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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, November 18, 2020

By
FedACTion Task Force
On Nov 18, 2020

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Click here to read more from our Coronavirus series.

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 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. Senate

Committee on Banking, Housing, and Urban Affairs

Oversight of the Securities and Exchange Commission

U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton provided testimony to the U.S. Senate Committee on Banking, Housing, and Urban Affairs on the SEC’s work in 2020, including the SEC’s response to issues raised by COVID-19.

November 17, 2020

Federal Agencies

Federal Reserve Bank of New York

Total Household Debt Increased in Q3 2020, Led by Surge in New Credit Extensions; Mortgage Originations, Including Refinances, Continue to Soar

November 17, 2020

The Federal Reserve Bank of New York’s (New York Fed) Center for Microeconomic Data issued its Quarterly Report on Household Debt and Credit (Report), which shows that total household debt increased by $87 billion (0.6%) to $14.35 trillion in the third quarter of 2020. The increase more than offset the decline seen in the second quarter of 2020 as total household debt has surpassed first quarter 2020 levels. The Report is based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data.

Business Leaders Survey

November 17, 2020

The Federal Reserve Bank of New York released its November 2020 Business Leaders Survey. According to firms responding to the survey, activity in the region’s service sector declined at a faster pace than in recent months. The survey’s headline business activity index fell eleven points to -15.8, its lowest level since August of this year. The business climate index was little changed at -63.1, indicating that the vast majority of firms continued to view the business climate as worse than normal. Employment levels were little changed, and wages increased. Looking ahead, firms did not expect business conditions to improve, on net, over the next six months.

Federal Reserve Bank of Boston

The “Winter” of the COVID-19 Pandemic is Coming, but How Do We Prepare for Spring?

November 17, 2020

According to a release from the Federal Reserve Bank of Boston, executives at the Advanced Cyber Security Center’s annual conference discussed how the workplace will look, post-pandemic. Participants forecasted a permanently changed workforce, where hybrid remote/office arrangements are the norm, people live farther from company headquarters and cybersecurity is more important than ever.

Department of Housing and Urban Development/Federal Housing Administration

HUD Announces Over $80 Million in Targeted Funding for Coronavirus Relief

November 17, 2020

The U.S. Department of Housing and Urban Development made $86.85 million available to public housing agencies in the form of Mainstream funding vouchers to assist non-elderly populations impacted by coronavirus. Mainstream vouchers are administered using the same rules as other housing choice vouchers but targeted to serve a special population to ensure residents of low income housing, including those with unique circumstances, receive funding to protect their health and safety against COVID-19.

Freddie Mac

Freddie Mac Research Shows that Forbearance Has Helped Mitigate the Damage to Homeowners during the Pandemic

November 17, 2020

According to Freddie Mac’s latest Insight, without forbearance, many households may have defaulted or been forced to sell their homes during the COVID-19 pandemic. These forced sales could have depressed the housing market, leading to further defaults.

International

Bank of England

Speech: The Potential Long-Term Effects of COVID

November 17, 2020

Dave Ramsden, Deputy Governor for Markets & Banking at the Bank of England, gave a speech at the Institute for Policy and Engagement, University of Nottingham, titled “The Potential Long-Term Effects of COVID.” In his speech, Mr. Ramsden discusses the impact of the COVID-19 pandemic on the UK economy and examines the long-term effects and how the UK economy is likely to respond.

Speech: The Future for Business Investment in the Age of COVID and the Role of Financial Services

November 17, 2020

Andrew Bailey, Governor at the Bank of England, gave a speech at TheCityUK National Conference titled “The Future for Business Investment in the Age of COVID and the Role of Financial Services.” In his speech, Mr. Bailey discusses the long-term effects of COVID-19 and the investment required to support recovery.

Speech: The Dash for Cash and the Liquidity Multiplier: Lessons from March 2020

November 17, 2020

Anil Kashyap, External Member of the Financial Policy Committee at the Bank of England, gave a speech titled “The Dash for Cash and the Liquidity Multiplier: Lessons from March 2020.” In his speech, Mr. Kashyap shares his thinking about some of the lessons about financial stability risks that became evident after the market disruptions caused by COVID-19 commencing in March of this year.

UK Financial Conduct Authority

FCA Confirms Support for Mortgage Borrowers Impacted by Coronavirus

November 17, 2020

The Financial Conduct Authority (FCA) has now confirmed updated guidance to firms setting out enhanced support that should be available to mortgage borrowers experiencing payment difficulties as a result of the ongoing COVID-19 pandemic. The guidance will be fully in force from November 20, 2020, but the FCA encourages firms that are able to start providing the enhanced support sooner to do so.