On October 25th, 2023 Governor Hochul signed A1153A to amend New York State's Banking Laws to protect against unregistered and unlicensed mortgage brokers.
This amendment 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 with New York State's Department of Financial Services (DFS). This amendment exempts entities who provide mezzanine mortgages.
This amendment also requires a mortgage banker, mortgage broker or entities who provide mezzanine mortgages to notify DFS of any mortgage banker or a mortgage broker acting without being licensed or registered.
If non-exempt unlicensed or unregistered mortgage banker or a mortgage broker engages in unauthorized activities after DFS issues a cease-and desist notice, then that non-exempt unlicensed or unregistered mortgage banker or a mortgage broker is liable for the actual damages equivalent to the amount of money paid to the person affected.
This amendment goes into effect November 7th, 2023, which is the 13th days after it became a law. Click here to read the law.
