With stimulus money running out and forbearances set to expire, consumer spending is bound to shrink. That's bad news for business owners and their landlords, the Pittsburgh bank's CEO says.
The U.S. economy can escape another decadelong slog back to health if strong public measures or a vaccine curb virus surges, Federal Reserve Bank of San Francisco President Mary Daly said.
The Paycheck Protection Program propped up many banks' balance sheets in the first half of the year, but what will drive loan demand in the second half?
On June 9 the Consumer Financial Protection Bureau (CFPB) published a Factsheet on how to disclose title insurance on the Loan Estimate and Closing Disclosure, including when a negative owner’s title insurance cost disclosure is appropriate, and updated the TRID FAQs to include guidance on the total of payments disclosure, using the optional signature line on the Loan Estimate and Closing Disclosure, and the requirement to include seller information on the consumer’s disclosures if providing separate Closing Disclosures. This blog discusses the Factsheet, and sets forth the four questions added to the FAQ, along with brief answers.
Lenders typically require borrowers to purchase a lender’s title insurance policy in connection with a residential mortgage loan. The amount disclosed by the creditor on the Loan Estimate (LE) is the amount of the premium, and it is disclosed either under Services You Cannot Shop For or Services You Can Shop For on the Loan Cost Table, depending upon whether the borrower can or cannot shop for the policy. On the Closing Disclosure (CD), the cost is disclosed in the Loan Costs Table either under Services Borrower Did Not Shop For or Services Borrower Did Shop For.
Read More from: Bankruptcy and Restructuring Blog
The SEC’s 2020 spring agenda of its rulemaking actions under the Regulatory Flexibility Act (RFA) has been posted. The agenda, commonly referred to as the “Reg Flex Agenda,” is published semiannually and reflects the actions the SEC Chairman anticipates the agency will complete in the short term (within a year and almost all items are listed in the “Proposed Stage” or “Final Rule Stage”) or the long term (longer than a year and the items are listed as “Long-Term Actions”). Under Chairman Jay Clayton’s leadership the agenda is meant to be viewed as a transparency and accountability tool of the agency’s initiatives, as opposed to a list of merely aspirational goals.
Read More from: Davis Polk Briefing: Governance
Q: When it comes to the economic strain caused by COVID-19, what are some basic things I should know about business bankruptcy? Advice: The first thing you should know is that there are many options available for a company that has economic issues as a result of the COVID-19 pandemic. There are multiple loan programs through the federal government; there may be some rent relief that can be obtained as a result of the terms of your lease; and there may also be settlements and forbearances that can be received from your vendors and landlords. Depending on the nature of your business, it is always preferable to avoid bankruptcy. However, if bankruptcy is your best alternative, bankruptcy attorneys can use their extensive experience to help businesses navigate the issues that are raised in a bankruptcy. Depending on the size of your business, Congress has made some changes to the Small Business Bankruptcy rules, which could be beneficial to you. When properly planned and implemented, bankruptcy can be an effective way to help a business overcome financial difficulties. Harry W. Greenfield(216) firstname.lastname@example.org
Read More from: Bernstein-Burkley, P.C.
The bank is rethinking its plans for bringing back workers in Texas, Florida and other states where new coronavirus cases are surging.
Jelena McWilliams explains the agency's decision to enlist the help of tech innovators to modernize a reporting process that the coronavirus epidemic has exposed as outdated.
In a letter to Director Mark Calabria, 17 organizations requested an additional 60 days to weigh in on the proposal meant to strengthen Fannie Mae and Freddie Mac's balance sheets post-conservatorship.
Mesaba, which is also based in Minnesota, is the parent of American Bank of the North and Lake Bank.
June 29, 2020
Many economists and bankruptcy lawyers expect a wave of bankruptcies coming this year.
Giant bankruptcies of companies that owe more than $100 million, are up 40% from a year ago, which means they are up 120% from 2018. Chapter 11 bankruptcies of all kinds have increased 20% since last year. This is obviously traumatic for the people who work at those companies but there is a silver lining.
“It’s an overstatement to say that bankruptcy is this deeply undesirable thing,” said Jared Ellias, professor of law at UC Hastings College of Law.
“One of the great things that happens after bankruptcy is a company leaves, and they’re hopefully positioned to thrive,” he said.
The post COVID-19 economy is going to be very different and a lot of businesses will need to radically reinvent and reinvest in themselves in order to adapt. Chapter 11 bankruptcy lets companies do that. Which is why Ellias and a group of academics are concerned that if there are too many bankruptcies, the courts might get overwhelmed and companies won’t get the help they need.
“When a company is in financial trouble, they can’t invest, they can’t hire, they can’t give people pay raises, they can’t do the things that businesses need to do to be attractive places to work,” Ellias said.
So if you slow down the process of transformation, it slows down the entire economy.
Read More from: Shenwick & Associates
Wei Ke, partner at Simon-Kucher & Partners, shares research and analysis from a recent consumer survey on branch versus digital banking behaviors after the coronavirus lockdowns are over.
On 25 June 2020 the Corporate Insolvency and Governance Act received Royal Assent, making some of the biggest changes to UK insolvency laws in the last 30 years. We have written several blogs covering the changes and how they help support distressed businesses, impact suppliers, lenders and other third parties and have tracked the changes through the UK parliament.
Largely because of the need to implement temporary changes to help support business in distressed as a result of COVID-19 the Bill was fast tracked through parliament leaving limited time for scrutiny and change. There are powers in the Act to enable quick changes to the Act, if the procedures don’t work as intended. These will enable loop holes to be closed and gaps to be filled.
Read More from: eSQUIRE Global Crossings
Read More from: The Ponzi Blog
The extension to Aug. 8 was offered by Senator Ben Cardin, a Maryland Democrat, and cleared the chamber by unanimous consent. The House has yet to take up the bill but could pass it as soon as Tuesday night.
Reading Cooperative Bank recently launched a program that aims to hire young Black and Hispanic adults from low-income communities. Its leaders say it’s part of a broad strategy to develop new pipelines of talent and better serve low-income communities.
Federal Reserve Chairman Jerome Powell said about 300 lenders have signed on to the program and that the central bank is committed to making adjustments that could attract more borrowers.
Chris Dodd and Barney Frank said the legislation — nearing its 10th anniversary — put banks in position to be a stabilizing force during the coronavirus crisis.
Six of the eight regional banks that announced their stress capital buffers on Tuesday said they will need just a 2.5% cushion to weather an economic downturn. All eight said they’ll keep their dividends steady.
Lenders are selling their Paycheck Protection Program loans or hiring outside companies to navigate the process in an effort to reduce risk and avoid overloading their employees.