Reglith

Mortgage licensing / New York

New York Reverse Mortgage Lending Dual Authority

company licence · NMLS NYREVERSELENDER_C · DFS

Requirements (14)

  1. Step 1

    Corporate Financial Statements: An Applicant must upload into NMLS the following corporate financial statement: (A) Audited financial statement for the past two 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. Adjusted Net Worth – $5, 000,000 plus ½ of 1 percent of the total volume originated in excess of $15,000,000 up to a maximum required adjusted net worth of $25,000,000.

    Submitted via: NMLS

  2. Step 2

    Other Trade Name: The New York Department of Financial Services does not grant approval for the use of Other Trade Names under this NY Reverse Mortgage Lending (Dual) Authority. If you intend to use a name that is different from the applicant’s legal name in your reverse mortgage operations, that name (“Fictitious Name, Trade Name”, “Assumed Name” or “DBA”) must be listed under the Other Trade Names section for the company’s NY Mortgage Banker License. See NY Mortgage Banker License for further instructions,

  3. Step 3

    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

  4. Step 4

    Company Staffing and Internal Policies: Upload document(s) including information on staffing and internal organizational policies and procedures addressing the following: • Reverse Mortgage Lending Policy 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).

  5. Step 5

    Document Samples: Upload copies of the following documents used in the regular course of business in connection with this authority: • Reverse Mortgage Disclosures forms provided to prospective borrower This document should be named [Name of Document Sample].

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

  6. Step 6

    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 reverse mortgage lending 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).

  7. Step 7

    Federal Housing Administration Approval Letter and Recertification: Submit a copy of the following: • Title II Non-Supervised Mortgagee Approval Letter • Recertification for Calendar year 2020. Note: Recertification must reflect authority to engage in HECM lending activities.

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov

  8. Step 8

    Standby Letter of Credit: Submit a copy of an irrevocable standby letter of credit in favor of the lender in an amount necessary to fund all reverse mortgage loans requirements anticipated to be made over the next 12 months or $3,000,000 whichever is greater. The standby letter of credit must meet the following guidelines: • Issued by a financial institution that is not affiliated with the applicant; Initial term of at least two years;

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov

  9. Step 9

    Surety Bond: Each applicant must mail an original Cooperative Reverse Mortgage Surety Bond in the amount of $100,000 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 the applicant, as authorized by the Secretary of State of New York. Note: Surety bonds are not required to be submitted until the application has been approved. Applicants must use the Cooperative Reverse Mortgage Surety Bond Form posted on the Department’s website under Mortgage Banking: Common Forms and Resources | Department of Financial Services (ny.gov)

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov Note: The Original Signature Document must also be received by the Department within 5 days of the submission of the application through NMLS Mail to: NYS Department of Financial Services Attention: Mortgage Banking – Application Unit One State Street, New York, NY 10004

  10. Step 10

    Letter of Assurance: Provide an original signature letter on the company’s letterhead stating that the applicant is, as of the date of the letter, in compliance with FHA’s Non-Supervised Mortgagee requirements for the following: • Fidelity Bond and Errors and Omission Coverage • Line of Credit • Adjusted Net Worth and Liquid Assets Note: the applicant must make such attestation based on loan activity volume where FHA guidelines requires activity volume as part of the calculation for minimum requirements and compliance. The letter must be signed by an Executive Officer vetted and approved by NY-DFS.

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov Note: The Original Signature Document must also be received by the Department within 5 days of the submission of the application through NMLS Mail to: NYS Department of Financial Services Attention: Mortgage Banking – Application Unit One State Street, New York, NY 10004

  11. Step 11

    Lenders A.M. Best Report: Submit a copy of the lender’s report issued by A.M. Best Company

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov

  12. Step 12

    Trustee Agreements: Submit a copy of any trust agreement entered into between the lender and a trustee pursuant to 3 NYCRR 79.5(g)(2).

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov

  13. Step 13

    FHA Adjusted Net Worth Computation: Provide an FHA Adjusted Net Worth Computation for the most recent month-end prior to the submission of the NY Reverse Mortgage (HECM) Lending Authority application. Note: If the computation reflects a deficiency, provide a copy of the Notice of Material Event submitted to FHA. If the notice has not been submitted, please provide an explanation and the date such notice will be submitted.

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov

  14. Step 14

    Advertisement: Provide samples of advertisement, as applicable, utilized to solicit reverse mortgage business: • YouTube video – send link to video • Websites – provide the URL • Printed Advertisement – send photocopies • Television – provide recorded copy and script • Radio - provide copy of recording

    Submitted via: Email to: MBELECTRONIC@dfs.ny.gov OR Mail to: NYS Department of Financial Services Attention: Mortgage Banking – Application Unit, One State Street, New York, NY 10004

General information

Who Is Required to Have This License? New York State licensed mortgage bankers that engage in the business of making reverse mortgage loans on 1-4 family residential property or cooperative apartment units located in the State of New York. This authority is required for entities seeking to originate both: Proprietary Reverse Mortgage Loans under: • Section 280 and 280-a of the New York Real Property Law • Section 6-O*2 of the New York Banking Law, and Federal Housing Administration (“FHA”) – Home Equity Conversion Mortgage (HECM) [must provide documentation supporting FHA’s approval to originate HECMs] Making a reverse mortgage loans means for compensation or gain either directly or indirectly, advancing funds, offering to advance funds, or making a commitment to advance funds to an applicant for a reverse mortgage loan or a mortgagor as a reverse mortgage loan. Pursuant to 3 NYCRR 79.3(a) “No person or entity may engage in the business of making a reverse mortgage loan unless they are licensed to make mortgage loans pursuant to section 591 of the Banking Law or are an exempt organization.” Also, pursuant to 3 NYCRR 79.3(b) “no person or entity may engage in the business of making a reverse mortgage loan unless they have applied and are granted such right by the superintendent.” Activities Authorized Under This License This license authorizes the following activities: • Reverse Mortgage Lending Pre-Requisites for License Applications • Must hold a valid NY Mortgage Banker License • Must be an approved FHA Non-Supervised Lender with Title II HECM Lending Authority • Must meet financial responsibility requirements of Part 410.1(b) • Adjusted Net Worth – $5, 000,000 plus ½ of 1 percent of the total volume originated in excess of $15,000,000 up to a maximum required adjusted net worth of $25,000,000. The New York State Department of Financial Services (the “Department”) does not issue paper licenses for this authority 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 reverse mortgage lending authority for proprietary and HECM loans 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 8, 2024. Requirements change — confirm against the state agency before filing. Not legal advice.

Stop missing the rule that costs you a loan.