STATE GOVERNMENT RELATIONS
2021 IBA Legislative Summary Available
The Indiana General Assembly concluded a historic and unusual session on April 22, one week earlier than the originally set date of April 29. As of late last year, leadership in both the House and Senate were working through the details of how a legislative session would functionally operate during the pandemic. Ultimately, lawmakers were able to conduct business with certain measures in place to reduce the risk of exposure for both lawmakers and the general public.
The IBA Government Relations Team has created a summary of 2021 state legislative activity.
Indiana Small Business Restart Grant Program
The Indiana Small Business Restart Grant Program is now operational with the signature of Gov. Holcomb enacting HEA 1004 into law. The program was created to provide working capital to eligible companies by reimbursing certain expenses incurred related to the pandemic.
The enabling legislation appropriated $60 million to start the fund and tasked the Indiana Economic Development Corporation with management of the program. Eligible Indiana businesses may receive up to $50,000 in assistance.
Holcomb Extends State Public Health Emergency
On Thursday Gov. Eric J. Holcomb renewed the state’s public health emergency order again, citing the fact that the youngest eligible Hoosiers have had only four weeks to get vaccinated and COVID-19 positivity rates have continued to rise through the month of April. The emergency order will now expire on May 31.
FEDERAL GOVERNMENT RELATIONS
IBA Washington Trip - July 18-20
Register now for the IBA Annual Washington Trip, scheduled for July 18-20. Join with fellow Hoosiers as we travel to our nation’s capital to tell the story of Indiana banking to elected officials and regulators. This is an opportunity to discuss the impact legislation has had or may have on your bank, and how currently proposed policies could influence your customers and communities. It is more important now than ever to engage in grassroots advocacy as you share your concerns, your successes and what you believe will allow you to better serve your communities. We look forward to seeing you in Washington!
Biden Plan Includes New Reporting Requirements
President Joe Biden’s $1.8 trillion American Families Plan would require financial institutions to report information on account flows, according to statements from the White House and Department of the Treasury.
The Plan: The proposal to increase federal education, child care and tax benefits for families would be funded by higher taxes on high-income earners and stricter IRS tax enforcement, supported by additional financial institution reporting on investments and business activity.
Reporting: Treasury indicated the plan would require financial institutions to add information about aggregate account outflows and inflows to existing reporting. This would help the IRS target its enforcement activity on the most suspect tax evaders, it added.
Fed Resuming Coin Order Caps
The Federal Reserve reported it will resume coin order caps for dimes and quarters beginning with orders placed today, April 30, for pickup on Monday, May 3.
Demand: After returning to regular coin distribution in January, the Fed indicated depository institution coin orders began to increase in March beyond seasonal patterns. Meanwhile, coin deposits to the Reserve Banks have declined.
Orders: The Fed asked institutions to: order only what they need to meet near-term demand; assess coin inventories; and deposit excess coin with the Fed or exchange or sell to other entities.
Contact: Questions can be directed to local FedCash Services customer support representatives or Federal Reserve account executives, with more information on the Fed’s Contact page.
Task Force: The U.S. Coin Task Force continues working to identify solutions to coin circulation supply chain challenges brought on by the pandemic.
CFPB Delays General QM Rule Effective Date
The Consumer Financial Protection Bureau has issued a final rule extending the mandatory effective date for its general Qualified Mortgage rule from July 1, 2021, to Oct. 1, 2022. With this action, the CFPB also extended the temporary “GSE patch” until the new mandatory compliance date or until Fannie Mae and Freddie Mac exit conservatorship, whichever comes first.
However, the bureau noted that “the practical availability of the temporary GSE QM loan definition may be affected by policies or agreements created by parties other than the bureau, such as the Preferred Stock Purchase Agreements, which include restrictions on GSE purchases that rely on the Temporary GSE QM loan definition after July 1, 2021.” (This statement followed an announcement from Fannie Mae and Freddie Mac earlier this month stating that any loans purchased by the GSEs after July 1, must conform to the requirements outlined in the QM final rule – effectively ending the GSE patch.)
A broad coalition of consumer advocacy and financial and housing trade groups previously opposed an extension, noting that the rule was finalized with broad consensus across industry, civil rights and community groups and made clear and sensible reforms to the QM framework. The groups also cautioned that it could cause market disruption and considerably hamper banks’ compliance efforts.
Study: Consumer Satisfaction With Banks Improves Amid Pandemic
Despite the challenges of the COVID-19 pandemic, retail bank satisfaction improved four points year-over-year to 817 (on a 1,000 point scale), according to J.D. Power’s annual retail banking satisfaction study. The study noted that the rise in satisfaction was driven by increased frequency of communication provided to customers, improved relevance of communications and banks’ efforts to help customers navigate fees and display genuine concern when they encounter problems.
Nearly two-thirds of retail bank customers, 63%, said their banks “completely supported them during the pandemic,” according to the study, specifically by waiving charges, supporting the community, offering additional guidance and providing late payment forgiveness.
SBA Reopens Shuttered Venue Grant Program
The Small Business Administration has reopened the Shuttered Venue Operators Grant application portal after technology issues scuttled its April 8 launch.
Background: The program offers $16 billion in grants for eligible live venues, museums, movie theaters and other such entities that had to close their doors due to the COVID-19 pandemic.
Details: Entities that apply for a Paycheck Protection Program loan after Dec. 27, 2020, may also apply for SVOG grants. PPP loan amounts will be deducted from the grants.
SBA Launches New EIDL Program
The SBA launched a new round of Economic Injury Disaster Loan assistance called Supplemental Targeted Advances. The program will provide $5 billion in additional assistance to 1 million small businesses and nonprofits severely affected by the COVID-19 pandemic.
SBA Plans Restaurant Fund Launch
The SBA released its plans for launching the Restaurant Revitalization Fund, under which the agency will administer $28.6 billion in funds directly to hard-hit small restaurants. The SBA indicated it will begin registrations this Friday, April 30, and open online applications on Monday, May 3.
FHA Issues Waiver on Appraisal Requirements
The Federal Housing Administration has issued a temporary partial waiver to parts of the Single Family Housing Policy Handbook 4000.1 related to appraisal requirements in changing markets. The partial waiver addresses difficulties in changing markets with increasing property values and a shortage of housing supply.
IBA COVID-19 Updates
The IBA has several COVID-19 resources and updates available at our website.