The New York State Banking Department Issued an Order of Suspension to The Mortgage Bankers Corp., a Licensed Mortgage Banker, pursuant to Article XII-D of the New York Banking Law.
In the Matter of
THE MORTGAGE BANKERS CORP.
A Licensed Mortgage Banker pursuant
- Licensee -
Whereas, THE MORTGAGE BANKERS CORP., (“Licensee”) was granted a license on May 11, 1995 to engage in business as a mortgage banker pursuant to Article XII-D of the New York Banking Law (the “Banking Law”) and currently operates from 100 Garden City Plaza, Suite 450, Garden City New York, 11530 and a branch office at 1100 Route 9, Suite 1, Fishkill, New York, 12524; and
Whereas, a complaint came into the Department on November 21, 2007 that the Licensee failed to fund a closing on November 16, 2007, which violates Part 38.7(a) (8) of the General Regulations of the Banking Board.;
Whereas, on December 4, 2007, the Licensee notified the State of New York Banking Department, in a letter sent via U.S. Postal mail, that its warehouse line expired effective November 30, 2007.
Whereas, on December 10, 2007, the Department commenced an examination and noted that the Licensee had not acquired a new warehouse line, in violation of Part 410.1(b) (2) of the Superintendent’s Regulations.
Whereas, this course of action has been necessitated as a result of a lack of available warehouse funds.
Whereas, the Licensee’s current inability to maintain a warehouse credit line of $1 million demonstrates that it does not have the financial wherewithal to command the confidence of the financial community and to warrant belief that the business will be operated honestly, fairly, and efficiently.
Whereas, pursuant to Section 595(1)(b) of the Banking Law, the Superintendent may revoke a mortgage banker’s license if it is found that any fact or condition exists which, if it had existed at the time of original application for such license or registration, would have warranted the Superintendent in refusing originally to issue such license.
Whereas, pursuant to Section 595(2) of the Banking Law, the Superintendent may for good cause shown, or where there is substantial risk of public harm, suspend the Licensee’s mortgage banking license for a period not exceeding 30 days, pending investigation;
Whereas, Whereas, pursuant to Section 595(5) of the Banking Law, the suspension of a mortgage banker license shall not impair or affect the obligation of any pre-existing lawful contract between Licensee and any person; and
Whereas, the Licensee’s aforementioned actions constitute grounds for suspension or revocation of its license under Sections 595(1) (a) and (b) and 595(2),
NOW, THEREFORE, the Superintendent hereby finds that The Mortgage Bankers Corp. has defaulted and is likely to default in performing its financial engagements and that good cause exists to suspend The Mortgage Bankers Corp.’s mortgage banking license and the Superintendent further finds that there is a substantial risk of public harm. Consequently, the Superintendent hereby immediately suspends The Mortgage Bankers Corp.’s mortgage banker license for a period not exceeding 30 days from the date of this Order pending investigation
Witness, my hand and official seal of the Banking Department at the City of New York, this twenty-seventh day of December in the year two thousand seven.
Steven F. Kirchgraber
Deputy Superintendent of Banks