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In-sites
An Information Resource Center
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The Paycheck Protection Program resumed accepting applications July 6, 2020 in response to President signing legislation to extend the program. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.
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Unemployment Insurance Fraud
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The Secret Service and Labor Department Office of Inspector General are investigating a criminal scheme involving the use of stolen personal identifying information to fraudulently claim unemployment insurance benefits.
The agencies said financial institutions should be alert for suspicious transactions, report any suspicious activity, and work with law enforcement to investigate potential illicit activity and return fraudulently obtained funds.
The agencies' announcements and other information, including about Secret Service Cyber Fraud Task Forces, are available in the
Vulnerabilities & Mitigation section of ICBA's
Bank Cyber and Data Security Guide.
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Banks could soon be preparing for a new regulatory reporting process on top of dealing with the ongoing COVID-19 pandemic.
On June 28, The Wall Street Journal reported that the Federal Deposit Insurance Corp. is considering eliminating quarterly bank reports and replacing them with a new reporting prototype geared toward more targeted and timely information. It is unclear if the new format would be publicly available. If it is, bankers and industry experts agreed that a move toward real-time data could reduce regulatory burdens for banks, increase industry transparency and benefit M&A. The FDIC declined to comment in time for publication.
According to The Wall Street Journal report, FDIC Chairman Jelena McWilliams hopes to make call reports "obsolete" to have better and more timely data. The agency expects to launch a competition among 20 data and technology firms to create the new reporting prototype. The prototype is expected to be ready in about six months and while the FDIC will not mandate its use, banks will be incentivized to use it.
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The Consumer Financial Protection Bureau
issued a proposed rule to implement relief from mandatory escrow requirements for higher-priced mortgage loans.
Under the proposal, institutions with $10 billion or less in assets that originate 1,000 or fewer mortgage loans secured by a first lien on a principal dwelling will not be required to establish escrow accounts for loans originated and retained in portfolio.
The proposal to amend Regulation Z begins the last CFPB rulemaking required by the S. 2155 Dodd-Frank regulatory relief law.
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Focus on Libor Transition Preparedness
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Federal financial regulators will ramp up their supervisory focus on banks' transition away from the London Interbank Offered Rate (Libor) in 2020 and 2021.
The statement issued by the Federal Financial Institutions Examination Council, noted that as part of examination activities, "supervisory staff will ask institutions about their planning for the Libor transition including the identification of exposures, efforts to include fallback language or use alternative reference rates in new contracts, operational preparedness, and consumer protection considerations." The agencies noted that supervisory focus "will be tailored to the size and complexity of each institution's Libor exposures."
While the statement does not establish new guidance or regulation, the agencies noted that "institutions should consider existing safety and soundness standards and consumer protection laws as they plan for and address risks that will arise with the transition from Libor," which is not guaranteed to be sustained beyond 2021.
To prepare for the transition, they recommended that institutions take steps including:
- Identifying and quantifying Libor exposure across product categories and lines of business
- Conducting a risk assessment of Libor exposures, which may include scenario testing, legal review and other analysis
- Creating transition plans with milestones and key completion dates
- Conducting an assessment by bank management of revisions that may be necessary to update the institution's policies, processes and internal control systems
- Assigning responsibility for Libor transition oversight t a committee, team or officer
- Reporting progress on the Libor transition to the institution's board of directors and senior management team
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Forgive PPP Loans Under $150K
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Senate Banking Committee member Kevin Cramer (R-N.D.)
introduced legislation that would forgive Paycheck Protection Program loans under $150,000.
The bipartisan Paycheck Protection Small Business Forgiveness Act (S. 4117) would forgive such loans provided borrowers submit a one-page attestation form to lenders. The bill also would expand the hold-harmless provision for lenders that rely on borrower attestations to encompass all aspects of the loan process, not just forgiveness.
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Compliance Event of the Year is On!
We know you are tired of staring at a computer. So are we! But, unfortunately, as we evaluate the situation on the ground, and the State of Arkansas expecting Covid-19 cases peaking in September, we have decided to cancel our in-person conference and instead offer the same great training virtually. Nothing is more important to us than your health and safety.
So, lock your calendars in -
September 9 and 10
We have a special guest at this year's conference!
Stay Tuned!
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