PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Wednesday, July 29, 2020
July 29, 2020
FedACTion Task Force
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Major Developments
Federal Reserve Board Announces Extension of COVID-19 Lending Facilities
July 28, 2020
The Board of Governors of the Federal Reserve System (FRB) announced an extension through December 31, 2020 of the following COVID-19 facilities, all of which were scheduled to expire on or about September 30, 2020:
the Primary Dealer Credit Facility;
the Money Market Mutual Fund Liquidity Facility;
the Primary Market Corporate Credit Facility;
the Secondary Market Corporate Credit Facility;
the Term Asset-Backed Securities Loan Facility;
the Paycheck Protection Program Liquidity Facility; and
the Main Street Lending Program.
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.
U.S. Senate
Committee on Small Business and Entrepreneurship
Phase IV Small Business Relief Package Introduced, Including Second Round of PPP Loans
July 27, 2020
The Continuing Small Business Recovery and Paycheck Protection Program Act, an effort to build upon the Paycheck Protection Program (PPP) and other small business relief programs in the CARES Act, was introduced by Senators Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, and Senator Susan Collins (R-ME), a senior member of the Senate Committees on Appropriations and Health, Education, Labor, and Pensions. The bill would allow the most severely affected small businesses to receive a second PPP loan, and would create a new approximately $60 billion long-term recovery loan program that would target low-income communities and minority-owned and seasonal businesses.
U.S. House of Representatives
Committee on Financial Services
Waters, Clay, and Heck Request Pause on FHFA Capital Framework Rulemaking
July 28, 2020
Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, Congressman William Lacy Clay (D-MO), Chair of the Subcommittee on Housing, Community Development and Insurance, and Congressman Denny Heck (D-WA), sent a letter to Dr. Mark Calabria, Director of the Federal Housing Finance Agency (FHFA), requesting that the agency pause until after the COVID-19 pandemic a rulemaking that would set new capital requirements for Fannie Mae and Freddie Mac (collectively, the Enterprises). In their letter, the representatives also urged FHFA to provide better analysis on how the proposed rule would impact borrowers of color. In May, 2020, FHFA announced the 424-page rule that would establish a new, complex regulatory capital framework for the Enterprises.
Federal Agencies
Securities and Exchange Commission
SEC Announces Creation of Event and Emerging Risks Examination Team
July 28, 2020
The U.S. Securities and Exchange Commission (SEC) announced the creation of the Event and Emerging Risks Examination Team (EERT) in the Office of Compliance Inspections and Examinations. According to the SEC’s announcement, the EERT will engage with financial firms about emerging threats and current market events, and mobilize to provide expertise and resources to the SEC's regional offices when critical matters such as the COVID-19 pandemic arise.
U.S. Small Business Administration
SBA OIG Issues Report Outlining EIDL Fraud Concerns
July 28, 2020
Hannibal “Mike” Ware, Inspector General of the U.S. Small Business Administration, issued a management alert to inform the agency of strong indicators of widespread potential fraud in the Economic Injury Disaster Loan and Advance grant programs.
Federal Reserve Bank of Boston
Federal Reserve Bank of Boston Announces Webinar for Nonprofit Borrowers under Main Street Lending Program
July 28, 2020
The Federal Reserve Bank of Boston scheduled a webinar for nonprofit organizations to learn about the new Main Street Lending Program facilities for nonprofit organizations. The session will provide an overview of the program including terms, conditions and eligibility requirements of the two new nonprofit loan options. In its statement, the Reserve Bank also provided a state-by-state list of participating lenders.
International
Bank of England Prudential Regulatory Authority
PRA Issues Statements on EBA Guidelines on COVID-19 Disclosures, and Dividend Payments and Share Buybacks
July 28, 2020
The Bank of England’s Prudential Regulation Authority issued Statements on the European Banking Authority’s Guidelines on COVID-19 disclosures and dividend payments and share buybacks beyond the year 2020.
UK Financial Conduct Authority
FCA Publishes Statement on Mortgage Prisoners and COVID-19 Pandemic, as well as a Consultation Paper on Potential Assistance to Mortgage Market Consumers
July 28, 2020
The United Kingdom’s Financial Conduct Authority published a Statement on mortgage prisoners, and a Consultation Paper containing proposals designed to support consumers within the mortgage market.