A New York banker in 2026 makes false promises to induce an applicant to take a loan. Can these false promises be grounds for a regulatory fine under Banking Law section 595-a?
Correct Answer
C) A ground for a fine under the regulations § 595-a requires
The grounds encompass the misrepresentation of material facts or the making of false promises likely to influence, persuade or induce an applicant for a mortgage loan or mortgagor to take a mortgage loan, or pursuing a course of misrepresentation or false promises through agents or otherwise. Other choices: this is a regulatory ground as well as anything else; the test is likelihood to induce rather than a count of applicants; and no writing is required. Source: N.Y. Banking Law § 595-a(1)(a)
Why This Is the Correct Answer
The grounds encompass the misrepresentation of material facts or the making of false promises likely to influence, persuade or induce an applicant for a mortgage loan or mortgagor to take a mortgage loan, or pursuing a course of misrepresentation or false promises through agents or otherwise. Other choices: this is a regulatory ground as well as anything else; the test is likelihood to induce rather than a count of applicants; and no writing is required. Source: N.Y. Banking Law § 595-a(1)(a)
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