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10/8/2020

Federal Reserve Board - Agencies issue two final rules

Joint Press Release
September 29, 2020

Agencies issue two final rules
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For release at 12:00 p.m. EDT
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The federal bank regulatory agencies finalized two rules, which are either identical or substantially similar to
interim final rules currently in effect and issued earlier this year. They include:
A final rule that temporarily defers appraisal and evaluation requirements for up to 120 days after the
closing of certain residential and commercial real estate transactions; and
A final rule that neutralizes—due to the lack of credit and market risk—the regulatory capital and
liquidity effects for banks that participate in certain Federal Reserve liquidity facilities.
The final rule temporarily deferring appraisal and evaluation requirements is substantially similar to the interim
final rule issued in April. It will allow individuals and businesses to more quickly access real estate equity to
help address needs for liquidity as a result of the coronavirus. In response to comments, the final rule clarifies
which loans are subject to the deferral. The final rule is effective upon publication in the Federal Register and
will expire on December 31, 2020.
The final rule pertaining to Federal Reserve liquidity facilities adopts without change three interim final rules
issued in March, April, and May, 2020. Earlier this year, the Federal Reserve launched several lending
facilities to support the economy in light of the coronavirus response. The final rule neutralizes the regulatory
capital and liquidity coverage ratio effects of participating in the Money Market Mutual Fund Liquidity Facility
and Paycheck Protection Program Liquidity Facility because there is no credit or market risk in association
with exposures pledged to these facilities. As a result, the final rule will support the flow of credit to
households and businesses affected by the coronavirus. The effective date of this final rule is 60 days after
the date of publication in the Federal Register.

Federal Register notice: Real Estate Appraisals (PDF)
Federal Register notice: Treatment of Certain Emergency Facilities in the Regulatory Capital
Rule and the Liquidity Coverage Ratio Rule (PDF)

Media Contacts:
Federal Reserve Board
FDIC
OCC

Eric Kollig
Julianne Fisher Breitbeil
Stephanie Collins

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200929a.htm

(202) 452-2955
(202) 898-6895
(202) 649-6870
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10/8/2020

Federal Reserve Board - Agencies issue two final rules

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