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Daily Financial Regulation Update -- Thursday, September 9, 2021

September 09, 2021

By FedACTion Task Force

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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

U.S. Department of the Treasury

Secretary of the Treasury Janet L. Yellen Sends Letter to Congressional Leadership on the Debt Limit

September 8, 2021

U.S. Department of the Treasury (Treasury) Secretary Janet L. Yellen sent a letter to Congressional leadership regarding the debt limit and the Treasury's ability to continue to finance the government in the absence of Congressional action to address the debt limit.

Federal Reserve Bank of New York

Blog Post: Does the Rise in Housing Prices Suggest a Housing Bubble?

September 8, 2021

The Federal Reserve Bank of New York's Liberty Street Economics blog released a post titled "Does the Rise in Housing Prices Suggest a Housing Bubble?"

Blog Post: If Prices Fall, Mortgage Foreclosures Will Rise

September 8, 2021

The Federal Reserve Bank of New York's Liberty Street Economics blog released a post titled "If Prices Fall, Mortgage Foreclosures Will Rise."

Federal Deposit Insurance Corporation

FDIC-Insured Institutions Reported Net Income of $70.4 Billion in Second Quarter 2021

September 8, 2021

The Federal Deposit Insurance Corporation (FDIC) announced that reports from the 4,951 commercial banks and savings institutions insured by the FDIC reflect aggregate net income of $70.4 billion in second quarter 2021, an increase of $51.9 billion (281%) from a year ago. The increase was driven by further economic growth and improved credit conditions, which led to a second consecutive quarter of aggregate negative provision expense. These and other financial results for second quarter 2021 are included in the FDIC's latest Quarterly Banking Profile.

Office of the Comptroller of the Currency

OCC Issues Proposal to Rescind its 2020 Community Reinvestment Act Rule

September 8, 2021

The Office of the Comptroller of the Currency (OCC) announced that it is soliciting comments on proposed rules to rescind the Community Reinvestment Act (CRA) rule issued in 2020 and replace it with rules adopted jointly by the federal banking agencies in 1995, as amended. The action facilitates the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all insured depository institutions.

National Credit Union Administration

Credit Unions' Net Income, Insured Shares and Deposits Rise in Second Quarter

September 8, 2021

According to the latest financial performance data released by the National Credit Union Administration, federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021, or 126.8%, over the same period one year ago. The increase in net income largely resulted from strong growth in other operating income and a decline in the provisioning for loan, lease and credit loss expenses. Insured shares and deposits rose $196 billion, or 14.2%, to $1.58 trillion when compared to the second quarter of 2020.

Department of Housing and Urban Development/Federal Housing Administration

HUD Releases New Research on Increasing Affordable Housing Production and Preservation

September 8, 2021

The U.S. Department of Housing and Urban Development released its latest research on innovative strategies being pursued by state and local governments to remove regulatory barriers to affordable housing and increase housing supply.

Federal Housing Finance Agency

FHFA Releases Additional Data on Enterprise Fair Lending and Housing Goals

September 8, 2021

The Federal Housing Finance Agency (FHFA) released several sets of demographic data related to Fannie Mae's and Freddie Mac's fair lending and housing goals activities. According to the data, the rate of homeownership for minority families in the United States continues to lag well behind the national average. The monitoring of fair lending data is one component of FHFA's oversight of the secondary mortgage market. Another component is oversight of the Fannie Mae's and Freddie Mac's annual housing goals, including the single-family housing goals focused on low-income borrowers and borrowers living in minority areas.

International

European Commission

2021 Strategic Foresight Report: Enhancing the EU's Long-Term Capacity and Freedom to Act

September 8, 2021

The European Commission adopted its second annual Strategic Foresight Report titled "Enhancing the EU's Long-Term Capacity and Freedom to Act."

European Banking Authority

ESAs Highlight Risks in Phasing out of Crisis Measures and Call on Financial Institutions to Adapt to Increasing Cyber Risks

September 8, 2021

The European Banking Authority (EBA) announced that the three European Supervisory Authorities (EBA, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority) issued their second joint risk assessment report for 2021. The report highlights the increasing vulnerabilities across the financial sector, the rise seen in terms of cyber risk and the materialization of event-driven risks.

Bank of England Prudential Regulation Authority

CP18/21 – Remuneration: Identification of Material Risk Takers

September 8, 2021

The Consultation Paper sets out the Prudential Regulation Authority's (PRA) proposed changes in respect of the applicable requirements on the identification of material risk takers for the purposes of the PRA's remuneration regime.

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)