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On October 22, the Tennessee Department of Financial Institutions issued a memorandum to licensed mortgage loan originators suspending its requirement that licensees complete a criminal background check or authorize a credit report if they have not done so in the past three years as a condition to renewal for calendar year 2021, except where the mortgage loan originator has entered into a consent agreement with the department requiring such actions. The memorandum states the requirement will be in effect for licensee renewal for calendar year 2022.
On June 29, the governor of Tennessee issued Executive Order No. 52, extending authorization for remote notarization and witnessing of documents through August 29. The order extended the terms initially authorized in Executive Order No. 26 and previously extended by Executive Order No. 37.
On May 12, Tennessee Governor Bill Lee issued Executive Order No. 37 allowing for remote notarizations and witnessing of documents until June 30, thereby extending the relief previously granted in Executive Order No. 26, which was set to expire on May 18.
Tennessee extends timeline for bank examinations and authorizes virtual shareholder meetings during pandemic
On May 12, Tennessee Governor Bill Lee issued Executive Order No. 36 suspending or amending a variety of statutory and regulatory requirements to facilitate the treatment and containment of Covid-19. These include, among other things, extending examination cycles for financial institutions, extending timing requirements for securities registrations, and allowing for virtual shareholder meetings. The order will be in effect until June 30, unless amended or revised.
On May 1, the governor of Tennessee issued Executive Order No. 32, which authorizes certain corporations to utilize remote communications for shareholder meetings. For corporations holding remote shareholder meetings, the order suspends requirements that corporations make a list of shareholders entitled to receive notice of the meeting available at the meeting, provided the list is made available on an electronic network to which shareholders are granted access.
On April 28, the FDIC issued FIL-51-2020 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Tennessee affected by a recent series of severe weather. In the letter, the FDIC encourages institutions to consider, among other things, (i) extending repayment terms; (ii) restructuring existing loans; or (iii) easing terms for new loans to borrowers affected by the severe weather, provided the measures are “done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.” Additionally, the FDIC notes that institutions may receive Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery. The FDIC states it will also consider relief from certain filing and publishing requirements.
Find continuing InfoBytes coverage on disaster relief guidance here.
On April 3, the Tennessee Department of Commerce and Insurance and Department of Financial Institutions issued a joint bulletin pertaining to premium finance agreements. The joint statement encouraged premium finance lenders to provide grace periods on payments and to be flexible when determining agreement defaults. The Department of Commerce and Insurance, working in conjunction with the Department of Financial Institutions, recommended insurance carriers coordinate with premium finance lenders on grace period modifications.
Tennessee Department of Financial Institutions issues guidance to non-depository financial institutions
On March 23, The Tennessee Department of Financial Institutions issued interim guidance to all non-depository financial institutions and individuals licensed or registered with the Compliance Division. The guidance is intended to facilitate the ability of licensees and registrants to take precautions deemed necessary to avoid the risk of exposure to or transmission of COVID-19, and reminds businesses that business continuity plans should address the threat of pandemic outbreak and the potential impact on the delivery of financial services.
- Jonice Gray Tucker to discuss “How the new administration sets the tone for 2021” at the American Conference Institute Legal, Regulatory and Compliance Forum on Fintech & Emerging Payment Systems
- Sherry-Maria Safchuk to discuss UDAAP in consumer finance 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