#2021-8, March 5, 2021

Senate Debating House-passed Stimulus Bill

Today, the Senate will consider the American Rescue Plan Act of 2021, which passed in the House last Saturday by a vote of 219–212. The bill is a $1.9 trillion COVID-19 economic relief package which includes $1,400 stimulus checks to individuals, an extension of unemployment benefits, emergency homeowner assistance, and $10 billion for small businesses. The House-passed bill also includes a phased increase in the minimum wage that would bring it to $15 an hour by 2025, which the Senate will not consider in its negotiations under the current rules.

Proponents of the bill hope for its passage and enactment by March 14, when a $300-per-week federal supplement to unemployment checks is scheduled to expire.

Banks Required to use Updated PPP Forgiveness Forms Starting Today

The Small Business Administration announced this week that beginning today, March 5, Paycheck Protection Program (PPP) lenders may only use the revised versions of program’s loan forgiveness forms: Form 3508, 3508S and 3508EZ.  These versions were issued on January 19, 2021. SBA will also begin accepting the first-draw and second-draw PPP loan application forms today that were issued on March 3.

To view the forgiveness forms, click here.  The revised application and lender guarantee forms are available here:
Revised First Draw Application
First Draw Application for Schedule C Filers
First Draw Form for Lenders
Revised Second Draw Application
Second Draw Application for Schedule C Filers
Second Draw Form for Lenders

CFPB Extends QM Rule Compliance Date; Retains GSE Patch

This week, the Consumer Financial Protection Bureau (CFPB) issued a proposal to delay the mandatory compliance date of the General Qualified Mortgage final rule from July 1, 2021 to October 1, 2022.  The proposal notes that when a final rule is issued, lenders will have the option of complying with either the revised General QM loan definition or the General QM loan definition in effect prior to March 1, 2021 "for covered transactions for which creditors receive an application on or after March 1, 2021 and before October 1, 2022."

The proposal also extends the temporary “GSE patch” until the new mandatory compliance date, or until the GSEs exit conservatorship, whichever comes first.  Comments are due by April 5.

To read more, click here.

Senate Confirms Gina Raimondo as Commerce Secretary

Earlier this week, the Senate voted 84 to 15 to confirm Gina Raimondo as secretary of commerce. Before her appointment, Raimondo had served as governor of Rhode Island since 2015.