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Illinois Department of Financial and Professional Regulation extends deadline for submission of financial statements for certain money transmitter licensees
On April 30, the Illinois Department of Financial and Professional Regulation issued guidance to persons or entities licensed pursuant to the Transmitter of Money Act (TOMA) regarding the submission of financial documents. TOMA licensees who are required to submit financial documents for renewal for the calendar year 2020 are granted an extension of 180 days after the licensee’s fiscal year for the submission of financial statements. All other requests for an extension of time will be considered on a case-by-case basis.
Alabama State Banking Department issues memorandum to licensees to work with customers
On April 29, the Alabama State Banking Department issued a memorandum encouraging licensees to work proactively with customers and to keep the department apprised of such efforts. Licensees are also reminded to work with customers to make sure they are aware of the potential for scams during the COVID-19 pandemic. The department should be notified of any suspicious lending-related activity.
Wisconsin Department of Financial Services discourages unlicensed adjustment service companies
On April 29, the Wisconsin Department of Financial Institutions issued guidance on adjustment service companies and encouraged Wisconsin residents exercise caution before hiring companies to assist them with debt management. In particular the guidance discourages doing business with unlicensed companies and links to a list of licensed adjustment service companies.
South Carolina regulator issues guidance to mortgage brokers
On April 28, the South Carolina Department of Consumer Affairs issued interim guidance to mortgage brokers on working remotely from unlicensed locations and extended the deadline for submitting the 2019 mortgage log. The department clarified that, until May 31, 2020, licensed mortgage loan originators are permitted to work from home, whether in South Carolina or another state, even if the home is not a licensed branch. The department also reported that it has deferred the filing deadline for the 2019 mortgage log required of mortgage broker companies until June 1, 2020.
Virginia outlines student loan servicer requirements
On April 22, the Virginia legislature enacted SB 77, which requires entities servicing student loans in the Commonwealth to be licensed by the State Corporation Commission (SCC). Notably, banks, savings institutions, credit unions, and financial institutions regulated under 12 U.S.C. § 2002 are exempt from the licensing requirements. In addition to outlining specific licensing requirements, SB 77 states that non-exempt student loan servicers must also refrain from, among other things, (i) engaging in any unfair or deceptive act or practice in connection with the servicing of a qualified education loan by misrepresenting the amount, nature, or terms of any loan fees or payments, the terms and conditions of the loan agreement, or the borrower’s loan obligations; (ii) misapplying loan payments to an outstanding balance; (iii) failing to report both the favorable and unfavorable payment history of a borrower to a nationally recognized consumer credit bureau at least once a year provided the loan servicer regularly reports such information; (iv) failing to communicate with a borrower’s authorized representative; and (v) making false statements or omitting material facts in connection with information provided to the SCC or another government authority. Student loan servicers must also comply with other requirements, such as evaluating qualified borrowers for income-driven repayment programs, and responding to borrowers’ written inquiries within 30 days.
Additionally, SB 77 creates a private cause of action available to “[a]ny person who suffers damage as a result of the failure of a qualified education loan servicer to comply” with the bill’s requirements or with applicable federal student loan servicing laws and regulations. The bill further provides that violations are subject to a civil penalty not exceeding $2,500 and are considered prohibited practices under the Virginia Consumer Protection Act. SB 77 has a delayed effective date of July 1, 2021; however, the SCC will begin accepting applications starting on or before March 1, 2021.
Oklahoma Department of Consumer Credit issues amended interim guidance regarding remote work for employees of licensees
On April 23, the Oklahoma Department of Consumer Credit issued amended interim guidance to licensees regarding temporary operations from home and alternate locations. Mortgage loan originators and employees of other regulated entities who are typically required to work only from licensed locations may work from home, and sets forth data security requirements that must be met to conduct activities from home. Companies may also use an alternate site for conducting business if a licensed location is compromised or undergoing decontamination procedures. In such an event, the department is prepared to expedite address changes and waive associated fees. The department also states that it will work with affected licensees to schedule examinations or inspections to minimize disruption. The interim guidance is effective through May 31, 2020, unless otherwise changed, extended, or withdrawn.
New Jersey regulator extends license application deadlines
On April 23, the New Jersey Department of Banking and Insurance extended the deadline for license and registration applications under New Jersey’s Mortgage Servicers Licensing Act to June 12, 2020. Persons required to seek licensure under the act include entities that are in the business of servicing residential mortgage loans, and which are not already licensed as residential mortgage lenders and entities licensed as residential mortgage lenders or correspondent residential mortgage lenders conducting business in New Jersey.
Oregon Division of Financial Regulation issues bulletin permitting temporary work from home for employees of certain licensees
On April 20, the Oregon Division of Financial Regulation issued a revised Bulletin No. DFR 2020-6 temporarily authorizing certain licensees to work from home while transacting business when specific conditions are met. Among other things, the bulletin requires licensed companies to provide prior notice to the DFR of their intent to permit employees to work from home to prevent the spread of Covid-19.
Delaware check seller and money transmitter license required to transition to NMLS by June 15
On April 15, NMLS published a Delaware Check Seller and Money Transmitter License requirements checklist for a new application, amendment, surrender, and license transition to NMLS. Per Delaware’s recent mandate, as detailed in APPROVED’s post from April 7, new license applicants and existing licensees will be required to use NMLS beginning April 15, 2020. All existing licensees have until June 15, 2020 to submit their license transition requests through NMLS.
Please see the full requirements for transitioning the license to NMLS here.
Wisconsin extends stay at home order
On April 16, the Wisconsin Department of Health Services extended its order closing all non-essential businesses and ordering residents to stay at home until May 26, 2020. Banks, credit unions, and other depository or lending institutions; licensed financial service providers; insurance services; broker dealers; and investment advisors are not required are considered essential and not required to close.