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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Saturday, July 31, 2021

July 31, 2021

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 the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

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. House of Representatives

Committee on Financial Services

Committee Passes Legislation to Advance Investor Protections, Support Manufactured Housing Communities, and Promote De Novo Depository Institutions

July 30, 2021

The House Financial Services Committee passed eleven bills to protect investors and reduce conflicts of interest born out of payment for order flow, support manufactured housing communities, fight for everyone's right to vote, promote de novo depository institutions and strengthen protections for the London Interbank Offered Rate (LIBOR) transition.

Press Release

Legislation Introduced to Extend Federal Eviction Moratorium to Keep Families Housed

July 30, 2021

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, released a statement following the introduction of her legislation, the "Protecting Renters from Evictions Act, of 2021," that would extend the eviction moratorium through the end of the year.

Press Release

Federal Agencies

Federal Reserve Board

Paper: How Resilient Is Mortgage Credit Supply? Evidence from the COVID-19 Pandemic

July 30, 2021

The Board of Governors of the Federal Reserve System published a paper titled, "How Resilient Is Mortgage Credit Supply? Evidence from the COVID-19 Pandemic," which studies the evolution of U.S. mortgage credit supply during the COVID-19 pandemic.

Full Paper

Paper: The Long-Lived Cyclicality of the Labor Force Participation Rate

July 30, 2021

The Board of Governors of the Federal Reserve System published a paper titled, "The Long-Lived Cyclicality of the Labor Force Participation Rate." The paper examines the U.S. labor force participation rate (LFPR) response to exogenous state-level business cycle shocks, finding that the LFPR is highly cyclical, but with a significantly longer-lived response than the unemployment rate.

Full Paper

Paper: What's Wrong with Annuity Markets?

July 30, 2021

The Board of Governors of the Federal Reserve System published a paper titled, "What's Wrong with Annuity Markets?," which shows that the supply of life annuities in the U.S. is constrained by interest rate risk.

Full Paper

Securities and Exchange Commission

Statement: Investor Protection Related to Recent Developments in China by SEC Chair Gary Gensler

July 30, 2021

Securities and Exchange Commission Chair Gary Gensler made a statement titled, "Statement on Investor Protection Related to Recent Developments in China," where he discussed the government of the People's Republic of China new guidance to and restrictions on China-based companies raising capital offshore, including through associated offshore shell companies. These developments include government-led cybersecurity reviews of certain companies raising capital through offshore entities.

Statement

U.S. Small Business Administration

Vice President Kamala Harris Joins SBA Administrator Isabella Casillas Guzman for a National Conversation with Small Business Owners and Leaders on COVID Economic Aid and Recovery

July 30, 2021

Vice President Kamala Harris and U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman met with small business owners and advocates to discuss critical Biden-Harris economic aid to help small businesses in rural, urban and underserved communities.

Readout

Federal Housing Finance Agency

FHFA Extends COVID-19 REO Eviction Moratorium through September 30, 2021

July 30, 2021

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac are extending the moratorium on single-family real estate owned (REO) evictions until September 30, 2021. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratorium was set to expire on July 31, 2021.

Press Release

International

European Banking Authority

Report: EBA Publishes the Results of Its 2021 EU-wide Stress Test

July 30, 2021

The European Banking Authority (EBA) published the results of its 2021 EU-wide stress test, which involved 50 banks from 15 European Union (EU) and European Economic Area (EEA) countries, covering 70% of the EU banking sector assets.

Bank of England

Working Paper: Imperfect Pass-Through to Deposit Rates and Monetary Policy Transmission

July 30, 2021

The Bank of England published a staff working paper titled, "Imperfect Pass-Through to Deposit Rates and Monetary Policy Transmission," which documents three salient features of the transmission of monetary policy shocks: imperfect pass-through to deposit rates, impact on credit spreads, and substitution between deposits and other bank liabilities.