#2021-24, July 30, 2021

CDC Recommends Masks in Public Indoor Settings in High Transmission Areas; Massachusetts Updates Mask Guidance

This week, the Centers for Disease Control and Prevention (CDC) updated its guidance and is now recommending that fully vaccinated people wear a mask in “public indoor settings in areas of substantial or high transmission.”  While the guidance does not specifically define “public indoor settings,” it may include spaces such as branch lobbies or other areas in banks where customers may gather.  The guidance was updated as a result of the high transmission rates of the COVID-19 Delta variant. 

On Friday afternoon, Governor Baker also issued updated mask guidance that recommends that vaccinated people who have weakened immune systems, who are at an increased risk of severe COVID-19 because of age or health conditions, or who live with anyone who is unvaccinated or at increased risk, wear a mask or face covering when indoors and not in their own homes.  This includes parents with children under the age of 12, since a vaccine is not yet approved for that age group.  In addition, the state guidance “strongly recommend[s] that all students in kindergarten through grade 6 wear masks when indoors, except students who cannot do so due to medical conditions or behavioral needs" and that "schools allow vaccinated students to remain unmasked."

To read the updated CDC guidance, click here.  To read the new Massachusetts guidance, click here.

House Financial Services Committee Approves Rep. Auchincloss Bill to Study De Novo Bank Roadblocks

This week, the House Financial Services Committee approved a bill (H.R. 4590) authored by Rep. Jake Auchincloss (D-MA) that requires the banking regulators to conduct a study about the challenges faced by proposed depository institutions seeking de novo bank charters. 

In a letter to the Committee members from our delegation, the Association strongly supported Rep. Auchincloss’s legislation.  The letter notes that “requiring the federal banking regulators to conduct a study about the challenges faced by those seeking bank charters, including proposed minority depository institutions, H.R. 4590 will provide analysis and a strategic plan needed to help groups apply for de novo depository institution charter.”

The bill now moves to the full House for consideration.

To read MBA’s letter, click here.

SBA Issues Direct PPP Loan Forgiveness Guidance

The Small Business Administration (SBA) recently announced that it will begin accepting Paycheck Protection Program (PPP) loan forgiveness applications directly from borrowers for loans of $150,000 or less.  As part of this effort, the agency issued guidance to implement the new direct borrower forgiveness process, which is an “optional technology solution that SBA is providing to PPP lenders that will leverage SBA’s existing and proven platform.”

Banks that are PPP lenders must opt-in to the direct borrower forgiveness program.  Participating institutions will receive a single secure location for their borrowers with eligible loans to apply for forgiveness through the platform using the electronic equivalent of SBA Form 3508S.  Once a bank is notified that a borrower has applied for forgiveness directly, the institution must review the loan forgiveness application and issue a forgiveness decision to SBA.

he forgiveness platform will begin accepting applications from borrowers on August 4, 2021, and SBA also noted that it will issue additional guidance to lenders regarding the opt-in process and how borrowers and lenders will access the platform.

To read more, click here. To opt-in to the direct forgiveness program, click here.

Treasury Expands Vaccination Paid Leave Tax Credit

In related news, the Treasury Department announced this week that it will allow certain eligible employers to claim tax credits for providing paid time off to employees to take a family or household member or certain other individuals to get vaccinated, or to care for a family or household member or certain other individuals recovering from the vaccination. 

As we reported previously, Treasury announced a tax credit under the American Rescue Plan Act of 2021 earlier this year that allows small and midsize employers with fewer than 500 employees to claim refundable tax credits that reimburse them for the cost of providing paid sick leave and family leave to their employees due to COVID-19, including leave taken to receive or recover from COVID-19 vaccinations.

To read more, click here.

Biden Administration Announces New COVID-19 Relief Programs for Homeowners with HUD, VA and USDA Loans

Late last week, the Biden Administration announced new relief initiatives to help mortgage borrowers with loans through the Department of Housing and Urban Development (HUD), Department of Veterans Affairs (VA) and the Department of Agriculture (USDA) avoid foreclosure after they exit forbearance.  According to the announcement, the steps will “bring federal agency options closer in alignment with payment reduction and loan modification options for borrowers with Fannie Mae and Freddie Mac mortgages.”

Specifically, HUD will begin offering a standalone partial claim option for borrowers who are able to resume their current mortgage payments, as well as a loan modification option that would extend the term of the mortgage to 360 months at market rate and targets reducing the borrowers’ monthly principal and interest portion of their monthly mortgage payment by 25 percent.  In addition, USDA and the VA will begin offering new alternatives for borrowers to help them achieve up to a 20 percent reduction in their monthly mortgage payments.

To read more, click here.