N.Y. Banking Law § 599-c: License required

§ 599-c. License required. 1. License required. No individual, unless

specifically exempt pursuant to subdivision three of this section shall

engage in the business of a mortgage loan originator with respect to any

dwelling or residential real property in this state without first

obtaining and maintaining annually a license under this article. Each

licensed mortgage loan originator must register with and maintain a

valid unique identifier issued by the NMLSR.

2. Effective date. In order to facilitate an orderly transition to

licensing and minimize disruption in the mortgage marketplace:

(a) Each individual, other than an individual described in paragraph

(b) of this subdivision, shall be licensed pursuant to subdivision one

of this section not later than July thirty-first, two thousand ten, or

such later date approved for mortgage loan originators in this state by

the Secretary of the U.S. Department of Housing and Urban Development,

pursuant to the authority granted under Public Law 110-289, Section

1508(a) and approved by the superintendent;

(b) Each individual authorized as a mortgage loan originator under

prior law not later than July thirty-first, two thousand nine, shall be

licensed pursuant to subdivision one of this section not later than

January first, two thousand eleven, or such later date approved for

mortgage loan originators in this state by the Secretary of the U.S.

Department of Housing and Urban Development, pursuant to the authority

granted under Public Law 110-289, Section 1508(a) and approved by the

superintendent.

(c) Notwithstanding paragraphs (a) and (b) of this subdivision, after

the effective date of this article, no individual shall act as a

mortgage loan originator if such individual has been convicted of, or

pled guilty or nolo contendere to, a felony of the types and during the

time periods described in paragraph (b) of subdivision one of section

five hundred ninety-nine-e of this article, in a domestic, foreign or

military court, unless expressly authorized to act as a mortgage loan

originator by the superintendent.

3. Exemption from licensing requirements. The following persons are

exempt from the licensing requirements otherwise applicable under this

article:

(a) Registered mortgage loan originators, when acting for an entity

described in subparagraphs (i), (ii) and (iii) of paragraph (a) of

subdivision thirteen of section five hundred ninety-nine-b of this

article.

(b) Any individual who offers or negotiates the terms of a residential

mortgage loan with or on behalf of an immediate family member of the

individual.

(c) Any individual who offers or negotiates terms of a residential

mortgage loan secured by a dwelling or residential real property that

served as the individual's own residence.

(d) A licensed attorney who negotiates the terms of a residential

mortgage loan on behalf of a client as an ancillary matter to the

attorney's representation of the client, unless the attorney is

compensated by a lender, a mortgage broker, or other mortgage loan

originator or by any agent of such lender, mortgage broker, or other

mortgage loan originator.

(e) Any individual employed by a mortgage loan servicer registered

under article twelve-D of this chapter, who negotiates any modification

of an existing residential mortgage loan on behalf of such servicer, and

does not otherwise act as a mortgage loan originator, unless licensing

is required by a rule, regulation, guideline or interpretation issued by

the U.S. Department of Housing and Urban Development under Public Law

110-289.

(f) Any individual involved in the sale of manufactured homes if

exempted from licensing by a rule, regulation, guideline or

interpretation issued by the U.S. Department of Housing and Urban

Development under Public Law 110-289.

4. Independent contractor loan processors or underwriters. A loan

processor or underwriter who is an independent contractor of an

originating entity may not engage in residential mortgage loan

origination activities unless such independent contractor loan processor

or underwriter obtains and maintains a license under this article. Each

independent contractor loan processor or underwriter licensed as a

mortgage loan originator must have and maintain a valid unique

identifier issued by the NMLSR.