Can mortgage brokers participate in originating SONYMA loans?
Yes, SONYMA permits the use of third party or correspondent originators (“mortgage brokers”) to accept loan applications on behalf of a participating lender subject to the following conditions: • The mortgage broker must be registered with the New York State Banking Department and must make all disclosures to the applicant as required by regulations of the Banking Department. • The mortgage broker must be affiliated with a SONYMA participating lender. Mortgage brokers will not be permitted to act as independent agents soliciting potential SONYMA business, and then transferring the loan application to any SONYMA participating lender of their choice. • The participating lender will be required to notify SONYMA of any mortgage broker that it has approved to accept SONYMA loan applications. Additionally, the participating lender must execute an addendum to the mortgage purchase contract that sets forth its obligations to SONYMA when accepting mortgage broker loans. • Mortgage brokers are p
