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On March 27, Colorado’s Division of Banks and Division of Financial Services distributed a document consolidating Covid-19 related guidance regarding inspections and appraisals from the Appraisal Standards Board, Fannie Mae, Freddie Mac, and the FDIC. Taken together, the agencies have issued guidance indicating that they will accept external-only or desktop inspections and appraisals in light of risks of conducting interior inspections during the Covid-19 outbreak.
Colorado issues guidance on business continuity, pandemic planning to credit unions, savings and loan institutions
On March 10, the Colorado Department of Regulatory Agencies, Division of Financial Services, issued guidance on business continuity and pandemic response to Colorado state-chartered credit unions and savings and loan institutions. The guidance reminds regulated financial institutions to review and revise, if necessary, the institutions’ business continuity and pandemic response plans, which could also include liquidity management, contingency funding, and emergency response plans.
On March 16, the Colorado State Bank Commissioner issued guidance requesting that financial institutions notify the Division of Banking of any issues they may experience involving continuing operations, any unusual account withdrawals, FDIC insurance questions, or any other banking matter. The guidance also requests email notification of any changes to the financial institutions’ banking hours. With respect to scheduled and upcoming examinations, the Division is prepared to “adjust planned supervisory activities as events dictate, and will conduct as much of the examination as possible offsite.”
On March 20, the Colorado Governor issued an executive order limiting evictions and foreclosures because of Covid-19. The order requests that $3,000,000 from the Disaster Emergency Fund be made available to the Department of Local Affairs to provide short-term rental and mortgage assistance to low-income households facing financial hardship due to Covid-19. Among other things, the order also directs the Department of Regulatory Agencies (DORA), through the Divisions of Banking and Financial Services, to take steps to encourage banks, credit unions, and other financial institutions that are holding residential or commercial mortgages to halt foreclosures and related evictions in connection with the Covid-19 pandemic. DORA is further directed to encourage financial institutions to provide a 90-day deferment of payment for all consumer loans (e.g., residential and commercial mortgages, refinances, auto loans, small business loans). While some provisions of the order are effective for six months from the date of issuance, most provisions expire within 30 days from March 20, 2020, unless extended by executive order.
Colorado issues executive order and public health order requiring in-person workforce reduction of nonessential businesses
On March 22, the Colorado Governor issued an executive order requiring Colorado employers to reduce in-person work requirements by 50 percent for non-critical workplaces due to the presence of Covid-19. A public health order issued by the Colorado Department of Public Health and Environment subsequently that detailed the critical businesses that may continue to operate as normal. “Critical businesses” include financial institutions such as banks, credit institutions, insurance, payroll and accounting services, and services related to financial markets. The orders are effective through April 10, 2020, unless rescinded or modified.
On March 16, the Colorado Department of Regulatory Agencies sent an email reiterating that Colorado mortgage loan originatos (MLO) may perform licensed activities at a location other than at their registered work location. The Division notes that Colorado does not have any requirements regarding specific work locations at either the company or individual MLO level.
- Benjamin W. Hutten to discuss "Understanding OFAC sanctions" at a NAFCU webinar
- Warren W. Traiger to discuss "Key takeaways from proposed CRA modernization" at the New York Bankers Association Technology, Compliance & Risk Management Forum
- Garylene D. Javier to discuss "Navigating workplace culture in 2020" at the DC Bar Conference