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Colorado Division of Banking issues guidance to state-chartered financial institutions
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.”
Colorado issues executive order limiting evictions and foreclosures
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.
Colorado Dept. of Regulatory Agencies relaxes MLO work location rules
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.
Colorado securities regulator provides temporary relief to securities businesses
On March 20, the Acting Securities Commissioner of Colorado provided temporary regulatory relief to broker-dealers, state-registered investment advisers, federal covered investment advisers, and their registered agents. The relief exempted these professionals from certain registration and filing requirements if, among other things, they are displaced and working from a location outside their jurisdiction of registration or their clients have been displaced from their ordinary state and are now residing in Colorado, and they were properly registered with all required regulators on March 1, 2020.
Colorado attorney general requests pause of debt collection efforts
On March 18, the Colorado attorney general released a statement urging student loan servicers, creditors, and debt collectors to discontinue mandatory debt collection efforts for consumers who experience financial distress due to Covid-19. The statement further encourages these providers to work proactively to assist such consumers, and states that the attorney general’s office will “continue to evaluate and investigate relevant legal avenues” to protect borrowers during the crisis.