2013 New York Consolidated Laws
BNK - Banking
Article 12-E - (599-A - 599-R) LICENSED MORTGAGE LOAN ORIGINATORS
599-N - Enforcement authority; grounds for suspension or revocation of a mortgage loan originator license; restitution.

 
    §  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  was revoked in another state or jurisdiction participating in the NMLSR.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.