April 1, 2020
Recording Of MBA Conference Call With SBA Now Available
A recording of today's conference call with Tom Salisbury, Region VII SBA administrator, is now available online. To access this call requires a password to MBA's website. MBA staff is compiling a list of questions asked during today's call and will post these to its website. We will notify you when this is available.
New MBA Podcast Episode Covers COVID-19, Distressed Debt, Bankruptcy
The latest episode of "Our Two Cents with MBA" podcast features Mike Fielding, a partner at Husch Blackwell, discussing the impact of the coronavirus on distressed debt and bankruptcy. In particular, Fielding outlines how lenders should evaluate existing loans for potential workarounds and how to prepare for an increase in bankruptcy filings as this crisis is prolonged. He also breaks down the impact of the CARES Act, which significantly expands the eligibility of businesses to file for bankruptcy.
MBA's podcast is available on iTunes, Apple Podcasts, Google Podcasts and Spotify.
ABA Webinar Recording, Summary Of CARES Act Now Available To Bankers
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recording of the American Bankers Association’s webinar on the CARES Act is now available for ABA members to access. During the webinar, ABA President and CEO Rob Nichols joined a panel of ABA staff experts to discuss various provisions of the bill that will affect the banking industry, including the SBA Paycheck Program, mortgage forbearance policies, a delay in CECL implementation and more.
Fed Announces New Facility To Ease Strain In U.S. Dollar Markets
To help ease strains in the global U.S. dollar funding market, the Federal Reserve
established a temporary repurchase agreement facility for foreign and international monetary authorities. This is the latest move by the Fed to support global market operations and ensure the flow of credit to households and businesses as the coronavirus pandemic continues. The Fed previously established U.S. dollar liquidity swap lines with a number of other central banks.
Through this new facility, FIMA account holders, including central banks and other international monetary authorities with accounts at the New York Fed, may enter into repurchase agreements with the Fed. It is intended to provide an alternative temporary source of U.S. dollars other than the sales of securities in the open market. The facility will be available starting April 6 and will continue for at least six months.
FHFA Grants GSEs Loan Processing Flexibility
The Federal Housing Finance Agency took action to grant
additional flexibility to Fannie Mae and Freddie Mac to help expedite loan processing during the pandemic. FHFA said the GSEs may:
- allow desktop appraisals for new construction loans
- allow flexibility on demonstrating construction has been completed
- allow borrowers to provide documentation instead of an inspection to receive renovation disbursements
- expand the use of power of attorney and remote online notarizations
New CFPB Webpage Offers Consumer Guide To Coronavirus Mortgage Relief
The Consumer Financial Protection Bureau has launched a new consumer
webpage outlining relief options for mortgage borrowers who may be facing financial hardship as a result of the coronavirus pandemic. The page emphasizes that borrowers who can make their mortgage payments should continue to do so and instructs those who cannot to contact their servicers directly to discuss their options, as certain mortgage loans may not be federally backed. The page outlines the various protections available to borrowers under the CARES Act and other recent regulatory actions and also provides resources to help borrowers determine which type of relief they may qualify for.