InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
New Jersey issues Bulletin No. 20-04 to address the disruption resulting from Covid-19
On March 19, the Commissioner of the Department of Banking and Insurance (Department) signed Bulletin No. 20-04 encouraging regulated entities and individuals to take the following actions, consistent with safe and sound banking practices: (i) relaxing due dates for loan payments (of all types, including mortgage, commercial, student, and other consumer loans); (ii) extending grace periods; (iii) modifying terms on existing loans; (iv) easing credit card limits; (v) extending new credit; (vi) waiving late fees and other fees; (vii) allowing customers to defer or skip payments; and (viii) delaying the submission of delinquency notices to credit bureaus.
Michigan directs licensees to provide Covid-19 response summary by March 20
On March 18, the Michigan Department of Insurance and Financial Services circulated a notice to all Michigan consumer finance licensees and registrants requiring them to provide a summary of the actions that they have taken in response to the Covid-19 pandemic. The notice provides a series of questions for licensees and registrants to include in their summaries. The deadline for submitting the summary is 5:00 p.m. on March 20 (slightly more than 48 hours from the issuance of the notice). The summary must be submitted via email to DIFS-OCFInquiriesandInfo@michigan.gov.
However, we understand from DIFS personnel that an in-depth response is not expected, and that the agency is primarily concerned with understanding licensees’ and registrants’ plans so that they can better address related inquiries from consumers.
Alabama Superintendent of Banks issues Covid-19 guidance
On March 16, the Alabama Superintendent of Banks issued a statement with steps that financial institutions can take when working with Covid-19-affected customers and communities, including waiving certain fees, increasing ATM daily cash withdrawal limits, and easing restrictions on cashing out-of-state and non-customer checks. The statement also provides guidance on financial condition review, supervisory responses, regulatory relief, regulatory reporting requirements, and alternative service options for consumers.
Minnesota bill to address negative credit reports and student loans
On February 19, the Minnesota House Health and Human Services Finance and Policy Committee introduced a bill that would require the Commissioner of Commerce to negotiate with credit reporting bureaus to waive negative credit reports, and to negotiate a federal waiver for federally guaranteed student loans for persons under isolation or quarantine.
On March 9, the Minnesota Senate Health and Human Services Finance and Policy Committee introduced a bill that would accomplish the same objectives.
CFPB releases HMDA FAQs
On March 6, the CFPB released seven updated FAQs to assist reporting institutions in complying with HMDA and Regulation C. As previously covered by InfoBytes, the Federal Financial Institutions Examinations Council’s issued the 2020 edition of the “Guide to HMDA Reporting: Getting It Right!” in February. The FAQs offer guidance for reporting the following data points: (i) universal loan identifier (ULI); (ii) legal entity identifier (LEI); (iii) ethnicity, race, and sex; (iv) discount points; and (v) construction and construction/permanent transactions. Highlights are listed below:
- Regulation C does not “require a financial institution to provide the ULI on loan documents.” It requires a financial institution to “collect, record, and report a ULI for applications for covered loans that is receives, covered loans that it originates, and covered loans that it purchases for each calendar year.”
- “For applications taken by telephone…a person collecting the race or ethnicity information [is required] to orally state the information in the collection form unless the information pertains uniquely to applications taken in writing, for example, the italicized language in the sample data collection form.”
- “[A] financial institution should not correct the race or ethnicity as reported by the applicant, even if the applicant has entered clearly incorrect or inappropriate information.”
- “Where a natural person applicant does not provide ethnicity, race, or sex information for a mail, internet, or telephone application, and a financial institution does not have an opportunity to collect this information during an in person meeting during the application process, the financial institution may report either that the information was not collected on the basis of visual observation or surname (code 2) or that the requirement to report this data field is not applicable (code 3).”
- “For construction and permanent loans where the construction loan is a separate transaction, the financial institution reports only the loan term of the permanent loan. Because the separate construction loan is designed to be replaced by permanent financing, it is excluded as temporary financing.”
Colorado attorney general requests pause of debt collection efforts
On March 18, the Colorado attorney general released a statement urging student loan servicers, creditors, and debt collectors to discontinue mandatory debt collection efforts for consumers who experience financial distress due to Covid-19. The statement further encourages these providers to work proactively to assist such consumers, and states that the attorney general’s office will “continue to evaluate and investigate relevant legal avenues” to protect borrowers during the crisis.
Maine Bureau of Financial Institution issues guidance on working with customers affected by Covid-19 and regulatory assistance
On March 18, the Maine Department of Professional and Financial Regulation, Bureau of Financial Institutions, issued a statement on financial institutions working with customers and communities affected by Covid-19. Financial institutions are encouraged to work with affected customers and communities including, among other things, by waiving certain fees (e.g., ATM, overdraft, late payment fees), increasing ATM daily cash withdrawal limits, easing restrictions on cashing out-of-state and non-customer checks, and easing terms for new loans to affected borrowers. Prudent efforts to modify the terms on existing loans for affected customers will not be subject to examiner criticism, and generally, the bureau supports and will not criticize efforts to accommodate customers in a safe and sound manner. The guidance also addresses: (i) financial condition review, supervisory response, and regulatory relief; (ii) regulatory reporting requirements; and (iii) closure of branch locations and offices and providing alternative service options.
Maine Bureau of Consumer Credit Protection provides guidance to MLOs
On March 18, the Maine Bureau of Consumer Credit Protection provided interim guidance to MLOs, allowing employees to work from home as long as data security provisions are in place, and physical business records are stored only at the licensed main office. The guidance will be effective through May 1, 2020.
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.
CFPB provides consumers with Covid-19 guidance
The CFPB is maintaining a website with steps consumers can take to protect themselves from the financial impact of Covid-19. The website includes guidance on steps to take in the event of difficulty meeting mortgage payment obligations, working with housing counselors, questions relating to credit reporting, and other resources.