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Washington governor issues real estate and mortgage guidance
On March 27, Governor Jay Inslee issued guidance on conducting real estate and mortgage transactions. The guidance declares that in-person meetings with customers, except when necessary for a customer to view a property or sign necessary documents, are prohibited, as are open-houses. Property viewings, inspections, appraisals, and final walk-throughs shall be arranged by appointment and limited to no more than two people on site at any one time. Except for the limited exceptions authorized above, all new real estate listings shall be facilitated remotely.
District of Columbia permits mortgage brokers and originators to work from home, delays reporting deadlines
On March 27, the District of Columbia Department of Insurance, Securities and Banking issued guidance to mortgage lenders, mortgage brokers and mortgage loan originators permitting them to work from non-licensed branches or locations during the Covid-19 outbreak. The guidance requires the maintenance of appropriate data protection and cybersecurity measures when working remotely. The department also extended the deadline for filing annual reports from March 31 to June 1. Finally, the guidance notes that all evictions of tenants and foreclosed homeowners on or before May 1 are stayed, and required mediation hearings are extended from 90 days to 120 days following the date of mailing of the notice of default.
Texas Office of Consumer Credit Commissioner issues bulletins regarding Covid-19 to regulated lenders, credit access businesses, tax lenders, and motor vehicle sales finance licensees
On March 26, the Texas Office of Consumer Credit Commissioner (OCCC) issued four bulletins directed at regulated lenders, credit access businesses, property tax lenders, and motor vehicle sales finance licensees in light of Covid-19. The bulletins urge these entities to work with borrowers during the crisis, including through taking the following measures:
- Increasing communication with borrowers regarding Covid-19.
- Working out modifications with borrowers to help ensure successful repayment, including deferred or partial payments, which would avoid delinquencies and negative credit reporting.
- Waiving certain fees or charges (e.g., late charges, additional finance charges, deferment charges, nonsufficient fund fees) during the disaster declaration.
- Suspending charging off accounts.
- Suspending repossession of vehicles, repossessions of collateral, foreclosure of real property, as applicable
The bulletins also provide guidance on the use of electronic signatures, which the bulletins note are generally allowed under Texas and federal law. The bulletins also provide that the OCCC will not take enforcement actions against regulated lenders, credit access businesses, property tax lenders, or motor vehicle sales finance licensees that conduct business activities from unlicensed locations, if conducted in accordance with certain data security, safe record keeping, and protection of personal information requirements set forth in the bulletins.
Idaho Department of Finance issues memorandum to money transmitter licensees and applicants
On March 26, the Idaho Department of Finance issued a memorandum to Idaho money transmitter licensees and applicants regarding agency operations and communications due to Covid-19. The memorandum includes information on the Department’s teleworking arrangements and notes that routine examinations of registered entities and agents have been suspended. Registration staff continues to process licensing/registration applications through the CRD/IARD/NMLS systems and U.S. mail. In line with the NMLS Policy committee’s decisions and recommendations, the Department has also extended deadlines by 60 days for the filing of certain reports and statements.
CFPB outlines regulatory flexibility related to Covid-19
On March 26, the CFPB announced several regulatory flexibility measures to help financial companies work with consumers affected by Covid-19. Specifically, the measures postpone certain industry data collections on Bureau-related rules. These include:
- HMDA. Quarterly information reporting by certain mortgage lenders as required under HMDA and Regulation C will not be expected during this time. However, entities should continue collecting and recording HMDA data in anticipation of making annual submissions. Entities will be provided information by the Bureau on when and how to commence new quarterly HMDA data submissions. (See statement here.)
- TILA. During this time, annual submissions required under TILA, Regulation Z, and Regulation E “concerning agreements between credit card issuers and institutions of higher education; quarterly submission of consumer credit card agreements; collection of certain credit card price and availability information; and submission of prepaid account agreements and related information” will not be expected. (See statement here.)
- Section 1071. A survey seeking information from financial institutions on the cost of compliance in connection with pending rulemaking on Section 1071 of the Dodd-Frank Act has been postponed. As previously covered by InfoBytes, under the terms of a stipulated settlement resolving a 2019 lawsuit that sought an order compelling the Bureau to issue a final rule implementing Section 1071, the Bureau agreed to outline a proposal for collecting data and studying discrimination in small-business lending.
- PACE Financing. A survey of firms providing Property Assessed Clean Energy (PACE) financing to consumers for the purposes of implementing Section 307 of the Economic Growth, Regulatory Relief, and Consumer Protection Act has been postponed.
- Supervision and Enforcement. The Bureau’s policy statement provides “that it does not intend to cite in an examination or initiate an enforcement action against any entity for failure to submit to the Bureau” specified information related to credit card and prepaid accounts. However, the Bureau’s announcement advises entities to “maintain records sufficient to allow them to make delayed submissions pursuant to Bureau guidance.” With respect to operational challenges facing institutions due to Covid-19, the Bureau states that it will work with institutions when scheduling examinations and other supervisory activities to minimize disruption and burden. “[W]hen conducting examinations and other supervisory activities and in determining whether to take enforcement action, the Bureau will consider the circumstances that entities may face as a result of the [Covid-19] pandemic and will be sensitive to good-faith efforts demonstrably designed to assist consumers,” the announcement states.
Special Alert: California governor releases Covid-19 relief package
On March 25, California Governor Gavin Newsom announced a financial relief package (Proposal) and related guidance to assist borrowers in California experiencing financial hardship as a result of the Covid-19 outbreak. According to the news release, the relief efforts are being supported by several of the nation’s largest national banks, as well as by nearly 200 state-chartered banks, credit unions, and other servicers operating in California (Participating Financial Institutions). Under the Proposal, California borrowers of residential mortgage loans may be eligible for relief with respect to mortgage payments, credit reporting, foreclosures, evictions, and late fees and charges.
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Click here to read the full special alert
If you have any questions regarding California’s financial relief package, or other related issues, please contact a Buckley attorney with whom you have worked in the past. You can also visit our Covid-19 News & Resources page for a compendium of issuances by federal and state agencies, as well as GSEs and other sources.
Kentucky governor orders closing of all non-life-sustaining businesses
On March 25, Kentucky Governor Andy Beshear issued an executive order mandating that only “life-sustaining businesses” may remain open and encouraged citizens to remain “healthy at home.” The list of life-sustaining businesses includes banks, credit unions, mortgage companies, payday lenders, check cashers, money transmitters, and securities institutions.
Minnesota issues executive order suspending evictions and writs of recovery, requesting moratorium on foreclosures
On March 23, the Minnesota governor issued an executive order suspending evictions and writs of recovery during the Covid-19 pandemic. The order also requests that financial institutions holding home mortgages implement an immediate moratorium on all pending and future foreclosures and related evictions when the foreclosure or foreclosure-related eviction is caused by the Covid-19 pandemic. Financial institutions are also strongly urged not to impose late fees or other penalties for late mortgage payments related to the Covid-19 pandemic. The executive order will remain in effect until the declared emergency is terminated or rescinded.
New Hampshire issues executive order prohibiting evictions and foreclosures
On March 17, the New Hampshire governor issued an emergency order temporarily prohibiting evictions and foreclosures. All judicial and non-judicial foreclosure actions are prohibited during the declared State of Emergency, and all applicable provisions of any law, rule, or other regulation which would allow for the initiation of foreclosure proceedings are suspended for the same duration. However, the order does not relieve an individual of their obligations to pay rent, make mortgage payments, or any other obligation which an individual may have under a tenancy or mortgage.
Connecticut Department of Banking issues guidance to residential mortgage servicers
On March 18, the Connecticut Department of Banking issued guidance to residential mortgage servicers on Covid-19-related issues. The Department encourages mortgage servicers to work with all borrowers whose ability to make loan repayments may be impacted by Covid-19. Such efforts may include waiving late fees, offering forbearance plans or other deferment options, and having adequate staff available to proactively work with borrowers. Mortgage servicers should also inform their internal and external collection teams regarding the servicers’ policies so that borrowers receive information about possible accommodations. The guidance also notes that Connecticut is extending Small Business Express loans for 90 days, offering a 90-day grace period on making payments, and delaying payment of some business taxes for 60 to 90 days.