Insights from Boardman Clark's Banking Group.
The Consumer Financial Protection Bureau (“CFPB”) has amended Regulation X to temporarily allow mortgage servicers to offer borrowers who are experiencing financial hardship as a result of the COVID-19 pandemic certain loss mitigation options without obtaining a complete loss mitigation application.
On April 28, 2020, the Small Business Administration (“SBA”) released an interim final rule providing guidance to lenders on loan disbursements under the PPP. The interim final rule provides that from this point on, lenders must disburse PPP loans a one-time full disbursement within 10 calendar days of loan approval.
Today, April 8, 2020, the U.S. Treasury Department released an updated FAQ that addresses questions that lenders have regarding documenting, closing, and funding loans under the Paycheck Protection Program.
The Treasury Department has updated its FAQs on the SBA PPP loan program. The FAQs can be found here It answers some but not all of the lenders’ questions.
Today, March 31, 2020, the U.S. Treasury Department issued Guidance on the Paycheck Protection Program for lenders and borrowers.
Governor Ever’s Emergency Order #15 (the “Order”) broadly prohibits landlords from serving a notice terminating tenancy for any reason or for filing a lawsuit for eviction UNLESS the eviction is necessary to prevent “an imminent threat of serious physical harm to another person.”
On March 24, 2020, Governor Evers ordered the Wisconsin Department of Health Services (DHS) to require all non-essential businesses and operations to close their facilities except for minimum basic operation as defined by the order. Under the order, financial institutions are permitted to remain open as they are listed as one of several essential businesses and operations.
On March 22, the Federal Reserve, OCC, CFPB, NCUA and State Banking Regulators issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.” The regulators recognize that the COVID-19 outbreak will adversely impact banks and their borrowers, and have taken steps designed to help relieve these impacts.
For the last three years we have been writing about the new overtime rule under the Fair Labor Standards Act (FLSA). The overtime rule has been revised and now reissued by the Department of Labor (DOL) under the Trump Administration. The “final” rule has been issued and will go into effect on January 1, 2020.
As attorneys, we often talk to directors about abstaining. For example, if a board of directors has to make a decision about something – say, whether or not the bank should lease specific office space – and a director has a personal conflict of interest in the decision – say, she is a part owner of the LLC that owns the property – we may advise the conflicted director to “abstain” from voting on the decision. This is one way a director can deal with a conflict of interest consistently with her fiduciary duties. By abstaining, the director prevents her personal interest from affecting the validity of the board’s decision.
The Department of Labor’s Fiduciary Rule has certainly been in the news lately, and has been the source of great confusion.
In a recent case before the Wisconsin Court of Appeals, language in the WBA continuing guaranty (unlimited) form helped the Bank obtain a court victory against a guarantor. So what legal arguments were made by the guarantor and what language in the WBA continuing guaranty form helped the Bank win this case?
Key Takeaways from the May 31 FDIC's Community Banking Initiative
As online and mobile banking platforms continue to expand and new services come on line, banks should pay special attention to the agreements and terms and conditions governing the relationship between the bank and its customers.
Wisconsin enacted certain UCC Article 9 amendments in 2013, including the "only if" rule for designating an individual debtor's name on a UCC financing statement. Under the "only if" rule, the UCC financing statement is sufficient only if the name of the debtor on the UCC financing statement is exactly the same as it appears on the debtor's unexpired Wisconsin driver's license.
Modern technology provides banks with a variety of tools to communicate with customers, including text messaging, social media, and autodialed calls. It's critical to understand the type of customer consent required for these communication methods under the Telephone Consumer Protection Act (TCPA).
If transfers of stock are not closely monitored, a transfer to an ineligible shareholder could inadvertently occur and cause the loss of S corporation status for the banking organization.
On February 3, 2017, President Trump issued two directives affecting the U.S. financial industry. These directives may be the first indication that the new administration is taking a hard look at regulations impacting the financial industry.
Recent events at Wells Fargo led to an amendment of its bylaws requiring the separation of the CEO and Chairman roles, and these events are also driving the current discussion calling for the separation of the CEO and Chairman roles at other big banks.
We are pleased to take advantage of this opportunity to communicate timely, relevant and practical information to our bank clients.