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New York Mortgage Licensing
New York Mortgage Licensing

New York State uses licensing to regulate and monitor the mortgage brokering and lending activity. The licensing is issued by two state agencies, Division of Licensing Services (DLS) and the NYS Department of Financial Services (DFS). DLS, which is within the NYS Department of State, manages the licensing of commercial mortgage and real estate activity. DFS manages the licenses for residential mortgage brokerage and mortgage banking

Source :www.MortgagesAnalyzed.com

Who Needs a License in New York?

DLS Licenses for Commercial Mortgage and Real Estate Activities

If you intend to perform any of the following activities then you need a Salesperson or a Broker license that is issued by DLS.

  1. Sale, purchase, or exchange of real estate property
  2. Obtaining listings for sale of real estate property
  3. Assist buyers in identifying and purchasing a property
  4. Rental of real estate property
  5. Collecting rents
  6. Negotiating commercial mortgages

DFS Licenses for Residential Mortgage Activities

You will need a license issued by DFS if you intend to engage in the business of mortgage loan originating with respect to New York residential real estate and perform any of the following activities:

  1. Taking residential mortgage loan application
  2. Offering or negotiating terms of a residential mortgage loans
  3. Supervising persons engaged in loan processing or underwriting
  4. Providing loan processing or underwriting functions when working as an independent contractor
  5. Servicing of residential mortgage loans
Source :www.MortgagesAnalyzed.com

Types of Licenses

DLS Commercial Mortgage and Real Estate Licenses

  1. Real Estate Salesperson License: A real estate salesperson is a licensed professional who works under the supervision of a licensed Broker as an agent of the Broker.
  2. Real Estate Broker License: A real estate broker is a licensed entity that is engaged in the business of real estate and mortgage brokering. A broker license is further broken down into various categories based on the organizational structure.

DFS Residential Mortgage Licenses

  1. Mortgage Loan Originator License: An entity licensed to engage in mortgage origination activities. The MLO must be an employee or an independent contractor of an originating entity, which includes licensed mortgage banker, registered mortgage broker, or other entities approved by the Superintendent of Banks of the State of New York.
  2. Mortgage Broker Registration: An entity licensed to engage in soliciting, negotiating, and processing a mortgage loan with a lender on behalf of a borrower.
  3. Mortgage Banker License: An entity licensed to engage in providing funding or issuing commitments for residential mortgage loans. The banker can also perform the functions of a mortgage broker.
  4. Mortgage Servicer Registration: entity licensed to engage in servicing a residential mortgage loan. Servicing activities include receiving and posting borrower’s payment, administering escrow accounts, processing customer complaints, making payments as per the servicing contracts.
Source :www.MortgagesAnalyzed.com

Licenses for MLO's of Federal Banking Institutions

Employees of federal banking institutions who originate residential mortgage loans are not required to obtain license through DFS (via NMLS). Instead, they are subject to licensing requirements under the NMLS Federal Registry. The licensing and registration for an employee under the NMLS Federal Registry is sponsored by the employer. Therefore, the procedure for licensing will be determined by the policies and procedures set up by the financial institution.

Federal banking institutions refers to institutions that are regulated by any one of the following:

  1. Federal Deposit Insurance Corporation
  2. Board of Governors of the Federal Reserve System
  3. National Credit Union Administration
  4. Office of the Comptroller of the Currency
  5. Treasury Farm Credit Administration

Contact your employer to determine if they are a federally regulated banking institution and if you need to register under Federal Registry NMLS. You can also visit FDIC’s Bank Find to identify who the regulator is and confirm if your employer is federal banking institution.

Source :www.MortgagesAnalyzed.com

Summary of NY Mortgage Licenses

Below is a summary of the various mortgages related licenses issued in NY.

Source :www.MortgagesAnalyzed.com
No License Issuing Agency Scope of Activities Purpose Notes Issued to
1 Salesperson License Division of Licensing Services Commercial Mortgages and Real Estate For a new entrant into mortgage industry Must work under a licensed broker Individual
2 Individual Broker Division of Licensing Services Commercial Mortgages and Real Estate For an experienced professional seeking to set up independent business Broker must work under his/her name Individual
3 Associated Broker Division of Licensing Services Commercial Mortgages and Real Estate For brokers preferring to work under another broker. A Broker may work with multiple brokers Works under supervision of another licensed Broker Individual
4 Trade Name Broker Division of Licensing Services Commercial Mortgages and Real Estate For brokers organizing business as a proprietorship under a trade name/Doing Business As (DBA) Must obtain prior approval of trade name from DLS Individual and Proprietorship working under DBA
5 Partnership Broker Division of Licensing Services Commercial Mortgages and Real Estate For brokers organizing business as a partnership Each broker performing mortgage and real estate activity must be licensed as a broker Partnership Firms
6 Limited Partnership Broker Division of Licensing Services Commercial Mortgages and Real Estate For brokers organizing business as a limited partnership Each broker performing brokerage activities must be licensed as a broker Limited Partnership
7 Corporate Broker Division of Licensing Services Commercial Mortgages and Real Estate For brokers organizing business as a Corporation Each officer performing brokerage activities must be licensed as a broker Corporation
8 LLC or LLP License Division of Licensing Services Commercial Mortgages and Real Estate For brokers organizing business as LLC or LLP or an assumed name of LLC or LLP LLC, LLP
9 Mortgage Broker Department of Financial Services Residential Mortgage Brokering For entities that want to originate residential mortgage loans Licensed through NMLS Individual, Partnership, Corporation
10 Mortgage Banker Department of Financial Services Residential Mortgage Brokering For entities that want to originate and/or fund residential mortgage loans Licensed through NMLS Individual, Partnership, Corporation
11 Mortgage Servicer Department of Financial Services Residential Mortgage Brokering For entities that want to provide servicing functions Licensed through NMLS Individual, Partnership, Corporation
12 Mortgage Loan Originator Department of Financial Services Residential Mortgage Brokering For anyone originating residential mortgages Licensed through NMLS Individual
Source :www.MortgagesAnalyzed.com

Updated: Apr 04, 2013

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Licensing is issued by Division of Licensing Services (DLS) and the NYS Department of Financial Services (DFS)
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