NYDFS Adopts Final State CRA Regulations Applicable to Mortgage Bankers

The New York Department of Financial Services (NYDFS) adopted final regulations implementing New York Banking Law section 28-bb, which is the state’s version of the federal Community Reinvestment Act (CRA). 

Like the proposal summarized by WBK here, the final regulations require mortgage bankers to collect and report certain data to NYDFS, including HMDA filings.  A mortgage banker who has originated 200 or more mortgage loans in New York in the last calendar year (as reported under HMDA) will be evaluated and rated by NYDFS on how well it helped meet the credit needs of its community.

To conduct the evaluation, NYDFS will review the geographical assessment areas delineated by the mortgage banker.  For mortgage bankers without any physical branches in New York, the assessment areas may be lending-based.  NYDFS applies a lending test and a service test designed to evaluate the mortgage banker’s record of helping to meet credit needs in the assessment areas.  The lending test evaluates mortgage lending activity in the assessment areas, while the service test evaluates the availability and effectiveness of a mortgage banker’s systems for delivering mortgage loan products and the extent and innovativeness of community development services, qualified investments, community outreach, marketing, and educational programs.

After completing its evaluation, NYDFS issues a written summary of the results, which it will make available to the public.  Additionally, NYDFS will consider the results of its evaluation when reviewing branch applications and change of control applications.

The regulations became effective on January 7, 2026, with a compliance deadline of July 7, 2026.