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- Referred to banks
- Referred to banks
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Sponsor's memo
BILL NUMBER:S5450
Title of bill
An act to amend the banking law, in relation to suspending the license of mortgage bankers and brokers for cause
Purpose
To make the suspension and revocation process for mortgage bankers and mortgage brokers more effective and more efficient.
Summary of provisions
The bill amends Section 595 of the Banking Law to modify the process for suspending or revoking the authorization of a mortgage banker or mortgage broker.
The bill allows the Superintendent to suspend a license or registration without having to hold a hearing in cases where the entity has failed to make a required payment to the Department, failed to submit a required report to the Department, failed to maintain a required surety bond or line of credit, or has filed a bankruptcy petition. If the deficiency has not been cured within 90 days, the license or registration is automatically terminated. It allows suspension for a maximum of 60 days pending investigation. The bill also provides that a license or registration may be surrendered only with the prior approval of the Superintendent.
Justification
These amendments would help make the Department of Financial Services' suspension and revocation process for mortgage bankers and mortgage brokers more effective and cost-efficient. One ongoing problem and expense has been the need to conduct hearings, with hearing officers, for situations where there are no facts in dispute, such as failure to make a required report or maintain a required surety bond. The bill allows suspension without a hearing in those cases, and provides for automatic termination if the problem has not been fixed within 90 days.
By requiring prior approval for the surrender of a license or registration, this bill ensures that regulated entities are not able to short-circuit the regulatory process and evade responsibilities for their actions.
Legislative history
These provisions were part of bill S.5463 of 2011-12, which passed the Senate in 2011 and 2012.
Fiscal implications
This bill should reduce the administrative costs incurred by the Department of Financial Services in having to conduct hearings when there is no factual dispute (such as situations where a regulated entity has not paid its assessment or has failed to file a required report).
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.