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Louisiana Office of Financial Institutions issues emergency advisory
On March 18, the Louisiana Office of Financial Institutions (LOFI) issued an emergency advisory for lenders/brokers licensed under certain Louisiana laws. The declaration permits non-depository entities operating in Louisiana to temporarily close licensed locations located in Louisiana or to temporarily close and/or relocate some or all of the operations, services, and products of a closed location to another location or locations within the state. The declaration waives the required 30-day written notice requirement for changes in location or the relocation of some or all of the operations, services, and products.
Kansas governor suspends foreclosures
On March 17, the Kansas governor announced Executive Order #20-06, which directs all financial institutions operating in Kansas to temporarily suspend the initiation of any mortgage foreclosure efforts or judicial proceedings and any commercial or residential eviction efforts or judicial proceedings until the earlier of May 1, 2020, or the expiration of the State of Disaster Emergency proclamation.
Massachusetts temporarily waives requirements for certain residential property inspections prior to sale
On March 20, the Massachusetts governor ordered that the inspections for smoke alarms and carbon monoxide detectors required by state law in connection with residential property sales may be deferred, provided that (1) the buyer agrees to take responsibility for equipping the property with the requisite alarms and detectors; and (2) the inspection is conducted within 90 days after the state of emergency for the Covid-19 outbreak is lifted.
Iowa Division of Banking issues guidance on bank closings and remote work
On March 18, the Iowa Division of Banking issued regulatory guidance for working from a residence or other company designated location. The guidance allows licensees and registrants, including licensed or registered mortgage loan originators, and their employees, to work remotely from their residence or another location designated by the employer during the COVID-19 pandemic, even if the residence or designated location is not a licensed or registered location. The guidance also provides best practices for remote workers to maintain security.
On March 12, the Iowa Division of Banking (IDOB) issued a statement to presidents and/or CEOs of all state-chartered banks regarding the temporary closure of bank branch offices. The guidance notes that while state banks are not required to get permission from the IDOB to temporarily close a branch office, the IDOB requests that the banks provide notification so that the IDOB can track closures. The guidance also provides that Iowa law permits the IDOB to authorize banks to operate in alternative locations in the event of an emergency. If a bank needs to operate out of a different location as a result of the Covid-19 situation, the bank must contact the bank’s analyst to obtain proper authorization.
HUD issues FAQs re: Fair Housing Initiatives Program
HUD’s Office of Fair Housing and Equal Opportunity issued FAQs to address questions and concerns regarding the Fair Housing Initiatives Program (FHIP) operations during the Covid-19 epidemic. The FAQs address, among other things, the impact of Covid-19 on existing FHIP awards, as well as possible extensions due to the disruption of planned activities.
Georgia Dept. of Banking and Finance issues closing guidance
The Georgia Department of Banking and Finance issued a statement to Georgia state-chartered banks and credit unions regarding emergency closing notification procedures. The statement provides that Georgia state-chartered financial institutions have the discretion to close business operations in the event of a natural disaster or other emergency, including situations where an emergency is imminent. The Deputy Commissioner for Supervision must be notified in the event of a main office and/or branch closure, or an alteration of the normal delivery of banking services.
Florida Office of Financial Regulation encourages flexibility
On March 18, the Florida Office of Financial Regulation issued a statement to financial institutions providing that it is open for business and ready to support state-chartered financial institutions. It also encourages financial institutions to work with affected customers and communities, and states that reasonable efforts to make new loans and modify the terms of existing loans of affected customers will not be subject to examiner criticism.
Florida Office of Financial Regulation issues closure guidance
On March 12, the Florida Office of Financial Regulation (OFR) issued guidance to executives of financial institutions. The guidance directs executive officers of financial institutions to determine whether an emergency exists requiring closure or modification of the operation of a financial institution for more than 48 hours. The guidance provides that the OFR will expeditiously process any requests for approval to modify or close any departments, sections, functions, offices, or facilities.
Oregon Division on Financial Regulation issues guidance for lenders and loan servicers
On March 20, the Oregon Division of Financial Regulation issued a bulletin for state-regulated lenders and loan servicers to work with borrowers impacted by Covid-19. The division encouraged lenders and servicers to offer distressed borrowers forbearance plans, waive late and online payment fees, ease credit terms for new loans, and deferred payment options. Most provisions of the bulletin called for a 90-day grace period and placed a moratorium on evictions and foreclosures. The guidance applies to banking institutions, credit unions, mortgage bankers, mortgage brokers, loan originators, and servicers, consumer finance lenders, and payday and title lenders. The issuance follows a declared state of emergency by Governor Brown on March 8.
Florida Office of Financial Regulation issues emergency order to extend renewal deadlines
On March 20, the Commissioner of the Office of Financial Regulation issued an emergency order providing that existing renewal deadlines occurring in March or April for licenses, permits, registrations and certificates issued by OFR are suspended and tolled for 30 days unless extended.