N.Y. Comp. Codes R. & Regs. tit. 3 § 101.4

Current through Register Vol. 46, No. 43, October 23, 2024

Section 101.4 - Information and documents required to be submitted

Each applicant for a mortgage banking license must submit information and documents as set forth below:

(a) Name and address of applicant. Set forth the name, address, principal place of business and telephone and fax numbers of the applicant. If applicable, also state any trade or fictitious names which have been or will be used by the applicant.

(b) Organizational structure and ownership of applicant. State whether the applicant is an individual, corporation, partnership or trust. If an individual, set forth the name, residence address and telephone and fax numbers of the individual applicant. If a corporation, set forth the name, residence address, telephone and fax numbers and percent of each class of outstanding capital stock owned by each executive officer, director and principal stockholder. If a partnership, set forth the name, residence address, telephone and fax numbers and percentage ownership of each controlling member of the partnership. If a trust, set forth the name, residence address and telephone and fax numbers of each trustee and principal beneficiary of the trust. If a corporation, list the number and percentage of stock owned by each stockholder owning less than 10 percent of any class of the outstanding capital stock. If a partnership, state where the articles of partnership were filed and the date of filing. If a corporation, indicate the state of incorporation and the date of filing. List the complete name and address of any branch, subsidiary, or other affiliate of the applicant operating in this State.

(c) Name and address of principal contact person. Set forth the name, complete address and telephone and fax numbers of the person(s) having general responsibility for the applicant to whom all communications from the Banking Department should be addressed and the person(s) responsible for regulatory and financial matters.

(d) Licenses received. List all states in which the applicant, under this or any other name, or any subsidiary or other affiliate of the applicant, is licensed to engage in any of the following: banking, insurance, sales finance, small loan, mortgage lending, insurance premium financing, real estate or securities, together with the name of the operating company and the name and address of the agency responsible for supervising the person or entity. Also, list any other professional licenses held by any of the foregoing.

(e) Prior applications. The applicant, under this or any other name, any subsidiary or other affiliate of the applicant, and, as applicable, any officer, director and principal stockholder of a corporate applicant, any controlling member of a partnership applicant and any trustee and principal beneficiary of a trust applicant shall submit information with respect to any refusal, revocation or suspension of license(s) in this or any other state and/or any prior bankruptcy adjudications or criminal convictions in this or any other state.

(f) Unsafe or unsound banking practices. The applicant, under this or any other name, any subsidiary or other affiliate of the applicant, and, as applicable, any officer, director and principal stockholder of a corporate applicant, any controlling member of a partnership applicant and any trustee and principal beneficiary of a trust applicant shall submit information with respect to any finding of having conducted unsafe or unsound practices while employed as an officer, director, or trustee of a banking organization or having been removed as an officer, director, or trustee of a banking organization by any bank regulatory agency.

(g) Financial information.

(1) The applicant, at the time of application, shall submit audited financial statements showing an adjusted net worth of no less than $250,000 as of the close of its most recent fiscal year. In addition, the applicant shall submit the most recent quarterly financial statements subsequent to such annual statements. If the applicant is a corporation, partnership or trust financial statements, audited if available, shall be submitted for the previous two years if the applicant was in existence for that period. If applicable, submit the most recent consolidated audited financial statements of the applicant's parent corporation.

(2) The applicant, at the time of application, shall submit written documentation from an unaffiliated third party provider that the applicant has a line of credit of no less than $1,000,000. The line of credit shall be provided by a bank, insurance company, or similar credit facility approved by the superintendent.

(3) Prior to obtaining a license, the applicant shall file a surety bond in the principal sum of $50,000 in a form satisfactory to the superintendent or execute a deposit agreement approved by the superintendent coupled with a pledged deposit of securities, funds or other assets in the amount of $50,000 valued at the lower of principal amount or market, pursuant to Part 410 of this Title. Surety bonds and depository agreement forms may be obtained from the Mortgage Banking Division.

(h) Personal information. As applicable, each individual applicant, each director, the three most senior executive officers and, if different, any officer(s) in charge of the New York operations of the licensed mortgage banker and principal stockholder of a corporate applicant, each controlling member of a partnership applicant, or trustee and principal beneficiary of a trust applicant shall complete a personal history questionnaire obtained from the Banking Department. All of the above shall file an authority to release information form. As applicable, each individual applicant, each director, the three most senior executive officers, and, if different, any officer(s) in charge of the New York operations of the licensed mortgage banker and principal stockholder of a corporate applicant, each controlling member of a partnership applicant, or trustee and principal beneficiary of a trust applicant shall submit a signed and acknowledged current, personal financial statement.

(i) Minimum experience qualifications. Set forth the name of the person who meets the minimum experience qualifications as described in Part 410 of this Title. That person shall be either an owner, general partner, trustee or executive officer of the applicant, as applicable, and shall be actively engaged in the daily operations of the mortgage banker.

(j) Corporate, partnership or trade style documents to be submitted, as applicable:

(1) a copy of the certificate of incorporation;

(2) a copy of the qualification to do business in this State;

(3) a copy of the certificate of limited or general partnership;

(4) a copy of an executed partnership agreement;

(5) a certificate of the county clerk that a trade name or "doing business as" certificate has been filed in the office of the county clerk pursuant to section 130 of the General Business Law; and

(6) a copy of an executed trust agreement.

(k) Other documents to be submitted:

(1) affidavit of ownership filed by the applicant;

(2) litigation affidavit describing any legal proceedings against the applicant or against any executive officer, director or principal stockholder of a corporate applicant, controlling member of a partnership applicant, or trustee or principal beneficiary of a trust applicant;

(3) fingerprint cards (New York State NON-CRIMINAL and FBI) for each individual applicant, executive officer, director and principal stockholder of a corporate applicant, controlling member of a partnership applicant, or trustee and principal beneficiary of a trust applicant, together with such fees as may be required for processing the fingerprints;

(4) a background report for each individual applicant, executive officer, director and principal stockholder of a corporate applicant, controlling member of a partnership applicant, or trustee and principal beneficiary of a trust applicant (names of acceptable companies that supply such reports may be obtained from the Banking Department, Mortgage Banking Division);

(5) executed certificate of compliance in accordance with section 296-a of the Executive Law;

(6) taxpayer identification information form for the applicant; and

(7) a surety bond in the principal sum of $50,000 or a deposit agreement coupled with a pledged deposit of securities, funds or other assets in the amount of $50,000 valued at the lower of principal amount or market, pursuant to Part 410 of this Title. Such bond or deposit agreement must be approved by the superintendent. Model forms may be obtained from the Mortgage Banking Division.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 101.4