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On October 1, 2020, the U.S. Department of Housing and Urban Development issued Mortgagee Letter 20-33, which extends interim procedures regarding site access issues related to Section 232 mortgage insurance applications during the Covid-19 pandemic (previously covered here and here). The guidance provides temporary modifications pertaining to third-party site inspections for Section 232 FHA-insured healthcare facilities effective through December 31, 2020. The letter also provides guidance on other aspects relating to Section 232 properties, including regarding lender underwriter site visits, appraisals, and inspections on new construction, among other things.
On August 6, the New York Department of Financial Services (DFS) issued a third supplement to Insurance Circular Letter No. 9, previously covered here and here. The letter, which suspended the expiration of licenses for individual insurance producers, has been extended for an additional 30 days through September 6, 2020. All licenses that would have expired between March 25, 2020, and September 6, 2020, but for Insurance Circular Letter No. 9 (2020) and the supplements thereto will automatically expire on September 7, 2020, unless the producer completes all necessary continuing education credits, and submits a license renewal application, before September 7, 2020. The supplement notes that the extension is a “final accommodation.”
On August 3, the New Jersey issued Bulletin No. 20-28, which permits qualified individual applicants seeking a temporary resident insurance producer license in New Jersey to submit the application for licensure electronically through the National Insurance Producer Registry (NIPR). Applicants also have the option of submitting paper applications in lieu of filing an application electronically. The guidance sets forth the qualifications for licensure and procedures to apply for a temporary insurance producer license. It also specifies the electronic application procedures through NIPR and the applicable timelines.
Fannie Mae updates Lender Letter 2020-02 to address impact of Covid-19 on disbursing insurance loss proceeds and HAMP incentives.
On July 15, Fannie Mae updated Lender Letter 2020-02 to include information on servicer requirements related to disbursing insurance loss proceeds for borrowers impacted by Covid-19 as well as Home Affordable Modification Program (HAMP) “Pay for Performance” incentives. For purposes of disbursing insurance loss proceeds, the servicer must consider a loan to be current or less than 31 days delinquent if the borrower has experienced a Covid-19 related hardship and certain criteria are met. Separately, the guidance clarifies the impact of Covid-19 on HAMP “Pay for Performance” incentives. Specifically, the mortgage loan does not lose good standing and the borrower will not lose any “pay for performance” incentives if the borrower (i) immediately reinstates the mortgage loan upon expiration of the Covid-19 related forbearance plan or (ii) transitions directly from a Covid-19 related forbearance plan to a repayment plan.
Maryland Commissioner of Financial Regulation issues advisories on customer identification for depository and non-depository institutions
On July 15, the Maryland Commissioner of Financial Regulation issued industry advisories to depository and non-depository institutions on identification requirements for customers. In light of an executive order extending the expiration date for certain licenses, permits, and registrations, depository and non-depository institutions may continue to accept driver’s licenses and/or identification cards that expired or are eligible for renewal after March 12, 2020.
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.
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 2, the New York Department of Financial Services issued a supplement that extends the relief provided by Insurance Circular Letter No. 9, previously covered here. The letter, which, among other things, suspended the expiration of licenses for individual insurance producers, has been extended for an additional 30 days through August 7, 2020. Licenses that would have expired but for the extension will automatically expire on August 7, 2020, unless the producer has submitted a license renewal application and completed all necessary continuing education credits before that date.
On June 30, the Delaware governor issued an order that modifies previous relief relating to evictions, foreclosures, and insurance. Specifically, the declaration lifts the stay on residential mortgage foreclosure actions commenced prior to the state of emergency. However, subject to certain exceptions, individuals may not be removed from the residential properties as a result of a mortgage foreclosure process while the order is in effect. Further, actions for summary possession may be filed for residential units in Delaware, but must be stayed pending a determination of whether the parties would benefit from participating in court supervised mediation or alternative dispute resolution. During the eviction process, subject to certain exceptions, individuals may not be removed from the residential properties. Finally, beginning July 1, 2020, every insurer is required to provide a 90-day payment plan for certain individual policyholders and business policyholders impacted by the Covid-19 state of emergency.
On June 28, the New York Department of Financial Services adopted an emergency measure that amends the insurance regulations to provide relief to policyholders, contract holders, and insureds who can demonstrate financial hardship relating to the Covid-19 pandemic. Among other things, the emergency measure: (i) provides that premiums remitted by a creditor will be assumed to provide coverage under a credit life or credit unemployment insurance policy for insured debtors whose payments are not more than three months overdue; (ii) provides certain protections for insureds who do not make timely premium payments to certain insurance entities; and (iii) prohibits a premium finance agency from cancelling an insurance policy due to an insured’s failure to make a timely installment payment for a period of at least 90 days, if the insured can demonstrate financial hardship due to Covid-19, and subject to the safety and soundness of the premium finance agency.
- H Joshua Kotin to discuss "Being fair, responsible, & profitable" at the QuestSoft Lending Compliance & Risk Management Virtual Conference
- Kathryn L. Ryan to discuss "NMLS mortgage call report – Where’s NMLS 2.0?" at the QuestSoft Lending Compliance & Risk Management Virtual Conference
- Thomas A. Sporkin to discuss "Managing internal investigations and advanced government defense" at the Securities Enforcement Forum
- Jeffrey P. Naimon to discuss "2021 - A new beginning/what's to come" at the QuestSoft Lending Compliance & Risk Management Virtual Conference
- H Joshua Kotin to discuss "Mortgage servicing in a recession: Early intervention, loss mitigation and more" at the NAFCU Virtual Regulatory Compliance Seminar
- Daniel R. Alonso to discuss "Independent monitoring in the United States" at the World Compliance Association Peru Chapter IV International Conference on Compliance and the Fight Against Corruption
- Jonice Gray Tucker to discuss "Cyber security, incident response, crisis management" at the Legal & Diversity Summit
- Jonice Gray Tucker to discuss "The future of fair lending" at the Mortgage Bankers Association Regulatory Compliance Conference
- Michelle L. Rogers to discuss "Major litigation" at the Mortgage Bankers Association Regulatory Compliance Conference
- Kathryn L. Ryan to discuss "Pandemic fallout – Navigating practical operational challenges" at the Mortgage Bankers Association Regulatory Compliance Conference
- Jonice Gray Tucker to discuss "Consumer financial services" at the Practising Law Institute Banking Law Institute
- Daniel P. Stipano to discuss "BSA/AML - Covid impact and regulatory/guidance roundup" at an NAFCU webinar