2010 New York Code
BNK - Banking
Article 12-D - (589 - 599) LICENSED MORTGAGE BANKERS
591 - 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. 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
  superintendent.
    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
  chapter.
    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
  banking  department  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.