Skip to Content

New Law Requiring Mortgage Loan Originators to be Authorized by New York State Banking Department takes effect on Jan. 1, 2008

On July 11, 2009, Article 12-E of the New York Banking Law (“Banking Law”) was repealed and a new Article 12-E was introduced to comply with the provisions of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE”). 

December 19, 2007

New York, N.Y.: The New York State Banking Department today announced details of its regulatory guidelines and supervisory procedures for authorizing mortgage loan originators (MLOs) beginning in January. Article 12-E of the New York Banking Law, which goes into effect on Jan. 1, 2008, requires individuals to obtain authorization from the Superintendent of Banks before engaging in mortgage loan origination with respect to New York residential real estate.

“New York’s participation in this multi-state effort to enroll all mortgage loan originators (MLOs) is a testament to our commitment to reducing mortgage fraud and identifying individuals who attempt to evade enforcement by simply migrating across state lines,” said Richard H. Neiman, Superintendent of Banks. “By requiring MLOs to be authorized by the Banking Department, not just the firms that employ them, we are creating a heightened level of protection for consumers and generating a greater sense of stability in an industry that has been significantly impacted by the recent subprime crisis.”

The Banking Department will be using the Nationwide Mortgage Licensing System (NMLS), which goes into effect on Jan. 2, 2008, as the initial step in the application process. New York is joining 40 other states who also signed on to use the NMLS, which was developed by the Conference of State Banking Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR). In addition to the detailed online application through the NMLS, individuals will be required to submit supplementary documents directly to the Banking Department, including fingerprints, credit history, and documentation related to their financial and criminal disclosures.

An estimated 40,000 applications will be received and processed before the January 2010 deadline for full compliance with the law. The timing for submitting applications, which is based on the MLO’s status prior to Jan. 1, 2008, will be staggered over the coming year.  Individuals who become MLO's on or after Jan. 1, 2008 must file an application for authorization as soon as possible after employment.  MLOs employed by or affiliated with a New York mortgage banker or mortgage broker before Jan. 1, 2008 must file an application for authorization by July 1, 2008 or such later date as the Superintendent may agree to with their employer.

The Banking Department created a dedicated section on their Web site to ensure that all MLOs, as well as the mortgage bankers and brokers they are employed by or affiliated with, have all of the information necessary to ensure compliance. Information on the Web site includes an overview of Article 12-E of Banking Law; the application process; and answers to the most frequently asked questions about compliance.

TheNew York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $1.8 trillion.

In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at

Department of Financial Services


DFS Facebook page

Follow NYDFS on Twitter


Sign up online or download and mail in your application.