N.Y. Banking Law § 592: Application process to receive license to engage in the business of mortgage banking

§ 592. Application process to receive license to engage in the

business of mortgage banking. 1. Upon the filing of an application for a

license, 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 command the confidence

of the community and to warrant belief that the business will be

operated honestly, fairly, and efficiently within the purpose of this

article, the superintendent shall thereupon issue a license in duplicate

to engage in the business of making mortgage loans described in section

five hundred ninety of this article in accordance with provisions of

this article. If the superintendent shall not so find, the

superintendent shall not issue such license, and the superintendent

shall notify the applicant of the denial. The superintendent shall

transmit one copy of such license to the applicant and file another in

the office of the department of financial services. Upon receipt of such

license, a mortgage banker shall be authorized to engage in the business

of making mortgage loans in accordance with the provisions of this

article. Such license shall remain in full force and effect until it is

surrendered by the licensee or revoked or suspended as hereinafter

provided. The superintendent shall approve or deny every application for

license hereunder within ninety days from the filing of a completed

application provided, however, that failure to act within the prescribed

period shall not be deemed approval of any such application.

2. The superintendent may refuse to issue a license pursuant to this

article if he or she shall find that the applicant, or any person who is

a director, officer, partner, agent, employee, substantial stockholder

of the applicant, consultant or person having a relationship with the

applicant similar to a consultant, (a) has been convicted of a crime

involving an activity which is a felony under this chapter or under

article one hundred fifty-five, one hundred seventy, one hundred

seventy-five, one hundred seventy-six, one hundred eighty, one hundred

eighty-five, one hundred eighty-seven, one hundred ninety, two hundred,

two hundred ten or four hundred seventy of the penal law or any

comparable felony under the laws of any other state or the United

States, provided that such crime would be a felony if committed and

prosecuted under the laws of this state or (b) has had a license or

registration revoked by the superintendent or (c) has been a director,

partner, or substantial stockholder of an entity which has had a license

or registration revoked by the superintendent or (d) has been an agent,

employee or officer of an entity, or a consultant to, or person having

had a similar relationship with, any entity which has had a license or

registration revoked by the superintendent where such person shall have

been found by the superintendent to bear responsibility in connection

with the revocation. The term "substantial stockholder", as used in this

subdivision, shall be deemed to refer to a person owning or controlling

directly or indirectly ten per centum or more of the total outstanding

stock of a corporation.