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Colorado Division of Banking issues guidance to state-chartered financial institutions
On March 16, the Colorado State Bank Commissioner issued guidance requesting that financial institutions notify the Division of Banking of any issues they may experience involving continuing operations, any unusual account withdrawals, FDIC insurance questions, or any other banking matter. The guidance also requests email notification of any changes to the financial institutions’ banking hours. With respect to scheduled and upcoming examinations, the Division is prepared to “adjust planned supervisory activities as events dictate, and will conduct as much of the examination as possible offsite.”
Connecticut Department of Banking issues guidance to state chartered banks and credit unions
On March 17, the Connecticut Department of Banking issued guidance to Connecticut state chartered banks and credit unions on Covid-19-related issues. The guidance encourages financial institutions to work with all borrowers whose ability to make loan repayments may be impacted by Covid-19. Such efforts may include easing credit terms for new loans, waiving overdraft fees, increasing the number of allowed money market withdrawals, waiving CD early withdrawal penalties, waiving late fees for loan balances, and offering payment accommodations. The guidance notes that any modifications to existing loans deemed prudent by financial institutions in light of the circumstances will not be subject to regulatory criticism. The guidance also requests that financial institutions inform their servicers and collection agencies regarding the servicers’ policies so that borrowers receive information about possible accommodations.
Connecticut Department of Banking issues guidance to residential mortgage servicers
On March 18, the Connecticut Department of Banking issued guidance to residential mortgage servicers on Covid-19-related issues. The Department encourages mortgage servicers to work with all borrowers whose ability to make loan repayments may be impacted by Covid-19. Such efforts may include waiving late fees, offering forbearance plans or other deferment options, and having adequate staff available to proactively work with borrowers. Mortgage servicers should also inform their internal and external collection teams regarding the servicers’ policies so that borrowers receive information about possible accommodations. The guidance also notes that Connecticut is extending Small Business Express loans for 90 days, offering a 90-day grace period on making payments, and delaying payment of some business taxes for 60 to 90 days.
Connecticut issues stay at home order
On March 20, the Connecticut Governor issued a stay at home order. The order requires non-essential businesses or not-for-profit entities to reduce their in-person workforces at any workplace locations by 100%. Essential businesses include banks, insurance companies, check cashing services, and other financial institutions. The order is effective from 8:00 PM on March 23, 2020, through April 22, 2020, unless earlier modified, extended, or terminated by the Governor. On March 22, the Connecticut Governor issued a subsequent executive order that clarifies the scope of the original home order. Additional guidance regarding business exemptions under the executive orders has also been released.
Colorado issues executive order limiting evictions and foreclosures
On March 20, the Colorado Governor issued an executive order limiting evictions and foreclosures because of Covid-19. The order requests that $3,000,000 from the Disaster Emergency Fund be made available to the Department of Local Affairs to provide short-term rental and mortgage assistance to low-income households facing financial hardship due to Covid-19. Among other things, the order also directs the Department of Regulatory Agencies (DORA), through the Divisions of Banking and Financial Services, to take steps to encourage banks, credit unions, and other financial institutions that are holding residential or commercial mortgages to halt foreclosures and related evictions in connection with the Covid-19 pandemic. DORA is further directed to encourage financial institutions to provide a 90-day deferment of payment for all consumer loans (e.g., residential and commercial mortgages, refinances, auto loans, small business loans). While some provisions of the order are effective for six months from the date of issuance, most provisions expire within 30 days from March 20, 2020, unless extended by executive order.
Colorado issues executive order and public health order requiring in-person workforce reduction of nonessential businesses
On March 22, the Colorado Governor issued an executive order requiring Colorado employers to reduce in-person work requirements by 50 percent for non-critical workplaces due to the presence of Covid-19. A public health order issued by the Colorado Department of Public Health and Environment subsequently that detailed the critical businesses that may continue to operate as normal. “Critical businesses” include financial institutions such as banks, credit institutions, insurance, payroll and accounting services, and services related to financial markets. The orders are effective through April 10, 2020, unless rescinded or modified.
Connecticut governor extends administrative deadlines during Covid-19 pandemic
On March 25, the governor of Connecticut issued an executive order suspending or extending numerous state administrative deadlines. The order authorizes the head of each administrative department, agency board or commission to suspend any statutory or regulatory time requirements or deadlines as they deem necessary to respond to the Covid-19 outbreak.
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.