NYS Bureaucracy And Delays Are Making New York Mortgage Brokers Desperate To Escape From New York
Lenders are bypassing New York to set up offices. The reason is because of NYS’ overly burdensome bureaucracy. In addition, existing New York mortgage brokers are desperate to escape the Empire state.
U.S. Mortgage Corporation Founder and CEO Steven Milner told the media:
How bad is it? A prominent mortgage company had to endure five years of bureaucratic hell to get licensed in New York. Lawyers say it’s a combination of a number of things. Namely, improperly trained employees and incompetent management at NYDFS. They also blame overall government incompetence.
This includes lengthy licensing periods and unnecessary and never ending roadblocks. As a result, New York state has developed a reputation for not being business-friendly.
Most states take 30 to 60 days to issue a license to a lender or broker once. However, New York takes any where from 6 months to 5 years. to get licensed after educational requirements are met.
The state of New York also requires loan officers to maintain an expensive business office. The state prohibits mortgage brokers and loan officers from working out of their homes.
As a result, many independent mortgage brokers and lenders will not pursue licensing in New York. The remaining New York brokers either want to leave or plan on shutting down.
Several major law firms have even stopped representing mortgage lenders looking to do business in New York. Law firms say clients frequently blame them for delays and rejections followed by more delays and rejections from NYDFS. In addition, they say it’s just not worth the hassle or the damage to their reputations.