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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.
Indiana regulator issues branch closure and MLO work location guidance
On March 20, the Indiana Department of Financial Institutions confirmed that because it does not require licenses for mortgage branch locations or require a licensee to work from a specific branch, there are no restrictions on an individual mortgage loan originator (MLO) from working from a home office.
Montana urges credit unions to work with affected members
On March 20, the Montana Division of Banking and Financial Services issued guidance urging credit unions to work with members and communities affected by Covid-19. Efforts include, among other things, waiving fees, increasing ATM cash withdrawal limits, easing restrictions on cashing checks, easing credit terms for new loans, offering or expanding payday alternative loan programs, increasing credit card limits, and offering payment accommodations to assist members having payment difficulty. The guidance also noted: (i) that “prudent efforts” to modify loan terms would not be subject to examiner criticism, as long as the efforts are documented; (ii) that the Division would work with credit unions to reduce burden when scheduling examinations and inspections, and utilize off-site reviews; (iii) that credit unions should inform the Division of branch or office closures; and (iv) that attendance via electronic communications would constitute in-person attendance at board, committee, and annual meetings.
Washington DFI promotes mortgage borrower assistance
On March 20, the Washington Department of Financial Institutions (DFI) issued guidance urging mortgage servicers to work with mortgage borrowers who are being impacted by Covid-19. The DFI suggests a number of ways in which servicers can help including, among other things, (i) mortgage payment forbearance; (ii) not reporting late payments to credit rating agencies; (iii) an additional 90-day grace period to complete trial loan modifications; (iv) waiving late payment fees; (v) suspending foreclosures for 90 days; and (vi) proactively communicating with borrowers regarding available assistance options. The DFI also provides additional Covid-19 resources on its website here.
Texas regulator issues MLO work location guidance
On March 20, the Texas Department of Savings and Mortgage Lending issued a statement temporarily suspending any requirement that a physical office of a licensed mortgage entity be open to the public during posted normal business hours. Additionally, licensed MLOs may work from home or another remote location, as long as (i) strict security of information is maintained; (ii) all physical business records are kept at a licensed office; and (iii) consumers are not allowed to go to the MLO’s home.
California Dept. of Real Estate issues Covid-19 licensing FAQs
On March 20, the California Department of Real Estate issued Covid-19 FAQs for licensing and business practices. The FAQs confirm that DRE has cancelled all salesperson and broker license exams through April 30. However, DRE will not extend expiration dates or deadlines for licensees, or waiving fees for late submissions. The FAQs also address the process for rescheduling exams and license renewals. The FAQs note that while the DRE’s offices are closed until further notice, the DRE is still operational by phone, eLicensing, and mail, and indicates further questions and responses regarding business practices will be provided in the future.
Arkansas Securities Dept. issues Covid-19 corporate finance filings guidance
On March 20, the Arkansas Securities Department issued guidance for corporate finance filings in light of Covid-19. The guidance provides specific directions on making electronic filings. This interim guidance is in effect from March 23, 2020 through April 16, 2020 but is subject to change or withdrawal.
Virginia regulator requires electronic filings
On March 19, the State Corporation Commission issued a news release and order directing all business with the Commission to be handled through electronic filing systems, email, or by telephone during the current national Covid-19 health emergency. In addition, the Clerk’s Office will not be open to the public for in-person visits (although drop-offs are permitted) but will continue to receive and process documents, pleadings, and filings as required by law and the Commission’s rules. The order advises that the emergency directives will remain in effect until May 15, 2020 unless such date is extended by a Commission’s Order.
Indiana governor issues stay at home order
On March 24, the Indiana governor issued a Stay at Home Order, for all residents except for those leaving their homes or residences for essential activities, essential governmental functions, or to participate in essential business and operations. Essential business and operations include financial and insurance institutions.
Indiana secretary of state issues work at home guidance for licensees
On March 24, the Indiana secretary of state, Securities Division, issued a Compliance Alert to all licensed loan brokers and collection agencies. The Division encouraged licensees to instruct their employees to work from home and refrain from any in-person meetings whenever possible, and noted that relevant state laws do not prevent individuals of licensed entities from working from their personal residences. The alert also noted that the commissioner would not consider a temporary arrangement where an employee works from home during the COVID-19 outbreak to require licensure as a branch office—provided certain conditions were met—including for proper handling of personal information.