Establishes a working group to create a pilot program for an alternative system to a credit score for unbanked persons, undocumented immigrants and any other individuals who would benefit from such alternative system.
Summary
This bill would amend the New York financial services law to add a new section establishing a creditworthiness alternative pilot and working group within the Department of Financial Services. The superintendent would appoint a working group made up of representatives from the financial industry and immigration advocates to study and design a pilot program that could assess creditworthiness without relying on a traditional credit score.
The bill is aimed at people who do not have a credit score, including unbanked individuals, undocumented immigrants, indigent individuals, and others who could benefit from an alternative mechanism. The working group would be required to meet at least monthly, review alternative models already being discussed in other markets such as Europe, and deliver recommendations and an implementation timeline to the superintendent, governor, and legislature within one year. The act would take effect immediately.
Impact
The bill would create a new section of the Financial Services Law and direct the superintendent of financial services to convene and oversee a working group, but it does not itself change lending standards or create a pilot program immediately. Its legal effect is to authorize a study and planning process for an alternative creditworthiness system, potentially influencing future regulation, consumer finance practices, and access to credit for populations excluded by traditional scoring models. It would affect the Department of Financial Services, lenders, and consumers who lack conventional credit histories.
Sentiment
The available context suggests generally supportive intent, with the bill framed as an access-to-credit and financial inclusion measure. The caption emphasizes assistance for unbanked persons, undocumented immigrants, and others who may benefit from an alternative system, indicating a policy goal of expanding participation in the financial system. No votes or committee transcripts are available, so there is no recorded opposition or formal legislative debate in the provided materials.
Contention
The main potential points of contention are likely to be the inclusion of undocumented immigrants among the intended beneficiaries, the role of immigration advocates on the working group, and whether alternative credit assessment models could adequately protect lenders from risk. Another possible concern is whether the state should devote resources to a pilot and working group before any proven system is identified. Because no committee discussion or vote history is provided, these concerns are inferred from the bill’s structure and target population rather than from recorded objections.
Same As
Establishes a working group to create a pilot program for an alternative system to a credit score for unbanked persons, undocumented immigrants and any other individuals who would benefit from such alternative system.
Establishes a working group to create a pilot program for an alternative system to a credit score for unbanked persons, undocumented immigrants and any other individuals who would benefit from such alternative system.
Alternative Data for Additional Credit FHA Pilot Program Reauthorization Act This bill establishes a pilot program for an additional credit rating system for use by mortgage lenders. Specifically, the program must utilize one or more commercially available credit scoring models that apply additional credit information about borrowers who have insufficient credit histories for purposes of determining their creditworthiness for mortgages insured by the Federal Housing Administration.
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