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Louisiana Office of Financial Institutions, Securities Division, issues update on operations
On May 1, the Louisiana Office of Financial Institutions, Securities Division, issued an update regarding its current operations during the statewide “stay at home” order. In particular, (i) paper copies of registration documents and payment of related fees can be mailed to the LOFI, and certain filings can be submitted electronically; (ii) examinations are being conducted remotely using phone and email correspondence in lieu of traditional on-site examinations; (iii) licensing staff continue to process licensing and registration applications through the CRD/IARD systems; and (iv) enforcement staff are limiting in-person contacts with witnesses and regulatory partners, and are using telecommunications technology to complete tasks remotely.
Louisiana Office of Financial Institutions issues emergency declarations to non-depository entities
On May 1, the Louisiana Office of Financial Institutions issued emergency declarations for residential mortgage lenders, brokers and originators, check cashers, lenders or brokers licensed pursuant to the Louisiana Consumer Credit Law and the Louisiana Deferred Presentment and Small Loan Act, pawnbrokers, and repossession agents and bond for deed escrow agents. Such entities are granted the authority to temporarily close licensed locations within Louisiana or to temporarily close and/or relocate to another location within the state. Mortgage loan originators are permitted to work from home, whether located in Louisiana or another state, even if the home is not registered with the LOFI. The declarations also provide instructions for notifying the LOFI of a temporary location change. The declarations expire on May 15, 2020, unless renewed by further declaration of the commissioner.
Illinois Department of Financial and Professional Regulation issues guidance to credit unions regarding deferral of an appraisal or written estimate of market value
On May 1, the Illinois Department of Financial and Professional Regulation issued guidance to credit unions regarding the deferral of an appraisal or written estimate of market value to allow credit unions to continue to extend loans to households and businesses during the Covid-19 crisis. The guidance notes that the National Credit Union Administration (NCUA) Board promulgated an interim final rule allowing a federal credit union to temporarily defer certain appraisals and written estimates of market value for up to 120 days after closing when other alternatives are not available and when the appraisal or evaluation would delay the closing of the transaction, and states its intention to promulgate a substantially similar rule. Until the rule has been promulgated and finalized, the department does not intend to take adverse supervisory or enforcement action against an Illinois state-chartered credit union for deferring the appraisal or written estimate of market value for appropriate transactions up to 120 days from the date of closing, subject to certain exceptions. The guidance provides additional requirements for credit unions to follow when seeking to take advantage of this exemption.
Illinois Department of Financial and Professional Regulation announces initiative to facilitate cashing of stimulus checks
On May 1, 2020, the Illinois Department of Financial and Professional Regulation announced plans to provide new options for unbanked Illinoisans to cash their stimulus checks for free. The announcement highlights some of the banks that are willing to offer such services and provides resources that consumers can consult in connection with receiving their economic impact payments.
OCC and Federal Reserve issue joint response to question regarding market risk capital rule
On May 1, the OCC and the Federal Reserve Board issued a joint response to a public question about a capital implication under the market risk capital rule in light of current market conditions arising from the Covid-19 pandemic. The joint response notes that, in March and April of 2020, the agencies took supervisory action giving certain banks the option to apply the multiplication factor that applied as of December 31, 2019, rather than applying a higher multiplier based on the most recent exceptions.
Maine Real Estate Commission adopt emergency rule regarding sales agent examinations
On May 1, the Maine Department of Professional and Financial Regulation, Real Estate Commission, adopted an emergency rule extending the time period during which applicants for a sales agent license have to pass the sales agent examination after they successfully complete the sales agent course. The time is extended from one year to 180 days after testing sites fully reopen.
Colorado Department of Revenue issues emergency regulations regarding motor vehicle sales
On May 1, 2020, the Colorado Department of Revenue, Motor Vehicle Dealer Board, issued emergency regulations permitting licensed motor vehicle dealers to complete sales transactions of motor vehicles during Covid-19, provided that certain conditions are met.
Pennsylvania extends stay-at-home order, issues guidance for limited reopening in some counties
On May 1, the Bureau of Occupational and Professional Affairs issued a statement regarding phased reopening of Pennsylvania. For all “red’ counties, the March 19 stay-at-home order was extended until June 4, 2020. In counties designated as being in the yellow phase of reopening, most businesses, including non-essential businesses, are permitted to reopen so long as they comply with social distancing restrictions and other guidance issued by the governor’s office.
Tennessee authorizes remote shareholder meetings
On May 1, the governor of Tennessee issued Executive Order No. 32, which authorizes certain corporations to utilize remote communications for shareholder meetings. For corporations holding remote shareholder meetings, the order suspends requirements that corporations make a list of shareholders entitled to receive notice of the meeting available at the meeting, provided the list is made available on an electronic network to which shareholders are granted access.
Minnesota commissioner of commerce eases some filing and appraisal requirements
On May 1, Minnesota’s commissioner of commerce issued an order modifying certain regulatory deadlines as set forth in Regulatory Guidance 20-25 and 20-26 during the Covid-19 pandemic. Guidance 20-25 extends the deadline for certain insurers to file annual reports due on or before May 1, 2020 until June 1, 2020. Guidance 20-26 allows banks that acquire “other real estate” as defined by Minn. Stat. § 48.21 to defer the requirement to obtain an appraisal for up to 120 days.