What CBA is doing for you and your bank amid COVID-19
Read on to learn the
action CBA has taken
to secure banks’ ability to serve customers during the pandemic
SBA emergency funding is available.
Monday, March 16, CBA asked the Governor to contact the SBA requesting the designation to be eligible for the additional funding. The funding was approved March 19.
Colorado small businesses impacted by COVID-19 can seek individual small business loans up to $2M as part of the Small Business Administration’s Economic Injury Disaster Loan program. Small businesses throughout all 64 counties may seek SBA Economic Injury Disaster Loans. Governor Jared Polis announced that Colorado’s application for federal disaster area designation has been approved.
Requested banking be designated as essential.
March 16, CBA requested that banking be designated as essential in case of a “shelter–in-place” order.
Such an order has yet to be put in place, but we have been assured that banking will be deemed essential and not mandated to close. However, lobbies may be required to close to reduce person-to-person contact.
Need to file and release deeds.
CBA was made aware
that some county clerk offices had closed, making it impossible for consumers to take advantage of record low rates to refinance. We promptly contacted the administration requesting assistance. In this time of employment uncertainty, it is vitally important that consumers can refinance to lower their mortgage costs. This was addressed in the Economic Response Order of March 20 (link below).
I direct that all County Clerks and Recorders shall provide continued access, to the best extent possible, to financial institutions seeking to secure real interests in real property by recording deeds and other related documents to ensure that the process of a residential or commercial refinance can be completed.
No moratorium on foreclosures.
We also stressed to the administration that a foreclosure moratorium sends the wrong message and is unnecessary. Individuals who can pay as agreed on their obligation need to continue to do so, while those who are experiencing hardship should contact their lender.
Banks are voluntarily doing all that is possible to meet their customers’ needs. It is all but impossible to process a foreclosure during this time period. All foreclosures require a judicial Rule 120 hearing. We have been told that courts are not accepting those hearings at this time. Governor Polis addressed foreclosure and evictions in the Economic Response Order of March 20 (link below) by encouraging lenders to work with borrowers. Previous staff drafts of the order were more forceful.
I direct DORA, through the Divisions of Banking and Financial Services, to work with
State-chartered financial institutions to identify practices and policies to combat the threat of residential and commercial foreclosures and displacement to individuals and small businesses. I also direct DORA to take steps to encourage banks, credit unions, and other financial institutions that are holding residential or commercial mortgages to halt foreclosures and related evictions when foreclosure and foreclosure-related evictions arise from a substantial decrease in household and business income due to the impacts of the COVID-19 pandemic. Further, I direct DORA to encourage these financial institutions to provide a ninety (90) day deferment of payment for all consumer loans, including residential and commercial mortgages, refinances, auto loans, and student loans, and small business loans for customers and businesses that have been economically impacted by COVID-19.