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Illinois regulator permits credit unions to offer PPP loans to non-members
On April 10, the Illinois Department of Financial and Professional Regulation authorized state-chartered credit unions to offer current and future government assistance programs created as a result of the COVID-19 pandemic, including loans made under the Small Business Administration’s Paycheck Protection Program, to members of other Illinois state-chartered credit unions. Credit unions doing so must maintain documents demonstrating that the individual or business seeking assistance is a member of another Illinois state-chartered credit union and that the credit union at which the person is a member is unwilling or unable to provide the applicable government assistance.
Illinois Department of Financial and Professional Regulation issues guidance to debt collection agencies and debt buyers
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued guidance to Illinois-licensed debt collection agencies and debt buyers regarding Covid-19. The guidance reminds debt collection agencies that the Illinois Collection Agency Act does not contemplate collectors’ ability to conduct business at any place other than the address of record with the Department. Debt collection agencies seeking to work at a location other than their address of record, including remotely, are directed to provide notice to the Department within 14 days of any address changes. Debt collection agencies and debt buyers are encouraged to work with consumers to modify payment schedules or suspend all collection activity for a period of no less than 60 days. The Department also notes that it will closely monitor adherence to the prohibitions on communications at times and places that should be known to be inconvenient to the debtor under the Federal Debt Collection Practices Act and the Illinois Collection Agency Act.
Illinois Department of Financial and Professional Regulation issues notice to consumer credit licensees
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued a notice to consumer credit licensees stating that it appreciates advance notice of any changes to the licensee’s usual business practices. Licensees are expected to “act responsively and proactively to address any consumer harm that may arise,” including through waiving defaults where a consumer is unable to make a payment as a result of the licensee’s business practices. New credit transactions originated during Covid-19 will be evaluated as part of the next examination cycle.
Illinois Department of Financial and Professional Regulation issues guidance to Consumer Installment Loan Act, Payday Loan Reform Act, and Sales Finance Agency Act licensees on office closures
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued guidance to licensees under the Consumer Installment Loan Act, Payday Loan Reform Act, and Sales Finance Agency Act regarding office closures due to Covid-19. A licensee may close its offices without notice and approval of the Department as otherwise required under applicable law if certain conditions are met. For example, the licensee must provide notice to the Department no later than 24 hours after the closure and one business day prior to reopening, and the licensee must provide reasonable methods for consumers to make payments while its offices are closed. Additionally, if any payments are due on any obligations to a licensee on any closed day, then the payment must be considered received on the closed day for all purposes, including the computation of interest or charges, if received at any time before the close of business on the 30th calendar day following the last closed day.
Illinois Department of Financial and Professional Regulation issues guidance to credit unions
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued a notice to credit unions providing that credit unions may submit a request to postpone the credit union’s 2020 annual meeting to the Department’s Credit Union Section. In addition, the guidance requires credit unions to submit a waiver request to hold annual membership meetings in a month other than January, February, and March.
Illinois Department of Financial and Professional Regulation issues guidance to student loan servicers
On March 30, the Illinois Department of Financial and Professional Regulation, Division of Banking (Division), issued guidance encouraging Illinois-licensed student loan servicers to make prudent efforts to meet the financial needs of all student loan borrowers affected directly or indirectly by the Covid-19 pandemic. The guidance reiterates the importance of provisions in the Illinois Student Loan Servicing Rights Act that prohibit servicers from engaging in any unfair or deceptive practices and misapplying payments made by borrowers. Servicers are reminded that they are obligated to lay out all available options to borrowers, including income-based repayment, deferment, forbearance, and relieving borrowers of interest. In addition to adhering to the credit reporting provisions set forth under the CARES Act, the Division also encourages student loan servicers to use the disaster status code in conjunction with a deferment when reporting to the consumer credit reporting agencies to minimize any negative credit reporting impact to consumers due to the Covid-19 crisis.
Illinois Department of Financial and Professional Regulation issues questions and answers to credit unions regarding Covid-19
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued questions and answers to credit unions related to Covid-19 safety concerns. The guidance provides responses to questions regarding, among other things, receiving extensions for annual meetings, holding annual meetings by teleconference or other communications equipment, whether prior approval from the Department is required to close branches or lobbies, and whether the Department needs to approve any concessions, such as payroll interruption loans, extension, or deferments.
Illinois Department of Financial and Professional Regulation issues guidance to mortgage servicers
On March 30, the Illinois Department of Financial Regulation, Division of Banking and Division of Financial Institutions (Department), issued guidance to Illinois-licensed mortgage servicers and exempt mortgage servicers urging support for borrowers impacted by Covid-19. The Department urges all servicers of nonconforming and private mortgages to implement policies at least as helpful to borrowers as those offered for conforming loans, including, among others: (i) forbearing mortgage payments for at least 90 days without incurring additional interest or fees; (ii) refraining from reporting late payments to credit rating agencies and, when payments are deferred or modified, coding those payments as deferred with the applicable disaster order; (iii) offering loss mitigation options to borrowers; and (iv) waiving late payment fees and online payments fees; and (v) postponing foreclosures and evictions for at least 90 days. Prudent actions taken during this period will be considered to be consistent with safe and sound banking practices and will not be subject to examiner criticism.
Illinois Department of Financial and Professional Regulation issues notice to currency exchange and money transmitter licensees
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued a notice encouraging currency exchange and money transmitter licensees to provide the Department with advance notice of any changes to their usual business practices. The Department expects all licensees to act responsibly and proactively to address any consumer harm that may arise.
Illinois Department of Financial and Professional Regulation issues notice to title insurance licensees and registered agents
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued a notice encouraging title insurance licensees and registered agents to provide the Department with advance notice of any changes to their usual business practices. If a registered agent application has been submitted, it will be processed as quickly as possible.