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FHA issues temporary relief in light of Covid-19 challenges
On June 22, the Federal Housing Administration announced various policy changes to address the continuing impact of Covid-19. First, the FHA suspended the requirement that mortgagees select and review all early payment defaults on a monthly basis. Second, the FHA suspended the requirement that mortgagees conduct field reviews of 10 percent of FHA-insured mortgages on a monthly basis. Third, the FHA announced that it will consider the financial impact of Covid-19 as a mitigating factor when a mortgagee’s Compare Ratio is above a designated threshold. The FHA uses Compare Ratios to identify whether a termination or suspension of certain mortgagee authorities is needed under the Credit Watch Termination and Lender Insurance Program monitoring processes.
Maryland Department of Labor issues financial relief guide for Marylanders
On June 19, the Maryland Department of Labor’s Office of the Commissioner of Financial Regulation issued the Covid-19 Health Crisis: Financial Relief Guide for Marylanders. Among other things, the guide contains information and resources regarding relief programs for consumers relating to economic impact payments, mortgage payments and foreclosure, rental evictions, student loans, automobile and personal loans, collections and garnishment, credit reporting, and insurance coverage and payments.
New York Department of Financial Services announces remote online testing for insurance licensing exams
On June 11, the New York Department of Financial Services announced that remote online proctored testing will be available beginning on June 15, 2020, for all 28 New York insurance licensing exams. As a result, candidates will be able to take exams at a testing center or from their home or office.
HUD issues mortgagee letter extending interim procedures relating to FHA Section 232 approved mortgages
On May 28, the U.S. Department of Housing and Urban Development issued Mortgagee Letter 2020-15 to all FHA Section 232 Approved Mortgagees regarding the extension of interim procedures issued in Mortgagee Letter 20-10 to address site access issues during the Covid-19 pandemic. The guidance provides temporary modifications pertaining to third-party site inspections for Section 232 FHA-insured healthcare facilities with effective dates within 60 days of the issuance of the mortgagee letter. The letter also provides guidance on other aspects relating to Section 232 properties, including regarding Property Capital Needs Assessments, appraisals, Section 232 Phase 1 Environmental Site Assessments, asbestos surveys, and radon testing, among other things.
New Jersey Department of Banking and Insurance extends no-action position regarding temporary work from home
On May 28, the New Jersey Department of Banking and Insurance issued Bulletin No. 20-26 to certain licensees regarding temporarily working from home due to Covid-19. The bulletin extends the department’s no-action position regarding licensure for certain branch office locations due to individuals temporarily working from home first announced in Bulletin No 20-06 (covered here). The no-action position is only effective with a submission that includes specified materials and may be subject to pre-conditions and operating, reporting, and other requirements. Licensees who have already submitted materials to the department in response to Bulletin No. 20-06 are not required to resubmit those materials.
Minnesota Department of Commerce extends certain licensing application deadlines for insurance producers and real estate brokers
On May 27, the Minnesota Department of Commerce issued an order modifying certain regulatory deadlines as set forth in Regulatory Guidance 20-29, 20-30, 20-31, 20-32, and 20-33. Guidance 20-29 through 20-32 extends the deadlines for insurance producer and adjuster renewal applications, and Guidance 20-33 extends the deadline for certain real estate broker license applicants to complete their applications.
NYDFS suspends license expiration for individual insurance producers for an additional 45 days
On May 21, the New York State Department of Financial Services issued a supplement to Insurance Circular Letter No. 9, previously covered here, suspending the expiration of licenses for all individual insurance producers - brokers, agents, intermediaries, and other persons required to be licensed in order to sell, solicit, or negotiate insurance in New York – through July 8, 2020.
New Mexico issues public health order
On May 15, the New Mexico Department of Health issued an order directing that essential businesses must operate in accordance with the applicable Covid-Safe Practices section of the All Together New Mexico: Covid-Safe Practices for Individuals and Employers. Essential businesses include banks, credit unions, insurance providers, brokerage services, and investment management firms, among others.
New Jersey Department of Banking and Insurance issues bulletin regarding reductions in premiums
On May 12, the New Jersey Department of Banking and Insurance issued Bulletin No. 20-22 to certain insurance-related entities, including licensed, admitted, and surplus lines insurers transacting property and casualty insurance in New Jersey. In light of the reduced risk of loss for certain insurance as a result of Covid-19, the bulletin requires premium reductions for those lines of insurance. Where applicable, insurers are ordered to make an initial premium refund or other adjustment to adversely impacted New Jersey policy-holders, and for each month that the public health emergency is in effect. Instructions are provided for submitting the components of the refund program via the System for Electronic Rates and Forms Filing. Insurers that can demonstrate that their rates are not excessive, inadequate, or unfairly discriminatory, or that otherwise contend they should not be subject to the terms of the bulletin, may submit the basis for this position and supporting documentation by June 1, 2020.
New Jersey Department of Banking extends filing deadlines for certain annual reports
On May 12, the New Jersey Department of Banking Insurance issued a bulletin regarding the extension of deadlines for certain entities and individual regulated by the Division of Banking to file annual reports. Certain enumerated licensees, including check cashers, insurance premium finance companies, motor vehicle installment sellers, and money transmitters, are granted an extension until June 1 to file annual reports. However, licensees must file their subsequent annual report by April 1, 2021. Mortgage lenders and mortgage brokers who are required to file an annual report on or before May 1, are also granted an extension to June 1. The next annual report must be filed by May 1, 2021.