On October 20, 2021, the New York Department of Financial Services published a notice in the New York State Register announcing that it has issued a proposed regulation to implement S 5470–B, which requires consumer-like disclosures for “commercial financing” transactions of $2.5 million or less. Comments on the proposal must be submitted by December
NYDFS
Adrienne Harris nominated to serve as Superintendent of the NY Department of Financial Services
By Ballard CFS Group on
Posted in NYDFS
New York Governor Kathy Hochul announced this week that she has nominated Adrienne Harris to serve as Superintendent of the state’s Department of Financial Services. If confirmed by the New York Senate, Ms. Harris would succeed Linda Lacewell whose last day at the DFS was August 24.
Ms. Harris previously served as a Senior Advisor…
New York enacts requirements for check processing by banks; Ballard Spahr to hold Sept. 13 webinar on overdraft practices
By Jennifer E. Aguilar on
At the end of last month, former New York Governor Cuomo signed into law a bill that amends the state’s Banking Law to require banks to follow certain check processing practices. The amendments become effective on January 1, 2022.
The new law applies to “consumer checking accounts” offered by “banking institutions.” “Consumer checking accounts” are…
NY DFS Superintendent Lacewell to leave agency on August 24
By Ballard CFS Group on
Posted in NYDFS, Regulatory and Enforcement
According to numerous media reports, Linda Lacewell, Superintendent of New York’s Department of Financial Services, has announced her resignation.
Her last day as Superintendent is expected to be August 24, the same day that Governor Andrew Cuomo’s resignation becomes effective. Her interim successor has not yet been named. Ms. Lacewell was nominated in 2019 by…
NY Department of Financial Services announces initiative to collect and publish diversity data
By Nikki A. Hatza on
To further its ongoing diversity, equity, and inclusion (DEI) efforts, the New York State Department of Financial Services (DFS) announced an initiative to collect and publish diversity data on the demographic makeup of NY-regulated financial institution’s boards and senior management teams. In its July 29th business industry letter, DFS emphasized that transparency around…
New York DFS enters into two dealer finance charge consent orders
By Ballard CFS Group on
After announcing several years ago that it intended to pick up with fair lending enforcement in the indirect auto finance market where the CFPB left off, the New York Department of Financial Services has announced two consent orders with smaller, New York-chartered banks based on the allegation that allowing auto dealers to negotiate the retail…
Second Circuit orders dismissal for lack of standing of New York DFS lawsuit challenging OCC fintech charter
By Ballard CFS Group on
The U.S. Court of Appeals for the Second Circuit has ruled that the lawsuit filed by the New York Department of Financial Services (DFS) seeking to block the OCC’s issuance of special purpose national bank (SPNB) charters to non-depository fintech companies should be dismissed for lack of Article III standing. In December 2017, the DFS’s…
NYDFS penalizes mortgage company for cyber breach
By Kim Phan on
On March 3rd, the New York Department of Financial Services (“NYDFS”) announced a settlement with Residential Mortgage Services, Inc. (“RMS”) to resolve allegations that RMS violated the NYDFS Cybersecurity Regulation relating to a 2019 cyber breach.
In July 2020, NYDFS conducted an examination of RMS as a licensed mortgage banker. During the examination,…
New York Dept. of Financial Services announces fair lending agreement with nonbank mortgage lender and releases redlining report
By Richard J. Andreano, Jr. & Ballard CFS Group on
The New York Department of Financial Services (DFS) recently announced that it has entered into an agreement with Hunt Mortgage, a licensed mortgage banker, to address the DFS’s findings that there was a “demonstrable lack of lending to minorities and in majority-minority neighborhoods in Western and Central New York by Hunt Mortgage.” DFS also…
New York enacts commercial financing disclosure law
By John L. Culhane, Jr., Jeremy T. Rosenblum & Ballard CFS Group on
On December 23, 2020, New York Governor Andrew Cuomo signed into law S 5470–B, which requires consumer-like disclosures for “commercial financing” transactions of $500,000 or less. New York’s commercial financing law (NYCFL) states that it takes effect on the 180th day after becoming law, which is June 21, 2021.
Coverage. …