NY S01565

Creates new Banking Law Section 78-a requiring the Department of Financial Services to refer instances of unauthorized banking entities to the Attorney General and other agencies, with the Attorney General providing written status updates at least every six months.

Adds Banking Law Section 590(e) prohibiting mortgage bankers, brokers, and exempt organizations from conducting business with unlicensed or unregistered mortgage entities, requiring prompt notification to the department of any such operations.

Increases maximum civil penalties under Banking Law Section 598 from four times the amount paid to unlicensed/unregistered persons to ten times that amount if the person continues unauthorized activities after receiving a cease and desist notice from the superintendent.

Expands Penal Law Article 187 mortgage fraud crimes to apply to all mortgage loans (removing "residential" limitation) and to loans made to entities in addition to individuals.

Changes all five degrees of mortgage fraud offenses (fifth degree misdemeanor through first degree felony) to apply to all mortgage fraud rather than only residential mortgage fraud.