PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update - Friday, June 5, 2020
June 05, 2020
FedACTion Task Force
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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”), 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
Senator Crapo Statement at Title IV Implementation Hearing
June 2, 2020
U.S. Senator Mike Crapo (R-Idaho), Chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, delivered remarks at a remote hearing on implementation of Title IV of the CARES Act.
Federal Agencies
Consumer Financial Protection Bureau
Conference of State Bank Supervisors
CFPB and State Regulators Provide Additional Guidance to Assist Borrowers Impacted by the COVID-19 Pandemic
June 4, 2020
The Consumer Financial Protection Bureau and the Conference of State Bank Supervisors issued joint guidance to mortgage servicers to assist in complying with the CARES Act provisions granting a right to forbearance to consumers impacted by COVID-19.
Consumer Financial Protection Bureau Takes Action to Help Consumers Receive Relief from Credit Card Issuers
June 3, 2020
The Consumer Financial Protection Bureau (CFPB) took action to help consumers receive relief during the COVID-19 pandemic more quickly from their credit card issuer. Regulation Z requires that creditors provide written disclosures to consumers for account-opening and temporary rate or fee reduction. The CFPB has provided temporary and targeted flexibility for credit card issuers regarding electronic provision of certain disclosures required to be in writing during the COVID-19 pandemic.
Office of the Comptroller of the Currency
OCC Requests Comment on Proposal to Update Activities and Operations Rules and its Rules on Digital Activities
June 4, 2020
The Office of the Comptroller of the Currency (OCC) released an Advance Notice of Proposed Rulemaking seeking comment on rules on national banks’ and federal savings associations’ digital activities, including whether there are issues the OCC should consider in light of changes in the banking system that have occurred in response to COVID-19. Moreover, the OCC published a Notice of Proposed Rulemaking for public comment to update its rules for national bank and federal savings association activities and operations.
Department of Housing and Urban Development/Federal Housing Administration
Federal Housing Administration Announces Guidance for Insuring Single Family Home Mortgages in Forbearance
June 4, 2020
The Federal Housing Administration (FHA) announced a new, temporary policy that provides guidance for lenders to obtain FHA insurance endorsements on mortgages where the borrower has requested or obtained a COVID-19 forbearance. The policy will ensure that the safeguards of the FHA program continue to work for new homeowners facing a financial hardship due to COVID-19. The Mortgagee Letter temporarily reverses the current FHA policy, which states mortgages that are in forbearance are not eligible for FHA insurance.
Department of Labor
Department of Labor issues News Release on Unemployment Insurance Weekly Claims
June 4, 2020
The Department of Labor reported that in the week ending May 30, 2020, the advance figure for seasonally adjusted initial claims was 1,877,000, a decrease of 249,000 from the previous week’s revised level; the previous week’s level was revised up by 3,000, from 2,123,000 to 2,126,000; the 4-week moving average was 2,284,000, a decrease of 324,750 from the previous week’s revised average; and, the previous week’s average was revised up by 750, from 2,608,000 to 2,608,750.
International
Bank of England
Letter from BoE to FMIs on Distribution of Profits in Light of COVID-19
June 4, 2020
Sir Jon Cunliffe, Deputy Governor, Financial Stability at the Bank of England (BoE), issued a letter to all regulated UK Financial Market Infrastructures and Specified Providers (FMIs) concerning the distribution of profits. The letter notes that when UK FMIs’ boards are considering any distribution to shareholders or making decisions on variable remuneration, BoE expects them to pay close attention to the additional risks and financial and operational demands arising from COVID-19. BoE would expect them to discuss with it in advance of making any distributions to shareholders.
Seven Moments in Spring: COVID-19, Financial Markets and the Bank of England's Operations
June 4, 2020
Andrew Hauser, Executive Director, Markets at the Bank of England (BoE) gave a speech in which he looks back at the key moments that shaped financial markets during the first six weeks of the COVID-19 crisis. Mr. Hauser shares his perspectives on what drove markets, what BoE learned, and its response.
Bank of England Prudential Regulation Authority
COVID-19: IFRS 9 and Capital Requirements – Further Guidance on Initial and Further Payment Deferrals
June 4, 2020
Sam Woods, Deputy Governor and CEO of the Prudential Regulation Authority, issued a letter to chief executive officers of UK deposit takers, in response to updated Financial Conduct Authority guidance on retail mortgage payment deferrals.
UK Financial Conduct Authority
Banks, Building Societies and Credit Unions – Branch Access for Essential Services Update
June 4, 2020
The Financial Conduct Authority issued an update on branch access for essential services. Banks, building societies and credit unions have made significant efforts to maintain essential services for their customers during the COVID-19 crisis. As restrictions start to ease, firms will begin to re-open branches and increase the range of services available. The update includes information on priorities for firms and advice for consumers.
The FCA's Response to COVID-19 and Expectations for 2020
June 4, 2020
Megan Butler, Executive Director of Supervision – Investment, Wholesale and Specialists at the Financial Conduct Authority (FCA), delivered a speech at Personal Investment Management and Financial Advice Association’s Virtual Festival, on the FCA’s response to COVID-19 and expectations for 2020.