Senate Bill S8204

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

                                  8204

                            I N  S E N A T E

                              June 16, 2010
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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:
  (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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06064-03-0
              

S. 8204                             2

  (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-
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.

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  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.