General Industry Letters
Mortgage Banking Letters
Changes in the Billing Process for the General Assessment for all Mortgage Brokers
May 24, 2007
To All Mortgage Brokers:
This is to advise you of changes in the billing process for the general assessment for all Mortgage Brokers. These changes are effective immediately. Charts of the billing process are attached to help with the explanation.
Mortgage broker general assessment bills are due on March 10, June 10, September 10 and December 10. If payment is not received by the due date, a late fee of $100.00 will be assessed pursuant to Section 592.a of the Banking Law. (See Item # 2 on Chart 1, attached). During this period, payment can be made by check, money order or Automated Clearing House Debit (ACH) payment (A form is enclosed to use this option). Registrations will not be suspended for failure to pay by the due date unless they are already expired at the time the next quarterly assessment bill is sent, as noted below.
The registration will expire pursuant to Section 592.a of the Banking Law if full payment of the assessment and late fee is not received 30 days from the due date. When a registration is expired, no new business can be conducted. There is a 60 day grace period from the date of expiration to reinstate the registration before it is permanently expired. In order to do this, full payment must be received by certified check or bank check or through ACH before the end of the grace period. Note that once a registration is permanently expired, a new application must be filed with the investigation fee. No new business can be conducted without a new registration. (See Item #3)
If a subsequent quarterly assessment bill is generated while a registration is expired, the new bill will be sent. It is due only if the registration is reinstated. In this case, all outstanding payments must be made before business can continue. If the amount due to remove the expiration is paid, but the amount due on the subsequent quarterly billing is not paid by the due date, the expiration will be removed, but the registration will immediately be suspended for nonpayment pursuant to Section 17.5 of the Banking Law. (See Item # 7)
A company that is in business during a quarter is assessed for that quarter. If the registration is expired, the bond company is notified of a possible claim at the time of expiration. The Department will make a claim against the bond for full payment upon permanent expiration. Payment by the bond company or the broker, after the permanent expiration, does not reinstate the registration (See item #’s 3 and 6).
Mortgage brokers are encouraged to stay current on payments to avoid late fees and expirations. The Department offers an ACH Debit option, which would deduct payment from your bank account on the due date. Most banks participate in the ACH network. If you are interested in enrolling in this option, please complete and return the attached form.
Diana S. Rulon
Chief Operating Officer