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New Hampshire Banking Department issues FAQs on mortgage foreclosure
On March 20, the New Hampshire Banking Department issued FAQs discussing mortgage foreclosures during the Covid-19 pandemic. Among other things, the FAQs clarified that New Hampshire Emergency Order #4 temporarily prohibits any judicial or non-judicial foreclosure action in New Hampshire during New Hampshire’s Covid-19 State of Emergency, regardless of where the lender is located.
Colorado Dept. of Regulatory Agencies relaxes MLO work location rules
On March 16, the Colorado Department of Regulatory Agencies sent an email reiterating that Colorado mortgage loan originatos (MLO) may perform licensed activities at a location other than at their registered work location. The Division notes that Colorado does not have any requirements regarding specific work locations at either the company or individual MLO level.
Maryland Secretary of State extends notary public terms
On March 20, the Maryland Office of the Secretary of State issued a notice extending the four-year statutory term for all notaries public with an active commission. The notice will remain in effect until 30 days after the state of emergency has been terminated.
Arkansas Securities Dept. relaxes certain time constraints
The Arkansas Securities Department (ASD) issued a statement providing that certain time constraints in statutes and rules that regulate the securities, non-depository mortgage lending, and money services industries may prevent or hinder the Department’s ability to render maximum assistance to the citizens of Arkansas while they are adhering to guidelines to prohibit the spread of disease. The statement provides that those statutes and rules administered by the Commissioner that have specific time constraints will be relaxed through April 16, 2020 when it is shown the need is related to Covid-19.
Colorado securities regulator provides temporary relief to securities businesses
On March 20, the Acting Securities Commissioner of Colorado provided temporary regulatory relief to broker-dealers, state-registered investment advisers, federal covered investment advisers, and their registered agents. The relief exempted these professionals from certain registration and filing requirements if, among other things, they are displaced and working from a location outside their jurisdiction of registration or their clients have been displaced from their ordinary state and are now residing in Colorado, and they were properly registered with all required regulators on March 1, 2020.
California State Assembly Banking and Finance Committee issues memorandum on Covid-19 banking and finance issues
On March 20, the California State Assembly Banking and Finance Committee issued a memorandum noting that state authority over large national banks “is significantly constrained by federal law.” The memorandum provides that, under the National Bank Act and related case law, courts have widely upheld federal preemption over state laws that “interfere with the business of banking.” As such, courts “would likely stop any attempts by the state to force banks to limit rates or fees, demand forbearance or loan modifications, or require banks to make certain loans.” While state officials may urge national banks to give their borrowers relief, “these requests do not carry the force of law.” The memorandum also discusses mortgage rates and home sales, noting that in the event that mortgage rates increase and negatively affect the real estate market, “state legislators have limited tools to address such problems.”
Alabama allows MLOs to work from home
On March 12, the Alabama State Banking Department issued a statement reminding all licensees to update business continuity plans. In addition, the statement also allows licensees to relocate offices or to permit Mortgage Loan Originators to work from home to help prevent the spread of Covid-19. The Department encourages licensees to maintain compliance with all applicable laws and regulations, and to notify the Department of any relocation, closure or remote work.
On March 16, the Alabama Governor issued a statement expressing confidence in the measures that financial institutions have put in place. The statement notes that Alabama banks are required to have business continuity plans in place to address emergency situations.
Nevada orders all non-essential businesses to close; certain court activity suspended
On March 18, the Nevada Department of Business and Industry, Financial Institutions Division, ordered all non-essential businesses to close for 30 days as a proactive measure to fight the spread of Covid-19. Effective March 17, the Las Vegas Justice Court suspended issuing Defaults on all civil actions, suspended issuing orders for the examination of a judgment debtor, and suspended the issuance of any Writ of Execution. Any property garnished or attached after March 17, 2020, must be released back to the judgment debtor. The statement also states that a collection agency is deemed a non-essential business at this time. Accordingly, the Nevada Financial Institutions Division recommends to all collection agencies holding a license or registration under Nevada Revised Statutes Chapter 649 to close for 30 days, unless otherwise modified or withdrawn by the Nevada governor.
Arizona attorney general requests financial assistance for Arizona consumers
On March 19, Arizona’s attorney general issued a request for financial and lending institutions to provide temporary relief to their Arizona customers. The governor’s requests for institutions included taking the following actions for at least 90 days: (ii) forbearing or deferring payments on mortgages, automobile loans, and consumer loans; (ii) postponing foreclosures and evictions; (iii) ceasing automobile repossessions; (iv) waiving late fees and default interest for late payments; and (v) halting negative credit reporting.
Oregon releases guidance for credit unions during Covid-19
Oregon’s Division of Financial Regulation communicated with credit union CEOs regarding operational adjustments due to Covid-19. Among other things, the state requests notice if credit unions temporarily close branches, decide to offer special programs, or make public statements about their response to Covid-19. The letter also notes that examinations will continue to be conducted offsite.