The New York State Department of Financial Services (DFS) issued a final regulation extending New York’s Community Reinvestment Act (CRA) approach to non-depository mortgage bankers, requiring large nonbank mortgage lenders to be evaluated on how well they meet the credit needs of the communities where they do business and on equitable access to home loans, particularly for low- and moderate-income borrowers. Mortgage bankers with at least 200 originations in the preceding year will be subject to CRA evaluation. Assessment areas for branchless lenders will be determined by where they do a substantial portion of their business. The rule establishes a lending test focused on service to borrowers and neighborhoods within those areas, with emphasis on low- and moderate-income communities, and a service test covering programs and services that promote community development. Unlike banks, covered mortgage bankers will not be required to make community development investments or grants. The regulation is scheduled to take effect on July 7, 2026.
New York State Department of Financial Services 2026-01-08
New York State Department of Financial Services finalizes rule extending Community Reinvestment Act evaluations to nonbank mortgage lenders
The New York State Department of Financial Services issued a final regulation extending the Community Reinvestment Act to non-depository mortgage bankers, requiring large nonbank mortgage lenders with at least 200 originations to be evaluated on credit provision and equitable home loan access for low- and moderate-income borrowers. Effective July 7, 2026, the regulation includes a lending test and a service test but does not mandate community development investments or grants.