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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Saturday, November 21, 2020

By
FedACTion Task Force
On Nov 21, 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. House of Representatives

Committee on Financial Services

Chair Waters Criticizes the Trump Administration’s Planned Move to Shut Down CARES Act Facilities

November 20, 2020

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services Committee, criticized the Trump Administration for the announcement that it is planning to shut down certain emergency lending programs created by the CARES Act to support the economy during the COVID-19 pandemic.

Committee on Small Business

Velázquez and Chu Call for Greater Transparency from SBA to Prevent Fraud and Abuse in EIDL Program

November 20, 2020

Congresswoman Nydia M. Velázquez (D-NY), Chairwoman of the House Small Business Committee, and Congresswoman Judy Chu (D-CA), Chairwoman of the Subcommittee on Investigations, Oversight, and Regulations penned a letter to Small Business Administration (SBA) Administrator Jovita Carranza, seeking more information on the status of the SBA’s Economic Injury Disaster Loan (EIDL) program. In the letter, lawmakers call on the SBA to increase transparency to help Congress improve fraud prevention efforts within the EIDL.

Federal Agencies

Federal Reserve Bank of New York

New York Fed Selects Additional Firms to Broaden its Counterparty Base for Agency CMBS and TALF

November 20, 2020

The Federal Reserve Bank of New York announced the selection of additional counterparties to support agency commercial mortgage backed securities purchases and the Term Asset-Backed Securities Loan Facility.

Securities and Exchange Commission

SEC Releases Staff Statement Regarding Rule 302(b) of Regulation S-T in Light of COVID-19 Concerns

November 20, 2020

Staff of the Securities and Exchange Commission (Commission) Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets released a statement for firms subject to Regulation S-T regarding the authentication document retention requirements under Rule 302(b) in light of health, transportation, and other logistical issues raised by the spread of COVID-19. In light of these difficulties, the staff will not recommend the Commission take enforcement action with respect to the requirements of Rule 302(b) if:

  1. a signatory retains a manually signed signature page or other document authenticating, acknowledging, or otherwise adopting his or her signature that appears in typed form within the electronic filing and provides such document, as promptly as reasonably practicable, to the filer for retention in the ordinary course pursuant to Rule 302(b);
  2. such document indicates the date and time when the signature was executed; and
  3. the filer establishes and maintains policies and procedures governing this process.

Driscoll Delivers Speech on the Role of the Chief Compliance Officer

November 20, 2020

Peter Driscoll, Director of the Office of Compliance Inspections and Examinations of the Securities and Exchange Commission, delivered opening remarks at the National Investment Adviser/Investment Company Compliance Outreach 2020 program. Driscoll discussed the role of chief compliance officers and challenges these individuals are facing during COVID-19.

Ginnie Mae

Ginnie Mae Finds Fiscal Year 2020 Surges to Second Highest First-time Homebuyer level in Five Years

November 20, 2020

For the fourth time in five years, Ginnie Mae and its insuring and guaranteeing partners have financed homeownership for more than 900,000 first-time homebuyers. Fiscal year 2020 was the second highest total in five years at 965,115, coming just short of the 2017 high-point of 975,340 and significantly higher than the 888,437 initial buyers in 2019.

Department of Education

Interactive Online Portal Unveiled to Provide Transparency on Use of CARES Act Education Funding by States, Grantees

November 20, 2020

U.S. Secretary of Education Betsy DeVos announced a new online portal that shows if states, local educational agencies, and institutions of higher education are using the CARES Act’s $31 billion Education Stabilization Fund meant to keep learning going for students during the pandemic.

International

European Banking Authority

Banks Report a Significant Use of COVID-19 Moratoria and Public Guarantees

November 20, 2020

The European Banking Authority (EBA) published a first assessment of the use of COVID-19 moratoria and public guarantees across the EU banking sector. Many banks reported that loans under moratoria represented a significant share of their total loans. The use of moratoria was particularly widespread for small and medium-sized enterprises and commercial real estate but were also important for mortgage loans in some countries.