BILL NUMBER: S1144A
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the banking law, in relation to unregistered and unli-
censed mortgage brokers
 
PURPOSE OR GENERAL IDEA OF BILL:
Prohibits mortgage lenders from conducting business with any individual
or entity which it knows or should have known is acting as a mortgage
banker or a mortgage broker without being licensed or registered.
 
SUMMARY OF PROVISIONS:
Section one: Prohibits mortgage bankers, mortgage brokers or exempt
organizations, who are not registered or licensed by DFS, from perform-
ing or executing mortgages. Entities who provide mezzanine mortgages
would be exempt from this section.
Section two: Provides that if a non-exempt unlicensed or unregistered
person or entity continues to engage in unauthorized activities after a
cease-and desist notice from DFS, then they are liable for the actual
damages equivalent to the amount of money paid to an affected person.
Section three is the effective date.
 
JUSTIFICATION:
No mortgage banker, mortgage broker or exempt organization shall conduct
business with any person, partnership, association, corporation or other
entity which it knows or should have known is acting as a mortgage bank-
er or a mortgage broker without being licensed or registered as required
by this article. A mortgage banker, mortgage broker or exempt organiza-
tion shall promptly notify the department of any such unlicensed or
unregistered operations.
 
PRIOR LEGISLATIVE HISTORY:
2022 PASSED SENATE
2022 referred to banks
2021 PASSED SENATE
2021 referred to banks
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law.

Statutes affected:
S1144: 598 banking law, 598(5) banking law, 187.00 penal law, 187.05 penal law, 187.10 penal law, 187.15 penal law, 187.20 penal law, 187.25 penal law
S1144A: 598 banking law, 598(5) banking law