NY State Assembly Bill 2009-A3903

Assembly Bill A3903

2009-2010 Legislative Session

Requires all mortgage brokers to be licensed, establishes certain education requirements, and establishes a mortgage broker licensing exam

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 14, 2010	print number 3903a
Jun 14, 2010	amend and recommit to banks
Jan 06, 2010	referred to banks
Jan 29, 2009	referred to banks

Bill Amendments

Original

A (Active)

2009-A3903 - Details

Current Committee:: Assembly Banks
Law Section:: Banking Law
Laws Affected:: Amd §§590 & 592-a, add §592-b, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A2225
2013-2014: A2685

2009-A3903 - Summary

Requires all mortgage brokers to be licensed, establishes certain educational requirements, and directs and authorizes the superintendent to establish a mortgage broker licensing exam.

2009-A3903 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3903

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2009
                               ___________

Introduced by M. of A. BENJAMIN -- read once and referred to the Commit-
  tee on Banks

AN  ACT  to amend the banking law, in relation to requiring all mortgage
  brokers to be licensed, establishes certain  educational  requirements
  through  rules  and  regulations promulgated by the banking board, and
  directs and authorizes the  superintendent  to  establish  a  mortgage
  broker licensing exam

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of subdivision 2 and subdivision 3 of section
590 of the banking law, as added by chapter 571 of the laws of 1986, are
amended to read as follows:
  (a) No person, partnership, association, corporation or  other  entity
shall  engage in the business of making [five or more] mortgage loans in
any one calendar year without first obtaining a license from the  super-
intendent  in  accordance  with the licensing procedure provided in this
article and such regulations as may be promulgated by the banking  board
or  prescribed  by the superintendent.  The licensing provisions of this
subdivision shall not apply to any exempt organization nor to any entity
or entities which shall  be  exempted  in  accordance  with  regulations
promulgated by the banking board hereunder.
  3.  Banking  board.  In  addition  to  such powers as may otherwise be
prescribed by this chapter, the banking board is hereby  authorized  and
empowered to promulgate regulations consistent with the purposes of this
article, including, but not limited to:
  (a)  Such  rules  and regulations in connection with the activities of
mortgage brokers, mortgage bankers and exempt organizations  as  may  be
necessary and appropriate for the protection of consumers in this state;
  (b)  Such rules and regulations as may be necessary and appropriate to
define improper or fraudulent business practices in connection with  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06064-01-9

A. 3903                             2

activities  of  mortgage  brokers, mortgage bankers and exempt organiza-
tions in making mortgage loans;
  (c)  Such  rules  and regulations as may define the terms used in this
article and as may be necessary and appropriate to interpret and  imple-
ment the provisions of this article; [and]
  (d)  SUCH  RULES  AND  REGULATIONS  ESTABLISHING  MINIMUM  EDUCATIONAL
REQUIREMENTS FOR ALL MORTGAGE BROKERS; AND
  (E) Such rules and regulations as may be necessary for the enforcement
of this article.
  The banking board is hereby authorized  and  empowered  to  make  such
specific  rulings, demands and findings as it may deem necessary for the
proper conduct of the mortgage lending industry.
  S 2. Paragraph (a) of subdivision 2 and subdivision 3 of  section  590
of  the  banking law, as amended by chapter 472 of the laws of 2008, are
amended to read as follows:
  (a) No person, partnership, association, corporation or  other  entity
shall  engage in the business of making [five or more] mortgage loans in
any one calendar year without first obtaining a license from the  super-
intendent  in  accordance  with the licensing procedure provided in this
article and such regulations as may be promulgated by the banking  board
or  prescribed  by the superintendent.  The licensing provisions of this
subdivision shall not apply to any exempt organization nor to any entity
or entities which shall  be  exempted  in  accordance  with  regulations
promulgated by the banking board hereunder.
  3.  Rules and regulations. In addition to such powers as may otherwise
be prescribed by this chapter, the banking board  is  hereby  authorized
and  empowered  to  promulgate  such rules and regulations as may in the
judgement of the banking board be consistent with the purposes  of  this
article,  or  appropriate for the effective administration of this arti-
cle, including, but not limited to:
  (a) Such rules and regulations in connection with  the  activities  of
mortgage  brokers,  mortgage bankers, mortgage loan servicers and exempt
organizations as may be necessary and appropriate for the protection  of
consumers in this state;
  (b)  Such rules and regulations as may be necessary and appropriate to
define improper or fraudulent business practices in connection with  the
activities  of  mortgage brokers, mortgage bankers, mortgage loan servi-
cers and exempt organizations in making mortgage loans;
  (c) Such rules and regulations as may define the terms  used  in  this
article  and as may be necessary and appropriate to interpret and imple-
ment the provisions of this article; [and]
  (d)  SUCH  RULES  AND  REGULATIONS  ESTABLISHING  MINIMUM  EDUCATIONAL
REQUIREMENTS FOR ALL MORTGAGE BROKERS; AND
  (E) Such rules and regulations as may be necessary for the enforcement
of this article.
  The  banking  board  is  hereby  authorized and empowered to make such
specific rulings, demands and findings as it may deem necessary for  the
proper conduct of the mortgage lending industry.
  S  3. Subdivision 1 of section 592-a of the banking law, as amended by
section 18 of part D1 of chapter 109 of the laws of 2006, is amended  to
read as follows:
  1.  Upon  the filing of an application for registration, if the super-
intendent shall find that the APPLICANT HAS MET ALL EDUCATIONAL REQUIRE-
MENTS ESTABLISHED BY THE BANKING BOARD, HAS  FURNISHED  PROOF  THAT  THE
APPLICANT  HAS  PASSED  THE  LICENSING  EXAMINATION FOR MORTGAGE BROKERS
ESTABLISHED BY THIS ARTICLE,  AND  THAT  THE  financial  responsibility,

A. 3903                             3

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  effi-
ciently  within  the  purpose  of this article, the superintendent shall
thereupon register the applicant as a mortgage broker on  a  roll  main-
tained  for  that purpose at the banking department, and issue a certif-
icate attesting to such registration in duplicate. If the superintendent
shall not so find, the superintendent shall not register such applicant,
and shall notify the applicant of the denial. The  superintendent  shall
transmit  one copy of such certificate to the applicant and file another
in the office of the banking department. Upon receipt  of  such  certif-
icate a mortgage broker shall be authorized to engage in the business of
placing,  processing  and  negotiating mortgage loans. Such registration
shall remain in full force and effect until it  is  surrendered  by  the
licensee  or  revoked  or suspended as hereinafter provided, except that
such registration, notwithstanding any provisions of subdivision five of
section seventeen of this chapter to the contrary, shall expire upon the
registrant's failure to pay the required assessment charged pursuant  to
such  section seventeen thirty days after the date or dates such payment
or payments are due. If the registrant fails to pay such charged assess-
ment by the date or dates such payment or payments  are  due,  then  the
registrant  shall  be  required  to  pay, in addition, a late fee in the
amount of one hundred dollars. Such registration shall be reinstated  if
the registrant pays such assessment charged and any applicable late fees
and/or interest within sixty days of such expiration. The superintendent
shall approve or deny every application for registration hereunder with-
in  ninety  days  from  the  filing  of a complete application provided,
however, that failure to act within the prescribed period shall  not  be
deemed approval of any such application.
  S  4. The banking law is amended by adding a new section 592-b to read
as follows:
  S 592-B. MORTGAGE BROKER LICENSING EXAMINATION. THE SUPERINTENDENT  IS
HEREBY  DIRECTED AND AUTHORIZED TO ESTABLISH A MORTGAGE BROKER LICENSING
EXAMINATION AND SHALL PROMULGATE RULES AND  REGULATIONS  REGARDING  SUCH
EXAMINATION,  INCLUDING  BUT NOT LIMITED TO THE TIME, DATE AND MANNER IN
WHICH SUCH EXAMINATION SHALL BE GIVEN.
  S 5. This act shall take effect immediately;  provided,  however  that
section one of this act shall be deemed repealed upon the effective date
of  chapter  472 of the laws of 2008, when upon such date section two of
this act shall take effect.

2009-A3903A (ACTIVE) - Details

Current Committee:: Assembly Banks
Law Section:: Banking Law
Laws Affected:: Amd §§590 & 592-a, add §592-b, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A2225
2013-2014: A2685

2009-A3903A (ACTIVE) - Summary

Requires all mortgage brokers to be licensed, establishes certain educational requirements, and directs and authorizes the superintendent to establish a mortgage broker licensing exam.

2009-A3903A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3903--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2009
                               ___________

Introduced by M. of A. BENJAMIN -- read once and referred to the Commit-
  tee  on  Banks  -- recommitted to the Committee on Banks in accordance
  with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to amend the banking law, in relation to requiring all mortgage
  brokers to be licensed, establishes certain  educational  requirements
  through  rules  and  regulations promulgated by the banking board, and
  directs and authorizes the  superintendent  to  establish  a  mortgage
  broker licensing exam

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of subdivision 2 and subdivision 3 of section
590 of the banking law, as amended by chapter 472 of the laws  of  2008,
paragraph  (c)  of  subdivision 3 as added and paragraphs (d) and (e) of
subdivision 3 as relettered by chapter 507 of  the  laws  of  2009,  are
amended to read as follows:
  (a)  No  person, partnership, association, corporation or other entity
shall engage in the business of making [five or more] mortgage loans  in
any  one calendar year without first obtaining a license from the super-
intendent in accordance with the licensing procedure  provided  in  this
article  and such regulations as may be promulgated by the banking board
or prescribed by the superintendent.  The licensing provisions  of  this
subdivision shall not apply to any exempt organization nor to any entity
or  entities  which  shall  be  exempted  in accordance with regulations
promulgated by the banking board hereunder.
  3. Rules and regulations. In addition to such powers as may  otherwise
be  prescribed  by  this chapter, the banking board is hereby authorized
and empowered to promulgate such rules and regulations  as  may  in  the
judgement  of  the banking board be consistent with the purposes of this
article, or appropriate for the effective administration of  this  arti-
cle, including, but not limited to:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06064-02-0

A. 3903--A                          2

  (a)  Such  rules  and regulations in connection with the activities of
mortgage brokers, mortgage bankers, mortgage loan servicers  and  exempt
organizations  as may be necessary and appropriate for the protection of
consumers in this state;
  (b)  Such rules and regulations as may be necessary and appropriate to
define improper or fraudulent business practices in connection with  the
activities  of  mortgage brokers, mortgage bankers, mortgage loan servi-
cers and exempt organizations in making mortgage loans;
  (c) Such rules and regulations under this article regarding the origi-
nation, sale or servicing of manufactured home loans as may be necessary
and appropriate for the protection of consumers;
  (d) Such rules and regulations [as may define the terms used  in  this
article  and as may be necessary and appropriate to interpret and imple-
ment the provisions of this article]  ESTABLISHING  MINIMUM  EDUCATIONAL
REQUIREMENTS FOR ALL MORTGAGE BROKERS; and
  (e) Such rules and regulations as may be necessary for the enforcement
of this article.
  The  banking  board  is  hereby  authorized and empowered to make such
specific rulings, demands and findings as it may deem necessary for  the
proper conduct of the mortgage lending industry.
  S  2. Subdivision 1 of section 592-a of the banking law, as amended by
section 18 of part D1 of chapter 109 of the laws of 2006, is amended  to
read as follows:
  1.  Upon  the filing of an application for registration, if the super-
intendent shall find that the APPLICANT HAS MET ALL EDUCATIONAL REQUIRE-
MENTS ESTABLISHED BY THE BANKING BOARD, HAS  FURNISHED  PROOF  THAT  THE
APPLICANT  HAS  PASSED  THE  LICENSING  EXAMINATION FOR MORTGAGE BROKERS
ESTABLISHED BY THIS ARTICLE,  AND  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 effi-
ciently within the purpose of this  article,  the  superintendent  shall
thereupon  register  the  applicant as a mortgage broker on a roll main-
tained for that purpose at the banking department, and issue  a  certif-
icate attesting to such registration in duplicate. If the superintendent
shall not so find, the superintendent shall not register such applicant,
and  shall  notify the applicant of the denial. The superintendent shall
transmit one copy of such certificate to the applicant and file  another
in  the  office  of the banking department. Upon receipt of such certif-
icate a mortgage broker shall be authorized to engage in the business of
placing, processing and negotiating mortgage  loans.  Such  registration
shall  remain  in  full  force and effect until it is surrendered by the
licensee or revoked or suspended as hereinafter  provided,  except  that
such registration, notwithstanding any provisions of subdivision five of
section seventeen of this chapter to the contrary, shall expire upon the
registrant's  failure to pay the required assessment charged pursuant to
such section seventeen thirty days after the date or dates such  payment
or payments are due. If the registrant fails to pay such charged assess-
ment  by  the  date  or dates such payment or payments are due, then the
registrant shall be required to pay, in addition,  a  late  fee  in  the
amount  of one hundred dollars. Such registration shall be reinstated if
the registrant pays such assessment charged and any applicable late fees
and/or interest within sixty days of such expiration. The superintendent
shall approve or deny every application for registration hereunder with-

A. 3903--A                          3

in ninety days from the  filing  of  a  complete  application  provided,
however,  that  failure to act within the prescribed period shall not be
deemed approval of any such application.
  S  3. The banking law is amended by adding a new section 592-b to read
as follows:
  S 592-B. MORTGAGE BROKER LICENSING EXAMINATION. THE SUPERINTENDENT  IS
HEREBY  DIRECTED AND AUTHORIZED TO ESTABLISH A MORTGAGE BROKER LICENSING
EXAMINATION AND SHALL PROMULGATE RULES AND  REGULATIONS  REGARDING  SUCH
EXAMINATION,  INCLUDING  BUT NOT LIMITED TO THE TIME, DATE AND MANNER IN
WHICH SUCH EXAMINATION SHALL BE GIVEN.
  S 4. This act shall take effect immediately.

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