599-N. ENFORCEMENT AUTHORITY; GROUNDS FOR SUSPENSION OR REVOCA-
TION OF A MORTGAGE LOAN ORIGINATOR LICENSE; RESTITU-
TION.
599-O. RULES, REGULATIONS AND EXAMINATIONS.
599-P. UNIQUE IDENTIFIER.
599-Q. CONFIDENTIALITY.
599-R. CONSTRUCTION.
S 599-A. LEGISLATIVE PURPOSE. THE LEGISLATURE DEEMS IT NECESSARY, IN
ORDER TO ENHANCE CONSUMER PROTECTION, REDUCE FRAUD AND ENSURE THE PUBLIC
WELFARE, THAT MORTGAGE LOAN ORIGINATORS WHO ORIGINATE MORTGAGE LOANS ON
RESIDENTIAL REAL PROPERTY BE SUBJECT TO REGULATION BY THE SUPERINTENDENT
AND THAT SUCH REGULATION BE CONSISTENT WITH TITLE V OF THE HOUSING AND
ECONOMIC RECOVERY ACT OF 2008, ALSO KNOWN AS THE S.A.F.E. MORTGAGE
LICENSING ACT, AS IT MAY BE AMENDED FROM TIME TO TIME, AND REGULATIONS
THEREUNDER OR INTERPRETATIONS THEREOF, THAT MAY BE ADOPTED FROM TIME TO
TIME BY THE SECRETARY OF THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVEL-
OPMENT.
S 599-B. DEFINITIONS. AS USED IN THIS ARTICLE:
1. "ANNUAL EXPIRATION DATE" MEANS DECEMBER THIRTY-FIRST OF EACH YEAR.
2. "DEPOSITORY INSTITUTION" HAS THE SAME MEANING AS IN SECTION THREE
OF THE FEDERAL DEPOSIT INSURANCE ACT, AND INCLUDES ANY CREDIT UNION.
3. "FEDERAL BANKING AGENCIES" MEANS THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM, THE COMPTROLLER OF THE CURRENCY, THE DIRECTOR OF
THE OFFICE OF THRIFT SUPERVISION, THE NATIONAL CREDIT UNION ADMINIS-
TRATION, AND THE FEDERAL DEPOSIT INSURANCE CORPORATION.
4. "IMMEDIATE FAMILY MEMBER" MEANS A SPOUSE, CHILD, SIBLING, PARENT,
GRANDPARENT, OR GRANDCHILD. THIS INCLUDES STEPPARENTS, STEPCHILDREN,
STEPSIBLINGS AND ADOPTIVE RELATIONSHIPS.
5. "INDIVIDUAL" MEANS A NATURAL PERSON.
6. LOAN PROCESSOR OR UNDERWRITER-
(A) "LOAN PROCESSOR OR UNDERWRITER" MEANS AN INDIVIDUAL WHO PERFORMS
CLERICAL OR SUPPORT DUTIES AS AN EMPLOYEE AT THE DIRECTION OF AND
SUBJECT TO THE SUPERVISION AND INSTRUCTION OF A PERSON LICENSED, OR
EXEMPT FROM LICENSING, UNDER THIS ARTICLE, PROVIDED THAT SUCH INDIVIDUAL
DOES NOT REPRESENT TO THE PUBLIC, THROUGH ADVERTISING OR OTHER MEANS OF
COMMUNICATING OR PROVIDING INFORMATION, INCLUDING THE USE OF BUSINESS
CARDS, STATIONERY, BROCHURES, SIGNS, RATE LISTS, OR OTHER PROMOTIONAL
ITEMS, THAT SUCH INDIVIDUAL CAN OR WILL PERFORM ANY OF THE ACTIVITIES OF
A MORTGAGE LOAN ORIGINATOR.
(B) FOR PURPOSES OF THIS SUBDIVISION, "CLERICAL OR SUPPORT DUTIES" MAY
INCLUDE, SUBSEQUENT TO THE RECEIPT OF AN APPLICATION:
(I) THE RECEIPT, COLLECTION, DISTRIBUTION, AND ANALYSIS OF INFORMATION
COMMON FOR THE PROCESSING OR UNDERWRITING OF A RESIDENTIAL MORTGAGE
LOAN; AND
(II) COMMUNICATING WITH A CONSUMER TO OBTAIN THE INFORMATION NECESSARY
FOR THE PROCESSING OR UNDERWRITING OF A LOAN, TO THE EXTENT THAT SUCH
COMMUNICATION DOES NOT INCLUDE OFFERING OR NEGOTIATING LOAN RATES OR
TERMS, OR COUNSELING CONSUMERS ABOUT RESIDENTIAL MORTGAGE LOAN RATES OR
TERMS.
7. MORTGAGE LOAN ORIGINATOR (MLO) --
(A) "MORTGAGE LOAN ORIGINATOR" MEANS AN INDIVIDUAL WHO FOR COMPEN-
SATION OR GAIN OR IN THE EXPECTATION OF COMPENSATION OR GAIN:
(I) TAKES A RESIDENTIAL MORTGAGE LOAN APPLICATION; OR
(II) OFFERS OR NEGOTIATES TERMS OF A RESIDENTIAL MORTGAGE LOAN.
(B) DOES NOT INCLUDE:
A. 6924--B 3
(I) ANY INDIVIDUAL ENGAGED SOLELY AS A LOAN PROCESSOR OR UNDERWRITER
EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION FOUR OF SECTION FIVE HUNDRED
NINETY-NINE-C OF THIS ARTICLE;
(II) AN INDIVIDUAL WHO PERFORMS ONLY REAL ESTATE BROKERAGE ACTIVITIES
AND IS LICENSED OR REGISTERED IN ACCORDANCE WITH APPLICABLE NEW YORK
LAW, UNLESS THE INDIVIDUAL IS COMPENSATED BY A LENDER, A MORTGAGE
BROKER, OR OTHER MORTGAGE LOAN ORIGINATOR OR BY ANY AGENT OF SUCH LEND-
ER, MORTGAGE BROKER, OR OTHER MORTGAGE LOAN ORIGINATOR; AND
(III) AN INDIVIDUAL SOLELY INVOLVED IN EXTENSIONS OF CREDIT RELATING
TO TIMESHARE PLANS, AS THAT TERM IS DEFINED IN SECTION 101(53D) OF TITLE
11, UNITED STATES CODE.
(C) FOR PURPOSES OF THIS ARTICLE, "REAL ESTATE BROKERAGE ACTIVITY"
MEANS ANY ACTIVITY THAT INVOLVES OFFERING OR PROVIDING REAL ESTATE
BROKERAGE SERVICES TO THE PUBLIC, INCLUDING:
(I) ACTING AS A REAL ESTATE AGENT OR REAL ESTATE BROKER FOR A BUYER,
SELLER, LESSOR, OR LESSEE OF REAL PROPERTY;
(II) BRINGING TOGETHER PARTIES INTERESTED IN THE SALE, PURCHASE,
LEASE, RENTAL, OR EXCHANGE OF REAL PROPERTY;
(III) NEGOTIATING, ON BEHALF OF ANY PARTY, ANY PORTION OF A CONTRACT
RELATING TO THE SALE, PURCHASE, LEASE, RENTAL, OR EXCHANGE OF REAL PROP-
ERTY (OTHER THAN IN CONNECTION WITH PROVIDING FINANCING WITH RESPECT TO
ANY SUCH TRANSACTION);
(IV) ENGAGING IN ANY ACTIVITY FOR WHICH A PERSON ENGAGED IN THE ACTIV-
ITY IS REQUIRED TO BE REGISTERED OR LICENSED AS A REAL ESTATE AGENT OR
REAL ESTATE BROKER UNDER ANY APPLICABLE LAW; AND
(V) OFFERING TO ENGAGE IN ANY ACTIVITY, OR ACT IN ANY CAPACITY,
DESCRIBED IN SUBPARAGRAPHS (I), (II), (III), OR (IV) OF THIS PARAGRAPH.
8. "RESIDENTIAL MORTGAGE LOAN" SHALL MEAN A LOAN TO A NATURAL PERSON
MADE PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD USE, SECURED BY EITHER
A MORTGAGE, DEED OF TRUST OR OTHER EQUIVALENT CONSENSUAL SECURITY INTER-
EST ON A DWELLING (AS DEFINED IN SECTION 1203(V) OF THE TRUTH IN LENDING
ACT) OR RESIDENTIAL REAL PROPERTY OR ANY CERTIFICATE OF STOCK OR OTHER
EVIDENCE OF OWNERSHIP IN, AND PROPRIETARY LEASE FROM, A CORPORATION OR
PARTNERSHIP FORMED FOR THE PURPOSE OF COOPERATIVE OWNERSHIP OF RESIDEN-
TIAL REAL PROPERTY AND SHALL INCLUDE ANY REFINANCE OR MODIFICATION OF
ANY SUCH EXISTING LOAN.
9. "NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY" (NMLSR) MEANS A
MORTGAGE LICENSING SYSTEM DEVELOPED AND MAINTAINED BY THE CONFERENCE OF
STATE BANK SUPERVISORS AND THE AMERICAN ASSOCIATION OF RESIDENTIAL MORT-
GAGE REGULATORS FOR THE LICENSING AND REGISTRATION OF LICENSED MORTGAGE
LOAN ORIGINATORS.
10. "NONTRADITIONAL MORTGAGE PRODUCT" MEANS, FOR PURPOSES OF THIS
ARTICLE, ANY MORTGAGE PRODUCT OTHER THAN A THIRTY-YEAR FIXED RATE MORT-
GAGE.
11. "ORIGINATING ENTITY" MEANS A PERSON OR ENTITY LICENSED OR REGIS-
TERED PURSUANT TO ARTICLE TWELVE-D OF THIS CHAPTER OR SUCH OTHER EMPLOY-
ER OF MORTGAGE LOAN ORIGINATORS AS THE SUPERINTENDENT MAY APPROVE.
12. "PERSON" MEANS AN INDIVIDUAL OR ANY CORPORATION, COMPANY, LIMITED
LIABILITY COMPANY, PARTNERSHIP, ASSOCIATION OR OTHER ENTITY.
13. "REGISTERED MORTGAGE LOAN ORIGINATOR" MEANS ANY INDIVIDUAL WHO:
(A) MEETS THE DEFINITION OF MORTGAGE LOAN ORIGINATOR AND IS AN EMPLOY-
EE OF:
(I) A DEPOSITORY INSTITUTION;
(II) A SUBSIDIARY THAT IS OWNED AND CONTROLLED BY A DEPOSITORY INSTI-
TUTION AND REGULATED BY A FEDERAL BANKING AGENCY; OR
(III) AN INSTITUTION REGULATED BY THE FARM CREDIT ADMINISTRATION; AND
A. 6924--B 4
(B) IS REGISTERED WITH, AND MAINTAINS A UNIQUE IDENTIFIER THROUGH, THE
NMLSR.
14. "RESIDENTIAL REAL PROPERTY" SHALL MEAN REAL PROPERTY LOCATED IN
THIS STATE IMPROVED BY A ONE-TO-FOUR FAMILY RESIDENCE OR RESIDENTIAL
UNIT IN A BUILDING USED OR OCCUPIED, OR INTENDED TO BE USED OR OCCUPIED,
WHOLLY OR PARTLY, AS THE HOME OR RESIDENCE OF ONE OR MORE PERSONS, BUT
SHALL NOT REFER TO UNIMPROVED REAL PROPERTY UPON WHICH SUCH RESIDENCE IS
TO BE CONSTRUCTED.
15. "UNIQUE IDENTIFIER" MEANS A NUMBER OR OTHER IDENTIFIER ASSIGNED BY
PROTOCOLS ESTABLISHED BY THE NMLSR.
S 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 MORT-
GAGE 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 MILI-
TARY COURT, UNLESS EXPRESSLY AUTHORIZED TO ACT AS A MORTGAGE LOAN ORIGI-
NATOR 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 ARTI-
CLE.
(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.
A. 6924--B 5
(D) A LICENSED ATTORNEY WHO NEGOTIATES THE TERMS OF A RESIDENTIAL
MORTGAGE LOAN ON BEHALF OF A CLIENT AS AN ANCILLARY MATTER TO THE ATTOR-
NEY'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 ORIGI-
NATOR.
(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 INTERPRETA-
TION 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 ORIGI-
NATING ENTITY MAY NOT ENGAGE IN RESIDENTIAL MORTGAGE LOAN ORIGINATION
ACTIVITIES UNLESS SUCH INDEPENDENT CONTRACTOR LOAN PROCESSOR OR UNDER-
WRITER OBTAINS AND MAINTAINS A LICENSE UNDER THIS ARTICLE. EACH INDE-
PENDENT CONTRACTOR LOAN PROCESSOR OR UNDERWRITER LICENSED AS A MORTGAGE
LOAN ORIGINATOR MUST HAVE AND MAINTAIN A VALID UNIQUE IDENTIFIER ISSUED
BY THE NMLSR.
S 599-D. STATE LICENSE APPLICATION. 1. FORM OF APPLICATION. APPLICANTS
FOR A LICENSE UNDER THIS ARTICLE SHALL APPLY ON A FORM PRESCRIBED BY THE
SUPERINTENDENT. EACH SUCH FORM SHALL CONTAIN CONTENT AS SET FORTH BY
RULE, REGULATION, INSTRUCTION OR PROCEDURE OF THE SUPERINTENDENT AND MAY
BE CHANGED OR UPDATED AS NECESSARY BY THE SUPERINTENDENT IN ORDER TO
CARRY OUT THE PURPOSES OF THIS ARTICLE. AS PART OF SUCH APPLICATION AND
NOTWITHSTANDING SECTION EIGHTEEN-A OF THIS CHAPTER, THE APPLICANT (OR
HIS OR HER ORIGINATING ENTITY ON HIS OR HER BEHALF) SHALL PAY A FEE AS
DETERMINED BY THE SUPERINTENDENT AS AN INVESTIGATION AND INITIAL LICENSE
FEE; PROVIDED, HOWEVER, THAT THE INVESTIGATION PORTION OF SUCH FEE SHALL
BE NO MORE THAN THE SUPERINTENDENT'S REASONABLE ESTIMATE OF THE ACTUAL
COST OR COSTS TO THE DEPARTMENT TO UNDERTAKE SUCH INVESTIGATION OF THE
APPLICANT, AND THE INITIAL LICENSE PORTION OF SUCH FEE AND THE ANNUAL
LICENSE FEE AS HEREAFTER REQUIRED PURSUANT TO THIS ARTICLE SHALL BE A
LICENSE FEE AMOUNT DETERMINED BY THE SUPERINTENDENT.
2. CHARGES TO ORIGINATING ENTITIES. ANY EXPENSE OF THE ADMINISTRATION
OF THIS ARTICLE WITH RESPECT TO THE LICENSING OF MORTGAGE LOAN ORIGINA-
TORS THAT IS INCLUDED WITH AN ASSESSMENT OF ORIGINATING ENTITIES PURSU-
ANT TO SECTION SEVENTEEN OF THIS CHAPTER SHALL BE LEVIED ONLY UPON SUCH
ORIGINATING ENTITIES HAVING EMPLOYED OR AFFILIATED MORTGAGE LOAN ORIGI-
NATORS THAT ARE REQUIRED TO BE LICENSED.
3. FEE COLLECTION BY THE NMLSR. ANY FEE ESTABLISHED PURSUANT TO THIS
SECTION MAY BE COLLECTED BY THE NMLSR AND INCLUDE A PROCESSING FEE
CHARGED BY THAT ENTITY. ANY SUCH PROCESSING FEES SHALL NOT BE REMITTED
TO THE SUPERINTENDENT AND SHALL NOT BE DEEMED REVENUE PURSUANT TO THIS
SECTION OR THE STATE FINANCE LAW.
4. RELATIONSHIP WITH NMLSR. IN ORDER TO FULFILL THE PURPOSES OF THIS
ARTICLE, THE SUPERINTENDENT IS AUTHORIZED TO ESTABLISH CONTRACTS WITH
THE NMLSR OR OTHER ENTITIES DESIGNATED BY THE NMLSR TO COLLECT AND MAIN-
TAIN RECORDS AND PROCESS TRANSACTION FEES OR OTHER FEES RELATED TO
LICENSEES OR OTHER PERSONS SUBJECT TO THIS ARTICLE.
A. 6924--B 6
5. WAIVER OR MODIFICATION OF REQUIREMENTS. THE SUPERINTENDENT IS
AUTHORIZED TO WAIVE OR MODIFY, IN WHOLE OR PART, BY RULE, REGULATION OR
ORDER, ANY AND ALL REQUIREMENTS OF THIS ARTICLE AND TO ESTABLISH NEW
REQUIREMENTS AS MAY BE REASONABLY NECESSARY TO PARTICIPATE IN THE NMLSR
OR TO COMPLY WITH TITLE V OF THE HOUSING AND ECONOMIC RECOVERY ACT OF
2008, ALSO KNOWN AS THE S.A.F.E. MORTGAGE LICENSING ACT, AS IT MAY BE
AMENDED FROM TIME TO TIME, AND REGULATIONS THEREUNDER OR INTERPRETATIONS
THEREOF, THAT MAY BE ADOPTED FROM TIME TO TIME BY THE SECRETARY OF THE
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
6. ELECTRONIC FILING. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECH-
NOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY
REQUIRE THAT ANY APPLICATION FOR, OR RENEWAL OF, A LICENSE OR FOR ANY
OTHER SUBMISSION OR APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE, BE MADE
OR EXECUTED BY ELECTRONIC MEANS, INCLUDING THROUGH THE NMLSR OR OTHER
ENTITIES DESIGNATED BY THE NMLSR IF HE OR SHE DEEMS IT NECESSARY TO
ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE.
7. NMLSR AS AGENT TO DISTRIBUTE CRIMINAL BACKGROUND INFORMATION. FOR
THE PURPOSES OF THIS SECTION AND IN ORDER TO EXPEDITE THE PROCESSING OF
ALL FINGERPRINTS, THE SUPERINTENDENT IS AUTHORIZED TO USE THE NMLSR AS A
CHANNELING AGENT FOR REQUESTING INFORMATION FROM AND DISTRIBUTING INFOR-
MATION TO THE U.S. DEPARTMENT OF JUSTICE OR ANY GOVERNMENTAL AGENCY.
8. NMLSR AS AGENT TO DISTRIBUTE NON-CRIMINAL BACKGROUND INFORMATION.
FOR THE PURPOSES OF THIS SECTION AND IN ORDER TO EXPEDITE THE PROCESSING
OF ALL APPLICATIONS, INCLUDING OBTAINING INDEPENDENT CREDIT REPORTS AND
INFORMATION RELATED TO ADMINISTRATIVE, CIVIL OR CRIMINAL FINDINGS BY ANY
GOVERNMENTAL JURISDICTION, THE SUPERINTENDENT IS AUTHORIZED TO USE THE
NMLSR AS A CHANNELING AGENT FOR REQUESTING AND DISTRIBUTING INFORMATION
TO AND FROM ANY SOURCE.
9. BACKGROUND INFORMATION. IN CONNECTION WITH AN APPLICATION FOR
LICENSING AS A MORTGAGE LOAN ORIGINATOR, THE APPLICANT SHALL, AT A MINI-
MUM, FURNISH TO THE NMLSR AND THE SUPERINTENDENT, AS REQUIRED BY THE
SUPERINTENDENT, INFORMATION CONCERNING THE APPLICANT'S IDENTITY, INCLUD-
ING:
(A) FINGERPRINTS FOR SUBMISSION TO THE FEDERAL BUREAU OF INVESTI-
GATION, AND ANY GOVERNMENTAL AGENCY OR ENTITY AUTHORIZED TO RECEIVE SUCH
INFORMATION FOR A STATE, NATIONAL AND INTERNATIONAL CRIMINAL HISTORY
BACKGROUND CHECK, AS MAY BE DESIGNATED BY THE SUPERINTENDENT; AND
(B) PERSONAL HISTORY AND EXPERIENCE IN A FORM PRESCRIBED BY THE NMLSR,
INCLUDING THE SUBMISSION OF AUTHORIZATION FOR THE NMLSR TO OBTAIN:
(I) AN INDEPENDENT CREDIT REPORT FROM A CONSUMER REPORTING AGENCY
DESCRIBED IN SECTION 603(P) OF THE FAIR CREDIT REPORTING ACT; AND
(II) INFORMATION RELATED TO ANY ADMINISTRATIVE, CIVIL OR CRIMINAL
FINDINGS BY ANY GOVERNMENTAL JURISDICTION.
(C) THE CURRENT BUSINESS NAME AND PRINCIPAL ADDRESS OF THE ORIGINATING
ENTITY EMPLOYING THE APPLICANT OR WITH WHICH THE APPLICANT HAS AN AFFIL-
IATION; AND
(D) SUCH OTHER PERTINENT INFORMATION AS THE SUPERINTENDENT MAY
REQUIRE.
S 599-E. ISSUANCE OF A LICENSE. 1. FINDINGS. NOTWITHSTANDING ANY OTHER
LAW, THE SUPERINTENDENT SHALL NOT ISSUE A MORTGAGE LOAN ORIGINATION
LICENSE UNLESS HE OR SHE MAKES, AT A MINIMUM, THE FOLLOWING FINDINGS:
(A) NO LICENSE REVOCATION. THAT THE APPLICANT HAS NEVER HAD A MORTGAGE
LOAN ORIGINATOR AUTHORIZATION, LICENSE OR LICENSE EQUIVALENT REVOKED IN
ANY GOVERNMENTAL JURISDICTION, EXCEPT THAT A SUBSEQUENT FORMAL VACATION
OF SUCH REVOCATION SHALL NOT BE DEEMED A REVOCATION;
A. 6924--B 7
(B) NO FELONY CONVICTION. THAT THE APPLICANT HAS NOT BEEN CONVICTED
OF, OR PLED GUILTY OR NOLO CONTENDERE TO, A FELONY IN A DOMESTIC,
FOREIGN, OR MILITARY COURT:
(I) DURING THE SEVEN-YEAR PERIOD PRECEDING THE DATE OF THE APPLICATION
FOR LICENSING; OR
(II) AT ANY TIME PRECEDING SUCH DATE OF APPLICATION, IF SUCH FELONY
INVOLVED AN ACT OF FRAUD, DISHONESTY, OR A BREACH OF TRUST, OR MONEY
LAUNDERING, PROVIDED THAT FOR PURPOSES OF THIS SUBDIVISION, THE SUPER-
INTENDENT MAY, IN HIS OR HER DISCRETION, DISREGARD A CONVICTION WHERE
THE FELON HAS BEEN PARDONED;
(C) CHARACTER AND FITNESS. THAT THE APPLICANT HAS DEMONSTRATED FINAN-
CIAL RESPONSIBILITY, CHARACTER, AND GENERAL FITNESS SUCH AS TO COMMAND
THE CONFIDENCE OF THE COMMUNITY AND TO WARRANT A DETERMINATION THAT THE
MLO WILL OPERATE HONESTLY, FAIRLY, AND EFFICIENTLY WITHIN THE PURPOSES
OF THIS ARTICLE;
(D) PRE-LICENSING EDUCATION. THAT THE APPLICANT HAS COMPLETED THE
PRE-LICENSING EDUCATION REQUIREMENT DESCRIBED IN SECTION FIVE HUNDRED
NINETY-NINE-F OF THIS ARTICLE;
(E) WRITTEN TEST. THAT THE APPLICANT HAS PASSED A WRITTEN TEST THAT
MEETS THE TEST REQUIREMENT DESCRIBED IN SECTION FIVE HUNDRED
NINETY-NINE-G OF THIS ARTICLE;
(F) SURETY BOND. THAT THE APPLICANT HAS MET THE SURETY BOND REQUIRE-
MENT DESCRIBED IN SECTION FIVE HUNDRED NINETY-NINE-K OF THIS ARTICLE;
AND
(G) AFFILIATION. UNLESS THE SUPERINTENDENT SHALL HAVE WAIVED THE
AFFILIATION REQUIREMENT PURSUANT TO REGULATIONS ADOPTED BY THE BANKING
BOARD, THAT THE APPLICANT IS EMPLOYED BY, OR IS AN INDEPENDENT CONTRAC-
TOR OF (I) AN ORIGINATING ENTITY, (II) SOLELY IN THE CASE OF A MORTGAGE
LOAN ORIGINATOR ENGAGED IN THE ORIGINATION OF RESIDENTIAL MORTGAGE LOANS
ON MANUFACTURED HOMES, AN ENTITY LICENSED UNDER ARTICLE NINE OR ELEVEN-B
OF THIS CHAPTER, OR (III) IN THE CASE OF A MORTGAGE LOAN ORIGINATOR
ENGAGED IN MORTGAGE LOAN SERVICING AND EMPLOYED BY A MORTGAGE LOAN
SERVICER, AN ENTITY REGISTERED AS A MORTGAGE LOAN SERVICER UNDER ARTICLE
TWELVE-D OF THIS CHAPTER OR EXEMPT FROM REGISTRATION UNDER SUCH ARTICLE.
A MORTGAGE LOAN ORIGINATOR MAY NOT BE SIMULTANEOUSLY EMPLOYED OR AFFIL-
IATED WITH MORE THAN ONE ORIGINATING ENTITY.
2. DISQUALIFYING ASSOCIATIONS. THE SUPERINTENDENT MAY REFUSE TO ISSUE
A LICENSE PURSUANT TO THIS ARTICLE IF HE OR SHE SHALL FIND THAT THE
APPLICANT (A) HAS BEEN A DIRECTOR, PARTNER, OR SUBSTANTIAL STOCKHOLDER
OF AN ORIGINATING ENTITY WHICH HAS HAD A REGISTRATION OR LICENSE REVOKED
BY THE SUPERINTENDENT OR A REGULATOR OF ANOTHER STATE THAT REGULATES
SUCH ORIGINATING ENTITY, OR (B) HAS BEEN AN EMPLOYEE, OFFICER OR AGENT
OF, OR A CONSULTANT TO, AN ORIGINATING ENTITY THAT HAS HAD A REGISTRA-
TION OR LICENSE REVOKED BY THE SUPERINTENDENT OR A REGULATOR OF ANOTHER
STATE THAT REGULATES SUCH ORIGINATING ENTITY WHERE SUCH PERSON SHALL
HAVE BEEN FOUND BY THE SUPERINTENDENT OR BY SUCH REGULATOR OF ANOTHER
STATE TO BEAR RESPONSIBILITY FOR THE ACTS RESULTING IN SUCH REVOCATION.
FOR THE PURPOSES OF THIS SUBDIVISION, A PERSON SHALL BE DEEMED TO HAVE
BEEN CONVICTED OF A CRIME IF SUCH PERSON SHALL HAVE PLED GUILTY TO A
CHARGE THEREOF BEFORE A COURT OR MAGISTRATE, OR SHALL HAVE BEEN FOUND
GUILTY THEREOF BY THE DECISION OR JUDGMENT OF A COURT OR MAGISTRATE OR
BY THE VERDICT OF A JURY, IRRESPECTIVE OF THE PRONOUNCEMENT OF SENTENCE
OR THE SUSPENSION THEREOF.
3. ISSUANCE OF A LICENSE. THE SUPERINTENDENT, AFTER MAKING THE FIND-
INGS REQUIRED BY SUBDIVISION ONE OF THIS SECTION SHALL THEREUPON ISSUE A
LICENSE TO THE APPLICANT AS MORTGAGE LOAN ORIGINATOR. THE SUPERINTENDENT
A. 6924--B 8
SHALL TRANSMIT ONE COPY OF SUCH CERTIFICATE TO THE APPLICANT AND FILE
ANOTHER IN HIS OR HER OFFICE, AND SHALL TRANSMIT NOTICE OF APPROVAL OF
SUCH APPLICATION, IN SUCH FORM AS THE SUPERINTENDENT DEEMS APPROPRIATE,
TO THE ORIGINATING ENTITY FOR WHICH THE APPLICANT IS PROVIDING SERVICES.
SUCH LICENSE SHALL BE DEEMED TO TERMINATE AT THE END OF THE ANNUAL
LICENSE PERIOD, UNLESS SUCH LICENSE IS RENEWED IN ACCORDANCE WITH
SECTION FIVE HUNDRED NINETY-NINE-I OF THIS ARTICLE.
S 599-F. PRE-LICENSING EDUCATIONAL REQUIREMENTS. 1. MINIMUM EDUCA-
TIONAL REQUIREMENTS. IN ORDER TO MEET THE PRE-LICENSING EDUCATION
REQUIREMENT REFERRED TO IN THIS ARTICLE, A PERSON SHALL COMPLETE AT
LEAST TWENTY HOURS OF EDUCATION APPROVED IN ACCORDANCE WITH SUBDIVISION
TWO OF THIS SECTION, WHICH SHALL INCLUDE AT LEAST THE FOLLOWING MINIMUM
REQUIREMENTS:
(A) THREE HOURS OF FEDERAL LAW AND REGULATIONS;
(B) THREE HOURS OF ETHICS, WHICH SHALL INCLUDE INSTRUCTION ON FRAUD,
CONSUMER PROTECTION, AND FAIR LENDING ISSUES;
(C) TWO HOURS OF TRAINING RELATED TO LENDING STANDARDS FOR THE NONTRA-
DITIONAL MORTGAGE PRODUCT MARKETPLACE; AND
(D) THREE HOURS OF TRAINING ON APPLICABLE NEW YORK STATE LAW AND REGU-
LATIONS AS MAY BE APPROVED BY THE SUPERINTENDENT.
2. APPROVED EDUCATION COURSES. FOR PURPOSES OF SUBDIVISION ONE OF THIS
SECTION, PRE-LICENSING EDUCATION COURSES SHALL BE SUCH COURSES, INCLUD-
ING THE COURSE PROVIDER THEREOF, AS SHALL HAVE BEEN REVIEWED, AND
APPROVED, BY THE NMLSR BASED UPON REASONABLE STANDARDS. AN HOUR OF
EDUCATION FOR PURPOSES OF THIS ARTICLE SHALL BE AS DEFINED BY THE NMLSR.
3. EMPLOYER AND AFFILIATE EDUCATION COURSES. NOTHING IN THIS SECTION
SHALL PRECLUDE ANY PRE-LICENSING EDUCATION COURSE, AS APPROVED BY THE
NMLSR, THAT IS PROVIDED BY THE EMPLOYER OF THE APPLICANT OR AN ENTITY
THAT IS AFFILIATED WITH THE APPLICANT BY AN AGENCY CONTRACT, OR ANY
SUBSIDIARY OR AFFILIATE OF SUCH EMPLOYER OR ENTITY.
4. VENUE OF EDUCATION. PRE-LICENSING EDUCATION MAY BE OFFERED EITHER
IN A CLASSROOM, ONLINE OR BY ANY OTHER MEANS APPROVED BY THE NMLSR.
5. RECIPROCITY OF EDUCATION COURSES. PRE-LICENSING EDUCATION COURSES
APPROVED BY THE NMLSR PURSUANT TO PARAGRAPHS (A), (B) AND (C) OF SUBDI-
VISION ONE OF THIS SECTION FOR ANY STATE SHALL BE ACCEPTED AS CREDIT
TOWARDS COMPLETION OF PRE-LICENSING EDUCATION REQUIREMENTS IN THIS
STATE.
6. RE-LICENSING EDUCATIONAL REQUIREMENTS. AN INDIVIDUAL LICENSED UNDER
THIS ARTICLE SUBSEQUENT TO ITS EFFECTIVE DATE APPLYING TO BE LICENSED
AGAIN MUST PROVE THAT HE OR SHE HAS COMPLETED ALL THE CONTINUING EDUCA-
TION REQUIREMENTS FOR THE YEAR IN WHICH THE LICENSE WAS LAST HELD.
S 599-G. TESTING OF MORTGAGE LOAN ORIGINATORS. 1. GENERAL REQUIRE-
MENTS. IN ORDER TO MEET THE WRITTEN TEST REQUIREMENT REFERRED TO IN THIS
ARTICLE, AN INDIVIDUAL SHALL PASS, IN ACCORDANCE WITH THE STANDARDS
ESTABLISHED UNDER THIS SECTION, A QUALIFIED WRITTEN TEST DEVELOPED BY
THE NMLSR AND ADMINISTERED BY A TEST PROVIDER APPROVED BY THE NMLSR
BASED UPON REASONABLE STANDARDS.
2. QUALIFIED TEST. A WRITTEN TEST SHALL NOT BE TREATED AS A QUALIFIED
WRITTEN TEST FOR PURPOSES OF SUBDIVISION ONE OF THIS SECTION UNLESS THE
TEST ADEQUATELY MEASURES THE APPLICANT'S KNOWLEDGE AND COMPREHENSION IN
APPROPRIATE SUBJECT AREAS, INCLUDING THE FOLLOWING:
(A) ETHICS;
(B) FEDERAL LAW AND REGULATION PERTAINING TO MORTGAGE ORIGINATION;
(C) STATE LAW AND REGULATION PERTAINING TO MORTGAGE ORIGINATION; AND
A. 6924--B 9
(D) FEDERAL AND STATE LAW AND REGULATION, INCLUDING INSTRUCTION ON
FRAUD, CONSUMER PROTECTION, THE NONTRADITIONAL MORTGAGE MARKETPLACE, AND
FAIR LENDING ISSUES.
3. TESTING LOCATION. NOTHING IN THIS SECTION SHALL PROHIBIT A TEST
PROVIDER APPROVED BY THE NMLSR FROM PROVIDING A TEST AT THE LOCATION OF
THE EMPLOYER OF THE APPLICANT OR THE LOCATION OF ANY SUBSIDIARY OR
AFFILIATE OF SUCH ENTITY, OR THE LOCATION OF ANY ENTITY WITH WHICH THE
APPLICANT HOLDS AN EXCLUSIVE ARRANGEMENT TO CONDUCT THE BUSINESS OF A
MORTGAGE LOAN ORIGINATOR.
4. MINIMUM COMPETENCY. THE FOLLOWING CONDITIONS APPLY TO INDIVIDUALS
TAKING SUCH COMPETENCY TESTS:
(A) AN INDIVIDUAL SHALL NOT BE CONSIDERED TO HAVE PASSED A QUALIFIED
WRITTEN TEST UNLESS THE INDIVIDUAL SHALL HAVE ACHIEVED A TEST SCORE OF
NOT LESS THAN SEVENTY-FIVE PERCENT CORRECT ANSWERS TO QUESTIONS;
(B) AN INDIVIDUAL MAY RETAKE A TEST THREE CONSECUTIVE TIMES, WITH EACH
CONSECUTIVE TAKING OCCURRING AT LEAST THIRTY DAYS AFTER THE PRECEDING
TEST;
(C) AFTER FAILING THREE CONSECUTIVE TESTS, AN INDIVIDUAL SHALL WAIT AT
LEAST SIX MONTHS BEFORE TAKING THE TEST AGAIN; AND
(D) A LICENSED MORTGAGE LOAN ORIGINATOR WHO FAILS TO MAINTAIN A VALID
LICENSE FOR A PERIOD OF FIVE YEARS OR LONGER, NOT TAKING INTO ACCOUNT
ANY TIME DURING WHICH SUCH INDIVIDUAL IS A REGISTERED MORTGAGE LOAN
ORIGINATOR, SHALL RETAKE THE TEST.
S 599-H. MORTGAGE CALL REPORTS. EACH ORIGINATING ENTITY SHALL SUBMIT
TO THE NMLSR REPORTS OF CONDITION, WHICH SHALL BE IN SUCH FORM AND SHALL
CONTAIN SUCH INFORMATION AS THE NMLSR MAY REQUIRE.
S 599-I. STANDARDS FOR LICENSE RENEWAL; INACTIVE STATUS. 1. STANDARDS
FOR RENEWAL. THE FOLLOWING MINIMUM STANDARDS FOR LICENSE RENEWAL FOR
MORTGAGE LOAN ORIGINATORS ARE HEREBY ESTABLISHED:
(A) THE MORTGAGE LOAN ORIGINATOR MUST CONTINUE TO MEET THE MINIMUM
STANDARDS FOR LICENSE ISSUANCE SET FORTH IN SECTION FIVE HUNDRED NINE-
TY-NINE-E OF THIS ARTICLE;
(B) THE MORTGAGE LOAN ORIGINATOR MUST SATISFY THE ANNUAL CONTINUING
EDUCATION REQUIREMENTS DESCRIBED IN SECTION FIVE HUNDRED NINETY-NINE-J
OF THIS ARTICLE; AND
(C) THE MORTGAGE LOAN ORIGINATOR MUST HAVE PAID ALL REQUIRED FEES FOR
THE RENEWAL OF THE LICENSE.
2. FAILURE TO SATISFY STANDARDS. THE LICENSE OF A MORTGAGE LOAN ORIGI-
NATOR FAILING TO SATISFY THE MINIMUM STANDARDS FOR RENEWAL SHALL TERMI-
NATE. IN THE EVENT THE LICENSED MORTGAGE LOAN ORIGINATOR FAILS TO PAY
SUCH FEE OR OTHERWISE SATISFY THIS SECTION, THEN THE DEPARTMENT SHALL
NOTIFY THE ORIGINATING ENTITY OF THE TERMINATION OF THE LICENSE. SUCH
LICENSE SHALL BE REINSTATED, IN THE CASE OF A LICENSED MORTGAGE LOAN
ORIGINATOR FAILING TO TIMELY PAY SUCH FEE, IF SUCH LICENSED MORTGAGE
LOAN ORIGINATOR PAYS SUCH FEE WITHIN SIXTY DAYS OF SUCH DUE DATE.
3. SUBMISSION OF ANNUAL REQUEST. AN ANNUAL REQUEST FOR RENEWAL OF A
LICENSE AS A MORTGAGE LOAN ORIGINATOR SHALL BE AFFIRMED BY THE MORTGAGE
LOAN ORIGINATOR AND SUBMITTED ELECTRONICALLY, INCLUDING THROUGH THE
NMLSR, IN SUCH FORM AND IN SUCH MANNER AS MAY BE PRESCRIBED BY THE
SUPERINTENDENT. THE ANNUAL REQUEST FOR RENEWAL SHALL CONTAIN SUCH INFOR-
MATION AS SPECIFIED BY THE SUPERINTENDENT.
4. INACTIVE STATUS. THE LICENSE OF A MORTGAGE LOAN ORIGINATOR IS NOT
EFFECTIVE DURING ANY PERIOD DURING WHICH THE MORTGAGE LOAN ORIGINATOR IS
NOT EMPLOYED BY, OR IS AN INDEPENDENT CONTRACTOR OF, AN ORIGINATING
ENTITY. WHEN A MORTGAGE LOAN ORIGINATOR CEASES TO BE EMPLOYED BY, OR IS
AN INDEPENDENT CONTRACTOR OF, AN ORIGINATING ENTITY, THE ORIGINATING
A. 6924--B 10
ENTITY SHALL PROMPTLY NOTIFY THE SUPERINTENDENT OF THE TERMINATION DATE
OF SUCH EMPLOYMENT OR AFFILIATION. THE LICENSE OF SUCH MORTGAGE LOAN
ORIGINATOR SHALL BE PLACED IN INACTIVE STATUS UNTIL THE SUPERINTENDENT
RECEIVES WRITTEN OR ELECTRONIC NOTICE OF THE MORTGAGE LOAN ORIGINATOR'S
NEW EMPLOYMENT OR AFFILIATION. A MORTGAGE LOAN ORIGINATOR SHALL CONTINUE
TO PAY THE ANNUAL LICENSE FEE AND TO TAKE REQUIRED EDUCATION COURSES
WHILE IN INACTIVE STATUS.
S 599-J. CONTINUING EDUCATION FOR MORTGAGE LOAN ORIGINATORS. 1.
CONTINUING EDUCATION REQUIREMENTS. IN ORDER TO MEET THE ANNUAL CONTINU-
ING EDUCATION REQUIREMENTS REFERRED TO IN SECTION FIVE HUNDRED
NINETY-NINE-I OF THIS ARTICLE, A LICENSED MORTGAGE LOAN ORIGINATOR SHALL
COMPLETE, BEGINNING IN THE YEAR AFTER SUCH INDIVIDUAL IS LICENSED, AT
LEAST ELEVEN HOURS OF EDUCATION APPROVED IN ACCORDANCE WITH SUBDIVISION
TWO OF THIS SECTION, WHICH SHALL INCLUDE AT LEAST:
(A) THREE HOURS OF FEDERAL LAW AND REGULATIONS;
(B) TWO HOURS OF ETHICS, WHICH SHALL INCLUDE INSTRUCTION ON FRAUD,
CONSUMER PROTECTION, AND FAIR LENDING ISSUES;
(C) TWO HOURS OF TRAINING RELATED TO LENDING STANDARDS FOR THE NONTRA-
DITIONAL MORTGAGE PRODUCT MARKETPLACE; AND
(D) THREE HOURS OF TRAINING ON APPLICABLE NEW YORK STATE LAW AND REGU-
LATIONS.
2. APPROVED EDUCATION COURSES. FOR PURPOSES OF SUBDIVISION ONE OF THIS
SECTION, CONTINUING EDUCATION COURSES SHALL BE REVIEWED AND APPROVED BY
THE NMLSR BASED UPON REASONABLE STANDARDS. REVIEW AND APPROVAL OF A
CONTINUING EDUCATION COURSE SHALL INCLUDE REVIEW AND APPROVAL OF THE
COURSE PROVIDER.
3. EMPLOYER AND AFFILIATE EDUCATION COURSES. NOTHING IN THIS SECTION
SHALL PRECLUDE ANY EDUCATION COURSE APPROVED BY THE NMLSR THAT IS
PROVIDED BY THE EMPLOYER OF THE MORTGAGE LOAN ORIGINATOR OR AN ENTITY
WHICH IS AFFILIATED WITH THE MORTGAGE LOAN ORIGINATOR BY AN AGENCY
CONTRACT, OR ANY SUBSIDIARY OR AFFILIATE OF SUCH EMPLOYER OR ENTITY.
4. VENUE OF EDUCATION. CONTINUING EDUCATION MAY BE OFFERED EITHER IN A
CLASSROOM, ONLINE OR BY ANY OTHER MEANS APPROVED BY THE NMLSR.
5. CALCULATION OF CREDITS. A LICENSED MORTGAGE LOAN ORIGINATOR:
(A) EXCEPT FOR SUBDIVISION NINE OF THIS SECTION, MAY RECEIVE CREDIT
FOR A CONTINUING EDUCATION COURSE ONLY IN THE CALENDAR YEAR IN WHICH THE
COURSE IS TAKEN; AND
(B) MAY NOT TAKE THE SAME APPROVED COURSE IN THE SAME OR SUCCESSIVE
YEARS TO MEET THE ANNUAL REQUIREMENTS FOR CONTINUING EDUCATION.
6. INSTRUCTOR CREDIT. A LICENSED MORTGAGE LOAN ORIGINATOR WHO IS AN
INSTRUCTOR OF AN APPROVED CONTINUING EDUCATION COURSE MAY RECEIVE CREDIT
FOR THE LICENSED MORTGAGE LOAN ORIGINATOR'S OWN ANNUAL CONTINUING EDUCA-
TION REQUIREMENT AT THE RATE OF TWO HOURS CREDIT FOR EVERY ONE HOUR
TAUGHT.
7. RECIPROCITY OF EDUCATION. A PERSON HAVING SUCCESSFULLY COMPLETED
THE EDUCATION REQUIREMENTS APPROVED BY THE NMLSR PURSUANT TO PARAGRAPHS
(A), (B), AND (C) OF SUBDIVISION ONE OF THIS SECTION FOR ANY STATE SHALL
BE ACCEPTED AS CREDIT TOWARDS COMPLETION OF CONTINUING EDUCATION
REQUIREMENTS IN THIS STATE.
8. LAPSE IN LICENSE. A LICENSED MORTGAGE LOAN ORIGINATOR WHO SUBSE-
QUENTLY BECOMES UNLICENSED MUST COMPLETE THE CONTINUING EDUCATION
REQUIREMENTS FOR THE LAST YEAR IN WHICH THE LICENSE WAS HELD PRIOR TO
ISSUANCE OF A NEW OR RENEWED LICENSE.
9. MAKE UP OF CONTINUING EDUCATION. AN INDIVIDUAL MEETING THE REQUIRE-
MENTS OF PARAGRAPHS (A) AND (C) OF SUBDIVISION ONE OF SECTION FIVE
HUNDRED NINETY-NINE-I OF THIS ARTICLE MAY MAKE UP ANY DEFICIENCY IN
A. 6924--B 11
CONTINUING EDUCATION AS ESTABLISHED BY RULE OR REGULATION OF THE SUPER-
INTENDENT.
S 599-K. REQUIRED SURETY BOND. 1. EACH MORTGAGE LOAN ORIGINATOR SHALL
BE COVERED BY A SURETY BOND IN ACCORDANCE WITH THIS SECTION. IN THE
EVENT THAT THE MORTGAGE LOAN ORIGINATOR IS AN EMPLOYEE OR EXCLUSIVE
AGENT OF AN ORIGINATING ENTITY, THE SURETY BOND OF SUCH PERSON MAY BE
USED TO SATISFY THE MORTGAGE LOAN ORIGINATOR'S SURETY BOND REQUIREMENT;
PROVIDED THAT SUCH SURETY BOND CONTAINS COVERAGE FOR EACH MORTGAGE LOAN
ORIGINATOR NOT OTHERWISE COVERED BY A QUALIFYING SURETY BOND IN AN
AMOUNT PRESCRIBED IN SUBDIVISION TWO OF THIS SECTION. THE SURETY BOND
SHALL BE IN A FORM PRESCRIBED BY THE SUPERINTENDENT. THE SUPERINTENDENT
MAY PROMULGATE RULES OR REGULATIONS WITH RESPECT TO THE REQUIREMENTS FOR
SUCH SURETY BONDS AS ARE NECESSARY TO ACCOMPLISH THE PURPOSES OF THIS
ARTICLE.
2. THE PENAL AMOUNT OF THE REQUIRED SURETY BOND SHALL BE MAINTAINED IN
AN AMOUNT THAT REFLECTS THE DOLLAR AMOUNT OF LOANS ORIGINATED BY THE
MORTGAGE LOAN ORIGINATOR AS DETERMINED BY THE SUPERINTENDENT.
3. WHEN AN ACTION IS COMMENCED ON A LICENSEE'S BOND, THE SUPERINTEN-
DENT MAY REQUIRE THE FILING OF A NEW OR SUPPLEMENTAL BOND.
4. IMMEDIATELY UPON RECOVERY UPON ANY CLAIM OR ACTION ON OR UNDER THE
BOND, THE MORTGAGE LOAN ORIGINATOR (OR THE ORIGINATING ENTITY AS THE
CASE MAY BE), SHALL FILE A NEW OR SUPPLEMENTAL BOND RESTORING THE FACE
AMOUNT OF THE BOND TO THE AMOUNT REQUIRED BY THE SUPERINTENDENT.
S 599-L. REPORTS BY THE SUPERINTENDENT; PERMISSIVE CHALLENGES BY
LICENSEES. 1. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, THE SUPER-
INTENDENT SHALL REPORT ON A REGULAR BASIS, NOT MORE THAN ANNUALLY, ALL
VIOLATIONS OF THIS ARTICLE, AS WELL AS ENFORCEMENT ACTIONS AND OTHER
RELEVANT INFORMATION, TO THE NMLSR SUBJECT TO THE PROVISIONS CONTAINED
IN THE CONFIDENTIALITY PROVISIONS OF SECTION FIVE HUNDRED NINETY-NINE-Q
OF THIS ARTICLE.
2. THE SUPERINTENDENT SHALL ESTABLISH A PROCESS WHEREBY A MORTGAGE
LOAN ORIGINATOR MAY CHALLENGE INFORMATION ENTERED INTO THE NMLSR BY THE
SUPERINTENDENT.
S 599-M. REQUIRED RECORDS AND REPORTING. 1. EDUCATIONAL RECORDS. EACH
ORIGINATING ENTITY SHALL OBTAIN AND RETAIN ACCEPTABLE DOCUMENTATION OF
THE SATISFACTORY COMPLETION OF EDUCATION COURSES REQUIRED PURSUANT TO
THIS ARTICLE BY EACH MORTGAGE LOAN ORIGINATOR EMPLOYED BY OR AFFILIATED
WITH SUCH ORIGINATING ENTITY AND SHALL PROVIDE SUCH DOCUMENTATION AT THE
REQUEST OF THE SUPERINTENDENT. SUCH DOCUMENTATION SHALL BE RETAINED BY
AN ORIGINATING ENTITY FOR SIX YEARS. AN ORIGINATING ENTITY SHALL RETAIN
A COPY OF ANY ORIGINAL PROOF OR RECORD OF COMPLETION PROVIDED BY A MORT-
GAGE LOAN ORIGINATOR. IN THOSE INSTANCES WHEN AN ORIGINATING ENTITY ALSO
RETAINS THE ORIGINAL PROOF OR RECORD OF SUCH COMPLETION OF ANY THEN
APPLICABLE EDUCATION REQUIREMENT, SUCH ORIGINATING ENTITY SHALL PROVIDE
THE ORIGINAL PROOF OR RECORD, UPON REQUEST, WHEN A MORTGAGE LOAN ORIGI-
NATOR TERMINATES OR HAS TERMINATED HIS OR HER EMPLOYMENT OR AFFILIATION
WITH THE ORIGINATING ENTITY.
2. LIST OF LICENSED MORTGAGE LOAN ORIGINATORS. THE SUPERINTENDENT
SHALL MAINTAIN UPON THE INTERNET WEB-PAGE OF THE DEPARTMENT A LIST OF
THE MORTGAGE LOAN ORIGINATORS LICENSED AND IN GOOD STANDING. SUCH LIST
SHALL INDICATE THE NAME, LICENSE NUMBER AND CURRENT ORIGINATING ENTITY,
IF ANY, EMPLOYING EACH MORTGAGE LOAN ORIGINATOR OR WITH WHOM SUCH MORT-
GAGE LOAN ORIGINATOR IS AFFILIATED.
3. REPORTS BY ORIGINATING ENTITIES. EACH ORIGINATING ENTITY SHALL ON A
QUARTERLY BASIS IN EACH CALENDAR YEAR PROVIDE THE SUPERINTENDENT, IN
WRITTEN OR ELECTRONIC FORM, WITH A LIST OF THE MORTGAGE LOAN ORIGINATORS
A. 6924--B 12
EMPLOYED BY, OR AFFILIATED WITH, SUCH ORIGINATING ENTITY AND SHALL ALSO
ADVISE IN SUCH REPORT OF ANY DISMISSAL FOR CAUSE OF A MORTGAGE LOAN
ORIGINATOR EMPLOYED BY, OR AFFILIATED WITH, SUCH ORIGINATING ENTITY
DURING SUCH QUARTER, WHICH IS DUE OR BASED UPON AN ALLEGED VIOLATION OF
THIS CHAPTER OR ANY LAW INVOLVING REAL PROPERTY.
4. REPORTS BY MORTGAGE LOAN ORIGINATORS. EACH MORTGAGE LOAN ORIGINATOR
SHALL PROMPTLY NOTIFY THE SUPERINTENDENT OF THE FOLLOWING:
(A) A CHANGE IN HIS OR HER PRIMARY RESIDENCE ADDRESS;
(B) ANY FELONY CONVICTION OR PENDING FELONY CHARGES; ANY CHARGE OF OR
CONVICTION WITH RESPECT TO A MISDEMEANOR INVOLVING FINANCIAL SERVICES OR
A FINANCIAL SERVICES RELATED BUSINESS; OR ANY CHARGE OR CONVICTION
INVOLVING FRAUD, FALSE STATEMENTS OR OMISSIONS, THEFT OR WRONGFUL TAKING
OF PROPERTY, BRIBERY, PERJURY, FORGERY OR EXTORTION SUBSEQUENT TO
INITIAL AUTHORIZATION;
(C) ANY TERMINATION OF OR RESIGNATION FROM EMPLOYMENT OF AFFILIATION
WITH AN ORIGINATING ENTITY;
(D) ANY INITIATION, SETTLEMENT OR RESOLUTION OF ANY COMPLAINT, ACTION
OR PROCEEDING BROUGHT AGAINST HIM OR HER BY A STATE OR FEDERAL GOVERN-
MENTAL UNIT OR SELF-REGULATORY ORGANIZATION IN CONNECTION WITH A FINAN-
CIAL SERVICES-RELATED ACTIVITY OR BUSINESS OR INVOLVING FRAUD, MISREPRE-
SENTATION, CONSUMER DECEPTION, LARCENY OR PERJURY;
(E) ANY INITIATION, SETTLEMENT OR RESOLUTION OF ANY OTHER CIVIL ACTION
OR PROCEEDING AGAINST HIM OR HER INVOLVING FRAUD, MISREPRESENTATION,
LARCENY OR PERJURY; AND
(F) ANY OTHER MATTERS AS DIRECTED BY THE SUPERINTENDENT.
S 599-N. ENFORCEMENT AUTHORITY; GROUNDS FOR SUSPENSION OR REVOCATION
OF A MORTGAGE LOAN ORIGINATOR LICENSE; RESTITUTION. 1. LICENSEE REVOCA-
TION. IN ADDITION TO THE AUTHORITY SET FORTH IN SUBDIVISION THREE OF
THIS SECTION, THE SUPERINTENDENT MAY REVOKE A LICENSE TO ENGAGE IN BUSI-
NESS AS A MORTGAGE LOAN ORIGINATOR PURSUANT TO THIS ARTICLE IF HE OR SHE
FINDS, AFTER NOTICE AND A HEARING, THAT:
(A) THROUGH A COURSE OF CONDUCT, THE LICENSEE HAS VIOLATED ANY
PROVISIONS OF THIS ARTICLE, OR ANY RULE OR REGULATION PROMULGATED BY THE
BANKING BOARD, OR ANY RULE OR REGULATION PRESCRIBED BY THE SUPERINTEN-
DENT UNDER AND WITHIN THE AUTHORITY OF THIS ARTICLE OR ARTICLE TWELVE-D
OF THIS CHAPTER OR OF ANY OTHER APPLICABLE LAW, RULE OR REGULATION OF
THIS STATE OR THE FEDERAL GOVERNMENT PERTAINING TO MORTGAGE BANKING,
BROKERING OR LOAN ORIGINATING; OR
(B) ANY FACT OR CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE TIME
OF THE ORIGINAL APPLICATION FOR SUCH LICENSE, WOULD HAVE WARRANTED THE
SUPERINTENDENT TO REFUSE TO ISSUE SUCH INITIAL LICENSE.
2. RESTITUTION. THE SUPERINTENDENT MAY ORDER A MORTGAGE LOAN ORIGINA-
TOR OR ANY OTHER PERSON TO PAY RESTITUTION FOR VIOLATIONS OF THIS ARTI-
CLE OR ANY RULES OF THE BANKING BOARD OR THE SUPERINTENDENT PROMULGATED
HEREUNDER.
3. SUSPENSION; TERMINATION. (A) THE SUPERINTENDENT MAY, FOR GOOD
CAUSE, OR WHERE THERE IS A SUBSTANTIAL RISK OF PUBLIC HARM, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING THE LICENSE OF ANY MORT-
GAGE LOAN ORIGINATOR FOR A PERIOD NOT TO EXCEED NINETY DAYS FOR INVESTI-
GATION. "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST ONLY WHEN
THE MORTGAGE LOAN ORIGINATOR HAS ENGAGED OR ENGAGES IN DISHONEST OR
INEQUITABLE PRACTICES OR PRACTICES WHICH DEMONSTRATE INCOMPETENT MORT-
GAGE LOAN ORIGINATING, WHICH PRACTICES MAY CAUSE SUBSTANTIAL HARM TO THE
PERSONS AFFORDED THE PROTECTION OF ARTICLE TWELVE-D OF THIS CHAPTER, OR
THE LICENSE OF THE MORTGAGE LOAN ORIGINATOR WAS REVOKED IN ANOTHER STATE
OR JURISDICTION PARTICIPATING IN THE NMLSR.
A. 6924--B 13
(B) THE SUPERINTENDENT MAY, WITHOUT NOTICE OR A HEARING, ISSUE AN
ORDER SUSPENDING ANY LICENSE: (I) THIRTY DAYS AFTER THE DATE THE MORT-
GAGE LOAN ORIGINATOR FAILS TO FILE ANY REPORT REQUIRED TO BE FILED WITH
THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY THIS ARTICLE;
OR (II) IMMEDIATELY UPON NOTICE THAT ANY REQUIRED SURETY BOND WITH
RESPECT TO THE LICENSEE IS NO LONGER IN EFFECT.
(C) IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, SUCH LICENSE MAY BE REIN-
STATED IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION
AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER
EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, SUCH LICENSE MAY BE REIN-
STATED, IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION,
THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY
THE CLOSE OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION
ORDER. OTHERWISE, IN CASE OF A SUSPENSION PURSUANT TO PARAGRAPH (B) OF
THIS SUBDIVISION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE
DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH MORTGAGE LOAN
ORIGINATOR SHALL BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION
OF LAW AT THE CLOSE OF BUSINESS ON SUCH NINETIETH DAY.
4. REQUIREMENT FOR A HEARING. EXCEPT AS PROVIDED IN SUBDIVISION THREE
OF THIS SECTION, NO LICENSE SHALL BE REVOKED OR SUSPENDED EXCEPT AFTER
NOTICE AND A HEARING THEREON. ANY ORDER OF SUSPENSION ISSUED AFTER
NOTICE AND A HEARING MAY INCLUDE AS A CONDITION OF REINSTATEMENT THAT
RESTITUTION BE MADE TO CONSUMERS OF FEES OR OTHER CHARGES WHICH HAVE
BEEN IMPROPERLY CHARGED OR COLLECTED AS DETERMINED BY THE SUPERINTEN-
DENT.
5. SURRENDER OF LICENSE. WITH THE PRIOR CONSENT OF THE SUPERINTENDENT,
ANY MORTGAGE LOAN ORIGINATOR MAY SURRENDER ANY LICENSE BY DELIVERING TO
THE SUPERINTENDENT WRITTEN NOTICE THAT HE OR SHE THEREBY SURRENDERS SUCH
LICENSE, BUT SUCH SURRENDER SHALL NOT AFFECT SUCH MORTGAGE LOAN ORIGINA-
TOR'S CIVIL OR CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO SUCH
SURRENDER OR ITS OBLIGATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES
OR ADMINISTRATIVE ACTIONS WITH RESPECT TO THE PERIODS BEFORE SUCH
SURRENDER.
6. CONTINUATION OF LIABILITY. A SUSPENSION, REVOCATION OR TERMINATION
OF A LICENSE IN ACCORDANCE WITH THIS ARTICLE SHALL NOT AFFECT SUCH MORT-
GAGE LOAN ORIGINATOR'S CIVIL OR CRIMINAL LIABILITY FOR ACTS COMMITTED
PRIOR TO SUCH SUSPENSION, REVOCATION OR TERMINATION OR ITS OBLIGATIONS
TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRATIVE ACTIONS
WITH RESPECT TO THE PERIODS BEFORE SUCH SUSPENSION, REVOCATION OR TERMI-
NATION.
7. CONTINUATION OF CONTRACTS. NO REVOCATION, SUSPENSION, SURRENDER OR
TERMINATION OF ANY LICENSE UNDER THIS ARTICLE SHALL IMPAIR OR AFFECT THE
OBLIGATION OF ANY PREEXISTING LAWFUL CONTRACT BETWEEN ANY LICENSEE UNDER
ARTICLE TWELVE-D OF THIS CHAPTER AND ANY PERSON.
8. CONTINUATION OF LICENSE. EVERY LICENSE ISSUED PURSUANT TO THIS
ARTICLE SHALL REMAIN IN FORCE AND EFFECT UNTIL THE SAME SHALL HAVE BEEN
SURRENDERED, REVOKED, TERMINATED OR SUSPENDED IN ACCORDANCE WITH ANY
PROVISION OF THIS ARTICLE, BUT THE SUPERINTENDENT SHALL HAVE AUTHORITY
IN HIS OR HER SOLE DISCRETION TO REINSTATE A SUSPENDED LICENSE OR TO
ISSUE A NEW LICENSE TO A MORTGAGE LOAN ORIGINATOR WHOSE LICENSE SHALL
HAVE BEEN REVOKED OR TERMINATED IF NO FACT OR CONDITION THEN EXISTS
WHICH WOULD HAVE WARRANTED THE SUPERINTENDENT TO REFUSE TO ISSUE SUCH
INITIAL AUTHORIZATION UNDER THIS ARTICLE.
A. 6924--B 14
9. NOTICE OF REVOCATION OR SUSPENSION; REVIEW. WHENEVER THE SUPER-
INTENDENT SHALL REVOKE OR SUSPEND A LICENSE ISSUED PURSUANT TO THIS
ARTICLE, HE OR SHE SHALL FORTHWITH EXECUTE MULTIPLE COPIES OF A WRITTEN
ORDER TO THAT EFFECT. THE SUPERINTENDENT SHALL FILE ONE COPY OF SUCH
ORDER IN THE OFFICE OF THE DEPARTMENT AND SHALL FORTHWITH SERVE A COPY
UPON THE MORTGAGE LOAN ORIGINATOR AND ANY AFFECTED ORIGINATING ENTITY.
ANY SUCH ORDER MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTICLE SEVEN-
TY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. SUCH APPLICATION FOR
REVIEW AS AUTHORIZED BY THIS SECTION MUST BE MADE WITHIN THIRTY DAYS
FROM THE DATE OF SUCH ORDER OF SUSPENSION OR REVOCATION.
10. NOTICE OF TERMINATION. WHENEVER A LICENSE SHALL HAVE TERMINATED IN
ACCORDANCE WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE MORT-
GAGE LOAN ORIGINATOR AND ANY AFFECTED ORIGINATING ENTITY THAT THE
LICENSE HAS TERMINATED AND THAT THE MORTGAGE LOAN ORIGINATOR MAY NOT
ENGAGE IN THE BUSINESS OF SOLICITING, PROCESSING, PLACING OR NEGOTIATING
A MORTGAGE LOAN OR OFFERING TO SOLICIT, PROCESS, PLACE OR NEGOTIATE A
MORTGAGE LOAN IN THIS STATE.
11. HEARING REQUIREMENTS. ANY HEARING HELD PURSUANT TO THE PROVISIONS
OF THIS SECTION SHALL BE SUBJECT TO THE PROVISIONS OF THE STATE ADMINIS-
TRATIVE PROCEDURE ACT.
S 599-O. RULES, REGULATIONS AND EXAMINATIONS. 1. THE SUPERINTENDENT
IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH RULES AND REGULATIONS
AND INTERIM PROCEDURES FOR LICENSING AND ACCEPTANCE OF APPLICATIONS AS
MAY IN HIS OR HER JUDGMENT BE NECESSARY OR APPROPRIATE FOR THE EFFECTIVE
ADMINISTRATION OR ENFORCEMENT OF THIS ARTICLE. FOR INDIVIDUALS PREVIOUS-
LY AUTHORIZED TO ACT AS MORTGAGE LOAN ORIGINATORS UNDER THIS CHAPTER,
THE SUPERINTENDENT MAY ESTABLISH EXPEDITED REVIEW AND LICENSING PROCE-
DURES.
2. FOR THE PURPOSE OF DISCOVERING VIOLATIONS OF THIS ARTICLE OR SECUR-
ING INFORMATION LAWFULLY REQUIRED BY HIM OR HER HEREUNDER, THE SUPER-
INTENDENT MAY AT ANY TIME, AND AS OFTEN AS HE OR SHE MAY DETERMINE,
INVESTIGATE THE BUSINESS AND EXAMINE THE BOOKS, ACCOUNTS, RECORDS, AND
FILES OF EVERY LICENSEE UNDER THIS ARTICLE AND ANY ENTITY WITH WHICH
SUCH INDIVIDUAL IS ASSOCIATED AS AN EMPLOYEE OR INDEPENDENT CONTRACTOR.
FOR THAT PURPOSE THE SUPERINTENDENT SHALL HAVE FREE ACCESS TO THE
OFFICES AND PLACES OF BUSINESS, BOOKS, ACCOUNTS, PAPERS, RECORDS, FILES,
SAFES AND VAULTS OF ALL SUCH ENTITIES. THE SUPERINTENDENT SHALL HAVE
AUTHORITY TO REQUIRE THE ATTENDANCE OF AND TO EXAMINE UNDER OATH ALL
PERSONS WHOSE TESTIMONY HE OR SHE MAY DEEM NECESSARY OR DESIRABLE RELA-
TIVE TO SUCH BUSINESS. THE EXPENSES INCURRED IN MAKING ANY EXAMINATION
PURSUANT TO THIS SECTION SHALL BE ASSESSED AGAINST AND PAID BY THE
LICENSEE SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO
INCURRED SHALL BE CHARGED AGAINST AND PAID BY LICENSEES IN SUCH
PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE, AND
SUCH PROPORTIONATE CHARGES SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER
EXPENSES INCURRED UPON EACH EXAMINATION. UPON WRITTEN NOTICE BY THE
SUPERINTENDENT OF THE TOTAL AMOUNT OF SUCH ASSESSMENT, THE LICENSEE
SHALL BECOME LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTEN-
DENT.
S 599-P. UNIQUE IDENTIFIER. THE UNIQUE IDENTIFIER OF ANY PERSON ORIG-
INATING A RESIDENTIAL MORTGAGE LOAN SHALL BE CLEARLY SHOWN ON ALL RESI-
DENTIAL MORTGAGE LOAN APPLICATION FORMS, SOLICITATIONS OR ADVERTISE-
MENTS, INCLUDING BUSINESS CARDS OR WEBSITES, AND ANY OTHER DOCUMENTS AS
ESTABLISHED BY RULE, REGULATION OR ORDER OF THE SUPERINTENDENT.
S 599-Q. CONFIDENTIALITY. IN ORDER TO PROMOTE MORE EFFECTIVE REGU-
LATION AND REDUCE REGULATORY BURDEN THROUGH SUPERVISORY INFORMATION
A. 6924--B 15
SHARING, INFORMATION PROVIDED TO THE SUPERINTENDENT BY AN MLO SHALL BE
SUBJECT TO THE FOLLOWING:
1. EXCEPT AS OTHERWISE PROVIDED IN PUBLIC LAW 110-289, SECTION 1512,
THE REQUIREMENTS UNDER ANY FEDERAL LAW, THE FREEDOM OF INFORMATION LAW
("FOIL") OR OTHER LAW OF THIS STATE REGARDING THE PRIVACY OR CONFIDEN-
TIALITY OF ANY INFORMATION OR MATERIAL PROVIDED TO THE NMLSR, AND ANY
PRIVILEGE ARISING UNDER FEDERAL OR STATE LAW (INCLUDING THE RULES OF ANY
FEDERAL OR STATE COURT) WITH RESPECT TO SUCH INFORMATION OR MATERIAL,
SHALL CONTINUE TO APPLY TO SUCH INFORMATION OR MATERIAL AFTER THE INFOR-
MATION OR MATERIAL HAS BEEN DISCLOSED TO THE NMLSR. SUCH INFORMATION AND
MATERIAL MAY BE SHARED WITH ALL STATE AND FEDERAL REGULATORY OFFICIALS
WITH MORTGAGE INDUSTRY OVERSIGHT AUTHORITY WITHOUT THE LOSS OF PRIVILEGE
OF THE LOSS OF CONFIDENTIALITY PROTECTIONS PROVIDED BY FEDERAL LAW, FOIL
OR THIS CHAPTER.
2. FOR THESE PURPOSES, THE SUPERINTENDENT IS AUTHORIZED TO ENTER INTO
AGREEMENTS OR SHARING ARRANGEMENTS WITH OTHER GOVERNMENTAL AGENCIES, THE
CONFERENCE OF STATE BANK SUPERVISORS, THE AMERICAN ASSOCIATION OF RESI-
DENTIAL MORTGAGE REGULATORS OR OTHER ASSOCIATIONS REPRESENTING GOVERN-
MENTAL AGENCIES AS ESTABLISHED BY RULE, REGULATION OR ORDER OF THE
SUPERINTENDENT.
S 599-R. CONSTRUCTION. NOTHING CONTAINED IN THIS ARTICLE SHALL BE
DEEMED TO IMPAIR, ALTER OR RENDER INEFFECTIVE ANY PROVISION OF ARTICLE
TWELVE-D OF THIS CHAPTER, INCLUDING BUT NOT LIMITED TO ANY PROVISION
THEREOF RELATING TO ISSUING, SUSPENDING OR REVOKING ANY MORTGAGE BANKER
LICENSE OR MORTGAGE BROKER REGISTRATION.
S 2. Subdivisions 1, 2 and 5 of section 39 of the banking law, as
amended by chapter 472 of the laws of 2008, are amended to read as
follows:
1. To appear and explain an apparent violation. Whenever it shall
appear to the superintendent that any banking organization, bank holding
company, registered mortgage broker, licensed mortgage banker, regis-
tered mortgage loan servicer, [authorized] LICENSED mortgage loan origi-
nator, licensed lender, licensed casher of checks, licensed sales
finance company, licensed insurance premium finance agency, licensed
transmitter of money, licensed budget planner, out-of-state state bank
that maintains a branch or branches or representative or other offices
in this state, or foreign banking corporation licensed by the super-
intendent to do business or maintain a representative office in this
state has violated any law or regulation, he or she may, in his or her
discretion, issue an order describing such apparent violation and
requiring such banking organization, bank holding company, registered
mortgage broker, licensed mortgage banker, [authorized] LICENSED mort-
gage loan originator, licensed lender, licensed casher of checks,
licensed sales finance company, licensed insurance premium finance agen-
cy, licensed transmitter of money, licensed budget planner, out-of-state
state bank that maintains a branch or branches or representative or
other offices in this state, or foreign banking corporation to appear
before him or her, at a time and place fixed in said order, to present
an explanation of such apparent violation.
2. To discontinue unauthorized or unsafe and unsound practices. When-
ever it shall appear to the superintendent that any banking organiza-
tion, bank holding company, registered mortgage broker, licensed mort-
gage banker, registered mortgage loan servicer, [authorized] LICENSED
mortgage loan originator, licensed lender, licensed casher of checks,
licensed sales finance company, licensed insurance premium finance agen-
cy, licensed transmitter of money, licensed budget planner, out-of-state
A. 6924--B 16
state bank that maintains a branch or branches or representative or
other offices in this state, or foreign banking corporation licensed by
the superintendent to do business in this state is conducting business
in an unauthorized or unsafe and unsound manner, he or she may, in his
or her discretion, issue an order directing the discontinuance of such
unauthorized or unsafe and unsound practices, and fixing a time and
place at which such banking organization, bank holding company, regis-
tered mortgage broker, licensed mortgage banker, registered mortgage
loan servicer, [authorized] LICENSED mortgage loan originator, licensed
lender, licensed casher of checks, licensed sales finance company,
licensed insurance premium finance agency, licensed transmitter of
money, licensed budget planner, out-of-state state bank that maintains a
branch or branches or representative or other offices in this state, or
foreign banking corporation may voluntarily appear before him or her to
present any explanation in defense of the practices directed in said
order to be discontinued.
5. To keep books and accounts as prescribed. Whenever it shall appear
to the superintendent that any banking organization, bank holding compa-
ny, registered mortgage broker, licensed mortgage banker, registered
mortgage loan servicer, [authorized] LICENSED mortgage loan originator,
licensed lender, licensed casher of checks, licensed sales finance
company, licensed insurance premium finance agency, licensed transmitter
of money, licensed budget planner, agency or branch of a foreign banking
corporation licensed by the superintendent to do business in this state,
does not keep its books and accounts in such manner as to enable him or
her to readily ascertain its true condition, he or she may, in his or
her discretion, issue an order requiring such banking organization, bank
holding company, registered mortgage broker, licensed mortgage banker,
registered mortgage loan servicer, [authorized] LICENSED mortgage loan
originator, licensed lender, licensed casher of checks, licensed sales
finance company, licensed insurance premium finance agency, licensed
transmitter of money, licensed budget planner, or foreign banking corpo-
ration, or the officers or agents thereof, or any of them, to open and
keep such books or accounts as he or she may, in his or her discretion,
determine and prescribe for the purpose of keeping accurate and conven-
ient records of its transactions and accounts.
S 3. Paragraph (a) of subdivision 1 of section 44 of the banking law,
as amended by chapter 472 of the laws of 2008, is amended to read as
follows:
(a) Without limiting any power granted to the superintendent under any
other provision of this chapter, the superintendent may, in a proceeding
after notice and a hearing, require any safe deposit company, licensed
lender, licensed casher of checks, licensed sales finance company,
licensed insurance premium finance agency, licensed transmitter of
money, licensed mortgage banker, registered mortgage broker, [author-
ized] LICENSED mortgage loan originator, registered mortgage loan servi-
cer or licensed budget planner to pay to the people of this state a
penalty for any violation of this chapter, any regulation promulgated
thereunder, any final or temporary order issued pursuant to section
thirty-nine of this article, any condition imposed in writing by the
superintendent or banking board in connection with the grant of any
application or request, or any written agreement entered into with the
superintendent.
S 4. The superintendent of banks may provide for the licensing of
mortgage loan originators and charge fees for such purposes pursuant to
article 12-E of the banking law, as added by section one of this act,
A. 6924--B 17
and take any other measures and use any reasonable methods necessary to
implement such article in order to ensure the effective and timely
administration thereof, including but not limited to providing for the
licensing of mortgage loan originators on or before the effective date
of this act.
S 5. This act shall take effect immediately; provided, however, that
sections two and three of this act shall take effect on the same date
and in the same manner as sections 15 and 16 of chapter 472 of the laws
of 2008 take effect, respectively, and provided, further, that the
superintendent of banks may delay the implementation of any provision of
this act if consistent with title V of The Housing and Economic Recovery
Act of 2008, Pub. L. No. 110-287.