Financial Services Committee Update
December 17, 2012

Governor Makes Tax Commission Appointments

This week, Governor Cuomo named an ten-person commission on tax reform and fairness. This panel, first announced last December, is assigned to make “revenue neutral” recommendations for reforming the state’s personal income, business and sale tax laws. Specifics on the commission’s operations and timing are not yet available. The Business Council, through its Tax Committee, will be monitoring the Commission and providing our reform recommendations. The press release announcing the Commission is available here. Staff contact: ken.pokalsky@bcnys.org.

The DFS to Offer Insurance Assistance in New York City and Long Island

Benjamin M. Lawsky, Superintendent of Financial Services, announced this week that representatives of the Department of Financial Services will be at six locations in Nassau County and New York City to offer help to homeowners, renters and business owners with insurance-related issues stemming from damage caused by Storm Sandy. The Department’s representatives will be available to meet with residents inside the agency’s Mobile Command Center at the designated locations. The press release and listing of assistance locations can be found here.

New Emergency Rule on the Assessment of Entities Regulated by the Banking Division of the DFS

Last month the Department of Financial Services adopted this emergency rule formalizing the Banking Division’s assessment methodology on regulated entities. One change is that the regulatory costs assessed to the mortgage banking industry will be divided among the entities in that group on a basis which includes income derived from secondary market and servicing activities. Larger members of the mortgage banking industry will likely pay an increased portion of the total cost of regulating that industry. The text of the rule can be found here
(page 9-12).

New Emergency Rule Requiring Mortgage Loan Originators to be Licensed

The Department of Financial Services has adopted an emergency rule that requires individuals engaging in mortgage loan origination activities to be licensed by the Superintendent of DFS. Mortgage Loan originators must now complete new education, testing and bonding requirements prior to licensure. The text of the rule can be found here (page 10-13).