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Oregon governor calls for moratorium on residential evictions
On March 22, Oregon Governor Kate Brown issued an executive order placing a moratorium on residential evictions for reason of nonpayment during the Covid-19 crisis. The order called the moratorium "both a moral and a public health imperative" for those unable to make payments during the pandemic, and stipulated that evictions will be put on hold for a 90-day grace period.
Iowa suspends foreclosures, declares state of emergency
On March 22, the governor of Iowa proclaimed a state of emergency throughout Iowa. The proclamation prohibits the commencement of new foreclosures and suspends ongoing foreclosure proceedings on residential, commercial, and agricultural real property in Iowa, authorizes remote notarial acts, and provides a wide range of regulatory licensing relief.
South Carolina regulator issues MLO work location guidance
On March 13, 2020, the South Carolina State Board of Financial Institutions, Consumer Finance Division (division) released guidance for mortgage origination and servicing companies regarding working remotely due to Covid-19. The division’s interim guidance allows licensed mortgage loan originators (MLO) to work from home provided that certain criteria are met including (i) the company establishes temporary supervisory policies and procedures; (ii) the MLO has secure access to the company’s origination system; (iii) the security of the MLO’s computer is maintained; and (iv) the MLO does not keep physical company records at the remote location.
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.
VA issues foreclosure moratorium for Covid-19-affected borrowers
On March 18, the Department of Veterans Affairs (VA) released Circular-26-20-8, “Foreclosure Moratorium for Borrowers Affected by Covid-19,” to strongly encourage mortgage servicers to observe the following actions regarding home loan borrowers affected or potentially affected by Covid-19: (i) establish a 60-day moratorium starting March 18 on completing pending foreclosures or initiating new foreclosures; and (ii) consider the impact of eviction when choosing to retain property instead of conveying to the VA. The VA requests that loan holders not expose veterans and their families to additional risks through evictions, and states that VA regulation 38 C.F.R. 36.4324(a)(3)(ii) “allows additional interest on a guaranty claim when eventual termination has been delayed due to circumstances beyond the control of the holder, such as VA-requested forbearance.”
Nebraska Dept. of Banking and Finance to allow office relocations for MLOs
In March, the Nebraska Department of Banking and Finance released a form application for mortgage loan originators, processors, and underwriters to apply for a temporary office relocation due to Covid-19 quarantine procedures. This follows March 12 guidance from the department to temporarily allow licensed, sponsored MLOs to work from an unlicensed branch upon notification by the sponsor, and approval by the Department.
Maryland Court of Appeals suspends foreclosures and evictions
On March 18, the Maryland Court of Appeals issued an administrative order suspending residential foreclosures and evictions during the Covid-19 emergency. The order immediately stays (i) foreclosures of residential properties and foreclosures of the rights of redemption of residential properties pending in the circuit courts, and (ii) residential eviction matters pending in the District Court of Maryland and all pending residential eviction orders. Additionally, new foreclosure of residential property, foreclosure of rights of redemption after a tax sale, and residential evictions will be stayed upon filing. The order does not establish an expiration date, but will be “revised as circumstances warrant.”
Kansas governor suspends foreclosures
On March 17, the Kansas governor announced Executive Order #20-06, which directs all financial institutions operating in Kansas to temporarily suspend the initiation of any mortgage foreclosure efforts or judicial proceedings and any commercial or residential eviction efforts or judicial proceedings until the earlier of May 1, 2020, or the expiration of the State of Disaster Emergency proclamation.
Massachusetts temporarily waives requirements for certain residential property inspections prior to sale
On March 20, the Massachusetts governor ordered that the inspections for smoke alarms and carbon monoxide detectors required by state law in connection with residential property sales may be deferred, provided that (1) the buyer agrees to take responsibility for equipping the property with the requisite alarms and detectors; and (2) the inspection is conducted within 90 days after the state of emergency for the Covid-19 outbreak is lifted.
Oregon Division on Financial Regulation issues guidance for lenders and loan servicers
On March 20, the Oregon Division of Financial Regulation issued a bulletin for state-regulated lenders and loan servicers to work with borrowers impacted by Covid-19. The division encouraged lenders and servicers to offer distressed borrowers forbearance plans, waive late and online payment fees, ease credit terms for new loans, and deferred payment options. Most provisions of the bulletin called for a 90-day grace period and placed a moratorium on evictions and foreclosures. The guidance applies to banking institutions, credit unions, mortgage bankers, mortgage brokers, loan originators, and servicers, consumer finance lenders, and payday and title lenders. The issuance follows a declared state of emergency by Governor Brown on March 8.