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On April 22, the Iowa Division of Banking issued a statement to bank presidents and CEOs. The statement encourages banks to consider the Paycheck Protection Program Lending Facility created by the Federal Reserve as a liquidity option for Paycheck Protection Program loan activity. The announcement also addresses off-site examinations of financial institutions; the interagency statement on appraisals and evaluations for real estate affected by Covid-19; tracking payment extensions, deferrals, and modifications when working with customers; and loan loss reserve analysis, among other topics.
The Iowa Division of Credit Unions published a comprehensive resource containing information on Covid-19 regulatory updates. The document covers a range of regulatory changes applicable to credit unions, including: (i) the SBA-Paycheck Protection Program; (ii) Annual Meeting requirements; (iii) foreclosure moratoriums; (iv) remote notarizations; (v) member assistance; (vi) fraud awareness; (vii) moneys and credits tax filing deadline extensions (viii) loan deferments; and (ix) limitations of services/branch closures.
On April 3, the Iowa Division of Credit Unions issued a regulatory advisory bulletin pertaining to small business lending during the Covid-19 crisis. The bulletin provides details on the new Paycheck Protection Program offered through the Small Business Administration as part of the broader CARES Act. The guidelines provide application details for credit unions seeking to participate in the PPP, and specify that SBA-approved 7(a) lenders already qualify to issue PPP loans. The regulatory changes apply only PPP loans, and do not impact or otherwise change traditional 7(a) loans.
On March 24, Iowa’s Superintendent of Banking sent an update letter to bank presidents and CEOs concerning the state’s Covid-19 response efforts. The update highlighted, among other things, the following: (i) loan and grants available to small businesses through state and federal programs; (ii) the governor’s suspension of foreclosures and evictions in the state; (iii) the Division of Banking’s temporary suspension of requirement for in-person annual meetings; (iv) the governor’s outreach to county auditors, recorders and treasurers asking them to facilitate full range of vital mortgage-related services; (v) ongoing efforts to refine the offsite exam process; and (vi) guidance at the federal level from the Treasury Department and the March 22 Interagency Statement regarding loan modifications and troubled debt restructurings (covered by InfoBytes here).
On March 22, the governor of Iowa proclaimed a state of emergency throughout Iowa. The proclamation prohibits the commencement of new foreclosures and suspends ongoing foreclosure proceedings on residential, commercial, and agricultural real property in Iowa, authorizes remote notarial acts, and provides a wide range of regulatory licensing relief.
On March 18, the Iowa Division of Banking issued regulatory guidance for working from a residence or other company designated location. The guidance allows licensees and registrants, including licensed or registered mortgage loan originators, and their employees, to work remotely from their residence or another location designated by the employer during the COVID-19 pandemic, even if the residence or designated location is not a licensed or registered location. The guidance also provides best practices for remote workers to maintain security.
On March 12, the Iowa Division of Banking (IDOB) issued a statement to presidents and/or CEOs of all state-chartered banks regarding the temporary closure of bank branch offices. The guidance notes that while state banks are not required to get permission from the IDOB to temporarily close a branch office, the IDOB requests that the banks provide notification so that the IDOB can track closures. The guidance also provides that Iowa law permits the IDOB to authorize banks to operate in alternative locations in the event of an emergency. If a bank needs to operate out of a different location as a result of the Covid-19 situation, the bank must contact the bank’s analyst to obtain proper authorization.
On March 17, the Iowa Division of Credit Unions issued an update pertaining to advanced notice for credit unions to limit services or close branches. In response to the Covid-19 crisis, the superintendent announced the standard requirement to notify the division 60 days prior to closures or limitations of services would be relaxed to entail a notification via written email “in a timeframe as practicable as possible.” The update further explained that while no formal form is required, the credit union must provide details pertaining to closures or service limitations, and how it has communicated these changes to its members.
On March 16, the Iowa Division of Credit Unions issued an update enabling greater flexibility for holding annual meetings in 2020. The update stipulates that as long as the credit union in question held an annual meeting in 2019, it would have the full 2020 calendar to hold its next meeting. The update also mentioned the potential for waiving the annual meeting requirement altogether, but explained no such waiver was yet necessary.
- Sherry-Maria Safchuk to discuss UDAAP at an American Bar Association webinar
- Jeffrey P. Naimon to discuss "What to expect: The new administration and regulatory changes" at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Jonice Gray Tucker to discuss “The future of fair lending” at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Steven R. vonBerg to discuss "LO comp challenges" at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Michelle L. Rogers to discuss "Major litigation" at the Mortgage Bankers Association Legal Issues and Regulatory Compliance Conference
- Michelle L. Rogers to discuss “The False Claims Act today” at the Federal Bar Association Qui Tam Section Roundtable