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Bill

Bill

S 4694

Requires Department of Banking and Insurance to examine and rate lending institutions with regards to lending, investments, and services provided to low- and moderate-income consumers.

2024-2025 Regular Session Introduced by Britnee Timberlake

New Jersey would require banking regulators to rate lenders on service accessibility and practices serving low- and moderate-income consumers.

Introduced in the Senate, Referred to Senate Commerce Committee
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Bill Summary · S 4694

Legislative bill overview

S 4694 would require New Jersey's Department of Banking and Insurance to systematically examine and rate lending institutions based on their lending practices, investment activities, and services directed toward low- and moderate-income (LMI) consumers. This creates a formal evaluation framework for assessing how banks and financial institutions serve economically disadvantaged populations.

Why is this important

Access to fair lending and banking services significantly affects wealth-building opportunities for lower-income households. A rating system could increase transparency about which institutions adequately serve LMI communities, potentially incentivizing better service provision while informing consumer and regulatory decisions about financial institutions.

Potential points of contention

  • Regulatory burden: Banks and lending institutions may argue the rating system creates additional compliance costs and administrative requirements that could reduce profitability or service availability
  • Rating methodology: Questions about how "lending, investments, and services" would be defined and measured objectively; different methodologies could produce different results and institutional rankings
  • Market impact: Unclear whether the bill specifies consequences for poor ratings—if it affects licensing or regulatory penalties, institutions may lobby against implementation; if merely informational, its practical effectiveness is limited

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

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