Crapo Presses Regulators to Extend CARES Act Relief Provisions
August 5, 2020
As reported by Politico this week, Senate Banking Committee Chairman Mike Crapo (R-Idaho) wrote to the heads of the financial regulatory agencies urging them to extend certain CARES Act relief provisions. Specifically, Crapo urged regulators to:
- Maintain the 8% community bank leverage ratio through Dec. 31, 2021.
- Extend the temporary relief from troubled debt restructuring categorizations until Jan. 1, 2022.
- Delay the implementation of the current expected credit loss standard until Jan. 1, 2023, and clarify and minimize unintended effects of mid-year adoption.
Crapo also urged regulators to consider several additional steps to strengthen minority depository institutions, which he noted have played a significant role during the pandemic. He also called for the extension of several existing mortgage-related relief programs, including HUD and FHFA foreclosure and eviction moratoriums and forbearance for multifamily loans backed by Fannie Mae and Freddie Mac. Read the letter.