PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update --Saturday, June 26, 2021

June 25, 2021

FedACTion Task Force

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Click here to read more from our Coronavirus series.


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

Waters Delivers Floor Statement on Legislation to Protect LGBTQ-Owned Businesses

June 25, 2021

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, delivered a statement on the House floor urging the passage of H.R. 1443, the LGBTQ Business Equal Credit Enforcement and Investment Act. This bill provides key protections to investors by requiring that financial institutions report on the sexual orientation and gender identity of applicants for business loans. The bill passed the House by a vote of 252-176.

Federal Agencies

Department of the Treasury

Financial Action Task Force (FATF) Advances Its Work on Proliferation Finance, Virtual Assets, Financing of Racially or Ethnically Motivated Violent Extremism, and Financial Flows Linked to Conservation Crime

June 25, 2021

The Financial Action Task Force (FATF) concluded its fourth virtual plenary since the start of the COVID-19 pandemic. The FATF advanced its core work on virtual assets, proliferation finance, digital transformation and peer member assessments.

Federal Reserve Board

UK and U.S. Authorities Hold Meeting Regarding Central Counterparty Resolution

June 25, 2021

Senior officials from the Bank of England, Federal Deposit Insurance Corporation, Commodity Futures Trading Commission, Securities and Exchange Commission and Federal Reserve Board met to discuss certain issues relating to the concept of resolution of a central counterparty (CCP). This meeting was one of a regular series of senior-level meetings held since 2017 to share views on CCP resolution and review the progress of an ongoing program of joint work among the agencies.

Federal Reserve Board Announces it Will Extend for a Final Time its Paycheck Protection Program Liquidity Facility

June 25, 2021

The Board of Governors of the Federal Reserve System announced it will extend for a final time its Paycheck Protection Program Liquidity Facility by an additional month to July 30, 2021. The extension is being made as an operational accommodation to allow additional processing time for banks, community development financial institutions and other financial institutions to pledge to the facility any Paycheck Protection Program (PPP) loans approved by the Small Business Administration through the June 30 expiration of the PPP program.

Agencies Release List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies

June 25, 2021

The Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation announced the availability of the 2021 list of distressed or underserved nonmetropolitan middle-income geographies. These are geographic areas where revitalization or stabilization activities are eligible to receive Community Reinvestment Act consideration under the community development definition.

Federal Deposit Insurance Corporation

FDIC Outlines Modified Approach for Insured Depository Institution Resolution Planning Rule

June 25, 2021

The Federal Deposit Insurance Corporation outlined a modified approach to implementing its rule requiring certain insured depository institutions (IDIs) to submit resolution plans to facilitate resolution under the Federal Deposit Insurance Act. The modified approach applies to IDIs with $100 billion or more in total assets, extends the submission frequency to a three-year cycle, streamlines content requirements, and places enhanced emphasis on engagement with firms.

National Credit Union Association

NCUA Releases Q1 2021 State-Level Credit Union Data Report

June 25, 2021

According to the latest Quarterly U.S. Map Review released by the National Credit Union Administration, federally insured credit unions continued to experience double digit asset and share-and-deposit growth over the year ending in the first quarter of 2021.

Department of Housing and Urban Development/Federal Housing Administration

Federal Housing Administration Introduces More Measures to Help Homeowners Struggling Due to COVID-19

June 25, 2021

The Federal Housing Administration (FHA) announced more measures to help homeowners with FHA-insured mortgages who are struggling financially due to the COVID-19 pandemic. The measures are aimed at providing immediate relief while also expanding outreach and home retention options for struggling homeowners who are disproportionately people of color.

Ginnie Mae

Ginnie Mae to Enable Securitization of Mortgage Modifications with Terms up to 40 Years

June 25, 2021

Ginnie Mae announced the creation of a new pool type to support the securitization of modified loans with terms up to 40 years. The currently active set of pool types is limited to 30-year loan terms. The introduction of the new product (which will be known as Pool Type C-ET) will allow Ginnie Mae issuers to offer loan modifications that carry a lower monthly payment than would a 30-year term while retaining the ability to securitize the loans for sale into the secondary market.


European Banking Authority

EBA Publishes Final Draft Technical Standards on Supervisory Disclosure Under the Investment Firms Directive

June 25, 2021

The European Banking Authority (EBA) published its final draft Implementing Technical Standards (ITS) on information on supervisory approaches and aggregate statistical data concerning the new prudential requirements that competent authorities will have to disclose publicly for all types of investment firms authorized under the Markets in Financial Instruments Directive.

Bank of England

Financial Stability Paper: The Role of Non-Bank Financial Intermediaries in the ‘Dash for Cash’ in Sterling Markets

June 25, 2021

The Bank of England published a Financial Stability Working paper on the role of non-bank financial intermediaries in the ‘dash for cash’ in sterling market. As a result of the public health measures taken to contain COVID-19 and the sharp deterioration in the economic outlook beginning in March 2020, there were very large and sudden falls in the prices of a range of financial assets, and a tightening in market conditions.

Staff Working Paper: Identifying the Transmission Channels of Credit Supply Shocks to Household Debt: Price and Non-price Effects

June 25, 2021

The Bank of England published a staff working paper that identifies transmission channels of credit supply shocks to household debt. Using matched microdata for the UK, the author estimates two distinct channels via which credit supply shocks affect mortgage debt: one that operates through price conditions in credit markets; and another that operates through non-price credit conditions and affects the quantity of credit supplied by lenders. 

Staff Working Paper: Price Discrimination and Mortgage Choice

June 25, 2021

The Bank of England published a staff working paper in which the authors characterize the large number of mortgage offers for which people qualify.

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 (effective April 17, 2021)

Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

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, 2021)

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