New York · Chapter 25 of 26
Mortgage Brokerage
What a mortgage broker does, how it differs from a mortgage banker, New York Banking Law registration and disclosure requirements including the dual agency disclosure for real estate brokers, and key terms such as prequalification, preapproval, commitment, rate lock and underwriting.
20-minute read · Built for the Salesperson Exam
What Is a Mortgage Broker?
A mortgage broker brings together borrowers and lenders: it takes applications, helps the borrower choose among loan products from multiple lenders, gathers documentation and submits the loan to a lender, but it does not make loans with its own funds. In New York, a person who, for a fee, solicits, processes, places or negotiates residential mortgage loans (loans secured by one- to four-family homes) for others must be registered as a mortgage broker with the Department of Financial Services (DFS) under the Banking Law unless exempt. Individuals who take applications or negotiate loan terms must also be licensed as mortgage loan originators under the federal SAFE Act as implemented in the Banking Law. The Real Property Law's definition of a real estate broker expressly excludes negotiating residential mortgage loans, which are left to the Banking Law.
N.Y. Banking Law Arts. 12-D, 12-E (§§589-599-r); N.Y. Real Prop. Law §440(1)
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