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Connecticut issues order on remote notarization
On March 23, the Connecticut Governor issued an order to permit any notarial act required under Connecticut law to be performed using an electronic device or process that allows a notary public commissioned in accordance with state law and a remotely located individual to communicate with each other simultaneously by sight and sound, provided that certain conditions set forth in the order are met. This change is effective immediately through June 23, 2020.
Maryland issues industry advisory to mortgage servicers
On March 24, the Maryland Commissioner of Financial Regulation issued an industry advisory to mortgage servicers. The Commissioner strongly urges all Maryland-licensed mortgage servicers to take reasonable steps immediately to mitigate the impact of this crisis on their customers. Such steps may include, among others specified in the guidance, waiving late fees and online telephone payment fees, foregoing credit reporting during the health emergency or reporting payment information to credit reporting agencies in a manner that minimizes the impact of delinquent payment on borrowers’ credit histories, offering forbearance or other options to allow borrowers to defer payments, and reaching out to borrowers proactively to provide information on available assistance. The advisory also reminds servicers that all foreclosures of residential properties and the evictions in Maryland have been stayed in accordance with an order issued on March 18, 2020.
California governor extends tax, licensing deadlines
On March 25, the governor of California issued an executive order intended to provide relief to small businesses. The order provides businesses filing a return of less than $1 million in taxes with a 90-day extension to file first quarter returns and make tax payments. The order also extends by 60 days deadlines for submitting applications, paying fees, and submitting audited financial reports for a number of business licensees, including card rooms and online payer services. The order also suspends the requirements to request and receive the consent of shareholders for shareholder meetings to be held by electronic transmission or by electronic video screen communication.
Massachusetts DOB issues expectations for relief to mortgage borrowers
On March 25, the Massachusetts Division of Banks (DOB) issued a memorandum to financial institutions, mortgage lenders, and mortgage loan servicers outlining the actions the DOB “fully expects” institutions will take to alleviate the impact of Covid-19 on mortgage borrowers. The actions include (i) postponing foreclosures for 60 days; (ii) forbearing payments for 60 or more days; (iii) waiving fees for late payments and online payments for at least 60 days; (iv) refraining from reporting late payments to credit rating agencies for 60 days; (v) offering an additional 60-day grace period for borrowers to complete trial loan modifications; (vi) ensuring borrowers do not experience a disruption of service if a mortgage servicer closes its office; and (vii) proactively reaching out to borrowers to explain the assistance being offered. The memorandum also emphasizes that reasonable and prudent efforts to assist borrowers are consistent with safe and sound banking practices and will not be subject to examiner criticism.
Oklahoma governor issues executive order identifying critical infrastructure sectors
On March 25, the Office of the Governor issued Amended Executive Memorandum 2020-01 to identify additional sectors as critical infrastructure including financial services such as finance and insurance, real estate and leasing services, management of companies, business associations and financial advisory. The Oklahoma Commerce website identifies additional resources for essential business: (i) an Oklahoma Essential Business List, and (ii) an Essential Business Inquiry Form to allow business owners to request clarification for their industry regarding status as an essential business or to request that their industry be considered an essential business.
Massachusetts issues essential services FAQs
On March 25, Massachusetts posted a list of FAQs to assist businesses and consumers determine what is considered an essential business, as well as information to assist businesses seeking to qualify as essential.
Wisconsin Department of Financial Institutions issues emergency guidance on remote notarization
On March 18, the Wisconsin Department of Financial Institutions (DFI) issued emergency guidance authorizing remote online notarization in response to the Covid-19 crisis. Remote online notarizations must be performed using technology providers that are regulated under standards that meet or exceed the state safeguards. The DFI has approved four remote online notarization providers thus far, two each for remote notary services to the general public, and for title companies and other real-estate transactions.
Wisconsin Department of Financial Institutions issues temporary relief for registrants
On March 20, the Wisconsin Department of Financial Institutions (DFI) issued an emergency order granting temporary relief to registrants affected by the Covid-19 outbreak. The order offers relief from: (i) registration and filing requirements for professionals required to be registered with the division; (ii) the requirement to obtain physical signatures on the U4 form (Uniform Application for Securities Industry Registration or Transfer); and (iii) annual update filings and document delivery requirements by state-registered investment advisers.
Financial professionals who rely on and provision of the emergency order must keep a copy of the order in their records to demonstrate their reliance on it. This no-action relief will remain in effect until May 30, 2020, unless extended or rescinded.
Tennessee Department of Financial Institutions issues guidance to non-depository financial institutions
On March 23, The Tennessee Department of Financial Institutions issued interim guidance to all non-depository financial institutions and individuals licensed or registered with the Compliance Division. The guidance is intended to facilitate the ability of licensees and registrants to take precautions deemed necessary to avoid the risk of exposure to or transmission of COVID-19, and reminds businesses that business continuity plans should address the threat of pandemic outbreak and the potential impact on the delivery of financial services.
Washington offers temporary no-action relief for registrants affected by the Covid-19 outbreak
On March 24, the Washington State Department of Financial Institutions, Securities Division (DFI) announced it will take no action to enforce various provisions of the Securities Act in response to the Covid-19 crisis. This includes offering relief for: (i) registration and filing requirements for professionals required to be registered with the division; (ii) the requirement to obtain physical signatures on the U4 form (Uniform Application for Securities Industry Registration or Transfer); and (iii) annual update filings and document delivery requirements by state-registered investment advisers.
Financial professionals who rely on such no-action relief must keep a copy of the state order in their records to demonstrate their reliance on it. This no-action relief will remain in effect until April 30, 2020, unless extended or rescinded.