Proposed N.Y. Budget Legislation Would Regulate Fintech Lending Market

New York Governor Andrew Cuomo proposed budget legislation that would amend the New York Licensed Lenders Law and give the Department of Financial Services increased authority over the licensing of certain entities. The proposed legislation would amend Section 340 to require the licensing of any entity that markets (but does not originate) loans to New York residents if that same entity, in connection with such solicitation, also "purchases or otherwise acquires from others loans or other forms of financing, or arranges or facilitates the funding of loans." Under the current Licensed Lender Law, only those entities that actually "make" loans are subject to licensing. If adopted, the proposed amendment would become effective in January 2018.