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Massachusetts Division of Banks issues guidance to mutual institutions on annual meetings
On June 12, the Massachusetts Office of Consumer Affairs and Business Regulation, Division of Banks, issued industry guidance regarding annual meetings for Massachusetts state-chartered mutual banks and subsidiary banks of a Massachusetts mutual holding company. Mutual institutions that have not yet held their annual meeting this year may use remote communications to conduct the annual meeting virtually or as a hybrid meeting that includes limited in-person attendance of depositors or corporators, provided certain requirements are met. Alternatively, such mutual institutions may postpone an in-person annual meeting until after the state of emergency has ended. Mutual institutions that elect to offer remote annual meetings must comply with certain requirements in the guidance.
New York adopts language access requirements for debt collectors
Recently, the New York Department of Consumer Affairs (Department) adopted language access amendments to the state’s debt collection rules. The Department published the proposed rules on March 5, and held a public hearing on April 10. The new rules, among other things, require debt collectors to (i) detail in debt validation notices and on any publically maintained websites, the availability of language access services provided by the collector and a statement that a translation of commonly-used debt collection terms is available in multiple languages on the Department’s website; (ii) request and retain, to the extent reasonably possible, a record of the language preference of each consumer from whom the collector attempts to collect a debt; and (iii) maintain a report that details the number of consumer accounts the collector attempted to collect a debt on in a language other than English. The amendments also prohibit debt collectors from (i) providing false, inaccurate, or incomplete translations to a consumer in the course of collecting a debt; and (ii) misrepresenting or omitting a language preference when returning, selling, or referring for litigation a consumer account, when the debt collector is aware of the preference. The new rules are effective June 27.
Louisiana allows financial institutions to use e-signatures
On June 9, the Louisiana governor signed HB 722, which provides that “[e]lectronic signatures used in transactions by and with financial institutions are enforceable to the full extent of the law.” Specifically, HB 722 states that financial institutions may submit evidence in electronic signature disputes proving that the purported signer’s electronic signature is valid and enforceable, including evidence showing that the purported signer (i) “received a direct or indirect benefit or value from the transaction, such as the deposit of funds into the purported signer’s preexisting account with the financial institution;” (ii) received loan proceeds; or (iii) paid a debt. The act takes effect August 1.
Texas Office of Consumer Credit updates guidance for regulated lenders
On June 12, the Texas Office of the Consumer Credit Commissioner issued updated guidance for regulated lenders navigating the Covid-19 crisis. The guidance: (1) addresses the June 1 due date for filing annual reports; (2) encourages lenders to work with consumers, including by working out modifications to assist with payments, waiving fees and charges, suspending charged-off accounts, and suspending repossessions of collateral or foreclosure of real property, among other things; (3) reminds lenders of legal requirements for using electronic signatures; and (4) permits lenders to conduct regulated lending activity from unlicensed locations, subject to certain conditions. The guidance is in effect through July 31, 2020, unless withdrawn or revised
Texas Office of Consumer Credit updates guidance urging motor vehicle sales finance licensees to work with borrowers
On June 12, the Texas Office of the Consumer Credit Commissioner issued an updated advisory bulletin urging motor vehicle sales finance licenses to work with consumers during the Covid-19 crisis (previously covered here and here). Among other measures, the regulator urged licensees to increase consumer communication, work out modifications, waive certain charges, and suspend repossessions. The guidance is in effect through July 31, 2020, unless withdrawn or revised
New Mexico extends authorization for remote notarization
On June 11, the New Mexico governor issued Executive Order 2020-039, which extends Executive Order 2020-015, previously covered here, to continue to permit notarial acts conducted through audio-visual technology, provided certain requirements are met.
Michigan governor extends eviction moratorium
On June 11, the Michigan governor issued Executive Order 2020-118, which extends the state’s eviction moratorium, previously covered here, through June 30. During this period, a person may not be removed or excluded from leased residential premises or residential premises held under a forfeited executory contract, subject to certain exceptions. The executive order also stays any statutory limits on Michigan courts’ ability to adjourn any proceedings, toll any redemption periods or limitations periods, or extend any deadlines until 30 days after the restrictions on eviction expire.
Colorado regulator reminds real estate businesses of business restrictions
On June 11, the Colorado Department of Regulatory Agencies (DORA) issued a reminder regarding the Safer at Home guidance for real estate businesses. In light of the various sources of guidance and versions of public health orders, DORA advises that real estate businesses and professionals review the Safer at Home: Additional Guidance for Real Estate Brokers & Servicers document, which responds to frequently asked questions related to real estate services.
New York Superintendent of Financial Services issues order to assist servicers affected by Covid-19
On June 11, the New York Superintendent of Financial Services issued an order extending the deadline for servicers to meet certain obligations under the updated Servicing Mortgage Loans: Business Conduct Rules (N.Y. Comp. Codes R. & Regs. tit. 3, § 419 et seq.). Specifically, for servicers unable to provide a periodic statement that is compliant with the revised regulations, the order extends the compliance date for a period of 60 days from June 15 to August 14 (extension period). Servicers that cannot comply by June 15 must provide a notice on their website advising consumers that they will be entitled to receive the periodic statement on or shortly after August 14. However, the order notes that servicers that are able to comply with the periodic statement requirements by June 15 should do so as required. The order does not relieve servicers from any obligation to issue a periodic statement under TILA or from ensuring that borrowers receive an accurate accounting of their mortgage loan during the extension eriod.
Kansas extends remote work guidance for certain licensees
On June 11, the Kansas Office of the State Bank Commissioner extended its remote work guidance, previously covered here, for mortgage companies, mortgage loan originators, supervised loan licensees, credit services organizations, money transmitters, and credit notification registrants. Licensed or registered individuals and entities are permitted to work from their residences or a company designated location, provided certain requirements are met, through July 15, 2020.