Reglith

Mortgage licensing / New York

New York Exempt Mortgage Loan Servicer Registration

company licence · NMLS NYEXEMPTSERVICER_C · DFS

Requirements (31)

  1. Step 1

    Corporate Financial Statements: See the License Requirements and Fees Chart on the NMLS Resource Center for details related to this Requirement.

    Submitted via: NMLS

  2. Step 2

    Corporate Financial Statements: An Applicant must upload into NMLS the following corporate financial statement: (A) Audited financial statement for the past three fiscal years prepared by a Certified Public Accountant in accordance with Generally Accepted Accounting Principles and (B) Unaudited financial statement for the most recent quarter signed and affirmed by an executive officer of the company. Financial statements should include a balance sheet, income statement, and statement of cash flows and all relevant notes thereto. If applicant is a start-up company, only an initial statement of condition is required.

  3. Step 3

    Other Trade Name: If operating under a name that is different from the applicant’s legal name, that name (“Trade Name”, “Assumed Name” or “DBA”) must be listed under the Other Trade Names section of the Company Form (MU1). New York State Department of Financial Services does not allow more than two (2) dba’ or assumed names on the Exempt Servicer Registration. Note: Companies using “fictitious” names or forced DBAs must select forced in the NMLS. The trade names used here will count towards the five (5) allowed for the company’s mortgage banker license or mortgage broker registration. The use of a trade name, assumed name, or dba is subject to availability of such name in the State of New York. Pursuant to New York Business Corporation Law, the prior approval of the Superintendent is required if the name includes the following restricted words: Loan, Mortgage, Finance Investment and Banker or any derivative of such words. Consult the Department’s website for information on obtaining word approval

    Submitted via: NMLS

  4. Step 4

    Trade Name/Assumed Name Registration Certificates: If operating under an “Other Trade Name”, upload copies of the following documents: • Filing receipt from the New York Secretary of State evidencing approval of the assumed name. • Recorded or certified copy of the Certificate of Assumed Name filed with the Secretary of State. Note: You must provide the coversheet identifying counties in which you are authorized to use the assumed name. • General Partnerships must provide the approved “Doing Business As Certificate” from the appropriate county clerk’s office. The certificate must have the county clerk’s receipt affixed to the document. Note: If the General Partnership intends to conduct business in multiple counties, please provide an approved certificate from each county in which you intend to conduct business. This document should be named [State-License Type] Trade Name – Assumed Name.

    Submitted via: Upload in NMLS: under the Document Type Trade Name/Assumed Name Registration Certificates in the Document Uploads section of the Company Form (MU1).

  5. Step 5

    Resident/Registered Agent: The Resident/Registered Agent must be listed under the Resident/Registered Agent section of the Company Form (MU1) Note: The resident/registered agent is the entity that will receive service of legal process on behalf of you company in the state identified.

    Submitted via: NMLS

  6. Step 6

    Non-Primary Contact Employees: New York State Department of Financial Services requires that an individual(s) be identified as a Non-Primary Contact for the following areas. These contacts must be listed in the Contact Employees section of the Company Form (MU1). 1. Consumer Complaint (Public) 2. Litigation 3. Consumer Complaint (Regulator)

    Submitted via: NMLS

  7. Step 7

    Qualifying Individual: Each applicant must designate a person or persons to serve as the Qualifying Individual (“Qualifier”) in charge of the mortgage loan servicing activities and be actively engaged in the operations of the applicant. The designated Qualifying Individual must be an owner, general partner, trustee, or executive officer of the applicant. The individual must have five (5) years of independently verifiable experience in the business of servicing mortgage loans, inclusive of loss mitigation and loan modification experience. Servicing experience in other consumer lending industries can be substituted for a portion of the required five (5) years. At the superintendent’s sole discretion, other relevant educational or business experience may be substituted for some of the servicing experience. The Department does not accept verification of experience from the applicant. The minimum standards for professional references verifying the Qualifying Individual’s experience is detailed in the Background Report Instructions posted on the Department’s website. This individual must be listed in the Qualifying Individual section of Company Form (MU1).

    Submitted via: NMLS

  8. Step 8

    Credit Report: See the License Requirements and Fees Chart on the NMLS Resource Center for details related to this Requirement. Note: Credit Report must be submitted for Control Persons - which includes all: • Direct and indirect owners of 10 percent or more of the applicant's voting stock or membership interest • The three most senior executive officers, and • Qualifying Individual (can be submitted as part of an MLO application)

    Submitted via: NMLS

  9. Step 9

    AML/BSA Policy: Upload the most recent version of Anti-Money Laundering (AML) / Bank Secrecy Act (BSA) Policy and the most recent Independent Review of the AML/BSA Program. AML/BSA Policy This document should be named AML/BSA Policy [approval date mm-dd-yyyy]. Independent Review of AML/BSA Program This document should be named AML/BSA Policy Independent Review [review date mm-dd-yyyy].

    Submitted via: Upload in NMLS: under the Document Type AML/BSA Policy in the Document Uploads section of the Company Form (MU1).

  10. Step 10

    Business Plan: Upload a business plan that addresses the applicant’s mortgage servicing activities. The business plan must outline the following information: • Actual and/or projected New York mortgage servicing volume in dollars and number of loans, by lien status. If projected figures are being provided, do not distinguish between lien status. • Products Serviced • Projected growth (36-month period) • Servicing fee schedule • Breakdown of government and/or government agency servicing portfolio, if any. • Plans to obtain GSE or government agency approvals to service • Technology employed in servicing loans • Outsourced servicing activities (include name of third-party service provider) This document should be named [Company Legal Name] Business Plan. Note: If the existing uploaded business plan already includes the above information, an additional document does not need to be uploaded. A company should only upload a single business plan. If state-specific material is required, this information should be added to the existing uploaded business plan.

    Submitted via: Upload in NMLS: under the Document Type Business Plan in the Document Uploads section of the Company Form (MU1).

  11. Step 11

    Certificate of Authority/Good Standing Certificate: Upload a State-issued and approved document (typically by the Secretary of State’s office), dated not more than 60 days prior to the filing of the application through NMLS that demonstrates authorization to do business in the applicant’s state of formation and/or New York. This document should be named [[State prefix] Certificate of Authority OR [State prefix] Certificate of Good Standing].

    Submitted via: Upload in NMLS: under the Document Type Certificate of Authority/Good Standing Certificate in the Document Uploads section of the Company Form (MU1).

  12. Step 12

    Company Staffing and Internal Policies: Upload document(s) including information on staffing and internal organizational policies and procedures. If submitting multiple policies, upload and name each policy separately. The document must include the following information: • Loss Mitigation • Complaint Resolution This document should be named [Name of Policy].

    Submitted via: Upload in NMLS: under the Document Type Company Staffing and Internal Policies in the Document Uploads section of the Company Form (MU1).

  13. Step 13

    Errors and Omissions: Submit proof of errors and omission insurance protecting the applicant from liability arising from a negligent act and/or error or omission in the performance of profession service relating to its mortgage loan servicing activities. If applicable, include power-of-attorney (POA). Applicants are required to have a minimum errors and omission coverage of $300,000. The NY Superintendent of Financial Services must be named as an additional loss payee. See 3 NYCRR 418.12. The full policy must be uploaded. This document should be named Errors and Omissions Insurance.

    Submitted via: Upload in NMLS: under the Document Type Errors and Omissions (Insurance Policy) in the Document Uploads section of the Company Form (MU1).

  14. Step 14

    Fidelity Bond: Submit a fidelity bond at the coverage level required by NY-DFS. Applicants are required to have a minimum Fidelity Bond of $300,000. The NY Superintendent of Financial Services must be names as an additional loss payee. See 3 NYCRR 418.12. The name and address of the principal insured on the bond must exactly match the Full Legal Name, trade name if applicable and address, of the applicant. If applicable, include power of attorney (POA). The full policy must be uploaded. This document should be named Fidelity Bond.

    Submitted via: Upload in NMLS: under the Document Type Fidelity Bond in the Document Uploads section of the Company Form (MU1).

  15. Step 15

    Management Chart: Submit a Management chart displaying the applicant’s directors, officers, and managers (individual name and title). Must also identify compliance reporting and internal audit structure. The management chart must reflect the oversight structure of the mortgage loan servicing operations. This document should be named [Company Legal Name] Management Chart. Note: If the existing uploaded management chart already includes the above information, an additional document does not need to be uploaded. A company should only upload a single management chart.

    Submitted via: Upload in NMLS: under the Document Type Management Chart in the Document Uploads section of the Company Form (MU1).

  16. Step 16

    Organizational Chart/Description: Submit a chart showing (or a description which includes) the percentage of ownership of: • Direct Owners (total direct ownership percentage must equate to 100%) • Indirect Owners • Subsidiaries and Affiliates of the applicant/licensee This document should be named [Company Legal Name] Organizational Chart – Description. Note: If the existing uploaded Organizational Chart/Description already includes the above information, an additional document does not need to be uploaded. A company should only upload a single management chart.

    Submitted via: Upload in NMLS: under the Document Type Organizational Chart/Description in the Document Uploads section of the Company Form (MU1).

  17. Step 17

    Surety Bond: Submit mortgage loan servicing bond in the amount of $250,000 furnished by a surety company authorized to conduct business in New York. The name of the principal insured on the bond must match exactly the full legal name of applicant as authorized by the Secretary of State of New York, including any Other Trade Names. The surety Bond form can be downloaded from the Department's website Mortgage Banking: Guidebooks and Forms | Department of Financial Services (ny.gov) This document should be named [License Type] Surety Bond.

    Submitted via: The Original Mortgage Loan Servicer Surety Bond must be sent to the Department. MAIL TO: New York State Department of Financial Services, Exempt Application Unit, One State Street, New York, NY 10004

  18. Step 18

    Net Worth Requirement: Each Applicant shall demonstrate the ability to maintain adjusted net worth as follows: • Servicing Only (own loans and/or servicing rights – no third-party servicing activities conducted). Net worth of at least $250,000 plus ¼ of 1% of the outstanding principal balance of the aggregate mortgages serviced (regardless of whether the underlying property is located in New York). Servicing Only Worksheet • Third-Party Servicer (only services loans on behalf of another entity). Net worth of at least $250,000 plus ¼ of 1 percent of New York mortgage loans serviced. Third Party Servicing Only Worksheet • Third-Party Servicer and owns mortgage loans with servicing rights or owns mortgage servicing rights. Net worth calculation of at least $250,000 plus ¼ of 1% of the outstanding principal balance of the non-Third-party loans or MSRs and ¼ of 1% of the outstanding principal amount of the New York mortgage loans serviced for a Third-party. Third Party Servicer and Owns Other Mortgage Loans or Servicing Rights Worksheet Please select and complete the appropriate Mortgage Loan Servicer Financial Responsibility Worksheet. The completed worksheet must be signed by an Executive Officer previously vetted by the Department as a control person for the applicant.

    Submitted via: Email to mortgage.exempt@dfs.ny.gov AND MAIL TO: Original signature notarized document to New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  19. Step 19

    Liquid Asset Attestation: Provide an attestation stating that at least 10% of adjusted net worth consist of cash, cash equivalent or readily marketable securities. The attestation must be signed by an executive officer vetted by the Department as a control person of the applicant.

    Submitted via: Email to mortgage.exempt@dfs.ny.gov AND Mail to: Original document to New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  20. Step 20

    Certificate of Compliance: Each applicant must certify that it is in compliance with Section 296-a of the Executive Law in carrying out its debt collection and loan modification activities. Download Form: Mortgage Banking: Guidebooks and Forms | 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

  21. Step 21

    Aggregate Servicing Volume: Provide a report detailing aggregate servicing volume. The report should list the aggregate servicing volume by portfolio type (e.g. FNMA, GNMA, Private Label, etc.). The report must be provided in Microsoft Excel format. Email the Department for access to its encrypted portal for file upload or encrypt the file and send to the Department at the email address listed

    Submitted via: Email to: mortgage.exempt@dfs.ny.gov

  22. Step 22

    Servicing Volume by State: Provide a report detailing servicing volume by state. The report must be provided in Microsoft Excel format and list servicing volume for all states the company currently performs servicing activities. Email the Department for access to its encrypted portal for file upload or encrypt the file and send to the Department at the email address listed

    Submitted via: Email to: mortgage.exempt@dfs.ny.gov

  23. Step 23

    Certification and Affirmation: An executive officer vetted by the Department as a control person for the applicant or that will be vetted as part of this application must provide a signed certification and affirmation form stating that the applicant will immediately notify the Superintendent of any changes to the information furnished in the application and that a designated officer has reviewed the application and certifies that the application does not contain any untrue statement or omission of material facts. Download Certification and Affirmation Form

    Submitted via: Email to mortgage.exempt@dfs.ny.gov AND MAIL TO: Original signature document to New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  24. Step 24

    Non-Profit Organization Affirmation: All non-profit organizations seeking exemption from the mortgage loan servicing requirements pursuant to 3 NYCRR 418.2(e) must provide an affirmation stating the following: • Books and records will be kept for a minimum period of three years after making the final entry with respect to any mortgage loan serviced; • Superintendent is authorized to inspect the books and records upon reasonable notice, and that the applicant will bear all costs and expenses relating to the inspection and cooperate in the event of any consumer complaints; Applicants must also affirm that they will comply with business conduct regulations and the financial responsibility requirements prescribed by the Department, unless granted a waiver, and

    Submitted via: Email to mortgage.exempt@dfs.ny.gov AND MAIL TO: Original signature document to New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004

  25. Step 25

    Resume: The Qualifying Individual for the applicants New York Servicing Registration and the officer responsible for overseeing the applicant’s servicing operations, if different, must submit a resume. The resume must include the individual’s entire work history for the past 10 years. A detail explanation must be provided for all gaps in employment exceeding three months. Note: The month and year of employment must be reflected on the resume.

    Submitted via: Email to: mortgage.exempt@dfs.ny.gov

  26. Step 26

    Litigation Affidavit: Provide a litigation affidavit for the Qualifier and any individual in charge of the mortgage loan servicing operations, if different from one of the top three Executive Officers or Director previously vetted by the Department. Download Litigation Affidavit

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

  27. Step 27

    Background Reports and Background Report Certification:A Background Report and Background Certification Form must be submitted for the Qualifying Individual (Qualifier) and any individual designated overall in charge of the company’s mortgage loan servicing operations, if such individual(s) are different from the Executive Officer(s) or Directors vetted by the Department for the company’s Mortgage Banker License or Mortgage Broker Registration. Access Background Report Certification Form on the Department’s website. Background investigation reportsmust be provided directly to the Department of Financial Services by the private investigation company. For detail instructions regarding the specific components of New York State required background report visit our website: Background Report Instructions.

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

  28. Step 28

    Fingerprint Cards and Fingerprint Certification Form: The Qualifier and any individual designated in charge of the mortgage loan servicing operations, if different from one of the top three Executive Officer or Director of the company, must submit two blue fingerprint cards issued by the Federal Bureau of Investigation (FBI). Fingerprint Cards can be requested via e-mail at fingerprintrequest@dfs.ny.gov. Please seethe Department’s website for New York Fingerprint Instructions

    Submitted via: MAIL TO: New York State Department of Financial Services, Exempt Application Processing Unit, One State Street, New York, NY 10004 Fingerprinting Fees are paid outside the NMLS

  29. Step 29

    Personal Financial Statement: Submit a Personal Financial Statement for the Qualifier and any individual in charge of the mortgage loan servicing operations, if different from one of the top three Executive Officer or Director of the company. Download form Personal Financial Statement

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

  30. Step 30

    Personal Questionnaire: Provide a personal questionnaire for the Qualifier and any individual in charge of the mortgage loan servicing operations, if different from one of the top three Executive Officer or Director of the company. Download form Personal Questionnaire

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

  31. Step 31

    Authority to Release Information: The Qualifier and any individual in charge of the mortgage loan servicing operations, if different from one of the top three Executive Officer or Director of the Company must submit the Authority to Release Form. Download Form: Mortgage Banking: Guidebooks and Forms | 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? This registration is available for certain companies exempt from the mortgage loan servicer registration requirements of Article 12-D, section 590(2)(b-1) of the New York Banking Law (“Banking Law”). • Registered Mortgage Brokers • Licensed Mortgage Bankers In addition, non-profit organizations holding an Exempt Mortgage Broker Registration - NP or an Exempt Mortgage Banker License-NP, can apply for a NY Exempt Mortgage Loan Servicer Registration if the non-profit organization does not service loans for third parties. Section 3 NYCRR 418.2(e). Servicing mortgage loans means receiving any scheduled periodic payments from a borrower pursuant to the terms of any mortgage loan, including amounts for escrow accounts under section 6-k of the Banking Law, title 3-A of article IX of the Real Property Tax Law or section 10 of 12 U.S.C. 2609, and making payments to the owner of the loan or other third parties of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the mortgage loan documents or servicing contract. In the case of a home equity conversion mortgage or reverse mortgage as referenced in section 6-h of the Banking Law, sections 280 and 280-a of the Real Property Law or 24 CFR 3500.2, servicing includes making payments to the borrower. The term also includes a person who makes or holds a mortgage loan if such person also directly or indirectly is the holder of the mortgage servicing rights or has been delegated servicing functions for the mortgage loan. Activities Authorized Under This License This license authorizes the following activities… • First mortgage servicing • Subordinate lien mortgage servicing • Reverse mortgage servicing • Third party first mortgage servicing • Third party subordinate lien mortgage servicing Pre-Requisites for License Applications • Hold an active NY Mortgage Banker License or NY Mortgage Broker Registration • Net worth – refer to 3 NYCRR 418.12(a) for minimum requirements • Surety Bond - $250,000 • Errors and Omission Coverage – minimum $300,000 (refer to 3 NYCRR 418.12(c)) • Liquid Assets (cash, cash equivalents or readily marketable securities) – minimum 10% of adjusted net worth • Qualifier Experience – five years verifiable experience in the business of servicing mortgage loans, inclusive of loss mitigation and loan modification experience. Servicing experience in other consumer lending industries can be substituted for a portion of the required five (5) years. At the superintendent’s sole discretion, other relevant educational or business experience may be substituted for some of the servicing experience. New York State Department of Financial Services does not issue paper licenses for this license type. Application Processing Overview Incomplete Application If an application is determined to be incomplete, the applicant will receive 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 exempt mortgage loan servicing registration following the withdrawal of an application must submit a new application that includes all required information, documents, and fees. If the required jurisdiction (state) specific documents are not received by the Department within 10 days of the electronic filing through the NMLS the application will be withdrawn. Approval or Denial 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. Upon approval of the application, the Department will issue an approval letter to the applicant. If the application is denied, the applicant will receive notification of denial.

Other New York mortgage licenses

Sourced from the NMLS/CSBS state licensing record, last updated July 18, 2024. Requirements change — confirm against the state agency before filing. Not legal advice.

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