§ 599-n. Enforcement authority; grounds for suspension or revocation
of a mortgage loan originator license; restitution. 1. Licensee
revocation. In addition to the authority set forth in subdivision three
of this section, the superintendent may revoke a license to engage in
business 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
superintendent thereunder, or any rule or regulation promulgated by the
superintendent under 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
originator or any other person to pay restitution for violations of this
article or any rules of 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
mortgage loan originator for a period not to exceed ninety days for
investigation. "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 mortgage 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was revoked in another state or jurisdiction participating in the NMLSR.

(b) The superintendent may, without notice or a hearing, issue an
order suspending any license: (i) thirty days after the date the
mortgage 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with respect to the licensee is no longer in effect.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
reinstated 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 reinstated, 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
superintendent.

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
originator'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
mortgage 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 termination.

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.

9. Notice of revocation or suspension; review. Whenever the
superintendent 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
seventy-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
mortgage 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
administrative procedure act.