InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
Maryland passes bill regarding creditworthiness
On May 30, the Maryland governor signed HB 1213, which requires “certain credit grantors to adhere to certain rules concerning evaluations of applications and, under certain circumstances, consider alternative methods of evaluating an applicant’s creditworthiness when evaluating an application for a primary residential mortgage loan or an extension of credit.” Under HB 1213, an entity must, among other things: (i) adhere to the rules concerning evaluations of applications including history of rent or mortgage payments and utility payments, school attendance, and work attendance; and (ii) consider other verifiable alternative indications of creditworthiness if requested by the applicant. The law is effective October 1.
Washington AG announces settlement with debt collection agency
On June 8, the Washington attorney general announced a settlement with a Colorado-based collection agency for alleged unlawful debt collection practices in violation of Washington’s Consumer Protection Act and Collection Agency Act, including assessing fees and costs on consumers even when no funds were captured in the garnishment, operating without a license for over a year, and failing to provide legally required garnishment exemptions to state residents. Under the terms of the consent decree, the debt collection agency must pay back approximately $475,000 in restitution to as many as 5,000 state residents and forgive up to $250,000 in fees and costs to resolve the lawsuit. The debt collection agency must also pay $414,000 to the AG’s office for the cost of the investigation and to fund the ongoing work of the office’s Consumer Protection Division. In addition to paying the fines, the agency is also required to: (i) discontinue assessing fees on consumers from whom the company has not collected funds; (ii) provide legally required garnishment exemptions to consumers; and (iii) incorporate legally required evidence when submitting garnishment judgment applications to the court.
Washington passes law allowing mortgage employees to work from home
On March 24, the Washington legislature passed SB 5077, allowing licensed mortgage loan originator activity to be conducted from the mortgage loan originator’s residence if, among other things, certain state and information security requirements are satisfied.
Washington issues updated guidance to residential mortgage loan servicers
On February 12, the Director of the Washington Department of Financial Institutions issued their fourth amended guidance to residential mortgage loan servicers. The guidance reminds residential mortgage loan servicers to take all necessary precautions to help prevent the spread of Covid-19, including allowing them to continue working from home (previously discussed here.) It also urges servicers to take “reasonable and prudent actions” to support consumers by:
- Forbearing mortgage payments;
- Refraining from reporting late payments to credit rating agencies;
- Offering mortgagors additional time to complete trial loan modifications, and ensuring that late payments do not affect their ability to obtain permanent loan modifications;
- Waiving late payment fees and online payment fees;
- Postponing foreclosures;
- Ensuring that the closure of the mortgage servicer’s office does not disrupt services to borrowers; and
- Proactively reaching out to mortgagors via app announcements, text, email or otherwise to explain the assistance being offered to mortgagors.
The guidance also notes that efforts to assist mortgagors will not be subjected to examiner criticism.
Washington Department of Financial Institutions once again extends “work from home” guidance
On January 29, the Washington Department of Financial Institutions issued interim regulatory guidance to licensed mortgage loan originators and companies that sponsor them relating to temporary remote work. The guidance extends earlier interim guidance (previously covered here, here, here, and here) permitting mortgage loan originators to work from home, provided certain data security obligations are met. The guidance extends through December 31, 2021.
Washington Department of Financial Institutions once again extends “work from home” guidance
On January 29, the Washington Department of Financial Institutions issued interim regulatory guidance to licensed mortgage loan originators and companies that sponsor them relating to temporary remote work. The guidance extends earlier interim guidance (previously covered here, here, here, and here) permitting mortgage loan originators to work from home, provided certain data security obligations are met. The guidance extends through December 31, 2021.
Washington extends garnishment protection to federal stimulus payments
On January 4, Washington Governor Jay Inslee issued a proclamation, extending the state’s moratorium on garnishments related to consumer debts (previously covered here, here, here and here,) and adding federal stimulus payments to the list of funds that are protected from garnishment. Protected funds already included state and federal unemployment payments. These protections were set to expire by January 19 until the governor issued an additional proclamation, extending the moratorium “until the termination of the Covid-19 State of Emergency or until rescinded.”
Washington governor extends suspension of consumer garnishment
On November 20, the Washington governor issued a proclamation extending a previous moratorium on garnishment for consumer debts until the earlier of December 7, 2020 or the termination of Washington’s Covid-19 State of Emergency. See here, here and here for previous coverage. The suspension applies to garnishment of consumer bank accounts, wages and income to satisfy consumer debt judgments.
Washington Department of Financial Institutions extends “work from home” guidance
On October 26, the Washington Department of Financial Institutions issued interim regulatory guidance to licensed mortgage loan originators and companies that sponsor them relating to temporary remote work. The guidance extends earlier interim guidance (previously covered here, here, and here) permitting mortgage loan originators to work from home, provided certain data security obligations are met. The guidance extends through March 31, 2021.
Washington amends and extends proclamations regarding state of emergency, garnishments, and accrual of interest
On October 2, the Washington governor issued Proclamation 20-49.9, which amends and extends proclamations 20-49.5, (which amends and extends garnishment proclamations) 20-05 (declaring a state of emergency) 20-49, 20-49.1, 20-49.2, 20-49.3, and 20-49.4 (regarding garnishments and accrual of interest). These proclamations were previously covered here, here, and here. The referenced proclamations are amended to (1) recognize the extension of statutory waivers and suspensions by the Washington legislature until the termination of the Covid-19 state of emergency or 11:59 p.m. on November 9, 2020, whichever is first, and (2) similarly extend the prohibitions therein until the termination of the Covid-19 state of emergency or 11:59 p.m. on November 9, 2020, whichever is first.