On March 31, the Board of Governors of the Federal Reserve System (Federal Reserve Board) published six sets of responses to Frequently Asked Questions (FAQs) consisting of existing legal interpretations regarding Regulations H, K, L, O, W and Y. Additional FAQs will be released periodically and posted to the agency’s website as part of an ongoing effort to increase transparency and enhance accessibility to Federal Reserve Board legal interpretations. Release. FAQs.
On January 28, the Office of the Comptroller of the Currency (OCC) announced that it would halt publication of its “fair access” rule, which would have prevented national banks from denying services to any individual customer unless justified by that customer’s documented failure to meet quantitative, impartial risk-based standards established by the bank. The rule, which was finalized by the OCC on January 14 and would have gone into effect on April 1, will be set aside for review by the next confirmed Comptroller of the Currency under the current administration. Release.
On December 8, the CFTC approved a number of final rules, including (i) amendments requiring designated contract markets (DCMs) to implement certain risk controls relating to market disruptions caused by electronic trading, (ii) amendments to eliminate certain operational requirements applicable to swap execution facilities (SEFs), and (iii) amendments to the margin requirements for uncleared swaps for swap dealers and major swap participants. DCM Risk Controls Release. SEF Regulations Release. Margin Requirements Release.
On December 3, the SEC adopted Rule 2a-5 establishing an updated regulatory framework for fund valuation practices. The rule requires fund boards of directors (or their designee) to perform certain functions in order to determine in good faith the fair value of a fund’s investments, as required under the Investment Company Act of 1940, including periodically assessing and managing material risks associated with fair value determinations, selecting, applying and testing fair value methodologies, and overseeing and evaluating any pricing services used. Release. Final Rule.
On October 8, the Small Business Administration (SBA), in consultation with the Treasury Department, released an Interim Final Rule providing for a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. The new rule is intended to ease burdens on small borrowers and PPP lenders in submitting and processing loan forgiveness applications. Treasury Press Release. Interim Final Rule.
On October 9, the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Federal Reserve), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA), with approval from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), issued a revised order exempting premium finance loans (loans made to facilitate a borrower’s purchase of property and casualty insurance policies) from the customer identification program requirements applicable to a lender’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program. Order.
On August 18, the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) to create a new category of qualified mortgage (QM) loans exempt from Regulation Z’s ability-to-repay requirements. The new “Seasoned QM” category would include certain fixed rate, first lien loans that the creditor has held in portfolio for a seasoning period of 36 months and that meet certain performance requirements at the end of such period. The proposal would also permit loans in temporary forbearance as a result of disaster or pandemic-related emergencies to qualify for Seasoned QM status if certain conditions are met. Comments on the proposal will be due 30 days after publication in the Federal Register. Release. NPRM.
On August 14, the Commodity Futures Trading Commission (CFTC) approved two proposed amendments to margin requirements for Swap Dealers and Major Swap Participants (the “CFTC Margin Rule”). The first proposal would, among other changes, revise the method for determining whether an entity comes within the scope of the initial margin requirements under the CFTC Margin Rule and the timing for compliance. The second proposal would permit the application of separate minimum transfer amounts for initial and variation margin, as well as a minimum transfer amount of up to $50,000 for separately managed accounts. Each proposal will be subject to a 30-day comment period following publication in the Federal Register. Release.
On August 19, Moody’s published its research report titled Housing – US: Urban Markets Will Recover After Pandemic as Americans’ Housing Decisions Evolve. Report.
On August 14, Fitch published its updated criteria for rating Trade Receivables Securitizations. Criteria.
On August 14, Moody’s published its updated methodology for rating Collateralized Loan Obligations. Methodology.
On August 7, KBRA published its Structured Finance surveillance report titled CMBS: Bank 2019-BNK19. Report.
On August 7, KBRA published its research report titled RMBS Credit Indices: July 2020. Report.
On August 4, KBRA published its Public Finance research report titled Coronavirus (COVID-19): New Jersey and Other States Consider Deficit Borrowing. Report.
On August 4, Moody’s published its methodology for rating Market Value Collateralized Loan Obligations. Methodology.
On June 23, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule that amends Regulation X by temporarily permitting mortgage servicers to offer certain loss mitigation options to borrowers impacted by the COVID-19 pandemic without first obtaining a completed loss mitigation application from the borrower. Release. Interim Final Rule.
