Polis issues executive order extending foreclosure, eviction prohibitions

Governor Polis has extended for an additional 30 days , executive orders prohibiting residential and commercial evictions and permitting Public Trustees to extend deadlines in foreclosure proceedings.

The Executive Order amends and extends Executive Orders D 2020 012 and D 2020 031 that were issued March 30 and made effective for the subsequent 30 days.

Landlords and lenders continue to be prohibited from charging any late fees or penalties for any breach of the terms of a lease or rental agreement due to nonpayment. 

The order clarifies that it does not  relieve individuals from their obligation to make mortgage payments or rent payments.  

It does not, howeve r, address how the past due payments can be repaid. 

Lastly,county treasurers have been directed to waive delinquent interest that may accrue as a result of delinquent tax payments.
E-notary authorization also extended

Governor Polis has also
extended for 30 days Executive Orders D 2020 019 , ordering the temporary suspension of the personal appearance requirement before notarial officers to perform notarizations and authorizing the Secretary of State to promulgate and issue temporary emergency rules to permit notarial officers to perform remote notarizations. 
Federal Reserve expands access to Paycheck Protection Program Liquidity Facility (PPPLF)

In a statement on Thursday, the Federal Reserve announced it would expand access to its Paycheck Protection Program Lending Facility to include additional lenders, and expands the collateral that can be pledged.

As a result of the changes, all PPP lenders approved by the SBA, including non-depository institution lenders, are now eligible to participate in the PPPLF. SBA-qualified PPP lenders include banks, credit unions, Community Development Financial Institutions, members of the Farm Credit System, small business lending companies licensed by the SBA, and some financial technology firms.

When the PPPLF was announced, the Federal Reserve said the facility would immediately lend to depository institutions and that non-depository institutions would be added as soon as possible.
Proposal to create state Family Medical Leave Insurance fund dead - proponents shift efforts toward ballot initiative

On Thursday night, sponsors of 2020 legislation aimed at creating a statewide Family Medical Leave Insurance Fund announced that they will not pursue legislation when the General Assembly reconvenes in May.

Instead, they are putting their support behind a ballot initiative that has been approved for the 2020 Election.

CBA was opposed to the legislation and will work with the board of directors to determine what action, if any, it will take regarding the 2020 ballot proposal.
Update from FDIC regarding Economic Impact Payments

The FDIC this week issued additional FAQs for bankers to use regarding cashing Economic Impact payments.

20. [04/23/2020] Offset of Deposits. Are Economic Impact payments subject to offset for charged-off loans or other obligations to the financial institution? The CARES Act does not restrict banks from using economic impact payment funds to pay consumers’ old debts, e.g., delinquent loans or overdraft or other fees, where permitted by applicable law. However, the FDIC and other bank regulatory agencies have issued statements encouraging institutions to work with consumers and communities affected by COVID-19. For more information on assisting consumers in light of COVID-19 developments, see the FDIC’s Statement on Financial Institutions Working with Customers Affected by the Coronavirus and Regulatory and Supervisory Assistance (FIL-17-2020), issued on March 13, 2020. COVID-19 related developments continue to evolve. We recommend that you monitor the U.S. Treasury Department’s website in the event it issues any new information addressing the offset of economic impact payments. 16 The criteria are within the definition of statutory multifamily mortgage in part 324.2. Loans that meet the definition of statutory multifamily mortgage are eligible for 50 percent risk weight per section 32(g). 12

21. [04/23/2020] Garnishment. Are Economic Impact payments subject to garnishment? Specific exemptions apply prohibiting garnishment of economic impact funds, such as for federal garnishment orders (CARES Act), certain federal benefits payments, certain unemployment benefits (state law), and student loan debt (CARES Act). Absent additional guidance or clarification from the U.S. Department of Treasury, Economic Impact payments may otherwise be garnished in accordance with garnishment orders currently in force. For example, payments may be garnished to provide child support pursuant to a court order. COVID-19 related developments continue to evolve. We recommend that you monitor the U.S. Treasury Department’s website in the event it issues any new information addressing garnishment protections regarding economic impact payments. Some states and local jurisdictions have suspended enforcement of certain garnishment orders, and banks are encouraged to monitor developments from local and state jurisdictions.

22. [04/23/2020] Deposits into Closed Accounts. What should a financial institution do if an Economic Impact payment is direct deposited to an account that is closed? The payment must be returned. The Green Book, issued by the U.S. Department of Treasury’s Bureau of Fiscal Service, is a comprehensive guide for financial institutions that receive ACH payments from and send payments (i.e. collections) to the federal government. As the National Automated Clearing House Association (NACHA) notes in its “ACH Network Rules Pandemic-Related Frequently Asked Questions” (Updated April 16, 2020), according to the Green Book (page 4-2), if a U.S. Treasury payment is made to a closed account, the receiving depository financial institution (RDFI) should return the payment. The Green Book states in Chapter 4 that all ACH payments must be returned in accordance with the NACHA Operating Rules and Guidelines, including when an account is closed or does not exist. Most ACH returns to the IRS will result in a paper check being issued; therefore, RDFIs must make appropriate use of Return Reason Codes.

23. [04/23/2020] Payment to the Deceased. What should a financial institution do if an Economic Impact payment is direct deposited to an account whose owner is deceased? The Green Book, issued by the U.S. Department of Treasury’s Bureau of Fiscal Service, is a comprehensive guide for financial institutions that receive ACH payments from and send payments (i.e. collections) to the federal government. According to the Green Book (page 4-2), a financial institution must return all ACH payments if the financial institution receives the payment after having knowledge of the death of a recipient. The financial institution should also refer to the National Automated Clearing House Association guidelines, in addition to referring to state law regarding decedent funds. COVID-19 related developments continue to evolve. We recommend that you monitor the U.S. Treasury Department’s website and NACHA website.

24. [04/23/2020] Fraudulent Economic Impact Checks. We are worried about individuals presenting fraudulent IRS economic impact checks. What can a bank do to reduce the risk of accepting a fraudulent paper check? 13 The United States Treasury Department has informed us that economic impact checks will look similar to IRS tax refund checks. They can be verified using the Treasury Check Verification Application ( https://tcva.fiscal.treasury.gov/approot/tcva/TCVA Welcome.html), provided that the financial institution has a valid routing transit number, check number and check amount. This site also provides a description of Treasury Check Security Features. Financial institutions should be alert to increased attempts of fraud. Federal law enforcement agencies are observing a rise in economic relief fraud and expect the fraud attempts to continue throughout the pandemic.

25. [04/23/2020] Accounts for Unbanked Consumers. Can banks open accounts for unbanked consumers to receive economic relief payments? Yes. The FDIC is supportive of efforts to bring unbanked consumers into the banking system, and encourages financial institutions to consider opening such accounts so that these consumers can receive their economic impact payments safely and quickly. Financial institutions should take a risk-based approach in assessing individual customer relationships. There is significant flexibility built into the existing rules. The customer identification program (CIP) rule17 asks for the collection of name, address, date of birth and a taxpayer identification number when an account relationship is established. This information enables a bank to form a reasonable belief that it knows the true identity of each customer wanting to establish an account relationship. Under the CIP rule, a bank must have risk-based procedures for verifying a customer’s identity. Banks may use various methods to verify a customer’s identity including verification through information such as a utility bill or public databases. 17 31 CFR 1010.220. 14 
Colorado Bankers Association
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