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S 10390

Requires covered lenders to report to the department of financial services certain information on covered loans

2025 Regular Session Introduced by James Sanders

The bill requires covered lenders to report detailed covered loan data to the DFS, enabling annual aggregated public summaries and stronger oversight.

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Bill Summary · S 10390

Summary of Bill S. 10390 (2025-2026) – New York: Requires covered lenders to report information on covered loans

Purpose and intent

  • Establishes a new article (Article 8-A) in the New York Financial Services Law to create a comprehensive reporting regime for “covered loans.”
  • Aims to enhance supervisory oversight by requiring lenders and related parties to report detailed data about covered loans to the Department of Financial Services (DFS).
  • Requires annual publication of aggregated data to inform public understanding and regulatory assessment of loan markets and consumer/commercial financing practices.

Key definitions

  • Covered loan: Any extension of money or credit exceeding $25,000, or multiple extensions within 12 months to the same borrower that cumulatively exceed $25,000 to a New York resident, for personal or commercial use, where the borrower agrees to repay more than the amount financed (i.e., includes interest, fees, etc.).
    • Exclusions:
    • Open-end credit plans under TILA/Reg Z accessed by credit cards or similar devices.
    • Mortgage-secured loans (including HELOCs).
    • Other extensions of credit already regulated under New York law with ongoing supervision by the DFS.
  • Covered lender: Any person (including affiliates/subsidiaries) that originates, acquires, arranges, brokers, facilitates, or acts as an agent in a covered loan. Even if acting as an agent for an exempt entity, certain circumstances can still cause identification as a covered lender (e.g., dominant economic interest, right of first refusal to purchase, involvement in design/operation of the program, holding IP rights, etc.).
  • Exempt financial entities: A broad list of financial institutions and programs (banks, credit unions, federal/state chartered entities, certain housing programs, nonprofit housing lenders, etc.), plus certain nonrecourse lenders tied to legal settlements, may be exempt from being treated as covered lenders.
  • Other terms: Definitions align with existing Financial Services Law terminology for financing, pricing, and financing arrangements (e.g., open-end, closed-end, factoring, sales-based financing, etc.).

Reporting requirements (Section 821)

  • Within 30 days of originating, acquiring, or refinancing a covered loan, the covered lender must report to DFS on a form prescribed by the superintendent.
  • Required data elements include:
    • Lender identity and ownership interest, including state of incorporation.
    • Borrower identity and ZIP code.
    • Origination/acquisition/refinancing date.
    • Use category (personal/household vs. commercial).
    • Commercial financing arrangement type (open-end, closed-end, sales-based, factoring, hybrid, etc., or other superintendent-defined categories).
    • Amount financed, disbursed, repayment frequency, and term.
    • Contractual pricing terms (APRs, repayment percentages, finance charges, fees, other pricing metrics).
    • Indicators such as automatic debit authorization, confession of judgment, prepayment/ payoff fees, and refinancing of prior loans.
    • Late fees, penalties, or other charges.
    • Any additional information the superintendent requests.
  • Submissions can be electronic or in writing and must be under penalty of perjury.

Form and filing details (Section 822)

  • DFS will prescribe forms, filing instructions, and submission methods (including electronic options).
  • When multiple lenders have an interest in the same loan, any one lender may file on behalf of all.
  • DFS may charge up to $25 per filing.
  • Filings are confidential and not subject to public disclosure, though aggregated or anonymized data may be published.
  • Confidentiality protections extend to recipients of the reports (e.g., borrowers, lenders, regulators, or court-ordered disclosures).

Annual report (Section 823)

  • DFS must annually publish an aggregated report on the DFS website with data from the prior year.
  • The annual report will categorize by:
    • Purpose: personal/household vs. commercial financing.
    • Arrangement type (open-end, closed-end, sales-based, factoring, hybrid, etc.).
    • For each category: total numbers and monetary amounts financed, geographic distributions (borrowers by ZIP code; lenders by state of incorporation), average/median financed and disbursed amounts.
    • Pricing terms (rates, repayment metrics, finance charges, fees, other metrics).
    • Repayment frequency and term distributions.
    • Late fees/penalties and prepayment/refinancing metrics.
    • Proportions involving automatic debit, confessions of judgment, or refinancing of prior loans.
    • Counts of lenders referred for enforcement action and active enforcement actions.
  • The superintendent may add additional metrics for specific loan arrangements and create additional reporting categories as needed.

Regulations and enforcement (Sections 824-825)

  • DFS may promulgate rules/regulations to implement, administer, and enforce Article 8-A.
  • Regulations may cover reporting forms, loan classifications, methodologies for pricing data, avoiding duplicative reporting, lender determination, recordkeeping, publication of aggregated data, and related matters.
  • Violations may incur civil penalties, injunctions, and other enforcement actions.

Miscellaneous provisions (Sections 826-827)

  • Provisions are severable; if any part is invalid, remaining parts stay in effect.
  • The act is subject to federal preemption where applicable.
  • DFS must publish rules within one year of enactment.
  • Effective dates:
    • This act takes effect immediately, but key implementation provisions are phased:
    • Article 8-A Section 1 (definitions and reporting framework) takes effect 180 days after the DFS issues the required rules/regulations.
    • DFS must notify the Legislature when rules/regulations are promulgated.
    • Immediate ability to amend regulations as needed to implement the act.

Timing and action history

  • Introduced May 15, 2026; referred to Banks.
  • Later actions include amendments and recommitment to Banks (May 28, 2026).
  • Pending regulatory rulemaking by the DFS to implement the act.

Potential impact

  • Enhanced data transparency on covered loans, including personal and commercial financing, with granular metrics on pricing, terms, and borrower/lender geography.
  • Strengthened DFS oversight and supervisory capacity, enabling targeted enforcement and policy analysis.
  • Confidential reporting with aggregated public disclosure to balance transparency and privacy.
  • Possible compliance costs for covered lenders (up to $25 per filing; administrative burden to collect and report required fields).
  • Helps inform policymakers, researchers, and the public about trends in high-dollar lending and consumer protection implications.

Compiled from official sources — confirm details with the bill’s official record.

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