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  • Rhode Island regulator extends guidance for lenders

    State Issues

    On April 28, the Rhode Island Department of Business Regulation, Banking Division, amended previous guidance (previously covered here) issued to mortgage loan originators, lenders, loan brokers and exempt company registrants. The previous guidance permitted working at home, even if the home is located outside of Rhode Island or is not a licensed branch. The department extended this guidance until June 30, 2020.

    State Issues Covid-19 Rhode Island Mortgages Mortgage Origination Lending Broker-Dealer

  • South Carolina regulator issues guidance to mortgage brokers

    State Issues

    On April 28, the South Carolina Department of Consumer Affairs issued interim guidance to mortgage brokers on working remotely from unlicensed locations and extended the deadline for submitting the 2019 mortgage log. The department clarified that, until May 31, 2020, licensed mortgage loan originators are permitted to work from home, whether in South Carolina or another state, even if the home is not a licensed branch. The department also reported that it has deferred the filing deadline for the 2019 mortgage log required of mortgage broker companies until June 1, 2020.

    State Issues Covid-19 South Carolina Mortgage Broker Mortgages Broker-Dealer Licensing

  • Wisconsin extends stay at home order

    State Issues

    On April 16, the Wisconsin Department of Health Services extended its order closing all non-essential businesses and ordering residents to stay at home until May 26, 2020. Banks, credit unions, and other depository or lending institutions; licensed financial service providers; insurance services; broker dealers; and investment advisors are not required are considered essential and not required to close.

    State Issues Covid-19 Wisconsin Bank Compliance Credit Union Licensing Insurance Broker-Dealer Investment Adviser

  • California Department of Real Estate issues guidance regarding late submission of certain required reports

    State Issues

    On April 13, the California Department of Real Estate (DRE) issued guidance providing that the DRE will review situations on a case-by-case basis with respect to deadlines for filing certain DRE required reports. Entities that are late in submitting their reports are requested to add a signed explanation as to the delay, if possible. The DRE will work with brokers who miss deadlines due to disruptions resulting from Covid-19.

    State Issues Covid-19 California Real Estate Broker-Dealer Mortgages

  • Louisiana Office of Financial Institutions declares emergency for residential mortgage entities

    State Issues

    On April 9, Louisiana Office of Financial Institutions (OFI) Commissioner John Ducrest declared a state of emergency and issued guidance for Louisiana-licensed residential mortgage brokers, lenders, and originators in response to the Covid-19 crisis. The order: (i) granted the authority to temporarily close or relocate operations, services, and products; (ii) permitted mortgage loan originators to work remotely from home, even if their home isn’t registered with OFI; (iii) waived the standard prior notification requirements pertaining to closures or relocations of operations, services, and products; and (iv) provided guidance for reporting operational changes and temporary relocations. The declaration expires April 30, unless otherwise extended or renewed.

    State Issues Covid-19 Louisiana Mortgages Broker-Dealer Mortgage Origination

  • Louisiana Office of Financial Institutions declares emergency for state-licensed lenders and brokers

    State Issues

    On April 9, Louisiana Office of Financial Institutions Commissioner John Ducrest declared a state of emergency and issued guidance for Louisiana-licensed lenders and brokers in response to the Covid-19 crisis. The order: (i) provided guidance for temporarily closing or relocating operations, services, and products; (ii) waived the 30-day notification requirement pertaining to closures or relocations of operations, services, and products; and (iii) provided guidance for reporting operational changes and temporary relocations. The declaration expires April 30, unless otherwise extended or renewed.

    State Issues Covid-19 Louisiana Licensing Broker-Dealer

  • New York Department of Financial Services shares guidance on insurance notice obligations

    State Issues

    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.

    State Issues Covid-19 New York NYDFS Broker-Dealer

  • SEC issues temporary guidance on signature and notary requirements

    Federal Issues

    On April 2, the SEC’s Division of Trading and Markets (Division) issued a statement regarding temporary requirements—as a result of Covid-19—for certain documents ordinarily submitted to the Division in paper form, including documents that require signatures or notarization. The Division states that it will not recommend enforcement actions for noncompliance with paper document and manual signature submission requirements against persons experiencing Covid-19-related logistical compliance difficulties, provided that certain conditions are met, including: (i) paper submission alternatives are coordinated with Division staff; (ii) electronic signatures are used in place of manual signatures; (iii) manually signed signature pages for all electronically signed submissions are retained and presented to the Division upon request; (iv) an indication of the date and time a signature page was signed is furnished; and (v) “policies and procedures governing this process” are created and implemented.

    The Division states that it will not recommend an enforcement action for failure to obtain notarization services, including those required for electronically filed broker-dealer annual reports due prior to June 30, if the filer: (i) provides a note on the document to indicate that it was not notarized “based upon relief from Commission staff and difficulties arising from COVID-19”; and (ii) provides written notification that the document was not notarized due to Covid-19 related issues to the Division at tradingandmarkets@sec.gov, or, in the case of a broker-dealer annual report, to “designated examining authority.”

    The statement’s guidance is effective for papers submitted from March 16 through June 30.

    Federal Issues Agency Rule-Making & Guidance SEC Broker-Dealer Notary Covid-19

  • Minnesota Commerce Department provides relief to financial professionals

    State Issues

    On March 30, the Minnesota Commerce Department issued Regulatory Guidance 20-08 to provide certain relief to broker-dealers, state registered investment advisers, federal covered investment advisers, and their registered agents or representatives (collectively, “financial professionals”). The guidance provides the following relief:

    • Certain financial professionals who are not registered or notice filed with the commissioner and have been displaced from their ordinary business locations are granted a temporary exemption from the registration and filing requirements of certain provisions of the Minnesota Securities Act, provided that certain requirements are met. Qualifying financial professionals may engage in certain enumerated activities without registering or filing with the commissioner.
    • Broker-dealers, state registered investment advisors, and federal covered investment advisors are permitted to submit Forms U4 without first obtaining physical signatures from individual agents and representatives, provided that certain requirements are met.
    • State registered investment advisors are provided relief from annual update filings and certain document delivery requirements.

    State Issues Covid-19 Minnesota Broker-Dealer

  • Indiana Securities Commissioner eases certain filing and other requirements for financial professionals

    State Issues

    On March 24, the Indiana Securities Commissioner issued an administrative order providing relief to broker-dealers, investment advisers, and their registered agents or investment adviser representatives affected by the Covid-19 outbreak. Among other things, the administrative order provides the following relief:

    • creates a temporary exemption from registration where a person is working from a location outside of the jurisdiction where that person is currently registered, as long as the person notifies the Division;
    • permits firms to submit Form U4 electronically without obtaining physical signatures until it is practicable to do so;
    • grants a 45-day extension of time for state registered investment advisers to adhere to any filing, updating, or customer delivery requirements required by Forms ADV; and
    • extends the time to May 15 for any broker-dealer or investment adviser to submit complete responses to the 2020 Investment Adviser/Broker-Dealer Questionnaire.

    State Issues Indiana Covid-19 Securities Broker-Dealer Investment Adviser

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