Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
On March 23, the Securities and Business Investments Division of the State of Connecticut Department of Banking issued interim guidance permitting investment company filers to make filings and submit payments electronically “for the foreseeable future.” The guidance also notes that the Division will be working remotely, which may cause delays in processing filings.
On March 23, the Kansas governor ordered that no bank or financial entity lending in Kansas could foreclosure on a residential property if all defaults or violations of the mortgage “are substantially caused by a financial hardship resulting from the Covid-19 pandemic.” In addition, the order precludes landlords from evicting residential tenants when all violations or defaults of the rental agreement are caused by financial hardship resulting from Covid-19. The order does not prohibit the continuation of evictions or foreclosures filed prior to March 23, or for foreclosures or evictions relating to borrowers or tenants who have not suffered a financial hardship resulting from Covid-19. The prohibition remains in effect until it is rescinded or the state of emergency is lifted.
On March 23, the Massachusetts governor ordered all businesses providing non-essential services to close their brick and mortar premises as of noon on March 24 and not to re-open until April 7. The order was accompanied by a list of essential services that included financial services. The Massachusetts Division of Banks confirmed via a notice that all entities chartered and licensed by the Division are considered essential services exempt from the governor’s emergency order.
Ohio Division of Financial Institutions issues FAQ for mortgage loan originators and installment lenders during Covid-19 crisis
On March 23, Ohio’s Department of Commerce Division of Financial Institutions published an FAQ pertaining to telework and other operational changes for mortgage loan originators and installment lenders during the Covid-19 crisis. Among other things, the FAQs clarify the types of activities that may be conducted remotely and the applicability of Ohio’s Stay-At-Home Order to financial institutions.
Illinois Divisions of Professional Regulation and Real Estate extend all deadlines set by Department Administrative Law Judges
On March 23, the Illinois Department of Financial and Professional Regulation, Division of Professional Regulation and Division of Real Estate, issued a general order extending all deadlines set by any Department Administrative Law Judges by 21 days from the current deadlines set.
On March 23, the chief justice of California ordered superior courts to suspend jury trials for 60 days to mitigate Covid-19 risk. The order also extends statutory deadlines for trials in civil and criminal proceedings, and permits courts to immediately adopt rules for addressing the impact of Covid-19 without the need for public comment.
On March 23, the governor of North Carolina issued an executive order prohibiting mass gatherings of 50 or more. The order does not specifically address financial institutions.
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.
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.
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.
- Melissa Klimkiewicz to discuss "Lender town hall" at the National Flood Conference webinar
- Daniel P. Stipano to discuss "BSA for BSA seasoned officers" at an NAFCU webinar
- Sherry-Maria Safchuk to discuss "The CCPA: Successes, failures, and practical considerations for compliance" at a American Bar Association webinar
- Jon David D. Langlois to discuss "LIBOR transition: Preparations for legal professionals" at a Mortgage Bankers Association webinar
- Garylene D. Javier to discuss "Navigating workplace culture in 2020" at the DC Bar Conference