InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
North Dakota Dept. of Financial Institutions issues Covid-19 guidance
On March 5, the North Dakota Department of Financial Institutions issued guidance alerting regulated entities to review its preparedness plan and alert the Department if the entity’s hours change or are adjusted as a result of Covid-19. The Department also noted that it will allows individuals to work remotely without notification as long as the locations is not held open to the public as a place of business. Separately, on March 16, the Department alerted the public that it will post notifications of the reduction of hours and/or services at branch locations.
New Hampshire Banking Dept. issues work from home guidance
On March 13, the New Hampshire Banking Department (NHBD) issued a memorandum to licensed financial services institutions: (i) encouraging such institutions to work constructively with New Hampshire consumers who may experience difficulties in light of the economic disruptions caused by Covid-19; and (ii) providing guidance relating to mortgage loan originators working from home or other locations so long as certain conditions are met. On March 16, the NHBD issued further clarification of the March 13 guidance concerning branch closings as well as an FAQ.
Nevada Dept. of Business and Industry issues work from home guidance
On March 13, the Nevada Department of Business and Industry, Division of Mortgage Lending, issued guidance to temporarily allow licensed mortgage loan originators to work from home, including persons associated with principal office locations, branch office locations, and other licensed locations located in other states.
Nebraska Dept. of Banking and Finance issues MLO guidance
On March 12, the Nebraska Department of Banking and Finance (NBFD) issued guidance on temporary branch locations outside of the NMLS upon notification. Pursuant to the guidance, licensed and sponsored mortgage loan originators may temporarily work from an unlicensed branch, including a home office, provided certain conditions are met.
On March 16, the NBFD issued guidance on annual meetings of credit union members, which are required by the Nebraska Credit Union Act. Pursuant to the guidance, Nebraska state-chartered credit unions may postpone their annual meetings of members if the meetings are to be held during the months of March, April, May, or June 2020. The board of directors of a credit union may reschedule the postponed annual meeting so that it will be held in July 2020 or August 2020 and provide members with thirty (30) days prior written or electronic notice of the rescheduled meetings. Records related to the rescheduling of the annual meeting must be kept for the Department’s review. All other provisions of the Nebraska Credit Union Act will remain in place.
On March 17, the NBFD summarized regulatory assistance that it is considering until the state of emergency has lifted. For example, the guidance suggests efforts that financial institutions may take when working with customers, such as allowing shortened hours, reducing customer contact, updating signage relative to hours and locations, allowing customers to defer, skip payments, or extend payment due dates, etc. The guidance also summarizes the NBFD’s position with respect to financial condition review, supervisory response, regulatory relief, regulatory reporting requirements, and alternative service options for customers. The guidance provides additional information on examinations, digital applications, and audits.
Montana Division of Banking and Financial Institutions issues work from home guidance
The Montana Division of Banking and Financial Institutions has issued guidance temporarily allowing licensed mortgage loan originators to work from home, whether located in Montana or another state, even if the home is not a licensed branch with some conditions.
Mississippi Dept. of Banking and Consumer Finance issues Covid-19 guidance
On March 14, the Mississippi Department of Banking and Consumer Finance (DBCF) issued memoranda to Consumer Finance Licensees and Mortgage Licensees that includes general guidance to the industry and “outline[s] flexibility in DBCF processes in response to the COVID-19 event.” Among other things, the guidance advises licensees to periodically review related risk management plans (specifically continuity and pandemic plans) to ensure continuity of products and services with minimal disruption. It also advises that, if “necessary and appropriate,” licensees may relocate offices or have employees work from home. Additionally, effective March 13, the DBCF will discontinue onsite examinations. During this time, DBCF will be available to assist the industry and consumers via telephone and email communication.
On March 16, the DBCF issued interim guidance allowing mortgage loan originators to temporarily work from home, whether located in Mississippi or another state, even if the home is not a licensed branch provided certain requirements are met.
Maryland Commissioner of Financial Regulation issues Covid-19 guidance
On March 13, the Maryland Commissioner of Financial Regulation issued a bulletin advising that regulated entities should have a comprehensive disaster recovery plan in place that identifies how they will respond to various disasters and emergencies. The bulletin also identifies questions received from regulated entities and the Commissioner’s responses. Specifically, the Commissioner responded to questions regarding working from unlicensed locations, preferred methods of communication with the Commissioner, and notification to the Commissioner if a licensed business is closed because of mass quarantines during any part of an examination.
Massachusetts Division of Banks reminds businesses about continuity plans
On March 11, the Massachusetts Division of Banks issued a reminder that licensees should have in place business continuity plans in relation to Covid-19 and its potential impact on the delivery of financial services. During a period of quarantine or social distancing in homes due to Covid-19, the Division does not require mortgage loan originators’ homes to be licensed as a branch as long as they do not advertise the home as an office and do not meet consumers at their home. The Division would also permit all other licensees to work from home, provided certain conditions are met.
Kansas Office of the State Bank Commissioner issues work from home guidance
On March 16, the Kansas Office of the State Bank Commissioner (OSBC) issued temporary guidance allowing licensed mortgage companies, mortgage loan originators, supervised loan licensees, credit services organizations, money transmitters, credit notification registrants and their employees to work remotely due to the Covid-19 crisis. Licensed or registered individuals and entities will be allowed to work from their residences or a company designated location--even if the residence or location is not a licensed or registered branch location--providing they have temporary policies, procedures, and a plan for supervision in place. OSBC also set forth best practices for remote work to ensure that security of information is maintained.
Connecticut Dept. of Banking issues work from home guidance
On March 9, the Connecticut Department of Banking issued a memorandum indicating that individuals who work for Consumer Credit Licensees currently licensed in Connecticut may temporarily work from home even though such home location is not currently licensed by as a branch office, so long as certain criteria are met.