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New York State Department of Financial Services · NY

Letter Regarding Guidance on Management of Material Financial and Operational Risks from Climate Change

December 21, 2023

Summary

The New York State Department of Financial Services has issued final guidance requiring regulated mortgage bankers and servicers to integrate the management of material financial and operational risks stemming from climate change into their enterprise-wide risk management frameworks. Organizations are expected to assess these risks through their existing governance, strategy, and internal control structures.

Industry Letter


Date: December 21, 2023

To: New York State Regulated Banking and Mortgage Institutions

Subject: Guidance on Management of Material Financial and Operational Risks from Climate Change

Today, the New York State Department of Financial Services (DFS) issued Guidance for New York State Regulated Banking and Mortgage Institutions Relating to Management of Material Financial and Operational Risks from Climate Change. The guidance covers New York State-regulated banking organizations, New York State-licensed branches and agencies of foreign banking organizations, and New York State-regulated mortgage bankers and mortgage servicers.

DFS has finalized the guidance with careful consideration of the valuable feedback received from regulated entities and other key stakeholders. In response to feedback, the Department has also published available resources to assist organizations as they work to adopt measures that address their climate-related risk.

In furtherance of the Department’s commitment to ensuring entities understand the guidance, DFS will host a webinar on January 11, 2024, at 11:30 am EST. Webinar information and registration links are available on the Department’s website.

Source: https://www.dfs.ny.gov/industry_guidance/industry_letters/il20231221_guidance_on_management

Common questions

What does "Letter Regarding Guidance on Management of Material Financial and Operational Risks from Climate Change" cover?
The New York State Department of Financial Services has issued final guidance requiring regulated mortgage bankers and servicers to integrate the…
Which agency issued this update?
This update was issued by New York State Department of Financial Services.
When was it published?
It was published on December 21, 2023.

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