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Mortgage Loan Servicer Registration, Exempt Servicer and Servicer Branch Application Instructions


Mortgage Loan Servicer Registration Instructions

Exempt Mortgage Loan Servicer Application Instructions

Mortgage Loan Servicer Branch Registration Instructions

Depository Institutions - Exempt Mortgage Loan Servicers Notification Instructions

Volume of Servicing Report (“VOSR”) Filing Instructions

Business Conduct Rules

Registration & Financial Responsibility Requirements

Mortgage Loan Servicer FAQs


The New York State Department of Financial Services (DFS) uses the Nationwide Mortgage Licensing System (NMLS) to manage much of its mortgage licensing and registration processes. (NMLS itself does not grant or deny license authority.) More information on using the NMLS can be found on the NMLS website at www.nationwidelicensingsystem.org

MORTGAGE LOAN SERVICER REGISTRATION

General Instructions

Jurisdictional Specific Requirements

Jurisdiction-specific requirements as identified below must be received within 5 business days of the electronic submission of your application through the NMLS at the following address:

State of New York Department of Financial Services
Mortgage Loan Servicer Applications Unit
One State Street
New York, NY,10004-1511

  1. APPLICATION. You will be required to submit an application to register through the NMLS before fulfilling New York State Jurisdiction Specific Requirements.

  2. SURETY BOND. Provide an original mortgage loan servicer bond in the amount of $250,000 furnished by a surety company authorized to conduct business in New York. The name of the principal insured on the bond must match exactly the Full Legal Name of applicant as authorized by the Secretary of State of New York. Use the surety bond form Registered Mortgage Loan Servicer. Applicant must get prior Department approval to use a form other than the Department’s standard form.

  3. NET WORTH REQUIREMENT. Each Applicant shall demonstrate the ability to maintain adjusted net worth of at least $250,000 plus ¼ of 1% of the outstanding principal balance of aggregate mortgages serviced (whether or not in New York), provided, that, if such Person is solely a Third-party servicer, such net worth calculation shall be based upon the amount of the entity’s New York mortgage loans serviced, and if such Person is a Third-party servicer with respect to certain mortgage loans and owns other mortgage loans or the servicing rights thereto, it shall maintain net worth of at least $250,000 plus ¼ of 1% of the outstanding principal balance of the non-Third-party servicer loans and ¼ of 1% of the outstanding principal amount of the New York mortgage loans for which it is a Third-party servicer. Please select and complete the appropriate Mortgage Loan Servicer Financial Responsibility Worksheet which must include a notarized signature of the senior executive officer authorized by the applicant’s Board of  Directors to file this application.

    Please select the appropriate worksheet :

  4. FIDELITY AND E&O BOND. Applicants are required to have a minimum Fidelity and E&O bond of $300,000 (each naming the NY Superintendent Banks as an additional loss payee). See Part 418.12 of the Superintendent’s Regulations.
  5. SECRETARY OF STATE DOCUMENTATION.

Domestic Companies (entities incorporated or chartered in the state of New York) provide the following:

    • Certificate of Good Standing, if the applicant has been incorporated for more than six months

    • Filing receipt

    And a certified copy of one of the following:

    • The certificate of incorporation (if a corporation) or

    • The Articles of Organization and Operating Agreement (if a limited liability company) or

    • Partnership Agreement or Trust Agreement ) if a partnership or established pursuant to a trust)

Foreign Companies (entities incorporated or chartered outside the state of New York) provide the following:

    • Certificate of Good Standing from the New York Secretary of State if the authority to conduct business in New York is more than six months old

    • Copy of filing receipt

    • Certified copy of Application for Authority from the New York Secretary of State

    • Certified Certificate of Fictitious name from the New York Secretary of State, if applicable

    And a certified copy of one of the following:

    • The certificate of incorporation from the Secretary of State in which the entity was incorporated or chartered or

    • Partnership Agreement or Trust Agreement or

    • Articles of Organization and Operating Agreement

  1. PERSONAL FINANCIAL STATEMENTS. All direct and indirect owners, owning 10% or more of the voting stock of the applicant, three most senior executive officers, directors and Qualifiers must submit personal financial statement for the most recent quarter and year end.

  2. PERSONAL QUESTIONNAIRE. All direct and indirect owners, owning 10% or more of the voting stock of the applicant, three most senior executive officers, directors and Qualifiers must submit personal questionnaire.

  3. LITIGATION AFFIDAVIT. All direct and indirect owners, owning 10% or more of the voting stock of the applicant, three most senior executive officers, directors and Qualifiers must submit a litigation affidavit.

  4. OTHER TRADE NAMES. If the applicant will be operating under a name other than its legal name, such as a “D/B/A” or “fictitious” name, provide a file-stamped copy of the Certificate of Assumed Name from the New York Secretary of State. Sole proprietors using an assumed name must provide a copy of the receipt from the county clerk’s office.

  5. BACKGROUND REPORTS AND BACKGROUND REPORT CERTIFICATION. In connection with the application to organize a financial services entity supervised by the Department of Financial Services, an investigative background report is required. Reports are required for control persons directly or indirectly owning 10% or more of the voting stock of the entity, three senior most executive officers, directors and Qualifiers. Background investigation reports must be provided directly to the Department of Financial Services by the private investigation company.

  6. FINGERPRINT CARDS AND FINGERPRINT CERTIFICATION FORM. Each control person, three most senior executive officers, directors and qualifiers must submit fingerprints to L-1 Identity Services for a federal and state criminal background check.

  7. AFFIRMATION. All direct and indirect owners, owning 10% or more of the voting stock of the applicant, three most senior executive officers, directors and Qualifiers must provide an affirmation stating that the applicant will immediately notify the superintendent of any changes to the information furnished in the application and that designated officer has reviewed the application and certifies that the application does not contain any untrue statement or omission of material facts.

  8. CORPORATE RESOLUTION. Provide a corporate resolution authorizing officer to execute application on behalf of entity. Resolution must be signed by the corporate secretary and bear the seal of the corporation.

  9. DISCLOSURE QUESTIONS. Provide complete details of all events or proceedings for any “Yes” answer to any of the Disclosure questions for the company or any Control Person, three senior most executive officer or directors.

  10. CERTIFICATE OF COMPLIANCE. All applicants must certify that it is in compliance with Section 296-a of the Executive Law in carrying out its debt collection and loan modification activities.

  11. WORKERS COMPENSATION. All applicants must submit evidence of workers compensation (workers Compensation Law, Section 57) and insurance disability law (Section 220, Subdivision 8 of the Disability Law). To comply with the provisions of the Workers’ compensation Law and Disability Benefit Law, business must be (1) legally exempt from obtaining workers’ compensation of disability benefit insurance coverage; (2) obtain workers compensation and disability coverage from insurance carrier (3) be self insured or participate in an authorized group self-insurance plan.

  12. LEASES. Provide copies of leases and subleases, if applicable for all locations the applicant seeks to register. Leases must be fully executed in the name of the applicant by an officer of the applicant. If the applicant intends to conduct business at a residential address, a copy of the property deed must be submitted along with zoning permissions.

  13. OWNERSHIP STRUCTURE AND ORGANIZATION CHART. Submit organization charts detailing ownership structure and operating management structure. Reporting lines of executive officers and operating committees should be clearly delineated.

  14. RESUME(S). All direct and indirect owners, owning 10% or more of the voting stock of the applicant, three most senior executive officers, directors and qualifiers must submit a resume.

  15. BUSINESS PLAN. Provide a business plan outlining the applicant’s proposed servicing plans within the State of New York. The plan must include any anticipated loan modification activities.

  16. AGGREGATE SERVICING VOLUME. On a sheet of paper entitled “Aggregate Servicing Volume,” list the aggregate servicing volume by loan type (e.g. FNMA, GNMA, Private Label, etc.). The report must include a total or be provided in an excel format.

  17. SERVICING VOLUME BY STATE. On a sheet of paper entitled “Servicing Volume by State”, list servicing volume by state for all states the company currently performs servicing activities. The report must include a total or be provided in an excel format.

  18. WORD APPROVAL (if applicable). Entities that wish to engage in business involving residential mortgages on owner-occupied one-to-four family residential properties must secure the prior approval of the Superintendent of Banks to use certain words(Loan, Mortgage, Finance, Investment) or any derivative thereof in Business Names, Assumed (D/B/D) or Fictitious Names. Consult the Department’s web site at for instructions on obtain approval to use certain restricted words.

  19. WEBSITE QUESTIONNAIRE. All applicants are required to complete a web site questionnaire.

Make sure that your registration is complete by checking the NMLS Mortgage Loan Servicer New York State Jurisdictional Licensing Requirements Checklist.


EXEMPT MORTGAGE LOAN SERVICER APPLICATION

Effective May 4, 2009, the Department of Financial Services began accepting Exempt Mortgage Loan Servicer applications through the NMLS system. Licensed Mortgage Bankers, Registered Mortgage Brokers and persons seeking an exemption pursuant to Part 418.2 (e) to engage in mortgage loan servicing activities must submit their application for exemption through the NMLS. Note: Exempt depository institutions are not required to submit an application through the NMLS but must comply with the Depository Institution Notification Process.

General Instructions

Jurisdictional Specific Requirements

Jurisdiction-specific requirements identified below must be received within 10 business days of the electronic submission of your application through the NMLS at the following address:

State New York Department of Financial Services
Banking Division
One State Street
New York, NY,10004-1511
Attention: Mortgage Banking Supervision Unit

  1. APPLICATION. You will be required to submit an application to register through the NMLS before fulfilling New York State Jurisdiction Specific Requirements.

  2. NET WORTH REQUIREMENT. Each Applicant shall demonstrate the ability to maintain adjusted net worth of at least $250,000 plus ¼ of 1% of the outstanding principal balance of aggregate mortgages serviced (whether or not in New York), provided, that, if such Person is solely a Third-party servicer, such net worth calculation shall be based upon the amount of the entity’s New York mortgage loans serviced, and if such Person is a Third-party servicer with respect to certain mortgage loans and owns other mortgage loans or the servicing rights thereto, it shall maintain net worth of at least $250,000 plus ¼ of 1% of the outstanding principal balance of the non-Third-party servicer loans and ¼ of 1% of the outstanding principal amount of the New York mortgage loans for which it is a Third-party servicer. Please select and complete the appropriate Mortgage Loan Servicer Financial Responsibility Worksheet which must include a notarized signature of the senior executive officer authorized by the applicant’s Board of  Directors to file this application.
    Please select the appropriate worksheet :
  3. FINANCIAL STATEMENTS. Provide the most recent quarterly and audited annual financial statements. Also, provide a statement detailing aggregate number of loans and dollar value of all 1-4 family residential real property loans serviced and loans serviced for residential real properties located in the State of New York. This information should be provided as of the most recent fiscal quarter.
  4. SURETY BOND. Provide an original mortgage loan servicer bond in the amount of $250,000 furnished by a surety company authorized to conduct business in New York. The name of the principal insured on the bond must match exactly the Full Legal Name of applicant as authorized by the Secretary of State of New York.
  5. FIDELITY INSURANCE AND ERRORS AND OMISSIONS COVERAGE. Unless the applicant is claiming an exemption from the financial responsibility requirement under Section 418.14(a), Fidelity Insurance and Errors and Omissions (E&O) Coverage issued by an insurance company authorized to do business in New York, in the amount required under Section 418.12(c) must be provided.
  6. SECRETARY OF STATE DOCUMENTATION. Provide Certificate of Good Standing issued by the state of incorporation.
  7. OTHER TRADE NAMES. Provide a list of all names used by the applicant to conduct mortgage loan servicing activities.
  8. AFFIRMATION. Provide an affirmation stating the following:
  1. REGULATOR INFORMATION. Contact information for the applicant’s primary regulator, including name and telephone number of the regulatory Portfolio/Case Manager.

  2. OWNERSHIP STRUCTURE AND ORGANIZATION CHART. Submit organization charts detailing ownership structure and operating management structure. Reporting lines of executive officers and operating committees should be clearly delineated.

  3. WEBSITE QUESTIONNAIRE. All applicants are required to complete a web site questionnaire regarding their intent to conduct business via Internet.

Make sure that your registration is complete by checking the NMLS Exempt Servicer New York State Jurisdictional Licensing Requirements Checklist.


MORTGAGE LOAN SERVICER BRANCH REGISTRATION

General Instructions

Each branch location desiring to conduct business under this license authority must be separately authorized and will require a filing of Form MU3 through the NMLS. A branch location is defined as an office of the registrant that is separate and distinct from the principal office location.

A branch manager must be designated for each registered location. Branch manager is defined as an individual who is in charge of the operations a branch office, irrespective of the title given to that individual. Note: You cannot assign multiple branches to a single branch manager unless you have 10 or more branch offices physically located in New York State.

Total license costs: $520 including the NMLS processing fee. All fees are collected through the NMLS and are non-refundable.

Section 418.5(ac) of Part 418 of the Superintendent’s Regulations requires the Superintendent to render a decision within 60 days of publishing the receipt of a complete branch application for processing. Applications are published in the Department’s Weekly Bulletin each Friday. The Weekly Bulletin is available here.

Jurisdiction Specific Requirements

Jurisdiction-specific requirements as identified on the checklist below must be received with this checklist within 5 business days of the electronic submission of your application through the NMLS at the following address for U.S. Postal Service or Overnight Delivery:

State of New York Department of Financial Services
Banking Division
One State Street
New York, NY,10004-1511
Attention: Mortgage Loan Servicer Applications Unit

  1. LEASES. Provide copies of leases and subleases, if applicable, for the branch location the applicant seeks to license. Leases must be fully executed in the name of the applicant by an officer of the applicant. Note: The Department does not license or register residential addresses as branch locations.
  2. OUT OF STATE BRANCH LOCATIONS. If the proposed branch location is located outside the State of New York, a brief narrative of the mechanism employed to transact business with New York consumers must be provided.

Make sure that your registration is complete by checking the NMLS Branch Registration New York State Jurisdictional Licensing Requirements checklist.


CONTACT:

For questions relating to the Nationwide Mortgage Licensing System, please contact the NMLS Call Center at (240) 386-4444.

For questions relating to the Department's jurisdiction specific registration requirements contact Mortgage Banking Applications Unit by phone at (212) 709-5596 or send your questions via e-mail to mbddenovo@dfs.ny.gov for additional assistance.