New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 410 - Mortgage Bankers: Licensing Requirements; Mortgage Brokers: Registration Requirements; Branch Applications: Notifications: Books And Records; Annual Reports; Surety Bonds; And Consultants Of Licensed Mortgage Bankers And Registered Mortgage Brokers › Section 410.7 - Books and records; annual reports

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each mortgage banker and mortgage broker
				  shall keep its books and records in a manner that will allow the superintendent
				  to determine whether the mortgage banker or mortgage broker is complying with
				  article 12-D of the Banking Law. Every mortgage banker and mortgage broker
				  shall preserve its books and records for inspection for a minimum of three
				  years. Every mortgage banker and mortgage broker shall establish and maintain
				  the following:
(1) All rejected mortgage
				  application files which shall contain all documentation relating to the
				  applications. A list of rejected files shall be maintained and the files must
				  be readily available upon request.
(2) A separate file for all written consumer
				  complaints to contain the original complaint, documentation of actions taken
				  and any related correspondence.
(3)
				  A correspondence folder to contain all correspondence to and from the Banking
				  Department, or copies thereof.
(4)
				  A centralized application log for the principal office and all branch offices,
				  updated daily, based on the date of receipt of the application, containing the
				  following information:
(i) date application
				  received;
(ii) name and address of
				  applicant;
(iii) file number
				  assigned;
(iv) address of
				  property;
(v) source of
				  application--if the source is a referral, the entry must include the name,
				  address and a description of the entity making the referral. This information
				  may be contained in the application log or set forth by file number or
				  applicant name in one or more accounting records of sufficient
				  detail;
(vi) all other fees
				  collected and/or distributed prior to closing--include the amount of the fee,
				  date paid, purpose (e.g., appraisal, credit report, etc.), and the name,
				  address and description of the entity to whom each fee is paid and/or from whom
				  a fee is received. This information may be contained in the application log or
				  set forth by file number or applicant name in one or more accounting records of
				  sufficient detail; and
(vii) final
				  disposition of the application and the date thereof. Every mortgage broker
				  shall also establish and maintain items listed in this subdivision. In
				  addition, the application log shall also contain the entity with which the loan
				  was placed and the amount of fees received for mortgage brokerage service
				  directly from the applicant and all other sources (e.g., lenders, other
				  brokers, etc.). Said fees shall be listed separately for each source. This
				  information may be contained in the application log or set forth by file number
				  or applicant name in one or more accounting records of sufficient
				  detail.
(5) Branches
				  must report their activity to the principal office on a daily basis not later
				  than noon of the fifth business day after the activity takes place.