InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
NMLS updates temporary policy for reporting deadlines
On March 30, the NMLS Policy Committee amended its temporary policy for submitting reports in NMLS. Instead of the original 60-day deadline extension, the committee encourages regulators to be lenient and not take administrative action if reports are filed within 30 days of the placement of the license item (based on the standard due date). This appears to provide greater flexibility to agencies utilizing NMLS to deviate from the initial extended deadline.
Click here to read the full update.
Colorado regulator issues appraisal guidance for banks and credit unions
On March 27, Colorado’s Division of Banks and Division of Financial Services distributed a document consolidating Covid-19 related guidance regarding inspections and appraisals from the Appraisal Standards Board, Fannie Mae, Freddie Mac, and the FDIC. Taken together, the agencies have issued guidance indicating that they will accept external-only or desktop inspections and appraisals in light of risks of conducting interior inspections during the Covid-19 outbreak.
Connecticut regulator permits paperless submission of security and business filings
On March 25, the Securities and Business Investments Division of the State of Connecticut Department of Banking issued interim guidance permitting paperless regulatory filings in light of the Covid-19 pandemic. The interim guidance permits and “highly encourage[s]” securities registration, exemption and covered security filers, as well as business opportunity registration filers, to submit regulatory filings and payments electronically. The Division also waived certain manual signature and notarization requirements.
Nebraska issues guidance regarding examinations during Covid-19 emergency
On March 25, the Nebraska Department of Banking and Finance (Department) announced it will temporarily halt all regular examinations unless the examination is critical to safety and soundness, consumer protection, or is necessary to address an urgent or immediate need. If the Department already has a majority of the requested information, the institution may elect to move forward with the Department’s examination. The Department will reassess this approach on April 24 or when the emergency has ended, whichever is sooner.
CSBS asks Fed and Treasury to create liquidity facility to support mortgage servicers
On March 25, CSBS President and CEO John W. Ryan sent a letter to Federal Reserve Board Governor Jerome Powell and Treasury Secretary Steven Mnuchin encouraging the agencies to create a liquidity facility under Section 13(3) of the Federal Reserve Act to support mortgage servicers “in anticipation of widespread borrower payment forbearance.” According to the letter, CSBS members—state regulatory agencies responsible for regulating bank and nonbank financial companies—have expressed concerns regarding liquidity and solvency in the mortgage servicing sector, and are particularly focused on monitoring the financial condition of nonbank mortgage servicers. Without a liquidity facility, CSBS warned that “mortgage servicers will experience a severe liquidity shortage that may threaten their continued viability, and by extension, the health of the nation’s housing finance market.”
Kentucky Department of Financial Institutions provide guidance to non-depository institutions
On March 24, The Kentucky Department of Financial Institutions (DFI) provided guidance to non-depository institutions to take steps to comply with CDC directives and Governor Andy Beshear’s guidance and executive orders. Entities are ordered to reduce face-to-face transactions; work with customers affected by the coronavirus to meet their financial needs; implement policies and procedures to work constructively with customers (including by restructuring existing loans, extending repayment terms, and waiving fees); manage COVID-19 related staffing issues; and ensure that business continuity plans include pandemic planning.
Rhode Island regulator encourages banks and credit unions to meet customer needs
On March 23, the Rhode Island Division of Banking issued a bulletin encouraging state-chartered banks and credit unions to take steps to meet the financial services needs of customers and communities impacted by Covid-19. This includes providing alternative service options in light of facility closures, waiving certain fees, increasing ATM cash withdrawal limits, easing restrictions on cashing checks, increasing credit card limits, and offering payment accommodations to borrowers. The Division emphasized that prudent efforts to modify the terms of an existing loan for affected customers will not be subject to regulatory criticism. Finally, the Division noted that it is willing to provide supervisory and regulatory relief to affected financial institutions.
Connecticut regulator permits paperless submission of investment company filings
On March 23, the Securities and Business Investments Division of the State of Connecticut Department of Banking issued interim guidance permitting investment company filers to make filings and submit payments electronically “for the foreseeable future.” The guidance also notes that the Division will be working remotely, which may cause delays in processing filings.
New Jersey issues Bulletin No. 20-05 to encourage institutions to meet the financial needs of consumers affected by Covid-19
On March 19, the Commissioner of the Department of Banking and Insurance (Department) signed Bulletin No. 20-05 to encourage institutions to meet the financial needs of consumers affected by Covid-19. The Department also reminded institutions to provide prompt notice to the Department regarding changes to operating hours of branch locations. The Department also requested all notices, inquiries, correspondence, and applications be submitted electronically by e-mail to the appropriate contacts.
New Jersey issues Bulletin No. 20-04 to address the disruption resulting from Covid-19
On March 19, the Commissioner of the Department of Banking and Insurance (Department) signed Bulletin No. 20-04 encouraging regulated entities and individuals to take the following actions, consistent with safe and sound banking practices: (i) relaxing due dates for loan payments (of all types, including mortgage, commercial, student, and other consumer loans); (ii) extending grace periods; (iii) modifying terms on existing loans; (iv) easing credit card limits; (v) extending new credit; (vi) waiving late fees and other fees; (vii) allowing customers to defer or skip payments; and (viii) delaying the submission of delinquency notices to credit bureaus.