Industry Letters

Pursuant to New York Banking Law Article 12-E and Part 420 of the Superintendent’s Regulation

February 4, 2011

To: The Mortgage Banker or Mortgage Broker Addressed

RE: Pursuant to New York Banking Law Article 12-E and Part 420 of the Superintendent’s Regulation

Pursuant to Article 12-E of the Banking Law and Part 420 of the Superintendent’s Regulations, no individual shall engage in the business of a mortgage loan originator on residential property located in New York State without first obtaining a license from the New York State Banking Department (the “Department”).

Effective January 1, 2011, mortgage loan originators (MLOs) employed by and/or affiliated with your company must be licensed in order to engage in mortgage loan origination activities on residential property located in New York.  The Department utilizes the Nationwide Mortgage Licensing System and Registry (NMLS) to license MLOs.  You can verify the status of loan originators employed or affiliated with your company through the NMLS’ Consumer Access portal at www.nmlsconsumeraccess.org.  Kindly note, only MLOs  listed as “Approved” with a “Yes” under the “Authorized to Conduct Business” column are licensed to engage in mortgage loan origination activities. Please be advised, MLOs listed in a “Pending” status are not authorized to engage in loan origination activities, regardless of whether these individuals have completed all requirements for licensing.

Engaging in mortgage loan origination activities without a license is a violation of the New York Banking Law. The Department will utilize its resources to cause any individual engaged illegally in mortgage loan activities to cease such activities and will consider such illegal activity in determining fitness for licensing.  In addition, it will pursue appropriate enforcement proceedings against entities that utilize such persons as mortgage loan originators.

You may consult our website at www.dfs.ny.gov/legal/industry_circular/banking/mbmlo.htm for additional information on MLO licensing.  Additionally, you can send a listing of pending MLOs for your company via email to [email protected] or [email protected]  Should you have any further questions, please contact Oronzo Nardulli at (212) 709-5556.

Very truly yours,

Rholda L. Ricketts
Deputy Superintendent of Banks