Does the state require a physical location within the state?
There is not an in state office requirement in New York. However a copy of the office lease agreement, in the applicant's name, identifying where its New York mortgage banking business will be conducted must be submitted with the license application.

Is there individual loan officer licensing?
A new article to the Banking Law entitled "Registered Mortgage Loan Originators." takes effect January 1, 2008.

On or after January 1, 2008, no person shall engage in mortgage loan originating without first being registered by the Department of Banking as a Mortgage Loan Originator (MLO).

A mortgage loan originator (MLO) means any person employed by or affiliated with an originating entity, who engages in mortgage loan originating irrespective of how such person is compensated by such originating entity, or any natural person who as an originating entity, or any substantial stockholder of an originating entity, engages in mortgage loan originating on residential property.

What are lenders, brokers and loan officers called?
New York defines the terms mortgage banker licensee, mortgage broker registrant and mortgage loan originator registrant.

What is the cost of a license? Surety bond? Are there net worth requirements?
To obtain a Broker Registration an applicant must submit;

• a completed, signed, and notarized license application and affidavit/certification forms along with
• a check for an investigation fee in the amount of $500 payable to "Superintendent of Banks of the State of New York,"
• a set of fingerprints for each reporting individual in a form acceptable for processing by the New York State criminal justice system,
• an annual registration fee of $500 (this fee is due on or before December 15 each year),
• for initial broker registrations issued after June 30, the first year's registration fee is $250,
• evidence (resume) of at least two years of credit analysis or underwriting experience with an exempt organization, mortgage banker, mortgage broker, or licensed lender, or alternatively, relevant business experience and educational background.

• a completed, signed, and notarized license application form along with
• a check for an investigation fee in the amount of $1,000 payable to "Superintendent of Banks of the State of New York,"
• a set of fingerprints for each reporting individual in a form acceptable for processing by the New York State criminal justice system,
• a separate certified check, bank check, or money order for $99 per setoff fingerprint cards payable to "The Superintendent of Banks — Fingerprints,"
• a background investigation report prepared by a qualified investigatory firm licensed in New York, detailing the personal and financial background of the applicant, its officers, directors, and 10 percent or more individual shareholders/equity owners,
• a completed taxpayer identification form,
• a surety bond in the amount of $50,000 in favor of the Superintendent of Banking (in lieu of a surety bond, an applicant may deposit assets with a value of $50,000 valued at the lower of principal amount or market value with a depository institution located in New York, subject to the Banking Department approving in advance the form of deposit agreement),
• financial statements in a form prescribed by the Superintendent,
• an organizational chart for the applicant and corporate officers,
• a board resolution authorizing an executive officer to sign the license application on behalf of the applicant,
• a business plan, under the applicant's name, for New York operations to include markets to be served and products to be offered,
• a copy of the office lease agreement, in the applicant's name identifying where its New York mortgage banking business will be conducted,
• a list of the top three states besides the home state with the highest volume of activity for other licensed states, and
• an annual license fee of $1,000 (this fee is due on or before December 15 each year).

APR test

For first-lien loans, the APR at consummation is greater than 8 percent above yield on Treasury securities with comparable periods of maturity measured as of the fifteenth day of the month immediately preceding the month in which the lender receives the loan application. For junior-lien loans, the APR at consummation is greater than 8 percent above yield on Treasury securities with comparable periods of maturity measured as of the fifteenth day of the month immediately preceding the month in which the lender receives the loan application. For loans carrying a reduced introductory or initial interest rate, measure the APR in effect at the end of the initial or introductory period.

Points and fees test

The total points and fees exceed 5 percent of the total loan amount if the total loan amount is $50,000 or more, or 6 percent of the total loan amount is $50,000 or more and a Federal Housing Administration (FHA) or Veterans Administration (VA) purchase money loan, or the greater of 6 percent of the total loan amount or $1,500 if the total loan amount is less than $50,000. Numerous restrictions and notice requirements are placed on loans falling into the high cost category.