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Minutes of the Financial Stability Oversight Council
May 14, 2020
Steven T. Mnuchin, Secretary of the Treasury and Chairperson of the Financial Stability
Oversight Council (Council)
Jerome H. Powell, Chairman, Board of Governors of the Federal Reserve System (Federal
Jelena McWilliams, Chairman, Federal Deposit Insurance Corporation (FDIC)
Jay Clayton, Chairman, Securities and Exchange Commission (SEC)
Heath P. Tarbert, Chairman, Commodity Futures Trading Commission (CFTC)
Kathleen Kraninger, Director, Consumer Financial Protection Bureau (CFPB)
Mark Calabria, Director, Federal Housing Finance Agency (FHFA)
Joseph Otting, Comptroller of the Currency, Office of the Comptroller of the Currency (OCC)
Rodney Hood, Chairman, National Credit Union Administration (NCUA)
Thomas E. Workman, Independent Member with Insurance Expertise
Dino Falaschetti, Director, Office of Financial Research (OFR), Department of the Treasury
(non-voting member)
Steven Seitz, Director, Federal Insurance Office (FIO), Department of the Treasury (non-voting
Charles G. Cooper, Commissioner, Texas Department of Banking (non-voting member)
Eric Cioppa, Superintendent, Maine Bureau of Insurance (non-voting member)
Melanie Lubin, Securities Commissioner, Maryland Office of the Attorney General, Securities
Division (non-voting member)
Department of the Treasury (Treasury)
Justin Muzinich, Deputy Secretary of the Treasury
Brent McIntosh, Under Secretary for International Affairs
Brian Callanan, General Counsel
Bimal Patel, Assistant Secretary for Financial Institutions
Howard Adler, Deputy Assistant Secretary for the Council
Eric Froman, Assistant General Counsel (Banking and Finance)
Stephen Ledbetter, Director of Policy, Office of the Financial Stability Oversight Council, and
Executive Director of the Council
Board of Governors of the Federal Reserve System
Randal Quarles, Vice Chairman for Supervision
Andreas Lehnert, Director, Division of Financial Stability
Federal Deposit Insurance Corporation
Travis Hill, Deputy to the Chairman for Policy


Securities and Exchange Commission
Jeffrey Dinwoodie, Chief Counsel/Senior Policy Advisor for Market and Activities-Based Risk
Commodity Futures Trading Commission
Jaime Klima, Chief of Staff and Chief Operating Officer
Consumer Financial Protection Bureau
Thomas Pahl, Policy Associate Director
Federal Housing Finance Agency
Sandra Thompson, Deputy Director, Division of Housing Mission and Goals
John Roscoe, Chief of Staff, Office of the Director
Comptroller of the Currency
Brian Brooks, Senior Deputy Comptroller of the Currency and Chief Operating Officer
National Credit Union Administration
Andrew Leventis, Chief Economist
Office of the Independent Member with Insurance Expertise
Charles Klingman, Senior Policy Advisor
Federal Reserve Bank of New York
John Williams, President and Chief Executive Officer
Sandra Lee, Senior Vice President
Office of Financial Research
Alexander Pollock, Principal Deputy Director for Research and Analysis
Federal Insurance Office
Bruce Saul, Senior Insurance Regulatory Policy Analyst
Texas Department of Banking
Michael Townsley, Policy Counsel, Conference of State Bank Supervisors (CSBS)
Maine Bureau of Insurance
Mark Sagat, Assistant Director, Financial Policy and Legislation, National Association of
Insurance Commissioners
Maryland Office of the Attorney General, Securities Division
Vincente Martinez, General Counsel, North American Securities Administrators Association


Update on Nonbank Mortgage Liquidity Task Force
• Brian Montgomery, Federal Housing Commissioner, Federal Housing Administration,
Department of Housing and Urban Development
• Seth Appleton, Principal Executive Vice President, Government National Mortgage
Association, and Assistant Secretary for Policy Development and Research, Department
of Housing and Urban Development
Executive Session
The Chairperson called the executive session of the meeting of the Council to order at
approximately 2:03 P.M. The Council convened by conference call.
The Chairperson began by outlining the meeting agenda, which had previously been distributed
to the members together with other materials. The agenda for the executive session of the
meeting included (1) an update on the Council’s Nonbank Mortgage Liquidity Task Force, (2)
COVID-19, and (3) a vote on the minutes of the Council’s meeting on March 26, 2020.
1. Update on Nonbank Mortgage Liquidity Task Force
The Chairperson introduced the first agenda item, an update on the Council’s Nonbank Mortgage
Liquidity Task Force. He introduced Brian Montgomery, the Federal Housing Commissioner at
the Federal Housing Administration (FHA) within the Department of Housing and Urban
Development, and Seth Appleton, Principal Executive Vice President of the Government
National Mortgage Association (Ginnie Mae) and Assistant Secretary for Policy Development
and Research at the Department of Housing and Urban Development.
Mr. Appleton began by describing actions Ginnie Mae had taken with respect to mortgage
forbearance. He described data regarding the volume of delinquent payments and new reporting
requirements to track loans in forbearance. He noted potential risks from an increase in required
advances arising from forbearance relief, and actions Ginnie Mae was taking to address those
risks. He also described further steps that Ginnie Mae may take, including coordination among
relevant regulators.
Mr. Montgomery then provided an update regarding actions by FHA. He described the markets
for FHA-backed mortgages and securitizations of those mortgages. He noted that tightening
credit markets had affected FHA borrowers, and he described uncertainties related to potential
market developments. He also noted that FHA received input regularly from market
participants. Finally, he described steps FHA is taking to monitor mortgage markets.
Mark Calabria, Director of the FHFA, then described market developments related to servicing
advances and warehouse lending. He noted that nonbank mortgage servicers’ liquidity had
increased since March 2020, and he described the FHFA’s efforts to monitor mortgage servicer
liquidity. He also described developments related to forbearance rates. He noted that the FHFA

had announced that once a servicer had advanced four months of missed payments on a loan, the
servicer would have no further obligation to advance scheduled payments. He also noted that the
FHFA had recently announced an extension of eviction moratoriums.
Members of the Council then had a discussion, including regarding agencies’ actions to share
information and monitor mortgage markets.
2. COVID-19
The Chairperson then introduced the next agenda item, Coronavirus Disease 2019 (COVID-19).
He noted the continued sense of urgency to respond to the COVID-19 outbreak. He stated that
Treasury was working with the Federal Reserve in the establishment of 11 facilities under
section 13(3) of the Federal Reserve Act, and with the Small Business Administration in the
implementation of the Payroll Protection Program. He also cited Treasury’s payments to state,
local, and tribal governments under the Coronavirus Aid, Relief, and Economic Security Act.
Council members then provided updates regarding their agencies’ efforts to respond to the
COVID-19 outbreak. Council members described market developments, including in securities
and commodity markets. It was noted that capital markets were functioning well, but that
Council member agencies continued to monitor areas of volatility. Council members also noted
potential exposures of banks, and described a number of rulemakings, guidance, and other
actions they had taken related to banking institutions. Council members also described
developments in the mortgage market; issues related to mortgage forbearance and debt
collection; and impacts of COVID-19 on insurers. In addition, Council members highlighted
ongoing coordination among regulators to monitor and respond to recent developments.
3. Resolution Approving the Minutes of the Meeting Held on March 26, 2020
BE IT RESOLVED, by the Financial Stability Oversight Council (the “Council”), that the
minutes attached hereto of the meeting held on March 26, 2020 of the Council are hereby
The Chairperson asked for a motion to approve the resolution, which was made and seconded.
The Council approved the resolution by unanimous vote.
The Chairperson adjourned the meeting at approximately 2:57 P.M.