Provides 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
A11565 would amend New York’s Banking Law to create a formal “remote location” framework for licensed mortgage loan originators and certain employees of licensed mortgage bankers, registered mortgage brokers, mortgage loan servicers, and some exempt entities that sponsor licensed originators. The bill allows these workers to perform licensable mortgage activities from home or another remote site, so long as the location is not held out as a public branch, is not used to receive business mail, and is not used for activities that must occur at a specified location. It also clarifies that remote work does not require a separate branch-office application when the location qualifies as a remote location.
To use this flexibility, the employer must authorize the remote location, maintain written supervision and security policies, keep records of remote-work authorizations and due diligence, and ensure secure access to company systems and customer information. The bill requires compliance with cybersecurity and privacy safeguards, including multi-factor authentication or equivalent controls, device security updates, remote wipe capability, and annual certification to the superintendent that standards are being met. It also provides that a mortgage loan originator working remotely is generally registered to the employer’s principal location unless another authorized branch is chosen, and it gives the superintendent enforcement authority to restrict or terminate remote-work privileges if the requirements are not met.
The bill would amend sections 590, 591, and 591-a of the Banking Law to expressly permit remote work for covered mortgage industry personnel without treating every home office or other remote site as a branch office. It would reduce regulatory burdens for licensees, registrants, mortgage loan servicers, and certain exempt employers by eliminating the need to seek branch authorization for qualifying remote locations, while adding detailed compliance obligations around supervision, cybersecurity, recordkeeping, and consumer information protection. The bill would also affect mortgage loan originator licensing and registration practices by allowing distance from a branch to be disregarded when the worker is operating from an approved remote location.
The available context shows no committee transcript, recorded votes, or opposition statements, so there is no documented debate to measure directly. Based on the bill’s structure and caption, the measure appears generally pro-industry and pro-flexibility, reflecting a post-pandemic remote-work accommodation for mortgage professionals. At the same time, the bill is written with extensive safeguards, suggesting an effort to balance operational flexibility with consumer protection and cybersecurity concerns.
The main potential points of contention are likely to be supervision, data security, and whether remote mortgage activity should be treated as equivalent to work performed at a regulated branch office. Regulators may be concerned about protecting consumer information, ensuring proper oversight, and preventing remote locations from functioning as unlicensed branches. Industry supporters would likely favor the reduced compliance burden and workforce flexibility, while any critics may focus on the risk that home-based or other remote settings could weaken recordkeeping, privacy, or enforcement controls.