l Insurance company, banking organization or foreign banking corporation licensed by the
Superintendent or Comptroller of the Currency to transact business in New York.

l Federally- or state-chartered bank, savings bank, savings and loan association or credit union or trust

l Instrumentality created by the United States or any state to make mortgage loans.

l Employees and wholly owned and consolidated subsidiaries of the above entities (but not a
nonbanking subsidiary of a bank holding company).

l Loan servicers and investors (who do not make mortgage loans).

l Person making less than five or more mortgage loans in a year (does not apply to brokering loans).

l Not-for-profit organizations if exemption is approved by the Superintendent.

l Persons engaged in the building and sale of residential real property, or a financing subsidiary thereof,
only if such persons make, solicit, process, place, or negotiate a mortgage loan on such property through
a licensee or exempt organization.

l The following loan products are exempt:

-Purchase money mortgages extended by a seller or an organization controlled by a seller of residential
real property to buyers thereof.

-Construction loan mortgages.

-Relocation mortgage loans made by an applicant’s employer to assist relocation of the employee.

-Any product offered as a mortgage loan by an instrumentality of the United States or any state.

-Credit line mortgages, installment loans and home improvement loans.

-Such other loan products which may be specifically exempted by the Superintendent.

(N.Y. Banking Law §590(1)(e), N.Y. Banking Law §590(2), N.Y. Banking Law §590(4); 3 N.Y.C.R.R. §39.2, 3
N.Y.C.R.R. §39.4, 3 N.Y.C.R.R. §39.5)


l Application shall be under oath and in form prescribed by the Superintendent.

l Must contain:

-Applicant’s name, business and residential address.

-If a partnership or corporation, etc., the names and addresses of each member, director, and principal

-Detailed description of applicant’s activities.

-Affirmation of financial solvency.

-Applicant’s fingerprints.

-Affirmation that applicant or its members, directors or principals are at least 21 years of age.

-Information on applicant’s character, fitness, experience and business responsibilities.

-Other information required by Supervisory Procedure MB101.

l Must have:

-Adjusted net worth of $250,000, and

-Existing line of credit of $1,000,000 from an unaffiliated banking institution, insurance company or
similar credit facility approved by the Superintendent.

-A corporate surety bond or pledged deposit in the amount of $50,000, valued at the lower of principal
amount or market.

-Must provide evidence and affirmation to the Superintendent.

l Must demonstrate to the Superintendent five years of verifiable experience in the business of making
residential mortgage loans or similar lending and credit evaluation experience or employ one or more
persons with such experience.

-In lieu thereof, the Superintendent may accept other relevant business or educational experience.

(N.Y. Banking Law §591(1); 3 N.Y.C.R.R. §410.1, 3 N.Y.C.R.R. §410.2)


l Superintendent must make a decision on application within 90 days.

-However, failure to act does not result in automatic approval.

(N.Y. Banking Law §592)


l Investigation fee of $1,000.

-$500 for each branch office.

l Annual license fee of $1,000.

-$500 if issued after June 30.

-Up to $1,000 for each branch office.

(N.Y. Banking Law §591(2), N.Y. Banking Law §591(3), N.Y. Banking Law §592; 3 N.Y.C.R.R. §410.2, 3
N.Y.C.R.R. §410.5, 3 N.Y.C.R.R. §410.6)

l Must file surety bond of $50,000.

-Alternatively, may deposit assets valued at the lower of principal amount or market value worth
$50,000 with a banking, trust, or savings institution in New York as approved by the Superintendent, in
accordance with 3 N.Y.C.R.R. Sections 410.10 to 410.12.

(N.Y. Banking Law §591(4); 3 N.Y.C.R.R. §410.9, 3 N.Y.C.R.R. §410.10)


l License must be prominently posted at each business location.

l License is not transferrable or assignable.

l If place of business changes, must notify the Superintendent.

-License will be amended without charge.

(N.Y. Banking Law §593, 3 N.Y.C.R.R. §38.7(a))

l Must notify the Superintendent of any change of executive officers, partners or directors (within ten
days after change) or any change in control (prior to such change).

-Any person who intends to acquire control must apply to the Superintendent and provide information
required by Supervisory Procedure MB103.

-$1,000 investigation fee.

(N.Y. Banking Law §594, N.Y. Banking Law §594-b; 3 N.Y.C.R.R. §410.7)

l May open branch office unless the Superintendent denied application within 30 days of publication of

(N.Y. Banking Law §591(3))