NYDFS Industry Letter: New York State's Fair Lending Law - New York Executive Law Section 296-a (April 22, 2026)

Issued the same day the CFPB published its final rule deleting the effects test from Regulation B. The letter reminds regulated entities that under Executive Law Section 296-a, “covered credit decisions that result in a disparate impact may constitute an unlawful discriminatory practice.” The letter paraphrases the statute as prohibiting discrimination in “the granting, withholding, extending, or renewing, or in the fixing of the rates, terms, or conditions of any form of credit.” The statute itself, Executive Law 296-a(1)(b), reads “in the granting, withholding, extending or renewing, or in the fixing of the rates, terms or conditions of, any form of credit,” and does not use the term disparate impact. The letter does not reference the CFPB’s final rule by name.