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D.C. law creates new requirements for debt collection, creditor reporting, and mortgage servicing during the Covid-19 pandemic
On June 8, the mayor of D.C. signed the Coronavirus Support Congressional Review Emergency Amendment Act, which amended and consolidated four existing emergency acts passed in response to the Covid-19 pandemic (including the Coronavirus Omnibus Emergency Amendment Act and Foreclosure Moratorium Emergency Amendment Act). Among other things, the new act includes requirements for debt collection, credit reporting, remote notarizations, mortgage lending, and eviction and foreclosure moratoriums. It requires mortgage lenders to offer 90 day payment deferrals, waive late fees, and cease negative credit reporting, subject to specific requirements. It also prohibits initiating or conducting foreclosure sales on residential mortgages for the duration of the Covid-19 public health emergency and for 60 days thereafter, subject to certain specified limitations, and prohibits residential and commercial evictions during the same time period.
District of Columbia Department of Insurance, Securities and Banking issues FAQs on mortgage deferment
The District of Columbia Department of Insurance, Securities and Banking issued responses to frequently asked questions (FAQs) regarding the residential and commercial mortgage deferment program under the District of Columbia’s Covid-19 Response Supplemental Emergency Amendment Act of 2020. The FAQs provide guidance on, among other things, which entities and financial institutions are considered mortgage lenders under the act and therefore subject to the requirements, mortgage lenders’ obligations under the act, how borrowers should apply for the mortgage deferment plan, and record-keeping requirements under the act.
District of Columbia amends emergency Covid-19 response legislation to add reporting obligations for mortgage deferments
On May 4, the District of Columbia amended the Covid-19 Response Supplemental Emergency Amendment Act (previously covered here) to, among other things, include mortgage lenders as covered entities and require lenders to provide the commissioner of the Department of Insurance, Securities and Banking with lists of all approved mortgage deferments in 15-day intervals.
District of Columbia Department of Insurance, Securities and Banking issues FAQs
The District of Columbia Department of Insurance, Securities and Banking issued responses to frequently asked questions regarding the effect of Covid-19 on the administration of securities laws and regulations of the District of Columbia. The FAQs respond to questions regarding filings, the processing of licensing or registration applications, and remote work for securities professionals, among others.
D.C. attorney general alerts residents about debt collection protection
On April 30, D.C. Attorney General Karl Racine issued an alert informing district residents about debt collection protection during the Covid-19 crisis. According to Racine, residents are protected from the majority of debt collection activities during the state of emergency in place for the district. The consumer protections are a result of a proposal passed by D.C. Council on April 10, and are valid throughout the state of emergency plus an additional 60 days afterwards.
District of Columbia Department of Insurance, Securities and Banking issues order providing relief to policyholders
On April 27, the District of Columbia Department of Insurance, Securities and Banking issued an order imposing certain requirements on insurance companies authorized to conduct business in the District of Columbia. Among other things, insurance companies and premium finance companies are prohibited from terminating insurance contracts due to non-payment. Insurance companies must make reasonable accommodations for policyholders during the Covid-19 emergency, such as through waiving installment, late payment, or reinstatement fees, extending billing due dates and premium grace periods, and providing an option to use electronic payment technology. The order also provides guidance concerning premium relief and the department’s review of form and rate filings.
District of Columbia Department of Insurance, Securities and Banking issues bulletin regarding submission of filings
On April 24, the District of Columbia Department of Insurance, Securities and Banking issued a Bulletin 0X-SB-00X 03/20 suspending the procedures established by Bulletin 03-SB-04-03/21 in light of the Covid-19 public health emergency. Required filings and fee payments that would have been submitted pursuant to the procedures outlined in Bulletin 03-SB-04-03/21 must now be submitted to the department via PDF to a specified email address. Further, instead of physical checks, the associated payments must be submitted in electronic form in accordance with the instructions in the bulletin.
District of Columbia Department of Insurance, Securities and Banking issues bulletin to certain insurance companies
On April 23, the District of Columbia Department of Insurance, Securities and Banking issued a bulletin to insurers, captives, and risk retention groups regarding modified regulatory filing requirements during the public health emergency. While companies are still required to make all required electronic filings with the NAIC based on modified filing deadlines, if applicable, the department will allow insurers an additional 30 to 60 days, depending on the filing, to complete filings upon a request to the department on or before the normal deadline. The bulletin sets forth the filings eligible for 30- or 60-day extensions. The bulletin also provides guidance regarding electronic filings and signatures. Further, while the department will not conduct any on-site examination work during the stay-at-home order, the department may still request certain electronic records to track trends arising from the Covid-19 pandemic.
District of Columbia prohibits certain debt collection activity
The District of Columbia has enacted the Covid-19 Response Supplemental Emergency Amendment Act of 2020. Under the Act, among other things, for the duration of the public health emergency and 60 days after its conclusion, debt collectors are prohibited from, among other things: (i) initiating, filing, or threatening a new collection lawsuit, garnishment, seizure, attachment, or repossession; or (ii) initiating any communication with debtors via written or electronic communication, such as text, email, or telephone, subject to certain exceptions.
District of Columbia permits mortgage brokers and originators to work from home, delays reporting deadlines
On March 27, the District of Columbia Department of Insurance, Securities and Banking issued guidance to mortgage lenders, mortgage brokers and mortgage loan originators permitting them to work from non-licensed branches or locations during the Covid-19 outbreak. The guidance requires the maintenance of appropriate data protection and cybersecurity measures when working remotely. The department also extended the deadline for filing annual reports from March 31 to June 1. Finally, the guidance notes that all evictions of tenants and foreclosed homeowners on or before May 1 are stayed, and required mediation hearings are extended from 90 days to 120 days following the date of mailing of the notice of default.