Annual Assessment Charges

Application Fees

Refer to the Department's Application Fee Schedule to determine the fee for an application being filed with the Department.

General Assessments and DFS Operating Expenses

In accordance with Section 206 of the New York State Financial Services Law, entities regulated under the Banking and Insurance Laws are assessed by the superintendent for the operating expenses of the department. These operating expenses include regulation and supervision (including examination) of regulated entities.

Virtual Currency Assessments

In April 2022, Section 206 was amended to direct the superintendent to assess entities regulated under the Financial Services Law that engage in “virtual currency business activity” in keeping with the assessment framework already in effect for entities regulated under the Banking and Insurance Laws. 23 NYCRR Part 102, adopted on April 17th, 2023 established the process for how licensed virtual currency businesses would be assessed for costs of their supervision and examination.

• Learn more about Assessment Charges for BitLicense

Assessment Calculation Charts

After every quarterly billing, a chart is posted here that shows how bills were computed. It shows the number of institutions in each category, the supervisory and regulatory rates, and how we computed your supervisory and regulatory amounts.

FY 2023-2024

• Quarter 2
• Quarter 1

FY 2022-2023

• Quarter 4
• Quarter 3
• Quarter 2
• Quarter 1

FY 2021-2022

• Quarter 4
• Quarter 3
• Quarter 2
• Quarter 1

FY 2020-2021

• Quarter 4
• Quarter 3
• Quarter 2
• Quarter 1

Billing Schedule

The New York State fiscal year begins April 1 and ends March 31.

Each institution is billed five times for a fiscal year: four estimated quarterly assessments (approximately 25% of the annual amount) based on the Banking Division’s estimated annual budget at the time of the billing, and a final assessment, or true-up, based on the Division’s actual expenses for the fiscal year. Any institution that is a Regulated Entity for any part of a quarter is assessed for the full quarter.

Once the fiscal year is closed, a Final Assessment is computed. This generally occurs in December of the following fiscal year. At that time, the Final Assessment for each institution is calculated, estimated billings are subtracted, and the amount due the Department or credit due the institution is identified. Our goal is to make the estimated bills very close to the final assessment amount so there is a small amount due or refunded.

If an institution’s estimated quarterly payments exceed their final annual assessed amount, the overpayment is applied against the next estimated quarterly assessment, if less than or equal to such amount, with any excess refunded. If the quarterly estimated charges are less than the final annual assessed amount, the institution will be billed the difference.

Billing Schedule and Payment Due Dates

Payments

Payment must be received in the Office of Financial Management in Albany by the due date. Failure to pay will result in additional penalties, interest and regulatory action described on the bill and accompanying letter.

Payment by credit card is not available at this time. Entities may sign up for ACH debit, to deduct the assessment fee from your bank account on the due date. You will still receive an invoice, but you don’t need to mail a check. The form to sign up for ACH debit is mailed with each quarterly invoice.

In addition to ACH debit or mailing a check, electronic payments may be initiated using DFS ePay.

• Learn more about how to use ePay.

Late Fees

Section 592(a) of the Banking Law mandates a $100 late fee if payment is not received in the Office of Financial Management in Albany by the due date. Furthermore, if the assessment payment plus the late fee is not received within 30 days of the due date, the registration will expire. Additional interest is charged during the 60-day period after expiration. Mortgage brokers can automatically reinstate their registration within this period by paying the assessment plus the late fee and interest. Once your registration has expired, payment must be made promptly through the DFS ePay system, by certified check, bank check, money order, or by wire made payable to the Superintendent of Financial Services and mailed. If payment is not received during the 60-day reinstatement period, the expiration becomes permanent, and a new  application must be filed and approved before you can conduct business in New York State.

Computations

Estimated Quarterly Bills

Each quarter, the estimated annual amount (Assessment Calculation) is computed.

The estimated annual amount is the sum of the Supervisory Component and the estimated Regulatory Component. After adjusting for fees associated to an industry group, the Supervisory Component is computed by multiplying the number of hours for institutions of similar type and size (“buckets” found on the assessment calculation chart) by the hourly rate for the institution type. The supervisory hours and rates are established in January, prior to the 1st quarter (February 5) billing, and remain the same throughout the fiscal year. The total Regulatory Component is allocated to each institution in proportion to their financial basis (a measure of volume, e.g. assets, gross revenue, NY loans, etc.) divided by the total financial basis for the industry group.

Once the estimated annual amount is determined, quarterly bills are computed as follows:

• 1st Quarter = estimated annual amount divided by 4.
• 2nd Quarter = estimated annual amount, less the amount billed to date, divided by 3.
• 3rd Quarter = estimated annual amount, less the amount billed to date, divided by 2.
• 4th Quarter = estimated annual amount, less the amount billed to date.
• Final Assessment (true-up) = actual annual assessment amount less the estimated amount billed to date.

Examination Bills

There are no separate bills for regular examination activity. Only in the case of special examinations, and at the direction of the Superintendent, will separate examination bills be issued.

• New Depository Institutions are billed based on their opening assets on the date their charter became effective.
• Newly Licensed Institutions are billed supervisory charges only, until the following fiscal year when they report their volume (financial basis).

Financial Basis

The financial basis is a measure of the size or volume of a business, and is used to pro-rate the total industry Regulatory Component to each institution within that industry group. The basis used to calculate the actual final assessment is the amount from the previous calendar year, e.g. December 31, 2013, for the 2014-15 state fiscal year. The basis for the 1st quarter, billed February 5, will be as of September 30 for Depositories and Money Transmitters, and the prior year for all other licensees, until the December 31 figures are reported.

The assessment is based on the financial basis as of December 31 of the year prior to the start of the current fiscal year on file with the Department. This allows for a stable financial basis providing relative size information for all institutions within each industry, and minimizes fluctuation in bills from quarter to quarter. The 1st quarter bill, however, we use the prior year’s basis for institutions that file an annual report. For Depository Institutions and Money Transmitters, who file quarterly reports, we use the basis as of September 30 of the previous year. For the 2nd through 4th quarter and final assessment, we update to the basis as of December 31 of the year prior to the start of the fiscal year. The December 31 data is the final basis for the full fiscal year.

Additional information about the assessment may be found in Part 501 of the Superintendent’s Regulations.

Financial Basis by Institution

Inactive Mortgage Brokers

Inactive mortgage brokers are still billed for the General Assessment. The regulatory portion of the General Assessment is based on business volume as reported on your Volume of Operation Report (VOOR). If the volume reported on the VOOR is zero, you will not be assessed a Regulatory Component of the General Assessment. You will, however, be assessed the minimum Supervisory Component of the general assessment. 

The Department utilizes the information provided on the VOOR and VOSR to assess the level of resources needed in its overall regulation and oversight of mortgage-related entities. Furthermore, gross revenue figures are an integral part of the Department’s assessment process. Thus, late filing of the VOOR and VOSR and submission of erroneous information weaken the Department’s ability to effectively assign examiner resources, timely finalize its billing process, and adequately analyze industry trends.

Assessment Calculation

The initial step in the assessment calculation is to identify the percentage of total charges applicable to each industry, and apply those percentages to the total Banking Division budget to arrive at the respective assessment charges for each industry. Percentages are developed based on the industry’s respective staffing costs. Once industry assessment costs are known, an adjustment is taken for fees collected, then supervisory and regulatory costs for each industry are determined, as described below. The sum of the supervisory and regulatory assessment for each industry equals that industry’s respective assessment charges.

Supervisory

The Supervisory Component of the assessment calculation considers the time it takes to supervise institutions of similar size and type, as determined by the Superintendent (supervisory hours by institution size), and the overall average hourly cost of examining staff overseeing that industry (hourly rate). The calculation is as follows:

Regulatory

The Regulatory Component of the assessment calculation is derived by taking the specific industry’s total assessment cost minus the industry Supervisory Component of the General Assessment and any miscellaneous revenues (such as investigation fees) for that industry. The calculation is as follows:

Quarterly assessment calculations are estimated based on year-to-date actual expenses, plus estimated expenses for the balance of the fiscal year. After the close of the fiscal year, a Final Assessment is computed based on actual expenses accruing to the Banking Division.

Disputing a Bill or Financial Basis

To dispute a bill and request a revision of your financial basis, you must submit a letter within 30 days of receipt of your bill. The letter must be sent to:

New York State Department of Financial Services
Office of Financial Management
One Commerce Plaza
Albany, NY 12257

Entities requesting a revision to their financial basis should be aware that they may be subject to a special examination based on erroneous information reported. At the discretion of the Superintendent, examination fees for special examinations may be charged directly to the institution. In addition, other penalties may apply.

Mortgage bankers and brokers, desiring to amend their VOOR financials should request instruction on how to revise a filed VOOR by contacting the VOOR unit at (212) 709-3844 or sending a formal letter to:

New York State Department of Financial Services
MB - VOOR Unit
1State Street
New York, NY 10004

Questions?

• For questions related to a banking assessment, email [email protected]
• For questions related to Regulation 20 or an insurance assessment, email [email protected]
• For questions related to a virtual currency assessment, email [email protected]
• For questions related to an examination bill, email [email protected]
• For questions related to Retaliatory Tax, email [email protected]