FEDERAL GOVERNMENT RELATIONS
Congress Approves COVID-19 Relief Bill, Reauthorizes PPP
House and Senate lawmakers late Monday passed a $900 billion bipartisan coronavirus relief package. Both the Independent Community Bankers of America and American Bankers Association have prepared analyses for bankers of the provisions included in the 5,500-page bill that affect the banking industry.
The bill includes several industry-backed provisions, including:
- $284 billion in new funds for the Paycheck Protection Program, including a second draw option for prior PPP borrowers and $15 billion set aside specifically for first and second draws issued by community financial institutions, including community development financial institutions and minority depository institutions;
- $12 billion in targeted emergency investments to help low-income and minority communities, including $9 billion to be used by the Department of the Treasury to create an Emergency Capital Investment Program to make direct and indirect capital investments in low- and moderate income financial institutions;
- A hold-harmless safe harbor for PPP lenders from enforcement and penalties to include all certifications made by borrowers or applicants connected to initial or second-draw PPP loans;
- A simplified PPP forgiveness process allowing PPP loans of $150,000 or less to be forgiven after the borrower completes a one-page attestation;
- Repeal of a CARES Act provision that required PPP borrowers to deduct the amount of their EIDL advances from the PPP forgiveness amount;
- Enhancements of existing Small Business Administration loan programs, including the 7(a), 504 and microloan programs;
- A new round of $600-per-person economic impact payments for eligible recipients (not subject to garnishment);
- An extension of enhanced unemployment insurance;
- An extension until Jan. 1, 2022, of the troubled debt restructuring provisions that were included in the CARES Act;
- A delay of CECL implementation until Jan. 1, 2022.
CFPB Updates HMDA Asset-Size Exemption Thresholds
The Consumer Financial Protection Bureau on Tuesday announced the annual adjustment to the asset-size exemption thresholds for banks reporting data under the Home Mortgage Disclosure Act (Regulation C). The final rule increased the threshold so banks with assets of $48 million or less on Dec. 31 are exempt from collecting data in 2021. The change is based on 1.3% increase in the consumer price index for a 12-month period ending in November. The adjustments take effect on Jan. 1.
Meanwhile, the CFPB adjusted the asset-size exemption threshold for financial institutions required to establish an escrow account for higher-priced mortgages under the Truth in Lending Act (Regulation Z), which will rise to $2.23 billion effective Jan. 1.
FHA Extends Foreclosure, Eviction Moratoriums to Feb. 28
The Federal Housing Administration announced Monday that it would extend through Feb. 28, 2021, a moratorium on foreclosures and evictions for single-family mortgages backed by Fannie Mae or Freddie Mac. The current moratorium was scheduled to expire on Dec. 31.
IBA COVID-19 Updates
The IBA has several COVID-19 resources and updates available at our website.