PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Saturday, October 31, 2020
October 31, 2020
FedACTion Task Force
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Major Developments
Federal Reserve Board Adjusts Terms of Main Street Lending Program
October 30, 2020
The Board of Governors of the Federal Reserve System (Federal Reserve) adjusted the terms of the Main Street Lending Program. In particular, the minimum loan size for three Main Street facilities available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000 and the fees have been adjusted to encourage the provision of these smaller loans. The Federal Reserve and U.S. Department of the Treasury also issued a new FAQ clarifying that Paycheck Protection Program loans of up to $2 million may be excluded for purposes of determining the maximum loan size under the Main Street Lending Program, if certain requirements are met.
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
Brown, Merkley, Colleagues Press Nation’s Utility Companies to Cease Utility Shutoffs For the Duration of the COVID-19 Crisis
October 30, 2020
U.S. Sen. Sherrod Brown (D-OH), ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, and Sen. Jeff Merkley (D-OR), sent letters to the nation’s largest utility companies urging them to suspend all utility shutoffs for the duration of the COVID-19 pandemic.
Federal Agencies
Federal Reserve Board
Agencies Release Paper on Operational Resilience
October 30, 2020
The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency released a paper outlining sound practices designed to help large banks increase operational resilience in the face of operational risks, such as cyberattacks, natural disasters, and pandemics.
Freddie Mac
Freddie Mac Analysis Shows Majority of Multifamily Residents Prioritize Rent Payments Amidst Pandemic
October 30, 2020
A new analysis from Freddie Mac Multifamily’s research group examines the five major resources capturing rent payment information in the wake of the COVID-19 pandemic. The report shows that overall rental payment performance has remained strong in the face of the economic downturn.
International
Bank of England
Bank of England Releases Credit Union Quarterly Statistics
October 30, 2020
The Bank of England released statistics aggregated from quarterly returns submitted by authorized credit unions in the UK. In the second quarter of 2020 loans to members decreased in every region, and by 5.9% across the UK overall when compared to the first quarter of 2020.
UK Financial Conduct Authority
FCA Reminds Insurance Firms to Review the Value of Their Products in Light of the Impacts of COVID-19
October 30, 2020
The Financial Conduct Authority issued a statement urging insurers and insurance intermediaries to complete reviews of the value of their products by December 3, 2020 in light of the impact on such product of the ongoing pandemic.