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Washington insurance commissioner issues order regarding reporting requirements for collecting withheld depreciation payments
On April 27, the Washington insurance commissioner issued Executive Order 20-05 to insurers authorized to transact property and casualty insurance business and all entities regulated by the insurance commissioner. The order extends the deadline for policyholders of property and casualty insurance to report completed repairs in order to claim withheld depreciation payments until at least 60 days after June 26 or the expiration of the governor’s stay at home order, whichever is first.
States offer relief to student loan borrowers not covered by CARES Act
On April 23 and 21, nine states announced a multi-state initiative to provide student loan relief options for borrowers with privately held student loans not covered by the CARES Act. California, Colorado, Connecticut, Illinois, Massachusetts, New Jersey, Vermont, and Washington outlined within their announcements specific measures for borrowers with commercially-owned Federal Family Education Loan Program loans and borrowers with private student loans who are struggling to make payments due to the Covid-19 pandemic. The announcements also noted that Virginia is participating in the initiative as well. These relief options, offered in conjunction with the listed private student loan servicers, include (i) a minimum 90-days of forbearance relief; (ii) a waiver of late fees; (iii) no negative credit reporting; (iv) a 90-day moratorium on collection lawsuits; and (v) enrollment in applicable borrower assistance programs, such as income-based repayment. The states cautioned that enrollment in these relief options is not automatic, and recommended borrowers contact their student loan servicer to see what options best suit their needs.
In addition, California, Colorado, Connecticut, New Jersey, Vermont, and Washington recommended that regulated student loan servicers with limited ability to take these actions due to investor restrictions or contractual obligations “should instead proactively work with loan holders whenever possible to relax those restrictions or obligations.”
Washington governor issues proclamation extending eviction relief
On April 16, the Washington governor issued a proclamation extending and amending Proclamation 20-05 (declaring a state of emergency) and related amendments, and amending Proclamation 20-19 (regarding evictions). Effective immediately and until June 4, 2020, landlords, property owners, and property managers of residential dwellings and commercial rental properties in Washington may not, among other things, evict a tenant, assess certain fees, or increase the rate of rent or the amount of any deposit, except in certain limited circumstances.
Washington DFI issues guidance to investment advisers on CARES Act loans
The Washington Department of Financial Institutions issued guidance for state-registered investment advisers regarding CARES Act loans. Should a firm obtain a CARES Act loan, DFI will not consider it a net worth deficiency if certain criteria outlined in the guidance are met. However, if it is determined that some or all of the loan will not be forgiven, the firm must immediately notify the DFI and reclassify the loan as a liability.
Washington governor issues temporary moratorium on garnishments and accruals of interest
On April 14, Washington Governor Jay Inslee issued an executive order temporarily prohibiting certain garnishments and accruals of interest statewide. Governor Inslee noted that garnishments and other collect judgments could hinder consumers from paying for basic necessities, thereby, endangering the lives of individual consumers and risking further negative impacts on public health. Inslee’s statewide order is in place through May 14.
Washington regulator issues Covid-19 FAQs to credit unions
The Washington Department of Financial Institutions, Division of Credit Unions issued two FAQs addressing Covid-19 related issues. In the first, the division clarified that a safety deposit box is considered an essential function, and that credit unions should make every effort to allow members continued access. In the second FAQ, the division explained that the governor of Washington authorized electronic notarial acts, and that credit unions may provide remote notarial services.
Washington securities regulator provides relief to franchisors
On April 8, the Washington Department of Financial Institutions, Securities Division, announced that it would reduce filing fees for franchisors who are unable to timely submit audited financial statements in their year-end disclosure documents due to Covid-19. Fees for the registration of a franchisor that has not included audited financial statements for the most recent year in their required year end franchise disclosure documents are reduced from $600 to $100 in recognition that Covid-19 may impact the ability to obtain or finalize audited financial statements.
Washington regulator urges credit unions to work with troubled borrowers
On April 6, the Washington Department of Financial Institutions, Division of Credit Unions issued guidance urging credit unions to assist borrowers with reduced ability to repay their debt obligations, including waiving fees, increasing credit card limits for creditworthy borrowers, restructuring commercial loans, offering payment and loan modifications, ensuring continuation of mortgage servicing, and refraining from reporting late payments to credit reporting agencies. The Division emphasized that it would not criticize credit union’s efforts to accommodate members in a safe and sound manner, even if this reduces capital and earnings.
Washington governor and Department of Financial Institutions announce measures to assist with mortgage delinquencies
On March 31, Washington Governor Jay Inslee along with the director of the Washington State Department of Financial Institutions announced measures to alleviate burdens for distressed homeowners. DFI’s guidelines advise mortgage servicers to cooperate with distressed homeowners, and specifically mentioned that servicers should consider payment forbearance agreements with delinquent owners.
Washington governor issues real estate and mortgage guidance
On March 27, Governor Jay Inslee issued guidance on conducting real estate and mortgage transactions. The guidance declares that in-person meetings with customers, except when necessary for a customer to view a property or sign necessary documents, are prohibited, as are open-houses. Property viewings, inspections, appraisals, and final walk-throughs shall be arranged by appointment and limited to no more than two people on site at any one time. Except for the limited exceptions authorized above, all new real estate listings shall be facilitated remotely.