N.Y. Banking Law § 28-bb: Credit needs of local communities; mortgage bankers

§ 28-bb. Credit needs of local communities; mortgage bankers. 1. When

taking any action on an application made by a mortgage banker licensed

pursuant to section five hundred ninety-one of this chapter for a change

in control under section five hundred ninety-four-b of this chapter, or

on any other application or notice to which the superintendent of

financial services shall by rule or regulation make applicable the

provisions of this section, the superintendent shall take into account,

among other factors, an assessment, in writing, of the record of

performance of the mortgage banker in helping to meet the credit needs

of its entire community, including low and moderate income

neighborhoods, and consistent with safe and sound operation of the

mortgage banker. Such assessment and any written communications from the

department of financial services to a mortgage banker relating to such

assessment shall be made available to the public upon request, provided

that nothing contained in this subdivision shall be deemed to alter,

amend or affect the provisions of subdivision ten of section thirty-six

of this article. In making such assessment of a mortgage banker, the

superintendent shall review all reports and documents filed by the

mortgage banker pursuant to section five hundred ninety-seven of this

chapter. In addition, the superintendent shall consider the following

factors in assessing a mortgage banker's record of performance, and

include in its written assessment required by this section the record of

performance of such mortgage banker as to each of the following factors:

(a) Activities conducted by the mortgage banker to ascertain credit

needs of its community, including the extent of the mortgage banker's

efforts to communicate with members of its community regarding the

services being provided by the mortgage banker;

(b) The extent of the mortgage banker's marketing and special programs

to make members of the community aware of the services offered by the

mortgage banker;

(c) The extent of the mortgage banker's participation in community

outreach, community development or redevelopment, and educational

programs;

(d) The extent of participation by the mortgage banker's board of

directors, advisory committee, managing members or executive management

or equivalent body or person, in formulating the mortgage banker's

policies and reviewing its performance with respect to the purposes of

this section;

(e) Any practices intended to discourage application for types of

credit offered by the mortgage banker;

(f) The geographic distribution of the mortgage banker's credit

extensions, credit applications, and credit denials;

(g) Evidence of prohibited discriminatory or other illegal credit

practices;

(h) The mortgage banker's record of opening and closing offices and

providing services at offices;

(i) The mortgage banker's participation in governmentally-insured,

guaranteed or subsidized loan programs for housing;

(j) The mortgage banker's ability to meet various community credit

needs based on its financial condition, size, legal impediments, local

economic condition and other factors; and

(k) Other factors that, in the judgment of the superintendent,

reasonably bear upon the extent to which a mortgage banker is helping to

meet the credit needs of its entire community.

2. In assessing the record of performance of a mortgage banker

pursuant to the provisions of subdivision one of this section, the

superintendent may, where he or she deems it appropriate, provide for

public hearings when an objection to the mortgage banker's application

or notice has been submitted.

3. An assessment of a mortgage banker's record of performance under

subdivision one of this section may be the basis for denying an

application under the provisions of this section.

4. Notwithstanding any other provision of this chapter or other law to

the contrary, the term mortgage banker when used in this section shall

mean and include mortgage bankers licensed pursuant to section five

hundred ninety-one of this chapter that originate a minimum number of

loans annually, such number to be set by regulation promulgated by the

superintendent.

5. The superintendent is hereby authorized and empowered to promulgate

rules and regulations effectuating the provisions of this section,

including any rules and regulations providing that the assessment of

mortgage bankers shall be made on a graduated numerical basis.

6. If any clause, sentence, paragraph, subdivision or part of this

section or the application thereof to any person, firm, or corporation,

or circumstance shall be adjudged by any court of competent jurisdiction

to be invalid or unconstitutional, such judgment shall not affect,

impair or invalidate the remainder thereof, but shall be confined (i) in

its operation to the clause, sentence, paragraph, subdivision, or part

of this section or (ii) in its application to the person, firm or

corporation, or circumstance, directly involved in the controversy in

which such judgment shall have been rendered.