N.Y. Comp. Codes R. & Regs. tit. 3 § 420.8

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

Section 420.8 - Suspension and termination of license

(a) Failure to pay annual license fee.

(1) All MLO licenses shall terminate on the annual expiration date unless the annual license fee is paid prior to or upon the date the payment is due.

(2) In the event such fee is not paid by the due date, the department shall notify the originating entity of the termination of the license.

(3) If such license expires because the annual fee has not been paid by the due date, the license may be reinstated if such fee is paid within 60 days after such due date.

(b)Failure to timely complete education requirements.

Each licensed MLO shall complete and provide evidence to the superintendent through the NMLS or otherwise as directed by the superintendent of the completion of his or her annual education requirements by the annual expiration date of such MLO's license. Failure to timely complete and demonstrate such completion shall cause the MLO's license to be terminated on such annual expiration date, irrespective of whether the MLO has made satisfactory payment of the annual license fee. The license may be reinstated if the MLO:

(1) demonstrates to the superintendent's satisfaction that the applicable education requirements were completed within 60 days of the annual expiration date; or

(2) satisfies any conditions provided by the superintendent pursuant to section 420.12(b) of this Part.

(c)Failure to file reports or maintain bond.

The superintendent may, without notice or a hearing, issue an order suspending any license:

(1) 30 days after the date the mortgage loan originator fails to file any report required to be filed with the superintendent pursuant to the authority provided in article 12-E; or

(2) immediately upon termination of any required surety bond with respect to the licensee if the superintendent has not received evidence of a satisfactory replacement bond. If the superintendent has issued an order suspending a license pursuant to this authority, such license may be reinstated, if the superintendent determines, in his or her sole discretion, that the licensee has cured all deficiencies set forth in such order by the close of business 90 days after the date of such suspension order. Otherwise, unless the superintendent has, in his or her sole discretion, extended such suspension, the license of such mortgage loan originator shall be deemed to be automatically terminated by operation of law at the close of business on such 90th day.

(d) Notification of suspension or termination.

Whenever a license shall have been suspended or terminated in accordance with this section, the superintendent shall notify the MLO and the affected originating entity that the license has been suspended or terminated and that the MLO may not engage in mortgage loan originating in this State.

(e)Civil and criminal liability.

A suspension or termination of a license in accordance with this section shall not affect such MLO's civil or criminal liability for acts committed prior to such suspension or termination or its obligations to the superintendent for assessments, fees or administrative actions with respect to the periods before such suspension or termination.

(f)Effect of suspension or termination.

No suspension or termination of an MLO license shall impair or affect the obligations under any preexisting lawful contract between any originating entity of such MLO and any person.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 420.8

Adopted, New York State Register October 1, 2014/Volume XXXVI, Issue 39, eff.10/1/2014