Aggregated News From Investment Management Regulators

Agencies issue two final rules

Report/Flag

Please complete the required fields.



The federal bank regulatory agencies finalized two rules, which are either identical or substantially similar to interim final rules currently in effect and issued earlier this year. They include:

  • A final rule that temporarily defers appraisal and evaluation requirements for up to 120 days after the closing of certain residential and commercial real estate transactions; and
  • A final rule that neutralizes—due to the lack of credit and market risk—the regulatory capital and liquidity effects for banks that participate in certain Federal Reserve liquidity facilities.

The final rule temporarily deferring appraisal and evaluation requirements is substantially similar to the interim final rule issued in April. It will allow individuals and businesses to more quickly access real estate equity to help address needs for liquidity as a result of the coronavirus. In response to comments, the final rule clarifies which loans are subject to the deferral. The final rule is effective upon publication in the Federal Register and will expire on December 31, 2020.

The final rule pertaining to Federal Reserve liquidity facilities adopts without change three interim final rules issued in March, April, and May, 2020. Earlier this year, the Federal Reserve launched several lending facilities to support the economy in light of the coronavirus response. The final rule neutralizes the regulatory capital and liquidity coverage ratio effects of participating in the Money Market Mutual Fund Liquidity Facility and Paycheck Protection Program Liquidity Facility because there is no credit or market risk in association with exposures pledged to these facilities. As a result, the final rule will support the flow of credit to households and businesses affected by the coronavirus. The effective date of this final rule is 60 days after the date of publication in the Federal Register.

Media Contacts:
Federal Reserve Board:
Eric Kollig
(202) 452-2955
FDIC:
Julianne Fisher Breitbeil
(202) 898-6895
OCC:
Stephanie Collins
(202) 649-6870

Source link

Regulator Information

Regulator Name: Federal Reserve System
Abbreviation: FRB US
Jurisdiction: United States

Recent Articles

Corriegarth Wind Energy/ www.corriegarthwindenergy.com (Please note this has no link to Corriegarth Wind Energy Holdings Limited Company number SC253383 or Corriegarth Wind Energy Limited...

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

elitefxoptiontrade

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Bendigo Coins LTD (clone of FCA authorised firm)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

Upswingtrade.com (Clone of FCA authorised firm)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

Kensington Capital UK

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Get the latest from Regulatory.News in your inbox!

×