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Illinois executive order prohibits service of garnishment, wage deduction summonses
On April 14, the Illinois governor issued an executive order in response to Covid-19, suspending provisions of Illinois law that permit the service of a garnishment summons, a wage deduction summons, or a citation to discover assets on consumers. The suspension does not apply to domestic support obligations and does not relieve debtors of lability.
Illinois regulator issues Covid-19 best practices for consumer credit licensees
On April 14, the Illinois Department of Financial and Professional Regulation issued guidance for consumer credit licensees, noting that it expects them to work with consumers during the crisis and be flexible with repayment of debt. The department recommended following a number of best practices, including increasing communication with consumers, waiving late charges and insufficient fund fees, suspending debt collection efforts, recommending that the creditor utilize the natural disaster code when reporting a consumer’s credit wherever permissible, and ensuring sufficient staffing of customer service phone lines, among other things.
New Mexico regulator halts repossessions during pandemic
On April 14, the New Mexico Public Regulation Commission provided notice that towing services for purpose of automobile repossessions are deemed non-essential by the governor. The notice effectively bans repossession for the duration of the Covid-19 emergency.
New Jersey passes legislation permitting remote notarization during state of emergency
On April 14, New Jersey passed legislation permitting remote notarization using communication technology for the duration of the public health emergency and state of emergency, provided certain requirements stipulated in the legislation are met.
Louisiana Office of Financial Institutions issues guidance to non-depository licensees regarding Covid-19 relief
On April 14, the Louisiana Office of Financial Institutions issued guidance to non-depository licensees regarding Covid-19 relief. Although sections 4021 and 4022 of the CARES Act are specific to federally-backed mortgage loans, the OFI encourages all lenders to follow the terms of the provisions for all non-federally-backed mortgage loans as if they were federally-backed. Licensed lenders that offer deferred presentment transactions, small loans, or consumer loans are encouraged to provide certain relief options to borrowers, such as accepting partial payments, waiving fees, deferring payments and suspending negative credit reporting. Check cashers are also encouraged to offer discounted fees to customers during the crisis. Finally, non-depository licensees that temporarily close their locations are urged to post a notice at the location containing their contact information to assist customers with any questions.
Washington governor issues temporary moratorium on garnishments and accruals of interest
On April 14, Washington Governor Jay Inslee issued an executive order temporarily prohibiting certain garnishments and accruals of interest statewide. Governor Inslee noted that garnishments and other collect judgments could hinder consumers from paying for basic necessities, thereby, endangering the lives of individual consumers and risking further negative impacts on public health. Inslee’s statewide order is in place through May 14.
New York Department of Financial Services issues FAQs for emergency insurance regulations
New York’s Department of Financial Services has published FAQs for the property/casualty emergency regulation adopted on March 30. The FAQs address which policyholders are eligible for the 60-day moratorium on policy cancellation or non-renewal and other concerns pertaining to implementation of the moratorium.
Maine Supreme Court revises court guidelines amid Covid-19 crisis
On April 14, Maine Supreme Court Acting Chief Justice Andrew Meade issued a revised emergency order providing court guidelines for navigating the Covid-19 crisis. The guidelines pertained to the types of cases the courts will schedule and hear; exceptions and motion-filing procedures; postponement of jury trials and grand jury proceedings; boards, committees, and continuing legal education; and hearing of oral arguments. The revised order supersedes the initial order issued from March 30, and is effective until May 1, unless otherwise changed, revised, or lifted.
Fannie and Freddie extend URLA implementation timeline
On April 14, Fannie Mae and Freddie Mac issued a joint statement to announce that—due to the Covid-19 pandemic—the effective date of the revised Uniform Residential Loan Application (URLA) and Automated Underwriting Systems—is extended to January 1, 2021. Lenders must begin use of the redesigned URLA by March 1, 2021, and the current URLA will be retired on March 1, 2022. The revised URLA implementation timeline may be found here. Additional URLA information may be found on Fannie Mae’s URLA FAQs web page here, and on Freddie Mac’s URLA web page here.
Additional InfoBytes coverage on URLA can be found here.
OCC to host info sessions on PPP
On April 14, the OCC announced that the Office of Innovation will host three Paycheck Protection Program (PPP) listening sessions in April. The sessions will discuss questions and possible solutions for three PPP related topics. The first session covering payroll verification will be held on April 16, from 11:00 am to 1:00 pm (EDT), and will discuss how to make payroll verification quicker and more efficient for PPP loans. The second session, fraud identification, will be held on April 20, from 1:00 pm to 3:00 pm (EDT), to discuss possible methods for financial institutions to detect instances of fraud regarding the PPP. The third session will discuss backend processes, including identifying possible issues that may arise for financial institutions in monitoring PPP loans and in PPP loan forgiveness. This last session will be held on April 21, from 1:00 pm to 3:00 pm (EDT). Participants may share PPP concerns prior to the sessions by contacting the Office of Innovation here.