Exempt Organizations (Depository Institutions and Insurance Companies) - Exempt Mortgage Loan Servicers Notification Instructions

Depository institutions and insurance companies, as defined in section 590.1(e) of the New York Banking Law, are exempt from the mortgage loan servicer registration requirements.

Exempt depository institutions and insurance companies engaging in mortgage loan servicing  are expected to comply with the financial responsibility requirements of Part 418 of the Superintendent’s Regulations and the business conduct requirements  outlined in Part 419 of the Superintendent’s Regulations. Such organizations are expected to maintain records demonstrating compliance with financial responsibility requirements of Part 418.13 of the Superintendent’s Regulations.

Note: The notification instructions on this page do not apply to mortgage bankers and mortgage brokers, which must comply with a different notification instruction process.

General Instructions

Exempt depository institutions and insurance companies engaging in mortgage loan servicing activities for 1-4 family residential property located in New York State may choose to but are not required to submit an Exempt Mortgage Loan Servicer Registration Application through the NMLS.  However, such organizations must provide the Department with the following:

Cover Letter (on company letterhead)

A cover letter stating that the organization is in the business of servicing mortgage loans in New York.  The letter must be on the organization’s letterhead and signed by a duly authorized officer or legal counsel of the servicer.  At a minimum, the letter should contain the following information:

  • The legal name of the servicer and assumed (trade) names, if any, which the entity conducts mortgage servicing activities in New York;
  • The address of the servicer’s principal office;
  • Name, title, telephone number and email address of the Primary Servicing Contact.  The individual named should have the authority to respond to general inquiries made by the Department, concerning servicing activities on New York residential properties;
  • Name, title, telephone number and email address of the servicer’s Loss Mitigation Contact to address loss mitigation inquiries made by the Department;
  • Name, title, telephone number and email address of the Designated Primary Regulatory Contact with the authority to respond to general servicing and legislative inquiries made by the Department; and
  • Name, title, telephone number and email address of the primary person responsible for Consumer Complaints.  

Note: Exempt depository mortgage loan servicers and insurance companies engaging in mortgage loan servicing are expected to comply with the financial responsibility requirements of Part 418 of the of the Superintendent’s Regulations and the business conduct requirements  outlined in Part 419 of the Superintendent’s Regulations. Such organizations are expected to maintain records demonstrating compliance with financial responsibility requirements of section 418.13 of Part 418 of the Superintendent’s Regulations.

The Department must receive an original signature letter from the respective organization.  The original document should be addressed to Deputy Superintendent Rholda L. Ricketts and forwarded to the Department at the following address:

New York State Department of Financial Services
Exempt Mortgage Loan Servicer Processing Unit
One State Street
New York, NY 10004-1511