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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.
Texas Office of Consumer Credit Commissioner issues bulletins regarding Covid-19 to regulated lenders, credit access businesses, tax lenders, and motor vehicle sales finance licensees
On March 26, the Texas Office of Consumer Credit Commissioner (OCCC) issued four bulletins directed at regulated lenders, credit access businesses, property tax lenders, and motor vehicle sales finance licensees in light of Covid-19. The bulletins urge these entities to work with borrowers during the crisis, including through taking the following measures:
- Increasing communication with borrowers regarding Covid-19.
- Working out modifications with borrowers to help ensure successful repayment, including deferred or partial payments, which would avoid delinquencies and negative credit reporting.
- Waiving certain fees or charges (e.g., late charges, additional finance charges, deferment charges, nonsufficient fund fees) during the disaster declaration.
- Suspending charging off accounts.
- Suspending repossession of vehicles, repossessions of collateral, foreclosure of real property, as applicable
The bulletins also provide guidance on the use of electronic signatures, which the bulletins note are generally allowed under Texas and federal law. The bulletins also provide that the OCCC will not take enforcement actions against regulated lenders, credit access businesses, property tax lenders, or motor vehicle sales finance licensees that conduct business activities from unlicensed locations, if conducted in accordance with certain data security, safe record keeping, and protection of personal information requirements set forth in the bulletins.
Texas regulator issues MLO work from home guidance
On March 20, the Texas Department of Savings and Mortgage Lending issued a notice temporarily suspending any requirement that a physical office be open to the public during posted normal business hours. In addition, the notice provided that licensed MLOs may work from home or another remote location, whether located in Texas or another state, even if the home or remote location is not a licensed branch. However, MLOs are still subject to certain data security requirements and are prohibited from permitting consumers into the MLO’s home.
Texas regulator issues MLO work location guidance
On March 20, the Texas Department of Savings and Mortgage Lending issued a statement temporarily suspending any requirement that a physical office of a licensed mortgage entity be open to the public during posted normal business hours. Additionally, licensed MLOs may work from home or another remote location, as long as (i) strict security of information is maintained; (ii) all physical business records are kept at a licensed office; and (iii) consumers are not allowed to go to the MLO’s home.
Texas Banking Commissioner empowers banks to close
On March 16, the Texas Banking Commissioner issued a proclamation authorizing banks organized under Texas law to close all or part of their offices to protect public health, at their discretion, while ensuring that banks can meet the financial needs of their customers and those affected by Covid-19.
Texas Department of Savings and Mortgage Lending issues guidance on mortgage examinations
On March 12, the Texas Department of Savings and Mortgage Lending announced that the Department will begin minimizing on-site mortgage examinations and conducting them off-site to the extent possible.
Texas DMV issues waivers for titles
On March 16, the Texas Department of Motor Vehicles (DMV) issued a waiver of the time in which individuals must apply for title, and a waiver of the associated delinquent transfer penalty. The waiver is effective immediately and applies to any title application submitted between March 16 and 60 days after the DMV notifies the public that normal titling services have resumed.
Texas Department of Savings and Mortgage Lending issues business continuity, work from home guidance
On March 13, the Texas Department of Savings and Mortgage Lending issued a statement to state savings bank presidents and chief executive officers, reminding them to review their business continuity plans, particularly as they relate to pandemics.
On March 13 and 17, the Texas Office of Consumer Credit Commission issued advisory bulletins to regulated lenders, credit access businesses, property tax lenders, and motor vehicle sales finance licensees regarding responses they can take to Covid-19, including allowing licensees to conduct business activities from unlicensed locations provided certain requirements are met (e.g., the licensee prepares a written plan or document describing next steps and locations where credit access business activity will take place).
On March 16, the Texas Department of Banking issued Industry Notice 2020-03 providing guidance to regulated institutions regarding customer support, pandemic preparedness including tips on emergency closures, and future examinations.
Texas regulator authorizes credit union branch closures
On March 17, the Texas Credit Union Department issued an emergency declaration authorizing state-chartered credit unions to close their branches in order to protect public health. The department noted that credit unions should continue to ensure that financial needs of members are met during branch closures, and waived approval requirements for closures related to Covid-19.