NY Lawmakers Act To Tighten Mortgage Licensing Loophole

Law360, New York (May 8, 2012, 3:06 PM EDT) -- Unscrupulous mortgage lenders exploiting a banking law loophole to make unlicensed, unregulated home loans to vulnerable borrowers are the target of a bill headed for the desk of New York Gov. Andrew Cuomo after passage through the State Assembly on Monday.

The bill would require any person or entity that makes more than three home loans in a year — or five in two years — to be a licensed mortgage banker. The current law allows people to make up to five loans per year while...
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