N.Y. Banking Law § 591-a: Application to register as a mortgage broker; fees

§ 591-a. Application to register as a mortgage broker; fees. 1. An

application to become registered as a mortgage broker shall be in

writing, under oath, in such form as shall be prescribed by the

superintendent, and shall be accompanied by the fingerprints of the

applicant. 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. Such fingerprints shall be submitted to the division of

criminal justice services for a state criminal history record check, as

defined in subdivision one of section three thousand thirty-five of the

education law, and may be submitted to the federal bureau of

investigation for a national criminal history record check. Such

application shall contain the name and complete business and residential

address or addresses of the applicant, or if the applicant is a

partnership, association, corporation or other form of business

organization, the names and complete business and residential addresses

of each member, director and principal officer thereof. Such application

shall also include an affirmation of financial solvency noting such

capitalization requirements as may be required by the superintendent,

and such descriptions of the business activities, financial

responsibility, educational background and general character and fitness

of the applicant as may be required by the superintendent. Such

application shall be accompanied by an investigation fee payable to the

superintendent as prescribed pursuant to section eighteen-a of this

chapter.

2. A registrant 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 registrant 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.

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

broker's registration, and subject to such regulations as the

superintendent shall prescribe, applicants for a registration shall file

with the superintendent a surety bond or make a deposit, as described in

subdivision four of section five hundred ninety-one of this article, in

an amount and form prescribed by regulations of the superintendent. Such

regulations shall provide for a varying bond amount based upon a

registrant's volume of business and any other relevant factors as

determined by the superintendent, but in no case shall such bond be less

than ten thousand dollars nor more than one hundred thousand dollars;

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

sole discretion, that a registrant has engaged in a pattern of conduct

resulting in bona fide consumer complaints of misconduct, the

superintendent may require such registrant 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

the event of the insolvency, liquidation or bankruptcy of such

registrant, or the surrender or revocation of such mortgage broker's

registration, or where the superintendent takes possession of such

registrant, 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 registrant, unpaid

penalties, or other obligations of the registrant. 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 registered prior to the effective date of any regulations of

the superintendent implementing or modifying 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.