Insights

PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Tuesday, December 21, 2021

December 21, 2021

FedACTion Task Force

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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. Senate

Committee on Banking, Housing, and Urban Affairs

Letter: Senator Toomey Encourages Federal Employees to Report Allegations of Misconduct

December 20, 2021

In the wake of new confidential whistleblower allegations, U.S. Senate Banking Committee (Committee) Ranking Member Pat Toomey (R-PA) is encouraging individuals with knowledge of misconduct – such as harassment, discrimination, or retaliation – at Federal financial regulators and other agencies in the Committee's jurisdiction to report such information confidentially to the Committee.

Federal Agencies

Federal Reserve Bank of New York

Blog Post: Do the Fed's International Dollar Liquidity Facilities Affect Offshore Dollar Funding Markets and Credit?

December 20, 2021

The Federal Reserve Bank of New York published a Liberty Street Economics blog post titled, "Do the Fed's International Dollar Liquidity Facilities Affect Offshore Dollar Funding Markets and Credit?"

Blog Post

Federal Reserve Bank of Boston

Paper: Population Aging and the US Labor Force Participation Rate

December 20, 2021

The Federal Reserve Bank of Boston published a paper titled, "Population Aging and the US Labor Force Participation Rate."

Paper

Office of the Comptroller of the Currency

OCC Reports Third Quarter 2021 Bank Trading Revenue

December 20, 2021

The Office of the Comptroller of the Currency (OCC) reported trading revenue of U.S. commercial banks and savings associations of $6.8 billion in the third quarter of 2021. The third quarter trading revenue was $1.3 billion, or 15.5%, less than the previous quarter.

Other Real Estate Owned: Updated Comptroller's Handbook Booklet and Rescissions

December 20, 2021

The Office of the Comptroller of the Currency (OCC) issued an updated "Other Real Estate Owned" booklet of the Comptroller's Handbook, which is prepared for use by OCC examiners in connection with the examination and supervision of national banks, federal savings associations, and federal branches and agencies of foreign banking organizations.

Securities and Exchange Commission

Statement: Statement of Resignation by Commissioner Elad L. Roisman

December 20, 2021

Securities and Exchange Commission Commissioner Elad L. Roisman gave a statement of his intent to resign his position by the end of January.

Letter: Sample Letter to China-Based Companies

December 20, 2021

The Securities and Exchange Commission's Division of Corporation Finance (Division) issued a sample letter with comments to China-based companies seeking more specific and prominent disclosure about the legal and operational risks associated with China-based companies.

Sample Letter

Consumer Financial Protection Bureau

CFPB and DOJ Put Landlords and Mortgage Servicers on Notice about Servicemembers' and Veterans' Rights

December 20, 2021

The Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) issued two joint letters today regarding legal housing protections for military families. One letter was sent to landlords and other housing providers regarding protections for military tenants. A second letter was sent to mortgage servicers regarding military borrowers who have already exited or will be exiting COVID-19 mortgage forbearance programs in the coming weeks and months.

Financial Crimes Enforcement Network

FinCEN Analysis Reveals Upward Trend of SARs Related to Wildlife Trafficking

December 20, 2021

The Financial Crimes Enforcement Network (FinCEN) today released a Financial Threat Analysis on wildlife trafficking threat patterns and trend information identified in Bank Secrecy Act (BSA) data. The report aims to further inform efforts to combat wildlife trafficking and the associated movement of illicit proceeds, which are estimated to be between $7 and $23 billion per year and account for a quarter of all wildlife trade.

The Office of the Comptroller of the Currency

Federal Reserve System

Federal Deposit Insurance Corporation

Securities and Exchange Commission

Financial Housing Finance Agency

Department of Housing and Urban Development

Federal Housing Finance Agency

Notice: Credit Risk Retention – Notification of Determination of Review of the Definition of a "Qualified Residential Mortgage"

December 20, 2021

The Office of the Comptroller of the Currency, Federal Reserve System, Federal Deposit Insurance Corporation, Securities and Exchange Commission, the Financial Housing Finance Agency, and Department of Housing and Urban Development provided notice of the determination of the results of the review of the definition of qualified residential mortgage, the community focused residential mortgage exemption, and the exemption for qualifying three-to-four unit residential mortgage loans, in each case as currently set forth in the Credit Risk Retention Regulations. After completing the review, the agencies have determined not to propose any change at this time to the definition of qualified residential mortgage, the community-focused residential mortgage exemption, or the exemption for qualifying three-to-four unit residential mortgage loans.

Federal Housing Finance Agency

FHFA Announces Final 2020 Housing Goals Performance Determinations

December 20, 2021

The Federal Housing Finance Agency announced the final determinations for Fannie Mae's and Freddie Mac's performance on the 2020 housing goals.

Bulletin: Enterprise Fair Lending and Fair Housing Compliance

December 20, 2021

The Federal Housing Finance Agency (FHFA) published Advisory Bulletin AB 2021-04: Enterprise Fair Landing and Fair Housing Compliance. The purpose of this advisory bulletin is to provide FHFA's supervisory expectations and guidance to Fannie Mae and Freddie Mac on fair lending compliance.

Advisory Bulletin

Statement: FHFA Acting Director Sandra L. Thompson's Statement on Special Purpose Credit Programs as a Remedy for Disparities in Access to Homeownership

December 20, 2021

Federal Housing Finance Agency Acting Director Sandra L. Thompson gave a statement on special purpose credit programs as a remedy for disparities in access to homeownership.

Statement

Fannie Mae

Economy Finishes 2021 Strong; Inflation is Top Risk Concern for 2022

December 20, 2021

Fannie Mae published its economic outlook for full-year 2021. The outlook for full-year 2021 economic growth was revised upward to 5.5%, an improvement of 0.7 percentage points compared to last month's projection, due primarily to stronger-than-anticipated consumer spending and inventory investment data, according to the December 2021 commentary from the Fannie Mae Economic and Strategic Research (ESR) Group. The ESR Group also adjusted downward its forecast for 2022 real gross domestic product (GDP) growth to 3.2%, noting that strong recent data likely reflects a pull-forward of activity from the first half of 2022 and is unlikely to be sustained. The principal macroeconomic concern for 2022 remains accelerating inflation – and how the market and policymakers respond to it. While there's significant room for uncertainty regarding the near-term path of inflation, the ESR Group projects it to peak at approximately 7.0 percent annualized in the first quarter of 2022 before gradually decelerating to 3.8 percent by year-end. The ESR Group expects the Federal Reserve to begin a more aggressive pace of monetary tightening in the new year as part of its effort to combat rising price pressures without tipping the economy into recession. The forecast is now calling for interest rate increases in the second and fourth quarters of 2022, and then quarterly through 2023.

International

European Commission

Single Market Scoreboard 2021: Member States Edging Forward to a Better Implementation of Single Market Rules for a More Resilient Europe

December 20, 2021

The European Commission published the Single Market Scoreboard 2021, which shows that, despite improvements in certain areas, better implementation of Single Market rules is needed on the ground. Such improvements would help EU businesses and citizens fully benefit from their freedoms and rights, to facilitate green and digital transitions.

European Banking Authority

The EBA Paves the Way for Setting up a Central Database on Anti-Money Laundering and Countering the Financing of Terrorism

December 20, 2021

The European Banking Authority (EBA) published its draft Regulatory Technical Standards (RTS) on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in the EU. The European Reporting system for material CFT/AML weaknesses will be a key tool for coordinating efforts to prevent and counter money laundering and terrorism financing in the European Union.

EBA Consults on the Performance-Related Triggers for Non-Sequential Amortization Systems in Simple, Transparent and Standardized On-Balance-Sheet Securitizations

December 20, 2021

The European Banking Authority (EBA) launched a public consultation on its draft Regulatory Technical Standards (RTS) specifying and, where relevant, calibrating the minimum performance-related triggers for simple, transparent and standardized (STS) on-balance-sheet securitizations that feature non-sequential amortization.

EBA Publishes the Methodology for Investment Firms to be Reclassified as Credit Institutions

December 20, 2021

The European Banking Authority (EBA) published a package of two final draft regulatory technical standards (RTS) regarding the reclassification of investment firms as credit institutions.

The EBA Introduces Enhanced Proportionality in Supervisory Reporting

December 20, 2021

The European Banking Authority (EBA) published its final draft Implementing Technical Standards on supervisory reporting with respect to common reporting, asset encumbrance, global systemically important institutions and additional liquidity monitoring metrics. Proportionality was a key consideration in the proposed changes, making reporting requirements better suited to the size and risk of the institutions.

UK Financial Conduct Authority

PS21/19: Changes to the SCA-RTS and to the Guidance in "Payment Services and Electronic Money – Our Approach" and the Perimeter Guidance Manual

December 20, 2021

The Financial Conduct Authority published Policy Statement PS 21/19: Changes to the SCA-RTS and to the Guidance in "Payment Services and Electronic Money – Our Approach" and the Perimeter Guidance Manual.

Assessment

PS20/8: Motor Finance Discretionary Commission Models and Consumer Credit Commission Disclosure

December 20, 2021

The Financial Conduct Authority published Policy Statement PS20/8: Motor Finance Discretionary Commission Models and Consumer Credit Commission Disclosure.