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DOJ, Oklahoma bank agree to consent order over redlining
On August 28, the DOJ announced a settlement agreement to resolve allegations of redlining by an Oklahoma-based bank. According to the complaint, defendant allegedly engaged in redlining by refraining from providing home loans and other mortgage-related services, and also engaged in biased behavior, to deter individuals residing in or seeking credit within predominantly Black and Hispanic neighborhoods in Tulsa from pursuing mortgage opportunities. According to the proposed consent order, without admitting or denying the allegations, defendant agreed to (i) invest $1.15 million to increase credit opportunities in neighborhoods of color; (ii) invest at least $950,000 in a loan subsidy fund for predominantly Black and Hispanic neighborhoods in Tulsa; (iii) invest $100,000 for advertising, outreach and consumer education; (iv) invest $100,000 for community partnerships to improve access to residential mortgage credit services; (v) “open a new community-oriented loan production office in the historically Black area of Tulsa”; and (vi) assign at least two mortgage loan officers to solicit mortgage applications in predominantly Black and Hispanic neighborhoods in Tulsa, among other things.
The DOJ press release makes reference to the 1921 Tulsa Race Massacre. The bank's press release announcing the settlement responded by stating that “[a]s Oklahomans, we carry a profound sense of sorrow for the tragic events of the Tulsa Race Massacre over a century ago. It is with deep concern that we note the Justice Department’s decision to reference this distressing historical event in its complaint against our bank, established a mere 25 years ago.”
Oklahoma ties maximum interest on loans to fed funds rate
The Oklahoma governor recently signed SB 794, which increases the maximum loan finance charge for certain loans (i.e., supervised loans under applicable Oklahoma law) by additionally including the federal funds rate published by the Federal Reserve Board. Specifically, a loan finance charge may not exceed the equivalent of the greater of either of the following: the total of (i) 32 percent plus the federal funds rate per year on the part of the unpaid balances of the principal which is $7,000 or less; (ii) 23 percent plus the federal funds rate per year on the part of the unpaid balances of the principal which greater than $7,000 but less than $11,000; and (iii) 20 percent plus the federal funds rate per year on the part of the unpaid balances of the principal which exceeds $11,000; or 25 percent plus the federal funds rate per year on the unpaid balances of the principal. The federal funds rate is defined as the rate published by the Fed that is “in effect as of the first day of each month immediately preceding the month during which the loan is consummated.” Supervised lenders may contract for and receive a loan finance charge not exceeding what is allowed by the Act. The Act is effective November 1.
FDIC announces Oklahoma disaster relief
On April 28, the FDIC issued FIL-22-2023 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Oklahoma affected by severe storms, straight-line winds, and tornados from April 19 to 20. The FDIC acknowledged the unusual circumstances faced by affected institutions and encouraged those institutions to work with impacted borrowers to, among other things: (i) extend repayment terms; (ii) restructure existing loans; or (iii) ease terms for new loans, provided the measures are done “in a manner consistent with sound banking practices.” Additionally, the FDIC noted that institutions “may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.” The FDIC will also consider regulatory relief from certain filing and publishing requirements and instructed institutions to contact the Dallas Regional Office if they expect delays in making filings or are experiencing difficulties in complying with publishing or other requirements.
FDIC announces Oklahoma, Montana disaster relief
On July 15, the FDIC issued guidance (see FIL-31-2022 and see FIL-32-2022) to provide regulatory relief to financial institutions and help facilitate recovery in areas of Oklahoma affected by a severe storm, tornadoes, and flooding that occurred between May 2 and 8 and in areas of Montana affected by a severe storm and flooding that occurred from June 10 and continuing. The FDIC writes that, in supervising impacted institutions, it will consider the unusual circumstances those institutions face. The guidance suggests that institutions work with borrowers impacted by the severe weather to extend repayment terms, restructure existing loans, or ease terms for new loans “in a manner consistent with sound banking practices.” The FDIC notes that institutions may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery. The agency will also consider relief from certain reporting and publishing requirements.
Oklahoma establishes telephone solicitation restrictions
On May 20, the Oklahoma governor signed HB 3168, which establishes the Telephone Solicitation Act of 2022. The bill, among other things, prohibits (i) certain sales calls without the prior express written consent of the called party; (ii) commercial telephone sellers or salespersons from using certain technology to conceal their true identity; and (iii) commercial telephone sellers or salespersons from using automated dialing or recorded messages to make certain commercial telephone solicitation phone calls. The bill also establishes a time frame during which a commercial telephone seller or salesperson may make commercial solicitation phone calls. The bill is effective November 1.
Oklahoma adjusts loan finance charge thresholds
On May 4, the Oklahoma governor signed SB 1687, which adjusts the amounts a supervised lender may charge in lieu of a loan finance charge on loans carrying principals of $3,000 or less. Previously, the principal limit was $300. The amendments outline specific allowable loan charges based on principal amount that may be made on qualifying loans. Additionally, for loans greater than $1,620 but not more than $3,000, lenders are allowed an acquisition charge for making the loan that may not exceed one-tenth of the amount of the principal. The threshold rate changes are effective July 1.
Oklahoma extends working from home guidance
On December 7, the Oklahoma Department of Consumer Credit extended, for the sixth time, its interim guidance to regulated entities on working from home (see here, here, here, here, here, and here for previous coverage). The guidance sets forth data security standards required for regulated entities with employees working from home and also provides that the department will expedite and waive fees for change of address applications in the event that a licensed location is compromised by Covid-19 or is undergoing decontamination. The guidance was extended through March 31, 2021.
Oklahoma regulator extends working from home guidance through end of year
On October 22, the Oklahoma Department of Consumer Credit extended, for the fifth time, its interim guidance to regulated entities on working from home (see here, here, here, here, and here for previous coverage). The guidance sets forth data security standards for regulated entities with employees working from home and also provides that the department will expedite and waive fees for change of address applications in the event that a licensed location is compromised by Covid-19 or is undergoing decontamination. The guidance was extended through December 31, 2020.
Oklahoma regulator amends working from home guidance
On September 23, the Oklahoma Department of Consumer Credit extended, for the third time, its interim guidance to regulated entities on working from home (see here, here, here and here for previous coverage). The guidance sets forth data security standards that regulated entities must meet in order to satisfy the department guidance. The guidance also provides that the department will expedite and waive fees for change of address applications in the event that a licensed location is compromised by Covid-19 or is undergoing decontamination. The guidance was extended through October 31, 2020.
Oklahoma regulator extends working from home guidance
On September 23, the Oklahoma Department of Consumer Credit extended, for the fourth time, its interim guidance to regulated entities on working from home (see here, here, here, and here for previous coverage). The guidance sets forth data security standards for regulated entities with employees working from home and also provides that the department will expedite and waive fees for change of address applications in the event that a licensed location is compromised by Covid-19 or is undergoing decontamination. The guidance was extended through October 31, 2020.