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This entry was published on 2014-09-22
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SECTION 599-C
License required
Banking (BNK) CHAPTER 2, ARTICLE 12-E
§ 599-c. License required. 1. License required. No individual, unless
specifically exempt pursuant to subdivision three of this section shall
engage in the business of a mortgage loan originator with respect to any
dwelling or residential real property in this state without first
obtaining and maintaining annually a license under this article. Each
licensed mortgage loan originator must register with and maintain a
valid unique identifier issued by the NMLSR.

2. Effective date. In order to facilitate an orderly transition to
licensing and minimize disruption in the mortgage marketplace:

(a) Each individual, other than an individual described in paragraph
(b) of this subdivision, shall be licensed pursuant to subdivision one
of this section not later than July thirty-first, two thousand ten, or
such later date approved for mortgage loan originators in this state by
the Secretary of the U.S. Department of Housing and Urban Development,
pursuant to the authority granted under Public Law 110-289, Section
1508(a) and approved by the superintendent;

(b) Each individual authorized as a mortgage loan originator under
prior law not later than July thirty-first, two thousand nine, shall be
licensed pursuant to subdivision one of this section not later than
January first, two thousand eleven, or such later date approved for
mortgage loan originators in this state by the Secretary of the U.S.
Department of Housing and Urban Development, pursuant to the authority
granted under Public Law 110-289, Section 1508(a) and approved by the
superintendent.

(c) Notwithstanding paragraphs (a) and (b) of this subdivision, after
the effective date of this article, no individual shall act as a
mortgage loan originator if such individual has been convicted of, or
pled guilty or nolo contendere to, a felony of the types and during the
time periods described in paragraph (b) of subdivision one of section
five hundred ninety-nine-e of this article, in a domestic, foreign or
military court, unless expressly authorized to act as a mortgage loan
originator by the superintendent.

3. Exemption from licensing requirements. The following persons are
exempt from the licensing requirements otherwise applicable under this
article:

(a) Registered mortgage loan originators, when acting for an entity
described in subparagraphs (i), (ii) and (iii) of paragraph (a) of
subdivision thirteen of section five hundred ninety-nine-b of this
article.

(b) Any individual who offers or negotiates the terms of a residential
mortgage loan with or on behalf of an immediate family member of the
individual.

(c) Any individual who offers or negotiates terms of a residential
mortgage loan secured by a dwelling or residential real property that
served as the individual's own residence.

(d) A licensed attorney who negotiates the terms of a residential
mortgage loan on behalf of a client as an ancillary matter to the
attorney's representation of the client, unless the attorney is
compensated by a lender, a mortgage broker, or other mortgage loan
originator or by any agent of such lender, mortgage broker, or other
mortgage loan originator.

(e) Any individual employed by a mortgage loan servicer registered
under article twelve-D of this chapter, who negotiates any modification
of an existing residential mortgage loan on behalf of such servicer, and
does not otherwise act as a mortgage loan originator, unless licensing
is required by a rule, regulation, guideline or interpretation issued by
the U.S. Department of Housing and Urban Development under Public Law
110-289.

(f) Any individual involved in the sale of manufactured homes if
exempted from licensing by a rule, regulation, guideline or
interpretation issued by the U.S. Department of Housing and Urban
Development under Public Law 110-289.

4. Independent contractor loan processors or underwriters. A loan
processor or underwriter who is an independent contractor of an
originating entity may not engage in residential mortgage loan
origination activities unless such independent contractor loan processor
or underwriter obtains and maintains a license under this article. Each
independent contractor loan processor or underwriter licensed as a
mortgage loan originator must have and maintain a valid unique
identifier issued by the NMLSR.