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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Saturday, September 5, 2020

September 05, 2020

FedACTion Task Force

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PH Client Alerts

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Major Developments

Fed Announces Main Street Lending Program is Fully Operational for Nonprofit Organizations

September 4, 2020

The Federal Reserve Bank of Boston announced that the Main Street Lending Program is now fully operational and is accepting submissions of eligible loans to nonprofit organizations, submitted by registered lenders. In addition, the Nonprofit Facilities FAQs and Instructions for Lender Required Documentation were amended to reflect that the Nonprofit Organization New Loan Facility and Nonprofit Organization Expanded Loan Facility are now operational.

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

Federal Reserve Bank of New York

New York Fed Looks to Expand Agency Commercial Mortgage-Backed Securities Counterparties

September 4, 2020

The Federal Reserve Bank of New York (FRBNY) announced that it is looking to expand the approved counterparties for the Open Market Trading Desk’s purchases of agency commercial mortgage-backed securities (agency CMBS). By widening the eligibility criteria for agency CMBS counterparties, the FRBNY seeks to increase the operational capacity and the reach of the agency CMBS purchases. This counterparty expansion also aims to further the FRBNY’s commitment to support equal opportunity and diversity in the market operations and facilities that have been enacted in response to COVID-19.

Measuring Global Financial Market Stresses in the Wake of COVID-19

September 4, 2020

The authors of a report issued by the Federal Reserve Bank of New York propose measures of financial market stress for 46 countries and regions across the world. Their measures indicate that worldwide financial market stresses rose significantly in March in the wake of the COVID-19 pandemic, but financial market conditions have since normalized rapidly. They also show that their financial stress measures have predictive power for the near-term economic outlook across most parts of the world, with the exception of China.

Department of Housing and Urban Development/Federal Housing Administration

HUD Urges Localities to Prevent COVID-19 Related Evictions by Using Grant Funds

September 4, 2020

The U.S. Department of Housing and Urban Development advised all states, cities, communities and nonprofits who received Emergency Solutions Grants or Community Development Block Grant funds that they may use such funds to provide rental assistance or other aid to individuals experiencing financial hardship because of the COVID-19 pandemic and are at risk of being evicted, consistent with applicable laws, regulations and guidance.

International

Bank of England

The Economy and COVID-19: Looking Back and Looking Forward

September 4, 2020

Michael Saunders, External Member of the Monetary Policy Committee of the Bank of England, gave a speech titled “The Economy and COVID-19: Looking Back and Looking Forward.”