2010 New York Code
BNK - Banking
Article 12-D - (589 - 599) LICENSED MORTGAGE BANKERS
595 - Grounds for suspension or revocation of license, or suspension or deletion of name from mortgage broker roll.

§  595. Grounds for suspension or revocation of license, or suspension
  or deletion of name from mortgage broker roll. 1. The superintendent may
  revoke any license to engage in the business of a mortgage banker issued
  pursuant to this article or delete the name of a  mortgage  broker  from
  the  roll  of mortgage brokers registered pursuant to this article if he
  shall find that:
    (a) Through a course  of  conduct,  the  licensee  or  registrant  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 superintendent under and within the authority of this article or
  of any other law, rule or  regulation  of  this  state  or  the  federal
  government;
    (b)  Any fact or condition exists which, if it had existed at the time
  of the original application for such license or registration, would have
  warranted the  superintendent  in  refusing  originally  to  issue  such
  license;
    (c)  The commission by a licensee or registrant of a crime against the
  laws of this state or any other state or of the United States  involving
  moral  turpitude  or  fraudulent or dishonest dealing, or the entry of a
  final judgment against a licensee or registrant in a civil  action  upon
  grounds of fraud, misrepresentation or deceit;
    (d)   As   a  part  of  such  determination  regarding  suspension  or
  revocation,  the   superintendent   is   authorized   to   require   the
  fingerprinting of any licensee or registrant. 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.
    2. The superintendent may, on good cause shown, or where  there  is  a
  substantial  risk of public harm, suspend any license or delete the name
  of any registrant for  a  period  not  exceeding  thirty  days,  pending
  investigation.  "Good  cause",  as used in this subdivision, shall exist
  only when the licensee or registrant  has  defaulted  or  is  likely  to
  default  in performing its financial engagements or engages in dishonest
  or inequitable practices which may cause substantial harm to the persons
  afforded the protection of this article.
    3. Except as provided in subdivision two of this section,  no  license
  or  registration 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 the licensee or
  registrant  make restitution to consumers of fees or other charges which
  have  been  improperly  charged  or  collected  as  determined  by   the
  superintendent.
    4. Any licensee or registrant may surrender any license or certificate
  by  delivering  to  the  superintendent  written  notice that it thereby
  surrenders such license or certificate, but  such  surrender  shall  not
  affect  such  licensee's or registrant's civil or criminal liability for
  acts committed prior to such surrender. If such surrender is made  after
  the  issuance by the superintendent of a statement of charges and notice
  of hearing, the superintendent  may  proceed  against  the  licensee  or
  registrant as if such surrender had not taken place.
    4-a.  An  expiration  of  registration in accordance with section five
  hundred ninety-two-a of this article shall not affect such  registrant's
  civil   or   criminal   liability  for  acts  committed  prior  to  such
  expirations. If  such  expiration  occurs  after  the  issuance  by  the
  superintendent  of  a  statement  of  charges and notice of hearing, the

superintendent may proceed against the registrant as if such  expiration
  had not taken place.
    5.  No  revocation, suspension, surrender or expiration of any license
  or certificate shall impair or affect the obligation of any  preexisting
  lawful contract between the licensee or registrant and any person.
    6. Every license or registration issued pursuant to this article shall
  remain  in  force  and  effect  until  the  same  shall  have expired in
  accordance with section five hundred ninety-two-a  of  this  article  or
  shall have been surrendered, revoked or suspended in accordance with any
  other  provisions  of  this  article,  but the superintendent shall have
  authority to reinstate a suspended license or certificate or to issue  a
  new  license or certificate to a licensee or registrant whose license or
  registration shall have been revoked if no fact or condition then exists
  which would have warranted the superintendent in refusing originally  to
  issue such license or registration under this article.
    7.  Whenever  the  superintendent shall revoke or suspend a license or
  registration issued pursuant to this article, he shall forthwith execute
  in duplicate a written order to that effect.  The  superintendent  shall
  file  one  copy of such order in the office of the department of banking
  and  shall  forthwith  serve  the  other  copy  upon  the  licensee   or
  registrant.  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.
    7-a.  Whenever  a  registration  shall have expired in accordance with
  section five hundred ninety-two-a of this  article,  the  superintendent
  shall  notify  the registrant that the registration has expired and that
  the registrant 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.
    8.  Any  hearing held pursuant to the provisions of this section shall
  be noticed, conducted and administered  in  compliance  with  the  state
  administrative procedure act.