S 10587

                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
                                   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;
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   (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.