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New York State Department of Financial Services · NY

Part 410 of the Superintendent’s Regulations Application Definition

June 25, 2004

Summary

The New York Department of Financial Services specifies that the definition of an application for calculating surety bond or deposit requirements under Part 410 aligns with the Regulation B definition found in 12 CFR 202.2(f). This establishes that an application is any oral or written request for credit submitted according to standard creditor procedures.

Industry Letter


June 25, 2004

To The Institution Addressed:

Re: Part 410 of the Superintendent’s Regulations Application Definition


As a result of the new requirement set forth in Part 410 of the Superintendent’s Regulation mandating that mortgage brokers either obtain a surety bond or enter into a deposit agreement, the industry has inquired as to what constitutes an “application” for the purpose of calculating the amount of the bond or deposit. The new requirement becomes effective July 1,2004.

The Mortgage Banking Division has consistently used the definition of “application” that is set forth in Regulation B of the Federal Reserve System (12 CFR 202) (Equal Credit Opportunity). Under Section 202.2(f) of Regulation B, an “application” is defined as “an oral or written request for the extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested.”

Therefore the required dollar amount of the bond or deposit agreement must be calculated utilizing this definition.

Should you have any questions on this please feel free to contact me at 212-709-5540.

Very truly yours,

 

Kenneth Bielemeier
Deputy Superintendent of Banks

Source: https://www.dfs.ny.gov/industry_guidance/industry_letters/il20040625_part410_application_definition

Common questions

What does "Part 410 of the Superintendent’s Regulations Application Definition" cover?
The New York Department of Financial Services specifies that the definition of an application for calculating surety bond or deposit requirements under…
Which agency issued this update?
This update was issued by New York State Department of Financial Services.
When was it published?
It was published on June 25, 2004.

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