Financial

March 27, 2020

On Friday, March 27, 2020, the President signed into law a stimulus bill designed to provide emergency assistance for those affected by the COVID-19 national emergency (the “CARES Act” or “Act”) that includes certain temporary relief for federal student loan borrowers. The Act largely codifies the Department of Education’s previous announcement regarding temporary relief to federal student loan borrowers impacted by the COVID-19 national emergency and extends the timeline for the temporary relief measures. The…

Consumer Financial Services Law Monitor

The CARES Act’s Nationwide Mortgage Foreclosure Moratorium Headlines Its Important Consumer Protection Provisions

By David N. Anthony, Cindy D. Hanson, John C. Lynch, Ethan G. Ostroff, Alan D. Wingfield & Jed Komisin

March 27, 2020

Overview President Trump today signed into law H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2 trillion relief measure. Title IV, the economic stabilization portion of the CARES Act, contains three sections which dramatically affect businesses in the consumer financial services space. These sections include a foreclosure moratorium on federally-related loans, right to request and receive forbearance on federally-related mortgage loans, protections from evictions, and credit reporting protections for consumers…

Financial services: Regulation tomorrow

US financial regulators establish webpages on the COVID-19 pandemic

By Kathleen Scott (US)

March 27, 2020

The US financial regulatory, consumer protection and enforcement supervisors are regularly issuing press releases and statements concerning the COVID-19 pandemic. Each of them has established special links to provide information to the public on its response to the pandemic. Board of Governors of the Federal Reserve System: https://www.federalreserve.gov/covid-19.htm Commodity Futures Trading Commission: https://www.cftc.gov/coronavirus Conference of State Banking Supervisors: https://www.csbs.org/information-covid-19-coronavirus Consumer Financial Protection Bureau: https://www.consumerfinance.gov/coronavirus/ Federal Deposit Insurance Corporation: https://www.fdic.gov/coronavirus/index.html Federal Trade Commission: https://www.ftc.gov/coronavirus/ftc-in-action Financial Crimes Enforcement…

Mortgage Crisis & Financial Services Watch

A Glut of “Opportunistic” Margin Calls: Are Creditors Moving Too Quickly to Seize Assets?

By Philip R. Stein

March 27, 2020

What can companies expect from their funding sources as COVID-19 does damage to the economy? In at least some instances, perhaps, opportunistic attempts by lenders to illegally take control of business assets. A real estate investment trust (REIT) in New York alleges in a new lawsuit that it has already fallen victim to that type of misconduct. AG Mortgage Investment Trust Inc. (AG) filed suit against the Royal Bank of Canada (RBC) on March 25…

Retained Interest

Small Business Loans under the CARES Act

By Amanda L. Baker, J. Paul Forrester, Andrew T. Kugler, Eric T. Mitzenmacher & Joanna C. Nicholas

March 27, 2020

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. Among other things, the CARES Act creates the “Paycheck Protection Program,” which provides up to $349 billion to expand the Small Business Administration’s (SBA’s) existing 7(a) loan program to support new loan guarantees and subsidies. Highlights of the program include:…

FinReg

Congress Passes the CARES Act: Economic Stabilization and Tax Relief

By William J. Chudd, Luigi L. De Ghenghi, Edmond T. FitzGerald, Randall D. Guynn, Lee Hochbaum, Rachel D. Kleinberg, Michael Mollerus, David H. Schnabel, Margaret E. Tahyar & Gregory D. Hughes

March 27, 2020

Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) this afternoon, and we cover it here in two memos. In one memo, we cover the economic stabilization, small business and bank regulatory sections of the legislation. In the other memo, we cover tax relief for businesses and individuals. View as a PDF…

Cov Financial Services

Federal Reserve and FFIEC Offer Regulatory Reporting Relief

By Brendan Duffy

March 27, 2020

Earlier this week, the Federal Reserve provided financial institutions with $5 billion or less in total assets a thirty-day extension to the deadline for filing certain first quarter bank holding company financial reports, and the Federal Financial Institutions Examination Council (FFIEC) provided a similar thirty-day extension of the deadline for all institutions (regardless of size) to submit their March call reports.…

Consumer Financial Services Law Monitor

Federal Regulators Encourage Financial Institutions To Consider Small-Dollar Consumer Loans During COVID-19 Pandemic

By Alex Teixeira, Ethan G. Ostroff & D. Kyle Deak

March 27, 2020

On March 26, federal regulators advised financial institutions to consider providing small-dollar loans to cash-strapped consumers during the coronavirus (“COVID-19”) pandemic. Although the guidance encouraged “responsible” lending that is “consistent with sage and sound banking practices and applicable laws, including consumer protection laws,” the joint-agency statement has been criticized by some consumer advocates, who say that the guidance opens the door to predatory lending. In a statement, the Board of Governors of the Federal…

Financial Institutions Legal Snapshot

How to establish a business enterprise in South Africa: Ten things to know

By Stephen Kennedy-Good & Dale Cridlan

March 27, 2020

01 I Methods of incorporation A business presence can be established in South Africa, one can either incorporate a South African entity or incorporate a foreign offshore entity, as a so called ‘branch’ or ‘external company’. 02 I Applicable legislation Both forms of business enterprise are regulated by the Companies Act 2008. However, in the case of a branch, the ongoing compliance obligations are less onerous. The Act recognizes that an entity of that nature…

Financial Institutions Legal Snapshot

Effect of lockdown regulations on landlords and tenants

By Daniel Breier

March 27, 2020

What is the effect of clauses 11B(1)(b), (c) and (d) of the lockdown regulations which read: “(b) All businesses and other entities shall cease operations during the lockdown, save for any business or entity involved in the manufacturing, supply, or provision of an essential good or service. (c) Retail shops and shopping malls must be closed, except where essential goods are sold and on condition that the person in control of the said store must…

Financial

School’s Out: Proposed Relief for Federal Student Loan Borrowers Impacted by COVID-19

The CARES Act’s Nationwide Mortgage Foreclosure Moratorium Headlines Its Important Consumer Protection Provisions

US financial regulators establish webpages on the COVID-19 pandemic

A Glut of “Opportunistic” Margin Calls: Are Creditors Moving Too Quickly to Seize Assets?

Small Business Loans under the CARES Act

Congress Passes the CARES Act: Economic Stabilization and Tax Relief

Federal Reserve and FFIEC Offer Regulatory Reporting Relief

Federal Regulators Encourage Financial Institutions To Consider Small-Dollar Consumer Loans During COVID-19 Pandemic

How to establish a business enterprise in South Africa: Ten things to know

Effect of lockdown regulations on landlords and tenants

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