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New York regulator urges student loan servicers to support troubled borrowers
On April 7, the New York State Department of Financial Services issued guidance to state-regulated student loan servicers urging them to “do their part” to alleviate hardships caused by Covid-19. The department stated that student loan servicers “should,” for a period of 90 days, waive late fees, provide forbearance, refrain from sending defaulted loans to debt collectors, and report any missed payments subject to forbearance as “current” to credit reporting agencies.
New York State Unified Court System will open remote access to pending non-essential cases
On April 7, the chief administrative judge of the New York State Unified Court System issued a memorandum to trial court justices and judges advising that the current prohibition on the filing of new non-essential matters will continue. However, the court system plans to take preliminary steps to open remote access for non-essential pending cases beginning on April 13, 2020. This will include holding court conferences if helpful for the advancement of a case and making decisions on fully submitted motions.
New York governor provides regulatory relief
On April 7, the governor of New York issued an executive order authorizing the superintendent of Financial Services to issue emergency regulations waiving late fees and prohibiting the reporting of negative data to credit bureaus. The order also authorized remote notarial acts.
New York Department of Financial Services shares guidance on insurance notice obligations
The New York Department of Financial Services published guidelines for insurance producers, such as agents and brokers, on providing electronic notices during the Covid-19 emergency. The guidance reduced the burden of standard notice obligations for producers that must comply with new 11 NYCRR § 229.5(b) and 3 NYCRR § 405.6(b)(4) requirements. Specifically, the issuance enabled notices to be communicated by email, regardless of consumer consent, and encouraged producers to share information regarding notice obligations on their websites and via social media.
New York Department of Financial Services calls on regulated entities to fund or partner Community Development Financial Institutions
On April 5, the New York Department of Financial Services Superintendent Linda Lacewell published a letter to state-regulated entities encouraging them to fund or partner with Community Development Financial Institutions. Lacewell stated that CDFIs play a major role in enabling the Paycheck Protection Loan Program established by the CARES Act for low and medium income communities, and without CDFI funding and grants, many New York small businesses will not be able to survive the economic fallout caused by Covid-19.
New York Department of Financial Services encourages participation in Small Business Administration’s paycheck protection loan program
On April 3, the New York Department of Financial Services Superintendent published a letter to state-regulated entities informing them about the Paycheck Protection Loan Program established by the CARES Act. The letter encouraged eligible institutions to participate in the program and urged those not currently eligible to obtain eligibility.
New York adopts emergency regulations for insurance customers
On March 30, the New York Department of Financial Services announced emergency regulations requiring New York State regulated issuers of life insurance and annuity contracts, property and casualty insurers and premium finance agencies to provide relief to consumers and businesses experiencing financial hardship due to the Covid-19 outbreak. Among other things, the emergency regulations: (i) extend grace periods for making life insurance payments for 90 days, and for making property and casualty insurance payments for 60 days; (ii) establishing a special enrollment period from April 1 to April 15 to obtain health insurance under the New York State’s Health Plan Marketplace; (iii) prohibit life insurers and property and casualty insurers from imposing late fees, reporting the policyholder to a credit bureau, or referring the policyholder to a debt collection agency with respect to such delayed payments; (iv) permit premiums due but not paid during the grace period to be repaid over 12 equal monthly installments; and (v) require premium finance companies to grant the same relief to consumers and businesses that have financed the payments of their premiums, subject to safety and soundness considerations.
New York issues executive order addressing certain Banking Law requirements
On March 29, New York Governor Cuomo issued an executive order granting the superintendent of Financial Services (superintendent) the authority to promulgate emergency regulations to apply the provisions of the executive order relevant to policy cancellations to premium finance agencies, subject to safety and soundness considerations. The executive order also provides that all instruments that are signed and delivered to the superintendent under the New York Banking Law, and that are required to be verified or acknowledged thereunder, may be verified or acknowledged by including standard verification or acknowledgment language in the instrument and transmitting a legible copy of the signed instrument by fax or electronic means.
New York governor issues executive order to continue temporary suspension and modification of laws relating to Covid-19
On March 27, the New York governor issued Executive Order 202.11 continuing the temporary suspension and modification of certain laws, including the expiration date of certain licensing laws, through April 26.
NYDFS encourages insurance licensees to use E-Signatures
The NYDFS issued guidance encouraging regulated insurance persons to use and accept electronic signatures and records to facilitate insurance transactions in instances that cause no consumer harm. The NYDFS reminded licensees that both New York’s Electronic Signatures and Records Act and the federal Electronic Signatures in Global and National Commerce Act permit the use of electronic signatures and records if the consumer consents. The NYDFS also stated it does not require consumer consent be obtained in any particular way.