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California orders moratorium on foreclosures and evictions
On March 16, California Governor Gavin Newsom issued Executive Order N-28-20 requesting that financial institutions implement an immediate moratorium on foreclosures and related evictions arising from the nonpayment of rent or mortgage payments due to a substantial decrease in income or increase in medical expenses caused by the Covid-19 pandemic.
DOJ adopts changes to merger investigation process
On March 17, the DOJ announced it would adopt a series of temporary changes to its civil merger investigation processes, which will remain in place during the pendency of Covid-19. For example, for mergers currently pending or that may be proposed, the Antitrust Division is requesting from merging parties an additional 30 days to timing agreements to complete its review of transactions after the parties have complied with document requests. Additionally, all scheduled depositions will be temporarily postponed and will be rescheduled using secure videoconferencing capabilities.
Montana regulator issues guidance to state banks and credit unions on operating during outbreak
On March 19, the Montana Division of Banking and Financial Institutions issued a supervisory memorandum discussing operations of state-chartered banks and credit unions during the Covid-19 outbreak. The guidance instructs regulated institutions to communicate with the Division using email and electronic file transfer services instead of mail. The guidance also clarifies that the Division considers accepting deposits, providing access to cash and existing customer accounts, and drawing on existing loans to be “essential” services that should be continued during the outbreak, and contains frequently-asked questions about operations and regulatory notifications.
District of Columbia Superior Court stays all evictions
On March 15, the District of Columbia Superior Court issued a memorandum staying all evictions, including those involving foreclosed homeowners, until May 1, 2020.
Massachusetts introduces bill to halt evictions and foreclosures
On March 16, the Massachusetts legislature introduced a bill that would place a moratorium on evictions and foreclosures as long as the governor’s emergency declaration for the Covid-19 outbreak is active.
Minnesota bill to address negative credit reports and student loans
On February 19, the Minnesota House Health and Human Services Finance and Policy Committee introduced a bill that would require the Commissioner of Commerce to negotiate with credit reporting bureaus to waive negative credit reports, and to negotiate a federal waiver for federally guaranteed student loans for persons under isolation or quarantine.
On March 9, the Minnesota Senate Health and Human Services Finance and Policy Committee introduced a bill that would accomplish the same objectives.
AARMR urges waiving of certain fees and charges
On March 17, the American Association of Residential Mortgage Regulators (AARMR) issued a statement encouraging mortgage lenders and servicers to take steps to “mitigate the impact to consumers of actions taken in response to Covid-19.” For lenders, the AARMR suggests steps such as waiving rate lock extension fees if an application is delayed for reasons beyond an applicant’s control, or refraining from closing an application due to incompleteness if an applicant is having difficulty gathering required documents. For servicers, the AARMR suggested waiving certain late charges (if permitted), offering forbearance plans or other deferment options, and generally ensuring that all staff are aware of available options and are proactive in assisting borrowers with potential delinquent payments. The AARMR also encourages member agencies to consider the impact of Covid-19 in their dealings with brokers, lenders, servicers, and MLOs.
New Hampshire Governor temporarily prohibits foreclosures
On March 17, New Hampshire Governor Christopher Sununu issued Emergency Order #4, which temporarily prohibits judicial and non-judicial foreclosures while the state of emergency related to the Covid-19 outbreak is active.
North Carolina court office postpones foreclosures and other civil proceedings
On March 15, the North Carolina Administrative Office of the Courts and Chief Justice Beasley issued a memorandum implementing a 30-day postponement (until April 14) on foreclosures and other civil proceedings, subject to limited exceptions.
Indiana governor calls for moratorium on residential foreclosures and evictions
On March 19, Indiana Governor Eric Holcomb issued an executive order calling for a moratorium on evictions and foreclosures of residential real estate. While the action does not absolve individuals of their obligations to pay their rent or mortgage, it does halt foreclosure and eviction proceedings until the state of emergency is lifted. The order also suspends any other statutes or rules connected to foreclosure and eviction proceedings.