Louisiana Office of Financial Institutions issues guidance to non-depository licensees regarding Covid-19 relief

State Issues Covid-19 Louisiana Licensing Mortgages

On April 14, the Louisiana Office of Financial Institutions issued guidance to non-depository licensees regarding Covid-19 relief. Although sections 4021 and 4022 of the CARES Act are specific to federally-backed mortgage loans, the OFI encourages all lenders to follow the terms of the provisions for all non-federally-backed mortgage loans as if they were federally-backed. Licensed lenders that offer deferred presentment transactions, small loans, or consumer loans are encouraged to provide certain relief options to borrowers, such as accepting partial payments, waiving fees, deferring payments and suspending negative credit reporting. Check cashers are also encouraged to offer discounted fees to customers during the crisis. Finally, non-depository licensees that temporarily close their locations are urged to post a notice at the location containing their contact information to assist customers with any questions.