N.Y. Banking Law § 591: Application for a mortgage banker's license; fees

§ 591. Application for a mortgage banker's license; fees. 1. The

application for a license to be a mortgage banker shall be in writing,

under oath, and in the form prescribed by the superintendent.

Notwithstanding article three of the state technology law or any other

law to the contrary, the superintendent may require that an application

for, or renewal of, a license or any other submission or application for

approval as may be required by this article, be made or executed by

electronic means, including through the National Mortgage Licensing

System and Registry or other entities designated by the National

Mortgage Licensing System and Registry if he or she deems it necessary

to ensure the efficient and effective administration of this article.

The application shall contain the name and complete business and

residential address or addresses of the applicant. If the applicant is a

partnership, association, corporation or other form of business

organization, the application shall contain the names and complete

business and residential addresses of each member, director and

principal officer thereof. Such application shall also include a

description of the activities of the applicant, in such detail and for

such periods, as the superintendent may require; including:

(a) An affirmation of financial solvency noting such capitalization

requirements as may be required by the superintendent, and access to

such credit as may be required by the superintendent;

(b) The fingerprints of the applicant, which may be submitted to the

division of criminal justice services and the federal bureau of

investigation for state and national criminal history record checks;

(c) An affirmation that the applicant, or its members, directors or

principals as may be appropriate, are at least twenty-one years of age;

(d) Information as to the character, fitness, financial and business

responsibility, background and experiences of the applicant.

2. An application shall be accompanied by an investigation fee as

prescribed pursuant to section eighteen-a of this chapter payable to the

superintendent.

3. A licensee may apply for authority to open and maintain a branch

office by giving the superintendent prior notice of its intention in

such form as shall be prescribed by the superintendent. Unless the

superintendent denies the application within thirty days of publication

of notice of receipt of a completed application, the licensee shall be

permitted to open and maintain such branch office. An application to

open and maintain a branch office shall be accompanied by an

investigation fee as prescribed pursuant to section eighteen-a of this

chapter.

4. As a condition for the issuance and retention of a mortgage

banker's license, and subject to such regulations as the superintendent

shall prescribe, applicants for a license shall file with the

superintendent a surety bond in form satisfactory to him or her issued

by a bonding company or insurance company authorized to do business in

this state. The principal amount of such bond shall be in an amount and

form prescribed by regulations of the superintendent. Such regulations

shall provide for a varying bond amount based upon a licensee's volume

of business and any other relevant factors as determined by the

superintendent, but in no case shall such bond be less than fifty

thousand dollars nor more than five hundred thousand dollars; provided,

however, that if the superintendent determines, in his or her sole

discretion, that a licensee has engaged in a pattern of conduct

resulting in bona fide consumer complaints of misconduct, the

superintendent may require such licensee to post a surety bond, or keep

on deposit as provided in this subdivision, twice the amount of such

bond or deposit as is required consistent with such regulations. In lieu

of such bond, an applicant may keep on deposit with such banks, savings

banks, savings and loan associations, or trust companies or private

bankers or national banks or federal savings banks or federal savings

and loan associations in the state of New York as such applicant may

designate and the superintendent may approve, interest-bearing stocks

and bonds, notes, debentures, or other obligations of the United States

or any agency or instrumentality thereof, or guaranteed by the United

States, or of this state, or of a city, county, town, village, school

district, or instrumentality of this state or guaranteed by this state,

or dollar deposits, or such other assets or letters of credit as the

superintendent shall by rule or regulation permit. In the event of the

insolvency, liquidation or bankruptcy of such licensee, or the surrender

or revocation of such mortgage banker's license, or where the

superintendent takes possession of such licensee, the proceeds of each

bond or deposit shall constitute a trust fund to be used exclusively to

reimburse consumer fees or other charges determined by the

superintendent to be improperly charged or collected and to pay past due

department of financial services examination costs and assessments

charged to the licensee, unpaid penalties, or other obligations of the

licensee. The superintendent is authorized to promulgate such

regulations as are necessary and desirable to define and implement the

provisions of this subdivision. Persons and entities licensed prior to

the effective date of any regulations of the superintendent prescribing

the bonding requirement authorized by this subdivision shall file such

bond or establish such deposit within six months of the effective date

of such regulations.