PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, August 20, 2020
August 20, 2020
FedACTion Task Force
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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
Federal Reserve Board
Supply-Side Effects of Pandemic Mortality: Insights from an Overlapping-Generations Model
August 19, 2020
The Federal Reserve Board released a paper titled “Supply-Side Effects of Pandemic Mortality: Insights from an Overlapping-Generations Model.” The authors use an overlapping-generations model to explore the implications of mortality during pandemics for the economy’s productive capacity. Under current epidemiological projections for the progression of COVID-19, the authors’ model suggests that mortality will have, in itself, at most small effects on output and factor prices. The reason for such small effects is that projected mortality is small in proportion to the population and skewed toward individuals who are retired from the labor force. However, the authors do show that if the spread of COVID-19 is not contained, or if the ongoing pandemic were to follow a mortality pattern similar to the 1918-1920 Great Influenza pandemic, then the effects on the productive capacity would be economically significant and persist for decades.
Federal Reserve Bank of New York
Debt Relief and the CARES Act: Which Borrowers Face the Most Financial Strain?
August 19, 2020
The Federal Reserve Bank of New York’s Liberty Street Economics blog released a post examining debt relief and the CARES Act. After examining the expected debt relief from the CARES Act on mortgagors and student loan borrowers, the authors look at the 63% of borrowers who do not have a mortgage or student loan. Such borrowers will not directly benefit from the loan forbearance provisions of the CARES Act, although they may be able to receive some types of leniency that many lenders have voluntarily provided. The authors examine who such borrowers are, by age, geography, race and income, and how their financial wealth compares to other borrowers.
Department of Housing and Urban Development/Federal Housing Administration
HUD Issues Guidance for Coronavirus Relief Funds
August 19, 2020
U.S. Department of Housing and Urban Development (HUD) provided guidance and additional flexibility to state and local governments that are utilizing their existing federal disaster recovery funds to support low- and moderate-income persons and vulnerable populations for disasters occurring in 2015, 2016, 2017, 2018 and 2019 during the COVID-19 outbreak. The Federal Register notice grants extensions and clarifies submission deadlines for Community Development Block Grant disaster recovery grantees.