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History
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Requires all mortgage brokers to be licensed, establishes certain education requirements, and establishes a mortgage broker licensing exam
In Assembly Committee · Banks · Sponsor Michael Benjamin
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S8204
Title of bill
An act to amend the banking law, in relation to requiring all mortgage brokers to be licensed, establishes certain educational requirements through rules and regulations promulgated by the banking board, and directs and authorizes the superintendent to establish a mortgage broker licensing exam
Purpose or general idea of bill
To require all mortgage brokers to be licensed through a mortgage broker licensing examination arranged and managed by the banking department.
Summary of specific provisions
Section 1. Paragraph (a) of subdivision 2 and subdivision 3 of section 590 of the banking law, as added by chapter 571 of the laws of 1986, are amended. The amendments state that no person, partnership, association, corporation or other entity shall engage in the business of making mort- gage loans without first obtaining a license from the superintendent in accordance with the licensing procedure provided in this article and such regulations may be promulgated by the banking board or prescribed by the superintendent. The banking board will be authorized and empowered to promulgate regulations consistent with the purposes of this article, including: education requirements and the rules and regulations necessary for the enforcement of this article.
Section 2. Subdivision 1 of section 592-a of the banking law, as amended by section 18 of D1 of chapter 109 of the laws of 2006, is amended. If the superintendent finds the applicant to have met all educational requirements established by the banking board, passed the licensing examination for mortgage brokers, and fits the characteristics set by the superintendent, then the applicant shall be registered on a roll maintained by the banking department.
Justification
In the July, 2008, New York State Commission of Investigation's "A Perfect Storm: Easy Money and the Mortgage Meltdown, The Subprime Mort- gage Crisis in New York State", the commission concludes its report by recommending that the State enact legislation mandating that mortgage brokers be licensed. This bill addresses the commission's concerns that the public is in financial danger when unlicensed individuals with little or no experience in the mortgage industry are permitted to coun- sel the average homebuyer about purchasing a home and to valuing that asset. This legislation follows their recommendations by establishing minimum requirements and standards for individuals to demonstrate their ability to serve the public as a mortgage broker. This will ensure that New York State residents receive information from trained, qualified and screened brokers when deciding to purchase a house.
Prior legislative history
2007-08: A.11844 - Referred to Banks
Fiscal implications
Unknown.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.