Washington Report 360 | June 25, 2021

FHFA head replaced after Supreme Court ruling; SEC considering proposal for mandatory climate risk disclosures; House repealed the True Lender Rule

Amy S. Matsuo

Amy S. Matsuo

Principal and National Leader, Regulatory Insights, KPMG US

+1 919-244-0266

Key Highlights

  • The Administration has removed the head of the FHFA and appointed an Acting Director following a Supreme Court decision that the agency was structured unconstitutionally; the Administration has indicated GSE privatization is not a current priority.
  • SEC is considering proposed rules for mandatory company disclosures on climate risk, including a range of specific metrics, such as greenhouse gas emissions, and potential requirements for companies that have made forward-looking climate commitments, or that have significant operations in jurisdictions with national requirements to achieve specific, climate-related targets.
  • The House of Representatives passed a resolution under the Congressional Review Act to repeal the OCC’s “True Lender” rule; the Senate passed a similar resolution in May 2021.
  • IAIS released application papers addressing supervision of the insurance sector, including two consultations covering “insurer culture” and “supervisory colleges” and two final paper covering “supervision of control functions” and “resolution powers and planning”.

Financial services regulatory and policy news


  • Federal banking agencies (FRB, OCC, FDIC):
  • Each released updated sections of the FFIEC BSA/AML Examination Manual (here, here, and here)
  • FRB:
  • Announced that all banks subject to the annual stress tests passed; restrictions on dividend payments and share repurchases will be lifted after June 30
  • Extended the comment period for proposed changes to Regulation II (Debit Card Interchange Fees and Routing)
  • Spoke about building economic resilience in communities; announced the Fed Listens initiative will continue in 2021
  • OCC:
  • Released a statement on the House vote to overturn its "True Lender” Rule
  • FDIC:
  • Will host a virtual conference on financial technology and economic inclusion
  • CFPB:
  • Updated its report on housing insecurity risks

Capital Markets

  • SEC:
  • Outlined new ESG-related disclosures and other rulemakings under consideration
  • Spoke about whether the agency can make ESG rules that are sustainable


  • Issued an advisory to swap dealers clarifying the use of internal models in calculating minimum capital requirements
  • FINRA:
  • Issued a notice reminding members of existing rules governing best execution and payment for order flow



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