N.Y. Comp. Codes R. & Regs. tit. 3 § 413.8

Current through Register Vol. 46, No. 25, June 18, 2024

Section 413.8 - Suspension or termination of approval to act as an fha mortgage loan correspondent

(a) The superintendent may suspend for 60 days the approval of a registered mortgage broker to act as an FHA mortgage loan correspondent if at any time he or she shall disapprove the sole sponsor or if the sole sponsor shall terminate its agreement with the FHA mortgage loan correspondent during which time the loan correspondent shall submit a new sponsor to the superintendent for approval.

(b) The superintendent may terminate the approval of a registered mortgage broker to act as an FHA mortgage loan correspondent if at any time:

(1) the 60-day suspension set forth in subdivision (a) of this section has expired without the loan correspondent having obtained approval from the superintendent for a new sponsor;

(2) the FHA mortgage loan correspondent fails to be in compliance with this Part or with any other law or regulation administered by the superintendent to which it is subject; or

(3) the FHA mortgage loan correspondent fails to remain in good standing with the Secretary of HUD.

(c) Within 72 hours after receipt of written notice from the superintendent of the termination of approval to act as an FHA mortgage loan correspondent, the mortgage broker shall return the certificate of registration indicating its authority to act as an FHA mortgage loan correspondent. Upon return of the certificate, the superintendent shall issue a standard mortgage broker certificate of registration.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 413.8