b'COVID-19 continued from page 7by Fannie Mae, Freddie Mac, thesettlement; wholesale funding;financial products like real property loans Department of Housing and Urbaninsurance services; consumer andare essential businesses in the Financial Development (HUD/FHA), thecommercial lending; and capitalServices Sector because they are other Veterans Administration and themarkets activities). credit and financing organizations . . . and U.S. Department of Agriculture. services that support these functions as Workers who are needed todefined in the Financial Services Sector 3.The article does not analyzeprovide business, commercial, andby the Cybersecurity & Infrastructure every local ordinance.As aconsumer access to bank and non- Security Agency.But, again, nothing has result, additional restrictionsbank financial services and lendingbeen tested at this point so there is always could apply in a particular Countyservices, including ATMs, lendingsome risk that a court could find otherwise.or City.Please consult counseland money transmission, and to before proceeding with any actionmove currency, checks, securities,One practice point worth mentioningif discussed herein. and payments (e.g., armored cashyou decide to rely on the financial services carriers). exceptions to any state or local stay at 4.Regardless of specific regulations,home orders, you may want to consider we expect Courts to lookAmendments in Other Community- orproviding any employees who are coming unfavorably on foreclosure effortsGovernment-Based Operations andto work with a letter that they can use against those whose income wasEssential Functions included the following: to articulate why they are going to work, negatively affected or medicalshould they get stopped for any reason. expenses substantially increasedStaff at government offices whoWhile the CMA was asked to prepare by COVID-19.perform title search, notary anda general letter to that effect, it is not recording services in support ofpractical since the landscape is constantly Are private lenders exemptmortgage and real estate serviceschanging.That said, most CMA members from Californias Stay at Homeand transactions can read the order and draft their own Order? letters or consult with counsel.Residential and commercial Likely.On March 19th, Governor Newsomreal estate services, includingCan a private lender charge issued a statewide Stay at Home Order.settlement services.late charges or default interest The Order requires all individuals living inright now?the State of California to stay home or atOne could make a very good argument their place of residence except as neededthat private lenders and loan servicers, asYes, but .Currently, there is no prohibition to maintain continuity of operationswell as the businesses that support them,on private lenders charging late fees or of the federal critical infrastructurefit under the above definitions includeddefault interest.However, doing so in sectors as outlined at https://www.cisa.gov/ in the Financial Services Sector.However,todays climate may be viewed negatively critical-infrastructure-sectors.As of the datesince the Governors order has not beenby a court.The Governors Press release of the Order, federal critical infrastructuretested, no one can be sure how a courtdated March 25, 2020 announced that sectors included the Financial Serviceswould rule on the scope of the financialcertain financial institutions will waive Sector, defined as thousands of depositoryservices exception. or refund at least the following for institutions, providers of investmentcustomers who have requested assistance: products, insurance companies, otherIn addition, there are several county- Mortgage-related late fees.In addition, credit and financing organizationsspecific Shelter in Place Orders thatthe Department of Business Oversight and the providers of critical financialprovide specific exemptions for operation(DBO) provided similar guidance to its utilities and services that support theseof financial and legal services as essentiallicensees in correspondence issued that functions. [Emphasis added.]Moreover,businesses.But, again, the exceptions havesame day.While these communications on March 28, 2020, the CISA updatednot yet been tested or confirmed by a court. did not comprise mandatory or statutory its guidance in the sector of Financialbans, they indicate recommendations by Services to include the following: Based on the above, it is our belief thatthe Governor and the DBO, and would likely companies like law firms, loan originatorsbe cited in court by borrowers seeking Workers who are needed toand servicers, foreclosure trustees,to challenge the fees.In particular, we provide, process and maintainauction companies and auctioneerswould be concerned with charging default systems for processing, verification,and the employees, contractors andinterest on a borrower whose default was and recording of financialvendors that carry out the statutorycaused by COVID-19.transactions and services,and necessary functions governing the including payment, clearing, andcreation, maintenance and enforcement ofcontinued on page 9Page 8Spring 2020Points of Interest'