Regulatory Important Topic
Helping Customers Through the PPP Forgiveness Process
- Review the rules governing the loan forgiveness process on the U.S. SBA Website
- Train Staff on how to review the calculations and documents within the application
- Consider Utilizing Specialized Software to help through the process
- Prepare for the SBA to potentially audit certain borrowers applications
- Prepare for the SBA to potentially limit the amounts of forgiveness for some borrowers
- Post links to the SBA’s rules on your website that include helpful FAQ’s
- Communicate frequently with the staff the reasons why a loan was denied forgiveness
For further information: Reference / Utah Banker / Issue 3, 2020 / Page 5 / Author: Jay Kenney SVP, PCBB
Compliance Topic Updates
Regulations M and Z Exemption Thresholds
Under the Dodd-Frank Act of 2010, the CFPB has reviewed the dollar amount thresholds for both exempt leases (Regulation M) and consumer credit transactions (Regulation Z). The CFPB review determined that the thresholds will both remain at the current $58,300.
STAR Act // H.R. 8787
11/19/20 – Introduced in the House by Debbie Lesko
- Student Aid and Tax-Advanced Accounts Reform (STAR)
- Help families save for higher education by reforming 529 plans & retirement accounts (IRA’s & 401k’s)
- Update the Student Aid contributions formula to better fit for families with multiple children by subtracting all sibling 529 plans. This will change the eligibility of financial aid for each student.
- Would allow parents and grandparents to pay off student debt from these retirement accounts.
- Would also allow individuals to take up to $5,250 tax and penalty free amounts from IRA’s and 401k’s to pay back on these student loans.
PASS Act // H.R. 8820
11/24/20 – Introduced in the House by Lauren Underwood
- Pandemic Accommodation to Support Students
- Amend the student loan relief section of the CARES Act to continue through September 30, 2021.