A New York broker in 2026 conceals that it is being paid by a third party on the file. Can concealing that compensation be grounds for discipline under section 595-a?
Correct Answer
D) A ground: receipt of payment from a third party is named
The grounds encompass the misrepresentation or concealment of any material factors, terms or conditions of a transaction to which he is a party, including the receipt of payment from a third party, pertinent to an applicant or a mortgagor. Other choices: third-party payment is named in the text; no request by the borrower is needed; and no comparison to the broker own fee appears. Source: N.Y. Banking Law § 595-a(1)(b)
Why This Is the Correct Answer
The grounds encompass the misrepresentation or concealment of any material factors, terms or conditions of a transaction to which he is a party, including the receipt of payment from a third party, pertinent to an applicant or a mortgagor. Other choices: third-party payment is named in the text; no request by the borrower is needed; and no comparison to the broker own fee appears. Source: N.Y. Banking Law § 595-a(1)(b)
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