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Daily Financial Regulation Update -- Friday, April 2, 2021

April 02, 2021

By FedACTion Task Force

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Major Developments

President Biden Unveils Jobs Plan

March 31, 2021

President Joseph R. Biden unveiled the American Jobs Plan, aimed at rebuilding the country’s infrastructure, investing in research and development and creating jobs.

Financial Crimes Enforcement Network

FinCEN Launches Regulatory Process for New Beneficial Ownership Reporting Requirement

April 1, 2021

The Financial Crimes Enforcement Network issued an Advance Notice of Proposed Rulemaking to solicit public comment on a wide range of questions related to the implementation of the beneficial ownership information reporting provisions of the Corporate Transparency Act.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (Nominee)

Small Business Administration – Isabel Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Department of Education – Dr. Miguel Cardona (effective March 2, 2011)

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 the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.  

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

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.

Federal Agencies

Department of the Treasury

President Biden Proclaims April 2021 National Financial Capability Month

April 1, 2021

President Joseph R. Biden proclaimed April 2021 to be National Financial Capability Month to highlight the value of high-quality financial education on improving Americans’ financial capability. The proclamation is part of a concerted effort by the federal government for recovery and rebuilding the economy in the wake of the COVID-19 pandemic.

Federal Reserve Bank of New York

New York Fed to Host “Scaling Equitable Solar Finance: A Financial Innovations Roundtable Event”

April 1, 2021

On May 19, 2021 the Federal Reserve Bank of New York and the Center for Impact Finance at the Carsey School of Public Policy at the University of New Hampshire will gather solar industry stakeholders, project developers and members of the financial sector in a virtual discussion to identify how community financial institutions, such as credit unions, community banks and Community Development Financial Institutions, can finance solar installations in low-income communities and communities of color.

Federal Deposit Insurance Corporation

FDIC Releases Webpage with Information on the Brokered Deposits Regulation including Instructions for Filing Requirements under the Primary Purpose Exception

March 31, 2021

On April 1, 2021, the revisions to the Federal Deposit Insurance Corporation’s brokered deposits regulation (see FIL-113-2020) took effect. The rule establishes a new framework for analyzing the primary purpose exception (PPE) that includes a notice process for certain designated exceptions and an application process for entities that wish to invoke the PPE but do not meet one of the designated exceptions. To facilitate the implementation of the new regulations, the FDIC added a Brokered Deposits webpage to the Banker Resource Center to provide information about the regulation, including filing instructions for the notice and application process. The full compliance date with respect to the brokered deposit revisions is January 1, 2022.

FDIC Releases Updated Webpage For Revised Interest Rate Restrictions Applicable to Less Than Well Capitalized Institutions

March 31, 2021

On April 1, 2021, the Federal Deposit Insurance Corporation’s (FDIC) revised methodology for calculating the national rate, the national rate cap, and the local market rate cap for banks that are less than well capitalized under Section 337.7 of the FDIC’s Rules and Regulations went effect. The FDIC’s webpage for the National Rates and National Rate Caps will reflect the change in calculation methodology. Going forward, updated national rates and rate caps will, in general, be posted on the third Monday of the month.

Office of the Comptroller of the Currency

Comptroller Issues Interest Rate Risk Statistics Report

April 1, 2021

The Office of the Comptroller of the Currency (OCC) published the spring 2021 edition of the semiannual Interest Rate Risk Statistics Report. The report presents interest rate risk data gathered during examinations of OCC-supervised midsize and community banks and federal savings associations. The statistics are for informational purposes only and do not represent OCC-suggested limits or exposures.

OCC Promotes April as National Financial Capability Month

April 1, 2021

The Office of the Comptroller of the Currency is encouraging national banks and federal savings associations to support financial literacy education during April 2021, which President Biden proclaimed as National Financial Capability Month.

Consumer Financial Protection Bureau

CFPB Compliance Bulletin Warns Mortgage Servicers: Unprepared is Unacceptable

April 1, 2021

The Consumer Financial Protection Bureau (CFPB) warned mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall. Millions of homeowners currently in forbearance will need help from their servicers when the pandemic-related federal emergency mortgage protections expire this summer and fall. Servicers should dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help. The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests, and process applications for loss mitigation. The CFPB will consider a servicer’s overall effectiveness in helping consumers when using its discretion to address compliance issues that arise.

Federal Financial Institutions Examination Council

Todd M. Harper Named FFIEC Chairman  

April 1, 2021

Todd M. Harper, Chairman of the National Credit Union Administration, has been named Chairman of the Federal Financial Institutions Examination Council (Council). His two-year term runs from April 1, 2021, through March 31, 2023. The Council also named Blake Paulson, Acting Comptroller of the Currency, Office of the Comptroller of the Currency, as its new vice chairman for the same two-year term.

Marshall Appointed to FFIEC State Liaison Committee

April 1, 2021

The Federal Financial Institutions Examination Council (FFIEC) announced the appointment of Susannah Marshall to the FFIEC’s State Liaison Committee (SLC). Marshall was designated by the Conference of State Bank Supervisors (CSBS) to serve on the SLC for a two-year term that begins today and continues through March 31, 2023.

National Credit Union Association

NCUA Marks National Financial Capability Month

April 1, 2021

National Credit Union Administration (NCUA) Chairman Todd M. Harper encouraged credit unions and their members to utilize the NCUA’s many financial literacy resources available to them during National Financial Capability Month, which runs throughout April 2021.

Department of Housing and Urban Development/Federal Housing Administration

Hud Commemorates National Fair Housing Month 2021

April 1, 2021

The U.S. Department of Housing and Urban Development (HUD) kicked off Fair Housing Month 2021. The month’s theme is Fair Housing: More Than Just Words, which is intended to reflect a commitment to advancing equity in housing and the importance of increasing public awareness of everyone’s right to fair housing.

Department of Labor

DOL Releases Unemployment Insurance Weekly Claims Report Update

April 1, 2021

The U.S. Department of Labor released its Unemployment Insurance Weekly Claims Report. In the week ending March 27, 2021, the advance figure for seasonally adjusted initial claims was 719,000, an increase of 61,000 from the previous week’s revised level. The previous week’s level was revised down by 26,000 from 684,000 to 658,000. The 4-week moving average was 719,000, a decrease of 10,500 from the previous week’s revised average. This is the lowest level for this average since March 14, 2020 when it was 225,500. The previous week’s average was revised down by 6,500 from 736,000 to 729,500.

International

Bank of England

Bank of England Releases Monthly Decision Maker Panel Data for March 2021

April 1, 2021

The Bank of England released data from the March 2021 Decision Maker Panel (DMP) survey. The survey was conducted between March 5 and 19 and received 3,116 responses. Businesses estimated that their sales in the first quarter of 2021 would be 20% lower than they otherwise would have been because of COVID-19, with employment 9% lower and investment 21% lower.

UK Financial Conduct Authority

FCA Issues Guidance on Cancellations and Refunds: helping consumers with rights and routes to refunds

April 1, 2021

The UK Financial Conduct Authority released updated guidance on its expectations for firms in dealing with consumer requests for refunds for canceled events or travel.