Consumer Financial Protection Bureau (CFPB)
CFPB Defines Financial Firms' Responsibilities During COVID-19 Pandemic
The Consumer Financial Protection Bureau released a document with an outline of the responsibilities of certain financial firms and FAQs during the COVID-19 pandemic. The statement defines credit card providers’ billing error obligations, as well as the obligations of open-end non-home secured creditors. It also encourages financial firms to continue to assist their communities by waiving fees, lowering minimum balance obligations, and changing account terms in a way that benefits customers.
The Office of the Comptroller of the Currency (OCC)
OCC and other Agencies Share Standards in Issuing Sensible Small-Dollar Loans
The Office of the Comptroller of the Currency and other regulatory agencies issued guidance for financial institutions on how to responsibly offer small-dollar loans to their customers to meet the short-term credit needs of those customers during the COVID-19 pandemic or other extraordinary circumstances that may cause temporary cash-flow irregularities.
Securities and Exchange Commission
SEC Amends CAT NMS Plan Improving Transparency and Financial Accountability
The Securities and Exchange Commission voted to amend the national market system plan regulating the consolidation audit trail (“CAT NMS Plan”) that will add more transparency, authority, and financial responsibility to the application of the plan. The amendments entail FINRA and the self-regulatory organizations involved in the CAT NMS Plan publishing and filing a comprehensive implementation plan for CAT and quarterly progress reports.
Federal Deposit Insurance Corporation
FDIC Proposes Rule to Mitigate the Deposit Insurance Assessment Effects of Participation in the PPP, PPPLF, and the MMLF
The Federal Deposit Insurance Corporation approved a notice of proposed rulemaking that would mitigate the deposit insurance assessment effects of participating in the Paycheck Protection Program (PPP) established by the U.S. Small Business Administration and the Paycheck Protection Program Lending Facility (PPPLF) and Money Market Mutual Fund Liquidity Facility (MMLF) established by the Board of Governors of the Federal Reserve System. To provide certainty to insured depository institutions (IDIs) regarding the assessment effects of participating in these programs, the FDIC is proposing an effective date by June 30, 2020, and an application date of April 1, 2020, which would ensure that the changes are applied to assessments starting in the second quarter of 2020.
National Credit Union Administration
NCUA and Other Agencies Issue Policy Statement on Allowances for Credit Losses and Guidance on the Credit Risk Review Systems
The National Credit Union Association and four other federal regulatory agencies approved a policy statement encouraging uniformity in the interpretation and use of the Financial Accounting Standards Board’s credit losses accounting standard regarding the current expected credit losses methodology.