Featured Product

    US Agencies Extend Volcker Rule Consultation, Clarify Mortgage Rules

    April 03, 2020

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) announced that, due to COVID-19, they are extending the comment period for the proposal to modify the Volcker rule’s general prohibition on banking entities investing in or sponsoring covered funds; the comment period is being extended by one month, until May 01, 2020. Additionally, US Agencies (CFPB, FDIC, FED, NCUA, and OCC) and the state financial regulators issued a joint policy statement on the regulatory flexibility to enable mortgage service providers to work with struggling consumers affected by COVID-19. This regulatory flexibility will enhance the ability of mortgage servicers to place consumers in short-term payment forbearance programs such as the one established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020.

    Under the CARES Act, borrowers in a federally backed mortgage loan experiencing a financial hardship, directly or indirectly due to COVID-1 pandemic, may request forbearance by making a request to their mortgage service provider and affirming that they are experiencing a financial hardship during the pandemic. In response, servicers must provide a CARES Act forbearance, allowing borrowers to defer their mortgage payments for up to 180 days and possibly longer. The policy statement clarifies that the agencies do not intend to take supervisory or enforcement action against mortgage servicers for delays in sending certain early intervention and loss mitigation notices and taking certain actions related to loss mitigation set out in the mortgage servicing rules, provided that servicers are making good faith efforts to provide these notices and take these actions within a reasonable time.

    To further enable short-term payment forbearance programs or short-term repayment plans, mortgage service providers offering these programs or plans will not have to provide an acknowledgement notice within five days of receipt of an incomplete application, provided the service provider sends the acknowledgment notice before the end of the forbearance or repayment period. The guidance also reminds service providers that there is existing flexibility in the rules with respect to the content of certain notices. Finally, to assist servicers experiencing high call volumes from consumers seeking help, the policy statement confirms that the agencies do not intend to take supervisory or enforcement action against mortgage servicers for delays in sending annual escrow statements, provided that servicers are making good faith efforts to provide these statements within a reasonable time. 

     

    Related Links

    Comment Due Date: May 01, 2020 (Volcker Rule)

    Keywords: Americas, US, Banking, Insurance, Securities, COVID-19, Volcker Rule, Home Mortgage, CARES Act, Credit Risk, FAQ, Home Mortgage Servicing, US Agencies

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596