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Hawaii issues stay at home order
On March 23, the Hawaii Governor issued a statewide order to stay at home and work from home starting at 12:01 AM Wednesday, March 25, 2020, through April 30, 2020. All businesses or operations not identified as federal critical infrastructure by the Cybersecurity and Infrastructure Security Agency, designated by the Director of the Hawaii emergency Management Agency, or listed in the proclamation, must cease. The proclamation permits, among others, financial institutions, including currency exchanges, consumer lenders (e.g., payday lenders, consumer installment lenders), credit unions, appraisers, title companies, financial markets, trading and futures exchanges, affiliates of financial institutions, entities that issue bonds, related financial institutions, and institutions selling financial products, to remain open.
Massachusetts Governor issues “stay at home” order
On March 23, Massachusetts Governor Baker issued a statewide emergency order requiring non-essential businesses and organizations to close as of March 24 at 12pm. Financial services, including workers needed to process and maintain systems for processing financial transactions, and workers needed to provide consumer access to banking and lending services, are considered essential services exempt from the order.
Delaware issues stay at home order
On March 22, the Delaware governor issued an order to close all non-essential businesses. The order went into effect at 8:00 AM and remains in effect until May 15, or until “the public threat is eliminated.” Businesses that provide certain financial activities are considered essential businesses that may remain open. For example, monetary authorities and businesses engaged in credit intermediation and related activities, securities commodity contracts, and other financial investment and related activities, insurance carriers and related activities, and funds, trusts, and other financial activities may remain open. An FAQ was also issued to address questions regarding non-essential closures.
Ohio issues stay at home order
On March 22, the Ohio Department of Health issued a stay home order for all persons not engaged in essential businesses and operations, which include, among others, financial and insurance institutions such as banks, currency exchanges, consumer lenders, including but not limited to pawnbrokers, consumer installment lenders and sales finance lenders, credit unions, appraisers, title companies, financial markets, trading and futures exchanges, payday lenders, affiliates of financial institutions, entities that issue bonds, related financial institutions, and institutions selling financial products. Essential businesses and operations also include insurance companies, underwriters, agents, brokers, and related insurance claims and agency services. The order became effective at 11:59 PM on March 23, 2020, and will remain in force until 11:59 PM on April 6, 2020.
California Department of Business Oversight issues guidance to financial institutions
On March 22, the California Department of Business Oversight (DBO) issued guidance to financial institutions whose customers may be suffering from loss of income or other financial hardship as a result of the Covid-19 pandemic. As directed by Governor Newsom’s Executive Order N-28-20 (previously discussed here), the DBO encourages financial institutions to adopt the following practices, among others, during the state of emergency:
- Waiving certain fees (e.g., ATM fees, overdraft fees, late payment fees, early withdrawal penalties)
- Increasing ATM daily cash withdrawal limits;
- Easing restrictions on cashing out-of-state and non-customer checks;
- Increasing credit card limits for creditworthy borrowers; and
- Offering payment accommodations, such as allowing borrowers to defer or skip some payments or extending the payment due date, which would avoid delinquencies and negative credit bureau reporting caused by Covid-19-related disruptions.
The guidance provides that prudent efforts to modify the terms on existing loans for affected customers will not be subject to examiner criticism. The guidance provides additional insight on financial condition review, supervisory response, and regulatory relief, regulatory reporting requirements, alternative service options for customers, and the permissibility of holding certain meetings (e.g., annual shareholder meetings, board of director meetings) via videoconference or teleconference.
California Department of Business Oversight issues guidance for lenders
On March 22, the California Department of Business Oversight (DBO) issued guidance directed at escrow agents, finance lenders and servicers, student loan servicers, residential mortgage lenders and servicers, and MLOs whose customers may be suffering from loss of income or other financial hardships as a result of the Covid-19 pandemic. The guidance states that the DBO will not take enforcement action against licensees for operating unlicensed branches if, during the state of emergency, employees conduct activities from home that normally would require a branch license, provided that appropriate measures are taken to protect consumers and their data. The DBO also will not criticize student loan servicers or licensees sponsoring MLOs who permit their respective employees to work from home, provided that certain conditions are met. While the foregoing applies to Escrow Law licensees, the DBO notes that it cannot modify any restrictions that may be imposed by the Fidelity Corporation or the licensee’s surety bond. The DBO offers additional recommendations to licensees, including offering payment accommodations to avoid delinquencies and negative credit bureau reporting, easing terms for new mortgage loans to affected borrowers, and exercising discretion in determining which of their services and transactions are “essential services” for the purposes of “stay-in-place” or “shelter-in-place” orders. The DBO also noted that it will not criticize any late mortgage recordation that result from the closure of a county recorder’s office due to Covid-19.
Washington Department of Financial Institutions issues notice concerning signature and notary requirements
On March 20, the Washington Department of Financial Institutions issued a notice concerning signature requirements on applications and notice filings required during the Covid-19 outbreak. The notice provides that the Securities Division requires all franchise filings to be made electronically through its online electronic filing system, and will not require “wet” signatures on filings. Where a signature is required, copies (including PDF copies) of signed documents are sufficient. Additionally, the Securities Division is waiving any notary requirements during the Covid-19 outbreak.
Washington Department of Financial Institutions urges servicers to support mortgagors
On March 20, the Washington Department of Financial Institutions issued guidance to Washington State regulated and exempt residential mortgage loan servicers regarding support for borrowers impacted by Covid-19. The guidance urges servicers to support adversely impacted mortgagors by, among other things, forbearing mortgage payments for 90 days from their due dates, refraining from reporting late payments to credit rating agencies for 90 days, offering mortgagors an additional 90-day grace period to complete loan modifications, waving late payment fees and online payment fees for 90 days, postponing foreclosures for 90 days, and proactively reaching out to mortgagors to explain the assistance being offered to mortgagors. Such services are also required to ensure that mortgagors do not experience a disruptions of services if the servicer closes its offices. The guidance notes that reasonable and prudent efforts to assist mortgagers will not be subject to examiner criticism.
Texas regulator issues MLO work from home guidance
On March 20, the Texas Department of Savings and Mortgage Lending issued a notice temporarily suspending any requirement that a physical office be open to the public during posted normal business hours. In addition, the notice provided that licensed MLOs may work from home or another remote location, whether located in Texas or another state, even if the home or remote location is not a licensed branch. However, MLOs are still subject to certain data security requirements and are prohibited from permitting consumers into the MLO’s home.
Illinois Governor issues “stay at home” order
On March 20, Illinois Governor Pritzker issued a statewide “stay at home” order, to take effect as of 5pm on March 21. Financial institutions are considered “essential businesses” and are exempt from the order.