Explanatory All Institutions Letter
September 23, 2004
TO THE INDIVIDUAL OR INSTITUTION ADDRESSED:
RE: Final Adoption of Amendments to Part 410 of the Superintendent’s Regulations (Licensing and Registration Requirements for Mortgage Bankers and Brokers).
On August 30, 2004, the Superintendent adopted as final the attached amendments to Part 410 of the Superintendent’s Regulations. The amendments became effective upon their publication in the State Register on September 22, 2004.
Recently passed legislation amends Article 12-D of the New York Banking Law by changing the surety bond requirement for mortgage bankers and instituting one for mortgage brokers. As a result, a schedule of bond amounts based upon a reasonable business standard had to be developed. In addition, another amendment has added the term “consultants” to the categories of people for whom conviction of one or more listed felonies can constitute cause for the Superintendent to either deny a license or registration or revoke such license or registration. The Department therefore had to develop a definition of “consultants.” In addition, other changes to Part 410 which have been under review at the Department and discussed with the industry are included among the amendments. The purpose of these additional amendments is to impose more stringent record keeping requirements on mortgage bankers to assure proper pricing of and funding for mortgage loans.
Very truly yours,
Sam L. Abram
Secretary of the Banking Board