A New York attorney negotiates a mortgage loan in 2026 incidental to his legal practice. Does this incidental legal work require mortgage broker registration under Article 12-D?
Correct Answer
B) Not deemed to be engaged in the business of a mortgage broker
No attorney-at-law who solicits, processes, places or negotiates a mortgage loan incidental to his legal practice shall be deemed engaged in the business of a mortgage broker. Other choices: the carve-out is in the statute; unlike the real estate carve-out it is not conditioned on taking no fee; and the identity of the client is not relevant. Source: N.Y. Banking Law § 590(2)(b)
Why This Is the Correct Answer
No attorney-at-law who solicits, processes, places or negotiates a mortgage loan incidental to his legal practice shall be deemed engaged in the business of a mortgage broker. Other choices: the carve-out is in the statute; unlike the real estate carve-out it is not conditioned on taking no fee; and the identity of the client is not relevant. Source: N.Y. Banking Law § 590(2)(b)
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