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Minnesota issues executive order providing relief to small businesses during Covid-19
On March 23, the Minnesota governor issued an executive order providing relief to small businesses during the Covid-19 pandemic. The order directs the Department of Employment and Economic Development to develop a forgivable loan program to award grants to nonprofit corporations to fund forgivable loans to small businesses. For a business to participate, it must demonstrate to the lender that it was “directly and adversely affected” by Covid-19. The order provides additional information on the administration and parameters of the loan program, such as reporting requirements for participating lenders and loan forgiveness.
California Department of Business Oversight issues guidance to permit licensees to work from home
On March 22, the California Department of Business Oversight (Department) issued guidance to escrow agents, finance lenders and servicers, student loan servicers, residential mortgage lenders and servicers, and mortgage loan originators in light of Covid-19 permitting employees of licensees to conduct activities from home that normally would require a branch license, provided that appropriate measures are taken to protect consumers and their data. Further, the Department will not criticize student loan servicers or licensees sponsoring MLOs who permit their respective employees to work from home, provided that certain data security and other conditions are met. Escrow Law licensees may also follow this guidance, however the licensees must still comply with the Fidelity Corporation or the licensee’s surety bond. Additionally, licensees are encouraged to assist consumers including through, among other things, offering payment accommodations.
Iowa suspends foreclosures, declares state of emergency
On March 22, the governor of Iowa proclaimed a state of emergency throughout Iowa. The proclamation prohibits the commencement of new foreclosures and suspends ongoing foreclosure proceedings on residential, commercial, and agricultural real property in Iowa, authorizes remote notarial acts, and provides a wide range of regulatory licensing relief.
Iowa issues remote notarization guidance
On March 22, Iowa issued temporary remote notarization guidance and FAQs to assist notaries public in working remotely during the Covid-19 crisis. A set of more-stringent provisions is scheduled to take effect on July 1, 2020.
Oregon governor calls for moratorium on residential evictions
On March 22, Oregon Governor Kate Brown issued an executive order placing a moratorium on residential evictions for reason of nonpayment during the Covid-19 crisis. The order called the moratorium "both a moral and a public health imperative" for those unable to make payments during the pandemic, and stipulated that evictions will be put on hold for a 90-day grace period.
Iowa suspends foreclosures, declares state of emergency
On March 22, the governor of Iowa proclaimed a state of emergency throughout Iowa. The proclamation prohibits the commencement of new foreclosures and suspends ongoing foreclosure proceedings on residential, commercial, and agricultural real property in Iowa, authorizes remote notarial acts, and provides a wide range of regulatory licensing relief.
South Carolina regulator issues MLO work location guidance
On March 13, 2020, the South Carolina State Board of Financial Institutions, Consumer Finance Division (division) released guidance for mortgage origination and servicing companies regarding working remotely due to Covid-19. The division’s interim guidance allows licensed mortgage loan originators (MLO) to work from home provided that certain criteria are met including (i) the company establishes temporary supervisory policies and procedures; (ii) the MLO has secure access to the company’s origination system; (iii) the security of the MLO’s computer is maintained; and (iv) the MLO does not keep physical company records at the remote location.
Minnesota Commerce Department issues guidance to industrial loan and thrift companies
On March 17, the Minnesota Commerce Department issued a letter to Minnesota industrial loan and thrift companies related to issues and questions arising from the Covid-19 outbreak. The letter notes that companies that choose to close a branch such that it is not open for business or examination purposes must notify the Department. The notice must include certain information, such as when the company expects to reopen the branch. The letter also provides that if a branch is opening and closing loans, employees can work from home to perform tasks, but may not close loans from an unlicensed location.
Kentucky Department of Financial Institutions issues guidance on changes in operations
The Kentucky Department of Financial Institutions issued a statement recommending Kentucky chartered financial institutions to work with customers affected by Covid-19 to meet their financial needs, including waiving overdraft fees, restructuring existing loans, and extending loan payment terms. The statement provides that any bank or credit union that significantly alters its in-person operations should notify the Director of the Division of Depository Institutions by email.
New York regulator issues licensee work location guidance
On March 12, the Superintendent of the New York State Department of Financial Services ordered temporary relief to New York certain financial institutions to temporarily relocate or close branch offices or places of business if adversely affected by Covid-19, “without complying with the prior notice or application requirements of the Banking Law or Financial Services Law.” However, licensed individuals may not conduct licensable activities in person with members of the public at or from their personal residence. Authorization was also given for 45-day extensions to filing deadlines for certain certifications and annual and quarterly filings.