InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
Texas regulator relaxes certain appraisal requirements for credit unions
On April 22, the Texas Credit Union Department announced the temporary waiver of certain appraisal requirements. The waivers allow credit unions to defer certain appraisals and evaluations for up to 120 days after closing and raise the threshold level when an appraisal is not required for residential real-estate transactions from $250,000 to $400,000.
Texas agencies issue emergency guidance for home equity lenders
On April 22, the Texas Department of Banking, Department of Savings and Mortgage Lending, Office of Consumer Credit and Credit Union Department issued revised home equity lending guidance related to making new loans or adjusting existing loans to facilitate recovery efforts. The agencies encouraged lenders to work with borrowers to assist recovery while providing guidance on how lenders can ensure they maintain a valid home equity lien.
Texas Office of Consumer Credit issues revised emergency bulletin for lenders
On April 16, the Texas Office of Consumer Credit issued a revised bulletin outlining emergency guidance for regulated lenders navigating the Covid-19 crisis. The guidelines: 1) extended due date for filing annual reports from May 1 to June 1; 2) encouraged lenders to work with consumers, including by working out modifications to assist with payments, waiving fees and charges, suspending charged-off accounts, and suspending repossessions of collateral or foreclosure of real property, among other things; 3) reminded lenders of legal requirements for using electronic signatures; and 4) permitted lenders to conduct regulated lending activity from unlicensed locations, subject to certain conditions.
Texas regulator, industry groups warn of increased cyber risk
On April 8, the Texas Department of Banking, the Independent Bankers Association of Texas and the Texas Bankers Association issued a joint notice warning that cybercriminals and nation state actors use times of crisis to exploit financial institutions. The notice urged institutions to warn employees and customers of social engineering, remind them of when online/virtual meeting platform links are expected and legitimate, and inform them of scams that are preying on Covid-19 fears. The notice also suggested institutions redistribute IT policies to employees and remind them about security expectations, and maintain secure connections for remote workers.
Texas Joint Financial Regulators issue HELOC guidance
The State of Texas Joint Financial Regulatory Agencies issued guidance pertaining to HELOCs as part of the state’s broader Covid-19 emergency measures pursuant to the governor’s declaration of a state of disaster for Texas on March 13. The agencies’ statement anticipates that lenders may adjust or extend terms on HELOCs and offer new loans during the crisis period, but also clarified that all such modifications and newly-issued loans must comply with Article XVI, Section 50 of the Texas Constitution. The guidance confirmed that modifications that lower the interest rate or amount of installment payments, but that do not satisfy or replace the original note, advance new funds, or increase obligations created by the original note, would not be a new extension of credit under Section 50(a)(6) of the constitution. The State of Texas Joint Financial Regulatory Agencies is comprised of the Texas Department of Banking, Texas Department of Savings and Mortgage Lending, Texas Office of Consumer Credit Commissioner, and Texas Credit Union Department.
Texas regulator urges credit unions to meet member needs
On April 1, the Texas Credit Union Department issued an informational memorandum encouraging state-chartered credit unions to consider taking steps to assist members adversely impacted by Covid-19. Among other considerations, the department urged credit unions to waive fees, increase cash withdrawal limits, waive early withdrawal penalties on time deposits, and allow borrowers to defer or skip some payments, among other things.
Texas Department of Banking issues extension for public and family trust company reporting
On April 1, the Texas Department of Banking issued a notice to trust companies announcing a 31-day extension for (1) public trust companies to report on Condition and Income and (2) exempt family trusts to report Annual Report of Condition and Income and Certification of Exempt Status. The announcement also authorized the use of electronic signatures on both filings mentioned.
Texas Department of Banking issues business continuity planning recommendations
On March 30, the Texas Department of Banking, in conjunction with the Independent Bankers Association of Texas and the Texas Bankers Association, issued a set of recommendations for banks to consider as they develop business continuity plans during the Covid-19 crisis. The guidance specifically notes that the recommendations do not constitute required action.
Texas Department of Banking issues business continuity considerations
On March 30, the Texas Department of Banking issued considerations for business continuity planning. In it, the Department asked banks and financial institutions to consider enterprise-wide interdependencies, as well as critical business functions like core processing, physical and digital cash deposits and withdrawals, and payment transactions. The issuance also included employee- and security-focused considerations such as secure remote access to systems, testing of remote capabilities, cross-training employees, and alternative staffing for physical branch operations. The considerations were drafted in coordination with the Independent Bankers Association of Texas and the Texas Bankers Association.
Texas Office of Consumer Creditor Commissioner issues annual report deadline information
On March 27, the Texas Office of Consumer Creditor Commissioner updated a previous property tax lender advisory bulletin to include annual report deadline information. Recognizing that property tax lenders may need additional time to file annual reports, in light of disruptions caused by Covid-19, the March 31 deadline has been extended to April 30.