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Financial Services Law Insights and Observations

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  • North Carolina governor prohibits mass gatherings, closes certain businesses

    State Issues

    On March 23, the governor of North Carolina issued an executive order prohibiting mass gatherings of 50 or more. The order does not specifically address financial institutions.

    State Issues Covid-19 North Carolina

  • Minnesota issues executive order providing relief to small businesses during Covid-19

    State Issues

    On March 23, the Minnesota governor issued an executive order providing relief to small businesses during the Covid-19 pandemic. The order directs the Department of Employment and Economic Development to develop a forgivable loan program to award grants to nonprofit corporations to fund forgivable loans to small businesses. For a business to participate, it must demonstrate to the lender that it was “directly and adversely affected” by Covid-19. The order provides additional information on the administration and parameters of the loan program, such as reporting requirements for participating lenders and loan forgiveness.

    State Issues Covid-19 Minnesota Small Business

  • NCUA provides urgent needs grants to credit unions during Covid-19 emergency

    Federal Issues

    On March 23, the National Credit Union Administration (NCUA) announced that “[f]ederally insured, low-income designated credit unions” that have been adversely impacted by costs related to Covid-19 may apply for urgent needs grants. The NCUA can provide grants for such things as (i) “[h]ardware, software, or other equipment to help them provide financial products and services from remote locations”; (ii) “[c]onsulting services to develop programs…to assist those affected by COVID-19”; and (iii) “marketing materials to assure members their insured deposits are safe.” Applications for the grants may be found here.

    Federal Issues Credit Union Lending NCUA Covid-19

  • Special Alert: Fed offers billions through emergency credit facilities

    Federal Issues

    On March 23, the Federal Reserve announced that it is establishing and expanding a number of facilities to provide powerful support for the flow of credit to large U.S. employers and other businesses and families in the midst of the Covid-19 pandemic.

    The Fed’s facilities and related actions are rooted in its authority related to financial markets under Section 13(3) of the Federal Reserve Act, but creatively expand the reach of the assistance the Fed may provide relative to the financial-crisis era legislation last addressed by the Dodd-Frank Act, including by using special purpose vehicles (SPVs) backed by the U.S. Treasury to purchase assets, which now include corporate bonds. In the COVID-19 crisis, we see the Fed’s use of Section 13(3) not targeted principally at systemically important financial institutions, but rather at the broader economy, including financial and nonfinancial businesses, large and small. Eligibility under these programs involves factors in Section 13(3) itself, as amended by the Dodd Frank Act, the Fed’s respective term sheets, and the economic stimulus legislation pending in Congress.

    * * *

    Click here to read the full special alert.

    If you have any questions regarding the Fed’s new facilities 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.

    Federal Issues Special Alerts Federal Reserve Department of Treasury Covid-19 Dodd-Frank

  • California Department of Business Oversight issues guidance to permit licensees to work from home

    State Issues

    On March 22, the California Department of Business Oversight (Department) issued guidance to escrow agents, finance lenders and servicers, student loan servicers, residential mortgage lenders and servicers, and mortgage loan originators in light of Covid-19 permitting employees of licensees to conduct activities from home that normally would require a branch license, provided that appropriate measures are taken to protect consumers and their data. Further, the Department will not criticize student loan servicers or licensees sponsoring MLOs who permit their respective employees to work from home, provided that certain data security and other conditions are met. Escrow Law licensees may also follow this guidance, however the licensees must still comply with the Fidelity Corporation or the licensee’s surety bond. Additionally, licensees are encouraged to assist consumers including through, among other things, offering payment accommodations.

    State Issues California Licensing Escrow Student Loan Servicer Mortgage Lenders Covid-19 MLO Bond

  • Iowa suspends foreclosures, declares state of emergency

    State Issues

    On March 22, the governor of Iowa proclaimed a state of emergency throughout Iowa. The proclamation prohibits the commencement of new foreclosures and suspends ongoing foreclosure proceedings on residential, commercial, and agricultural real property in Iowa, authorizes remote notarial acts, and provides a wide range of regulatory licensing relief.

    State Issues Foreclosure Mortgages Licensing Covid-19

  • Iowa issues remote notarization guidance

    State Issues

    On March 22, Iowa issued temporary remote notarization guidance and FAQs to assist notaries public in working remotely during the Covid-19 crisis. A set of more-stringent provisions is scheduled to take effect on July 1, 2020.

    State Issues Covid-19 Iowa Notary Fintech

  • Oregon governor calls for moratorium on residential evictions

    State Issues

    On March 22, Oregon Governor Kate Brown issued an executive order placing a moratorium on residential evictions for reason of nonpayment during the Covid-19 crisis. The order called the moratorium "both a moral and a public health imperative" for those unable to make payments during the pandemic, and stipulated that evictions will be put on hold for a 90-day grace period.

    State Issues Covid-19 Oregon Evictions Mortgages

  • Iowa suspends foreclosures, declares state of emergency

    State Issues

    On March 22, the governor of Iowa proclaimed a state of emergency throughout Iowa.  The proclamation prohibits the commencement of new foreclosures and suspends ongoing foreclosure proceedings on residential, commercial, and agricultural real property in Iowa, authorizes remote notarial acts, and provides a wide range of regulatory licensing relief.

    State Issues Covid-19 Iowa Foreclosure Mortgages

  • OCC issues interim rule and order to extend short-term investment fund maturity

    Federal Issues

    On March 22, the OCC announced the release of a short-term investment funds (STIF) interim final rule. The rule—which is effective immediately—revises the OCC’s STIF rule “for national banks acting in a fiduciary capacity” and “allows the OCC to authorize banks to temporarily extend maturity limits of these funds” for financial market disruptions that prevent banks from complying with required STIF maturity limits. Comments on the interim rule must be received by May 9.

    Along with the interim final rule, the OCC issued OCC Bulletin 2020-22 regarding its March 21 order which temporarily extends maturity limits for STIFs that have been affected by financial market disruptions as a result of Covid-19. According to the order, a bank will be considered to be in compliance if (i) “the STIF maintains a dollar-weighted average portfolio maturity of 120 days or less”; (ii) the STIF maintains a dollar-weighted average portfolio life maturity of 180 days or less”; (iii) “the bank determines that using these temporary limits would be in the best interests of the STIF under applicable law”; and (iv) “the bank makes any necessary amendments to the written plan for the STIF to reflect these temporary changes.” The temporary limits will be in effect until July 20, unless extended by the OCC.

    Federal Issues OCC Enforcement Department of Treasury Agency Rule-Making & Guidance Covid-19

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