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Iowa Division of Credit Unions issues update on annual meeting requirements
On March 16, the Iowa Division of Credit Unions issued an update enabling greater flexibility for holding annual meetings in 2020. The update stipulates that as long as the credit union in question held an annual meeting in 2019, it would have the full 2020 calendar to hold its next meeting. The update also mentioned the potential for waiving the annual meeting requirement altogether, but explained no such waiver was yet necessary.
Kansas Office of the State Bank Commissioner temporarily closed
On March 16, the Kansas Office of the State Bank Commissioner (OSBC) announced it would be closed until March 23 with staff working remotely. In addition, all OSBC on-site exams have been suspended at least until the end of March. The OSBC suggested visiting their website (www.osbckansas.org) for additional information regarding temporary bank closures and relocations.
Mississippi regulator issues “working from home” guidance for loan originators
On March 16, the Mississippi Department of Banking and Consumer Finance (DBCF) issued guidance granting authority for licensed mortgage origination companies to permit MLOs to work from home, even if the home is not a licensed branch. The DBCF stated that as long as applicable data security requirements are met, the DBCF will not take punitive action against a licensed MLO for conducting activities from home.
Montana Division of Banking and Financial Institutions encourages financial institutions to work with customers during pandemic
On March 16, Montana’s Division of Banking and Financial Institutions (Division) announced regulatory guidance encouraging financial institutions to work with customers and communities affected by the Covid-19 pandemic. Specifically, financial institutions are encouraged to engage in various efforts, including: (i) waiving fees such as ATM, overdraft, and late fees; (ii) increasing ATM daily cash withdrawal limits; (iii) easing restrictions on cashing checks; (iv) increasing credit card limits for creditworthy borrowers; and (v) offering payment accommodations, including forbearance. The Division also addressed financial condition review, supervisory responses, and regulatory relief, as well as reporting requirements, and making alternative service options available to customers.
Nebraska issues guidance to credit unions regarding annual meetings
On March 16, the Nebraska Department of Banking and Finance (Department) issued guidance authorizing Nebraska state-chartered credit unions to postpone their annual meetings of members if their meetings are to be held in March, April, May, or June 2020. Board of directors of credit unions are instructed to reschedule the postponed annual meeting so that it is held in July or August 2020 and provide members with 30 days prior written or electronic notice of the rescheduled meeting. Records related to the rescheduling must be kept for the Department’s review.
Minnesota Commerce Department instructs credit unions on annual meeting scheduling
On March 16, the Minnesota Commerce Department issued guidance for credit unions considering delaying or rescheduling their annual meetings because of Covid-19. The Department instructs credit unions to consult their bylaws for requirements on meeting timing, noting that Bylaws adopted prior to 2018 will require that annual meetings be scheduled prior to May 31. The guidance continues to instruct credit unions to provide as much notice as possible to members regarding date changes as possible and to notify the Department if a decision to reschedule must be made in the best interests of members and employees that does not comply with bylaws.
Illinois Division of Financial Institutions and Division of Banks reschedule certain hearings
On March 16, the Illinois Department of Financial and Professional Regulation, Divisions of Financial Institutions and Banking, issued a general orders rescheduling all Status and Preliminary Hearings scheduled for Wednesday, March 25, 2020, to Wednesday, May 27, 2020 at 9:30 AM and all All Status and Preliminary Hearings scheduled for Wednesday, April 22, 2020, to Wednesday, May 27, 2020 at 9:30 AM.
Louisiana issues guidance on branch closures due to Covid-19
On March 16, Louisiana’s Commissioner of Financial Institutions issued an emergency declaration granting financial institutions temporary authority to close branches within the state or to limit hours, reduce functions, or close certain days of the week. The declaration expressly waives the standard requirements for branch closures and instead instructs institutions to post a notice for public view at the physical location and provide email notice to the Office of Financial Institutions as soon as practicable and no more than five days after closure.
Vermont Department of Financial Regulation issues guidance to Vermont chartered banks and credit unions
On March 16, the Vermont Department of Financial Regulation issued guidance to Vermont chartered banks and credit unions regarding working with affected customers. Financial institutions are encouraged to, among other things, waive certain fees (e.g., ATM, overdraft, late payment fees), ease restrictions on cashing out-of-state and non-member checks, increase credit card limits for credit worthy borrowers, and offer payment accommodations. Prudent efforts to modify the terms on existing loans for affected customers will not be subject to examiner criticism and, generally, the department supports and will not criticize efforts to accommodate customers in a safe and sound manner. The guidance also addresses: (i) financial condition review, supervisory response, and regulatory relief; (ii) regulatory reporting requirements; and (iii) alternative service options.
Utah Department of Financial Institutions issues guidance to credit unions
On March 16, the Utah Department of Financial Institutions issued a statement encouraging credit unions to take steps to meet the financial services needs of members and communities affected by Covid-19. Credit unions are encouraged to, among other things, waive certain fees (e.g., ATM, overdraft, late payment fees), increase ATM daily cash withdrawal limits, ease restrictions on cashing out-of-state and non-member checks, increase credit card limits for credit worthy borrowers, and offer payment accommodations. Prudent efforts to modify the terms on existing loans for affected members will not be subject to examiner criticism and, generally, the department supports and will not criticize efforts to accommodate members in a safe and sound manner. The guidance also addresses: (i) financial condition review, supervisory response, and regulatory relief; (ii) regulatory reporting requirements; and (iii) alternative service options.