March 23, 2020
Over the weekend, U.S. Senators Chris Van Hollen (D-Md.) and Sherrod Brown (D-Ohio) released legislation capping consumer lending rates at 36% during the COVID-19 outbreak. The good news is that it did not make it in the final phase three aid package. Our team in Washington is working diligently to make sure similar legislation is not part of any further aid package.
Separately, the FDIC, the Board of Governors of the Federal Reserve System (FRB), the Office of the Comptroller of the Currency, the National Credit Union Administration, the state banking regulators, and the Consumer Financial Protection Bureau released the “Interagency Statement on Loan Modifications and Reporting by Financial Institutions Working with Customers Affected by the Coronavirus,” to encourage financial institutions to work constructively with borrowers impacted by COVID-19. This is just guidance but we encourage our members to follow their lead.