July 22, 2008
Your letter dated April 25, 2008, to the New York State Banking Department ("Banking Department"), requested that the Banking Department provide opinion concurring with your analysis that your client, [---] is an "exempt organization" under Section 590 of the New York State Banking Law, Article 12-D. You stated that [---] is a wholly owned subsidiary of [---] Credit Union, a state chartered credit union located in Michigan. You also stated that [---] is a for-profit organization and cannot file a consolidated tax return with [---] Credit Union.
The Legal Division is of the opinion that the provisions of Part 39 of the Banking Board Regulations require a wholly owned subsidiary of an exempt organization to be a "consolidated subsidiary", as defined in Part 39.2(c), to qualify for exempt status. Consequently, [---] must apply for a mortgage banking license under Article 12-D of the New York Banking Law if it seeks to make more than four mortgages in this state within a calendar year.
Very truly yours,
Orinthia E. Perkins
cc: Rholda Ricketts