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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Fourth quarter Legal Lines now available

The fourth quarter 2019 edition of NYSAR’s Legal Lines is now available online at This edition covers new DOS proposed regulations, emotional support animals in housing, Landlord discrimination and more. Learn more