Dodd-Frank News Center

Time 2020-06-14 22:03:52

Web Name: Dodd-Frank News Center

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This story appeared in Bank Digest.Treasury Secretary Steven Mnuchin and Small Business Administration Administrator Jovita Carranza have issued a joint statement on the enactment of the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010). They thanked President Donald Trump and congressional leaders, as well as other Congress members, and said the bill would “provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen our country.”The release containing the joint statement also noted that the SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing the legislative amendments to the Paycheck Protection Program. This story appeared in Bank Digest.Federal Reserve Board has expanded its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The changes include: (1) lowering the minimum loan size for certain loans to $250,000 from $500,000; (2) increasing the maximum loan size for all facilities; (3) increasing the term of each loan option to five years (from four years); and (4) extending the repayment period for all loans by delaying principal payments for two years (rather than one). This story appeared in Bank Digest.The Consumer Financial Protection Bureau and the Conference of State Bank Supervisors have issued joint guidance to mortgage servicers on forbearance provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). The guidance includes links to relevant rules and guidelines and a set of relevant questions and answers. This story appeared in Bank Digest.The Federal Reserve Board has expanded the number and type of entities eligible to directly use its Municipal Liquidity Facility. Under the new terms, all U.S. states will be able to have at least two cities or counties eligible to directly issue notes to the MLF regardless of population.Governors of each state will also be able to designate two issuers in their jurisdictions whose revenues are generally derived from operating government activities to be eligible to directly use the facility. The Fed said that in addition to the expanded terms, the MLF continues to be directly open to U.S. states, the District of Columbia, U.S. cities with a population of at least 250,000 residents, U.S. counties with a population of at least 500,000 residents, and certain multistate entities. This story appeared in Bank Digest.The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency have issued a set of Frequently Asked Questions on Community Reinvestment Act consideration for activities in response to the Coronavirus Disease (COVID-19). The FAQs provide additional clarification of the information included in the Joint Statement on CRA Consideration for Activities in Response to COVID-19 issued in March 2020. This story appeared in Bank Digest.The Federal Reserve Board has filed an updated report with Congress pursuant to Section 13(3) of the Federal Reserve Act concerning certain lending facilities established by the Fed in response to economic effects of the COVID-19 pandemic. The Fed is required to submit an initial report regarding each facility established under Section 13(3) and periodic updates at least every 30 days thereafter. The current report provides the second periodic update for: (1) the Primary Dealer Credit Facility; (2) the Commercial Paper Funding Facility; and (3) the Money Market Mutual Fund Liquidity Facility. This story appeared in Bank Digest.The Federal Deposit Insurance Corporation, Federal Reserve Board, and Office of the Comptroller of the Currency have issued an interim final rule providing temporary changes to their supplementary leverage ratio rule. According to the agencies’ joint release, the temporary modifications will provide flexibility to certain depository institutions to expand their balance sheets in order to provide credit to households and businesses in light of the challenges arising from the coronavirus response.Specifically, the interim final rule permits depository institutions to choose to exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of the supplementary leverage ratio. The rule is effective upon publication in the Federal Register and will be in effect through March 31, 2021. Comments on the rule will be accepted for 45 days after its publication in the Federal Register. This story appeared in Bank Digest.The Federal Reserve Board has issued its “Report on the Economic Well-Being of U.S. Households in 2019, Featuring Supplemental Data from April 2020.” The report found that financial circumstances were generally positive for most adults at the end of 2019 but that financial conditions changed dramatically for people who experienced job loss or reduced hours during March 2020 as the spread of COVID-19 intensified in the United States.The report draws from the Fed’s seventh annual Survey of Household Economics and Decisionmaking, which was conducted in October of 2019. To obtain updated information in the midst of closures and stay-at-home orders, a smaller supplemental survey of just over 1,000 adults was conducted from April 3 to April 6 of 2020. This story appeared in Bank Digest.The Consumer Financial Protection Bureau has released a statement and frequently asked questions outlining the responsibility of certain financial firms during the COVID-19 pandemic. In the statement, the Bureau outlines the billing error responsibilities of credit card issuers and other open-end, non-home secured creditors during the COVID-19 pandemic.The Bureau released two FAQ documents. The first document reminds checking, savings, or prepaid account providers that they can offer consumers immediate relief by changing account terms without advance notice where the change in terms is clearly favorable to the consumer. The second document focuses on existing regulatory flexibilities for open-end credit (that is not home-secured) that may be useful for assisting customers.

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