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Bill

A 11293

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

2025 Regular Session

Requires covered lenders to report detailed data on covered loans to NY DFS within 30 days of origination, acquisition, or refinancing.

PRINT NUMBER 11293A
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WeVote Research Nonpartisan
Bill Summary · A 11293

Overview

A11293-A, introduced in the New York Assembly, creates a new Article 8-A of the Financial Services Law to require “covered lenders” to report information about certain loans (covered loans) to the New York Department of Financial Services (NY DFS). The bill establishes definitions, reporting requirements, forms, annual data publication, regulatory authority, penalties, and timing. It aims to improve transparency and supervision of lending activity involving larger or more complex consumer and commercial loans.

Main purpose and intent

  • To require covered lenders to report detailed information on covered loans to NY DFS.
  • To enable the department to collect, maintain, and publish aggregated data about covered loans annually.
  • To empower the DFS to promulgate rules and regulations implementing these reporting requirements.
  • To enhance supervisory, regulatory, and enforcement capabilities related to lending practices and loan structures.

Key provisions and changes

  • Definitions (Section 820):

    • Covered loan: Extensions of money or credit over $25,000 or multiple extensions within 12 months totaling over $25,000 to a New York resident for personal or commercial use, with repayment exceeding the amount financed (includes interest, fees, etc.). Exclusions include standard open-end credit under TILA/Reg Z (credit cards), mortgages/home equity lines, and certain other regulated arrangements.
    • Covered lender: Any person involved in making, purchasing, brokering, or facilitating a covered loan, including affiliates and agents, with specific criteria to determine coverage. Exempts traditional exempt financial entities.
    • Other terms: Automatic debit authorization; exemptions for “exempt financial entities”; various financing types (open-end, closed-end, sales-based, factoring, etc.).

  • Reporting requirements (Section 821):

    • Within 30 days of origination, acquisition, or refinancing of a covered loan, the lender must report detailed data to DFS, including:
    • Lender identity and share, borrower ZIP code, origination date, loan purpose (personal vs. commercial), arrangement type, amounts financed and disbursed, repayment term, pricing terms (APR, finance charges, fees, etc.), and indicators such as automatic debits, confessions of judgment, prepayment fees, and refinancing activities.
    • Additional information as required by DFS rules.

  • Form, filing, and confidentiality (Section 822):

    • DFS will prescribe reporting forms and allow electronic filing.
    • Multiple lenders can file on behalf of all owners; no duplicate reports required unless amendments are needed.
    • DFS may charge up to $25 per filing.
    • Reports are confidential; aggregated or anonymized data may be published.

  • Annual reporting (Section 823):

    • DFS must publish an annual, aggregated report on the DFS website, breaking out data by personal vs. commercial financing and by loan arrangement type.
    • The report includes counts, amounts, geographic distributions, price terms, repayment, durations, prepayment and refinancing metrics, and enforcement actions.

  • Regulations and penalties (Sections 824-825):

    • DFS may issue implementing regulations, establish reporting standards, and determine penalties for violations (civil penalties, injunctive relief, etc.).

  • Effective dates (Section 3):

    • The act takes effect immediately, but section 1 (reporting) becomes effective 180 days after DFS issues the required rules and regulations.
    • DFS must issue implementing regulations within one year of enactment.

Who is affected

  • Covered lenders: Banks, nonbank lenders, financial service providers, brokers, and servicers that originate, acquire, or facilitate covered loans, including affiliates and agents meeting the criteria.
  • Borrowers in New York who obtain covered loans (personal or commercial) are indirectly affected through greater transparency and potential regulatory scrutiny.
  • DFS: Responsible for collecting data, maintaining the dataset, issuing rules, and publishing annual aggregated reports, and enforcing compliance.

Procedural and timeline notes

  • Enactment: Requires DFS to promulgate implementing regulations within one year.
  • Reporting timeline: Covered lenders must report within 30 days of loan origination, acquisition, or refinancing.
  • Data publication: Annual, on the DFS website, with categorization and metrics described in the bill.
  • Data privacy: Reports are confidential; public disclosure is limited to aggregated or anonymized data to protect borrower identities.

This bill would significantly increase data collection and public transparency around larger or credit-enhanced loan activity in New York.

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

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