FRIDAY3pt SEPTEMBER stroke, 100% 3 size, 2021 for topVOL. of newspaper186 No. 170 = 8.9931 inches AMERICANBANKER.COM Follow us on Twitter @AmerBanker Scope of CFPB small-business 5 loan data requirements worries banks Deadline dash The agency proposed reporting standards for any institution that originates 25 or more Lots of people don't know when bills are due, driving a 2.5pt stroke = 6.75 inches small-business loans a year. The measure market for last-minute walk-in payments for cash-reliant would be especially burdensome for very consumers small lenders and could limit credit access in See story on page 4 underserved communities, critics say. Page 6 Apple is rolling out digital ID. 50% Will banks use it? 2pt stroke = 5.75 inches 6 48% The tech giant’s integration of state-issued 40% 45% identification with its Wallet app could transform the way banks and credit unions 30% handle identity verification. But Apple hasn’t stated what its terms will be. Page 7 1.5pt stroke = 4.6667 inches 20% Robinhood plans early-deposit 7 feature that rivals PayPal 10% Robinhood Markets is working on a new feature that lets users receive their paychecks 8% 0% 1pt stroke = 3 inches via direct deposit up to two days early, Certain of bill due datesNot sure when bills are dueNo idea when bills are due stepping up competition with companies like PayPal Holdings and Wealthfront. Page 8 Source: PayNearMe Google Pay to offer time 8 deposits to Indian users via lender dailybriefing Cash not only survived Google has tied up with an Indian small lender 3 the pandemic — it came to offer time deposits to users of its payments out stronger wallet, extending its presence in the nation’s Biden administration sets The shift away from human contact lucrative digital banking space. Page 8 1 goal of adding 100K affordable increased the popularity of kiosks, ATMs housing units and other technologies that allow for more Wells Fargo pushes back The White House and the Federal Housing flexibility in payment methods. 9 its return to office by two Finance Agency announced steps to (See chart above.) Page 4 more weeks help nonprofits and public agencies The company will now begin bringing back buy foreclosed properties, among other Gulf Coast bankers assess staffers who have been working remotely initiatives, as part of a plan to boost supply 4 toll after Hurricane Ida on Oct. 18, rather than Oct. 4, according to over the next three years. Page 2 Banks in Louisiana and Mississippi are an internal memo Wednesday from Chief finding less physical branch damage than Operating Officer Scott Powell. Page 9 What Microsoft’s Azure many expected. Executives say the pace 2 cloud security vulnerabilities of the recovery will hinge on how quickly Regulators are rethinking mean for banks power and water are restored, as well as the 10 bank M&A rules. It’s Though banks were not directly affected by cost of supplies and labor. Page 5 about time. security flaws discovered in Azure systems If the Justice Department and other last week, they need to be aware of the kinds agencies are serious about overhauling the of misconfigurations that could lead to bank merger process, they need to start by massive data breaches. Page 3 establishing whether consolidation helps or hurts consumers, legal analyst John M. Pachkowski writes. Page 9 FRIDAY SEPTEMBER 3, 2021 AMERICANBANKER.COM PAGE 2 properties backed by Fannie and Freddie. allow state housing finance agencies to AFFORDABLE HOUSING The period during which occupants, public offer low-cost capital for affordable housing entities and nonprofits can purchase real- production, the White House said. estate-owned properties will be extended The administration also announced Biden admin- from 20 to 30 days. After that period, those several strategies to combat exclusionary properties are available for investors to zoning, which many stakeholders have istration sets purchase. The FHA will also extend its first- long-argued is the number one barrier to look period to 30 days. building affordable housing. As part of that “Extending the amount of time owner endeavor, FHFA is preparing a report on goal of adding occupants have to bid on a REO property, how concentrated Fannie and Freddie’s without competition is especially important mortgage purchases are in areas with 100K afford- for neighborhood preservation while the exclusionary zoning policies. That study supply of homes for sale is severely limited,” will also offer data on the demographic said Sandra Thompson, the acting director characteristics of borrowers whose loans are able housing of the FHFA, in a statement. backed by the GSEs. The Department of Housing and Urban HUD is also creating a “housing supply units Development will also launch efforts to toolkit” that will offer strategies for expand its outreach to nonprofits and local successfully deploying grants in order to By Hannah Lang governments to “further educate” them address housing affordability challenges. September 01, 2021 on the process for bidding on real-estate- “Moving forward, HUD and the Biden- WASHINGTON — The Bidenowned properties. Harris Administration will continue to administration on Wednesday announced As part of the Biden administration’s pursue bold actions to create and preserve several efforts across the government aimed efforts, the Treasury Department will also affordable homes for all Americans,” said at increasing the affordable housing supply. issue “a notice of funding availability” HUD Secretary Marcia Fudge in a statement. The White House said the goal of the for the Capital Magnet Fund, a program Additionally, the Biden administration new initiatives is to make 100,000 new units financed through contributions from Fannie said it would conduct “peer learning and available for both homeowners and renters and Freddie that makes grants available to listening sessions” in conjunction with HUD over the next three years. The steps include nonprofits and community development and FHFA to “allow for the exchange of more financing for manufactured homes financial institutions to facilitate the best practices” on zoning reform to combat and two-to-four unit properties, as well as production of affordable housing. housing supply and affordability challenges. working with state and local governments to That notice from Treasury will also “The sessions will also identify the reform arcane zoning restrictions. “include changes to strongly encourage obstacles to implementation that The administration also said that affordable housing production,” the White remain, which the president’s Build Back nonprofits and individuals will get House said. Better Agenda and potentially federal preference over investors in acquiring Treasury will also restart the partnership administrative action, can help address,” the foreclosed properties that had been insured between its Federal Financing Bank and White House said. by the Federal Housing Administration. HUD’s risk sharing program, which was “President Biden is committed to using suspended in 2019. That partnership will every tool available in government to produce more affordable housing supply as quickly as possible, and to make supply Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 available to families in need of affordable, Phone 212-803-8200 AmericanBanker.com quality housing — rather than to large 3pt stroke, 100% size for top of newspaper = 8.9931 inches investors,” the White House said in a press Editor in Chief Alan Kline 571.403.3846 Copy Editor Neil Cassidy 212.803.8440 release. 2.5pt stroke = 6.75 inches In line with the administration’s Managing Editor Dean Anason 770.621.9935 Reporters/Producers announcement, the Federal Housing 2pt stroke = 5.75 inches Finance Agency said effective immediately, Executive Editor Bonnie McGeer 212.803.8430 Laura Alix 860.836.5431, Kate Berry 562.434.5432 Fannie Mae and Freddie Mac will be Miriam Cross 571.403.3834 1.5ptWashington stroke = 4.6667 inches Bureau Chief Joe Adler 571.403.3832 permitted to each invest up to $850 million Jim Dobbs 605.310.7780 annually in the Low-Income Housing Tax 1ptExecutive stroke = 3 inches Editor, Technology Credit market as equity investors. Previously, Penny Crosman 212.803.8673 John Heltman 571.403.3847, Allissa Kline 716.243.2679 the government-sponsored enterprises were Hannah Lang 571.403.3855 limited to investing $500 million each. Community Banking Editor Paul Davis 336.852.9496 John Reosti 571.403.3864, Gary Siegel 212.803.1560 FHFA also said that it would lengthen Contributing Editor Daniel Wolfe 212.803.8397 the “first-look period” that gives certain Kevin Wack 626.486.2341 parties an advantage in buying foreclosed For up to date and complete coverage go to AmericanBanker.com FRIDAY SEPTEMBER 3, 2021 AMERICANBANKER.COM PAGE 3 so-subtle warning to banks about cloud developers can easily build professional CYBERSECURITY configurations that could be exploited applications. to gain access to seemingly protected An analyst at the security firm UpGuard databases. found a faulty data application programming What Because banks continue to transition parts interface that led to more than 1,000 apps in of legacy systems to cloud-based services, the Power Apps portal being susceptible to Microsoft’s they increasingly operate or integrate with anyone who would request access to data the top cloud providers, mainly Amazon and personal records. Web Services, Microsoft Azure and Google In both cases, security researchers worked Azure cloud Cloud. with Microsoft under its vulnerability “With many firms using the same disclosure program. security suppliers, the financial sector faces an Microsoft assured its customers it reacted additional challenge of concentration quickly to both vulnerabilities — the access risk,” said Teresa Walsh, global head of to keys in Azure and the misconfigured API vulnerabilities intelligence for the Financial Services in Power Apps — that allow unauthorized Information Sharing and Analysis Center, a users into secured databases.