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On March 15, the Michigan Department of Insurance and Financial Services issued a bulletin “strongly” encouraging financial institutions to protect payments made to customers under the American Rescue Plan from overdrafts and fees. The bulletin further instructs that if a financial institution’s system automatically applies such a payment to a preexisting overdraft, the institution should reverse the application of the direct payment as promptly as possible.
On March 15, the Michigan Department of Insurance and Financial Services, the Michigan Bankers Association, Community Bankers of Michigan, the Michigan Credit Union League and the National Business League urged minority-owned and other underserved businesses in Michigan to apply for forgivable loans through the Paycheck Protection Program (PPP) prior to the March 31, 2021 deadline. The announcement highlighted that community development financial institutions offer specialized support to underserved communities and can assist customers with limited or no credit history to obtain a PPP Loan.
On July 16, the FDIC issued FIL-70-2020 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Michigan affected by severe storms and flooding from May 16 through May 22. In the guidance, the FDIC encourages institutions to consider, among other things, (i) extending repayment terms; (ii) restructuring existing loans; or (iii) easing terms for new loans to borrowers affected by the severe weather, provided the measures are “done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.” Additionally, the FDIC notes that institutions may receive Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery. The FDIC states it will also consider relief from certain filing and publishing requirements.
Find continuing InfoBytes coverage on disaster relief guidance here.
Michigan regulator announces that annual regulatory assessment invoices have been emailed to insurers
The Michigan Department of Insurance and Financial Services (DIFS) announced that, in light of many offices working remotely during the Covid-19 outbreak, it has emailed invoices for annual regulatory assessments to licensed insurance companies. Previously, these invoices were typically mailed. As such, all licensed insurers should have received their electronic invoices on or before June 30. DIFS encouraged insurers to use the its e-payment option to pay the invoice.
On June 26, the Michigan governor issued Executive Order 2020-134, which extends the temporary suspension of evictions, previously covered here and here, until July 15. The order also creates the “Eviction Diversion Program” through which qualified renters who fail to make required payments during the Covid-19 pandemic can obtain rental assistance. The order “strongly” encourages Michigan landlords to take advantage of Covid-19 housing debt remedies, instead of pursuing eviction or foreclosure after July 15.
On June 24, the Michigan governor announced Executive Order 2020-131, which extends a previous order that temporarily allowed e-signatures on official documents and remote notarizations (previously discussed here). Any notarial act may be performed by a notary that holds a valid notarial commission in Michigan using two-way real-time audiovisual technology if certain conditions are met. The order sets forth additional requirements for remote notarizations and continues through July 31, 2020 at 11:59 p.m.
On June 11, the Michigan governor issued Executive Order 2020-118, which extends the state’s eviction moratorium, previously covered here, through June 30. During this period, a person may not be removed or excluded from leased residential premises or residential premises held under a forfeited executory contract, subject to certain exceptions. The executive order also stays any statutory limits on Michigan courts’ ability to adjourn any proceedings, toll any redemption periods or limitations periods, or extend any deadlines until 30 days after the restrictions on eviction expire.
On May 28, the Michigan governor issued an executive order extending the deadline by which Michigan residents must pay back taxes to avoid foreclosures on their property. The governor extended the deadline until June 29, 2020. The governor had previously extended the deadline from March 31 to May 29.
On May 14, the Michigan governor issued an executive order temporarily prohibiting the entry to premises to remove or exclude a tenant or mobile home owner from their home, except for certain limited reasons. While the executive order does not prohibit a landlord or vendor from receiving payment or making a demand for rent or executory contract payment, such a demand may not include a threat of possession or forfeiture based on nonpayment. Officers also may not serve process requiring forfeiture of leased residential premises or residential premises held under a forfeited executory contract. The prohibitions are effective immediately and will continue until June 11, 2020, at 11:59 p.m. Further, until 30 days after any restrictions on eviction in the executive order expire, any statutory limits on the Michigan courts to adjourn proceedings, toll redemption periods or limitations periods, or extend any deadlines, are suspended.
Michigan regulator encourages financial institutions to avoid offsetting CARES Act stimulus payments
On May 14, the Michigan Department of Insurance and Financial Services issued a bulletin “strongly” urging Michigan financial institutions not to access CARES Act stimulus payments to satisfy overdrafts or to exercise any right of offset against the funds without the agreement of the customer or member. The regulator also “strongly” urged financial institutions not to use CARES Act stimulus payments for ATM, late payment, overdraft, or other fees.
- Jonice Gray Tucker to discuss “How the new administration sets the tone for 2021” at the American Conference Institute Legal, Regulatory and Compliance Forum on Fintech & Emerging Payment Systems
- Sherry-Maria Safchuk to discuss UDAAP in consumer finance at an American Bar Association webinar
- Jeffrey P. Naimon to discuss "What to expect: The new administration and regulatory changes" at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Jonice Gray Tucker to discuss “The future of fair lending” at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Steven R. vonBerg to discuss "LO comp challenges" at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Michelle L. Rogers to discuss "Major litigation" at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Michelle L. Rogers to discuss “The False Claims Act today” at the Federal Bar Association Qui Tam Section Roundtable