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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, September 10, 2021

September 10, 2021

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Major Developments

Conference of State Bank Supervisors

CSBS Releases Model for the Future of Payments Regulation

September 9, 2021

The Conference of State Bank Supervisors (CSBS) released the Uniform Money Transmission Modernization Act for state adoption as part of states' broader effort to modernize the state financial regulatory system. The Uniform Money Transmission Modernization Act, also known as the Money Transmitter Model Law, aims to replace 50 sets of state-specific money transmitter laws and rules with one single set of nationwide standards and requirements created by state and industry experts.

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.

U.S. House of Representatives

Committee on Small Business

Committee Advances $25 Billion in Funding for Small Businesses

September 9, 2021

The House Small Business Committee (Committee) approved legislation to deliver $25 billion in funding to invest in small business programs. The Committee now sends the bill to the House Budget Committee for inclusion in the Build Back Better Act.

Federal Agencies

Federal Reserve Board

Paper: Community Bank Access to Innovation through Partnerships

September 9, 2021

The Board of Governors of the Federal Reserve System released a paper titled "Community Bank Access to Innovation through Partnerships," which describes the landscape of partnerships between community banks and fintechs.

Speech: Community Bank Access to Innovation

September 9, 2021

Michelle W. Bowman, Governor at the Board of Governors of the Federal Reserve System, gave a speech titled "Community Bank Access to Innovation" at the Government Relations Council meeting sponsored by The American Bankers Association.

Speech

Paper: Estimating Hysteresis Effects

September 9, 2021

The Divisions of Research & Statistics and Monetary Affairs of the Board of Governors of the Federal Reserve System released a paper as part of its Finance and Economics Discussion Series titled "Estimating Hysteresis Effects."

Full Paper

Federal Reserve Bank of New York

President Williams' Remarks at Racism and the Economy: Focus on Health

September 9, 2021

John C. Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, gave opening remarks at Racism and the Economy: Focus on Health.

Remarks

Federal Reserve Bank of Boston

Policy Brief: How Did the Main Street Lending Program Borrowers Fare Before and During COVID-19?

September 9, 2021

The Federal Reserve Bank of Boston released a policy brief titled "How Did the Main Street Lending Program Borrowers Fare Before and During COVID-19?"

Federal Deposit Insurance Corporation

FDITECH Extends Registration for Tech Sprint to Measure and Test Bank Resilience

September 9, 2021

The Federal Deposit Insurance Corporation (FDIC) announced that it has extended the registration period to participate in a tech sprint designed to identify and develop measures, data, and other capabilities to understand how resilient banks are to major disruptions. Interested organizations may submit applications requesting participation until 5:00 p.m. Eastern on September 19, 2021.

Press Release

Consumer Financial Protection Bureau

Consumer Financial Protection Bureau Issues Report Finding a Continued Decline in College Credit Card Agreements in 2020

September 9, 2021

The Consumer Financial Protection Bureau (CFPB) released a report on the agreements signed between credit card issuers and colleges, or organizations affiliated with colleges, finding that the market for college credit cards continued its general trend of decline in 2020. The report also finds that agreements with alumni associations continued to make up the largest part of this market, as defined by the number of agreements, the number of accounts, and the amounts of payments made by issuers to their counterparties. The report is the twelfth annual college credit card report issued as required by the Credit Card Accountability, Responsibility, and Disclosure Act, or CARD Act.

Financial Stability Oversight Council

Financial Stability Oversight Council Meeting Held on September 9, 2021

September 9, 2021

U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council in executive session.

National Credit Union Administration

Remarks at the PBC Conference 2021: Payments, Banking, Compliance in the Cannabis Industry

September 9, 2021

National Credit Union Administration Board Member Rodney E. Hood gave remarks at the PBC Conference 2021: Payments, Banking, Compliance in the Cannabis Industry.

Remarks

U.S. Small Business Administration

SBA Enhances COVID Economic Injury Disaster Loan Program to Aid Small Businesses Facing Challenges from Delta Variant

September 9, 2021

The U.S. Small Business Administration (SBA) announced enhancements to the COVID Economic Injury Disaster Loan program, a federal disaster relief loan designed to better serve and support small business communities still suffering from the COVID-19 pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. The SBA announced that it is ready to receive new applications immediately from small businesses looking to take advantage of the new policy changes.

Press Release

Federal Housing Finance Agency

Supervisory Letter on FHLBank Membership Issues - September 2021

September 9, 2021

The Federal Housing Finance Agency (FHFA) issued a supervisory letter to Federal Home Loan Banks (FHLBanks) regarding issues relating to FHLBank membership eligibility that have arisen through the examination process and as a result of inquiries to the FHFA. The letter provides uniform guidance to such banks on the issues.

Supervisory Letter

Fannie Mae

Mortgage Lenders Less Bearish on Profit Margins, Expect Improved Refi Volumes

September 9, 2021

Fannie Mae issued a press release that states that for the fourth consecutive quarter, a plurality of mortgage lenders expect near-term profitability to decrease, according to Fannie Mae's Q3 2021 Mortgage Lender Sentiment Survey® (MLSS). According to the survey, 46% of mortgage lenders believe profit margins will decrease in the next three months, an improvement from 69% in the prior quarter, while 38% believe profits will remain the same and 15% believe profits will increase. Increased competition and changing market conditions were the top reasons cited for the pessimism, while GSE pricing and policies and strong consumer demand were the top reasons given among lenders with a more positive profitability outlook.

U.S. Department of Labor

Unemployment Insurance Weekly Claims Report Update

September 9, 2021

The U.S. Department of Labor released its unemployment insurance weekly claims report update. In the week ending September 4, the advance figure for seasonally adjusted initial claims was 310,000, a decrease of 35,000 from the previous week's revised level. This is the lowest level for initial claims since March 14, 2020 when it was 256,000. The previous week's level was revised up by 5,000 from 340,000 to 345,000. The four-week moving average was 339,500, a decrease of 16,750 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 up by 1,250 from 355,000 to 356,250.

Report

International

European Commission

Strengthened EU Export Control Rules Kick In

September 9, 2021

The European Commission announced that the European Union (EU) is strengthening its ability to respond to new security risks and emerging technologies. The new Export Control Regulation came into effect and will tighten controls on trade in dual-use items – civilian goods and technologies with possible military or security use – while enhancing the EU's capacity to protect human rights and support secure supply chains for strategic items.

Bank of England Prudential Regulation Authority

Letter from PRA and FCA on Trade Finance Activity

September 9, 2021

The Bank of England Prudential Regulation Authority and the Financial Conduct Authority issued a letter to Chief Executive Officers highlighting supervisory expectations of firms undertaking trade finance business.

Letter

UK Financial Conduct Authority

FCA to Move Faster to Remove Unused Firm Permissions

September 9, 2021

The Financial Conduct Authority announced that it has published draft guidance on a new power that allows it to move faster to remove regulatory permissions that are no longer being used by financial services firms. Incorrect or outdated permissions on the Financial Services Register can mislead consumers about the level of protection offered by a firm or give credibility to a firm's unregulated activities.