NYSDFS PROPOSED RULE COULD DAMAGE NEW YORK’S HOUSING MARKET

On November 20, 2017, the New York Mortgage Bankers Association and the Mortgage Bankers Association (MBA) submitted joint comments to the New York State Department of Financial Services regarding a Department’s proposed rule, giving them broad enforcement authority over credit reporting agencies. The rule gives the Department the ability to refuse to renew, suspend or revoke the registration of a credit reporting agency, including any of the three nationwide credit reporting agencies. Should the Department take one of these actions against a nationwide CRA, borrowers in New York State would be unable to obtain a tri-merged credit report, a requirement for FHA, VA, USDA, Fannie Mae and Freddie Mac financing.  New York borrowers moving to other states would also be impacted. To view the proposed rule and the NYMBA/MBA comments, click on the following links:
PROPOSED RULE
NYMBA/MBA COMMENTS