Joanna Hernandez

Senior Associate

Los Angeles

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Joanna Hernandez, an associate in Orrick's Los Angeles office, is a member of Orrick's Structured Finance Group.

Joanna’s practice focuses on a variety of asset-backed classes, including credit and charge card receivables, and consumer loans. She regularly works with fintech companies assisting these clients with their financing needs.

Among her experience, Joanna represents issuers, sponsors and underwriters in connection with public offerings and private placements of asset-backed securities. She also has experience with transactions relating to the sale and financing of residential mortgage loans, including residential mortgage-backed securitizations, repurchase facilities and servicer advance facilities.

Prior to joining the firm, Joanna worked as an associate at a municipal law firm and represented public agencies in litigation and public finance matters.

Posts by: Joanna Hernandez

Federal Reserve Board Announces Annual Indexing of Reserve Requirement Exemption Amount and of Low Reserve Tranche For 2019


On October 25, the Federal Reserve Board announced the annual indexing of the reserve requirement exemption amount and the low reserve tranche, which two amounts are used in determining reserve requirements of depository institutions. The annual adjustment is based on growth in total reservable liabilities and net transaction accounts at all depository institutions between June 30, 2017 and June 30, 2018. Release.

Public Statement Regarding Payday Rule Reconsideration and Delay of Compliance Date


On October 26, the Consumer Financial Protection Bureau (the “Bureau“) issued a statement announcing that it expects to issue proposed rules in January 2019 that will reconsider the Bureau’s rule regarding Payday, Vehicle Title, and Certain High-Cost Installment Loans and address the rule’s compliance date. The Bureau is currently planning to revisit only the ability-to-repay provisions and not the payments provisions. Release.

SEC Proposed Disclosure Improvements for Variable Annuities and Variable Life Insurance Contracts


On October 30, the Securities Exchange Commission (“SEC“) announced it voted to propose rule changes intended to improve disclosure for investors about variable annuities and variable life insurance contracts. Such improvements would focus on helping investors better understand a contract’s terms, benefits and risks. The proposed rule would permit the satisfaction of prospectus delivery obligations under the Securities Act of 1933 for a variable annuity or variable life insurance contract by sending or giving a summary prospectus to investors and making the statutory prospectus available online. Release.

Agencies Propose Rule to Update Calculation of Derivative Contract Exposure Amounts Under Regulatory Capital Rules


On October 30, the Federal Reserve Board, the Federal Depository Insurance Corporation and the Office of the Comptroller of the Currency (collectively, the “Agencies“) proposed changes to their standards for how large federal institutions measure counterparty credit risk posed by derivatives contracts under the Agencies’ regulatory capital rules. The proposal would provide the “standardized approach for measuring counterparty credit risk” as an alternative approach to the Agencies’ current exposure methodology for calculating derivative exposure. Release.

SEC Issues Statement on Certain Provisions of Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants


On October 31, the Securities Exchange Commission (“SEC“) issued a statement setting forth its position, for a limited time, that certain actions with respect to specific provisions of its Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants will not provide a basis for SEC enforcement action. The statement also addresses the SEC’s position on the ability of parties to security-based swaps to rely on written representations previously provided in relation to swaps. Release.

CFTC’s Office of the Chief Economist Issues Report on Initial Margin Phase 5


On October 31, the Office of the Chief Economist of the Commodity Futures Trading Commission (“CFTC“) issued a report about uncleared margin rules, which goes into effect on September 1, 2020. On such date, swap market participants with between $8 and $750 billion of swaps notional amounts must begin to post and collect initial margin on all trades that have at least one swap-dealer counterparty. Release.

Rating Agency Developments


On September 4, 2018, Moody’s updated its methodology for the mining industry, replacing the last version published on April 3, 2018. No rating changes are expected to result from this update. Release.

As of August 28, 2018, S&P Global Ratings is requesting comments on proposed revisions to its methodology and assumptions for rating certain insurance-linked securitizations (“ILS“). The rating on an ILS addresses the likelihood of timely payment of interest and principal when due based on the original promise, even if the terms permit a reduction in principal or interest. The proposed criteria covers specific methodologies applicable to natural peril, mortality, longevity, medical benefit ratio, and auto bonds. Release.