PH FedACTion: Financial Regulatory Updates
Friday, July 19, 2024
Major Developments
Consumer Financial Protection Bureau
CFPB Proposes Interpretive Rule to Ensure Workers Know the Costs and Fees of Paycheck Advance Products
July 18, 2024
The Consumer Financial Protection Bureau proposed an interpretive rule explaining that many paycheck advance products, sometimes marketed as “earned wage” products, could be consumer loans subject to the Truth in Lending Act.
Congress
U.S. House of Representatives
Committee on Financial Services
Bipartisan AI Working Group Release Staff Report
July 18, 2024
U.S. House Committee on Financial Services Chair Patrick McHenry (NC-10) and Ranking Member Maxine Waters (CA-43) released a staff report from the Committee’s bipartisan Working Group on Artificial Intelligence (AI).
Committee on Small Business
Small Business Snapshot – July 2024
July 18, 2024
The U.S. House Committee on Small Business issued the Small Business Snapshot for July 2024.
Federal Agencies
U.S. Department of the Treasury
Statement for the United States on IMF Article IV Consultation
July 18, 2024
The U.S. Department of the Treasury released a statement on behalf of the United States in relation to the IMF Article IV Consultation.
Federal Reserve Board
Consumer Financial Protection Bureau
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
Agencies finalize interagency guidance on reconsiderations of value for residential real estate valuations
July 18, 2024
The Federal Reserve Board, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency issued final guidance addressing reconsiderations of value (ROVs) for residential real estate transactions.
Federal Reserve Board
Working Paper: Balance-Sheet Netting in U.S. Treasury Markets and Central Clearing
July 18, 2024
The Federal Reserve Board published a working paper entitled, “Balance-Sheet Netting in U.S. Treasury Markets and Central Clearing.”
Federal Reserve Bank of New York
New York Fed Report Shows Areas in New York City and the Rural Northeast Face Broadband Costs Nearly as High as Utility Bills
July 18, 2024
The Federal Reserve Bank of New York released a report, “Digital Equity in the U.S. Northeast, Puerto Rico, and the U.S. Virgin Islands,” mapping broadband cost, speed, and availability for those areas between 2020 and 2023.
Statement Requesting Public Comment on Proposed Modifications to the Secured Overnight Financing Rate Methodology
July 18, 2024
The Federal Reserve Bank of New York is proposing two modifications to the calculation methodology of the Secured Overnight Financing Rate (SOFR). The New York Fed proposes implementing the changes by Q1 2025.
Report: The Countercyclical Benefits of Regulatory Costs
July 18, 2024
The Federal Reserve Bank of New York published a staff report entitled, “The Countercyclical Benefits of Regulatory Costs.”
Data: The Labor Market for Recent College Graduates – Q2 2024
July 18, 2024
The Federal Reserve Bank of New York released the Q2 2024 Labor Market for Recent College Graduates data.
FINRA
FINRA Publishes 2024 Industry Snapshot
July 18, 2024
FINRA published today the 2024 Industry Snapshot, the annual statistical report on registered representatives, brokerage firms and market activity that FINRA oversees.
National Credit Union Administration
NCUA Board Approves Proposed Rules on Incentive-based Compensation, Succession Planning
July 18, 2024
The National Credit Union Administration Board held its fifth open meeting of 2024 and approved a proposed rule on incentive-based compensation and a revised proposed rule on succession planning. The NCUA Board also approved maintaining the current interest rate ceiling for federal credit unions at 18 percent.
Fannie Mae
Home Prices Advance Another 3 Percent in Second Quarter, Show Signs of Slowing
July 18, 2024
Single-family home prices increased 6.9 percent from Q2 2023 to Q2 2024, down from the previous quarter's upwardly revised annual growth rate of 7.3 percent, according to Fannie Mae's (FNMA/OTCQB) latest Home Price Index (FNM-HPI) reading, a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the United States, excluding condos.
Bank Policy Institute
Blog: Reassessing the OFR’s Commercial Real Estate Concerns: A Closer Look at Bank Resilience and Risk Factors
July 18, 2024
The Bank Policy Institute published a blog post entitled, “Reassessing the OFR’s Commercial Real Estate Concerns: A Closer Look at Bank Resilience and Risk Factors.”
International
Bank of England
Consultation Paper: The Bank of England’s approach to determining commercially reasonable payments for contracts subject to a statutory tear up in CCP resolution
July 18, 2024
The Bank of England published a consultation paper entitled, “The Bank of England’s approach to determining commercially reasonable payments for contracts subject to a statutory tear up in CCP resolution.”
Consultation Paper: The Bank of England’s power to direct a central counterparty to address impediments to resolvability
July 18, 2024
The Bank of England published a consultation paper entitled, “The Bank of England’s power to direct a central counterparty to address impediments to resolvability.”
CHAPS payments issue update
July 18, 2024
The Bank of England announced that a global payments issue that was affecting the Bank's CHAPS service and delaying some high value and time-sensitive payments is now resolved.
Speech: Late Call
July 18, 2024
Bank of England Executive Director Nathaneal Benjamin gave a speech entitled, “Late Call,” at Linklaters, hosted by the International Swaps and Derivatives Association.
Financial Conduct Authority
FCA calls on firms to improve treatment of politically exposed persons (PEPs)
July 18, 2024
The Financial Conduct Authority has told financial firms – including banks, payment firms and lenders – to do more to ensure parliamentarians, senior public servants and their families are not treated unfairly.
Administration Changes
Vacancies
Office of the Comptroller of the Currency
- Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)
Appointments/Confirmation Hearings
U.S. Department of the Treasury – Janet Yellen (effective January 26, 2021)
Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)
- Vice Chair Phillip N Jefferson (sworn in September 13, 2023)
- Vice Chair for Supervision Michael Barr (sworn in July 19, 2022)
- Governor Michelle W. Bowman (sworn in November 26, 2018)
- Governor Christopher J. Waller (sworn in December 18, 2020)
- Governor Lisa D. Cook (sworn in September 13, 2022)
- Governor Adriana D. Kugler (sworn in September 13, 2023)
Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)
Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)
Federal Deposit Insurance Corporation – Martin Gruenberg (effective January 5, 2023)
- Vice Chairman Travis Hill (sworn in January 5, 2023)
- Director Jonathan McKernan (sworn in January 5, 2023)
- Director Michael Hsu (Acting Comptroller of the Currency)
- Director Rohit Chopra (Director of Consumer Financial Protection Bureau)
Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)
Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)
Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)
Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)
National Credit Union Administration – Todd M. Harper (effective January 20, 2021)
Small Business Administration – Isabella Casillas Guzman (effective March 16, 2021)
U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021) (resigned March 11, 2024, effective March 22, 2024)
Federal Housing Finance Agency – Sandra L. Thompson (effective June 22, 2022)
U.S. Department of Education – Dr. Miguel Cardona (effective March 2, 2021)
Financial Crimes Enforcement Network – Andrea Gacki (effective July 13, 2023)
PH Client Alerts
Click here to read more from our Coronavirus series.
Legislation/Legislative Updates
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.
Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.
Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.
