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Instruction Sheet - Mortgage Bankers

One State Street 
New York, NY 10004-1417

Instructions for preparing and filing of application for license pursuant to the provisions of Article 12-D of the Banking Law.

General Application Procedure 

1. Application for a license shall be made upon forms issued by the Superintendent of Banks of the State of New York. (Forms may be reproduced.)

2. The business application form, individual questionnaires and other related forms shall be filed in duplicate under oath at the above address.

3. All forms are to be typed and fully completed. Type "none" or "not applicable" where appropriate. If additional space is required to respond, prepare and annex a signed rider.

4. Full names and addresses must be given, including Zip Codes.

5. Applicants desiring to do business under a trade name must file a certificate in the Office of the County Clerk where business is indicated in accordance with Section 130 of the General Business Law. A certificate of the County Clerk that such document has been filed must be submitted with the application.

Trade names should be checked against existing mortgage banker/broker lists of the Mortgage Banking Division of the New York State Banking Department prior to filing with County Clerk or Secretary of State to avoid rejection of name because of duplication or similarity.

6. Applicants must submit evidence of appropriate worker's compensation (WCL Section 57) and disability insurance coverage (Section 220 Subd. 8 of the Disability Law).            

To comply with the provisions of the Workers' Compensation Law, businesses must: 

  1. be legally exempt from obtaining workers' compensation insurance coverage; or

  2. obtain such coverage from insurance carriers; or

  3. be self-insured or participate in an authorized group self-insurance plan.

To comply with the provisions of the Disability Benefits Law, businesses must:           

  1. be legally exempt from obtaining disability benefits insurance coverage;

  2. obtain such coverage from insurance carriers; or

  3. be self-insured.

7. If the applicant is a corporation organized under New York Law, a copy of the Certificate of Incorporation, certified by the Secretary of State of New York must be submitted with the application.

8. Foreign corporations are to submit copy of Application for Authority and Foreign Business Certificate certified by the Secretary of State as proof of their qualification to do business in this State.

9. If the application is executed outside of New York State, County Clerk's Certificate authenticating signatures of notaries taking acknowledgments must be affixed to such application.

10. Applicants are required to list branches, subsidiaries, affiliates and parent company operating in this State, and indicate type(s) of business conducted.

10 (a) If the main office or a branch is in a home, documentary evidence must be submitted that such mortgage activities are permissible under the community’s zoning provisions.

11. Financial Information

The applicant must have at the time of application $250,000 in adjusted net worth which shall be maintained at all times. Adjusted net worth is defined as net worth less the following assets:

  1. That portion of any assets pledged to secure obligations of any person or entity.
  2. Any asset (except construction loans receivable secured by first mortgages from related companies) due from officers or stockholders of the applicant or related companies in which the applicant's officers and stockholders have an interest;
  3. That portion of the value of any marketable security (listed or unlisted) not shown at lower of cost or market, except for any shares of FNMA stock required to be held under a servicing agreement, which should be carried at cost;
  4. Any amount in excess of the lower of the cost or market value of mortgages in foreclosure, construction loans, or foreclosed property acquired by the applicant through foreclosure;
  5. Any investment shown on the balance sheet in the applicant's joint ventures, subsidiaries, affiliates and/or related companies which is greater than the value of said assets at equity;
  6. Goodwill or value placed on insurance renewals or property management contract renewals or other similar intangibles of the applicant;
  7. Organization costs of the applicant;
  8. The value of any servicing contracts held by the applicant not determined in accordance with AICPA Statement of Position 76-2, dated August 25, 1976, or subsequent revision thereto.

Applicant must submit written documentation that it has a line of credit, provided by a banking institution or an insurance company outside the applicant's corporate structure, in an amount of not less than $1,000,000. The determination of the acceptability of the provider of such credit facility shall be at the sole discretion of the Superintendent of Banks.

Each applicant must maintain the service of an employee or employees having five years verifiable experience in the making of mortgage loans on either a retail or wholesale level. At the Superintendent's sole discretion, other relevant educational or business experience may be substituted for some of the required lending and credit evaluation experience.


  1. Questionnaires
    Each individual applicant, each member of a partnership applicant, each director, each executive officer* and each stockholder who owns ten (10) percent or more of any class of outstanding capital stock of a corporate applicant must complete the enclosed questionnaires.
  2. An unqualified certified financial statement of the applicant as of the close of its most recent fiscal year end and financial statements for the previous two years. After licensing, certified financial statements must be submitted within 90 days of the close of fiscal year end.
  3. Signed personal financial statements of each individual, partner, or stockholder who owns ten percent or more of outstanding stock, director and executive officers* of a corporate applicant or each party at interest of any other type of applicant. Every financial statement must be of current date and shall include the individual's social security number.
  4. A letter signed by a principal or executive officer* assuring that a minimum adjusted net worth of $250,000 and the $1,000,000 credit facility will be maintained at all times.
  5. Organization Chart of Corporation. Also, submit a list of all states in which applicant or any affiliated company is licensed to operate in the field of finance including banking, insurance, sales finance, small loans, mortgage lending, insurance premium financing, etc., together with the name of the operating company and the name, title and address of the state officer who supervises the license.
  6. Affidavit of ownership.
  7. Litigation affidavit.
  8. Copy of lease for all locations.
  9. Fingerprints
    Fingerprints must be on both of the enclosed blue FBI cards or they cannot be processed. Forms must be completely filled out and NO application will be processed unless the above is complied with.
    Fingerprint cards must be included for each executive officer*, director and owner of more than 10% of the entity to be licensed.** Many local police stations will accommodate you and take fingerprints, but may impose a fee for this service. If you encounter any problems with this procedure, please contact us.
    The applicant must submit information on the authorized individual taking the fingerprints. The form to be used for this purpose is called "Certification by Applicants of Fingerprints taken by other Agencies" . This form may be downloaded from our Web Site or by calling (212) 709-3535.
    All applications received must be accompanied by a separate certified check, bank check or money order for $94.25 payable to "The Superintendent of Banks-Fingerprints". This fee will cover the processing of the New York State and FBI fingerprint cards.
    Large entities submitting multiple sets of cards for a number of individuals may submit one certified check, bank check or money order for fingerprints for the full sum (e.g. - 5 corporate officers submit 5 sets of cards with a check for $471.25).
    Under no circumstances may the fingerprint fee and investigation fee be included in one check. Also, attorney checks cannot be substituted for bank or certified checks.
    If payment for fingerprint processing is not received or not provided as a separate check, the application will be returned or delayed. 
  10. Background Report Certification
    Requirements and Checklist
    In connection with your application to organize/control a financial services entity supervised by the New York State Banking Department, an investigative background report is required. It is the responsibility of the applicant and its principals (executive officers, directors, stockholders, partners or individuals, as applicable) to order such reports at their own expense from an independent licensed private investigation company.
    Please note that all background investigation reports must be provided directly to the Banking Department by the private investigation company. These reports should be sent to:

Deputy Superintendent
New York State Banking Department
Mortgage Banking Division
1 State Street 
New York, NY 10004-1417

The following listing relative to such background reports specifies all requirements and must be submitted as part of the application process.

New York State Banking Department
Required Background Investigation Information

No background report will be considered complete unless all the information requested is included in the investigation report.

1.   Comprehensive credit report/history (include the actual report as well as summary).

2A. * Civil Court and Bankruptcy Court records for the past 10 years.

2B. * Criminal records (felonies, misdemeanors and violations).

* Include federal, state and local courts. Such reports shall contain at a minimum, court data from courts located in counties in which the applicant both worked and resided and all counties contiguous to those counties.

3. Education records.

4. Employment history.  Verify duties and responsibilities which clearly demonstrate at least five years of experience in the business of making residential mortgage loans or similar lending and credit evaluation experience.

5. Personal and professional references which must be furnished in writing and excluding relatives (at least 3 each).

6. Media history, if applicable (including electronic search of national and local newspapers, wire services and business publications).

7. Regulatory history, if applicable (HUD, FREDDIE MAC, State Regulators, OCC, NASD, etc.).

8. Department of Motor Vehicle records.

9. All judgments and liens filed with the county clerk. Such reports shall contain, at a minimum, information on judgments and liens filed with the county clerk in counties where the applicant worked and resided and all counties contiguous to those counties (within the past 10 years).

10. Licenses granted by any governmental agency or judicial body. (Indicate if they are still in good standing).

11. Listing of all credit relationships by the applicant such as revolving credit, established credit facilities and any credit extensions, including loans, on which the applicant is in default (more than 90 days past due).

  1. Certification of Compliance
    Execute "Certificate of Compliance" in accordance with Section 296-a of the New York Executive Law [and refer to question 17 of the Application].
  2. Application/Investigation Fee
    A check in the amount of $3,000.00 payable to the order of the "Superintendent of Banks of the State of New York" is to accompany each application. Checks must be drawn on an account in the name of the applicant.
  3. Taxpayer Identification
    Complete and return the enclosed TAXPAYER IDENTIFICATION INFORMATION form with the application.


If you have questions concerning the filing of an application, feel free to contact the Mortgage Banking Division at (212) 709-3847.


* Executive officer--Each officer who participates or has authority to participate in major policy-making functions of the institution.

** All directors irrespective of their percentage of ownership must submit to the fingerprinting requirement.

Department of Financial Services


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