3 CRR-NY 38.8NY-CRR
3 CRR-NY 38.8
3 CRR-NY 38.8
38.8 Administrative actions and penalties.
(a) Disciplinary action. Banking Law, sections 595 and 595-a provide that a mortgage broker, mortgage banker or exempt organization may be subject to disciplinary action by the Banking Department for violations of article 12-D, the regulations promulgated thereunder, or violations of State or Federal law indicating that the entity is unfit to engage in the business of brokering or making mortgage loans in this State. Disciplinary action may include:
(1) temporary or permanent deletion from the mortgage broker roll;
(2) suspension or revocation of a license to engage in the business of mortgage banking; and
(3) fines assessed by the Banking Department, which shall be limited to $5,000 per violation, $100,000 per proceeding.
(b) Grounds for disciplinary action.
A registrant, licensee or exempt organization may be subject to such disciplinary action as may be determined appropriate by the superintendent after notice and hearing on the following grounds:
(1) fraud or bribery in securing a registration or license;
(2) the making of any false statement in an application for registration, licensing or exemption, which false statement would have been grounds for rejection of the application;
(3) the making of any false statement on any form or document requested by the superintendent for examination or review pursuant to Banking Law, article 12-D, Superintendent's Regulations Part 410, Supervisory Policy and Procedure G111 or Part 39 of this Title;
(4) a pattern of conduct indicating incompetence or untrustworthiness;
(5) violation of the disclosure requirements or prohibitions contained in sections 38.2-38.7 of this Part;
(6) conviction of any crime which would have a bearing on the fitness or ability of a registrant or licensee to conduct its business; and
(7) failure to perform its duties and responsibilities in an honest, fair and reasonable manner.
(c) Administrative hearings shall be conducted in accordance with Supervisory Policy and Procedure G111 of this Title.
3 CRR-NY 38.8
Current through January 31, 2023
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