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New York regulator issues licensee work location guidance
On March 12, the Superintendent of the New York State Department of Financial Services ordered temporary relief to New York certain financial institutions to temporarily relocate or close branch offices or places of business if adversely affected by Covid-19, “without complying with the prior notice or application requirements of the Banking Law or Financial Services Law.” However, licensed individuals may not conduct licensable activities in person with members of the public at or from their personal residence. Authorization was also given for 45-day extensions to filing deadlines for certain certifications and annual and quarterly filings.
Wisconsin DFI provides Covid-19 guidance
In March, the Wisconsin Department of Financial Institutions, Division of Banking (Division) issued guidance to state licensed mortgage loan originators (MLO) regarding working from a location that is not licensed or registered in light of Covid-19. Effective immediately, the Division will allow MLOs to work from home provided they comply with a number of provisions, including (i) the sponsoring licensed entity must notify the Division which MLOs will be working from home and keep a list of all such MLOs to be available upon request; (ii) the MLO may not maintain physical business records at home; and (iii) MLOs may not conduct business with consumers at the home location. Additional resources for financial services companies regarding Covid-19 may be found at the Department of Financial Institutions webpage here.
Louisiana Office of Financial Institutions issues emergency advisory
On March 18, the Louisiana Office of Financial Institutions (LOFI) issued an emergency advisory for lenders/brokers licensed under certain Louisiana laws. The declaration permits non-depository entities operating in Louisiana to temporarily close licensed locations located in Louisiana or to temporarily close and/or relocate some or all of the operations, services, and products of a closed location to another location or locations within the state. The declaration waives the required 30-day written notice requirement for changes in location or the relocation of some or all of the operations, services, and products.
Florida Office of Financial Regulation issues emergency order to extend renewal deadlines
On March 20, the Commissioner of the Office of Financial Regulation issued an emergency order providing that existing renewal deadlines occurring in March or April for licenses, permits, registrations and certificates issued by OFR are suspended and tolled for 30 days unless extended.
Colorado Dept. of Regulatory Agencies relaxes MLO work location rules
On March 16, the Colorado Department of Regulatory Agencies sent an email reiterating that Colorado mortgage loan originatos (MLO) may perform licensed activities at a location other than at their registered work location. The Division notes that Colorado does not have any requirements regarding specific work locations at either the company or individual MLO level.
Alabama allows MLOs to work from home
On March 12, the Alabama State Banking Department issued a statement reminding all licensees to update business continuity plans. In addition, the statement also allows licensees to relocate offices or to permit Mortgage Loan Originators to work from home to help prevent the spread of Covid-19. The Department encourages licensees to maintain compliance with all applicable laws and regulations, and to notify the Department of any relocation, closure or remote work.
On March 16, the Alabama Governor issued a statement expressing confidence in the measures that financial institutions have put in place. The statement notes that Alabama banks are required to have business continuity plans in place to address emergency situations.
New Jersey issues bulletin permitting licensees to work from home due to Covid-19
On March 19, the Commissioner of the Department of Banking and Insurance (Department) signed Bulletin No. 20-06 setting forth the Department’s no-action position regarding licensure for certain branch office locations due to individuals temporarily working from home as a result of Covid-19. Licensees must submit a list of all individuals working from home, a certification that the individuals are working from home due to Covid-19, and a certification that the locations will maintain certain data security and privacy protections. The no-action position is effective through April 30. In addition, the Department requested prompt notice for any changes to the operating hours of branch locations.
Massachusetts DOB instructs licensees on temporary branch closures
On March 19, the Massachusetts Division of Banks issued guidance to licensees for temporary closures necessitated by Covid-19. Licensees are encouraged to provide alternative service options to customers when feasible and notify customers about closures and alternatives as soon as practicable. In addition, licensees should notify the Division of any closures, business disruptions or other significant Covid-19-related developments, including significant staff or liquidity shortages or issues with funding closed loans to consumers.
Wisconsin Department of Financial Institutions issues guidance to payday lenders
On March 18, the Wisconsin Department of Financial Institutions (DFI) announced the issuance of emergency guidance on character and fitness requirements for all payday and licensed lenders doing business in Wisconsin. The DFI cautions payday and licensed lenders that increasing interest rates, fees, or any costs of borrowing in response to the Covid-19 crisis may result in license suspension or revocation. The emergency guidance also encourages the reduction of rates and fees “as low as operational expenses and sound lending practices allow.”
Michigan directs licensees to provide Covid-19 response summary by March 20
On March 18, the Michigan Department of Insurance and Financial Services circulated a notice to all Michigan consumer finance licensees and registrants requiring them to provide a summary of the actions that they have taken in response to the Covid-19 pandemic. The notice provides a series of questions for licensees and registrants to include in their summaries. The deadline for submitting the summary is 5:00 p.m. on March 20 (slightly more than 48 hours from the issuance of the notice). The summary must be submitted via email to DIFS-OCFInquiriesandInfo@michigan.gov.
However, we understand from DIFS personnel that an in-depth response is not expected, and that the agency is primarily concerned with understanding licensees’ and registrants’ plans so that they can better address related inquiries from consumers.