Bill Text: NY A03903 | 2009-2010 | General Assembly | Amended
Bill Title: Requires all mortgage brokers to be licensed, establishes certain educational requirements, and directs and authorizes the superintendent to establish a mortgage broker licensing exam.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-06-14 - print number 3903a [A03903 Detail]
Download: New_York-2009-A03903-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
3903--A
2009-2010 Regular Sessions
I N A S S E M B L Y
January 29, 2009
___________
Introduced by M. of A. BENJAMIN -- read once and referred to the Commit-
tee on Banks -- recommitted to the Committee on Banks in accordance
with Assembly Rule 3, sec. 2 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the banking law, in relation to requiring all mortgage
brokers to be licensed, establishes certain educational requirements
through rules and regulations promulgated by the banking board, and
directs and authorizes the superintendent to establish a mortgage
broker licensing exam
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph (a) of subdivision 2 and subdivision 3 of section
2 590 of the banking law, as amended by chapter 472 of the laws of 2008,
3 paragraph (c) of subdivision 3 as added and paragraphs (d) and (e) of
4 subdivision 3 as relettered by chapter 507 of the laws of 2009, are
5 amended to read as follows:
6 (a) No person, partnership, association, corporation or other entity
7 shall engage in the business of making [five or more] mortgage loans in
8 any one calendar year without first obtaining a license from the super-
9 intendent in accordance with the licensing procedure provided in this
10 article and such regulations as may be promulgated by the banking board
11 or prescribed by the superintendent. The licensing provisions of this
12 subdivision shall not apply to any exempt organization nor to any entity
13 or entities which shall be exempted in accordance with regulations
14 promulgated by the banking board hereunder.
15 3. Rules and regulations. In addition to such powers as may otherwise
16 be prescribed by this chapter, the banking board is hereby authorized
17 and empowered to promulgate such rules and regulations as may in the
18 judgement of the banking board be consistent with the purposes of this
19 article, or appropriate for the effective administration of this arti-
20 cle, including, but not limited to:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06064-02-0
A. 3903--A 2
1 (a) Such rules and regulations in connection with the activities of
2 mortgage brokers, mortgage bankers, mortgage loan servicers and exempt
3 organizations as may be necessary and appropriate for the protection of
4 consumers in this state;
5 (b) Such rules and regulations as may be necessary and appropriate to
6 define improper or fraudulent business practices in connection with the
7 activities of mortgage brokers, mortgage bankers, mortgage loan servi-
8 cers and exempt organizations in making mortgage loans;
9 (c) Such rules and regulations under this article regarding the origi-
10 nation, sale or servicing of manufactured home loans as may be necessary
11 and appropriate for the protection of consumers;
12 (d) Such rules and regulations [as may define the terms used in this
13 article and as may be necessary and appropriate to interpret and imple-
14 ment the provisions of this article] ESTABLISHING MINIMUM EDUCATIONAL
15 REQUIREMENTS FOR ALL MORTGAGE BROKERS; and
16 (e) Such rules and regulations as may be necessary for the enforcement
17 of this article.
18 The banking board is hereby authorized and empowered to make such
19 specific rulings, demands and findings as it may deem necessary for the
20 proper conduct of the mortgage lending industry.
21 S 2. Subdivision 1 of section 592-a of the banking law, as amended by
22 section 18 of part D1 of chapter 109 of the laws of 2006, is amended to
23 read as follows:
24 1. Upon the filing of an application for registration, if the super-
25 intendent shall find that the APPLICANT HAS MET ALL EDUCATIONAL REQUIRE-
26 MENTS ESTABLISHED BY THE BANKING BOARD, HAS FURNISHED PROOF THAT THE
27 APPLICANT HAS PASSED THE LICENSING EXAMINATION FOR MORTGAGE BROKERS
28 ESTABLISHED BY THIS ARTICLE, AND THAT THE financial responsibility,
29 experience, character, and general fitness of the applicant, and of the
30 members thereof if the applicant is a co-partnership or association, and
31 of the officers and directors thereof if the applicant is a corporation,
32 are such as to command the confidence of the community and to warrant
33 belief that the business will be operated honestly, fairly, and effi-
34 ciently within the purpose of this article, the superintendent shall
35 thereupon register the applicant as a mortgage broker on a roll main-
36 tained for that purpose at the banking department, and issue a certif-
37 icate attesting to such registration in duplicate. If the superintendent
38 shall not so find, the superintendent shall not register such applicant,
39 and shall notify the applicant of the denial. The superintendent shall
40 transmit one copy of such certificate to the applicant and file another
41 in the office of the banking department. Upon receipt of such certif-
42 icate a mortgage broker shall be authorized to engage in the business of
43 placing, processing and negotiating mortgage loans. Such registration
44 shall remain in full force and effect until it is surrendered by the
45 licensee or revoked or suspended as hereinafter provided, except that
46 such registration, notwithstanding any provisions of subdivision five of
47 section seventeen of this chapter to the contrary, shall expire upon the
48 registrant's failure to pay the required assessment charged pursuant to
49 such section seventeen thirty days after the date or dates such payment
50 or payments are due. If the registrant fails to pay such charged assess-
51 ment by the date or dates such payment or payments are due, then the
52 registrant shall be required to pay, in addition, a late fee in the
53 amount of one hundred dollars. Such registration shall be reinstated if
54 the registrant pays such assessment charged and any applicable late fees
55 and/or interest within sixty days of such expiration. The superintendent
56 shall approve or deny every application for registration hereunder with-
A. 3903--A 3
1 in ninety days from the filing of a complete application provided,
2 however, that failure to act within the prescribed period shall not be
3 deemed approval of any such application.
4 S 3. The banking law is amended by adding a new section 592-b to read
5 as follows:
6 S 592-B. MORTGAGE BROKER LICENSING EXAMINATION. THE SUPERINTENDENT IS
7 HEREBY DIRECTED AND AUTHORIZED TO ESTABLISH A MORTGAGE BROKER LICENSING
8 EXAMINATION AND SHALL PROMULGATE RULES AND REGULATIONS REGARDING SUCH
9 EXAMINATION, INCLUDING BUT NOT LIMITED TO THE TIME, DATE AND MANNER IN
10 WHICH SUCH EXAMINATION SHALL BE GIVEN.
11 S 4. This act shall take effect immediately.
