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2020 in Review

Issuer
Congressional materials
Document type
2021 01 12 A28147 D224218 Fazio Hollinshead Beatty Bouton Dfi Presentation
Date
2021-01-12
Case
2021 01 12 A28147 D224218 Fazio Hollinshead Beatty Bouton Dfi Presentation

Summary

A 2020 in Review slide presentation by the Washington State Department of Financial Institutions (DFI), dated January 12, 2021, with sections by Cindy Fazio, Director of Consumer Services, Roberta Hollinshead, Director of Banks, Bill Beatty, Director of Securities, and Drew Bouton of Policy & Legislation. The consumer services slides cover mortgage servicer guidance issued March 20, 2020 and report that 31,530 of 34,406 Washington first-lien mortgage loans (91.6%) were in forbearance as of September 30, 2020. The Paycheck Protection Program slides report 5,212,128 loans totaling $525,012,201,124 nationally and 107,659 loans totaling $12,464,918,993 in Washington, with a breakdown by loan size. Other slides summarize Title III of the Emergency Coronavirus Relief Act of 2020, the repeal of debenture company laws by Senate Bill 6131 (2020), and DFI request bills HB 1104 and SB 5077.

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Full text

2020 in Review




Washington State Department of Financial Institutions
       “Leading the way in consumer protection and financial services regulation .”
DFI Consumer Services
Pandemic Response

Cindy Fazio, Director of Consumer Services




    Washington State Department of Financial Institutions
           “Leading the way in consumer protection and financial services regulation .”
Pandemic Response
Cindy Fazio, Director of Consumer Services

 Mortgage Servicer Guidance

 Forbearances, not reporting to credit bureaus,
 waiving late fees, postponing foreclosure,
 communicating with borrowers.
 • Issued originally March 20, 2020.
 • Amended to track with Government Sponsored.
   Entities (GSEs)
 • Expires February 28, 2021.


 Washington State Department of Financial Institutions
        “Leading the way in consumer protection and financial services regulation .”
Mortgage Assistance Team
DFI Consumer Services


Made up of Financial Legal Examiners.

With the assistance of DFI’s front desk staff and the
Enforcement Unit’s Program Specialists, takes calls
from Washington homeowners, landlords, business
owners, and other Washington residents.

Callers always reach a live person.



 Washington State Department of Financial Institutions
        “Leading the way in consumer protection and financial services regulation .”
Student Loans
DFI Consumer Services


Student Education Loan Servicing

Negotiations for forbearance to track with the
Department of Education’s guidance to its
contractors servicing federal loans.




 Washington State Department of Financial Institutions
        “Leading the way in consumer protection and financial services regulation .”
Mortgage Forbearances in Washington



Washington State first-lien 1-4 family
residential mortgage loans reported by
servicers to Mortgage Bankers Association
as of September 30, 2020; 31,530 out of a
total of 34,406 (or 91.6%) are in forbearance.




 Washington State Department of Financial Institutions
        “Leading the way in consumer protection and financial services regulation .”
Paycheck Protection Program -
Past and Present

Roberta Hollinshead, Director of Banks




    Washington State Department of Financial Institutions
           “Leading the way in consumer protection and financial services regulation .”
Paycheck Protection Program in Review
    Roberta Hollinshead, Director of Banks

                 Loan Count                   Net Dollars                Avg. Loan Size

 TOTAL            5,212,128              $525,012,201,124                        $101K

WA TOTAL            107,659               $12,464,918,993                        $116K


  Source : https://home.treasury.gov/system/files/136/SBA-Paycheck-
              Protection-Program-Loan-Report-Round2.pdf

                        PPP Program ended 8/8/2020


 Washington State Department of Financial Institutions
           “Leading the way in consumer protection and financial services regulation .”
   PPP Lending in 2020 - Breakdown
       Loan Size       Loan Count              Net Dollars         % of # Count % of $ Amount
$50K and Under         3,574,110           $62,742,565,653             68.6%                      12.0%

>$50K - $100K           683,785            $48,676,961,052             13.1%                      9.3%

>$100K - $150K          294,557            $36,058,010,813              5.7%                      6.9%

>$150K - $350K          377,797            $84,782,932,509              7.2%                      16.1%

>$350K - $1M            199,679           $113,558,427,234              3.8%                      21.6%

>$1M - $2M               53,218            $73,887,171,387              1.0%                      14.1%

>$2M                     28,982           $105,306,132,476              0.6%                      20.0%

                         Percent of # Count < $150K = 87.4%

       Washington State Department of Financial Institutions
                   “Leading the way in consumer protection and financial services regulation .”
 Emergency Coronavirus Relief Act of 2020
              Passed December 21, 2020

Title III – Continuing the Paycheck Protection
Program and Other Small Business Support

• $325 billion in additional small business
  assistance.
• Loan forgiveness process simplified for
  borrowers with PPP loans of $150,000 or less.
• Hardest-hit small businesses to receive a 2nd PPP
  loan.


   Washington State Department of Financial Institutions
          “Leading the way in consumer protection and financial services regulation .”
   Emergency Coronavirus Relief Act of 2020
                    Passed December 21, 2020

Title III – Continued.
• Extends eligibility to additional business types and
  forgivable business expenses.
• Funding set-asides for loans made by small community
  lenders to small businesses with 10 or fewer employees.
• Ext. of Sec. 1112 of the CARES Act - provides payment of
  principal, interest, and associated fees on qualifying SBA
  7(a), 504 and microloans.
Click here for the full text of the Emergency Coronavirus Relief Act of 2020




      Washington State Department of Financial Institutions
                “Leading the way in consumer protection and financial services regulation .”
Debenture Company Act Repeal

Bill Beatty, Director of Securities




    Washington State Department of Financial Institutions
           “Leading the way in consumer protection and financial services regulation .”
Debenture Company Act Repeal

• At DFI’s request, Senate Bill 6131 (2020)
  repealed the debenture company laws
  from the Securities Act of Washington,
  chapter 21.20 RCW.

• These provisions were obsolete and
  effectively prevented the registration of
  debt offerings by nonprofit entities.



Washington State Department of Financial Institutions
       “Leading the way in consumer protection and financial services regulation .”
  Applications Post Repeal
• Since the passage of SB 6131, DFI has
  received two dozen applications for
  registration of debt offerings.
• These offerings came from a variety of
  issuers, including:
    • Church extension funds (19)
    • Social impact investing fund (1)
    • For-profit start-up company (1)
    • Community Development Financial
      Institutions (2)
   • CUSO (1)
Washington State Department of Financial Institutions
        “Leading the way in consumer protection and financial services regulation .”
    Review of New Applications

• Each of these applications has been
  carefully reviewed by staff attorneys.
• Issues we have addressed include
  automatic renewal of term notes, ensuring
  appropriate controls are in place for
  affiliated transactions, and marketing
  concerns.
• To date, of the two dozen applications we
  have received, seven offerings have been
  registered.
Washington State Department of Financial Institutions
       “Leading the way in consumer protection and financial services regulation .”
2021 DFI Request Legislation

Drew Bouton, Policy & Legislation




   Washington State Department of Financial Institutions
          “Leading the way in consumer protection and financial services regulation .”
                             DFI Bills


HB 1104 – Extending the Operations of the
Mortgage Lending Fraud Prosecutions
Account.

SB 5077 – Mortgage Loan Originators
Residence Workplace

No companions.


Washington State Department of Financial Institutions
       “Leading the way in consumer protection and financial services regulation .”
                      Thank You


Drew Bouton@dfi.wa.gov

(360) 764-0659

www.dfi.wa.gov



Washington State Department of Financial Institutions
       “Leading the way in consumer protection and financial services regulation .”


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