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Banking Interpretations

NYSBL 590
Real Property Law 265-b

From:        Harry Goberdhan

To:             [---]

Date:         09/05/2008

Subject:     RPL Section 265-b(e)(vii)

Dear [---]:

I am in receipt of your email to Marjorie Gross - Deputy Superintendent and General Counsel. In your email you asked whether under Section 265-b(e)(vii) of the RPL "the term 'person' includes employees of a registered mortgage broker registered as either an individual or corporation." Yes, the term "person" includes employees of an individual or corporation registered as a mortgage broker or licensed as a mortgage banker. It is important to note that the exemption is permitted when and only when such 'person' is performing services as a Distressed Property Consultant, while being an employee of the mortgage broker or banker.

The purpose of the exemption is to ensure that mortgage brokers and bankers (and their employees), who are subject to regulation by the Banking Department, are not subject to a second regulatory scheme when they perform services that are part of the business of mortgage brokering or banking, such as negotiating a work-out agreement or a refinancing of a mortgage.

Harry C. Goberdhan, Esq.
Assistant Counsel
New York State Banking Department
1 State Street, New York NY 10004
(212) 709-1669

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