3 CRR-NY 418.2NY-CRR
3 CRR-NY 418.2
3 CRR-NY 418.2
418.2 Mortgage loan servicer registration; exemptions.
Section 590(2)(b-1) of the Banking Law provides that no person, partnership, association, corporation or other entity shall engage in the business of servicing mortgage loans with respect to any property located in this State without first being registered with the superintendent as a mortgage loan servicer. A person servicing mortgage loans made under the Power New York Act of 2011 (chapter 388 of the Laws of 2011) shall not thereby be deemed to be engaged in the business of servicing mortgage loans. All servicers, including third-party servicers, engaged directly or indirectly in servicing mortgage loans, are required to register hereunder. When a mortgage loan servicer delegates servicing of one or more mortgage loans to another servicer without transferring ownership of the mortgage servicing rights, it remains obligated to comply with all requirements of this Part with respect to the servicing of such loan mortgage loan(s). The sub-servicer likewise remains responsible under this Part. The registration provisions of this Part shall not apply to the following persons, provided that each such exempt person notifies the superintendent that it is servicing mortgage loans in this State and complies with the regulations applicable to mortgage loan servicers (other than those regarding registration):
(a) Exempt organization.
Any insurance company, banking organization, foreign banking corporation licensed by the superintendent or the Comptroller of the Currency to transact business in this State, national bank, Federal savings bank, Federal savings and loan association, Federal credit union, or any bank, trust company, savings bank, savings and loan association, or credit union organized under the laws of any other state, or any instrumentality created by the United States or any state with the power to make mortgage loans.
(b) Mortgage banker.
Any person licensed pursuant to section 592 of the Banking Law to engage in the business of making mortgage loans.
(c) Mortgage broker.
Any person registered pursuant to section 592-a of the Banking Law to engage in the business of soliciting, processing, placing or negotiating mortgage loans for others, or offering to solicit, process, place or negotiate mortgage loans for others.
(d) Assisting in incidental activities.
No person shall be subject to the registration provisions of this Part if he or she is employed by an exempt organization, a mortgage banker or mortgage broker, or a mortgage loan servicer to assist in the servicing of mortgage loans for such employer. The preceding sentence shall not affect the obligation of any person to be licensed as a mortgage loan originator when required under article 12-E of the Banking Law.
(e) Exemptions approved by the superintendent.
Other persons may be exempted with the prior written approval of the superintendent for good cause.
3 CRR-NY 418.2
Current through March 31, 2022
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: JULY 31, 2023, is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Admisnistrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of the NYS Rules.