N.Y. Banking Law § 599-e: Issuance of a license

§ 599-e. Issuance of a license. 1. Findings. Notwithstanding any other

law, the superintendent shall not issue a mortgage loan origination

license unless he or she makes, at a minimum, the following findings:

(a) No license revocation. That the applicant has never had a mortgage

loan originator authorization, license or license equivalent revoked in

any governmental jurisdiction, except that a subsequent formal vacation

of such revocation shall not be deemed a revocation;

(b) No felony conviction. That the applicant has not been convicted

of, or pled guilty or nolo contendere to, a felony in a domestic,

foreign, or military court:

(i) During the seven-year period preceding the date of the application

for licensing; or

(ii) At any time preceding such date of application, if such felony

involved an act of fraud, dishonesty, or a breach of trust, or money

laundering, provided that for purposes of this subdivision, the

superintendent may, in his or her discretion, disregard a conviction

where the felon has been pardoned;

(c) Character and fitness. That the applicant has demonstrated

financial responsibility, character, and general fitness such as to

command the confidence of the community and to warrant a determination

that the MLO will operate honestly, fairly, and efficiently within the

purposes of this article;

(d) Pre-licensing education. That the applicant has completed the

pre-licensing education requirement described in section five hundred

ninety-nine-f of this article;

(e) Written test. That the applicant has passed a written test that

meets the test requirement described in section five hundred

ninety-nine-g of this article;

(f) Surety bond. That the applicant has met the surety bond

requirement described in section five hundred ninety-nine-k of this

article; and

(g) Affiliation. Unless the superintendent shall have waived the

affiliation requirement pursuant to regulations adopted by the

superintendent, that the applicant is employed by, or is an independent

contractor of (i) an originating entity, (ii) solely in the case of a

mortgage loan originator engaged in the origination of residential

mortgage loans on manufactured homes, an entity licensed under article

nine or eleven-B of this chapter, or (iii) in the case of a mortgage

loan originator engaged in mortgage loan servicing and employed by a

mortgage loan servicer, an entity registered as a mortgage loan servicer

under article twelve-D of this chapter or exempt from registration under

such article. A mortgage loan originator may not be simultaneously

employed or affiliated with more than one originating entity.

2. Disqualifying associations. The superintendent may refuse to issue

a license pursuant to this article if he or she shall find that the

applicant (a) has been a director, partner, or substantial stockholder

of an originating entity which has had a registration or license revoked

by the superintendent or a regulator of another state that regulates

such originating entity, or (b) has been an employee, officer or agent

of, or a consultant to, an originating entity that has had a

registration or license revoked by the superintendent or a regulator of

another state that regulates such originating entity where such person

shall have been found by the superintendent or by such regulator of

another state to bear responsibility for the acts resulting in such

revocation. For the purposes of this subdivision, a person shall be

deemed to have been convicted of a crime if such person shall have pled

guilty to a charge thereof before a court or magistrate, or shall have

been found guilty thereof by the decision or judgment of a court or

magistrate or by the verdict of a jury, irrespective of the

pronouncement of sentence or the suspension thereof.

3. Issuance of a license. The superintendent, after making the

findings required by subdivision one of this section shall thereupon

issue a license to the applicant as mortgage loan originator. The

superintendent shall transmit one copy of such certificate to the

applicant and file another in his or her office, and shall transmit

notice of approval of such application, in such form as the

superintendent deems appropriate, to the originating entity for which

the applicant is providing services. Such license shall be deemed to

terminate at the end of the annual license period, unless such license

is renewed in accordance with section five hundred ninety-nine-i of this

article.