Federal Reserve Board publishes frequently asked questions (FAQs) comprising existing legal interpretations related to a number of the Board’s longstanding regulations

Federal Reserve Board publishes frequently asked questions (FAQs) comprising existing legal interpretations related to a number of the Board’s longstanding regulations

Federal Reserve Board publishes frequently asked questions (FAQs) comprising existing legal interpretations related to a number of the Board’s longstanding regulations

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210331b.htm

Federal Reserve Board adopts final rule outlining and confirming the use of supervisory guidance for regulated institutions

Federal Reserve Board adopts final rule outlining and confirming the use of supervisory guidance for regulated institutions

Federal Reserve Board adopts final rule outlining and confirming the use of supervisory guidance for regulated institutions

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210331a.htm

Acting Comptroller of the Currency Statement Regarding Climate Risk at the Financial Stability Oversight Council

Acting Comptroller of the Currency Blake Paulson made the following statement today at the meeting of the Financial Stability Oversight Council (FSOC) with respect to climate risks.

Acting Comptroller of the Currency Blake Paulson made the following statement today at the meeting of the Financial Stability Oversight Council (FSOC) with respect to climate risks.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-40.html

CBA recognizes role that banks played in helping consumers, business get through pandemic

On the one-year anniversary of the passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the head of the Consumer Bankers Association is acknowledging the role the industry has played during this period of financial hardship for consumers and small businesses. “Over the past year, banks across the country have moved heaven […]

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On the one-year anniversary of the passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the head of the Consumer Bankers Association is acknowledging the role the industry has played during this period of financial hardship for consumers and small businesses.

“Over the past year, banks across the country have moved heaven and earth to support the American people. When COVID-19 first hit our communities, the nation’s banks immediately mobilized assistance programs and were eager to implement pending federal programs included in the CARES Act. Once the bill was signed into law, banks stepped up to serve as a source of strength and took on the herculean task of distributing hundreds of billions of dollars of vital assistance to small businesses and consumers through the Paycheck Protection Program and the delivery of Economic Impact Payments,” CBA President and CEO Richard Hunt said.

Hunt pointed out that the banking industry, working with the Small Business Administration, made more than two decades’ worth of SBA loans in a matter of months.

“Some banks dedicated more than one-third of their entire workforce with nearly every banker working around the clock to process applications and deliver much-needed assistance – all while overcoming crippling technical issues and unclear, missing and ever-evolving guidance throughout the program,” Hunt said.

Banks also served as advocates for small businesses, Hunt said, pushing to streamline the overly complicated application process for PPP loan forgiveness. This effort led Congress to simplify the forgiveness process for loans less than $150,000. That amounted to the equivalent of $7 billion of additional small business relief.

“Despite many of the challenges tied to the CARES Act, I believe this past year will be remembered as one of the finest chapters written in the book of American banking,” Hunt said. “CBA is proud of the industry’s unwavering commitment to championing these vital programs and overcoming hurdles along the way. Banks will continue working to get Americans back on their feet and the economy back on track as we inch closer to reaching the other side of this pandemic.”

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Read more / Original news source: https://financialregnews.com/cba-recognizes-role-that-banks-played-in-helping-consumers-business-get-through-pandemic/

CDC director calls for temporary halt on evictions to slow COVID-19 spread

The head of the Centers for Disease Control and Prevention (CDC) has called for a temporary halt in the eviction of tenants to slow the spread of COVID-19. © Shutterstock CDC Director Dr. Rochelle Walensky determined this week that the evictions of tenants could be detrimental to public health control measures. The move earned mixed […]

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The head of the Centers for Disease Control and Prevention (CDC) has called for a temporary halt in the eviction of tenants to slow the spread of COVID-19.

© Shutterstock

CDC Director Dr. Rochelle Walensky determined this week that the evictions of tenants could be detrimental to public health control measures. The move earned mixed reviews in the Senate. Sen. Sherrod Brown (D-OH), chair of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, praised the decision.

“No one should be left without a home, especially during a pandemic. Director Walensky’s extension of the CDC’s eviction moratorium, which has provided a lifeline to millions of renters who might face eviction and increased risk of COVID-19, was absolutely essential,” Brown said. “Now we need to make sure that renters are protected by the moratorium as state and local agencies distribute nearly $47 billion in rental and utility assistance provided in the American Rescue Plan and December assistance package. I encourage the Biden-Harris Administration and CDC to use all the tools at their disposal to protect renters and public health and urge states and localities to get this assistance to renters quickly.”

However, the leading Republicans on the Banking Committee took issue with the action by the CDC Director.

“As I said when the Trump administration created it, an eviction moratorium lacks both a legal basis and an economic justification. Moreover, the entire purpose for replacing lost income with direct rental assistance, thousands of dollars in stimulus checks, and unemployment compensation that pays more than work itself, was so people could pay their bills,” U.S. Senate Banking Committee Ranking Member Pat Toomey (R-PA) said.

Toomey said it could cause unintended consequences, including higher rents and fewer low- to moderate-income housing options overall.

“Landlords must now account for the possibility that moratoriums like this can occur at any time in the future. This could lead to landlords raising rent costs to help offset future losses and to some abandoning investing in residential housing completely. Instead of extending the CDC moratorium, the Biden administration should be focused on making the rental assistance program more workable,” Toomey added.

In related news, Dave Uejio, the acting director of the Consumer Financial Protection Bureau, and Rebecca Slaughter, the acting chair of the Federal Trade Commission, are working to stop illegal evictions.

“Staff at both agencies will be monitoring and investigating eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law. Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of their legal rights under such moratoria may violate prohibitions against deceptive and unfair practices, including under the Fair Debt Collection Practices Act and the Federal Trade Commission Act. We will not tolerate illegal practices that displace families and expose them—and by extension all of us—to grave health risks,” Uejio and Slaughter said.

The post CDC director calls for temporary halt on evictions to slow COVID-19 spread appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/cdc-director-calls-for-temporary-halt-on-evictions-to-slow-covid-19-spread/

OCC report examines mortgage performance decline

A recently released Office of the Comptroller of the Currency (OCC) report outlined during the fourth quarter of 2020 performance of first-lien mortgages in the federal banking system declined.© Shutterstock According to the OCC Mortgage Metrics Report, Fourth Quarter 2020 indicated 93.3 percent of mortgages included in the analysis were current and performing at the […]

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A recently released Office of the Comptroller of the Currency (OCC) report outlined during the fourth quarter of 2020 performance of first-lien mortgages in the federal banking system declined.

© Shutterstock

According to the OCC Mortgage Metrics Report, Fourth Quarter 2020 indicated 93.3 percent of mortgages included in the analysis were current and performing at the end of the quarter compared to 96.5 percent the prior year.

Authorities have attributed the decline to the COVID-19 pandemic and actions taken by banks to comply with the CARES Act.

Meanwhile, the report showed seriously delinquent mortgages, which officials categorized as mortgages 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due was 5.2 percent in the fourth quarter of 2020, compared to 5.8 percent in the previous quarter and 1.5 percent one year ago.

Additionally, according to the analysis, servicers initiated 789 new foreclosures during the fourth quarter of 2020­, which represents a 113.8 percent increase from the previous quarter and a 96.5 percent decrease from a year ago while events associated with the COVID-19 pandemic, including foreclosure moratoriums, have significantly impacted the metrics.

First-lien mortgages included in the report make up 25 percent of all of the nation’s residential mortgage debt or approximately 13.8 million loans totaling $2.74 trillion in principal balances, per the OCC.

The post OCC report examines mortgage performance decline appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/occ-report-examines-mortgage-performance-decline/

2020 HMDA Data on Mortgage Lending Now Available

Today, the Home Mortgage Disclosure Act (HMDA) Modified Loan Application Register (LAR) data for 2020 were published on the Federal Financial Institutions Examination Council’s HMDA Platform for approximately 4,400 HMDA filers. The published data conta…

Today, the Home Mortgage Disclosure Act (HMDA) Modified Loan Application Register (LAR) data for 2020 were published on the Federal Financial Institutions Examination Council’s HMDA Platform for approximately 4,400 HMDA filers. The published data contain loan-level information filed by financial institutions, modified to protect privacy.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/2020-hmda-data-on-mortgage-lending-now-available/

CFPB Rescinds Series Of Policy Statements To Ensure Industry Complies With Consumer Protection Laws

The Consumer Financial Protection Bureau (CFPB) announced today it is rescinding seven policy statements issued last year that provided temporary flexibilities to financial institutions in various consumer financial markets, including the mortgage, cre…

The Consumer Financial Protection Bureau (CFPB) announced today it is rescinding seven policy statements issued last year that provided temporary flexibilities to financial institutions in various consumer financial markets, including the mortgage, credit reporting, credit and prepaid card markets. The seven rescissions, effective as of April 1, 2021, provide guidance as to how financial institutions should now comply with various consumer financial laws and regulations.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-rescinds-series-of-policy-statements-to-ensure-industry-complies-with-consumer-protection-laws/

Federal Reserve Board issues enforcement action with institution-affiliated parties of Farmers State Bank

Federal Reserve Board issues enforcement action with institution-affiliated parties of Farmers State Bank

Federal Reserve Board issues enforcement action with institution-affiliated parties of Farmers State Bank

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20210330a.htm

Agencies seek wide range of views on financial institutions’ use of artificial intelligence

Agencies seek wide range of views on financial institutions’ use of artificial intelligence

Agencies seek wide range of views on financial institutions' use of artificial intelligence

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210329a.htm