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FHFA extends loan processing flexibilities offered by Fannie Mae and Freddie Mac
On May 5, FHFA announced that it extended several loan processing flexibilities offered by Fannie Mae and Freddie Mac to assist borrowers during the Covid-19 emergency. The flexibilities include permitting alternative appraisals for certain loans, alternative methods for verifying employment before loan closing, flexibilities for providing documentation related to renovation draws, and expanding the use of power of attorney and remote online notarization. The flexibilities are extended until at least June 30.
North Carolina passes Covid-19 Recovery Act
On May 5, the North Carolina governor signed the Covid-19 Recovery Act, which provides certain relief to North Carolinians in response to the Covid-19 crisis. Among other things, the legislation authorizes emergency video notarization and video witnessing during the state of emergency. The legislation also provides limited immunity to essential businesses from civil liability for claims alleged to have been caused by the Covid-19 pandemic. Essential businesses include financial and insurance institutions, as determined by Executive Order 121, and any business that the Department of Revenue determines is essential.
Idaho establishes Idaho Rebound cash grants for small businesses
On May 5, the Idaho governor issued an executive order establishing Idaho Rebound cash grants for Idaho-domiciled small businesses. Among other things, businesses eligible for the grants must have had between 1 and 50 employees as of February 15, 2020; have suffered a qualified business interruption; and not have received a Paycheck Protection Program loan or an Economic Injury Disaster Loan Emergency Advance, or received less than $10,000 in such funds.
Regulators modify liquidity coverage rule for MMM and PPP participants
On May 5, the Federal Reserve Board, the OCC, and the FDIC announced an interim final rule that modifies the agencies’ Liquidity Coverage Ratio (LCR) rule to support participation in the Federal Reserve's Money Market Mutual Fund Liquidity Facility and the Paycheck Protection Program Liquidity Facility (previously covered by InfoBytes here and here). The LCR rule requires large banks to hold a certain amount of “high-quality liquid assets” in order to meet their short-term liquidity needs. The interim final rule modifies the agencies’ capital rules to neutralize the effects of participation. The rule is effective immediately and comments will be accepted within 30 days of publication in the Federal Register.
Alabama Securities Commission extends relief provided to registrants affected by Covid-19
The Alabama Securities Commission has extended a temporary order providing relief to registrants affected by Covid-19 to May 15, 2020, in light of the Alabama governor’s issuance of the April 28, 2020 “Safer at Home” order. The temporary order was originally covered here.
SEC issues Covid-19-related FAQs regarding the filing of reports
On May 4, the Securities and Exchange Commission issued FAQs responding to questions regarding disclosures that take advantage of extended filing deadlines under a March 25, 2020 Covid-19 Order and Form S-3. The issuances notes that staff may supplement or amend the responses to the FAQs.
Missouri extends various executive orders issued in response to Covid-19
On May 4, the Missouri governor issued Executive Order 20-10, which extends Executive Orders 20-04 (authorizing specific departments to waive or suspend statutory requirements and administrative rules), 20-05 (relating to the restaurant industry), 20-06 (relating to organized militia), and 20-08 (relating to remote notarization), issued in response to Covid-19. Executive Order 20-04 was previously covered here and Executive Order 20-08 was previously covered here.
District of Columbia amends emergency Covid-19 response legislation to add reporting obligations for mortgage deferments
On May 4, the District of Columbia amended the Covid-19 Response Supplemental Emergency Amendment Act (previously covered here) to, among other things, include mortgage lenders as covered entities and require lenders to provide the commissioner of the Department of Insurance, Securities and Banking with lists of all approved mortgage deferments in 15-day intervals.
Florida regulator reminds money transmitters of license renewal extensions
On May 4, the Florida Office of Financial Regulation reminded Money Transmitter Part II licensees that the deadline to renew licenses has been extended to June 1, 2020 (previously covered here). Licensees that fail to renew by June 1 will be considered inactive and will need to pay an additional fee to reactivate the license. Inactive licenses not renewed by July 30, 2020 will expire.
State AGs urge industry group develop better tools to fight illegal robocalls
On May 4, the National Association of Attorneys General published a letter to US Telecom, an industry group of telecommunications providers, and the Industry Traceback Group, an industry group dedicated to assist with the tracing of illegal robocalls. The letter noted that state attorneys general intend to intensify enforcement efforts against illegal robocallers, and urged US Telecom and the Industry Traceback Group to expand capabilities related to tracebacks in anticipation of growth in the need for data analysis and the number of civil investigative demands and subpoenas that will be issued directly to the Industry Traceback Group. The need for action has been tied to an increase in Covid-19 related robocalls.