PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, July 10, 2020
July 10, 2020
FedACTion Task Force
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Click here to read more from our Coronavirus series.
Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.
U.S. House of Representatives
Committee on Financial Services
Virtual Hearing - Access Denied: Challenges for Women- and Minority-Owned Businesses Accessing Capital and Financial Services During the Pandemic
July 9, 2020
The Subcommittee of Diversity and Inclusion of the Committee on Financial Services held a hearing on July 9, 2020 entitled “Access Denied: Challenges for Women- and Minority-Owned Businesses Accessing Capital and Financial Services.” At the hearing, witnesses discussed the unique challenges and inequities minority- and women-owned business enterprises have historically faced when accessing capital, with a particular emphasis on how those challenges have been exacerbated during the COVID-19 pandemic. The hearing also considered legislative proposals to ameliorate those challenges.
Federal Agencies
Federal Reserve Board
Consumer Affairs Letter: Examination Procedures for the CARES Act
July 7, 2020
The Board of Governors of the Federal Reserve System released a letter to officers and managers in charge of consumer affairs regarding recently developed examination procedures for the credit reporting and mortgage servicing provisions of the CARES Act.
Federal Reserve Bank of Boston
Forecasting the New England States’ Tax Revenues in the Time of the COVID-19 Pandemic
July 9, 2020
The Federal Reserve Bank of Boston released a report on forecasting the New England states’ tax revenues in the time of the COVID-19 pandemic.
Federal Housing Finance Agency
FHFA Extends COVID-Related Loan Processing Flexibilities for Fannie Mae and Freddie Mac Customers through August
July 9, 2020
The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will extend several loan origination flexibilities until August 31, 2020 to ensure continued support for borrowers during the COVID-19 pandemic. The flexibilities were originally set to expire on July 31, 2020.
Department of Labor
Department of Labor Issues Unemployment Insurance Weekly Claims Report
July 9, 2020
The U.S. Department of Labor issued its Unemployment Insurance Weekly Claims report for the week ending July 4, 2020. According to the report, the advance figure for seasonally adjusted initial claims was 1,314,000, a decrease of 99,000 from the previous week’s revised level; the previous week’s level was revised down by 14,000, from 1,427,000 to 1,413,000; the four-week moving average was 1,437,250, a decrease of 63,000 from the previous week’s revised average; and the previous week’s average was revised down by 3,500, from 1,503,750 to 1,500,250.
International
European Banking Authority
EBA Calls on Resolution Authorities to Consider the Impact of COVID-19 on Resolution Strategies and Resolvability Assessments
July 9, 2020
The European Banking Authority (EBA) published a statement on resolution planning in light of the COVID-19 pandemic. The EBA’s intent with respect to the statement is to reiterate the importance of resolution planning in times of uncertainty to ensure that resolution stands as a credible option in times of stress. In addition, the EBA highlights the importance for resolution authorities to continue promoting institutions’ efforts to enhance their capabilities and increase their resolvability.
Bank of England Prudential Regulation Authority
Financial Service Compensation Scheme – Temporary High Balances Coverage Extension due to COVID-19
July 9, 2020
The Bank of England Prudential Regulation Authority (PRA) released a consultation paper setting forth the PRA’s proposal to extend coverage under the Financial Services Compensation Scheme for Temporary High Balances (THBs), from six months to twelve months from the date of deposit, or the first date the THB becomes legally transferable to the depositor. The proposed extension of coverage would be for a temporary period, and is being proposed in response to the impact of COVID-19 on residential property and investment markets, and access to banking services for some depositors. THB coverage would revert back to six months on February 1, 2021.