On March 19, the Alexander County Housing Authority awarded a demolition contract to RCRA Inc. to raze 278 housing units in Cairo. These housing developments experienced years of deferred maintenance such that they are unsafe for residents. The demolition will be completed by September 2019 and the land will be restored to green space. Press Release.
On February 6, the Second Circuit affirmed a trial court order dismissing repurchase and indemnification claims brought by the Federal Housing Finance Agency (“FHFA“), acting on behalf of U.S. Bank as Trustee, against GreenPoint Mortgage Funding Inc., predicated on allegations that mortgage loans sold by GreenPoint breached representations and warranties in the relevant loan purchase agreements. READ MORE
On January 11, the FDIC issued a release encouraging institutions to modify terms on existing loans, including mortgages, student loans, car loans, business loans and credit cards, due to the federal government shutdown. Release.
On July 30, 2018, the Financial Industry Regulatory Authority (“FINRA“) published a Special Notice, in response to requests from the public, “seeking comments on how FINRA can support fintech development consistent with [its] mission.” In addition, FINRA requested “specific comment on certain fintech areas, including the provision of data aggregation services, supervisory processes concerning the use of artificial intelligence, and the development of a taxonomy-based machine-readable rulebook.” READ MORE
A paper was jointly published by AFME and ISDA on July 30, 2018 which considered the potential contractual continuity issues which may influence OTC derivative contracts following Brexit.
As has been widely discussed, Brexit will bring an end to the single market passport. The passport currently allows regulated activities to be carried out by the UK in EU countries without additional local licenses. This however will no longer be in place following Brexit. Given that a number of contracts will have been entered into prior to Brexit and will continue thereafter, there is a risk that entities may be carrying out regulated activities in other jurisdictions without having the relevant local licensing requirements in place following Brexit.
The report, the full version of which is available here, looks at possible solutions both for UK entities, as well as regulators, in order to minimize disruption following Brexit.
ISDA has launched a market-wide consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (“IBORs“). The consultation sets out options for adjustments that would apply to the fallback rate in the event an IBOR is permanently discontinued.
The ISDA consultation paper is here.
“The consultation sets out four options to account for the move from a term rate to an overnight rate: a spot overnight rate; a convexity adjusted overnight rate; a compounded setting in arrears rate; and a compound setting in advance rate. Three options are also proposed to calculate a spread adjustment: a forward approach; a historical mean/median approach; and a spot-spread approach. In each case, the spread adjustment will be fixed at the point the fallback is triggered.”
Highlights:
“I hope it is already clear that the discontinuation of LIBOR should not be considered a remote probability ‘black swan’ event. Firms should treat it is as something that will happen and which they must be prepared for. Ensuring that the transition from LIBOR to alternative interest rate benchmarks is orderly will contribute to financial stability. Misplaced confidence in LIBOR’s survival will do the opposite, by discouraging transition.
There is some good news to report on the important steps taken towards transition. But the pace of that transition is not yet fast enough. There is much further to go.” Release.
The European Insurance and Occupational Pensions Authority (“EIOPA“) has published a press release on July 6, 2018 announcing the launch of an EU wide review on the use of Big Data. The focus of the review is on the motor and health insurance markets.
The review is intended to gather empirical evidence on the use of Big Data by insurance undertakings and intermediaries along the whole insurance value chain (including pricing and underwriting, in product development, in claims management, as well as in sales and marketing).
The review will analyze the potential benefits and risks for both industry and consumers to determine what (if any) supervisory and regulatory actions are required. It will assess new business models and data quality issues arising from Big Data, including implications for consumers.
EIOPA will conduct the review in co-operation with national competent authorities (“NCAs“) with a view to covering at least 60% of the motor and health insurance markets in each member state. The data is intended to be collected during July and August 2018. The following quantitative and qualitative questionnaires have been sent to NCAs, consumer associations and representative sample of insurance undertakings:
EIOPA intends to publish the review’s key findings in the first quarter of 2019.
The review follows the cross-sectoral review of the use of Big Data by financial institutions published by the Joint Committee of the European Supervisory Authorities (“ESAs“) in March 2018.
On May 21, 2018, the President signed into law a bipartisan Congressional resolution disproving a rule in the form of guidance issued by the Bureau of Consumer Financial Protection about indirect lender compliance with the Equal Credit Opportunity Act.
On April 25, 2018 Moody’s published a rating methodology for Generic Project Finance. Release.
On April 24, 2018 S&P published a table of contents for S&P’s Global Ratings Structured Finance Criteria. Release.
On April 23, 2018 Moody’s published a report on The Performance of Moody’s Structured Finance Ratings – 2018Q1. Release.
On April 23, 2018 DBRS published a rating methodology for Canadian Covered Bonds. Release.
On April 20, 2018 DBRS published a rating methodology for Operational Risk Assessments for Canadian Structured Finance. Release.
On April 20, 2018 Fitch published its rating criteria for U.S. RMBS Seasoned, Re-Performing and Non-Performing Loans. Release.
On April 19, 2018 DBRS published a rating methodology for Canadian Public Hospitals. Release.
