N.Y. Banking Law § 595: Grounds for suspension or revocation of license, or suspension or deletion of name from mortgage broker roll

§ 595. Grounds for suspension or revocation of license, or suspension

or deletion of name from mortgage broker roll. 1. The superintendent may

revoke any license to engage in the business of a mortgage banker issued

pursuant to this article or delete the name of a mortgage broker from

the roll of mortgage brokers registered pursuant to this article if he

shall find that:

(a) Through a course of conduct, the licensee or registrant has

violated any provisions of this article, or any rule or regulation

promulgated by the superintendent of financial services under and within

the authority of this article or of any other law, rule or regulation of

this state or the federal government;

(b) Any fact or condition exists which, if it had existed at the time

of the original application for such license or registration, would have

warranted the superintendent in refusing originally to issue such

license;

(c) The commission by a licensee or registrant of a crime against the

laws of this state or any other state or of the United States involving

moral turpitude or fraudulent or dishonest dealing, or the entry of a

final judgment against a licensee or registrant in a civil action upon

grounds of fraud, misrepresentation or deceit;

(d) As a part of such determination regarding suspension or

revocation, the superintendent is authorized to require the

fingerprinting of any licensee or registrant. 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.

2. The superintendent may, on good cause shown, or where there is a

substantial risk of public harm, suspend any license or delete the name

of any registrant for a period not exceeding thirty days, pending

investigation. "Good cause", as used in this subdivision, shall exist

only when the licensee or registrant has defaulted or is likely to

default in performing its financial engagements or engages in dishonest

or inequitable practices which may cause substantial harm to the persons

afforded the protection of this article.

3. Except as provided in subdivision two of this section, no license

or registration shall be revoked or suspended except after notice and a

hearing thereon. Any order of suspension issued after notice and a

hearing may include as a condition of reinstatement that the licensee or

registrant make restitution to consumers of fees or other charges which

have been improperly charged or collected as determined by the

superintendent.

4. Any licensee or registrant may surrender any license or certificate

by delivering to the superintendent written notice that it thereby

surrenders such license or certificate, but such surrender shall not

affect such licensee's or registrant's civil or criminal liability for

acts committed prior to such surrender. If such surrender is made after

the issuance by the superintendent of a statement of charges and notice

of hearing, the superintendent may proceed against the licensee or

registrant as if such surrender had not taken place.

4-a. An expiration of registration in accordance with section five

hundred ninety-two-a of this article shall not affect such registrant's

civil or criminal liability for acts committed prior to such

expirations. If such expiration occurs after the issuance by the

superintendent of a statement of charges and notice of hearing, the

superintendent may proceed against the registrant as if such expiration

had not taken place.

5. No revocation, suspension, surrender or expiration of any license

or certificate shall impair or affect the obligation of any preexisting

lawful contract between the licensee or registrant and any person.

6. Every license or registration issued pursuant to this article shall

remain in force and effect until the same shall have expired in

accordance with section five hundred ninety-two-a of this article or

shall have been surrendered, revoked or suspended in accordance with any

other provisions of this article, but the superintendent shall have

authority to reinstate a suspended license or certificate or to issue a

new license or certificate to a licensee or registrant whose license or

registration shall have been revoked if no fact or condition then exists

which would have warranted the superintendent in refusing originally to

issue such license or registration under this article.

7. Whenever the superintendent shall revoke or suspend a license or

registration issued pursuant to this article, he shall forthwith execute

in duplicate a written order to that effect. The superintendent shall

file one copy of such order in the office of the department of financial

services and shall forthwith serve the other copy upon the licensee or

registrant. Any such order may be reviewed in the manner provided by

article seventy-eight of the civil practice law and rules. Such

application for review as authorized by this section must be made within

thirty days from the date of such order of suspension or revocation.

7-a. Whenever a registration shall have expired in accordance with

section five hundred ninety-two-a of this article, the superintendent

shall notify the registrant that the registration has expired and that

the registrant may not engage in the business of soliciting, processing,

placing or negotiating a mortgage loan or offering to solicit, process,

place or negotiate a mortgage loan in this state.

8. Any hearing held pursuant to the provisions of this section shall

be noticed, conducted and administered in compliance with the state

administrative procedure act.