S T A T E O F N E W Y O R K
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10587
I N S E N A T E
May 27, 2026
___________
Introduced by Sen. ZELLNER -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to providing remote work
flexibilities for licensed mortgage loan originators and staff and
employees of licensed mortgage bankers, registered mortgage brokers
and mortgage loan servicers under certain circumstances
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 590 of the banking law is amended
by adding a new paragraph (j) to read as follows:
(J) "REMOTE LOCATION" SHALL MEAN A LOCATION AT WHICH AN EMPLOYEE OF A
LICENSEE, REGISTRANT, MORTGAGE LOAN SERVICER OR PERSON EXEMPT FROM
LICENSING OR REGISTRATION THAT EMPLOYS A MORTGAGE LOAN ORIGINATOR
LICENSED PURSUANT TO ARTICLE TWELVE-E OF THIS CHAPTER, MAY CONDUCT BUSI-
NESS OTHER THAN THE PRINCIPAL LOCATION OR BRANCH OFFICE OF A LICENSEE,
REGISTRANT, SERVICER OR EXEMPT PERSON.
§ 2. Paragraph (c) of subdivision 2 of section 590 of the banking law,
as amended by chapter 472 of the laws of 2008, is amended to read as
follows:
(c) A licensee registrant or mortgage loan servicer may apply for
authority to open and maintain one or more branch offices. PROVIDED,
HOWEVER, NO LICENSEE, REGISTRANT OR MORTGAGE LOAN SERVICER SHALL BE
REQUIRED TO APPLY FOR AUTHORITY TO OPEN AND MAINTAIN A BRANCH OFFICE
WITH RESPECT TO ANY LOCATION THAT IS A REMOTE LOCATION.
§ 3. Paragraph (f) of subdivision 5 of section 590 of the banking law,
as relettered by chapter 540 of the laws of 2023, is relettered para-
graph (g) and a new paragraph (f) is added to read as follows:
(F)(I) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER OR ANY OTHER LAW,
RULE OR REGULATION TO THE CONTRARY, A LICENSEE, REGISTRANT, MORTGAGE
LOAN SERVICER, OR PERSON EXEMPT FROM LICENSING OR REGISTRATION THAT
EMPLOYS A LICENSED MORTGAGE LOAN ORIGINATOR, MAY ALLOW AN EMPLOYEE,
INCLUDING A MORTGAGE LOAN ORIGINATOR LICENSED PURSUANT TO ARTICLE
TWELVE-E OF THIS CHAPTER AND SPONSORED BY THE LICENSEE, REGISTRANT,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16009-01-6
S. 10587 2
SERVICER OR EXEMPT PERSON, TO ENGAGE IN LICENSABLE ACTIVITIES FROM A
REMOTE LOCATION PROVIDED:
(A) THE REMOTE LOCATION MAY NOT:
(1) BE OWNED OR LEASED BY THE EMPLOYER OR AN AFFILIATE OF THE EMPLOY-
ER, OR FOR THE BENEFIT OF THE EMPLOYER OR AN AFFILIATE OF THE EMPLOYER;
(2) BE A LOCATION THAT OFFERS TEMPORARY OFFICE SPACE UNLESS THE
EMPLOYEE IS USING THE LOCATION ON A TEMPORARY BASIS DUE TO THE UNAVAIL-
ABILITY OF THE EMPLOYEE'S REGULAR WORK LOCATION;
(3) BE HELD OUT TO THE PUBLIC BY USE OF SIGNAGE, ADVERTISEMENT, OR
OTHER MEANS, AS A LOCATION AT WHICH THE EMPLOYER CONDUCTS BUSINESS FOR
WHICH A LICENSE OR REGISTRATION IS REQUIRED;
(4) BE USED FOR THE RECEIPT OF MAIL RELATING TO BUSINESS FOR WHICH A
LICENSE OR REGISTRATION IS REQUIRED; OR
(5) BE USED TO CONDUCT A SPECIFIC ACT THAT APPLICABLE LAW, RULE OR
REGULATION REQUIRES BE CONDUCTED ONLY AT SPECIFIED LOCATIONS;
(B) THE REMOTE LOCATION SHALL BE AUTHORIZED BY THE LICENSEE, REGIS-
TRANT, SERVICER OR EXEMPT PERSON AS A LOCATION FROM WHICH THE SPECIFIC
EMPLOYEE MAY WORK REMOTELY;
(C) THE LICENSEE, REGISTRANT, SERVICER OR EXEMPT PERSON HAS WRITTEN
POLICIES AND PROCEDURES FOR SUPERVISION OF EMPLOYEES WORKING AT THEIR
RESIDENCE OR ANOTHER REMOTE LOCATION;
(D) THE LICENSEE, REGISTRANT, SERVICER OR EXEMPT PERSON SHALL MAINTAIN
AND UPDATE, AS APPROPRIATE, WRITTEN RECORDS WITH RESPECT TO AN EMPLOYEE
WORKING FROM REMOTE LOCATIONS, INCLUDING THE INITIAL AUTHORIZATION TO
WORK FROM ANY SUCH REMOTE LOCATION, ANY UPDATED AUTHORIZATION, AND
INFORMATION REGARDING THE LOCATION AND ANY DUE DILIGENCE UNDERTAKEN TO
ENSURE COMPLIANCE WITH APPLICABLE POLICIES AND PROCEDURES AND THIS PARA-
GRAPH. SUCH RECORDS SHALL BE MAINTAINED FOR THE GREATER OF TWO YEARS
FROM THE DATE THE EMPLOYEE CEASES USING SUCH REMOTE LOCATION IN
CONNECTION WITH THE BUSINESS FOR WHICH A LICENSE OR REGISTRATION IS
REQUIRED OR ANY RETENTION PERIOD REQUIRED BY APPLICABLE LAW, RULE OR
REGULATION;
(E) ACCESS TO COMPANY PLATFORMS AND CUSTOMER INFORMATION IS IN ACCORD-
ANCE WITH THE LICENSEE'S, REGISTRANT'S, SERVICER'S OR EXEMPT PERSON'S
WRITTEN INFORMATION SECURITY PLAN AND CYBERSECURITY PROGRAM AND POLI-
CIES;
(F) NO IN-PERSON INTERACTION OCCURS AT THE EMPLOYEE'S RESIDENCE UNLESS
THE RESIDENCE IS AN AUTHORIZED BRANCH LOCATION;
(G) PHYSICAL RECORDS ARE NOT MAINTAINED AT AND CANNOT BE PRODUCED AT A
REMOTE LOCATION;
(H) THE LOCATION PROVIDES A WORKSPACE THAT IS SECURE AND DESIGNED TO
PROTECT PERSONAL INFORMATION AS REQUIRED BY LAW, INCLUDING ENSURING THAT
CUSTOMER INTERACTIONS AND CONVERSATIONS ABOUT CONSUMERS WILL BE IN
COMPLIANCE WITH FEDERAL AND STATE INFORMATION SECURITY REQUIREMENTS,
INCLUDING APPLICABLE PROVISIONS UNDER THE FEDERAL GRAMM-LEACH-BLILEY ACT
AND THE SAFEGUARDS RULE ESTABLISHED BY THE FEDERAL TRADE COMMISSION AND
SET FORTH IN 16 CFR PART 314, AS SUCH REQUIREMENTS MAY BE AMENDED FROM
TIME TO TIME;
(I) EMPLOYEES WORKING AT A REMOTE LOCATION SHALL ACCESS THE COMPANY'S
SECURE SYSTEMS, INCLUDING A CLOUD-BASED SYSTEM, DIRECTLY FROM ANY OUT-
OF-OFFICE DEVICE THE EMPLOYEE USES, INCLUDING, BUT NOT LIMITED TO, A
LAPTOP, PHONE, DESKTOP COMPUTER, OR TABLET, VIA A VIRTUAL PRIVATE
NETWORK OR COMPARABLE SYSTEM THAT ENSURES SECURE CONNECTIVITY AND
REQUIRES MULTI-FACTOR AUTHENTICATION OR REASONABLY EQUIVALENT OR MORE
SECURE COMPENSATING CONTROLS IN ACCORDANCE WITH 23 NYCRR 500.12;
S. 10587 3
(J) THE LICENSEE, REGISTRANT, SERVICER OR EXEMPT PERSON ENSURES THAT
APPROPRIATE SECURITY UPDATES, PATCHES, OR OTHER ALTERATIONS TO THE SECU-
RITY OF ALL DEVICES USED AT REMOTE LOCATIONS ARE INSTALLED AND MAIN-
TAINED;
(K) THE LICENSEE, REGISTRANT, SERVICER OR EXEMPT PERSON SHALL HAVE THE
ABILITY TO REMOTELY LOCK OR ERASE COMPANY-RELATED CONTENTS OF ANY DEVICE
OR OTHERWISE REMOTELY LIMIT ALL ACCESS TO THE COMPANY'S SECURE SYSTEMS;
(L) THE LICENSEE, REGISTRANT, SERVICER OR EXEMPT PERSON SHALL EMPLOY
APPROPRIATE RISK-BASED MONITORING AND OVERSIGHT PROCESSES AND ANY
EMPLOYEE THAT WILL WORK FROM A REMOTE LOCATION MUST AGREE TO COMPLY WITH
SUCH ESTABLISHED PROCESSES;
(M) A LICENSEE, REGISTRANT OR SERVICER SHALL, AT LEAST ANNUALLY,
CERTIFY TO THE SUPERINTENDENT THAT ALL EMPLOYEES ENGAGED IN REMOTE
ACTIVITY FROM A REMOTE LOCATION MEET THE APPROPRIATE STANDARDS AND SAFE-
GUARDS TO CONTINUE SUCH ACTIVITY; AND
(N) THE NATIONWIDE MORTGAGE LICENSING SYSTEM/NATIONWIDE MORTGAGE
LICENSING SYSTEM AND REGISTRY RECORD OF A MORTGAGE LOAN ORIGINATOR THAT
WORKS FROM A REMOTE LOCATION SHALL DESIGNATE THE PRINCIPAL LOCATION OF
THE LICENSEE, REGISTRANT, SERVICER OR EXEMPT PERSON AS THE MORTGAGE LOAN
ORIGINATOR'S REGISTERED LOCATION, UNLESS THE MORTGAGE LOAN ORIGINATOR
ELECTS ANOTHER AUTHORIZED BRANCH OFFICE MAINTAINED BY THE LICENSEE,
REGISTRANT, SERVICER OR EXEMPT PERSON AS A REGISTERED LOCATION.
(II) IF THE SUPERINTENDENT DETERMINES THAT THE LICENSEE, REGISTRANT,
SERVICER OR EXEMPT PERSON, OR THE EMPLOYEE WORKING FROM A REMOTE
LOCATION, FAILS TO SATISFY THE REQUIREMENTS OF THIS PARAGRAPH OR THE
LICENSEE, REGISTRANT OR SERVICER FAILS TO HAVE ADEQUATE POLICIES AND
PROCEDURES TO SATISFY THE REQUIREMENTS OF THIS PARAGRAPH, THE SUPER-
INTENDENT MAY, IN ADDITION TO ANY PENALTIES AUTHORIZED BY THIS ARTICLE
AND APPLICABLE LAW:
(A) AFTER NOTICE AND A HEARING, LIMIT, RESTRICT OR CONDITION THE
AUTHORITY FOR THE LICENSEE, REGISTRANT, SERVICER OR EXEMPT PERSON TO
ALLOW EMPLOYEES TO ENGAGE IN A BUSINESS ACTIVITY THAT REQUIRES A LICENSE
OR REGISTRATION FROM A REMOTE LOCATION; OR
(B) TERMINATE, RESTRICT OR CONDITION THE ELIGIBILITY OF AN EMPLOYEE TO
ENGAGE IN BUSINESS ACTIVITIES THAT REQUIRE A LICENSE OR REGISTRATION
FROM A REMOTE LOCATION.
(III) THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO A PERSON EXEMPT
FROM LICENSING OR REGISTRATION UNDER THIS ARTICLE ONLY TO THE EXTENT
SUCH PERSON EMPLOYS AND SPONSORS A NATURAL PERSON LICENSED AS A MORTGAGE
LOAN ORIGINATOR PURSUANT TO ARTICLE TWELVE-E OF THIS CHAPTER. PROVIDED
THE REQUIREMENTS OF THIS PARAGRAPH ARE SATISFIED, AN INDIVIDUAL SHALL BE
PERMITTED TO WORK FROM A REMOTE LOCATION REGARDLESS OF THE DISTANCE THE
INDIVIDUAL'S RESIDENCE IS FROM A BRANCH OFFICE OR OTHER LOCATION OF A
LICENSEE, REGISTRANT, MORTGAGE LOAN SERVICER, OR PERSON EXEMPT FROM
LICENSING OR REGISTRATION. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER
OR ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY, PROVIDED THE
PROVISIONS OF THIS PARAGRAPH ARE SATISFIED, THE DISTANCE AN INDIVIDUAL
RESIDES FROM A LOCATION OF A LICENSEE, REGISTRANT, MORTGAGE LOAN SERVI-
CER, OR PERSON EXEMPT FROM LICENSING OR REGISTRATION, SHALL NOT BE A
FACTOR IN LICENSING AN INDIVIDUAL PURSUANT TO ARTICLE TWELVE-E WHEN THE
INDIVIDUAL WILL WORK FROM A REMOTE LOCATION.
§ 4. Subdivision 3 of section 591 of the banking law, as amended by
section 52 of part O of chapter 59 of the laws of 2006, is amended to
read as follows:
3. A licensee may apply for authority to open and maintain a branch
office by giving the superintendent prior notice of its intention in
S. 10587 4
such form as shall be prescribed by the superintendent. Unless the
superintendent denies the application within thirty days of publication
of notice of receipt of a completed application, the licensee shall be
permitted to open and maintain such branch office. An application to
open and maintain a branch office shall be accompanied by an investi-
gation fee as prescribed pursuant to section eighteen-a of this chapter.
A LICENSEE SHALL NOT BE REQUIRED TO APPLY FOR AUTHORITY TO OPEN AND
MAINTAIN A BRANCH OFFICE FOR A LOCATION THAT IS A REMOTE LOCATION.
§ 5. Subdivision 2 of section 591-a of the banking law, as amended by
section 53 of part O of chapter 59 of the laws of 2006, is amended to
read as follows:
2. A registrant may apply for authority to open and maintain a branch
office by giving the superintendent prior notice of its intention in
such form as shall be prescribed by the superintendent. Unless the
superintendent denies the application within thirty days of publication
of notice of receipt of a completed application, the registrant shall be
permitted to open and maintain such branch office. An application to
open and maintain a branch office shall be accompanied by an investi-
gation fee as prescribed pursuant to section eighteen-a of this chapter.
A REGISTRANT SHALL NOT BE REQUIRED TO APPLY FOR AUTHORITY TO OPEN AND
MAINTAIN A BRANCH OFFICE FOR A LOCATION THAT IS A REMOTE LOCATION.
§ 6. This act shall take effect on the thirtieth day after it shall
have become a law.
