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Mortgage licensing / New York

New York Exempt Mortgage Banker License-NP

company licence · NMLS NYEXEMPTBANKERNP_C · DFS

Requirements (17)

  1. Step 1

    Qualifying Individual: Each exempt entity must designate a person or persons to serve as the Qualifying Individual (the “Qualifier”) in charge of the organization’s loan origination activities or oversight of licensed mortgage loan originators. Such person must have at least two years of experience in the business of credit analysis and underwriting of residential mortgage loans or similar lending and credit evaluation experience and at least two years of (i) housing counseling or (ii) foreclosure counseling experience and be actively engaged in the business of the exempt mortgage banker. This individual should be listed in the Qualifying Individual section of the Company (MU1) Form.

    Submitted via: NMLS

  2. Step 2

    Resident/Registered Agent: The New York State Department of Financial Services does not require you to have a Registered Agent physically located in the State of New York. However, this section CANNOT be left blank on the Company (MU1) Form. Corporations, limited liability companies and partnership that have not engaged an agent for services of process in the State of New York can use the following address to complete the Registered Agent information. The New York Department of State - Division of Corporation, 99 Washington Avenue, Albany, NY 12231.

    Submitted via: NMLS

  3. Step 3

    Cover Letter: Send a cover letter signed by an authorized executive officer or program director of the organization requesting exemption from licensing and outlining the organization’s relevant lending activities and current operating structure. The following program related information must be submitted as an attachment to the cover letter: • A detailed description of loan programs, products, and services offered, including a list of all fees charged and collected by the organization for each program, product or services offered. • Information regarding the organization’s funding sources, including fee income, grants, and donations. Separately detail funding sources from any banks or other financial institutions, and federal and state agencies. If any one entity or person represents 10% or more of funding, please provide name(s) of such entities or persons.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street New York, NY 10004

  4. Step 4

    Financial Statement: Send audited financial statements for the past two fiscal years.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street New York, NY 10004

  5. Step 5

    Letter of Undertaking: Nonprofit organizations seeking exemption from the licensing or registration provisions of Article 12-D must submit a letter of undertaking signed by an authorized executive officer or program director. The letter must contain the following affirmations: • Books and records related to the making of a mortgage loan will be kept for a minimum of three years in accordance with section 597 of the New York Banking Law and made available for inspection by the Superintendent in accordance with Part 410 of the Superintendent’s Regulations. • The organization will comply with the advertising, solicitation, application and commitment procedures and disclosure requirements of Article 12-D of the New York Banking Law and Part 38 of the General Regulations of the Superintendent for all mortgage loans secured by owner-occupied one-to-four family residential property located in New York, except for exempt loan products listed in Part 39 of the General Regulations of the Superintendent. • Upon reasonable notice, the Superintendent has the authority to inspect all books and records, and that the organization will bear all costs and expenses related to the inspection.tion; • For out-of-state applicants, designating the New York Secretary of State as the agent for service of process in connection with any transaction subject to the requirements of the Banking Law and Department’s regulations.; • The organization is an independent organization, and is tax-exempt under Internal Revenue Code Section 501(c)(3), and • The organization will cooperate with the Department in the event of any consumer complaints.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  6. Step 6

    Resume: Send a resume for the individual designated to serve as the Qualifying Individual (the “Qualifier”) in charge of the organization’s loan origination activities or having oversight of the organization’s mortgage loan originators, processors and underwriters. Also submit a reference from an independent third-party lender, law firm or housing counseling agency familiar with the Qualifying Individual's underwriting, credit analysis, housing or foreclosure experience. Separate letters can be provided for the relevant experience.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  7. Step 7

    Mortgage Loan Disclosure Forms: Send copies of the organization’s disclosure forms that will be provided to borrowers pursuant to Part 38 of the General Regulations of the Superintendent and federal disclosure laws.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  8. Step 8

    Management and Organization Charts: Mail or upload an organizational chart showing the structure of the organization. The chart should detail program areas and the responsible manager(s), including, but not limited, to loan programs. NOTE: If the not-for-profit organization utilizes a Single Purpose Limited Liability Subsidiary (SPLLS) to facilitate loan origination activities, a separate application must be submitted for the SPLLS. This information may be mailed to the department or uploaded into NMLS. If this document is uploaded into NMLS, it should be uploaded as the Document Type “Organizational Chart/Description” in the Document Uploads section of the Company (MU1) Form. See the Document Upload Quick Guide for formatting instructions, upload instructions and document descriptions and examples.

    Submitted via: NMLS or MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  9. Step 9

    SECRETARY OF STATE DOCUMENTATION Domestic Companies (includes entities incorporated or chartered in the State of New York) • Mail an original Certificate of Good Standing, if the applicant has been incorporated for more than six months; andProvide one of the following: • Certified copy Certificate of Incorporation and filing receipt (if a corporation); or • The Articles of Organization and Operating Agreement (if a Limited Liability Company); or • Partnership Agreement or Trust Agreement (if a partnership or established pursuant to a trust).Foreign Companies (entities incorporated or chartered outside the State of New York) • Mail an original Certificate of Good Standing from the New York Secretary of State if the authority to conduct business in New York is more than six months old; and Provide one of the following: • Copy of filing receipt and certified copy of Application for Authority from the New York Secretary of State; or • Copy of filing receipt and certified Certificate of Fictitious name from the New York Secretary of State if you file for a Fictitious name; andOne of the following: • Certified copy of certificate of incorporation and filing receipt from the Secretary of State in which the entity was incorporated or chartered, or • Partnership Agreement or Trust Agreement, (if a partnership or established pursuant to a trust); or • The Articles of Organization and Operating Agreement, if a limited liability company

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  10. Step 10

    Tax Exemption Certificate: Send a copy of the organization’s 501(c)(3) tax exempt certificate or tax determination letter issued by the Internal Revenue Service.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  11. Step 11

    Single Purpose Limited Liability Subsidiary: If the application is for loan origination activities conducted by a Single Purpose Limited Liability Subsidiary (SPLLS) of a tax exempt not-for-profit organization, the applicant must send written confirmation that the SPLLS has disregarded entity status for IRS tax exempt purpose.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  12. Step 12

    Website Domain: Provide any domain addresses (i.e., website) used by the organization. This information should be listed in the Web Addresses section of the Company (MU1) Form.

    Submitted via: NMLS

  13. Step 13

    Loan Origination Employees Compensation: Send written explanation of how mortgage loan originators, processors and underwriters are compensated. The information should address any incentives provided to such employees.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  14. Step 14

    Report of Loan Origination Activity: Send a report listing loans originated during the past 36 months. The report should include the following details for each closed loan: (i) loan amount; (ii) maturity date (iii) date of closing; (iv) borrower’s credit score; (v) interest rate, and (vi) fees charged.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  15. Step 15

    Roster of Loan Origination Employees: Send a listing of all employees or independent contractors engaged in mortgage loan origination activities, including processing and underwriting functions.

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  16. Step 16

    Other Trade Names: If the organization will be operating under a name other than its legal name, such as a “Doing Business As” (D/B/A), or “fictitious” name, the names must be listed under the Other Trade Names section on the NMLS Company Form. Organizations using “fictitious” names or forced D/B/As must select “forced” in the NMLS filing. Applicants must provide a file-stamped copy of the Certificate of Assumed Name from the Secretary of State of New York. Upload this document in NMLS under the Document Type “Trade Name/Assumed Name Registration Certificates” in the Document Uploads section of the Company (MU1) Form. See the Document Upload Quick Guide for formatting instructions, upload instructions and document descriptions and examples.

    Submitted via: NMLS

  17. Step 17

    Word Approval: Organizations must secure the prior approval of the Superintendent to use the following words or any derivative thereof in Business Names, Assumed (d/b/a) Names or Fictitious Names: • Loan • Mortgage • Finance • Investment • Bank NOTE: All applicants must demonstrate compliance with the statutory requirement. A copy of the word approval authorization certificate received from the Department and submitted to the New York Department of State must be provided with the application. Consult the Department’s website for information on obtaining word approval Entity Name Approval | Department of Financial Services (ny.gov)

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

General information

Who is Required to Have This License? Section 501(c)(3) Not-for-Profit Organizations: • Engaged in Mortgage Lending Activities (funding and closing loans in the organizations name) above the statutorily exempt limits outlined in Article 12-D of the New York Banking Law ("NYBL"). • Seeking to have their mortgage loan originators exempted from the licensing provisions of Article 12-E of the New York Banking Law and the Federal Safe Act. Pre-requisites for License Application The organization must: • Conduct its activities in a manner that serves public or charitable purposes • Promote affordable housing, homeownership or similar loans programs, products and services • Exempt under Internal Revenue Code Section 501(c)(3) • Employ a Qualifying Individual ("Qualifier") who has at least two years of experience in underwriting residential mortgage loans or similar lending or credit evaluation experience and at least two years of (i) housing counseling, or (ii) foreclosure counseling experienceApplication Processing Overview If the required jurisdiction (state) specific documents are not received by the Department within 15 days of the electronic filing through the NMLS the application will be withdrawn. Incomplete Application: If an application is determined to be incomplete, the Department will send the applicant a written notice identifying the items and matters that must be addressed for the Department to continue the application review process. If a complete response fully addressing all such items and matters to the satisfaction of the Department is not received within 30 days of the date of such notice, the application will be withdrawn. Note: Partial submission of information or documents in response to the Department’s notice deeming the application incomplete will not result in an extension of the 30 days withdrawal period. Any applicant seeking an approval of the Exempt Mortgage Banker License - NP status following the withdrawal of an application must submit a new application that must include all required information and documents. Approval or Denial After the application has been processed, the applicant will receive written notification of the approval or denial of the application. To review your status or see detailed communication from the regulator, click on the Composite View tab and then click on View License/Registration in NMLS see (License Status Quick Guide) for instruction.

Other New York mortgage licenses

Sourced from the NMLS/CSBS state licensing record, last updated July 17, 2024. Requirements change — confirm against the state agency before filing. Not legal advice.

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