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This entry was published on 2014-09-22
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Application to register as a mortgage broker; fees
§ 591-a. Application to register as a mortgage broker; fees. 1. An
application to become registered as a mortgage broker shall be in
writing, under oath, in such form as shall be prescribed by the
superintendent, and shall be accompanied by the fingerprints of the
applicant. 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. Such fingerprints shall be submitted to the division of
criminal justice services for a state criminal history record check, as
defined in subdivision one of section three thousand thirty-five of the
education law, and may be submitted to the federal bureau of
investigation for a national criminal history record check. Such
application shall contain the name and complete business and residential
address or addresses of the applicant, or if the applicant is a
partnership, association, corporation or other form of business
organization, the names and complete business and residential addresses
of each member, director and principal officer thereof. Such application
shall also include an affirmation of financial solvency noting such
capitalization requirements as may be required by the superintendent,
and such descriptions of the business activities, financial
responsibility, educational background and general character and fitness
of the applicant as may be required by the superintendent. Such
application shall be accompanied by an investigation fee payable to the
superintendent as prescribed pursuant to section eighteen-a of this

2. A registrant 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 registrant 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

3. As a condition for the issuance and retention of a mortgage
broker's registration, and subject to such regulations as the
superintendent shall prescribe, applicants for a registration shall file
with the superintendent a surety bond or make a deposit, as described in
subdivision four of section five hundred ninety-one of this article, in
an amount and form prescribed by regulations of the superintendent. Such
regulations shall provide for a varying bond amount based upon a
registrant's volume of business and any other relevant factors as
determined by the superintendent, but in no case shall such bond be less
than ten thousand dollars nor more than one hundred thousand dollars;
provided however that if the superintendent determines, in his or her
sole discretion, that a registrant has engaged in a pattern of conduct
resulting in bona fide consumer complaints of misconduct, the
superintendent may require such registrant 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
the event of the insolvency, liquidation or bankruptcy of such
registrant, or the surrender or revocation of such mortgage broker's
registration, or where the superintendent takes possession of such
registrant, 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 registrant, unpaid
penalties, or other obligations of the registrant. 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 registered prior to the effective date of any regulations of
the superintendent implementing or modifying 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.