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Alaska promotes SBA Paycheck Protection Program
On April 3, the Alaska commissioner of Commerce, Community, and Economic Development released a memorandum to community leaders and small business owners in the state promoting the CARES Act’s Paycheck Protection Program for small businesses and encouraging interested borrowers to participate in the program.
Iowa Division of Credit Unions issues regulatory bulletin on the Paycheck Protection Program
On April 3, the Iowa Division of Credit Unions issued a regulatory advisory bulletin pertaining to small business lending during the Covid-19 crisis. The bulletin provides details on the new Paycheck Protection Program offered through the Small Business Administration as part of the broader CARES Act. The guidelines provide application details for credit unions seeking to participate in the PPP, and specify that SBA-approved 7(a) lenders already qualify to issue PPP loans. The regulatory changes apply only PPP loans, and do not impact or otherwise change traditional 7(a) loans.
Wisconsin Department of Financial Institutions issues guidance for conducting annual meetings
On April 3, the Wisconsin Department of Financial Institutions issued emergency guidance for annual meetings of members and shareholders as a result of Covid-19 emergency measures. The guidance provides that all annual meetings may be conducted virtually, provided the meeting adheres to standard record-keeping obligations.
New York Department of Financial Services encourages participation in Small Business Administration’s paycheck protection loan program
On April 3, the New York Department of Financial Services Superintendent published a letter to state-regulated entities informing them about the Paycheck Protection Loan Program established by the CARES Act. The letter encouraged eligible institutions to participate in the program and urged those not currently eligible to obtain eligibility.
Montana Department of Administration provides information regarding technology-based notarization
The Montana Department of Administration has posted information about technology-based notarizations available to Montana notaries. The guidance describes the mechanics of remote and remote online notarization, the registration requirements for performing technology-based notarization, and the methods of identification for remote and remote online notarizations. A list of Montana Secretary of State approved providers of remote and remote online notarization is included.
Freddie Mac issues guidance to seller/servicers on business continuity plans, borrower relief
On April 3, Freddie Mac issued guidance reminding seller/servicers to maintain a business continuity plan in accordance with the requirements of the Freddie Mac Single Family Seller/Servicer Guide. Sellers and servicers are expected to maintain the business continuity plan and to follow the plan during the Covid-19 pandemic. The guidance noted that Freddie Mac communicated with document custodians at four banks to confirm their business continuity plans are in place, and urged sellers using other document custodians to inquire with those custodians about their business continuity plans. Finally, the guidance summarized the relief that servicers should provide to borrowers impacted by Covid-19, including mortgage forbearance, waiving penalties and fees, halting foreclosure sales and evictions, suspending credit bureau reporting for delinquency related to forbearance, and offering loan modifications after the forbearance period.
Montana Banking and Financial Institutions extends filing deadlines for non-depository licensees
The Montana Banking and Financial Institutions announced that it is extending the deadline for non-depository licensees to file certain reports. The MCR Q1 2020 report due date has been extended from May 15, 2020, to June 14, 2020. The deadline to submit the MCR Standard Financial Condition Report and the Financial Statement has been extended from 90 days from the end of the company’s fiscal year to 120 days from the end of company’s fiscal year.
Delaware Department of Insurance issues bulletin to insurance companies and licensed insurance producers
On April 3, the Delaware Department of Insurance issued Bulletin No. 117/33 to insurance companies authorized to transact business in Delaware and licensed insurance producers regarding compliance with regulatory requirements during Covid-19. Insurers are reminded that, without a court order, they may not suspend, cancel or refuse to renew certain defined policies due to nonpayment during the governor’s declared state of emergency. Among other things, the bulletin also: temporarily suspends notarization requirements for documents required to be filed under Title 18, relaxes requirements for in-person appraisals/inspections, suspends any on-site examination work that is non-essential or contrary to directives to limit gatherings, suspends administrative hearings and notes that the department will not schedule any arbitrations that are nonessential or contrary to directives to limit gatherings or practice social distancing or isolation, and provides additional information regarding regulatory filing deadlines, response deadlines, and requests for extensions.
Tennessee regulators issue joint bulletin on premium finance agreements
On April 3, the Tennessee Department of Commerce and Insurance and Department of Financial Institutions issued a joint bulletin pertaining to premium finance agreements. The joint statement encouraged premium finance lenders to provide grace periods on payments and to be flexible when determining agreement defaults. The Department of Commerce and Insurance, working in conjunction with the Department of Financial Institutions, recommended insurance carriers coordinate with premium finance lenders on grace period modifications.
Rhode Island Banking Division issues guidelines detailing flexibility for premium finance lenders
On April 3, the Rhode Island Department of Business Regulation Banking Division issued a bulletin asking premium finance companies to work with insured individuals and entities to maintain coverage during the Covid-19 crisis. The bulletin requests that premium lenders: (1) extend payment periods, implement alternative payment plans, and take other necessary steps to avoid the cancellation or lapse of coverage during the emergency period; (2) implement alternative payment methods, such as facilitation electronic payments; (3) consider waiving late payments and other penalties, and extend grace periods on statement due dates and; (4) streamline processes that might delay issuing new coverage or cause the lapse of existing coverage.