FOR IMMEDIATE RELEASE                                        

For more information contact:

Carleton Sales Team

574.243.6040 option #3

sales@carletoninc.com

 

 

New York Law Expands DFS Authority Impacting Lenders

 

Summary

New York has enacted SB 8408, which expands the Department of Financial Services’ (DFS) authority to impose civil penalties on any person or company engaging in regulated financial activities without proper licensing. The law applies to all regulated financial activities under New York Banking and Financial Services Law, extends civil penalties to unlicensed entities, and authorizes DFS to impose restitution and enhanced penalties when consumer harm occurs.

This reflects a wider trend among states to attempt to establish jurisdiction predicated on the location of the borrower rather than that of the lender. Models relying on “rate exportation” or bank partnerships could potentially still face scrutiny if not properly licensed or exempt.

 

Impact on Out-of-State Lenders

• Lending to New York residents, even remotely, may require a New York license.

• Physical presence in New York is not required for enforcement. Internet or remote lending may trigger these obligations.

• Non-compliance can result in significant civil penalties and enforcement actions.

 

Action Steps

• Review lending programs for New York consumer exposure.

• Confirm licensing or exemption status under the law.

• For use within the Carleton Software Modules, if you need to review or create a New York compliance file, submit a case to our customer support portal.

 

If you are a Carleton partner and would like additional information or would like to request a file update, please submit a case in the Carleton Customer Portal.

 

About Carleton, Inc.

Carleton is the country's leading provider of financial calculation software, loan origination compliance support, and document generation software. With over 55 years of experience, our ongoing expertise and industry knowledge reaffirms why Carleton is a trusted partner. Founded in conjunction with the Truth In Lending Act, Carleton provides expert compliance support with continuous accuracy in all our calculations and disclosures at a state and federal level. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.