NY A03882

Requires the Department of Financial Services' financial frauds and consumer protection unit to refer unauthorized banking entities operating without proper licensing to the Attorney General and other agencies for enforcement, with the Attorney General providing written status updates every six months.

Prohibits mortgage bankers, brokers, and exempt organizations from conducting business with unlicensed or unregistered mortgage operators and requires prompt notification to the Department of Financial Services of any such violations.

Increases civil penalties for unlicensed or unregistered persons engaging in mortgage banking activities from a maximum of four times the money involved to up to ten times that amount if they continue activities after receiving a cease and desist notice from the superintendent.

Expands mortgage fraud statutes to apply to all mortgage loans (including commercial and non-residential properties) and all persons or entities, removing previous limitation to residential mortgage loans only.

Maintains existing criminal penalties for mortgage fraud by degree: fifth degree (Class A misdemeanor), fourth degree (Class E felony, $1,000+), third degree (Class D felony, $3,000+), second degree (Class C felony, $50,000+), and first degree (Class B felony, $1,000,000+).