The U.S. Small Business Administration’s Paycheck Protection Program (PPP) portal is now open to all participating PPP lenders to submit first- and second-draw loan applications. Additionally, SBA and the U.S. Treasury Department released additional PPP guidance and resources for borrowers and lenders:

• PPP: How to Calculate Maximum Loan Amounts for First-Draw PPP Loans and What Documentation to Provide (by Business Type) — This updated guidance is provided to assist businesses in calculating their payroll costs (and the relevant documentation that is required to support each set of calculations) for purposes of determining the maximum amount of a first-draw PPP loan for each type of business.
• Second-Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts (Including What Documentation to Provide) — This guidance explains how businesses can calculate their revenue reduction and payroll costs (and the relevant documentation that is required to support each set of calculations) for purposes of determining their eligibility for and amount of a second-draw PPP loan.
• Procedural Notice 5000-20077: PPP Borrower Resubmissions of Loan Forgiveness Applications Using Form 3508S, Lender Notice Responsibilities to Borrowers, and Offset of Remittances to Lenders for Lender Debts — This guidance informs PPP lenders of: 1) the process for borrower resubmission of loan forgiveness applications using PPP Loan Forgiveness Application Form 3508S; 2) lender responsibilities to notify borrowers of a) lender decisions to deny forgiveness in full, b) SBA loan review decisions and borrower appeal rights to SBA’s Office of Hearings and Appeals (OHA), and c) SBA remittance of loan forgiveness payments; and 3) lender responsibilities in the event of offset of PPP remittances to lenders by the Treasury Offset Program (TOP).
• Procedural Notice 5000-20078: PPP Excess Loan Amount Errors — This notice informs PPP lenders of the effects of “excess loan amount errors” made by the borrower or the lender in completing the PPP Borrower Application Form (SBA Form 2483, SBA Form 2483-SD, or lender’s equivalent form) or the PPP Lender Application Form (SBA Form 2484 or SBA Form 2484-SD) for first-draw PPP loans and second-draw PPP loans.
  
  

Earlier this week, SBA granted dedicated PPP access to community financial institutions (CFIs) — including community development financial institutions (CDFIs), minority depository institutions (MDIs), certified development companies (CDCs), and micro-loan intermediaries — as part of the agency’s ongoing efforts to reach underserved and minority small businesses. SBA has indicated it continues placing emphasis on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including credit unions. Moreover, the agency plans to have dedicated service hours for these smaller lenders after the portal fully re-opens next week.

If eligible PPP credit unions experience any issues or concerns with the loan portal, please email Jeremy Empol or Lisa Quaranta.

Latest From the CFPB
The Consumer Financial Protection Bureau (CFPB) has issued a small entity compliance guide summarizing its October 2020 debt collection rule. The guide is available here.

President-Elect Joe Biden has announced that Rohit Chopra will serve as director of the Consumer Financial Protection Bureau. Currently, Chopra is a commissioner on the Federal Trade Commission (FTC) and previously served as assistant director of the CFPB, where he led the agency’s efforts on student loans.

This week’s Regulatory Alert (21-RA-01) issued by the CFPB states that the bureau published two final rules in the Federal Register on Dec. 29 amending the Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule) within Regulation Z:

• General QM Final Rule: Replaces the existing 43 percent debt-to-income (DTI) ratio limit with price-based thresholds.
• Seasoned QM Final Rule: Creates a new category of qualified mortgage.
  
  

Both final rules are effective on March 1, 2021. For the General QM Final Rule, the mandatory compliance date is July 1, 2021. You can read more here.

The CFPB has issued a final rule adding a new exemption from the requirement to establish escrow accounts for certain higher-priced mortgage loans. You can access the final rule here. The bureau has also provided an unofficial redline showing changes to the regulation and official interpretations, as well as an updated Small Entity Compliance Guide and executive summary (resources available here).

Latest From the FHFA
The Federal Housing Finance Agency (FHFA) announced this week that Fannie Mae and Freddie Mac will extend several loan origination flexibilities until Feb. 28 to ensure continued support for mortgage borrowers during the COVID-19 pandemic.

Also, the FHFA announced that Fannie Mae and Freddie Mac will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until Feb. 28. The foreclosure moratorium applies to GSE-backed, single-family mortgages. The REO eviction moratorium applies to properties that have been acquired by a GSE through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on Jan. 31.

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