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Missouri amends mortgage broker licensing requirements
On July 6, the Missouri governor signed SB 599, which, among other things, modifies the state’s mortgage broker licensing requirements. Specifically, the legislation (i) provides that a prelicensing education course that is completed by an applicant will not satisfy the state’s education requirement if the course precedes an application “by a certain period” as established by the Nationwide Multi-State Licensing System and Registry (NMLSR); (ii) requires persons with various financial relationships with a business applicant for a residential mortgage loan broker license to furnish fingerprints to the NMLSR for submission to the FBI and any other authorized government entity for a background check; and (iii) allows the Director of the Division of Finance to waive the requirement that residential mortgage loan brokers maintain at least one full-service office in the state of Missouri for persons “exclusively engaged in the business of loan processing or underwriting,” or providing mortgage loan servicing. The legislation is effective August 28.
Louisiana requires licensing for virtual currency businesses
On June 13, the Louisiana governor signed HB 701, which provides for the licensing and regulation of virtual currency businesses in the state. Subject to certain exceptions, the bill establishes licensing and registration requirements, and, among other things, (i) authorizes reciprocity of licensure with other states; (ii) specifies that licensee applications must be submitted through the Nationwide Multi-State Licensing System; (iii) adds provisions related to licensee examinations; (iv) outlines licensee surety bond requirements “based on the nature and extent of risks in the applicant’s virtual currency business model”; (v) provides the state’s office of financial institutions with enforcement authority; and (vi) prohibits licensees from engaging in unfair, deceptive, or fraudulent practices. The act is effective August 1.
New York governor announces new Covid-19 rental assistance program
On July 14, the New York governor announced an emergency rental assistance program that will provide direct aid to tenants who have lost income due to the Covid-19 pandemic. The program is funded through the CARES Act’s Coronavirus Relief Fund and will be administered by the New York State Homes and Community Renewal, which will begin accepting applications for assistance on July 16. To qualify for the program, applicants must meet certain eligibility requirements, including loss of income and residency requirements.
Nevada attorney general releases Spanish translation of Covid-19 lease addendum and promissory note
On July 14, the Nevada attorney general released a Spanish translation of the Lease Addendum and Promissory Note Template for Rental Arrearages Due to Covid-19. The Nevada governor previously issued Emergency Directive 025, previously covered here, which encouraged the use of the form to cure rental payment defaults of the original lease agreements.
Minnesota issues executive order modifying suspensions of evictions and writs of recovery and requesting foreclosure moratorium
On July 14, the Minnesota governor issued Executive Order 20-79, which modifies the previous suspension of evictions and writs of recovery during the Covid-19 emergency. Among other things, the order limits the ability of property owners, mortgage holders, and others to file an eviction action, including for failure to pay rent or material violation of the lease, subject to certain exceptions. Further, the executive order limits residential landlords’ ability to terminate residential leases during the Covid-19 emergency. Officers must also cease executing writs of recovery of premises, subject to certain exceptions. Financial institutions holding home mortgages are requested to implement an immediate moratorium on all pending and future foreclosures arising from a substantial decrease in income or substantial out of pocket medical expenses caused by the Covid-19 pandemic, or any local, state, or federal governmental response to Covid-19. 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 provisions of the executive order take effect on August 4, 2020, when Executive Order 20-73 (previously covered here) and Executive Order 20-14 (previously covered here) are rescinded.
Indiana provides broker-dealers with relief from branch examination regulation
On July 13, the Indiana Secretary of State, Securities Division, issued a compliance alert providing temporary relief from annual branch examination requirements. In light of the restrictions on travel caused by the pandemic, broker-dealers are not required to conduct an annual compliance examination in each branch office located in Indiana. However, a firm with the ability to conduct a remote branch examination during 2020 is encouraged to do so. Registrants are also reminded of their obligation to properly supervise agents and employees.
Connecticut governor authorizes creation of temporary mortgage and rental assistance programs
On July 13, the Connecticut governor issued Executive Order No. 7GGG, which authorizes the Connecticut Department of Housing to create a temporary rental housing assistance program for tenants who meet criteria established by the department. The order also authorizes the Connecticut Housing Finance Authority to create a temporary mortgage assistance program for borrowers who meet certain criteria to be established by the department to mitigate the effects of the Covid-19 pandemic.
California AG publishes CCPA FAQs
The California attorney general recently published a set of frequently asked questions providing general consumer information on the California Consumer Privacy Act (CCPA). The CCPA—enacted in June 2018 (covered by a Buckley Special Alert) and amended several times—became effective January 1. Final proposed regulations were submitted by the AG last month as required under the CCPA’s July 1 statutory deadline (covered by InfoBytes here), and are currently with the California Office of Administrative Law for review. The FAQs—which will be updated periodically and do not serve as legal advice, regulatory guidance, or as an opinion of the AG—are intended to provide consumers guidance on exercising their rights under the CCPA.
- General CCPA information. The FAQs address consumer rights under the CCPA and reiterate that these rights apply only to California residents. This section also clarifies the definition of “personal information,” outlines businesses’ compliance thresholds, and states that the CCPA does not apply to nonprofit organizations and government agencies. The FAQs also remind consumers of their limited ability to sue businesses for CCPA violations and details the conditions that must be met before a consumer may sue a business for a data breach. The FAQs remind consumers that if they believe a business has violated the CCPA, they may file a complaint with the AG’s office.
- Right to opt-out of sale. The FAQs answer common questions related to consumers’ requests for businesses not to sell their personal information. The FAQs provide information on the steps for submitting opt-out requests, as well as explanations for why a business may deny an opt-out request. It also address circumstances where a consumer receives a response from a service provider that says it is not required to act on an opt-out request.
- Right to know. The FAQs discuss a consumer’s right to know what personal information is collected, used, shared, or sold, and clarifies what consumers should do to submit requests to know, how long a business may take to respond, and what steps should be taken if a business requests more information, denies a request to know, or claims to be a service provider that is not required to respond.
- Required notices. The FAQs outline the disclosures that businesses must provide - i.e., the “notice at collection” and privacy policy. It also discusses the common places where notices at collection and privacy policies are located.
- Request to delete. The FAQs address several questions related to consumers’ right to delete personal information, including how to submit a request to delete, businesses’ responses to and denials of requests to delete, and why a debt collector may make an attempt to collect a debt or a credit reporting agency may provide credit information even after a request to delete has been made.
- Right to non-discrimination. Consumers are reminded that a business “cannot deny goods or services, charge. . .a different price, or provide a different level or quality of goods or services just because [a consumer] exercised [his or her] rights under the CCPA.”
- Data brokers. The FAQs set forth the definition of a data broker under California law and outline steps for consumers interested in finding data brokers that collect and sell personal information, as well as measures consumers can take to opt-out of the sale of certain personal information.
Colorado amends and extends executive order relating to evictions
On July 12, the Colorado governor issued Executive Order 2020 134, which amends and extends Executive Order 2020 101, which imposed limitations on certain evictions to provide relief to tenants affected by Covid-19. Among other changes, the amendments require landlords to provide tenants with 30 days’ notice of any default for nonpayment of rent occurring on or after March 10, during which time the tenant has a one-time opportunity to cure the default. Municipalities and other local jurisdictions are encouraged to suspend limitations on, among other things, the number of unrelated persons that can live in a single household to enable homeowners to provide rooms to those in need of housing. Executive Order 2020 101 is extended until 30 days from July 12, 2020, unless otherwise extended.
Pennsylvania governor authorizes state agencies to conduct remote administrative proceedings
On July 10, the Pennsylvania governor signed an executive order authorizing state agencies to conduct administrative proceedings remotely. State executive and independent agencies are authorized to (i) limit in-person access to administrative proceedings to protect the health and safety of agency personnel and members of the public and (ii) use video, telephonic, or other online conferencing equipment or services to conduct administrative hearings without the consent of the parties, at the discretion of the presiding officer or hearing examiner. The agencies must establish procedures for conducting in-person, video, and telephonic administrative hearings and publish them on the agency webpage. The order will remain in effect until the disaster emergency expires or is terminated.