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Washington securities regulator provides relief to franchisors
On April 8, the Washington Department of Financial Institutions, Securities Division, announced that it would reduce filing fees for franchisors who are unable to timely submit audited financial statements in their year-end disclosure documents due to Covid-19. Fees for the registration of a franchisor that has not included audited financial statements for the most recent year in their required year end franchise disclosure documents are reduced from $600 to $100 in recognition that Covid-19 may impact the ability to obtain or finalize audited financial statements.
Colorado banking regulator will not criticize “any” efforts to adjust loan terms
On April 8, the Colorado Division of Banking issued guidance to state-chartered banks encouraging them to take measures to assist borrowers impacted by Covid-19, including halting foreclosures and providing a 90 day deferment on payment for all consumer loans. The division noted that while state-chartered banks are not required to comply with these requests, any efforts to modify existing loan terms will not be subject to examiner criticism.
Maine issues executive orders relating to remote notarizations
On April 8, the Maine governor issued an executive order permitting remote notarization, provided that certain requirements set forth in the order are met. On April 24, the Maine governor issued a subsequent executive order that extends the time period required for certain steps in the remote notarization process. The executive orders will remain in effect until 30 days after the termination of the Covid-19 state of emergency, unless amended or rescinded at an earlier time.
Ohio regulator provides guidance for credit unions
On April 8, the Ohio Department of Commerce, Division of Financial Institutions issued updated guidance for credit union operations during Covid-19. Among other things, the guidance addresses accommodations for annual and board meetings, branch closures, filing deadlines for call reports, liquidity challenges, and conducting supervisory examinations.
Michigan governor issues temporary order enabling remote notarization
On April 8, Michigan Governor Gretchen Whitmer issued an executive order enabling remote notarization in response to the Covid-19 crisis. Whitmer’s order allows for the use of electronic signatures, remote notarization, remote witnesses and attestations, and remote visitations in necessary transactions and interactions. The order took effect immediately and will be in place through May 6.
Delaware directs check sales and money transmitter licensees to use NMLS
The Delaware Office of the State Bank Commissioner issued a directive that, beginning on April 15, all Chapter 23, Sale of Checks and Transmission of Money Licensees are advised to use the Nationwide Mortgage Licensing System for applications, renewals, surrenders and amendments.
California DBO sues student loan servicer to compel production of borrower records
On April 2, the California Department of Business Oversight (DBO) announced a lawsuit against one of the nation’s largest student loan servicers seeking an order requiring the production of documents related to the servicer’s administration of the Teacher Education Assistance for College and Higher Education (TEACH) grant program. According to the press release, DBO began an examination in January under the California Student Loan Servicing Act (Act) to determine whether the licensed servicer is improperly converting California teachers’ TEACH grants into loans with back interest. In its complaint, DBO states that the servicer’s refusal to produce records concerning its “handling of the TEACH program reconsideration process” is based on arguments that California law is preempted by the federal Higher Education Act, and that student borrower records are “legally owned” by the Department of Education and cannot be released under the federal Privacy Act of 1974. Because of the servicer’s refusal to produce the records, DBO claims that the servicer “has failed to satisfy its statutory duties,” and has “unduly restrained” DBO’s ability to both oversee the administration of student loan servicing in the state and protect California student loan borrowers. DBO seeks a preliminary and permanent injunction, as well as a declaratory judgment against the servicer to compel compliance with the Act.
California’s attorney general advises tenants of new rights
On April 7, the California attorney general issued updated guidance for California tenants that encourages them to take control of their rights under the state Judicial Council’s April 6 emergency eviction rule. The guidance alerts tenants that nothing in the emergency rule stops landlords from filing new eviction cases but it prevents them from proceeding for 90 days after the ongoing state of emergency is lifted. It also encourages tenants to research local eviction moratoriums that may provide additional protections.
New York regulator issues guidance to insurance companies on complying with notice obligations
On April 7, the New York State Department of Financial Services issued guidance to state-regulated insurance companies and fraternal benefit societies, indicating that these insurers may comply with state law notice requirements by emailing notices to consumers for which the insurers have an email address. Insurers do not need to obtain prior consent of the consumers to receive such notices via email. The department also urged insurers to disseminate notices by supplemental means, such as social media, and maintain records of their communications with consumers.
New York regulator urges student loan servicers to support troubled borrowers
On April 7, the New York State Department of Financial Services issued guidance to state-regulated student loan servicers urging them to “do their part” to alleviate hardships caused by Covid-19. The department stated that student loan servicers “should,” for a period of 90 days, waive late fees, provide forbearance, refrain from sending defaulted loans to debt collectors, and report any missed payments subject to forbearance as “current” to credit reporting agencies.