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.
STATE OF NEW YORK
________________________________________________________________________
10587
IN SENATE
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:
1 Section 1. Subdivision 1 of section 590 of the banking law is amended
2 by adding a new paragraph (j) to read as follows:
3 (j) "Remote location" shall mean a location at which an employee of a
4 licensee, registrant, mortgage loan servicer or person exempt from
5 licensing or registration that employs a mortgage loan originator
6 licensed pursuant to article twelve-E of this chapter, may conduct busi-
7 ness other than the principal location or branch office of a licensee,
8 registrant, servicer or exempt person.
9 § 2. Paragraph (c) of subdivision 2 of section 590 of the banking law,
10 as amended by chapter 472 of the laws of 2008, is amended to read as
11 follows:
12 (c) A licensee registrant or mortgage loan servicer may apply for
13 authority to open and maintain one or more branch offices. Provided,
14 however, no licensee, registrant or mortgage loan servicer shall be
15 required to apply for authority to open and maintain a branch office
16 with respect to any location that is a remote location.
17 § 3. Paragraph (f) of subdivision 5 of section 590 of the banking law,
18 as relettered by chapter 540 of the laws of 2023, is relettered para-
19 graph (g) and a new paragraph (f) is added to read as follows:
20 (f)(i) Notwithstanding any provision of this chapter or any other law,
21 rule or regulation to the contrary, a licensee, registrant, mortgage
22 loan servicer, or person exempt from licensing or registration that
23 employs a licensed mortgage loan originator, may allow an employee,
24 including a mortgage loan originator licensed pursuant to article
25 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
1 servicer or exempt person, to engage in licensable activities from a
2 remote location provided:
3 (A) the remote location may not:
4 (1) be owned or leased by the employer or an affiliate of the employ-
5 er, or for the benefit of the employer or an affiliate of the employer;
6 (2) be a location that offers temporary office space unless the
7 employee is using the location on a temporary basis due to the unavail-
8 ability of the employee's regular work location;
9 (3) be held out to the public by use of signage, advertisement, or
10 other means, as a location at which the employer conducts business for
11 which a license or registration is required;
12 (4) be used for the receipt of mail relating to business for which a
13 license or registration is required; or
14 (5) be used to conduct a specific act that applicable law, rule or
15 regulation requires be conducted only at specified locations;
16 (B) the remote location shall be authorized by the licensee, regis-
17 trant, servicer or exempt person as a location from which the specific
18 employee may work remotely;
19 (C) the licensee, registrant, servicer or exempt person has written
20 policies and procedures for supervision of employees working at their
21 residence or another remote location;
22 (D) the licensee, registrant, servicer or exempt person shall maintain
23 and update, as appropriate, written records with respect to an employee
24 working from remote locations, including the initial authorization to
25 work from any such remote location, any updated authorization, and
26 information regarding the location and any due diligence undertaken to
27 ensure compliance with applicable policies and procedures and this para-
28 graph. Such records shall be maintained for the greater of two years
29 from the date the employee ceases using such remote location in
30 connection with the business for which a license or registration is
31 required or any retention period required by applicable law, rule or
32 regulation;
33 (E) access to company platforms and customer information is in accord-
34 ance with the licensee's, registrant's, servicer's or exempt person's
35 written information security plan and cybersecurity program and poli-
36 cies;
37 (F) no in-person interaction occurs at the employee's residence unless
38 the residence is an authorized branch location;
39 (G) physical records are not maintained at and cannot be produced at a
40 remote location;
41 (H) the location provides a workspace that is secure and designed to
42 protect personal information as required by law, including ensuring that
43 customer interactions and conversations about consumers will be in
44 compliance with federal and state information security requirements,
45 including applicable provisions under the federal Gramm-Leach-Bliley Act
46 and the Safeguards Rule established by the Federal Trade Commission and
47 set forth in 16 CFR Part 314, as such requirements may be amended from
48 time to time;
49 (I) employees working at a remote location shall access the company's
50 secure systems, including a cloud-based system, directly from any out-
51 of-office device the employee uses, including, but not limited to, a
52 laptop, phone, desktop computer, or tablet, via a virtual private
53 network or comparable system that ensures secure connectivity and
54 requires multi-factor authentication or reasonably equivalent or more
55 secure compensating controls in accordance with 23 NYCRR 500.12;
S. 10587 3
1 (J) the licensee, registrant, servicer or exempt person ensures that
2 appropriate security updates, patches, or other alterations to the secu-
3 rity of all devices used at remote locations are installed and main-
4 tained;
5 (K) the licensee, registrant, servicer or exempt person shall have the
6 ability to remotely lock or erase company-related contents of any device
7 or otherwise remotely limit all access to the company's secure systems;
8 (L) the licensee, registrant, servicer or exempt person shall employ
9 appropriate risk-based monitoring and oversight processes and any
10 employee that will work from a remote location must agree to comply with
11 such established processes;
12 (M) a licensee, registrant or servicer shall, at least annually,
13 certify to the superintendent that all employees engaged in remote
14 activity from a remote location meet the appropriate standards and safe-
15 guards to continue such activity; and
16 (N) the Nationwide Mortgage Licensing System/Nationwide Mortgage
17 Licensing System and Registry record of a mortgage loan originator that
18 works from a remote location shall designate the principal location of
19 the licensee, registrant, servicer or exempt person as the mortgage loan
20 originator's registered location, unless the mortgage loan originator
21 elects another authorized branch office maintained by the licensee,
22 registrant, servicer or exempt person as a registered location.
23 (ii) If the superintendent determines that the licensee, registrant,
24 servicer or exempt person, or the employee working from a remote
25 location, fails to satisfy the requirements of this paragraph or the
26 licensee, registrant or servicer fails to have adequate policies and
27 procedures to satisfy the requirements of this paragraph, the super-
28 intendent may, in addition to any penalties authorized by this article
29 and applicable law:
30 (A) after notice and a hearing, limit, restrict or condition the
31 authority for the licensee, registrant, servicer or exempt person to
32 allow employees to engage in a business activity that requires a license
33 or registration from a remote location; or
34 (B) terminate, restrict or condition the eligibility of an employee to
35 engage in business activities that require a license or registration
36 from a remote location.
37 (iii) The provisions of this paragraph shall apply to a person exempt
38 from licensing or registration under this article only to the extent
39 such person employs and sponsors a natural person licensed as a mortgage
40 loan originator pursuant to article twelve-E of this chapter. Provided
41 the requirements of this paragraph are satisfied, an individual shall be
42 permitted to work from a remote location regardless of the distance the
43 individual's residence is from a branch office or other location of a
44 licensee, registrant, mortgage loan servicer, or person exempt from
45 licensing or registration. Notwithstanding any provision of this chapter
46 or any other law, rule or regulation to the contrary, provided the
47 provisions of this paragraph are satisfied, the distance an individual
48 resides from a location of a licensee, registrant, mortgage loan servi-
49 cer, or person exempt from licensing or registration, shall not be a
50 factor in licensing an individual pursuant to article twelve-E when the
51 individual will work from a remote location.
52 § 4. Subdivision 3 of section 591 of the banking law, as amended by
53 section 52 of part O of chapter 59 of the laws of 2006, is amended to
54 read as follows:
55 3. A licensee may apply for authority to open and maintain a branch
56 office by giving the superintendent prior notice of its intention in
S. 10587 4
1 such form as shall be prescribed by the superintendent. Unless the
2 superintendent denies the application within thirty days of publication
3 of notice of receipt of a completed application, the licensee shall be
4 permitted to open and maintain such branch office. An application to
5 open and maintain a branch office shall be accompanied by an investi-
6 gation fee as prescribed pursuant to section eighteen-a of this chapter.
7 A licensee shall not be required to apply for authority to open and
8 maintain a branch office for a location that is a remote location.
9 § 5. Subdivision 2 of section 591-a of the banking law, as amended by
10 section 53 of part O of chapter 59 of the laws of 2006, is amended to
11 read as follows:
12 2. A registrant may apply for authority to open and maintain a branch
13 office by giving the superintendent prior notice of its intention in
14 such form as shall be prescribed by the superintendent. Unless the
15 superintendent denies the application within thirty days of publication
16 of notice of receipt of a completed application, the registrant shall be
17 permitted to open and maintain such branch office. An application to
18 open and maintain a branch office shall be accompanied by an investi-
19 gation fee as prescribed pursuant to section eighteen-a of this chapter.
20 A registrant shall not be required to apply for authority to open and
21 maintain a branch office for a location that is a remote location.
22 § 6. This act shall take effect on the thirtieth day after it shall
23 have become a law.
