The state’s Department of Banking is allowing employees of licensed branch offices to temporarily work from home if supervision and data security criteria are met.
3/1/2021 9:00
As states continue to evaluate the impacts of COVID-19, Connecticut’s Department of Banking has decided to again extend its no-action memo to address branch licensing issues, this time through June 30, 2021.
The memo includes temporary mitigation actions licensees need to take to continue business due to COVID-19.
The department’s no-action position concerns the requirement that any Connecticut licensable activity by a Consumer Credit (CC) Licensee be conducted from a licensed branch office location, as long as these criteria are met:
- The Connecticut licensable activity is conducted from the home location of an individual working on behalf of a Connecticut CC Licensee;
- The individual is working from home due to a reason related to the COVID-19 outbreak and has informed the Connecticut CC Licensee of such reason in writing;
- The individual maintains all necessary licenses under Title 36a to conduct such Connecticut licensable activity, including, but not limited to, mortgage loan originator or loan processor or underwriter licensure, as applicable;
- None of the Connecticut licensable activity will be conducted in person with members of the public from the home location; and
- The Connecticut CC Licensee shall at all times exercise reasonable supervision of the Connecticut licensable activity being performed at the home office and ensure that appropriate safeguards and controls are established concerning consumer information and data security.
According to the memorandum, the department could amend or extend the no-action position again at any time and it does not constitute a statutory or regulatory exemption from licensure.
In other related news, the Nevada Financial Institutions Division’s latest extension allowing employees of licensed collection agencies to work from home, following data security and other guidance, is in place through March 31, 2021, ACA International previously reported.
ACA and the Nevada Collectors Association (NCA) advocated for work-from-home allowances for licensed agencies after the state included them in the “non-essential” business category in March last year and will continue to do so as the end of the current guidance approaches.
Washington state has finalized its remote work rule, which took effect Feb. 17, and Maryland issued a six-month temporary rule allowing remote work for state-regulated entities, including collection agencies. It was published in the Maryland Register Jan. 29, 2021.
ACA members can hear more state updates on the weekly ACA Huddle. The next Huddle, at 11 a.m. CST March 3, features Elizabeth Blanco and Rachel Morris, attorneys with Sessions, Israel & Shartle LLC.
Blanco and Morris will review COVID-19 vaccination policies and what employers need to know. Learn more and sign up here.
For more information on how the ACA licensing staff can assist with your licensing application completion needs, please contact us at [email protected] or call (952) 926-6547.