Section 599-C. License required

1. License required. No individual, unless
  specifically exempt pursuant to subdivision three of this section  shall
  engage in the business of a mortgage loan originator with respect to any
  dwelling  or  residential  real  property  in  this  state without first
  obtaining and maintaining annually a license under  this  article.  Each
  licensed  mortgage  loan  originator  must  register with and maintain a
  valid unique identifier issued by the NMLSR.
    2. Effective date. In order to facilitate  an  orderly  transition  to
  licensing and minimize disruption in the mortgage marketplace:
    (a)  Each  individual, other than an individual described in paragraph
  (b) of this subdivision, shall be licensed pursuant to  subdivision  one
  of  this  section not later than July thirty-first, two thousand ten, or
  such later date approved for mortgage loan originators in this state  by
  the  Secretary  of the U.S. Department of Housing and Urban Development,
  pursuant to the authority granted  under  Public  Law  110-289,  Section   1508(a) and approved by the superintendent;
    (b)  Each  individual  authorized  as a mortgage loan originator under
  prior law not later than July thirty-first, two thousand nine, shall  be
  licensed  pursuant  to  subdivision  one  of this section not later than
  January first, two thousand eleven, or  such  later  date  approved  for
  mortgage  loan  originators  in  this state by the Secretary of the U.S.
  Department of Housing and Urban Development, pursuant to  the  authority
  granted  under  Public  Law 110-289, Section 1508(a) and approved by the
  superintendent.
    (c) Notwithstanding paragraphs (a) and (b) of this subdivision,  after
  the  effective  date  of  this  article,  no  individual  shall act as a
  mortgage loan originator if such individual has been  convicted  of,  or
  pled  guilty or nolo contendere to, a felony of the types and during the
  time periods described in paragraph (b) of subdivision  one  of  section
  five  hundred  ninety-nine-e  of this article, in a domestic, foreign or
  military court, unless expressly authorized to act as  a  mortgage  loan
  originator by the superintendent.
    3.  Exemption  from  licensing requirements. The following persons are
  exempt from the licensing requirements otherwise applicable  under  this
  article:
    (a)  Registered  mortgage  loan originators, when acting for an entity
  described in subparagraphs (i), (ii)  and  (iii)  of  paragraph  (a)  of
  subdivision  thirteen  of  section  five  hundred  ninety-nine-b of this
  article.
    (b) Any individual who offers or negotiates the terms of a residential
  mortgage loan with or on behalf of an immediate  family  member  of  the
  individual.
    (c)  Any  individual  who  offers or negotiates terms of a residential
  mortgage loan secured by a dwelling or residential  real  property  that
  served as the individual's own residence.
    (d)  A  licensed  attorney  who  negotiates the terms of a residential
  mortgage loan on behalf of a  client  as  an  ancillary  matter  to  the
  attorney's   representation  of  the  client,  unless  the  attorney  is
  compensated by a lender, a  mortgage  broker,  or  other  mortgage  loan
  originator  or  by  any  agent of such lender, mortgage broker, or other
  mortgage loan originator.
    (e) Any individual employed by a  mortgage  loan  servicer  registered
  under  article twelve-D of this chapter, who negotiates any modification
  of an existing residential mortgage loan on behalf of such servicer, and
  does not otherwise act as a mortgage loan originator,  unless  licensing
  is required by a rule, regulation, guideline or interpretation issued by
  the  U.S.  Department  of Housing and Urban Development under Public Law
  110-289.

    (f) Any individual involved in  the  sale  of  manufactured  homes  if
  exempted   from   licensing   by   a   rule,  regulation,  guideline  or
  interpretation issued by  the  U.S.  Department  of  Housing  and  Urban
  Development under Public Law 110-289.
    4.  Independent  contractor  loan  processors  or underwriters. A loan
  processor  or  underwriter  who  is  an  independent  contractor  of  an
  originating   entity   may  not  engage  in  residential  mortgage  loan
  origination activities unless such independent contractor loan processor
  or underwriter obtains and maintains a license under this article.  Each
  independent  contractor  loan  processor  or  underwriter  licensed as a
  mortgage  loan  originator  must  have  and  maintain  a  valid   unique
  identifier issued by the NMLSR.