A New York broker holds an application deposit in 2026 and cannot say where it went. Can failure to account for the applicant deposit be grounds for discipline?
Correct Answer
B) A ground: failing to account for property not its own
The grounds encompass the failure to account for or deliver to any person any personal property obtained in connection with a mortgage loan such as money, funds, deposits, checks, drafts, mortgages or other documents or things of value, which has come into his hands, and which is not his property, or which he is not in law or equity entitled to retain. Other choices: the deposit is not the broker property; no dollar threshold appears; and no demand is required. Source: N.Y. Banking Law § 595-a(1)(d)
Why This Is the Correct Answer
The grounds encompass the failure to account for or deliver to any person any personal property obtained in connection with a mortgage loan such as money, funds, deposits, checks, drafts, mortgages or other documents or things of value, which has come into his hands, and which is not his property, or which he is not in law or equity entitled to retain. Other choices: the deposit is not the broker property; no dollar threshold appears; and no demand is required. Source: N.Y. Banking Law § 595-a(1)(d)
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