New 2025 Regulations: What They Mean for Credit and Tenant Screening Compliance

TL;DR

As of January 1, 2025, two major regulations have gone into effect:

• Minnesota’s Manual Review Law (SF3492) requires all background data to be manually verified within 24 hours before being released.
• New York City’s Fair Chance for Housing Law (Local Law 24) restricts the use of criminal records in tenant screening, only allowing landlords to consider specific offenses.

CRS has updated its compliance solutions to help businesses navigate these regulatory changes while ensuring efficient and accurate screening.

Minnesota’s Manual Review Law: Strengthening Data Accuracy

What’s Changed?

Under SF3492, Minnesota now mandates manual verification of public records before they can be reported. This ensures that background screening data is thoroughly reviewed for accuracy and compliance.

Key Takeaways:

• All public records must be manually verified within 24 hours before being released.
• The average turnaround time for background reports is now 1-2 business days.
• If an applicant’s report is paused for review, they will receive a notification that manual verification is required.
• CRS has implemented real-time verification updates within its API, allowing clients to know when records are reviewed and ready for use.

Why This Matters

For lenders, landlords, and businesses that rely on background checks, this law ensures higher accuracy but may introduce slight delays in turnaround times. Companies using automated decision-making processes should be aware of potential workflow adjustments.

New York City’s Fair Chance for Housing Law: Expanding Tenant Protections

What’s Changed?

New York City has enacted Local Law 24, also known as the Fair Chance for Housing Law, which restricts the use of criminal records in tenant screening to prevent housing discrimination.

Key Takeaways:

• Landlords and realtors cannot use most criminal records in making rental decisions.
• They may only consider:
  • Sex offenses (any timeframe).
  • Misdemeanors within the last 3 years.
  • Felonies within the last 5 years.

Why This Matters

Property managers and landlords must update their tenant screening policies to avoid legal liability under the new law. Automated tenant screening tools should be updated to exclude unauthorized criminal records from decision-making criteria.

How CRS Helps You Stay Compliant

To stay ahead of these regulatory changes, CRS has updated its credit and tenant screening solutions to ensure compliance with evolving laws.

• Manual review support ensures all Minnesota records meet the 24-hour verification requirement.
• Automated compliance filters help landlords and financial institutions align with NYC’s tenant screening restrictions.
• Real-time status updates allow clients to track when background data is verified and ready for decision-making.

For financial institutions, landlords, and lenders, compliance with these laws isn’t optional—it’s a necessity. Failing to adapt could result in fines, legal challenges, and reputational damage.

Next Steps

To ensure your screening process remains compliant:
✅ Review your background check policies to align with new laws.
✅ Update automation workflows to account for manual review requirements.
✅ Partner with CRS to access compliance-ready credit and screening data solutions.

📩 Need help ensuring compliance? Contact us at [email protected] to learn more about how CRS can support your regulatory needs.