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  • Oregon enacts bill providing notarization relief

    State Issues

    On June 30, the Oregon governor signed HB 4212, which provides relief relating to wage garnishment and notarization, among other things. The bill exempts certain recovery rebate payments under the CARES Act from garnishment requirements applicable to financial institutions. The bill also permits electronic notarization, provided certain requirements are met. The bill took effect on June 30.

    State Issues Covid-19 Fintech ESIGN Notary Debt Collection CARES Act Financial Institutions

  • Oregon enacts bill providing payment deferrals and foreclosure relief

    State Issues

    On June 30, the Oregon governor signed HB 4204, which requires mortgage payment deferrals and limits foreclosures during the Covid-19 emergency period, which runs from March 8 until September 30. Among other things, during that period, a lender may not treat as a default a borrower’s failure to make a periodic installment payment or to pay any other amount that is due to the lender if, at any time during the emergency period, the borrower notifies the lender of his or her inability to make the periodic installment payment. Unless the lender and borrower do not otherwise agree to otherwise modify, defer, or mitigate a loan, the lender must refrain from collecting during the emergency period and must permit the borrower to pay the amounts deferred at the end of the mortgage term. The bill also imposes certain restrictions on a lender’s ability to assess late fees and to pursue a foreclosure. The bill became effective on June 30.

    State Issues Covid-19 Oregon Mortgages Foreclosure Mortgage Lenders

  • Delaware governor issues order modifying relief relating to evictions, foreclosures, and insurance

    State Issues

    On June 30, the Delaware governor issued an order that modifies previous relief relating to evictions, foreclosures, and insurance. Specifically, the declaration lifts the stay on residential mortgage foreclosure actions commenced prior to the state of emergency. However, subject to certain exceptions, individuals may not be removed from the residential properties as a result of a mortgage foreclosure process while the order is in effect. Further, actions for summary possession may be filed for residential units in Delaware, but must be stayed pending a determination of whether the parties would benefit from participating in court supervised mediation or alternative dispute resolution. During the eviction process, subject to certain exceptions, individuals may not be removed from the residential properties. Finally, beginning July 1, 2020, every insurer is required to provide a 90-day payment plan for certain individual policyholders and business policyholders impacted by the Covid-19 state of emergency. 

    State Issues Covid-19 Delaware Mortgages Evictions Foreclosure Insurance Mortgage Insurance

  • Oregon authorizes remote notarizations through July 2021

    State Issues

    On June 30, the Oregon governor signed HB 4212A into law, which authorizes remote online notarization through July 2021. Under the new law, a commissioned notary public may use audio-visual technology to perform notarizations, subject to certain requirements, limitations and conditions. The Oregon secretary of state also issued guidance which assists notaries to find technology vendors that meet the requirements of the new law, register for online notarization training, and submit the required notice form.

    State Issues Covid-19 Oregon Notary Fintech

  • Oklahoma regulator amends working from home guidance

    State Issues

    On June 30, the Oklahoma Department of Consumer Credit extended, for the third time, its interim guidance to regulated entities on working from home (see here, here, and here for previous coverage). The guidance sets forth data security standards that regulated entities must meet in order for the department to take no action with respect to employees conducting activities that would otherwise require licensure of their homes. The revised guidance also provides that the department will expedite and waive fees for change of address applications in the event that a licensed location is compromised by Covid-19 or is undergoing decontamination. The guidance was extended through September 30, 2020.

    State Issues Covid-19 Oklahoma Consumer Credit Privacy/Cyber Risk & Data Security Licensing

  • FHA issues mortgagee letter extending guidance on employment reverification and appraisals

    Federal Issues

    On June 29, the FHA issued Mortgagee Letter 2020-20, which re-extends the effective date of Mortgagee Letter 2020-05, previously covered here and here. The re-extension of appraisal guidance in Mortgagee letter 2020-05 and of re-verification of employment guidance in Mortgagee Letter 2020-05 are effective immediately for cases closed on or before August 31, 2020.

    Federal Issues Covid-19 FHA Appraisal Mortgages

  • FINRA updates guidance on fingerprinting requirements

    Federal Issues

    FINRA has updated its frequently asked questions guidance regarding relief from certain fingerprinting requirements (previously covered here). The guidance notes that, on June 27, the SEC extended its order providing temporary relief from fingerprinting requirements of the Securities Exchange Act Rule 17f-2 for FINRA members until a date to be specified in a public notice from SEC staff. Because FINRA already provided notification to the SEC in March on behalf of its members, their employees, and associated persons, such individuals may continue to rely on the commissioner’s order and FINRA’s notification. However, for an individual seeking registration pursuant to the submission of a Form U4, a FINRA member firm seeking to rely on temporary exemptive relief for registered persons must comply with FINRA’s guidance with respect to FINRA Rule 1010.

    Federal Issues Covid-19 FINRA Fintech SEC

  • New York Department of Financial Services adopts emergency measure to provide relief to insureds

    State Issues

    On June 28, the New York Department of Financial Services adopted an emergency measure that amends the insurance regulations to provide relief to policyholders, contract holders, and insureds who can demonstrate financial hardship relating to the Covid-19 pandemic. Among other things, the emergency measure: (i) provides that premiums remitted by a creditor will be assumed to provide coverage under a credit life or credit unemployment insurance policy for insured debtors whose payments are not more than three months overdue; (ii) provides certain protections for insureds who do not make timely premium payments to certain insurance entities; and (iii) prohibits a premium finance agency from cancelling an insurance policy due to an insured’s failure to make a timely installment payment for a period of at least 90 days, if the insured can demonstrate financial hardship due to Covid-19, and subject to the safety and soundness of the premium finance agency. 

    State Issues Covid-19 New York NYDFS Insurance Consumer Credit

  • Global pharmaceutical company’s current and former subsidiaries settle alleged FCPA violations with DOJ

    Financial Crimes

    On June 25, the DOJ announced it had entered into a deferred prosecution agreement with a subsidiary of a Switzerland-based global pharmaceutical company to pay $225 million in criminal penalties related to alleged violations of the FCPA’s anti-bribery and books and records provisions. The DOJ also entered into a separate deferred prosecution agreement with a former subsidiary of the pharmaceutical company (current subsidiary of a multinational eye care company) for approximately $8.9 million in criminal penalties related to alleged violations of the FCPA’s books and records provisions.

    According to the DOJ, between 2012 and 2015, the current pharmaceutical subsidiary violated the FCPA by engaging in a scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Greece to increase the sales of its products. Moreover, between 2009 and 2010, the pharmaceutical subsidiary made improper payments, in connection with an epidemiological study, to providers in order to increase sales of certain prescription drugs. The DOJ alleged that the pharmaceutical subsidiary “knowingly and willfully conspired with others to cause [the pharmaceutical parent company] to mischaracterize and falsely record improper payments…in [the parent company]’s books, records, and accounts.” Under the terms of the agreement with the pharmaceutical subsidiary, the subsidiary agreed to cooperate with ongoing investigations, and both the subsidiary and its parent agreed to enhance their compliance programs and report to the DOJ on those improvements.

    In the DPA with the former eye care subsidiary, the DOJ alleged that between 2011 and 2014, while still a subsidiary of the pharmaceutical parent company, the former subsidiary “knowingly and willfully conspired with others to cause [the pharmaceutical parent company] to maintain false books, records and accounts, as a result of a scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Vietnam.” The agreement notes that the former eye care subsidiary and its current parent company have since implemented and will continue to implement enhanced FCPA compliance controls and will report to the government on the implementation.

    The DOJ recognized that both subsidiaries engaged in remedial measures, including (i) terminating and disciplining individuals involved in the misconduct; (ii) adopting heightened controls and anti-corruption protocols; and (iii) increasing the resources devoted to compliance.

    The SEC simultaneously announced a resolution with the pharmaceutical parent company to pay over $112 million in a related matter.

    Financial Crimes DOJ FCPA Settlement SEC Of Interest to Non-US Persons Bribery

  • FDIC follows OCC, adopts final rule addressing Madden

    Agency Rule-Making & Guidance

    On June 25, the FDIC issued a final rule clarifying that whether interest on a loan is permissible under the Federal Deposit Insurance Act is determined at the time the loan is made and is not affected by the sale, assignment, or other transfer of the loan. The FDIC’s final rule effectively reverses the Second Circuit’s 2015 Madden v. Midland Funding decision as applicable to state banks and follows the OCC’s issuance of a similar rule earlier this month for national charters. Specifically, the FDIC’s final rule states that, “[w]hether interest on a loan is permissible under section 27 of the Federal Deposit Insurance Act is determined as of the date the loan was made. . . [and] shall not be affected by a change in State law, a change in the relevant commercial paper rate after the loan was made, or the sale, assignment, or other transfer of the loan, in whole or in part.” Additionally, the FDIC rule mirrors the OCC in specifying that the rule does “not address the question of whether a State bank. . .is a real party in interest with respect to a loan or has an economic interest in the loan under state law, e.g. which entity is the ‘true lender.’” Details on the effect of these rules can be found in Buckley’s Special Alert on the OCC’s issuance.

    Agency Rule-Making & Guidance FDIC OCC Madden Interest Rate State Issues

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