#2020-36, October 23, 2020

Fed Hosting Webinar on FedNow Pilot Program for Interested Banks

The Federal Reserve Bank announced a pilot program to support the development of its faster payments service called FedNow. The Pilot seeks commitment from community members, financial institutions, service providers, and payment processors who partner with financial institutions. The participant's roles and responsibilities will vary based on the desired level of participation.

On October 29, at 11 a.m. ET, FedNow leadership will host a 60-minute webinar to provide more detailed information on the program phases, participant responsibilities, and expectations. For consideration, those interested in participating in the FedNow Pilot Program must submit the expression of interest form by November 16.

To view the full notice and register for the webinar, click here.

FDIC Rule Provides Relief for Banks with Pandemic-Related Balance Sheet Growth

Earlier this week, the Federal Deposit Insurance Corporation (FDIC) issued a temporary rule to assist banks experiencing rapid, and potentially short-term, asset and deposit growth due to their participation in the Paycheck Protection Program and other pandemic relief measures.  The interim final rule provides relief from certain audit and reporting requirements under Part 363 of the agency’s regulations.

Specifically, the rule allows banks to determine the applicability of Part 363 for fiscal years ending in 2021 with their consolidated total assets as of Dec. 31, 2019, or the beginning of fiscal years ending in 2021, whichever is less.

To read more, click here.

CFPB Finalizes Extension to GSE QM Patch

The Consumer Financial Protection Bureau (CFPB) recently issued a final rule extending the so-called “GSE patch.”   The patch grants Qualified Mortgage status to mortgages eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac until further QM changes are finalized or the GSEs are no longer in conservatorship.

As we have reported previously, the Bureau has issued a proposed rule establishing a new category of “seasoned” QMs.  The agency is also continuing to develop final rules on the general QM loan definition.

To read more, click here.

FHFA Extends Loan Processing Flexibilities for GSEs through November

To continue providing support to mortgage borrowers during the pandemic, the Federal Housing Finance Agency (FHFA) announced this week that it is extending several loan processing flexibilities for the GSEs.  Specifically, these flexibilities include allowing alternative appraisals on purchase and rate term refinance loans, alternative methods for documenting income and verifying employment before loan closing and expanding the use of power of attorney and remote online notarizations to assist with loan closings.

To read more, click here.

CFPB Issues ANPR Seeking Feedback on Data Access Regulations

The CFPB this week released an advance notice of proposed rulemaking asking for feedback and recommendations on consumer-authorized access to financial records.  Specifically, the ANPR asks how the CFPB “might effectively and efficiently implement the financial record access rights described in Section 1033 [of the Dodd-Frank Act], recognizing that various market participants have helped authorized data access become more secure, effective, and subject to consumer control.”

In addition, the Bureau is asking for public comments on the possible scope of data that might be covered by a Section 1033 rulemaking and on whether and how issues of regulatory uncertainty may be affecting consumer access to financial data. Comments on the ANPR are due 90 days after it is published in the Federal Register.

To read more, click here.