DBO Code Clarification; Remote Notary; NCUA Meeting and Letters

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The California Department of Business Oversight (DBO) now has a list on its website of credit unions offering financial relief. And in Nevada, Governor Steve Sisolak signed an emergency directive which expands upon and clarifies previous directives for non-essential business closures and mandated social distancing. 

List of CUs Providing Financial Relief Programs
The DBO has a webpage listing of credit unions offering financial relief. As the California Credit Union League supplies updates to the DBO for its listing, the League will reach out to credit unions to confirm their support of relief programs.

Additionally, the DBO has issued a Consumer Alert that warns homeowners, borrowers, and investors to be vigilant against scams and unlawful activities seeking to exploit heightened economic anxieties.

Loan Extensions
California Code of Regulations (CCR 30.801) generally limit loan extensions to two 60-day extensions per loan for the life of the loan. Some credit union members may have already received two extensions (Carr Fire, Camp Fire, etc.), and credit unions are concerned about this limit for extensions related to the current Coronavirus crisis. In addition, credit unions have asked for clarification regarding the permissibility of adding missed payments to the back end of a loan.

The League, working with the DBO, has reviewed the relevant codes to ensure credit unions can help members affected by the COVID-19 crisis. Please click here for clarification on these issues.

Remote Notary Services in CA
The League recently sent a joint letter to California Secretary of State Alex Padilla and Governor Gavin Newsom requesting that the Governor issue an emergency executive order recognizing the validity of documents that are legally remotely notarized. This would allow credit unions and a number of businesses to move forward on pending contracts and transactions without compromising social distancing directives or public health.
 
The DBO has now asked for specific information on how this issue is impacting credit unions and their members. 

Impact Survey
Each week, the Leagues are requesting credit unions in California and Nevada to complete the COVID-19 Impact Survey to help track the impact credit unions are making in helping consumers financially weather the crisis. The data coming in is compelling and will be used to routinely tell the story of credit unions' monumental impact they are making as an industry. This will provide an opportunity to communicate an ever-growing impact each week. 

Nevada Update
At a press conference Wednesday, Nevada Governor Steve Sisolak announced he has signed Emergency Directive 013 in response to COVID-19, which expands upon and clarifies previous directives for non-essential business closures and mandated social distancing.

Section 5 of the directive requires the Nevada Occupational Safety and Health Administration (OSHA) to ensure essential businesses “provide adequate protections to their workers and adopt sanitation protocols that minimize the risk of spread of COVID-19 among their workforce.” The directive will remain in effect until April 30 unless extended by a further action from the Governor.

NCUA’S Latest Relief Letters
The National Credit Union Administration issued Letter to Credit Unions #20-CU-06 yesterday, which outlines the SBA’s Paycheck Protection Program and COVID-19 Economic Injury Disaster Loans.

The NCUA has also issued a letter providing vital information about key changes affecting credit unions due to the recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Topics include the following: Central Liquidity Facility; Insured Deposits Threshold; Temporary Relief from Troubled Debt Restructurings; Paycheck Protection Program; Optional Temporary Relief from Current Expected Credit Losses; Credit Protection During COVID-19; Foreclosure Moratorium on Single Family; Mortgages and Consumer Right to Request Forbearance; Forbearance of Residential; and Mortgage Loan Payments for Multifamily Properties with Federally Backed Loans.

NCUA COVID-19 Regulatory Relief
The NCUA will hold its April board meeting on Thursday, April 16 at 7 a.m. (Pacific). The Leagues will monitor the NCUA Board meeting and provide an update soon after.

The following items will be addressed to assist in regulatory relief overall, and in relation to the COVID-19 pandemic:

  • Board Briefing, Interim Final Rule, Part 725, Central Liquidity Facility.
  • Temporary Final Rule, Part 701, Regulatory Relief in Response to COVID-19 Pandemic.
  • Interim Final Rule, Part 722, Real Estate Appraisal Relief.
  • Final Rule, Part 722, Real Estate Appraisal Threshold Levels.

Complimentary BCP Pandemic Tool
As a benefit of League membership, PolicyWorks — the Leagues’ compliance services partner and provider — is offering credit unions complimentary access to the new ViClarity Business Continuity Plan (BCP) Self-Assessment Pandemic Execution tool until Sept. 1, 2020. You can review your current BCP for pandemic execution and identify gaps with this easy-to-use tool. To request access, complete this form.

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