Friday's News

Federal Legislative Developments

• Given the ongoing negotiation regarding further federal action, NYBA has again contacted Senator Schumer and members of the NY Congressional delegation on the House Financial Services Committee urging them to consider an extension of certain provisions of the CARES Act that are set to expire, including provisions relating to Troubled Debt Restructurings (TDRs) and Current Expected Credit Losses (CECL) accounting principles. NYBA understands that greater flexibility in TDR designation, as well as a delay in CECL implementation, is absolutely paramount in order for banks in NYS to continue to be able to provide support to their customers and to help our communities thrive. NYBA will continue to advocate on behalf of its members on these issues.
  
  
• Although ballot counting is continuing in some New York jurisdictions, a handful of Congressional races were decided this week. U.S. Reps. John Katko (R-Syracuse), Anthony Delgado (D-Hudson Valley), and Tom Suozzi (D-Nassau/Suffolk) all won re-election. Republican Assemblyman Andrew Garbarino (R-Nassau) was elected to fill the seat left by the retiring Peter King. The race between freshman Congressman Anthony Brindisi (D-Utica) is turning out to be a nail biter. He is maintaining a slim margin over former Congresswoman Claudia Tenney, who was once ahead in the race by 75,000 votes.

State Legislative Developments

• NYBA continues to follow Election Day results as absentee ballots are being counted in certain areas of NY. While there are several races at the state level that have not been confirmed, including 8 NYS Senate races, official results should be released in most races next week once the absentee ballot count is complete.  In the State Senate results currently finalized, Democrats control 40 seats and Republicans control 15 seats, leaving a supermajority possible depending on the outcome of the remaining races. Several races that have been recently finalized include the reelection of two Democratic incumbent Senators on Long Island, Senator James Gaughran (5^th Senate District) and Senator Kevin Thomas (6^th Senate District), as well as the election of Jeremy Cooney, representing the Rochester area’s 56^th Senate District, who will replace retiring Senator Joe Robach. NYBA looks forward to meeting with new and incumbent members of the legislature as the 2021 legislative session draws near.
  
  

• The State Legislature remains adjourned, as it is not yet certain whether they will reconvene for a future legislative session before the end of the year with recent discussions indicating there is no plan to return. NYBA continues to be engaged with members of the legislature on a number of issues.

Federal Regulatory Developments

• Treasury Secretary Steve Mnuchin informed the Federal Reserve that he would like to sunset the following emergency lending programs: Main Street Lending Program, the Primary Market Corporate Credit Facility, the Secondary Market Corporate Credit Facility, the Term Asset-Backed Securities Loan Facility and the Municipal Liquidity Facility.‌ The programs are set to expire on December 31. He also asked that the Commercial Paper Funding Facility and the Money Market Mutual Fund Liquidity Facility both be extended.
  
  
• Earlier today the Office of the Comptroller of the Currency (OCC) released a Notice of Proposed Rulemaking relating to fair access to financial services. The proposal seeks to clarify existing guidance to banks regarding lending to lawful businesses. Comments are to be received on or before January 4, 2021. 
  
  
• The Office of the Comptroller of the Currency finalized a regulatory modernization measure aimed at eliminating certain licensing and merger requirements. Among the primary changes in the final rule, more national banks will be able to use the OCC's expedited review process to approve certain corporate transactions. 
  
  
• The Federal Housing Finance Agency finalized a regulatory capital framework for the GSEs which revises the 2018 framework. Meanwhile, the FHFA is working to expedite Fannie Mae’s and Freddie Mac’s exit from government conservatorship, but has yet to reach an agreement with Treasury Secretary Steven Mnuchin, according to press reports.
  
  
• The Federal Reserve, with the other regulatory agencies, announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2021 will remain at $27,200, as it was in 2020. The threshold amount will be effective January 1, 2021.
  
  
• The White House said President Trump would nominate Acting Comptroller of the Currency Brian Brooks to the post of Comptroller with the hope that the Senate would confirm him prior to the next Congress. Jay Clayton announced he will step down as Chair of the SEC at the end of the year. David Brickman announced he would leave his post as President & CEO of Freddie Mac on January 8.
  
  
• Borrowers expecting Paycheck Protection Program loan forgiveness applications to be approved must disallow a deduction for qualified 2020 expenses in 2020 tax returns, according to a new ruling by the IRS.

Other State Developments

• The Empire State Development Corp. continues to provide updated information on NY Forward, which encompasses the phased reopening of the NYS regions. While all regions of NYS are in Phase 4, certain restrictions and protocols remain in place for specific industries and identified cluster zones across NYS. Maps identifying the current cluster zones in NYS are available here.

   

• An updated chart of all coronavirus banking related activity specific to New York State is available on our website.  The chart continues to be updated on a regular basis.

Resources

• The CFPB has created compliance aids related to debt collection rules.
  
  
• The FHA has released a new handbook for single-family housing policies that includes several important changes, many of which are designed to encourage more lenders to participate in FHA programs.

NYBA’s “History in Real Time” Speaker Series:
Sneak Peek at Session Three

Rebuilding Our Communities is the theme of Session Three, to be held on Friday, December 4 beginning at 11:00 a.m.  This session includes a panel discussion focusing on how our communities are coping with the current health and economic crises. Our expert panelists are: New York State Lieutenant Governor Kathy Hochul, U.S. Representative Joe Morelle, and Nassau County Executive Laura Curran. Visit our webpage to learn more about the Series.