NY A00773

Requires covered entities (state-licensed banks, foreign banking corporations, and licensed lenders) using automated lending decision-making tools to conduct annual impact assessments signed by individuals responsible for meaningful human review

Mandates impact assessments evaluate algorithmic accuracy, fairness, bias, discrimination across protected classes (race, gender, age, disability, etc.), cybersecurity vulnerabilities, privacy risks, and data collection practices

Requires covered entities to publish impact assessment summaries on their websites and retain full assessments for seven years, with reports due to the Department of Financial Services within seven days upon request

Obligates lenders to notify loan applicants at least 24 hours before using automated tools, disclose evaluation criteria and data sources, and provide denial reasons within 24 hours after rejection, with a 30-day appeal window to correct incorrect information

Empowers the Superintendent of Financial Services to investigate violations, compel testimony and document production, and order cessation of discriminatory tools within 30 days of bias findings being reported