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Texas Office of Consumer Credit issues revised emergency bulletin for lenders
On April 16, the Texas Office of Consumer Credit issued a revised bulletin outlining emergency guidance for regulated lenders navigating the Covid-19 crisis. The guidelines: 1) extended due date for filing annual reports from May 1 to June 1; 2) encouraged lenders to work with consumers, including by working out modifications to assist with payments, waiving fees and charges, suspending charged-off accounts, and suspending repossessions of collateral or foreclosure of real property, among other things; 3) reminded lenders of legal requirements for using electronic signatures; and 4) permitted lenders to conduct regulated lending activity from unlicensed locations, subject to certain conditions.
Nebraska regulator clarifies eligibility of lender affiliates for PPP loans
The Nebraska Department of Banking and Finance re-posted FAQs from the Department of the Treasury and Small Business Administration regarding the Paycheck Protection Program. The FAQs clarify that lenders are permitted to make PPP loans to companies owned in whole or in part by an outside director or a less than 30 percent equity holder of the lender, provided no favoritism or prioritization of the director’s or equity holder’s company is involved. This does not apply to companies owned in whole or in part by directors or owners that are key employees of the lender.
Kansas extends duration of stay home order
On April 16, the Kansas governor issued an order extending the duration of a prior “stay home” order to May 3, 2020 or until the statewide State of Disaster Emergency proclaimed on March 12, expires, whichever is earlier. A press release also was issued regarding the order.
Missouri extends duration of “Stay Home Missouri” order
On April 16, the Missouri Department of Health extended the duration of a prior “Stay Home Missouri” order to May 3, 2020, unless extended or modified. Relying on the Cybersecurity and Infrastructure Security Agency (CISA) advisory memorandum, financial services are considered essential.
FINRA updates FAQs to address meetings with members by video or audio conferencing and forwarding of firm mail
On April 16, FINRA updated certain questions in its FAQs related to regulatory relief due to Covid-19. The FAQs clarify requirements for a firm to supervise its registered representatives that meet with clients via a live video or audio conferencing platform. For such meetings, FINRA notes that members generally are not required to record live video or audio conferences with customers. However, to the extent the meeting utilizes chat or instant messaging features, or presents slides or other written (including electronic) communications, the member must keep records of these written communications, and their content must be consistent with applicable standards. Recorded live video or audio conversations with customers may need to be produced upon regulatory request. The FAQs also clarify situations in which the firm may redirect firm mail from a branch to an associated person's residence.
Freddie Mac announces system updates to facilitate use of exterior-only appraisals
On April 16, Freddie Mac announced that it will be adding a new feedback message (effective April 17, 2020) to Loan Collateral Advisor and Uniform Collateral Data Portal (UCDP). The message will note when exterior-only appraisals (as identified in the Map Reference field of the appraisal report) are submitted to UCDP using an incorrect appraisal form and will request resubmission to UCDP on the appropriate form.
Wisconsin extends stay at home order
On April 16, the Wisconsin Department of Health Services extended its order closing all non-essential businesses and ordering residents to stay at home until May 26, 2020. Banks, credit unions, and other depository or lending institutions; licensed financial service providers; insurance services; broker dealers; and investment advisors are not required are considered essential and not required to close.
NYDFS permits depository institutions to hold remote meetings
On April 16, the New York State Department of Financial Services announced that it issued an order permitting state-chartered banks, credit unions, mutual savings and loan associations, and mutual savings banks to hold meetings virtually. These include stockholder, shareholder and accountholder meetings. The order also extends the timing requirement for annual stockholder meetings so that meetings may be held within seven months of the institution’s fiscal year end, instead of four months.
New York extends stay at home order
On April 16, the New York governor issued an executive order extending the state’s stay-at-home order and closure of schools and non-essential businesses until May 15, 2020.
Agencies to hold webinar for bankers on loan modifications and reporting
On April 16, the FDIC released FIL-46-2020, announcing a webinar to provide accounting and reporting guidance for bankers pursuant to Section 4013 of the CARES Act and the revised Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (covered by InfoBytes here). The webinar is scheduled for Friday, April 24 at 3:00 pm EDT and will be jointly hosted by the FDIC, the Federal Reserve, the OCC, and the NCUA. Participants are encouraged to email questions prior to the webinar to asktheregulators@stls.frb.org. To register for the webinar, click here.