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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, December 30, 2020

December 30, 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

Federal Reserve Extends Termination Date of Main Street Lending Program Facilities to January 8, 2021

December 29, 2020

In order to allow more time to process and fund loans that were submitted to the Main Street Lending Program loan portal on or before December 14, 2020, the Board of Governors of the Federal Reserve System extended the termination date of the Main Street Lending Program facilities to January 8, 2021.

Federal Reserve Bank of Boston

Evaluating the Benefits of a Streamlined Refinance Program

December 28, 2020

The Federal Reserve Bank of Boston released an article titled “Evaluating the Benefits of a Streamlined Refinance Program.” In the article, the authors analyze the effects of a streamlined refinance program for government-insured loans that would allow borrowers to refinance without needing to document employment or income. In addition, the authors consider a cash-out component that would allow borrowers to extract some of the substantial housing equity that many have accumulated in recent years.

Consumption Heterogeneity by Occupation: Understanding the Impact of Occupation on Personal Consumption during the COVID-19 Pandemic

December 28, 2020

The Federal Reserve Bank of Boston released a paper titled “Consumption Heterogeneity by Occupation: Understanding the Impact of Occupation on Personal Consumption during the COVID-19 Pandemic.” In the paper, the authors use data on high-frequency credit/debit card spending to investigate how consumption spending varied by occupation during the period from early March through the end of August 2020. In particular, they analyze whether workers in occupations associated with higher risk of unemployment due to the COVID-19 lockdowns demonstrated relatively lower consumption spending and whether the CARES Act may have influenced their spending behavior.