PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, October 23, 2020
October 23, 2020
FedACTion Task Force
Subscribe to PH FedACTion: Financial Regulatory Updates
PH Client Alerts
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.
Federal Agencies
U.S. Department of the Treasury
Joint Statement on UK-U.S. Financial Regulatory Working Group Meeting
October 22, 2020
UK and U.S. participants held the third meeting of the UK-U.S. Financial Regulatory Working Group (Working Group) on October 20, 2020. The Working Group meeting focused on five themes: (i) the economic response to, and potential financial stability impacts of, the COVID-19 crisis; (ii) international cooperation and 2021 priorities; (iii) cross-border rules and overseas recognition/equivalence/substituted compliance regimes; (iv) sustainable finance; and (v) financial innovation.
Federal Reserve Board
Business Exit during the COVID-19 Pandemic: Non-Traditional Measures in Historical Context
October 22, 2020
The Divisions of Research & Statistics and Monetary Affairs of the Federal Reserve Board released a paper titled “Business Exit during the COVID-19 Pandemic: Non-Traditional Measures in Historical Context.” According to the paper, given lags in official data releases, economists have studied “alternative data” measures of business exit resulting from the COVID-19 pandemic. The authors explore a range of alternative measures and indicators of business exit, including novel measures based on payroll events and phone-tracking data, and find tentative evidence that exit has been elevated during 2020. Evidence is somewhat mixed, however, and exiting businesses do not appear to represent a large share of U.S. employment.
Federal Reserve Bank of New York
New York Fed Revises Master Loan and Security Agreement and Releases Related Updates to Frequently Asked Questions on the Term Asset-Backed Securities Loan Facility (TALF)
October 22, 2020
The Federal Reserve Bank of New York has released a revised Master Loan and Security Agreement (MLSA) and updated Frequently Asked Questions (FAQs). The MLSA sets forth revised requirements and obligations of TALF borrowers and TALF Agents under a Federal Reserve program stood up to address the economic challenges created by the COVID-19 pandemic. The changes become effective November 5, 2020.
New York Fed Announces Fourth “Economic Inequality Policy Series” Event
October 22, 2020
On October 27, the Federal Reserve Bank of New York (New York Fed), in collaboration with the NYU Furman Center, will convene a virtual forum on COVID-19’s effects on residential and commercial evictions, titled “The COVID-19 Eviction Cliff—Who’s Affected and How to Mitigate Short- and Long-term Crises?”. The event will highlight insights on housing, commercial leases, and evictions and include conversations with researchers, government, think tanks and nonprofit leaders.
Ginnie Mae
The Ginnie Mae Global Market Analysis Report
October 22, 2020
Ginnie Mae released its October 2020 Global Market Analysis Report highlighting that:
(i) Home prices have turned up for the 12-month period ending August 2020, the first upturn since COVID-19 hit;
(ii) The net increase in Ginnie Mae outstanding is far smaller than its government-sponsored enterprises counterparts; this reflects negative net Federal Housing Administration issuance;
(iii) The Ginnie Mae nonbank origination share reached a record high of 91.4% in August 2020;
(iv) The Federal Reserve’s share of agency debt increased from 15% in the first quarter of 2020 to 20% in the second quarter of 2020 due to substantial purchases of mortgage-backed securities (MBS) in response to the COVID-19 crisis; and
(iv) Agency MBS held by foreigners in June 2020 ($1.16 trillion), while up on a year-over-year basis, has declined slightly since March 2020, possibly reflecting increased MBS absorption by the Federal Reserve.
Ginnie Mae Introduces “Capital Markets Live!”
October 22, 2020
Ginnie Mae launched a new podcast series “Capital Markets Live!”. The podcast explores issues that affect Ginnie Mae mortgage-backed securities, with insight from officials within the agency and from market participants.
Department of Labor
DOL Releases Unemployment Insurance Weekly Claims Report Update
October 22, 2020
The U.S. Department of Labor released its Unemployment Insurance Weekly Claims Report Update, which found that in the week ending October 17, the advance figure for seasonally adjusted initial claims was 787,000, a decrease of 55,000 from the previous week’s revised level. The previous week’s level was revised down by 56,000 from 898,000 to 842,000. The 4-week moving average was 811,250, a decrease of 21,500 from the previous week’s revised average. The previous week’s average was revised down by 33,500 from 866,250 to 832,750.