14. Mortgage Lenders/Brokers

Opinion Letter 91-11 (Henry McComb) mortgage lender can refer portion of loan to another mortgage lender, without being licensed as real estate broker, if no consideration or expectation of referral fee

5 DOS 94 Matter of DOS v. Gafni - fraudulent practice in retaining $5,000 payment when only obtained consumer credit report; did not obtain appraisal; improper extraction of mortgage brokerage commission when the predicate mortgage commitment was not forthcoming; corporation is vicariously responsible for actions of its representative broker; representative broker and corporation each fined $1,000 plus order of restitution of $17,400 less cost of credit report

3 DOS 95 Matter of Tucci - licensee as partner in entity selling property to builder does not come within 19 NYCRR §175.6; dual agency found where licensee represents seller in real estate transaction and serves as mortgage broker for buyer; failure to make agency relationships clear violates 19 NYCRR §175.7; pre-hearing and post-hearing motions; restitution of $1,081; fine of $1,000; DOS determination vacated by stipulation of settlement; non-admission, restitution of earned mortgage broker fee

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Third quarter Legal Lines now available

The third quarter 2018 edition of NYSAR’s Legal Lines is now available online at This edition covers what a broker's agent actually is, the legal issues related to social media use, conditional approval for financing is not a mortgage commitment and more. Learn more