BILL NUMBER: S7752A
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the banking law, in relation to an exemption from the
licensing requirements for servicers of student loans
 
PURPOSE OR GENERAL IDEA OF BILL:
Requires exempt student loan servicers to comply with the student loan
servicer reporting requirements under article 9 of the financial
services law.
 
SUMMARY OF PROVISIONS:
Section 1:Amends subdivision 2 of section 711 of the banking law to
include a cross reference to article 9 of the financial services law,
which establishes student loan servicer reporting requirements.
Section 2: Effective Date.
 
JUSTIFICATION:
Although certain student loan servicers are exempt from licensing under
article 14-A of the banking law, they are still required to comply with
certain student loan servicer laws and regulations. To promote greater
transparency in the student loan market, this bill clarifies that such
exempt student loan servicers are required to comply with article 9 of
the financial services law, which establishes student loan reporting
requirements.
Such student loan reporting requirements include, without limitation,
information on trends in loan origination, terms and conditions, differ-
ences in financing costs across demographic groups, and default rates.
No identifying information on student loan borrowers is required to be
reported.
 
PRIOR LEGISLATIVE HISTORY:
None.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7752: 902 financial services law, 902(1) financial services law
S7752A: 711 banking law, 711(2) banking law