apparent business motive other
				  than distinguishing among recipients of payments on the basis of the amount of
				  their actual, estimated or anticipated referrals;
(ii) any payment which varies according to
				  the relative amount of referrals by the different recipients of similar
				  payments; or
(iii) a payment based
				  on an ownership, partnership or joint venture share which has been adjusted on
				  the basis of previous relative referrals by recipients of similar
				  payments.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.14 - Transition period

Current through Register Vol. 46, No. 28, July 10, 2024
(a) For
				  90 days including and following the effective date of this Part, persons
				  servicing mortgage loans shall not be in violation of this Part if they comply
				  with this Part that was in effect, by emergency rulemaking, on the effective
				  date of this regulation.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.1 - Mortgage loan originator license and revocation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Section 599-c  of the Banking Law provides that no
				  individual, unless exempt, shall engage in mortgage loan originating without
				  first obtaining and maintaining a license from the Superintendent of Financial
				  Services (formerly the Superintendent of Banks) pursuant to article 12-E of the
				  Banking Law. This regulation implements the superintendent's authority to
				  license mortgage loan originators.
(b) Section 599-n  of the Banking Law authorizes the
				  superintendent to revoke a license to engage in mortgage loan originating. In
				  addition, sections 599-i and 599-n set out the circumstances under which a
				  license will be terminated by operation of law.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.2 - Exemptions

Current through Register Vol. 46, No. 28, July 10, 2024
As provided in section 599-c (3)  of the Banking
					 Law, the following individuals are exempt from the licensing requirements
					 otherwise applicable under article 12-E:
(a)
Registered mortgage loan
				  originators.
A registered mortgage loan originator
					 (
i.e.
an individual who performs the functions of an MLO, who
					 is employed by a depository institution, certain subsidiaries of a depository
					 institution or an institution regulated by the Farm Credit Administration, and
					 who is registered with the NMLS).
(b)
Immediate family loans.
Any individual who offers or negotiates the terms of a
					 residential mortgage loan with or on behalf of an immediate family member of
					 the individual.
(c)
Loans on an individual's residence.
Any individual who offers or negotiates terms of a
					 residential mortgage loan secured by a dwelling or residential real property
					 that served as the individual's own residence.
(d)
Certain attorneys.
A licensed attorney who negotiates the terms of a
					 residential mortgage loan on behalf of a client as an ancillary matter to the
					 attorney's representation of the client, unless the attorney is compensated by
					 a lender, a mortgage broker, or other mortgage loan originator or by any agent
					 of such lender, mortgage broker, or other mortgage loan
					 originator.
(e)
Servicer employees.
Any individual employed by a mortgage loan servicer
					 registered under article 12-D of the Banking Law, who negotiates any
					 modification of an existing residential mortgage loan on behalf of such
					 servicer, and does not otherwise act as a mortgage loan originator, unless
					 licensing is required by a rule, regulation, guideline or interpretation issued
					 by the U.S. Department of Housing and Urban Development under
					 Public Law
					 110-289.
(f)
Manufactured home sellers.
Any individual involved in the sale of manufactured homes,
					 if exempted from licensing by a rule, regulation, guideline or interpretation
					 issued by the U.S. Department of Housing and Urban Development under
					 Public Law
					 110-289.
(g)
Exemptions approved by the
				  superintendent.
The provisions contained in this Part shall not apply to
					 such other individuals as the superintendent may by order exempt for good
					 cause.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.3 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a)
Annual expiration date
with respect to any MLO means December 31st of each year.
(b)
Hour
means a unit of
				  time as defined by the NMLS.
(c)
Immediate family member
means a spouse, child, sibling,
				  parent, grandparent, or grandchild. The term includes stepparents,
				  stepchildren, stepsiblings and adoptive relationships.
(d)
Individual
means a
				  natural person.
(e)
Loan
				  processor or underwriter.
(1)
Loan processor or underwriter
means an individual who performs
				  clerical or support duties as an employee at the direction of, and subject to
				  the supervision and instruction of, an individual licensed, or exempt from
				  licensing, under this Part, provided that such individual does not represent to
				  the public, through advertising or other means of communicating or providing
				  information, including the use of business cards, stationery, brochures, signs,
				  rate lists, or other promotional items, that such individual can or will
				  perform any of the activities of a mortgage loan originator.
(2) For purposes of this subdivision,
clerical or support duties
may include, subsequent to the
				  receipt of an application:
(i) the receipt,
				  collection, distribution, and analysis of information common for the processing
				  or underwriting of a residential mortgage loan; or
(ii) communicating with a consumer to obtain
				  the information necessary for the processing or underwriting of a loan, to the
				  extent that such communication does not include offering or negotiating loan
				  rates or terms, or counseling consumers about residential mortgage loan rates
				  or terms.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.4 - Application procedure for initial license as an MLO

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Effective date
.
Effective July 11, 2009, no individual, unless exempt or
					 permitted in accordance with the rules in subdivision (c) and subdivision (d)
					 of this section, shall engage in mortgage loan originating without first being
					 licensed by the superintendent as an MLO pursuant to article 12-E of the
					 Banking Law. In order to facilitate an orderly transition to licensing and
					 minimize disruption in the mortgage marketplace:
(1) each individual required under article
				  12-E to be licensed as an MLO, other than an individual described in paragraph
				  (2) or (3) of this subdivision, shall be licensed pursuant to this Part not
				  later than July 31, 2010, or such later date approved for mortgage loan
				  originators in this State by the secretary of the U.S. Department of Housing
				  and Urban Development, pursuant to the authority granted under
				  Public Law
				  110-289,
				  section
				  1508(a) and approved by the
				  superintendent;
(2) each individual
				  authorized as a mortgage loan originator under prior law not later than July
				  11, 2009, shall be licensed pursuant to this Part not later than January 1,
				  2011, or such later date approved for mortgage loan originators in this State
				  by the secretary of the U.S. Department of Housing and Urban Development,
				  pursuant to the authority granted under
				  Public Law
				  110-289,
				  section
				  1508(a) and approved by the superintendent;
				  and
(3) notwithstanding paragraphs
				  (1) and (2) of this subdivision, effective July 11, 2009, no individual shall
				  act as a mortgage loan originator if such individual has been convicted of, or
				  pled guilty or
nolo contendere
to, a felony of the types and
				  during the time periods described in section 599-e(1)(b) of article
				  12-E.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.5 - Originating entities permitted to engage or contract with certain mortgage loan originators on an interim basis

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Notwithstanding section
				  420.4(a) 
				  of this Part, with respect to an individual who was engaged in mortgage loan
				  origination activities as of July 11, 2009 and whose application pursuant to
				  the prior version of article 12-E had not been approved, denied or withdrawn by
				  the superintendent prior to such date, an originating entity may permit such
				  individual to engage in mortgage loan originating until the earlier of:
(1) July 31, 2010; or
(2) the date the originating entity receives
				  notice that the superintendent had denied such individual's license application
				  or the license application under this Part has been withdrawn.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.6 - Notice of approval or denial of application; license; and internet listing

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Upon licensing any applicant as an MLO, the superintendent shall:
(1) transmit notice of approval, in such form
				  as the superintendent deems appropriate, to the originating entity that
				  currently employs the MLO, or for which the MLO is an independent
				  contractor;
(2) issue a license
				  attesting to such approval;
(3)
				  transmit one copy of such license to the applicant; and
(4) file another copy of such license in his
				  or her office.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.7 - Inactive status

Current through Register Vol. 46, No. 28, July 10, 2024
The license of an MLO is not effective during any period
					 when the MLO is not employed by or affiliated with an originating entity. When
					 an MLO ceases to be employed by or affiliated with an originating entity, the
					 originating entity shall promptly notify the superintendent of the termination
					 date of such employment or affiliation. The license of such MLO shall be placed
					 in inactive status until the superintendent receives confirmation from an
					 originating entity of the MLO's new employment or affiliation. An MLO shall
					 continue to pay the annual license fee and to take required education courses
					 while in inactive status.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.8 - Suspension and termination of license

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Failure to pay annual license
				  fee.
(1) All MLO licenses shall
				  terminate on the annual expiration date unless the annual license fee is paid
				  prior to or upon the date the payment is due.
(2) In the event such fee is not paid by the
				  due date, the department shall notify the originating entity of the termination
				  of the license.
(3) If such license
				  expires because the annual fee has not been paid by the due date, the license
				  may be reinstated if such fee is paid within 60 days after such due
				  date.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.9 - Renewal of License

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Annual expiration of license.
Each MLO license issued by the superintendent under the
					 provisions of article 12-E of the Banking Law shall terminate annually on the
					 annual expiration date, unless renewed.
(b)
Submission of annual request for
				  renewal
.
An annual request for renewal of a license as an MLO shall
					 be affirmed by the MLO and submitted electronically in such form and in such
					 manner as may be prescribed by the superintendent. Instructions for annual
					 renewal of a license shall be available on the department's website
					 (www.dfs.ny.gov).
(c)
Annual license fee.
A completed annual request for renewal shall be accompanied
					 by an annual license fee, established by the superintendent, pursuant to
					 article 12-E.
(d)
Information and documents required.
The annual request for renewal shall include the
					 information and documents referred to in Supervisory Procedure MB 107 of this
					 Title as well as such additional information and documents as the
					 superintendent deems necessary to determine whether the MLO continues to
					 satisfy the standards set forth in section 599-e  of the Banking Law.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.10 - Surrender of license

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Who may surrender.
With the prior approval of the superintendent, an MLO may
					 surrender a MLO license by delivering to the superintendent written notice that
					 he or she intends to surrender such license. A MLO license may be surrendered
					 only by the licensed individual named on the license. An originating entity
					 that employs an MLO or with which an MLO is affiliated may not surrender the
					 license of such MLO.
(b)
Form of surrender.
The instructions for surrender shall be posted on the
					 department's website (
www.dfs.ny.gov
).
(c)
Civil and criminal
				  liability.
Surrender of an MLO license shall not affect the civil or
					 criminal liability of the MLO or the MLO's originating entity for acts
					 committed prior to such surrender or the obligations to the superintendent of
					 the MLO or the MLO's originating entity for assessments, fees or administrative
					 actions with respect to the periods before such surrender.
(d)
Effect of surrender.
No surrender of an MLO's license shall impair or affect the
					 obligation of any preexisting lawful contract between any originating entity of
					 such MLO and any person.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.11 - Pre-licensing education requirement

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Condition to licenses
.
Each MLO shall, as a condition of initial licensing under
					 article 12-E:
(1) satisfactorily
				  complete requirements as prescribed pursuant to section 599-f of article 12-E;
				  and
(2) submit to the originating
				  entity and the NMLS when directed by the superintendent proof of completion of
				  the required number of hours of education courses.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.12 - Approved education providers and courses

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Approved education courses
.
For purposes of sections
					 420.11
					 and
					 420.14 
					 of this Part and Banking Law sections 500-f and 599-j, pre-licensing education
					 courses and continuing educational courses and the course provider thereof
					 shall have been approved by the NMLS. Pre-licensing and annual educational
					 courses approved by the NMLS for any state shall be accepted towards completion
					 of the educational requirements of New York State, provided that such course,
					 at a minimum, satisfies the requirements of section
					 420.11(b)(1),
					 (2) and (3)  of this Part for pre-licensing
					 education courses, or section
					 420.14(b)(1),
					 (2) and (3)  of this Part for continuing
					 educational courses.
(b)
Variances and extensions
.
Variances to, or extensions of, the pre-license or
					 continuing education requirements prescribed pursuant to article 12-E of the
					 Banking Law may be granted by the superintendent:
(1) for reasons of health certified by an
				  appropriate health care professional;
(2) for extended active duty with the armed
				  forces of the United States; or
(3)
				  for other good cause deemed acceptable by the superintendent, in his or her
				  sole discretion, which may prevent satisfactory or timely completion of such
				  requirements.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.13 - Pre-license testing requirements

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
General requirements
.
In order to meet the written test requirement referred to
					 in article 12-E, an individual shall pass, in accordance with the standards
					 established under section 599-g  of the Banking Law, a qualified
					 written test developed by the NMLS and administered by a test provider approved
					 by the NMLS.
(b)
Qualified test
.
A written test shall not be treated as a qualified written
					 test for purposes of subdivision one of this section unless the test adequately
					 measures the applicant's knowledge and comprehension in appropriate subject
					 areas, including the following:
(1)
				  ethics;
(2) Federal law and
				  regulation pertaining to mortgage origination;
(3) New York State law and regulation
				  pertaining to mortgage origination; and
(4) Federal and New York law and regulation,
				  including instruction on fraud, consumer protection, the nontraditional
				  mortgage marketplace, and fair lending issues.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 420 - Mortgage Loan Originators: Licensing; Education Requirements › Section 420.14 - Continuing educational requirements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Required courses.
In order to meet the annual continuing education
					 requirements referred to in article 12-E, a licensed mortgage loan originator
					 shall:
(1) satisfactorily complete,
				  beginning in the year after such individual is licensed, the educational
				  requirements as prescribed pursuant to section 599-j  of the Banking Law; and
(2) submit to the originating entity and the
				  NMLS when directed by the superintendent proof of completion of the required
				  number of hours of education courses by providing certificates of course
				  completion in the form required by the superintendent.