AR HB1466

Establishes new "covered institution servicer" classification for nonbank mortgage servicers handling 2,000+ residential loans across 2+ states, requiring compliance with Federal Housing Finance Agency capital, net worth, and liquidity standards

Increases net worth requirements for mortgage servicer applicants from $25,000 to $100,000 for standard servicers, with covered institution servicers required to meet FHFA eligibility requirements for seller/servicers

Creates mandatory information security program requirements for financial institutions, including written risk assessments, encryption of customer data, multifactor authentication, penetration testing, and incident response plans

Requires covered institution servicers to establish boards of directors, internal/external audit programs, and risk management frameworks with annual reporting to board and availability to Securities Commissioner

Mandates notification to Securities Commissioner within 45 days of discovering data breaches affecting Arkansas consumers, with exemption for institutions maintaining information on fewer than 5,000 consumers