licensing

Alston & Bird Adds Consumer Finance Partner Aldys London in Washington, D.C.

September 23, 2022 By Consumer Finance Team

Alston & Bird has strengthened and expanded its capabilities for advising companies on state and federal consumer finance regulatory compliance issues with the addition of partner Aldys London in the firm’s Washington, D.C. office. Her clients include mortgage companies, consumer finance and FinTech companies, secondary market investors, real estate companies, home builders, insurance companies, banks, and other financial institutions and settlement service providers.

“It’s a pleasure to welcome Aldys, who brings deep experience and a sterling reputation for counseling consumer financial service entities as they navigate complex regulatory issues, including licensing, the intersection of state and federal regulatory compliance, and key approvals for transactions,” said Nanci Weissgold, Alston & Bird partner and co-chair of the firm’s Financial Services & Products Group. “With our shared emphasis on collaboration and excellent service, we are confident that she will successfully draw on our firm’s vast resources and expertise to benefit her clients.”

London provides advice on state licensing for mortgage lenders and related service providers, mortgage brokers, FinTech companies, lead generators, servicers, debt collectors, and investors. She is well versed in federal registration and licensing requirements imposed by the SAFE Act, as well as state laws and regulations concerning fees, disclosures, loan documentation, interest rates, privacy, advertising, data breach, and telemarketing. Her practice also covers seeking and maintaining approvals from state and federal agencies and GSEs. She is adept at federal laws governing real estate mortgage transactions, including preemption, privacy, fair lending and consumer protection.

In addition, London assists a variety of consumer financial services companies in obtaining regulatory approvals for complex acquisitions, mergers, and asset transfer transactions. She performs due diligence reviews for proposed acquisitions and IPOs, reviews and prepares policies and procedures, conducts regulatory compliance audits of financial institutions, and assists with structuring and developing compliance and training programs. She also assists clients with responses to regulatory audits and investigations by state and federal regulators.

“Clients rely on Aldys’ sound counsel because of her technical rigor and thorough understanding of the consumer finance market,” said Stephen Ornstein, Alston & Bird partner and co-leader of the firm’s Consumer Financial Services Team. “Her legal skills, combined with her excellent business sense and ability to develop strong relationships, make her a valuable asset to our firm and our clients.”

Alston & Bird’s Consumer Financial Services Team focuses on the regulation of consumer credit and real estate, with a broad emphasis on origination, servicing, and secondary mortgage market transactions. This team addresses the compliance challenges of major Wall Street financial institutions, federal- and state-chartered depository institutions, hedge funds, private equity funds, national mortgage lenders and servicers, mortgage insurers, due diligence companies, ancillary service providers, and others.

NMLS Seeks Comments on Proposed Revisions to Company and Individual Disclosure Questions

August 10, 2022 By Nanci Weissgold, Anoush Garakani, Aileen Ng

A&B Abstract:

The Nationwide Multistate Licensing System & Registry (NMLS) Policy Committee is inviting comments on the NMLS Disclosure Questions Proposal. The comment period is now open and runs until August 22. Among other revisions, the proposal details suggested revisions to the disclosure questions on the Company (MU1) and Individual (MU2) forms.

Proposed Revisions to NMLS Disclosure Questions

In key part, the proposed revisions include:

Company Disclosure Questions:

Adding a new question to incorporate a requirement of the Money Transmission Modernization Act, g., companies disclosing “material litigation” (which would be a newly defined term) in the past 10 years;
Expanding the civil judicial disclosures to include whether companies have been found in the past 10 years: (1) to have made a false statement or omission or been dishonest, unfair, or unethical, or (2) to have been a cause of another financial services business having its license or authorization denied, suspended, revoked, or restricted;
Amending the civil judicial disclosure question to include whether there are any pending financial services civil actions alleging that a company has made a false statement or omission, or had been dishonest, unfair, or unethical;
Requiring the criminal disclosure of any pending felony charges against companies, instead of any past felony charges;
Broadening the bankruptcy disclosure to include whether a company or control affiliate filed a bankruptcy petition in the past 10 years (in addition to being the subject of a bankruptcy petition) and clarifying that disclosure of either voluntary or involuntary petitions is required;
Adding a question whether companies have ever been denied issuance of a bond;
Introducing a new question asking whether a third-party service provider has notified a company of its intent to modify or cancel an arrangement that would materially alter the company’s ability to conduct business activities, and relatedly, defining “third-party service provider” to include lines of credit, whether warehouse or operation, technology solutions, etc.; and
Separating out into two sections under the existing regulatory action disclosures for: (1) companies that hold or have ever held an authorization to act as a contractor for a federal, state, or local government entity, (2) companies who have “key individuals” (which would be a newly defined term) or control individuals who are or have been licensed as attorneys or accountants or who hold or have been licensed as financial services professionals, and (3) added that dismissal of an action pursuant to a settlement agreement requires disclosure.
- Regarding the last point in (3), this proposed revision is added in Question 14.e. which, according to the NMLS Policy Committee, is intended to broaden the question to account for how regulatory actions may be brought, including dismissal of an action pursuant to a settlement agreement. However, by including the term “settlement agreement”, which is not separately defined in the NMLS Policy Guidebook, Question 14.e. may potentially require the disclosure of nonpublic settlement agreements, which would be a significant change and perhaps an unintended result. The original questions are limited by the terms “found” (in Question 14.a-c.) and “order” (in Question 14.e.), both of which are defined terms indicating that only public settlement agreements and orders are required to be disclosed. Thus, we recommend that industry members consider whether to submit comments on this question to seek clarification.

Individual Disclosure Questions:

Making conforming proposed revisions relating to civil judicial and financial disclosures as described above in the Company Disclosure Questions;
Limiting the time period for the disclosure of misdemeanors to the past 10 years;
Making clarifications to require disclosure of judicial and non-judicial foreclosures on either commercial or residential property;
Adding new questions relating to pending regulatory actions against a holder of a financial services license or other professional license that could result in the restriction, revocation, debarment, or suspension of the license; and
Adding new questions regarding any pending financial services civil actions alleging a violation of a financial services statute or regulation for a company over which an individual exercised control, or a prior finding of the same.

Additional Proposed Revisions

In addition to proposed revisions to Company (MU1) and Individual (MU2) disclosure questions, the proposed revisions include amendments to the NMLS Policy Guidebook Glossary Terms. Significantly, definitions for nine new terms are proposed: (1) Consumer Protection; (2) Court; (3) Efforts to Foreclose; (4) Governmental Entity; (5) Key Individual; (6) Lien; (7) Material Litigation; (8) Third Party Service Provider; and (9) Unsatisfied. Amendments to existing terms include revising “financial services” to include consumer protection laws or regulations that pertain to enumerated financial services items, and clarifying the term “found” to cover agreements or settlements that are a matter of public record including those in which the findings are neither admitted or denied. The existing term “order” would be amended to add language to cover orders agreed to by the parties such as consent orders and stipulated orders, and to clarify that agreements relating to payments, limitations on activity, or other restrictions are excluded from the definition unless they are in a written directive that otherwise qualifies as an order.

Takeaway

We recommend that industry members, both licensees and applicants on NMLS, review the proposed revisions to the disclosure questions and consider whether to submit comments. In particular, and as highlighted above, the proposed changes to Question 14.e. would appear to potentially require the disclosure of nonpublic settlement agreements, which would be a significant change from Question 14.e as currently worded. If so, this may require companies to update their responses to the disclosure questions and submit additional information to NMLS regarding nonpublic settlement agreements. Comments may be submitted via e-mail to comments@csbs.org by August 22.

Federal and State Guidance Regarding the COVID-19 Pandemic

March 22, 2020 By Consumer Finance Team

A&B Abstract:

The Alston & Bird Consumer Finance team recognizes that this is a period of great uncertainty both for the nation and our clients. We have received numerous questions and concerns regarding what federal and state regulators are doing in light of the COVID-19 pandemic and how their response may affect day-to-day business. We have been monitoring both the federal and state guidance that has been released in response to the COVID-19 pandemic and have provided a summary of what has been released thus far. We are continuing to monitor for new developments and will update this blog post accordingly.

Federal Guidance

Federal Administrative Agencies:

HUD/FHA: On March 18, 2020, HUD released Mortgage Letter 2020-4, which placed a foreclosure and eviction moratorium on all FHA-insured Single Family mortgages for a period of 60 days. The moratorium applies both to the initiation of foreclosures and to the completion of foreclosures in process. Similarly, evictions of persons from properties secured by FHA-insured single-family mortgages are suspended for 60 days. Deadlines of the first legal action and reasonable diligence timelines for Home Equity Conversion Mortgages are extended by 60 days. In light of the broad language of the Mortgagee Letter, it does not appear that HUD intended to carve out vacant and abandoned properties from the foreclosure moratorium. HUD has informally confirmed this interpretation.
USDA: On March 19, 2020, the USDA issued SFH Guaranteed Servicing Notice (March 19, 2019) which, effective immediately, provides that borrowers with USDA guaranteed loans are subject to a moratorium on foreclosure for a period of 60 days. The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process. In addition, deadlines of the first legal action and reasonable diligence timelines are extended by 60 days. Similarly, evictions of persons from properties secured by USDA guaranteed loans are also suspended for a period of 60 days.
VA: On March 18, 2020, the VA issued Circular 26-20-8, which strongly encourages loan holders to establish a sixty-day moratorium beginning March 18, 2020, on completing pending foreclosures or imitating new foreclosures on loans. Additionally, due to the widespread impact of COVID-19, loan holders should consider the impact of completing an eviction action when choosing to retain the property instead of conveying to VA. VA requests holders not to expose Veterans and their families to additional risk through an eviction, if at all feasible. Previously, on March 16, 2020, the VA issued Circular 26-20-7, which provides, in relevant part, that (1) lenders should have continuity of operation plans in place to support its ongoing ability to conduct business operations in the event of an interruption to business operations and processes; (2) servicers may employ the following relief to veterans impacted by COVID-19: (a) forbearance, (b) late charge waivers on affected loans, and (c) suspension of credit bureau reporting on affected loans; and (3) appraisers should continue to conduct business as outlined in Chapter 10 of the M26-7, Lenders Handbook.

Federal Government-Sponsored Entities:

Fannie Mae: Fannie Mae released a Bulletin for borrowers detailing its response to the COVID-19. Fannie Mae has placed a moratorium on foreclosure sales and evictions for sixty (60) days. In conjunction with the Bulletin, Fannie Mae also issued Lender Letter LL-2020-02, which sets forth guidance for lenders in responding to COVID-19. The letter provides guidance for lenders concerning topics such as (1) forbearance plan eligibility for borrowers, (2) evaluating borrowers for mortgage modifications, (3) credit bureau reporting, and (4) suspension of foreclosure sales.
Freddie Mac: Freddie Mac released a Bulletin for mortgage servicers detailing its response to the COVID-19 and new guidelines for Freddie Mac mortgage servicers during the COVID-19 pandemic. Similar to Fannie Mae, the Bulletin provides guidance for lenders concerning topics such as (1) forbearance plan eligibility for borrowers, (2) evaluating borrowers for mortgage modifications, (3) credit bureau reporting, and (4) suspension of foreclosure sales.

State Guidance

State Legislatures:

Enacted Legislation and Executive Orders
- District of Columbia: On March 17, 2020 Mayor Bowser signed the COVID-19 Response Emergency Amendment Act of 2020, which expires on June 15, 2020. The act provides for, among other things, a prohibition on evictions for as long D.C. is under a public health emergency.
- New Hampshire: On March 17, 2020, New Hampshire Governor Christopher Sununu issued Emergency Order #4 pursuant to Executive Order 2020-04, which (1) prohibits an owner of non-restricted property or restricted property, as those terms are defined in RSA 540:1-a, from initiating eviction proceedings under RSA 540, and (2) prohibits all judicial and non-judicial foreclosure actions under RSA 479 or any other applicable law, rule or regulation, during the State of Emergency declared in Executive Order 2020-04.
- New Jersey: The New Jersey Legislature passed Assembly Bill 3859, which allows the New Jersey governor to issue an executive order during a Public Health Emergency, pursuant to the New Jersey Emergency Health Powers Act, prohibiting the removal of any lessee, tenant, or homeowner from a residential property as the result of an eviction or foreclosure action. Governor Philip Murphy subsequently issued Executive Order No. 106, which prohibits any lessee, tenant, homeowner or any other person from being removed from a residential property as a result of an eviction or foreclosure proceeding.
- Kansas: On March 17, 2020, Governor Laura Kelly issued Executive Order No. 20-06, which orders all financial institutions operating in Kansas to temporarily suspend the initiation of any mortgage foreclosure efforts or judicial proceedings and any commercial or residential eviction efforts or judicial proceedings until May 1, 2020.
Pending Legislation
- Massachusetts: The Massachusetts Legislature is considering House Docket No. 4935, which, if enacted, would impose a moratorium on evictions and foreclosures during the COVID-19 emergency.

- Virginia: Currently, Virginia House Bill 340 is on Governor Northam’s desk, and he has until April 11^th to take action on the bill. If passed, the bill would provide foreclosure and eviction protections for federal workers upon the closure of the federal government.

State Regulators:

In addition to state legislation and executive order, state regulators across the country have released guidance to regulated entities concerning the COVD-19 pandemic and indicating what the state regulators are doing in response. The Nationwide Multistate Licensing System (“NMLS”) has compiled state regulator guidance issued in response to COVID-19. The NMLS has posted this document to their website, and it is updated regularly. Below, we have included a summary of the information released by state regulators as of (March 20, 2020):

Alaska Department of Commerce, Community & Economic Development (“Department”): The Department posted guidance on its website stating that licensed mortgage-broker lenders may require licensed mortgage loan originators to work and undertaken licensed activities from home. The Department stated that it would not take administrative or other punitive action against a licensed mortgage loan originator or the sponsoring licensed company if the mortgage loan originator conducts activities requiring licensure from home. This guidance does not have an expiration date but is subject to revision.
Alabama State Banking Department (“Department”): The Department released guidance for any entity licensed by the Department. The Department instructed that licensees need to comply with all applicable statutes, regulations, and data security regulations. The Department noted that not all licenses may be able to work from home if their home location does comply with the applicable statutes, regulations, and data security regulations. This guidance does not have an expiration date but is subject to revision.
Arkansas Securities Department (“Department”): The Department released guidance for licensed mortgage loan companies, mortgage loan officers, and branch managers. The Department stated that mortgage loan companies may have mortgage loan officers work from home at unlicensed locations as long as state and federal data security standards are upkept. This guidance is in effect until June 1, 2020 but is subject to revision.
Colorado Department of Real Estate (“Department”): The Department released guidance that since Colorado law is silent as to the location at which mortgage loan originators are required to work. Therefore, the Department instructed that licensed mortgage loan originators may work from home. This guidance does not have an expiration date but is subject to revision.
Connecticut Department of Banking (“Department”): The Department released guidance for all consumer credit licensees. The Department is allowing consumer credit licensees to work from home during the CORVID-19 pandemic as long as the licensee follows applicable law, notifies the Department in writing, and that no licensable activity can take place at home with a member of the public. This guidance is in effect until April 30, 2020.
Iowa Division of Banking (“Division”): The Division released guidance for all entities that it regulates. The Division stated that all licensees may work from home during the CORVID-19 pandemic even if their home is an unlicensed office as long as appropriate data security measures are put into place. This guidance does not have an expiration date but is subject to revision.
Idaho Department of Finance (“Department”): The Department released guidance for all entities that it regulates. The Department is allowing licensed and registered entities to allow their employees to work from home even if that location is not a licensed location. Licensed and registered entities must keep up data security, may not advertise the unlicensed location as a licensed location, and may not meet with consumers or have consumers come to an unlicensed location. This guidance is in effect until June 30, 2020 but is subject to revision.
Indiana Department of Financial Institutions (“DFI”): The DFI issued temporary guidance offering licensees the ability to take precautions deemed necessary to avoid the risk of exposure or to comply with requirements of voluntary or mandated quarantines and is effective through June 30, 2020, unless otherwise modified or withdrawn.
Kansas Office of the State Bank Commissioner (“Commissioner”): The Commissioner released guidance for all entities that it regulates. The Commissioner is allowing licensed and registered entities to allow employees to work from home even if that location is not a licensed location. Licensed and registered entities must keep up adequate data security protection and may not take physical records out of the licensed location if they have confidential information. This guidance does not have an expiration date but is subject to revision.
Kentucky Department of Financial Institutions (“DFI”): The DFI released guidance to Kentucky-chartered financial institutions recommending that such institutions take certain actions in response to the COVID-19 pandemic. Such actions include, among others, (1) working with customers affected by the coronavirus to meet their financial needs, which may include waiving overdraft and/or minimum balance fees, restructuring existing loans, extending loan repayment terms, and easing terms for new loans, (2) managing COVID-19 related staffing issues, and (3) making sure business continuity plans include pandemic planning.
Louisiana Office of Financial Institutions Non-Depository Division (“Division”): The Division released guidance for all licensed mortgage lenders, brokers, and originators. The Division is allowing entities to close their licensed locations and work from home, but entities that do so much provide the Division with notice of the new location. This guidance is in effect until April 9, 2020, but is subject to revision.
Massachusetts Division of Banks (“Division”): The Division released guidance for all licensed entities. The Division is allowing licensed entities to work from home as long as the unlicensed location is not advertised to the public and licensed entities do not meet with consumers at unlicensed locations. This guidance does not have an expiration date but is subject to revision.
Maryland Commissioner of Financial Regulation (“Commissioner”): The Commissioner released guidance for all licensed mortgage brokers, lenders, and servicers. The Commissioner is allowing licensed mortgage brokers, lenders, and servicers to work from home provided that the work would not require the location to be licensed as a branch office under Maryland law. This guidance does not have an expiration date but is subject to revision. In addition, the Commissioner issued an Industry Advisory on March 19, 2020, advising the industry of Maryland Court of Appeals Chief Judge Mary Ellen Barbera’s March 18, 2020 order, which immediately stays all residential foreclosure and eviction actions in Maryland.
Michigan Department of Insurance and Financial Services (“DIFS”): The DIFS is seeking information regarding responses to the COVID-19 pandemic from all Michigan consumer finance licensees and registrants. Responses were due on Friday, March 20, 2020 by 5:00pm and were required to address whether (1) the licensee/registrant had temporarily or permanently reduced any services provided in their office locations or by your business, (2) whether the licensee/registrant had implemented a program to allow staff to work remotely and, if so, certain additional information about such program, (3) whether and in what way the licensee/registrant had communicated with their customers to provide them with information regarding any changes the licensee/registrant had implemented in response to the pandemic and how those changes may affect them, and (4) whether the licensee/registrant had proactively reached out to their customers to provide them with information concerning what they should do if they are having trouble making their loan payment.
Minnesota Department of Commerce (“Department”): The Department has issued separate guidance to Minnesota Industrial Loan & Thrift Companies, Licensed Mortgage Originators and Servicers (companies and individuals), Licensed Non-Depository Financial Institutions, and Regulated Loan Companies. The guidance is intend to address certain issues and questions related to changes in branch locations or employees working from home as a result of the COVID-19 pandemic.
Mississippi Department of Banking and Consumer Finance (“DBCF”): The DBCF released guidance for licensed mortgage loan originators. The DBCF is allowing licensed mortgage loan originators to work from home provided that data security measures are put in place and the licensed mortgage loan originator does not have consumers meet with the licensed mortgage loan originator at their home. This guidance does not have an expiration date but is subject to revision. The DBCF also issued separate guidance to Mississippi Mortgage Licensees and Consumer Finance Licensees regarding industry pandemic preparedness and outline flexibility in DBCF processes in response to the COVID-19 pandemic.
Montana Division of Banking and Financial Institutions (“DBFI”): On March 19, 2020, the DBFI issued a Supervisory Memorandum on Operations During Novel Coronavirus Situation, in which the DBFI provides the industry with answers to FAQs regarding preferred methods of communication as well as notification requirements for branch and loan production office closures and hours changes during the COVID-19 pandemic.
Nebraska Department of Baking and Finance (“DBF”): The DBF released guidance for licensed mortgage bankers and sponsored/licensed mortgage loan originators. The DBF is allowing mortgage bankers and mortgage loan originators to work from home provided that they notify the DBF and the DBF approves the new location. All physical documents must remain at a licensed location, but licensees may access information digitally. This guidance is in effect until December 31, 2020 but is subject to revision.
New Hampshire Banking Department (“Department”): The Department released guidance for licensed mortgage loan originators. The Department is allowing licensed mortgage loan originators to work from home even if that location further than 100 miles from their supervisory office as would otherwise be required under New Hampshire law. This guidance does not have an expiration date but is subject to revision.
New Mexico Financial Institutions Division (“Division”): The Division released guidance for all mortgage licensees. The Division is allowing all mortgage licensees to work from home provided that data security measures are put in place and no mortgage licensee advertise from or meet with consumers from their home if it is an unlicensed location. This guidance is in effect until May 31, 2020 but is subject to revision.
Nevada Division of Mortgage Lending (“Division”): The Division released guidance for all licensed mortgage companies and mortgage loan originators. The Division is allowing licensed mortgage companies and mortgage loan originators to work from home even if it would be considered an unlicensed location. This guidance is in effect until May 31, 2020 but is subject to revision.
New York Department of Financial Services (“NY DFS”): The NY DFS has asked licensees to submit plans to the NY DFS on how they plan to address the CORVID-19 pandemic. In addition, the NY DFS issued guidance to New York State regulated and exempt mortgage servicers regarding support for borrowers impacted by COVID-19.
Oklahoma Department of Consumer Credit (“Department”): The Department has released guidance for licensed mortgage loan originators and their employees. The Department has stated that licensed mortgage loan originators and their employees may work from home as long as they put in place appropriate data security measures. This guidance is in effect until April 30, 2020 but is subject to revision.
Oregon Division of Financial Regulation (“Division”): The Division has released guidance for all licensed entities. Licensed entities can work from home provided that the entity provides notice to the department, the entity has procedures in place for data security and more broadly for working from home, and no consumers at met with at unlicensed locations. Mortgage loan originators must keep all physical records at a licensed location. This guidance is in effect until April 30, 2020 but is subject to revision.
Pennsylvania Department of Banking and Securities (“Department”): The Department issued FAQs related to compliance with Governor Wolf’s Order that non-life-sustaining businesses shut down their physical operations.
Puerto Rico Office of the Commissioner of Financial Institutions (“OCFI”): The OCFI issued Circular Letter CIF Number CC-2020-002 to all financial institutions required to file reports with the OCFI, which extends the deadlines for filing such reports in light of the governmental closure ordered by Governor Garced, due to the State of Emergency declared in response to COVID-19.
Rhode Island Division of Banking (“Division”): The Division has released guidance for licensed mortgage loan originators, mortgage lenders, loan brokers, and exempt company registrants. The Division is allowing licensed mortgage loan originators to work from home if they and their sponsoring entities have adequate data security measure in place. Consumers are not allowed to visit any unlicensed location including the home of a mortgage loan originator if it is not a licensed location. This guidance is in effect until April 30, 2020 but is subject to revision.
South Carolina Consumer Finance Division of the Board of Financial Institutions (“Division”): The Division has released guidance for licensed mortgage origination and servicing companies. Licensed mortgage origination and servicing companies can work from home provided that they have a contingency plan in place, adequate data security measures, and do not remove any physical records from licensed offices. This guidance is in effect until April 30, 2020 but is subject to revision.
South Dakota Division of Banking (“Division”): The Division had released guidance for licensed mortgage loan originators and their sponsoring entities. Licensed mortgage loan originators can work from home provided that they have adequate data security measures in place and do not take any physical records out of licensed locations. This guidance is in effect until June 5, 2020 but is subject to revision.
Texas Office of Consumer Credit Commissioner (“Commissioner”): The Commissioner has released guidance for licensed regulated lenders. All licensed regulated lenders can work from home provided that they prepare a written plan describing the steps it is taking, have adequate data security measures, and ensure that all physical records remain in a licensed location. This guidance is in effect until May 31, 2020 but is subject to revision.
Texas Department of Savings and Mortgage Lending (“Department”): The Department has issued guidance temporarily suspending any requirement that a physical office be open to the public during posted normal business hours. Additionally, licensed mortgage loan originators may work from home or another remote location, whether located in Texas or another state, even if the home or remote location is not a licensed branch. The guidance provides certain requirements in the event that a licensed residential mortgage loan originator or mortgage loan staff work remotely. These allowances do not amend Texas Financial Code, Chapter 156 and/or 157 and are being allowed strictly due to the COVID-19 pandemic.
Vermont Department of Financial Regulation (“Department”): The Department has released guidance for licensed mortgage loan originators and their sponsoring entities. All licensed mortgage loan originators may work from home provided that no licensable activity is taken place with a consumer at an unlicensed location, adequate data security measures are put into place, and a plan is contingency plan is put in place. This guidance does not have a current expiration date but is subject to revision.
Washington Department of Financial Institutions (“Department”): The Department released guidance for licensed mortgage loan originators and their sponsoring entities. All licensed mortgage loan originators may work from home provided that adequate data security measures are put in place. Consumers are not allowed to visit licensed mortgage loan originators at unlicensed locations. This guidance is effective until June 5, 2020 but is subject to change. The DFI also issued guidance to Washington regulated and exempt residential mortgage loan servicers regarding support for borrowers impacted by COVID-19. The guidance urges such institutions to take reasonable and prudent actions, subject to the requirements of any related guarantees or insurance policies, to support those adversely impacted by COVID-19.
Wisconsin Department of Financial Institutions (“Department”): The Department released guidance for licensed mortgage loan originators. All licensed mortgage loan originators may work from home provided that their sponsoring entity notify the Department, a list is kept of all mortgage loan originators who elect to work from home where the home is not a licensed branch, appropriate data security measures are taken, and no physical records are present at unlicensed locations. Consumers are not allowed to visit unlicensed locations. This guidance does not have a current expiration date but is subject to revision.
West Virginia Division of Financial Institutions (“DFI”): The DFI issued guidance to West Virginia Regulated Financial Institutions allowing employees of regulated entities to temporarily work from home or some other remote location approved by the financial institutions, whether located in West Virginia or another state. Regulated financial institutions may permit employees to work at home or from a designated remote location, to the extent that the position allows, as long as privacy and security issues may be adequately addressed. The guidance is in effect from March 13, 2020 through May 1, 2020.

Takeaway

As the federal government and the states work feverishly to address the growing concerns surrounding the COVID-19 pandemic, members of the financial services industry must stay abreast of the rapid changes in the legal and regulatory landscape. We will continue to monitor for new developments and will update this post to highlight additional federal or state guidance that is issued.