A New York homebuilder in 2026 arranges loans on homes it built, through a licensed banker as agent. How does Article 12-D treat the builder when the licensed banker acts as its agent for this financing?
Correct Answer
C) Not deemed to be making or placing a mortgage loan at all
A person engaged in the building and sale of residential real property, or a financing subsidiary, is not deemed to be making or soliciting, processing, placing or negotiating a mortgage loan if and only if it does so with respect to property it has built through a licensee or exempt organization acting as its agent. Other choices: the carve-out depends on the licensed agent rather than on disclosure to the buyer. Source: N.Y. Banking Law § 590(2)(d)
Why This Is the Correct Answer
A person engaged in the building and sale of residential real property, or a financing subsidiary, is not deemed to be making or soliciting, processing, placing or negotiating a mortgage loan if and only if it does so with respect to property it has built through a licensee or exempt organization acting as its agent. Other choices: the carve-out depends on the licensed agent rather than on disclosure to the buyer. Source: N.Y. Banking Law § 590(2)(d)
More UST Questions
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