InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
HUD OIG issues Covid-19 guidance to homeowners
On April 28, the Department of Housing and Urban Development’s Office of Inspector General issued a bulletin outlining Federal Housing Administration guidance to servicers and borrowers regarding implementing the forbearance requirements of the CARES Act. The office issued the bulletin based on a review of information that the top 30 FHA mortgage servicers provide on their websites, which the office found to be incomplete, outdated, inconsistent, or unclear.
New York guidance excludes debt collection from essential businesses or entities
On April 28, New York updated its guidance on Executive Order 202.6 relating to determining whether a business enterprise is subject to a workforce reduction under recent executive orders addressing Covid-19. The updated guidance provides that essential financial institutions include banks or lending institutions, insurance, payroll, accounting, and services related to financial markets, with the exception of debt collection services.
South Carolina regulator issues guidance to mortgage brokers
On April 28, the South Carolina Department of Consumer Affairs issued interim guidance to mortgage brokers on working remotely from unlicensed locations and extended the deadline for submitting the 2019 mortgage log. The department clarified that, until May 31, 2020, licensed mortgage loan originators are permitted to work from home, whether in South Carolina or another state, even if the home is not a licensed branch. The department also reported that it has deferred the filing deadline for the 2019 mortgage log required of mortgage broker companies until June 1, 2020.
SEC’s Investor Advisory Committee to hold remote meeting
The Investor Advisory Committee of the Securities and Exchange Commission will hold a remote public meeting on May 4 via a live webcast. The meeting will focus on public company disclosures in light of the Covid-19 outbreak and on public company shareholder engagement and meetings by virtual means.
Nebraska Department of Banking and Finance issues a notice updating its examination activity
On April 27, the Nebraska Department of Banking and Finance issued another notice providing updates to its March 25th notice (previously discussed here), which temporarily ceased all regular examinations until April 24. The notice extends the department’s posture to May 15, 2020. The department will continue certain critical examinations related to safety and soundness, consumer protections, or when there is an urgent or immediate need. The department will resume offsite examinations on June 1, predominately using remote access resources.
Texas regulator discusses emergency measures for credit access businesses
On April 27, the Texas Office of Consumer Credit Commissioner issued an advisory bulletin encouraging credit access businesses to consider certain emergency measures in light of the Covid-19 pandemic. The bulletin encouraged credit access businesses to work with consumers by increasing communications, working out loan modifications that avoid delinquencies and negative credit reporting, waiving certain charges and fees, and suspending vehicle repossession and charge offs. The office also extended the deadline for required first quarter reporting from April 30 until May 31, 2020, and permitted credit access business activity to occur from otherwise unlicensed locations, so long as certain requirements are met.
CFPB eases filing deadlines for certain ILSA and Regulation J reports
On April 27, the CFPB released guidance in order to provide “flexibility and reduce administrative burden” for land developers that are subject to the Interstate Land Sales Full Disclosure Act (ILSA). The Bureau explains that in light of the impacts of Covid-19, it will not take supervisory or enforcement action against land developers for delays in filing financial statements and annual reports of activity, as long as the developers make good faith efforts to submit filings “within a reasonable time.” The guidance notes that all other ILSA and Regulation J requirements must be timely met.
CFPB asks FCC to allow financial institutions to make certain Covid-19-related calls
On April 27, the CFPB sent a letter to the FCC in support of a petition filed at the end of March by several financial trade associations, which seeks an expedited ruling to allow financial institutions to make certain automated calls concerning Covid-19 relief options without violating the TCPA. The CFPB specifically encouraged the FCC to allow a limited number of automated Covid-19-related calls from financial institutions that would alert customers of offers of forbearance, payment deferrals, fee waivers, extensions or relaxations of repayment terms, loan modifications, and other resources related to loans secured by homes or vehicles. “Allowing financial institutions to make automated calls is one more way to maximize the outreach to ensure consumers receive important and timely information,” CFPB Director Kathy Kraninger noted, cautioning, however, that financial institutions must still comply with other legal requirements with respect to their communications with customers, including the Bureau’s mortgage servicing rules and Dodd-Frank’s prohibition on unfair, deceptive, or abusive acts or practices.
Washington insurance commissioner issues order regarding reporting requirements for collecting withheld depreciation payments
On April 27, the Washington insurance commissioner issued Executive Order 20-05 to insurers authorized to transact property and casualty insurance business and all entities regulated by the insurance commissioner. The order extends the deadline for policyholders of property and casualty insurance to report completed repairs in order to claim withheld depreciation payments until at least 60 days after June 26 or the expiration of the governor’s stay at home order, whichever is first.
OCC issues guidance to banks on tracking PPP loan data
On April 27, the OCC issued guidance for banks on receiving credit under the Community Reinvestment Act (CRA) for the loans the banks made to small businesses through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). The guidance suggests that lenders should track the PPP loan data, particularly for loans to businesses with $1 million or less in annual revenues that are located in underserved, distressed or low to moderate-income (LMI) areas. The OCC states that tracking this data along with lending decisions and loan volume data “is a prudent banking practice consistent with the principles of safety and soundness and fair access and fair treatment of borrowers.” The SBA’s PPP frequently asked questions can be found here.