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Mortgage Banking Regulations and Statutes
Supervisory Procedure MB 107
Application for Initial Authorization as a Mortgage Loan Originator;
Request for Renewal of Authorization

April 16, 2008


SUPERVISORY PROCEDURE MB 107.  APPLICATION FOR INITIAL AUTHORIZATION AS A MORTGAGE LOAN ORIGINATOR; REQUEST FOR RENEWAL OF AUTHORIZATION

(Statutory authority: Banking Law, Art. 12-E, §599-c)

§ 107.1 Definitions.

  1. For purposes of this Supervisory Procedure:

    1. “Annual Expiration Date” with respect to any MLO means the final date of the annual authorization period.

    2. “Mortgage Loan Originator” or MLO has the meaning set forth in section 420.3 of Part 420.

    3. “National Mortgage Licensing System” or NMLS means the web-based system developed and from time to time modified by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators or their designees that allows Mortgage Loan Originators to apply for, amend, update or renew an license in New York as well as in other participating states. 

    4. “Originating Entity” has the meaning set forth in section 420.3 of Part 420. .

§ 107.2 General information.

  1. Application for initial authorization required. Any individual seeking initial authorization to carry out the activities of an MLO shall submit an application for initial authorization. The application shall be sworn to or affirmed by the applicant and submitted in such form and in such manner as may be prescribed by the Superintendent.  Applicants will be required to submit certain parts of an application electronically through the NMLS.  Certain information must be submitted by mail to the Banking Department at the following address:

    New York State Banking Department
    P.O. Box 1018
    Bowling Green Station
    New York, NY 10274-1018

    The application form prescribed by the Superintendent and instructions on how to use the NMLS will be available on the Banking Department’s website (www.dfs.ny.gov) or in links provided in the Department’s website.  

  2. Request for annual renewal required. An MLO seeking annual renewal of authorization shall submit a request for renewal. The annual renewal request shall be sworn to or affirmed by the MLO and submitted in such form and in such manner as may be prescribed by the Superintendent.

  3. Expiration date, renewal request period. All authorizations and renewals issued by the Superintendent under the provisions of Article 12-E of the Banking Law shall expire annually on the Annual Expiration Date; provided that the authorization may be renewed for an additional year by:

    1. paying the annual renewal fee, and

    2. submitting an annual request for renewal during the renewal period announced by the Superintendent and available on the Banking Department’s website (www.dfs.ny.gov).  Applicants shall submit renewal applications electronically through the NMLS.  The form of renewal applicable will be available on the website of the NMLS and will also be available on the website of the Banking Department.

  4. Authorization not transferable. Authorization as an MLO shall not be transferable or assignable.

§ 107.3 Application for initial authorization.

  1. Application requirements. Each applicant for registration as an MLO shall submit the following documents as part of his or her application: 

    1. A completed application form, in the form prescribed by the Superintendent, a copy of which is available on the Department’s website, which application shall be attested to by the applicant.

    2. Two fingerprint cards with fingerprint certification, which shall be submitted to the address specified in Section 107.2(a) above.

    3. The prescribed fee, which shall be submitted electronically together with the application. A schedule of fees and a list of acceptable forms of payment shall be available at the Banking Department’s website (www.dfs.ny.gov). The fee shall consist of:

      1. an investigation fee of $125;

      2. a fingerprint processing fee charged by the State Division of Criminal Justice Services and established pursuant to section Article 35 of the Executive Law; 

      3. a processing fee charged by the NMLS; and

      4. an initial authorization fee of $50;

      If the application is rejected or withdrawn, none of these fees will be refunded.

    4. The applicant’s credit report, which shall have been issued by a recognized credit reporting agency no more than thirty days prior to the date that the application is submitted.

    5. An affidavit in the form prescribed by the Superintendent and subscribed by the applicant under penalty of perjury stating that:

      1. the applicant will promptly advise the Superintendent of any changes that occur in the information furnished in the application after the application is submitted; and

      2. the applicant has personally reviewed the application and certifies that the application does not contain any untrue statement or omission of any material fact.

  2. Additional information and in-person conferences. The Superintendent may require additional information in connection with the application for initial authorization, in order to determine the applicant’s character and fitness. In the absence of a showing of undue hardship, the Superintendent may also require that the applicant and any officers, directors and/or representatives of the Originating Entity with which the applicant is employed or affiliated appear at the Banking Department to present such information. The applicant may submit any additional information the applicant deems pertinent to the application for initial authorization.

  3. Incomplete application.

    1. No application shall be deemed to be complete until the Superintendent has received all required information, documents and fees. If an application is determined by the Superintendent to be incomplete, the Superintendent will send written notification to the applicant indicating the items that must be addressed in order for the Banking Department to continue the application review process.

    2. If a complete response fully addressing all such items is not received by the Banking Department within thirty days of the sending of such notice, the Superintendent may consider the application withdrawn.

    3. Any individual seeking initial authorization following withdrawal of an application shall submit a new application that includes all required information, documents and fees.

§ 107.4 Requirements for renewal.

  1. Submission Date. A completed request for renewal shall be submitted according to the schedule determined by the Superintendent and available at the Banking Department’s website (www.dfs.ny.gov).

  2. Requirements for renewal. A completed request for renewal shall consist of the following:

    1. The renewal request form, which shall be attested to by the authorized MLO and submitted electronically to the Banking Department through the NMLS. The information provided shall be accurate as of the date of such renewal.

    2. The annual authorization fee, which shall be submitted electronically together with the renewal request form, in the amount and paid by a method specified on the Banking Department’s website (www.dfs.ny.gov).

    3. Such additional information and documents as may be prescribed by the Superintendent and listed at the Banking Department’s website (www.dfs.ny.gov).

  3. Additional information and in-person conferences. The Superintendent reserves the right to acquire additional information in connection with the request for renewal. In the absence of a showing of undue hardship, the Superintendent may also require that the MLO requesting renewal and any officers, directors and/or representatives of the Originating Entity with which such MLO is employed or affiliated appear at the Banking Department to present such information. The MLO may submit any additional information he or she deems pertinent to the request for renewal.  

§ 107.5 Inactive Status.

  1. An MLO may not engage in Mortgage Loan Originating during any period when the MLO is not employed by or affiliated with a mortgage broker or mortgage banker licensed pursuant to Article 12-D of the Banking Law.  During such period the Mortgage Loan Originator authorization shall be placed in inactive status and shall remain in inactive status until the Superintendent receives written or electronic notice of the MLO’s new employment or affiliation with an Originating Entity.

  2. An MLO may renew his or her authorization while in inactive status as long as the MLO pays the renewal fee and complies with the education requirements of Article 12-E

§ 107.6 Instructions and assistance.  

  1. Additional instructions and assistance relating to this Supervisory Procedure may be obtained

    1. at the Banking Department’s website (www.dfs.ny.gov);

    2. by e-mail (MLO@dfs.ny.gov);

    3. by mail addressed to: Mortgage Banking Division, New York State Banking Department, One State Street, New York, NY 10004-1417; or

    4. by calling the Mortgage Banking Division at (212) 709-3535.