PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update - Tuesday, July 7, 2020
By FedACTion Task Force
PH Client Alerts
SBA and Treasury Release Paycheck Protection Program Loan Recipient Data
July 6, 2020
The U.S. Small Business Administration (SBA), in consultation with the U.S. Department of the Treasury, released detailed loan-level data regarding the loans made under the Paycheck Protection Program (PPP). The disclosure covers each of the 4.9 million PPP loans that have been made and includes loan-level data, including business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported and loan amount ranges for loan amounts between $150,000 and $10 million. For loans below $150,000, the SBA also released the foregoing information except business names and addresses. The data release also includes overall statistics regarding dollars lent per state, loan amounts, top lenders and distribution by industry.
Federal Reserve Bank of Boston
Boston Fed announces Main Street Lending Program is Fully Operational
July 6, 2020
The Federal Reserve Bank of Boston (FRBBos) announced that the Main Street Lending Program (Main Street Program) is operational and ready to purchase participations in eligible loans that are submitted to the Main Street Program by registered lenders. The FRBBos encouraged lenders to begin submitting qualifying loans. The FRBBos also announced its intention to publish in the coming days a state-by-state listing of lenders accepting new business customers under the Main Street Program and electing to be listed.
Federal Reserve Bank of New York
New York Fed announces Main Street Lending Program is Fully Operational
July 6, 2020
The Federal Reserve Bank of New York released the dollar value of loans requested in aggregate, and by category, in the first subscription for the Term Asset-Backed Securities Loan Facility. According to the release, the total value of loans requested was $723 million.
Commodity Futures Trading Commission
CFTC’s Market Risk Advisory Committee to Meet on July 21, 2020
July 6, 2020
The Commodity Futures Trading Commission’s Market Risk Advisory Committee (MRAC) will hold a public meeting on Tuesday, July 21, 2020 via teleconference. At the meeting, the MRAC will receive status updates from its subcommittees: Climate-Related Market Risk, CCP Risk and Governance, Market Structure, and Interest Rate Benchmark Reform. The meeting will also include a discussion regarding market activity in the early part of 2020, immediately following the onset of the COVID-19 pandemic in the United States.
National Credit Union Administration
CLF Borrowing Capacity Exceeds $25 Billion
July 6, 2020
The National Credit Union Administration (NCUA) announced that the Central Liquidity Facility (CLF) experienced a significant increase in its membership and borrowing capacity following the regulatory enhancements provided by the CARES Act and changes to the NCUA’s regulations. At the end of May 2020, the number of regular members of the CLF, which consists of natural-person credit unions, was 297, up from 283 members in April. All 11 corporate credit unions became agent members in May, which means their member credit unions also have access to CLF loans. In total, 3,797 credit unions, or 73% of all federally insured credit unions, have access to the CLF, either as a regular member or through their corporate credit union. New memberships have added approximately $945.8 million in additional subscribed capital stock to the CLF. As of May 31, 2020, the CLF’s borrowing authority stood at $25.8 billion, an increase of $15.3 billion since April 2020.
UK Financial Conduct Authority
FCA Announces Proposals to further Support Motor Finance and High Cost Credit Customers
July 3, 2020
The Financial Conduct Authority announced proposals that would provide continued support for users of motor finance and high cost credit products, who continue to face payment difficulties due to COVID-19. The proposals outline the options firms will provide motor finance, buy-now pay-later (BNPL), rent-to-own (RTO) and pawnbroking customers who are coming to the end of a payment freeze, as well as those who are yet to request one. For customers yet to request a payment freeze, the time to apply for one would be extended until October 31, 2020. For motor finance, BNPL, RTO and pawnbroking customers that have already taken up support, and who are still experiencing payment difficulties, firms would continue to offer support with options including a further payment deferral or reducing payments to an amount the customer can afford for a further three months.
- Motor Finance Agreements and Coronavirus: Updated Temporary Guidance for Firms
- High-cost Short-term Credit Agreements and Coronavirus: Updated Temporary Guidance for Firms
- Rent-to-own, Buy-now Pay-later and Pawnbroking Agreements and Coronavirus: Draft Temporary Updated Guidance for Firms
- Consumer Page on Dealing with Financial Difficulties during Coronavirus
- Information for Consumers on Personal Loans, Credit Cards, Overdrafts, Motor Finance and Other Forms of Credit