September 25, 2001
James P. Coletta, Esq.
Keisling, Schmitt & Coletta
850 Washington Avenue
Carnegie, PA 15106-2421
Re: Affordable Mobile Home Lenders, Inc.
Dear Mr. Coletta:
Your June 18, 2001 letter requesting an opinion as to whether the brokering of a loan secured by a mobile home in New York State by your client, a Pennsylvania corporation, is subject to regulation by the New York State Banking Department ("Department") has been referred to me for response.
According to your letter, the only activity in which your client engages is to take applications from borrowers and forward any documentation required by the lender to underwrite the loans; your client does not extend credit. Further, your client does not maintain a physical presence in New York State although an employee travels throughout New York State taking applications and obtaining the necessary documentation. Borrowers also submit applications to your client via the internet, telephone and mail.
Please be advised that under New York law, loans secured by mobile homes are subject to the provisions of Article 9 of the New York Personal Property Law ("PPL"), the "Motor Vehicle Retail Installment Act," which the Department does not regulate or enforce. Accordingly, the activity engaged in by your client as described in your letter is not subject to regulation by the Department.
Thank you for your attention to the above.
Very truly yours,
Alvin A. Narin