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Financial Services Law Insights and Observations

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  • Hawaii regulator extends guidance permitting licensees to reduce office hours, temporarily close offices

    State Issues

    On July 2, the Hawaii Division of Financial Institutions extended earlier guidance, previously covered here, that temporarily permits licensees with locations in Hawaii to reduce hours or close offices during Hawaii’s Covid-19 emergency period. Notice of temporary closure or relocation from certain licensees, including escrow depositories and financial institutions, is required.  The guidance is extended to July 31, 2020.

    State Issues Covid-19 Hawaii Licensing Mortgage Licensing Escrow Financial Institutions

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  • New York Division of Licensing Services issues updates regarding exams

    State Issues

    The New York Department of State, Division of Licensing Services, has issued updates regarding licensing exams. The division will begin offering written exams at exam sites located in regions that are in Phase 3 of reopening beginning July 6 for candidates whose previously scheduled exams were cancelled. Exam candidates must schedule their exam date prior to appearing for an exam. Walk-in exams will resume on July 13.

    State Issues Covid-19 New York Licensing Examination

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  • PPP extended until August 8

    Federal Issues

    On July 4, President Trump signed S.4116, which extends authorization for the Small Business Administration’s Paycheck Protection Program (PPP) through August 8. Additionally, the measure separates the amount authorized for the SBA’s standard 7(a) small business lending program from the PPP’s authorized commitment of $659 billion.

    Federal Issues Covid-19 SBA Small Business Lending Federal Legislation

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  • NYDFS extends suspension of license expiration for individual insurance producers

    State Issues

    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.

    State Issues Covid-19 NYDFS New York Licensing Insurance Insurance Licensing

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  • Fannie and Freddie issue Covid-19-related selling updates

    Federal Issues

    On July 1, Fannie Mae and Freddie Mac updated its Covid-19 frequently asked questions regarding the underwriting and loan eligibility for sellers.  Fannie Mae’s FAQs (previously discussed here) were updated to address questions regarding documentation and calculations related to self-employed income and variable income, including where borrowers experienced gaps of employment due to Covid-19.  Freddie Mac’s origination, underwriting, and eligibility FAQs were updated to address questions regarding, among other things, pre-closing verifications, fluctuating employment earnings, self-employed income, determining income eligibility with additional analysis and documentation, documentation requirements, and Covid-19 business assistance, including proceeds from Paycheck Protection Program loans.

    Federal Issues Covid-19 Fannie Mae Freddie Mac Underwriting Loan Origination SBA Mortgages

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  • North Dakota governor issues order on cooperatives’ annual meetings

    State Issues

    On July 1, the North Dakota governor issued Executive Order 2020-37, which suspends the provision in North Dakota law requiring cooperatives to hold an annual meeting within six months after the close of the fiscal year. Cooperative associations are permitted to schedule the 2020 annual meeting at a date, time and place, and in a manner that preserves and protects the health and safety of participating members.

    State Issues Covid-19 North Dakota

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  • Agencies outline 2021 resolution plan guidance for largest banking organizations

    Agency Rule-Making & Guidance

    On July 1, the Federal Reserve Board and FDIC released a letter to address 2021 resolution plan submission requirements for the eight largest and most complex domestic banking organizations. The letter identifies targeted information required to be included in the 2021 resolution plans (due July 1, 2021), including certain core elements such as capital, liquidity, and recapitalization strategies, in addition to information on how each banking organization has integrated changes and lessons learned as a result of the Covid-19 pandemic. The agencies intend to use the banking organization’s response to the stress caused by the pandemic to inform their assessment of the banking organization’s resolution-related capabilities and infrastructure. According to the announcement, these will be the “first ‘targeted’ resolution plan[s]” following the agencies’ adoption of a final rule last year, which, among other things, amended the resolution planning requirements for large domestic and foreign firms with more than $100 billion in total consolidated assets (covered by InfoBytes here).

    Agency Rule-Making & Guidance Living Wills Bank Compliance Covid-19

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  • Oregon enacts bill providing notarization relief

    State Issues

    On June 30, the Oregon governor signed HB 4212, which provides relief relating to wage garnishment and notarization, among other things. The bill exempts certain recovery rebate payments under the CARES Act from garnishment requirements applicable to financial institutions. The bill also permits electronic notarization, provided certain requirements are met. The bill took effect on June 30.

    State Issues Covid-19 Fintech ESIGN Notary Debt Collection CARES Act Financial Institutions

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  • Oregon enacts bill providing payment deferrals and foreclosure relief

    State Issues

    On June 30, the Oregon governor signed HB 4204, which requires mortgage payment deferrals and limits foreclosures during the Covid-19 emergency period, which runs from March 8 until September 30. Among other things, during that period, a lender may not treat as a default a borrower’s failure to make a periodic installment payment or to pay any other amount that is due to the lender if, at any time during the emergency period, the borrower notifies the lender of his or her inability to make the periodic installment payment. Unless the lender and borrower do not otherwise agree to otherwise modify, defer, or mitigate a loan, the lender must refrain from collecting during the emergency period and must permit the borrower to pay the amounts deferred at the end of the mortgage term. The bill also imposes certain restrictions on a lender’s ability to assess late fees and to pursue a foreclosure. The bill became effective on June 30.

    State Issues Covid-19 Oregon Mortgages Foreclosure Mortgage Lenders

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  • Delaware governor issues order modifying relief relating to evictions, foreclosures, and insurance

    State Issues

    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. 

    State Issues Covid-19 Delaware Mortgages Evictions Foreclosure Insurance Mortgage Insurance

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