Bank Regulations and the CARES Act: Loan Modifications, Capital Requirements, Mortgage Forbearance and Servicing
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will examine various provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that will have a regulatory impact on the banking industry. The panel will discuss removal of the cap on FDIC insured deposits; the OCC waiver of single-borrower lending limits for national banks; reduction of the minimum leverage ratio for community banks; accounting treatment of loan modifications; and application of the new forbearance and mortgage servicing rules.
Outline
- CARES Act provisions relating to accounting and capital requirements
- Reduction of community bank leverage ratio
- Loans-to-one-borrower limitations
- Accounting for loan modifications/debt restructurings--suspension of GAAP
- Relief from 2016 FASB standards regarding CECL
- Mortgage forbearance and servicing under the CARES Act
- Forbearance on request
- Enforcement of Act under Regulation X and Regulation Z
- New flexibility in agency supervision of mortgage servicers
- FDIC insured deposits, debt guarantees
Benefits
The panel will review these and other key questions:
- How does the CARES Act impact capital requirements and loan loss calculations for banks?
- For what period are banks given relief from the current FASB Accounting Standards regarding CECL?
- What mortgage forbearance must be made available for mortgage borrowers? Must it be requested?
- How have servicing standards been made more flexible under the CARES Act?
Faculty
Sanford M. Brown
Partner, Co-Chair Financial Services Group
Alston & Bird
Mr. Brown counsels and represents financial institutions and specialty finance companies, as well as their shareholders... | Read More
Mr. Brown counsels and represents financial institutions and specialty finance companies, as well as their shareholders and holding companies, in matters involving state and federal banking laws, regulations and enforcement actions; in corporate transactions, such as mergers, acquisitions, securities offerings, holding company formations and Subchapter S corporation elections; and in matters involving privacy and identity theft. He previously served in the Office of the Comptroller of the Currency where his responsibilities included a wide range of matters relating to the regulation of national banks.
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Ross M. Speier
Attorney
Alston & Bird
Mr. Speier practices in the firm’s Financial Services & Products Group. He focuses his practice on securities... | Read More
Mr. Speier practices in the firm’s Financial Services & Products Group. He focuses his practice on securities transactions and banking regulation. Mr. Speier advises public companies on 1933 Act filings and 1934 Act reporting, corporate governance, and general corporate matters, with an emphasis on REITs and business development companies. Additionally, he counsels banks and financial services providers on various federal and state banking laws, with a focus on consumer financial services regulations such as the Truth in Lending Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, Equal Credit Opportunity Act, Electronic Fund Transfer Act, and UDAAP laws, as well as related rules and guidance issued by the CFPB and FTC.
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