Supervision by DFS may entail chartering, licensing, registration requirements, examination, and more. 0000027175 00000 n 0000011883 00000 n Please be advised that implementation of this requirement is not an attempt by the NYSBD to compel Lenders to abandon the use of objective factors in evaluating the creditworthiness of a borrower when determining whether to underwrite a loan. 0000032190 00000 n endstream endobj 216 0 obj<>/Size 182/Type/XRef>>stream The Department of Financial Services supervises many different types of institutions. 0000000016 00000 n 0000012808 00000 n If the Board of Directors does not have a Fair Lending Committee, then the Plan should designate which Committee of the Board is responsible for the institution's compliance with Executive Law 296-a; The fair lending compliance program should monitor the implementation of and adherence to the Plan's policies and procedures. 0000004610 00000 n

0000032120 00000 n HtUP;^'EPphr(F+ A+J:V61Fc0>4">B$hN8vv? 0000004275 00000 n Deputy Superintendent of Banks, This page is available in other languages. xb```b``me`e`Qgg@ ~+ k00L$(n229 PPH@x&L e (u:K|jd[9jU; >[.f {.fzaACg/p{X@ o1 It is the responsibility of the Board of Directors and senior management to formulate the Plan and ensure that the lending practices of the Lender comply with its provisions. ;}$T 0000001035 00000 n 0000001849 00000 n 0000023042 00000 n 0000010116 00000 n Lenders, or their legal counsel, should direct any questions or comments to Alvin A. Narin, Assistant Counsel, at (212) 618-6680. 0 Risk based pricing is and continues to be valid in New York, provided that it is not impermissibly tied to a protected class. 0000017417 00000 n 0000025091 00000 n $III=9`UyAYQ9t^QoFxIGJ^*#qpp!c ; ~7JKW**'WO0)G"(xAX0DA "(&UA I*BMd8An%-b"Yx_R(*-*WAjitU],X45rs0;T8pXxiGNN= As part of our effort to eliminate prohibited practices, the NYSBD requires applicants seeking a license to become a licensed lender or sales finance company ("Lender"), applicants seeking approval for a change of control of a Lender or applicants seeking permission to open an additional branch to submit a satisfactory Fair Lending Plan ("Plan") as part of their application. Although there is no standard formula that the Plan must follow, the NYSBD is providing the following list, which is not inclusive, to aid in the development of a Plan: This letter and the above list should serve only as a general guideline for developing the Lender's Plan. startxref 0000018468 00000 n 217 0 obj<>stream 0000011247 00000 n 0000001349 00000 n 0000002205 00000 n 0000001727 00000 n 0000019819 00000 n <<2E48481A7FC5874FA504C3F832F9C40D>]>> 182 36 0000011926 00000 n 0000012509 00000 n Peter M. Philbin, xref

Such agreements should be updated regularly; The Plan should contain a process by which complaints from applicants relating to alleged violations of Executive Law 296-a by a Lender are resolved efficiently without being unduly burdensome to the applicant: The Plan should contain a process by which a Lender's marketing strategies directed to protected class applicants or minority communities are reviewed and approved and periodically evaluated by the designated Compliance Officer prior to distribution to ensure that those strategies comply with the provisions of Executive Law 296-a; and. 0000018292 00000 n The Plan should be periodically reviewed by the Compliance Officer and senior management to ensure that it remains current. 0000005114 00000 n %PDF-1.4 % 0000010732 00000 n 0000012010 00000 n trailer 0000018568 00000 n endstream endobj 183 0 obj<>/PageMode/UseOutlines/Names 185 0 R/Outlines 213 0 R/Metadata 19 0 R/AcroForm 184 0 R/Pages 11 0 R/PageLayout/SinglePage/StructTreeRoot 21 0 R/Type/Catalog>> endobj 184 0 obj<>/Encoding<>>>>> endobj 185 0 obj<> endobj 186 0 obj<>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 187 0 obj<>/Type/Font>> endobj 188 0 obj<> endobj 189 0 obj<> endobj 190 0 obj<> endobj 191 0 obj<>stream The NYSBD requires that the Plan address the manner in which an institution ensures that loans are made in conformance with fair lending laws. 0000021994 00000 n Monitoring should be conducted for the Lender as a whole, as well as sub-parts of the Lender. 0000026150 00000 n 0000001891 00000 n %%EOF 182 0 obj <> endobj 0000003120 00000 n This requirement to submit a Plan shall not apply to any sales finance company that can demonstrate to the NYSBD that its activity shall be limited to the purchase of retail installment contracts and/or obligations under circumstances where it is not involved in the application and/or underwriting processes of retail installment contracts or retail installment obligations. xbb``b``3i~0 } The Lender should obtain written agreements from the other lenders with which it has relationships certifying that they acknowledge their responsibility to comply with Executive Law 296-a and the policies and procedures contained in the Plan to the extent such policies and procedures are applicable to them. Dr;79?q!\\6I_1]]oy[zx8SD2sS]Z. Further, even though the Lender's Plan may address all of the areas outlined above, that is no guarantee that the lending activities being conducted by the Lender comply with the provisions of Executive Law 296-a. 0000001526 00000 n 0000020853 00000 n Compliance personnel should administer and conduct the training program and participants should certify that they understand and commit to upholding the principles of Executive Law 296-a and the policies and procedures contained in the Plan; The Plan should provide for an automatic and timely review by a higher level supervisor of all applications that are rejected or withdrawn; The principles of the Plan should extend to the Lender's refinancing and collection practices; The Plan should address how the Lender will disclose and document to an applicant that he meets underwriting standards that typically would qualify him for an alternate loan product and whether that applicant will be referred to an affiliated lender; The Plan should identify actions taken to demonstrate that the Lender has taken the appropriate measures to extend the policies and procedures of the Plan to the solicitation, establishment and maintenance of the institution's relationships with other lenders. 0000024079 00000 n 0000017919 00000 n Accessibility & Reasonable Accommodations. In particular, the compliance program should ensure that the business personnel understand their duties and responsibilities under the Plan and that such duties are being carried out; The Plan should implement a training program that provides adequate training to new hires and current employees, including management and other key personnel, and provides lending personnel with at least semiannual updates on fair lending issues. 0000032297 00000 n Further, the Plan should provide for monitoring, on an ongoing basis, the Lender's application and underwriting processes as well as the Lender's pricing policies. The New York State Banking Department ("NYSBD") must ensure that the application and underwriting processes for loans in New York State made pursuant to the provisions of Article IX of the Banking Law by Licensed Lenders and retail installment contracts and retail installment obligations acquired by Sales Finance Companies pursuant to Article XI-B of the Banking Law do not violate Section 296-a of the Executive Law, which is New York's fair lending statute.