Dodd-Frank News Center

Agencies issue examiner guidance for assessing safety and soundness considering COVID-19

This story appeared in Bank Digest.

The Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Comptroller of the Currency, and National Credit Union Administration, in conjunction with the state bank and credit union regulators, have issued examiner guidance to promote consistency and flexibility in the supervision and examination of financial institutions affected by the COVID-19 pandemic. The interagency guidance instructs examiners to consider the unique, evolving, and potentially long-term nature of the issues confronting institutions due to the COVID-19 pandemic and to exercise appropriate flexibility in their supervisory response.

 

FDIC acts to mitigate effects of participating in PPP and lending facilities

This story appeared in Bank Digest.

The Federal Deposit Insurance Corporation has issued a final rule that mitigates the deposit insurance assessment effects of participating in the Small Business Administration’s Paycheck Protection Program as well as the Paycheck Protection Program Liquidity Facility and Money Market Mutual Fund Liquidity Facility established by the Federal Reserve Board. To ensure that the changes are applied to assessments starting in the second quarter of 2020, the final rule will be effective immediately upon publication in the Federal Register with an application date of April 1, 2020.

 

Treasury and SBA agree to make additional PPP data available

This story appeared in Bank Digest.

The Treasury Department and Small Business Administration have agreed to make public additional data regarding the SBA’s Paycheck Protection Program. The agreement with bipartisan leaders of the Senate Small Business Committee is intended to ensure that the interests of both transparency and protections for small businesses are served. Representative James E. Clyburn (D-SC) issued a statement on the agreement in which he said he was pleased that “Treasury and SBA took a step in the right direction by announcing they will release the recipients of ‘nearly 75 percent of the loan dollars approved.’ However, this is far from the full transparency that American taxpayers deserve.” The SBA has also issued a report providing PPP data disclosed through June 20, 2020, including total dollars approved, loan sizes, lender sizes and types, loans approved by state, top lenders, loans by industry sector, and funds remaining.

CFPB releases FAQs on CARES Act credit reporting requirements

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released frequently asked questions regarding the consumer reporting requirements of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). According to a related Bureau blog post, the CARES Act “places important requirements on companies that furnish information to consumer reporting agencies about consumers affected by the COVID-19 pandemic.” The Bureau previously issued a statement informing lenders that they must comply with these requirements.

Fed seeks feedback on proposal to expand Main Street Lending Program to nonprofits

This story appeared in Bank Digest.

The Federal Reserve Board will be seeking public feedback on a proposal to expand its Main Street Lending Program to provide access to credit for nonprofit organizations. The Fed said that as with the existing Main Street Lending Program, which targets small and medium-sized businesses, the proposed expansion would offer loans to small and medium-sized nonprofits that were in sound financial condition before the coronavirus pandemic and could benefit from additional liquidity during this period. Feedback may be submitted by email until June 22, 2020.

Fed resumes examination activities for all financial institutions

This story appeared in Bank Digest.

The Federal Reserve Board has announced that it will resume examination activities for all financial institutions, including those with total consolidated assets of less than $100 billion. Having previously reduced its exam activity temporarily in light of COVID-19, the Fed now is of the opinion that banks have had time to implement contingency operating plans and adapt their operations, so exam activity will resume.

At the same time, the Fed anticipates that examination activities, including full-scope examinations, will be conducted offsite until conditions improve to facilitate on-site examinations. Further, the Fed intends to continue working with banks to understand any specific issues they may be facing.

Mnuchin and Carranza issue joint statement on Paycheck Protection Program Flexibility Act

This story appeared in Bank Digest.

Treasury Secretary Steven Mnuchin and Small Business Administration Administrator Jovita Carranza have issued a joint statement on the enactment of the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010). They thanked President Donald Trump and congressional leaders, as well as other Congress members, and said the bill would “provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen our country.”

The release containing the joint statement also noted that the SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing the legislative amendments to the Paycheck Protection Program.

Fed expands Main Street Lending Program

This story appeared in Bank Digest.

Federal Reserve Board has expanded its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The changes include: (1) lowering the minimum loan size for certain loans to $250,000 from $500,000; (2) increasing the maximum loan size for all facilities; (3) increasing the term of each loan option to five years (from four years); and (4) extending the repayment period for all loans by delaying principal payments for two years (rather than one).

CFPB and Conference of State Bank Supervisors issue guidance on CARES Act forbearance provisions

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau and the Conference of State Bank Supervisors have issued joint guidance to mortgage servicers on forbearance provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). The guidance includes links to relevant rules and guidelines and a set of relevant questions and answers.

 

Fed expands eligibility to use Municipal Liquidity Facility

This story appeared in Bank Digest.

The Federal Reserve Board has expanded the number and type of entities eligible to directly use its Municipal Liquidity Facility. Under the new terms, all U.S. states will be able to have at least two cities or counties eligible to directly issue notes to the MLF regardless of population.

Governors of each state will also be able to designate two issuers in their jurisdictions whose revenues are generally derived from operating government activities to be eligible to directly use the facility. The Fed said that in addition to the expanded terms, the MLF continues to be directly open to U.S. states, the District of Columbia, U.S. cities with a population of at least 250,000 residents, U.S. counties with a population of at least 500,000 residents, and certain multistate entities.