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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, February 24, 2021

February 24, 2021

By Paul Hastings Professional

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PH Client Alerts

Click here to read more from our Coronavirus series.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (Nominee)

Small Business Administration – Isabel Guzman (Nominee)

Commodity Futures Trade Commission

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (Nominee)

Department of Education – Miguel Cardona (Nominee)

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 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

Federal Reserve Board Chair Powell Delivers Semiannual Monetary Policy Report

February 23, 2021

Jerome H. Powell, Chair of the Board of Governors of the Federal Reserve System (Federal Reserve), delivered testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, presenting the Federal Reserve’s semiannual Monetary Policy Report.

Senators Brown and Toomey Deliver Opening Statements at Banking Committee Hearing on The Federal Reserve's Semiannual Monetary Policy Report

February 23, 2021

U.S. Senators Sherrod Brown (D-OH), Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, and Pat Toomey (R-PA), the Ranking Member, delivered opening statements at a hearing entitled “The Semiannual Monetary Policy Report to Congress.”

Senator Menendez Introduces Bill to Promote Corporate Diversity

February 23, 2021

U.S. Senator Bob Menendez (D-NJ) introduced legislation that would require public companies to disclose information related to the racial, gender, ethnic makeup and veteran status of corporate boards and senior management.

Federal Agencies

Federal Reserve Board

Federal Reserve Board Releases Minutes of January Discount Rate Meetings

February 23, 2021

The Board of Governors of the Federal Reserve System released the minutes of its interest rate meetings on January 19 and January 27, 2021.

Conference of State Bank Supervisors

State Financial Regulators Announce 2021 Priorities

February 23, 2021

Conference of State Bank Supervisors President and CEO John W. Ryan announced in a speech at the Nationwide Multistate Licensing System Annual Conference the state system’s 2021 priorities to advance networked supervision, a strategy that uses technology, data and uniform practices to strengthen regulation.

Federal Deposit Insurance Corporation

FDIC-Insured Institutions Reported Net Income of $59.9 Billion In Fourth Quarter 2020

February 23, 2021

The Federal Deposit Insurance Corporation (FDIC) released its Quarterly Banking Profile results for the fourth quarter 2020. For the commercial banks and savings institutions insured by the FDIC, aggregate net income totaled $59.9 billion in fourth quarter 2020, an increase of $5 billion (9.1%) from a year ago. The improvement in quarterly net income was led by a reduction in provision expenses.

FDIC Releases Technical Assistance Videos on Fair Lending

February 23, 2021

The Federal Deposit Insurance Corporation (FDIC) released nine technical assistance videos on fair lending. The information in the videos is intended as a high-level overview to help FDIC-supervised institutions assess and mitigate fair lending risk, and to understand how FDIC examiners evaluate fair lending compliance.

Consumer Financial Protection Bureau

CFPB Updates Guidance for the ATR/QM Rule

February 23, 2021

The Consumer Financial Protection Bureau (Bureau) updated the small entity compliance guide and other compliance aids related to the Ability to Repay and Qualified Mortgages (ATR/QM) Rule. The Bureau also issued a statement regarding the mandatory compliance date for the General QM Final Rule and possible reconsideration of the General QM Final Rule and Seasoned QM Final Rule.

Department of Housing and Urban Development/Federal Housing Administration


Federal Housing Administration Announces Extensions of Single Family Policy Flexibilities to Maintain Mortgage Originations and 203(k) Rehabilitation Projects through June 2021

February 23, 2021

The Federal Housing Administration announced extensions of a set of policy flexibilities for single family lenders and servicers designed to maintain new mortgage originations for homebuyers and allow 203(k) rehabilitation projects to continue during the COVID-19 pandemic. The temporary policies will be in place through June 30, 2021.

Federal Housing Finance Agency

U.S. House Prices Rose 10.8 Percent over the Last Year, Up 3.8 Percent in the Fourth Quarter

February 23, 2021

U.S. house prices rose 10.8% from the fourth quarter of 2019 to the fourth quarter of 2020 according to the Federal Housing Finance Agency (FHFA) House Price Index. House prices were up 3.8% compared to the third quarter of 2020. FHFA's seasonally adjusted monthly index for December was up 1.1% from November.

International

UK Financial Conduct Authority

FCA Launches Guidance for Firms on the Fair Treatment of Vulnerable Customers

February 23, 2021

The Financial Conduct Authority published final guidance clarifying its expectations of firms on the fair treatment of vulnerable customers.