Washington Report 360 | May 15, 2020

Highlights

• FRB Supervision and Regulation Report indicates the FRB has deferred or cancelled non-critical examinations for large firms but continues to conduct examinations that are important to understanding issues of safety and soundness, consumer protection, and financial stability as well as areas of heightened risk due to the COVID-19 containment measures.
  
• Focus on credit risk highlighted by agency guidance on credit risk review systems, allowances for credit losses, billing errors and open-end credit.
• Focus on FRB credit facilities highlighted by updates to the MLF, TALF, PPPLF; launch of the SMCCF; and the FRB Chairman’s remarks about potential need for additional measures.
• SBA PPP terms continue to evolve with two new FAQs on SBA reviews of loans in excess of $2 million and an interim final rule on loan increases for certain partnerships and seasonal employers.

Financial services regulatory and policy news

Banking 

• FRB:
  • Published its supervision and regulation report
    FRB, May 8, 2020
  • Updated pricing and other information for its municipal liquidity facility
    FRB, May 11, 2020
  • Released a Notice of Interest for eligible issuers wishing to participate in the MLF
    NY FRB, May 15, 2020
  • Updated the TALF term sheet and announced information to be disclosed monthly for the TALF and PPPLF
    FRB, May 12, 2020
  • Announced the secondary market corporate credit facility start date
    NY FRB, May 11, 2020
  • Outlined central bank efforts to provide liquidity and need for more
    FRB, May 13, 2020
• Federal bank and credit union agencies:
  • Released final guidance on credit risk review systems
    FRB, OCC, FDIC, NCUA, May 8, 2020
  • Released guidance on allowances for credit losses
    FRB, OCC, FDIC, NCUA, May 8, 2020
• CFPB:
  • Issued final remittance rule for international money transfers
    CFPB, May 11, 2020
  • Launched a COVID-19 mortgage and housing assistance website with FHFA and HUD
    CFPB, May 12, 2020
  • Issued FAQs outlining responsibilities for billing errors, payments and deposits, and open-end credit
    CFPB, May 13, 2020
• FDIC proposed mitigating deposit insurance assessment effects of PPP, PPPLF, and MMLF participation
  FDIC May 12, 2020
• OCC issued corporate governance guidance on annual meetings
  OCC, May 12, 2020

Capital Markets

• SEC outlined efforts of the COVID-19 market monitoring group
  SEC, May 13, 2020

Other

• SBA and Treasury issued new FAQs and an interim final rule on loan increases
  SBA, Treasury, May 13, 2020
• SBA OIG issued a Flash Report on implementation of the PPP
  SBA, May 8, 2020
• FATF published a report on money laundering and terrorist financing risks during COVID-19
  FATF, May 4, 2020
• FHFA extended the moratorium on foreclosures and evictions to June 30
  FHFA, May 14, 2020
• FHFA announced payment deferral as a new repayment option for homeowners in COVID-19 forbearance
  FHFA, May 13, 2020

Industry news

• ESG Investing shines in market turmoil, with help from big tech 
  WSJ, May 12, 2020
• Mnuchin supports changes to small-business aid program
  WSJ, May 12, 2020
• Bond ETFs climb as the fed kicks off historic prchase program
  WSJ, May 12, 2020
• Banks tore up digital scripts once pandemic hit
  American Banker, May 12, 2020
• FINRA clarifies sales contest restrictions for proposal to align suitability, Reg BI
  InvestmentNews, May 14, 2020

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