Mortgage licensing / New York

New York Student Loan Servicer License

company licence · NMLS NYSTUDENTLNSERVICER_C · DFS

Requirements (26)

1. Step 1

   Credit Report for Control Persons: $15 per control person.

   Submitted via: NMLS (Filing submission)

2. Step 2

   Submission of Company Form (MU1): Complete and submit the Company Form (MU1) in NMLS. This form serves as the application for the license/registration through NMLS.

   Submitted via: NMLS

3. Step 3

   Financial Statements: Upload two most recent years audited financial statements prepared by a Certified Public Accountant in accordance with Generally Accepted Accounting Principles dated within 90 days of your fiscal year end. 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. If audited financial statements are unavailable, provide an unaudited statement and include an explanation. Note: Financial statements are uploaded separately under the Filing tab and Financial Statement submenu link. See the Financial Statements Quick Guide for instructions.

   Submitted via: NMLS

4. Step 4

   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). NY-DFS does not limit the number of other trade names. If operating under an “Other Trade Name”, upload documentation regarding ability to do business under that trade name. This document should be named NY Student Loan Servicers Trade Name – Assumed Name. Note: Corporations, limited liability companies, and limited partnerships proposing to conduct business under an assumed name (e.g., DBA) must apply to the Secretary of State for authorization to do so. Individuals, general partnerships, and limited liability partnerships proposing to conduct business under an assumed name must apply to the County Clerk of each county in which the business will operate for permission to do so. In either case, certified copies of the applicable authorization must also be submitted to NY-DFS. See also the Restricted Words item below.

   Submitted via: NMLS 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 your company in the state identified.

   Submitted via: NMLS

6. Step 6

   Primary Contact Employees: The following individuals must be entered into the Contact Employees section of the Company Form (MU1). • Primary Company Contact. Primary Consumer Complaint Contact.

   Submitted via: NMLS

7. Step 7

   Non-Primary Contact Employees: NY-DFS 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). Noteyourcontacts respective areas under Area(s) of Responsibility. • Accounting • Licensing • Consumer Complaint (Public) • Consumer Complaint (Regulator) • Legal Pre-Exam Contact

   Submitted via: NMLS

8. Step 8

   Disclosure Questions: Provide a complete and detailed explanation and document upload for each “Yes” response to Disclosure Questions made by the company or related control persons (MU2). See the Company Disclosure Explanations Quick Guide for instructions.

   Submitted via: Upload in NMLS in the Disclosure Explanations section of the Company Form (MU1) or Individual Form (MU2).

9. Step 9

   Qualifying Individual: TheQualifying Individual section is not required to be completed for NY-DFS on the Company Form (MU1).

10. Step 10

    Control Person (MU2) Attestation: Complete the Individual Form (MU2) in NMLS. This form must be attested to by the applicable control person before it is able to be submitted along with the Company Form (MU1).

    Submitted via: NMLS

11. Step 11

    Credit Report: Individuals in a position of control are required to authorize a credit report through NMLS. Individuals will be required to complete an Identity Verification Process (IDV) along with an individual attestation before a license request for your company can be filed through NMLS. This authorization is made when the Individual Form (MU2) is submitted as part of the Company Form (MU1).

    Submitted via: NMLS

12. Step 12

    Business Plan: Upload a business plan outlining the following information: • Type(s) of student loans serviced (Direct, FFEL, Perkins, private) • Actual and/or projected New York servicing volume, by dollar amount for each type of student loan serviced • Projected growth • Fee schedule • Operating structure the applicant intends to employ • Technology or software used for servicing student loans • Outsourced servicing activities • Efforts to minimize delinquency and default • Any additional information the applicant deems pertinent and which may bear upon a determination that the business will be conducted honestly, fairly, and efficiently within the intent and purpose of the law and in such manner as to command the confidence of the community. 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).

13. Step 13

    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 NY. Note: This does not apply to foreign governmental or foreign quasi-governmental entities 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).

14. Step 14

    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(s) must include the following information: • Policies and procedures for informing borrowers of available repayment options • Policies and procedures for applying payments, including nonconforming payments such as over and underpayments • Policies and procedures for student loans that are delinquent or in default • Policies and procedures for servicing transfers (ensuring repayment status and payment history information is included) • Policies and procedures for maintaining records • Policies and procedures for responding to complaints and inquiries • Policies and procedures for communicating with a borrower’s authorized representative This document(s) should be named Company Name of Policy / Procedure.

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

15. Step 15

    Document Samples: Upload copies of the following sample documents used in the regular course of business in connection with this license: • Transfer of servicer • End of deferment or forbearance period approaching • Information on Income Driven Repayment and Loan Forgiveness options (annual) • Notice of default and/or delinquency • Acknowledgment of receipt of borrower inquiry or complaint • Notice of resolved complaint, with name and contact of rep who was responsible. • Billing statement, either paper or electronic • Notice of loan transfer to debt collections agency These documents 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).

16. Step 16

    Errors and Omissions: Submit your policy if your company has obtained an errors and omissions insurance protecting the applicant from liability arising from a negligent act, and/or error or omission in the performance of professional service. If applicable, include power of attorney (POA). 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).

17. Step 17

    Formation Documents: Determine classification of applicant’s legal status and submit a State certified copy of the requested applicable documentation detailed below. Original formation documents and all subsequent amendments, thereto including a list of any name changes. Sole Proprietor • NY-DFS will request additional documentation for sole proprietors on a case by case basis. Unincorporated Association: • By-Laws or constitution (including all amendments). General Partnership: • Partnership Agreement (including all amendments). Limited Liability Partnership: • Certificate of Limited Liability Partnership; and • Partnership Agreement (including all amendments). Limited Partnership: • Certificate of Limited Partnership; and • Partnership Agreement (including all amendments). Limited Liability Limited Partnership: • Certificate of Limited Liability Limited Partnership; and • Partnership Agreement (including all amendments). Limited Liability Company (“LLC”): • Articles of Organization (including all amendments); • Operating Agreement (including all amendments); • IRS Form 2553 or IRS Form 8832 if S-corp treatment elected; and • LLC resolution if authority not in operating agreement. Corporation: • Articles of Incorporation (including all amendments); • By-laws (including all amendments), if applicable; • Shareholder Agreement (including all amendments), if applicable; • IRS Form 2553 if S-corp treatment elected; and • Corporate resolution if authority to complete application not in By-Laws or Shareholder Agreement, as amended, as applicable. Not for Profit Corporation • Documents requested of a Corporation; and • Proof of nonprofit status • Internal Revenue Service (“IRS”) 501(c)(3) designation letter; or • statement from a State taxing body or the State attorney general certifying that: (i) the entity is a nonprofit organization operating within the State; and (ii) no part of the entity’s net earnings may lawfully benefit any private shareholder or individual; or • entity's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or • Any of the three preceding items described, if that item applies to a State or national parent organization, together with a statement by the State or parent organization that the applicant is a local nonprofit affiliate. Trust (Statutory) • Certificate of Trust; and • Governing instrument (all amendments). This document should be named Formation Documentation [Date of Creation (MM-DD-YYYY)]

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

18. Step 18

    Management Chart: Submit a Management chart displaying the applicant’s directors, officers, and managers (individual name and title). Must also identify all front office business units and back office reporting for compliance, internal audit and IT infrastructure. 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).

19. Step 19

    Organizational Chart/Description: Submit a chart showing (or a description which includes) the percentage of ownership of: • Direct Owners; • Indirect Owners; and • 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).

20. Step 20

    Credit Report Explanations: Submit a line by line, detailed letter of explanation of all derogatory credit accounts along with proof of payoffs, payment arrangements and evidence of payments made, or evidence of any formal dispute filed (documents must be dated). Accounts to address include, but are not limited to: collections items, charge offs, accounts currently past due, accounts with serious delinquencies in the last 3 years, repossessions, loan modifications, etc. Note: Items regarding bankruptcy, foreclosure actions, outstanding judgments or liens, or delinquent child support payments should be addressed in the Disclosure Explanations section of your Individual Form (MU2). This document should be named Credit Report Explanations – Sub Name – Document Creation Date.

    Submitted via: Upload in NMLS: under the Document Type Credit Report Explanations in the Document Uploads section of the Individual Form (MU2).

21. Step 21

    Legal Name/Status Documentation: Upload legal documentation of legal name or legal status. This may be certified copies of divorce decree, marriage certificate, copy of driver’s license, passports, etc. This document should be named [Document Name] (Ex. Driver’s License, Marriage Certificate, etc.).

    Submitted via: Upload in NMLS: under the Document Type Legal Name/Status Documentation in the Document Uploads section of the Individual Form (MU2).

22. Step 22

    Authority to Release Information: Each control individual must submit the Authority to Release Information Form. This document should be named NY Authority to Release Information.

    Submitted via: Authority to Release Information: Each control individual must submit the Authority to Release Information Form. This document should be named NY Authority to Release Information.

23. Step 23

    Verification of Experience: Providea license specific resume with detailed job descriptions and/or duties performed evidencing experience in the industry the company is applying for a license. Detailed job descriptions and duties with all employers need to be incorporated into a resume to demonstrate experience related to the specific state license being applied for. This document should be named [NY Verification of Experience] –Student Loan Servicers License.

    Submitted via: Upload in NMLS: under the Document Type Verification of Experience in the Document Uploads section of the Individual Form (MU2).

24. Step 24

    Restricted Words: If the name of the applicant contains certain words, the approval of the Superintendent must be obtained. This applies to licensees as well as other non-licensed entities. The restricted words include, for example, “acceptance,” “bank,” “finance,” “investment,” “loan,” “mortgage,” “savings,” “trust” and their derivatives. The process for approval for the use of any of these restricted words can be found here.

    Submitted via: Mail to NY-DFS Attn: Office of General Counsel, Name Approval One State Street New York, NY 10004

25. Step 25

    Fingerprints for Control Individuals: To be determined.

    Submitted via: Mail to NY-DFS

26. Step 26

    Age Affirmation: Provide an affirmation that the applicant, or its members, officers, partners, directors and principals as may be appropriate, are at least twenty-one years of age. Click here for Age Affirmation Memo. The email subject line should state [Company/ Applicant Name] – Age Affirmation.

    Submitted via: Email to DFS SLS Licensing Dept.:SLSLicensing@dfs.ny.gov

General information

Other New York mortgage licenses

• Exempt Mortgage Banker Branch License-MH
• Exempt Mortgage Banker License - UW
• Exempt Mortgage Banker License-MH
• Exempt Mortgage Banker License-NP
• Exempt Mortgage Broker Registration-MH
• Exempt Mortgage Broker Registration-NP
• All 17 New York licenses

Sourced from the NMLS/CSBS state licensing record, last updated April 14, 2023. Requirements change — confirm against the state agency before filing. Not legal advice.