#2021-14, April 30, 2021

House Passes MBA-Supported SAFE Banking Act

Last week, on a bipartisan vote of 321 to 101, the House passed the SAFE Banking Act of 2021, MBA-supported legislation that provides a safe harbor for financial institutions to serve state-legalized cannabis businesses.  All nine members of the Massachusetts House delegation supported the bill.

The Association wrote to the Massachusetts House delegation thanking them for their support of this important bill before the vote.  In addition, we joined with 50 other state banking trade associations on a letter to Congress urging passage of the SAFE Banking Act.  The legislation now moves to the Senate for consideration. 

To read MBA’s letter to the Massachusetts Delegation, click here.  To read the joint state association letter, click here.

CFPB Delays Effective Date of QM Rule

Earlier this week, Consumer Financial Protection Bureau released a final rule that extends the mandatory effective date for its general Qualified Mortgage (QM) rule from July 1, 2021 to October 1, 2022.  The rule also extends the temporary “GSE patch” until the new mandatory compliance date or until Fannie Mae and Freddie Mac exit conservatorship, whichever comes first.

The Bureau did state 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.” As we reported previously, Fannie Mae and Freddie Mac issued statements that any loans purchased by the GSEs after July 1, must conform to the requirements outlined in the QM final rule, which effectively ends the GSE patch.

To read more, click here.

FDIC Hosting Virtual Innovation Office Hours

The Federal Deposit Insurance Corporation (FDIC) announced this week that the agency is hosting virtual innovation “office hours” during the week of June 14.  The sessions are one-on-one, hour-long meetings with representatives from the FDIC's technology lab to discuss current and evolving technological innovations in the business of banking.  The agency also said it is particularly interested in attendees’ input and views on artificial intelligence and machine learning.

Banks should request an office hours session by May 24 and provide information on the topics they are interested in discussing.  To request a time, please email innovation@fdic.gov.  To read more, click here.