The RESPONSE: Federal and State Actions Affecting the Financial Services Industry - Edition 2
Like our clients, Holland & Knight's Financial Services Industry Group is committed to actively contributing to our nation's response to the coronavirus (COVID-19) pandemic and related economic fallout and recovery efforts. For our part, Holland & Knight's 300-plus lawyers and professionals who comprise our Financial Services Industry Group want to ensure that bank and non-bank financial institutions, financial intermediaries and other financial services industry participants and stakeholders have access to timely, accurate and succinct updates on federal and state legislative, regulatory and administrative responses to the COVID-19 pandemic that are most relevant to our financial services clients.
To that end, we are pleased to share with you the latest edition of The RESPONSE.
Federal Regulators Encourage Small-Dollar Loans
Five federal financial regulatory agencies issued a joint statement on March 26 encouraging banks, savings associations and credit unions to offer responsible small-dollar loans to consumers and small businesses in response to COVID-19, with such loans eligible to be offered through a variety of structures, including open-end lines of credit, closed-end installment loans or appropriately structured single payment loans. In the joint statements, the agencies encouraged banks, savings associations and credit unions to consider workout strategies designed to help borrowers who are experiencing unexpected circumstances and cannot repay a loan as structured to be able to repay the principal of the loan while mitigating the need to re-borrow.
Federal and State Regulators Offer Regulatory Reporting Relief
The Federal Reserve announced on March 26 that it will not take action against a financial institution with $5 billion or less in total assets for submitting its March 31, 2020, Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) or Financial Statements of U.S. Nonbank Subsidiaries of U.S. Bank Holding Companies (FR Y-11) after the official filing deadline, as long as the applicable report is submitted within 30 days of the official filing due date. The OCC issued a similar statement on March 25 following an announcement by the FFIEC highlighting the coordination and collaboration among its members to address COVID-19.
FDIC Announces Temporary Alternative Procedures for Sending Supervision-Related Correspondence
On March 26, the FDIC issued a Financial Institutions Letter establishing temporary measures for financial institutions and other parties electronically submitting mail and email for official business purposes related to supervisory matters.
Texas Financial Services Regulators Encourage Loan Modifications
The Texas Office of Consumer Credit Commissioner on March 26 issued a series of revised bulletins urging regulated licensees to work with consumers affected by COVID-19 by, among other things, working out contract modifications. The below bulletins provide additional information to help facilitate business through the crisis:
- Revised Motor Vehicle Advisory Bulletin B20-6
- Regulated Lender Advisory Bulletin B20-2
- Credit Access Business Advisory Bulletin B20-4
- Property Tax Lender Advisory Bulletin B20-5
For questions, comments or additional information on any of these areas, please reach out to the Holland & Knight professional with whom you work or one of the following contacts in our Financial Services Industry Group.
About Our Financial Services Industry Group:
Participants in the financial services industry require sophisticated legal counsel to navigate a complex, ever-changing environment and respond to opportunities and challenges as they arise. With more than 300 members throughout the firm, Holland & Knight's Financial Services Industry Group has the depth and experience to effectively serve borrowers and lenders in all of their legal matters, including corporate services, international operations, labor and employment, litigation and dispute resolution, public policy and regulation, real estate and white collar defense. The combination of our thorough knowledge and a sincere commitment to provide responsive service is why clients entrust our team to handle their legal needs.
Holland & Knight has established a COVID-19 Response Team to help clients respond to a variety of business and legal issues they may be facing in this crisis. Please visit Holland & Knight's website for the latest COVID-19 news and updates important to your business.