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On July 13, the Indiana Secretary of State, Securities Division, issued a compliance alert providing temporary relief from annual branch examination requirements. In light of the restrictions on travel caused by the pandemic, broker-dealers are not required to conduct an annual compliance examination in each branch office located in Indiana. However, a firm with the ability to conduct a remote branch examination during 2020 is encouraged to do so. Registrants are also reminded of their obligation to properly supervise agents and employees.
California Department of Business Oversight will monitor licensees’ compliance with face covering guidance
The California Department of Business Oversight announced that it will monitor licensees’ compliance with face covering guidance issued by the California governor and the California Department of Public Health. All customers must be required to wear appropriate face coverings under circumstances outlined in the guidance, and those who refuse to comply and do not meet the outlined exemptions should be refused entry to banks, credit unions, and other places of business.
Minnesota Commerce Department issues guidance related to temporary resident insurance producer licenses
On July 10, the Minnesota Commerce Department issued Regulatory Guidance 20-34, which provides information relating to the issuance of temporary resident insurance producer licenses. The Minnesota Department of Commerce will issue temporary producer licenses to applicants who meet the requirements for resident licensure under Minnesota law without requiring examination or the submission of fingerprints, subject to conditions set forth in the guidance. To apply for the license, the sponsoring insurer or agency must submit the application on behalf of the temporary producer licensee. The license will be valid for 180 days, it may not be renewed or reinstated if it lapses, and it may not be converted to a regular producer license.
On July 10, the Oklahoma governor issued a second amended Executive Order 2020-20 extending the state of emergency. Among other things, the order extends all occupational licenses issued by an agency, board, or commission of Oklahoma that expire during the state of emergency until 14 days following the withdrawal or termination of the order.
Michigan regulator announces that annual regulatory assessment invoices have been emailed to insurers
The Michigan Department of Insurance and Financial Services (DIFS) announced that, in light of many offices working remotely during the Covid-19 outbreak, it has emailed invoices for annual regulatory assessments to licensed insurance companies. Previously, these invoices were typically mailed. As such, all licensed insurers should have received their electronic invoices on or before June 30. DIFS encouraged insurers to use the its e-payment option to pay the invoice.
On July 6, the Small Business Administration (SBA), in conjunction with the Treasury Department, released the business information of certain Paycheck Protection Program (PPP) loan recipients. For any loan over $150,000, the SBA data release includes business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported, and a loan amount range. For loans under $150,000, the SBA withheld the business names and addresses in the release. The data release also includes overall statistics regarding dollars lent per state, loan amounts, top lenders, and distribution by industry. According to data, the PPP has approved over $4.8 million loans, with the average loan size of approximately $106,000. Currently, there are 5,460 participating lenders.
On July 8, the Federal Reserve announced revisions to its Capital Assessments and Stress Testing Reports, Form FR Y-14A/Q/M; OMB No. 7100-0341. The temporary revisions implement changes in response to the Covid-19 pandemic, including the incorporation of data related to certain aspects of the CARES Act, the Paycheck Protection Program, and Federal Reserve lending facilities. The changes apply to reports beginning with July 31, 2020, or September 30, 2020, as-of dates. Additionally, the Federal Reserve has temporarily revised the submission frequency of FR Y–14Q, Schedule H (Wholesale) from a quarterly basis to a monthly basis for Category I–III firms, effective July 31, 2020.
On July 8, the FHA announced additional home retention measures to assist homeowners with FHA-insured mortgages who are financially impacted by the Covid-19 pandemic. According to Mortgagee Letter 2020-20, effective immediately, mortgage servicers are able to offer a new suit of loss mitigation “waterfall” options to homeowners whose mortgages were current or less than 30 days past due as of March 1. ML 2020-20 updates existing options previously outlined in ML 2020-06 (covered by InfoBytes here) and introduces several new measures including (i) a standalone partial claim, not to exceed the 30 percent maximum statutory value; (ii) an owner-occupant loan modification (for homeowners who do not qualify for a standalone partial claim) that will modify the rate and term of the existing mortgage at the end of the Covid-19 forbearance period; (iii) a combination partial clam and loan modification (for homeowners who are ineligible for either of the first two options); and (iv) a FHA Home Affordable Modification Program combination loan modification and partial claim with reduced documentation, which may include principal deferment and is for homeowners who are ineligible for the other home retention solutions. ML 2020-20 also provides that borrowers who do not currently occupy their FHA-insurance single family property may obtain a modification to their mortgage rates and terms under a Covid-19 non-occupant loan modification.
On July 8, the Kansas governor issued Executive Order No. 20-55, which amends provisions in Kansas law related to drivers’ license and vehicle registration during the state of disaster emergency. Among other things, the executive order extends the deadline for new Kansas owners that have purchased a new or used motor vehicle on or after January 1, 2020, to make an application for vehicle transfer, certificate of title, and registration. The applicable deadline depends upon when the motor vehicle was purchased.
On July 7, the Kansas Office of the State Bank Commissioner again extended its remote work guidance for mortgage companies, mortgage loan originators, supervised loan licenses, credit service organizations, money transmitters, and credit notification registrations, previously covered here. With the update, working from home is permitted through September 15.
- Jonice Gray Tucker to discuss "Fair servicing in wake of Covid-19" at an American Bar Association webinar
- APPROVED Webcast: Maximizing vendor value
- Daniel P. Stipano to discuss "Cram for the exam: Best prep strategies for a regulatory examination" at an ACAMS webinar
- Melissa Klimkiewicz to discuss "Flood insurance basics" at the NAFCU Virtual Regulatory Compliance School
- Sasha Leonhardt to discuss "Privacy laws clarified" at the National Settlement Services Summit (NS3)
- Amanda R. Lawrence to discuss "New privacy legislation: Preparing for a major source of class action and enforcement activity going forward" at the American Conference Institute Consumer Finance Class Actions, Litigation & Government Enforcement Actions