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  • Idaho regulator provides updates on agency operations

    State Issues

    On March 26, the Idaho Department of Finance Consumer Finance Bureau (Department) issued updated guidance to its registrants and licensees regarding the Department’s current operations during the Covid-19 outbreak. In particular, the Department noted that though the offices will be closed to the public for the next 21 days, staff are continuing to process licensing and registration applications. The Department suggested that companies may choose to transition their license records to the NMLS to avoid delays. In addition, the Department noted that field examinations continue remotely, using phone and email in lieu of onsite reviews. Finally, the Department indicated deadlines were extended for mortgage companies to file mortgage call reports and financial statements, and that deadlines will be reviewed for required license renewals and reports as needed.

    State Issues Covid-19 Idaho Licensing Call Report Examination

  • FDIC, OCC, NCUA identify essential critical infrastructure workers during Covid-19

    Federal Issues

    On March 26, the FDIC issued FIL-25-2020 stating that the financial services sector is a “critical infrastructure” during the Covid-19 pandemic pursuant to the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency’s (CISA) March 19 guidance. The guidance is intended to help state, local, and industry partners identify critical infrastructure sectors and essential workers in order to ensure continuity of critical functions. The FIL advises company leadership to provide workers with documentation identifying them as critical infrastructure workers who need “to travel inside restricted areas in order to support critical infrastructure.”

    On March 25, the OCC issued similar guidance pursuant to CISA’s guidance. Bulletin 2020-23 encourages essential critical infrastructure workers to maintain normal work schedules during the Covid-19 pandemic, and offers guidance for banks concerning workers who may need to move within and between restricted areas. Essential critical infrastructure workers include those who are needed to: (i) “process and maintain systems for processing financial transactions and services (e.g., payment, clearing and settlement; wholesale funding; insurance services; and capital markets activities)”; (ii) “provide consumer access to banking and lending services,” such as ATMs and armored cash carriers; and (iii) support financial institutions (e.g., staffing data and security operations centers). The workers also include key third party providers who deliver core services. The OCC advises banks to, among other things, update business continuity plans and provide documentation to workers detailing work-related travel.

    The NCUA also sent a letter to member boards of directors, chief executive officers, chief information officers, and chief information security officers identifying essential critical infrastructure workers pursuant to CISA’s guidance. Updates to Covid-19 NCUA resources are available here.

    Federal Issues Agency Rule-Making & Guidance FDIC OCC NCUA Covid-19 Department of Homeland Security

  • Banking regulators urge small-dollar lending during Covid-19 crisis

    Federal Issues

    On March 26, the FDIC, Federal Reserve Board, CFPB, NCUA, and OCC issued a joint statement encouraging banks, savings associations, and credit unions to offer responsible, small-dollar loans to consumers and small businesses affected by Covid-19. The agencies recognize that small-dollar lending can play an important role in meeting credit needs during this time period, and recommend that financial institutions offer loans “through a variety of structures including open-end lines of credit, closed-end installment loans, or appropriately structured single payment loans.” For borrowers experiencing unexpected circumstances who cannot repay a loan as structured, financial institutions are “further encouraged to consider workout strategies designed to help borrowers to repay the principal of the loan while mitigating the need to re-borrow.” All loans, however, should be offered in a manner “consistent with safe and sound practices” that “provides fair treatment of consumers, and complies with applicable statutes and regulations, including consumer protection laws.”

    Federal Issues Agency Rule-Making & Guidance FDIC Federal Reserve CFPB OCC NCUA Small Dollar Lending Small Business Lending Covid-19

  • CFPB outlines regulatory flexibility related to Covid-19

    Federal Issues

    On March 26, the CFPB announced several regulatory flexibility measures to help financial companies work with consumers affected by Covid-19. Specifically, the measures postpone certain industry data collections on Bureau-related rules. These include:

    • HMDA. Quarterly information reporting by certain mortgage lenders as required under HMDA and Regulation C will not be expected during this time. However, entities should continue collecting and recording HMDA data in anticipation of making annual submissions. Entities will be provided information by the Bureau on when and how to commence new quarterly HMDA data submissions. (See statement here.)
    • TILA. During this time, annual submissions required under TILA, Regulation Z, and Regulation E “concerning agreements between credit card issuers and institutions of higher education; quarterly submission of consumer credit card agreements; collection of certain credit card price and availability information; and submission of prepaid account agreements and related information” will not be expected. (See statement here.)
    • Section 1071. A survey seeking information from financial institutions on the cost of compliance in connection with pending rulemaking on Section 1071 of the Dodd-Frank Act has been postponed. As previously covered by InfoBytes, under the terms of a stipulated settlement resolving a 2019 lawsuit that sought an order compelling the Bureau to issue a final rule implementing Section 1071, the Bureau agreed to outline a proposal for collecting data and studying discrimination in small-business lending.
    • PACE Financing. A survey of firms providing Property Assessed Clean Energy (PACE) financing to consumers for the purposes of implementing Section 307 of the Economic Growth, Regulatory Relief, and Consumer Protection Act has been postponed.
    • Supervision and Enforcement. The Bureau’s policy statement provides “that it does not intend to cite in an examination or initiate an enforcement action against any entity for failure to submit to the Bureau” specified information related to credit card and prepaid accounts. However, the Bureau’s announcement advises entities to “maintain records sufficient to allow them to make delayed submissions pursuant to Bureau guidance.” With respect to operational challenges facing institutions due to Covid-19, the Bureau states that it will work with institutions when scheduling examinations and other supervisory activities to minimize disruption and burden. “[W]hen conducting examinations and other supervisory activities and in determining whether to take enforcement action, the Bureau will consider the circumstances that entities may face as a result of the [Covid-19] pandemic and will be sensitive to good-faith efforts demonstrably designed to assist consumers,” the announcement states.

    Federal Issues CFPB Agency Rule-Making & Guidance Data Collection / Aggregation Mortgages Data HMDA Credit Cards Prepaid Cards TILA Dodd-Frank PACE Programs Examination Supervision Consumer Finance Covid-19

  • OFAC extends two Ukraine-related general licenses

    Financial Crimes

    On March 20, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced it extended the expiration dates of two Ukraine-related general licenses (GLs) by issuing GL 13N, which supersedes GL 13M, and GL 15H, which supersedes GL 15G. Both GLs—which now expire July 22—authorize certain transactions necessary to divest or transfer debt, equity, or other holdings, or wind down operations or existing contracts with a Russian manufacturer previously sanctioned by OFAC in April 2018 (covered by InfoBytes here).

    Visit here for continuing InfoBytes coverage of actions related to Ukraine.

    Financial Crimes Department of Treasury OFAC Of Interest to Non-US Persons Sanctions Ukraine Russia

  • Indiana amends certain financial institution and consumer credit provisions

    State Issues

    On March 18, the Indiana governor signed House Enrolled Act No. 1353, which amends various provisions concerning financial institutions and consumer credit, including those related to first lien mortgage lenders, credit unions, and surety bond requirements for licensed mortgage loans originators, pawnbrokers, and money transmitters, among others. Among other things, the act also amends a provision in the state statute governing credit unions, which provides that loans made by a credit union to the credit union’s individual officers (and to the immediate family members of an officer, director, or supervisory committee member) must be made in accordance with Regulation O of the Federal Reserve Board. The act also stipulates that required appraisals connected to mortgage loans made to credit union members must be “consistent with the appraisal standards and transaction value limitations” outlined in the National Credit Union Administration’s appraisal regulations. The amendments take effect July 1.

    State Issues State Legislation Consumer Credit Mortgage Lenders Federal Reserve NCUA Regulation O Appraisal

  • Fed extends small financial institutions' filing deadline

    Federal Issues

    On March 26, the Federal Reserve (Fed) announced that it will not take action against small financial institutions that miss the deadline for filing their March 31 “Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) or Financial Statements of U.S. Nonbank Subsidiaries of U.S. Bank Holding Companies (FR Y-11).” Pursuant to the Fed’s guidance, small financial institutions with $5 billion or less in assets must file their financial statements within 30 days of the official deadline. The Fed also encouraged institutions to communicate with their Reserve Bank if they anticipate the need for additional time to file their statements. As previously covered by InfoBytes, the federal regulatory agencies issued a similar 30-day grace period for institutions that must submit call reports.

    Federal Issues Financial Institutions Federal Reserve Bank Holding Companies Covid-19

  • Special Alert: California governor releases Covid-19 relief package

    State Issues

    On March 25, California Governor Gavin Newsom announced a financial relief package (Proposal) and related guidance to assist borrowers in California experiencing financial hardship as a result of the Covid-19 outbreak. According to the news release, the relief efforts are being supported by several of the nation’s largest national banks, as well as by nearly 200 state-chartered banks, credit unions, and other servicers operating in California (Participating Financial Institutions). Under the Proposal, California borrowers of residential mortgage loans may be eligible for relief with respect to mortgage payments, credit reporting, foreclosures, evictions, and late fees and charges.

    ***

    Click here to read the full special alert

    If you have any questions regarding California’s financial relief package, or other related issues, please contact a Buckley attorney with whom you have worked in the past. You can also visit our Covid-19 News & Resources page for a compendium of issuances by federal and state agencies, as well as GSEs and other sources.

    State Issues Special Alerts Consumer Finance Mortgages Foreclosure Covid-19

  • Idaho issues stay at home order

    State Issues

    On March 25, the Idaho Department of Health and Welfare issued an Order to Self-Isolate for all individuals living in Idaho except for those providing or receiving certain services or activities or engaged in essential businesses. Banks, credit unions, and financial institutions, including processing and maintaining systems for processing financial transactions and services are deemed essential business. Idaho also has published a List of Essential Services.

    State Issues Credit Union Financial Institutions Idaho Covid-19

  • Kentucky governor orders closing of all non-life-sustaining businesses

    State Issues

    On March 25, Kentucky Governor Andy Beshear issued an executive order mandating that only “life-sustaining businesses” may remain open and encouraged citizens to remain “healthy at home.” The list of life-sustaining businesses includes banks, credit unions, mortgage companies, payday lenders, check cashers, money transmitters, and securities institutions.

    State Issues Governors Credit Union Mortgages Payday Lending Mortgage Lenders Kentucky Covid-19 Executive Order

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