PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update - Wednesday, May 20, 2020
May 20, 2020
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Major Developments
Committee on Banking, Housing, and Urban Affairs
Senate Banking Committee Holds First Quarterly CARES Act Hearing
May 19, 2020
The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing entitled “The Quarterly CARES Act Report to Congress,” at which Treasury Secretary Mnuchin and Federal Reserve Chairman Powell testified.
Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 116 HR. 748, 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 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
Warren Calls for Robust Fed Lending Program Certification Process and Penalties for Violations of Eligibility Criteria
May 18, 2020
U.S. Senator Elizabeth Warren (D-MA) sent letters to the Federal Reserve Bank of New York and Federal Reserve Bank of Boston regarding the certification process for the recipients of funds distributed through Federal Reserve emergency lending facilities authorized by the CARES Act. Such facilities include the Main Street Lending Program, Primary Market Corporate Credit Facility and Secondary Market Corporate Credit Facility.
U.S. House of Representatives
Committee on Financial Services
Waters Presses for Emergency Lending Programs Not to Support Predatory Lenders
May 18, 2020
Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, sent a letter to Federal Reserve Chairman Powell and Treasury Secretary Mnuchin, confirming that loans offered by payday, installment or other lenders are not eligible to be pledged as collateral to the Term Asset-Backed Securities Loan Facility or any other Federal Reserve program or facility supported by Congress and approved by the U.S. Department of the Treasury.
Federal Agencies
Department of the Treasury
Treasury Issues Press Release on Delivery of EIPs by Prepaid Debit Card
May 18, 2020
The U.S. Department of the Treasury and Internal Revenue Service announced they are sending nearly four million Economic Impact Payments by prepaid debit card, instead of by paper check.
Consumer Financial Protection Bureau
CFPB Releases Video on Delivery of EIPs by Prepaid Debit Card
May 19, 2020
The Consumer Financial Protection Bureau released a video to inform consumers that, beginning this week, they may receive their Economic Impact Payments on a prepaid debit card, instead of a paper check.
CFPB Extends Comment Period for Supplemental NPRM on Time-Barred Debt
May 19, 2020
The Consumer Financial Protection Bureau (CFPB) announced that it will provide an additional 60 days for the public to comment on its Supplemental Notice of Proposed Rulemaking on time-barred debt disclosures. According to the CFPB, the extension is intended to provide interested parties with additional time to comment on the rulemaking, in light of the impact of the COVID-19 pandemic. The comment period was scheduled to close on June 5, 2020, but now will close on August 4, 2020.
Federal Register Notice
Federal Reserve Bank of Boston
Boston Fed President Rosengren Delivers Remarks on Federal Reserve Actions
May 19, 2020
In remarks prepared for a webinar hosted by the New England Council, Federal Reserve Bank of Boston President Eric Rosengren cited the economic cost of the necessary response to COVID-19, stressed the need to minimize the length of unemployment spells and ensure solvent firms have necessary liquidity and discussed the Main Street Lending Program, which is expected to open in the coming weeks.
Federal Deposit Insurance Corporation
FDIC Issues Consumer News Release on EDIE
May 18, 2020
The Federal Deposit Insurance Corporation provided information on its Electronic Deposit Insurance Estimator (EDIE). EDIE is an online tool that allows individuals to determine whether their accounts are fully insured at each bank where their deposits are held and to input dollar amounts on deposit in a bank, or use a hypothetical scenario, to determine deposit insurance coverage.
Commodity Futures Trading Commission
CFTC Commissioners Stump and Quintenz Deliver Statements before GMAC Meeting
May 19, 2020
Commodity Futures Trading Commission (CFTC) Commissioners Dawn Stump and Brian Quintenz both delivered statements before the first Global Markets Advisory Committee meeting of 2020.
Financial Crimes Enforcement Network
FinCEN Issues Advisory on COVID-19-Related Medical Scams
May 18, 2020
The Financial Crimes Enforcement Network (FinCEN) issued an advisory to alert financial institutions to emerging medical scams related to the COVID-19 pandemic. This advisory contains red flags, descriptions of COVID-19-related medical scams, and information on reporting suspicious activity. According to FinCEN, the advisory is the first of several it intends to issue on COVID-19-related financial crimes. FinCEN also issued a companion notice that provides detailed filing instructions for financial institutions.
Federal Housing Finance Agency
FHFA Announces Refinance and Home Purchase Eligibility for Borrowers in Forbearance
May 19, 2020
The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac have issued temporary guidance regarding the loan eligibility of borrowers who are in forbearance or have recently ended their forbearance. According to the FHFA, under the new guidance, borrowers are eligible to refinance or buy a new home if they are current on their mortgage or if, three months after their forbearance has ended, borrowers have made three consecutive payments under their repayment plan, or payment deferral option or loan modification.
Department of Labor
Department of Labor Releases Updated Fraud Prevention Resources
May 19, 2020
The U.S. Department of Labor released updated resources designed to help employers, employees and states prevent fraud or misuse in the unemployment insurance system, including the new unemployment insurance programs under the CARES Act. The updated resources include a list of all state unemployment insurance fraud hotlines, and a list of FAQs.
Occupational Safety and Health Administration
Department of Labor Adopts Revised Enforcement Policies for COVID-19.
May 19, 2020
The Department of Labor’s Occupational Safety and Health Administration (OSHA) adopted revised policies for enforcing OSHA’s requirements with respect to COVID-19. According to OSHA, the revised policies include an increase in in-person inspections at all types of workplaces, and a revision to OSHA’s previous enforcement policy for recording cases of COVID-19.
International
Bank of England
HM Treasury Announces Update to CCFF
May 19, 2020
HM Treasury published details of an update to the terms of the Covid Corporate Financing Facility (CCFF). According to the Bank of England (Bank), the CCFF has supported £18.8 billion of lending to 55 businesses, and authorized a further £38.8 billion of potential lending, including to another 68 businesses that make a significant contribution to the economy of the United Kingdom. Further according to the Bank, the CCFF will continue to allow businesses that can demonstrate that they were in sound financial health as of March 1, 2020 to borrow from the Bank by issuing short-term commercial paper.
Bank Issues CMN Regarding Joint HM Treasury and Bank CCFF
May 19, 2020
The Bank of England (Bank) issued a Consolidated Market Notice (CMN) describing the Bank’s and HM Treasury’s operation of the Covid Corporate Financing Facility (CCFF). The CMN updates the currently effective provisions of previous Market Notices in relation to the CCFF, and replaces all previous Market Notices relevant to the facility.
UK Financial Conduct Authority
FCA Announces Expiration and Termination of Various Short Selling Bans
May 19, 2020
The UK Financial Conduct Authority (FCA) issued an alert regarding the termination of short selling bans by the Austrian FMA, Belgium FSMA, French AMF, Greek HCMC, and Spanish CNMV, and the termination of a short selling ban by the Italian CONSOB.