#2021-4, February 5, 2021

Federal Reserve Announces FedNow will now Launch in 2023

This week, the Federal Reserve announced that the FedNow real-time payments service will now be ready to launch in 2023.  The central bank had initially stated that the service would be available sometime in 2023 or 2024.

The initial launch includes core clearing and settlement functionality, as well as other features such as a request-for-payment capability and tools to support participants in their handling of payment inquiries, reconcilements and certain exceptions.  As we have reported previously, the Boston Fed is leading the development of FedNow.

To read more, click here.

President Biden Directs HUD to Review 2020 Disparate Impact Rule

President Biden recently signed an Executive Order directing the Department of Housing and Urban Development (HUD) to undertake a review of the effects of the agency’s 2020 rule revising the standard for bringing disparate impact claims under the Fair Housing Act.  As we reported previously, the HUD rule conforms HUD’s 2013 disparate impact rule to the Supreme Court’s 2015 decision in Texas Department of Housing Community Affairs v. Inclusive Communities.  That ruling, while recognizing disparate impact analysis to demonstrate discrimination claims under the FHA, also added key limitations to ensure the burden of proof in disparate impact cases is with the plaintiffs.

The President’s EO requires HUD to “take any necessary steps, as appropriate and consistent with applicable law, to implement the Fair Housing Act’s requirements that HUD administer its programs in a manner that affirmatively furthers fair housing and HUD’s overall duty to administer the Act . . . including by preventing practices with an unjustified discriminatory effect.”

To read more, click here.

FinCEN Updates PPP FAQs

Earlier this week, the Financial Crimes Enforcement Network (FinCEN) released updated FAQs regarding how banks can meet BSA requirements when originating Paycheck Protection Program (PPP) loans.  The agency also confirmed that the FAQs remain applicable to second-draw PPP loans, and that lenders may rely on information obtained from a borrower during a first-draw loan application for a second-draw application, provided the borrower is an existing customer.

To read the FAQs, click here.

Senator Warren to Join Senate Finance Committee

Senator Elizabeth Warren (D-MA) will serve on the Senate Finance Committee, which considers taxation and other revenue measures; health programs including Medicare, Medicaid, and other health and human services programs.  Sen. Warren will also retain her position on the Banking Committee.

Senate Confirms Janet Yellen as Treasury Secretary

By a bipartisan vote of 84 to 15 last week, the Senate approved the nomination of Janet Yellen to serve as the next secretary of the treasury. Yellen is the second person to lead by the Federal Reserve and Treasury and the first woman to serve as Treasury Secretary, received unanimous approval by the Senate Finance Committee in January.