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This entry was published on 2014-09-22
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Application for a mortgage banker's license; fees
§ 591. Application for a mortgage banker's license; fees. 1. The
application for a license to be a mortgage banker shall be in writing,
under oath, and in the form prescribed by the superintendent.
Notwithstanding article three of the state technology law or any other
law to the contrary, the superintendent may require that an application
for, or renewal of, a license or any other submission or application for
approval as may be required by this article, be made or executed by
electronic means, including through the National Mortgage Licensing
System and Registry or other entities designated by the National
Mortgage Licensing System and Registry if he or she deems it necessary
to ensure the efficient and effective administration of this article.
The application shall contain the name and complete business and
residential address or addresses of the applicant. If the applicant is a
partnership, association, corporation or other form of business
organization, the application shall contain the names and complete
business and residential addresses of each member, director and
principal officer thereof. Such application shall also include a
description of the activities of the applicant, in such detail and for
such periods, as the superintendent may require; including:

(a) An affirmation of financial solvency noting such capitalization
requirements as may be required by the superintendent, and access to
such credit as may be required by the superintendent;

(b) The fingerprints of the applicant, which may be submitted to the
division of criminal justice services and the federal bureau of
investigation for state and national criminal history record checks;

(c) An affirmation that the applicant, or its members, directors or
principals as may be appropriate, are at least twenty-one years of age;

(d) Information as to the character, fitness, financial and business
responsibility, background and experiences of the applicant.

2. An application shall be accompanied by an investigation fee as
prescribed pursuant to section eighteen-a of this chapter payable to the

3. A licensee may apply for authority to open and maintain a branch
office by giving the superintendent prior notice of its intention in
such form as shall be prescribed by the superintendent. Unless the
superintendent denies the application within thirty days of publication
of notice of receipt of a completed application, the licensee shall be
permitted to open and maintain such branch office. An application to
open and maintain a branch office shall be accompanied by an
investigation fee as prescribed pursuant to section eighteen-a of this

4. As a condition for the issuance and retention of a mortgage
banker's license, and subject to such regulations as the superintendent
shall prescribe, applicants for a license shall file with the
superintendent a surety bond in form satisfactory to him or her issued
by a bonding company or insurance company authorized to do business in
this state. The principal amount of such bond shall be in an amount and
form prescribed by regulations of the superintendent. Such regulations
shall provide for a varying bond amount based upon a licensee's volume
of business and any other relevant factors as determined by the
superintendent, but in no case shall such bond be less than fifty
thousand dollars nor more than five hundred thousand dollars; provided,
however, that if the superintendent determines, in his or her sole
discretion, that a licensee has engaged in a pattern of conduct
resulting in bona fide consumer complaints of misconduct, the
superintendent may require such licensee to post a surety bond, or keep
on deposit as provided in this subdivision, twice the amount of such
bond or deposit as is required consistent with such regulations. In lieu
of such bond, an applicant may keep on deposit with such banks, savings
banks, savings and loan associations, or trust companies or private
bankers or national banks or federal savings banks or federal savings
and loan associations in the state of New York as such applicant may
designate and the superintendent may approve, interest-bearing stocks
and bonds, notes, debentures, or other obligations of the United States
or any agency or instrumentality thereof, or guaranteed by the United
States, or of this state, or of a city, county, town, village, school
district, or instrumentality of this state or guaranteed by this state,
or dollar deposits, or such other assets or letters of credit as the
superintendent shall by rule or regulation permit. In the event of the
insolvency, liquidation or bankruptcy of such licensee, or the surrender
or revocation of such mortgage banker's license, or where the
superintendent takes possession of such licensee, the proceeds of each
bond or deposit shall constitute a trust fund to be used exclusively to
reimburse consumer fees or other charges determined by the
superintendent to be improperly charged or collected and to pay past due
department of financial services examination costs and assessments
charged to the licensee, unpaid penalties, or other obligations of the
licensee. The superintendent is authorized to promulgate such
regulations as are necessary and desirable to define and implement the
provisions of this subdivision. Persons and entities licensed prior to
the effective date of any regulations of the superintendent prescribing
the bonding requirement authorized by this subdivision shall file such
bond or establish such deposit within six months of the effective date
of such regulations.