FED Announces Measures to Mitigate Impact of COVID-19 Crisis
FED issued a letter informing the supervised financial institutions that it does not intend to cite in an examination or initiate an enforcement action for failure to report the quarterly Home Mortgage Disclosure Act (HMDA) data during the COVID-19 pandemic. On March 26, 2020, CFPB issued a statement detailing the same approach regarding quarterly reporting under HMDA. At a later date, FED will provide information as to how and when it expects its supervised institutions to resume quarterly HMDA data submissions. Meanwhile, institutions should continue to collect and record HMDA data in anticipation of the annual data submissions.
FED also announced that it will delay by six months the effective date for its final rule that revises the framework for determining whether a company controls another company for purposes of the Bank Holding Company Act or the Home Owners’ Loan Act. The effective date has been delayed until September 30, 2020. The delay will reduce operational burden and allow institutions to focus on current economic conditions. Additionally, FED announced the establishment of a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA Repo Facility) to help support the smooth functioning of financial markets, including the U.S. Treasury market and, thus, maintain the supply of credit to U.S. households and businesses. The FIMA Repo Facility will be available beginning April 06 and will continue for at least six months. FED also published the frequently asked questions related to the FIMA Repo Facility.
Related Links
- Letter on HMDA Quarterly Reporting
- CFPB Statement (PDF)
- Press Release on Revised Effective Date
- Press Release on FIMA Repo Facility
Keywords: Americas, US, Banking, COVID-19, HMDA, Reporting, Home Mortgage Disclosures, Disclosures, FIMA Repo Facility, CFPB, FED
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