#2023-23, October 6, 2023

U.S. Congress Averts Shutdown, Federal Government Funded Through Nov. 17

Last Saturday the United States Congress passed a stopgap spending measure that extends federal funding until November 17, averting a government shutdown that would have taken effect on Sunday, October 1. The U.S. Senate voted 88-9 and the U.S. House voted 335-91 to approve the funding measure.

U.S. Congress now faces a November 17 deadline to pass a resolution funding the government or risk another shutdown.

To read more about the impacts of a government shutdown, click here.

U.S. House of Representatives Oust Representative Kevin McCarthy (R-CA) as Speaker

Days after avoiding a government shutdown, the U.S. House of Representatives voted to remove Representative Kevin McCarthy (R-CA) as Speaker in a 216-210 vote, with 8 Republicans joining the Democrats. Representative Patrick McHenry (R-NC), chair of the House Financial Services Committee, will serve as acting Speaker until a successor is elected.

The move further complicates House proceedings on numerous issues including the potential for a government shutdown, which as noted above, will take effect on November 18 if no action is taken. To read more about this week’s news in the U.S. House, click here.

FDIC Proposes New Guidelines for Board Governance, Risk Management

Yesterday the FDIC Board of Directors voted 3-2 to establish new guidelines for governance and risk management at covered institutions with at least $10 billion in consolidated assets or more. The vote was taken by a notational vote, meaning it was voted on by the FDIC Board of Directors without a meeting.

Click on the links below for more information on the new guidelines:

• FDIC: Board Meeting - October 3, 2023
• FDIC proposes new guidelines for board governance, risk management at larger banks | ABA Banking Journal

Casey Brouthers, VP and Associate General Counsel for BayCoast Bank Wins 2023 ABA Emerging Leader Award

The American Bankers Association announced the 2023 Emerging Leaders Awards recipients, which recognize the next generation of bank leaders who are committed to the highest standards of achievement and service to both their industry and their local communities. The winners were selected by a diverse steering committee of industry professionals after a review of nominations from banks across the country.

The Association offers its sincerest congratulations to Casey Brouthers, VP and Associate General Counsel, BayCoast Bank, on this well-earned recognition!

To read more about the ABA Emerging Leader Awards, click here.

Federal Court Issues Nationwide Injunction on Consumer Protection Financial Bureau’s (CPFB) Section 1071

A federal judge recently granted an injunction delaying the compliance dates for the CPFB Section 1071 final rule while the Supreme Court hears a separate case weighing the constitutionality of the CFPB’s funding structure. 

At a hearing before the Supreme Court on Tuesday, justices appeared, based on comments and arguments throughout the hearing, “likely to preserve the work of” the CFPB. To read more about Tuesday’s hearing, click here.

The Association continues to closely monitor this issue and will provide members with updates as they develop. In the meantime, please do not hesitate to reach out to us if you have any questions.

Fannie Mae Grants Temporary Relief to Maintain Seller Eligibility Requirements

Fannie Mae announced temporary relief for sellers, which allows Fannie Mae sellers to sell at least one (1) loan for calendar year 2023.

The temporary relief eases the Loan Sales requirement that mandates at least 12 loans per calendar year in order to maintain approval as a Fannie Mae seller. According to Fannie Mae, beginning on January 1, 2025 (for calendar year 2024) sellers must meet the minimum requirement of 12 loans per calendar year to Fannie Mae in order maintain approval.

The Association is pleased to see our work alongside ABA lead to this determination by Fannie Mae. While we appreciate the short-term relief for community banks, we will continue to pursue a long-term solution and will update you on such progress as we can.