Requires covered lenders to report to the department of financial services certain information on covered loans

◆ The sponsor's argument

Why James Sanders Jr. says this is needed

New York's lending and commercial financing markets have evolved rapidly in recent years through the growth of fintech and nontraditional financ- ing arrangements such as sales-based financing, factoring transactions, and other lightly regulated financial products. Many of these arrange- ments operate outside traditional lending frameworks and may obscure the true source, cost, or ownership of financing provided to New York borrowers. Currently, New York lacks a reporting framework capable of providing policymakers and regulators with reliable aggregate data regarding these markets. This bill establishes a supervisory reporting and transparency framework for covered loans in New York. The bill does not prohibit lawful lending activity or impose new interest-rate limitations. Instead, it author- izes the Department of Financial Services to collect, analyze, and publish aggregated information regarding nontraditional financing arrangements affecting New York borrowers and businesses. By improving transparency into these markets, this bill will assist policymakers and regulators in identifying emerging risks and addressing evasive, predatory, or illegal financing practices operating in New York State with minimal or no oversight.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.