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The Arizona Department of Financial Institutions announced the implementation of a new license renewal process that will enable licensees to renew licenses of the parent licensee and its branches at the same time. Previously, licensees were required to complete renewal at the parent level, and then repeat the process for each branch. The department is currently in the first phase of the project, which will cover renewals for advance fee loan brokers, debt management companies, and sales finance companies, which have licenses expiring in June 2020.
Arizona Department of Financial Institutions issues guidance to financial institutions working with customers affected by Covid-19
On April 24, the Arizona Department of Financial Institution issued a statement to financial institutions working with customers affected by Covid-19. Financial institutions are encouraged to work with affected customers and communities including through, among other things, waiving certain fees, increasing ATM cash withdrawal limits, offering payment accommodations, and suspending actions to foreclose on homes and businesses. Prudent efforts to modify the terms on existing loans for affected customers will not be subject to department criticism. The statement also provides guidance on financial condition review, supervisory response and regulatory relief, regulatory reporting requirements, and alternative service options for customers.
On April 16, the Arizona Department of Insurance issued Regulatory Bulletin 2020-04 to certain insurers. Such insurers are encouraged to offer relief to customers affected by Covid-19, such as refraining from cancelling or non-renewing policies due to non-payment during the hardship, working with insured on premium payments, waiving late fees, interest, and penalties, delaying premium increases, and suspending the use of credit reports for rating. Insurers implementing Covid-19 related customer relief programs must make an informational filing in SERFF to document their programs.
On April 8, Arizona issued an executive order authorizing the use of remote online notarizations. The state had passed legislation legalizing remote online authorization in 2019 and the law was scheduled to take effect on July 1, 2020, but is now in effect due to the Covid-19 crisis.
On April 6, Arizona Governor Doug Ducey issued an executive order calling for a moratorium on small business evictions. The order applies to businesses impacted by the Covid-19 crisis and instructs landlords to work with tenants to waive late fees, penalties, and to develop rent repayment plans. In place until May 31, the order does not apply to foreclosure or eviction proceedings initiated before the March 11 declared state of emergency.
Arizona governor announces cooperation program with state banks to provide foreclosure and eviction protection
On March 30, Arizona Governor Doug Ducey announced a cooperative agreement with state banks to protect small businesses and families that have been impacted by the Covid-19 crisis from evictions and foreclosure. Under the initiative, banks and mortgage servicers are suspending evictions and foreclosures for up to 60 days, which may be extended longer to overlap with the declared state of emergency. Under the program, banks and servicers have established payment forbearance programs for mortgages, and also have established payment deferral programs for specific (non-mortgage) consumer loans and for small businesses. The announcement also noted that state banks are working to lend Paycheck Protection Program loans as provided by the Small Business Administration through the CARES Act.
On March 23, the Arizona Governor ordered that local jurisdictions may not prohibit essential functions and must coordinate any orders restricting movement outside the home with the state health department. The order identifies financial institutions as an essential business and operation.
On March 24, the governor of Arizona issued an executive order instructing law enforcement officers to delay for 120 days any enforcement of eviction orders for residential premises occupied by certain individuals impacted by Covid-19. The order applies when the individual is required to be quarantined due to her own or someone in her home’s Covid-19 diagnosis, ordered by a medical professional to self-quarantine, and demonstrates that they are at high risk for Covid-19 due to a health condition, or has suffered a substantial loss of income due to Covid-19.
On March 19, Arizona’s attorney general issued a request for financial and lending institutions to provide temporary relief to their Arizona customers. The governor’s requests for institutions included taking the following actions for at least 90 days: (ii) forbearing or deferring payments on mortgages, automobile loans, and consumer loans; (ii) postponing foreclosures and evictions; (iii) ceasing automobile repossessions; (iv) waiving late fees and default interest for late payments; and (v) halting negative credit reporting.
- Brandy A. Hood to discuss "Ongoing challenges of TRID compliance" at the Mortgage Bankers Association Live: Legal Issues and Regulatory Compliance Conference
- Daniel R. Alonso to discuss "Resisting temptation in a crisis: How to make sure ethics and compliance don't get diluted under financial strain" at a New York City Bar Association webcast
- Daniel P. Stipano to discuss "BSA for BSA seasoned officers" at an NAFCU webinar
- Jon David D. Langlois to discuss "LIBOR transition: Preparations for legal professionals" at a Mortgage Bankers Association webinar
- Garylene D. Javier to discuss "Navigating workplace culture in 2020" at the DC Bar Conference