PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, July 30, 2020
July 30, 2020
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Major Developments
Federal Reserve Board Extends Temporary U.S. Dollar Liquidity Swap Lines, FIMA Repo Facility
July 29, 2020
The Board of Governors of the Federal Reserve System (FRB) announced the extensions, through March 31, 2021, of its temporary U.S. dollar liquidity swap lines, and the temporary repurchase agreement facility for foreign and international monetary authorities. These facilities were established in March 2020 to ease strains in global dollar funding markets resulting from COVID-19, and mitigate the effect of such strains on the supply of credit to households and businesses, both domestically and abroad. The extension is expected to help sustain recent improvements in global U.S. dollar funding markets.
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.
Senate Committee on Small Business and Entrepreneurship/House Committee on Small Business
Rubio, Velázquez Release Statements on SBA Inspector General’s Warning of Suspected EIDL Fraud
July 28, 2020
In response to the U.S. Small Business Administration Inspector General’s issuance of a Management Advisory to the SBA and Congress, warning of suspected fraudulent activity in the COVID-19 Economic Injury Disaster Loan program, Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, and Congresswoman Nydia M. Velázquez (D-NY), Chairwoman of the House Committee on Small Business, each released statements.
Federal Agencies
Department of the Treasury
Treasury, USPS Agree on CARES Act Loan Terms
July 29, 2020
The U.S. Department of the Treasury (Treasury) announced it had reached an agreement with the United States Postal Service (USPS) on the material terms and conditions of a loan of up to $10 billion to the USPS under Section 6001 of the CARES Act. The loan will be documented in an agreement to be developed and executed by Treasury and USPS.
Federal Reserve Board
Federal Reserve Issues FOMC Statement
July 29, 2020
The Federal Reserve issued a statement by the Federal Open Market Committee (FOMC). In its statement, the FOMC announced it had “decided to maintain the target range for the federal funds rate at 0 to 1/4 percent”, which it expects to maintain “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.” The FOMC’s statement further noted that “over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions.”
Securities and Exchange Commission
SEC Releases Agenda for Upcoming SBCFAC Meeting
July 29, 2020
The U.S. Securities and Exchange Commission (SEC) released the agenda for the August 4, 2020 meeting of its Small Business Capital Formation Advisory Committee (SBCFAC), which will be hosted via video conference. The SBCFAC recently met to develop solutions that can support small businesses’ short- and long-term capital needs. The SEC responded to the SBCFAC’s feedback with temporary emergency relief to expedite the offering process for smaller, established companies during the current COVID-19 crisis.
Investment Management’s Blass Delivers Speech to PLI Investment Management Institute
July 29, 2020
Dalia Blass, Director of the U.S. Securities and Exchange Commission’s (SEC) Division of Investment Management (Division), delivered a speech to the PLI Investment Management Institute. Director Blass’ speech focused on key developments in the past year including COVID-19, expectations from the Division for the remainder of the year, and how the Division is working to improve efficiencies and enhance its monitoring.
Consumer Financial Protection Bureau
Kraninger Testifies Before Senate Banking Committee
July 29, 2020
Kathleen L. Kraninger, Director of the Consumer Financial Protection Bureau (CFPB), testified before the Senate Committee on Banking, Housing, and Urban Affairs (Committee), in order to present to the Committee the CFPB’s Spring 2020 Semi-Annual Report, which covers the period October 1, 2019 through March 31, 2020.
National Credit Union Association
NCUA Issues Alert Regarding Treatment of COVID-19-Related Loss Mitigation Options under RESPA
July 29, 2020
The National Credit Union Association (NCUA) issued an alert (Alert) to notify credit unions that the Consumer Financial Protection Bureau’s (CFPB) interim final rule amending parts of Regulation X became effective on July 1, 2020. The interim final rule added a temporary exception in Subpart C to Regulation X for certain COVID-19-related loss mitigation options. The Alert outlines important changes that may impact credit unions that service mortgages regulated by Regulation X.
State Agencies
California Department of Business Oversight
California DBO Observes Substantial Increase in Consumer Complaints and Inquiries during COVID-19
July 29, 2020
Manuel P. Alvarez, Commissioner of the California Department of Business Oversight (DBO), announced the DBO has experienced an increase of more than 40% in consumer complaints, calls and inquiries since the onset of the COVID-19 pandemic.
International
UK Financial Conduct Authority
FCA Issues New Guidance to Help Firms Protect Vulnerable Consumers
July 29, 2020
The United Kingdom’s Financial Conduct Authority issued new best practice guidance (Guidance) designed to help financial service firms assist consumers displaying one or more characteristics of vulnerability, including physical and mental health issues, or recent life events such as bereavement. The Guidance aims to provide a framework for firms to accurately assess whether they are treating vulnerable consumers fairly, in order to ensure consistency across the financial services sector.