The Structured Finance Association (SFA) today applauded the House Financial Services Committee adopting and favorably reporting the Adjustable Interest Rate (LIBOR) Act of 2021 (H.R. 4616) to the full House of Representatives by voice vote. The legislation will ease the transition away from the London Inter-Bank Offered Rate (LIBOR), which is the benchmark index currently used, for example, to determine the interest rate that consumers pay on some credit cards, home equity lines of credit, reverse mortgages, and private student loans.

In a letter to leaders of the House Financial Services Committee, the Structured Finance Association (SFA) was joined by other leading financial services industry groups in announcing support for the Adjustable Interest Rate (LIBOR) Act of 2021, which the committee is scheduled to vote on today.

Sandee Barrick was making a six-figure salary as a salesperson when she quit her job in December 2019 to move to North Carolina. She had planned to return to work as soon as she got settled, but she was still enrolling her younger son in school and switching over her driver’s license and registration when the coronavirus pandemic hit and everything shut down

On July 21, the Alternative Reference Rates Committee (ARRC) announced recommended conventions and use cases in relation to forward-looking SOFR Term Rates. The recommendations support the use of SOFR Term Rates for (i) bilateral business loans and (ii) certain securitizations with underlying assets that are themselves tied to SOFR Term Rates and where those assets cannot easily reference other forms of SOFR

On July 21, SFA CEO Michael Bright testified at a House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets hearing entitled, “Bond Rating Agencies: Examining the ‘Nationally Recognized’ Statistical Rating Organizations” (NRSROs).

Corporate America: We need to talk about your Employee Resource Groups (ERGs). We became familiar with ERGs when many welcomed us to speak on the gender and racial justice themes we write about in our books. As one of the most powerful trends in the U.S. workplace, ERGs are a way for underrepresented groups to band together to help recruit more talent like them into their companies and make sure that talent feels supported and gets promoted.

On July 20, in a joint statement the Office of the Comptroller of the Currency (OCC), Federal Reserve, and Federal Deposit Insurance Corporation announced plans for interagency rulemaking to modernize the Community Reinvestment Act (CRA).

On Wednesday, July 21 at 2:00 p.m. ET, Structured Finance Association (SFA) CEO Michael Bright will testify at a House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets hearing entitled, “Bond Rating Agencies: Examining the ‘Nationally Recognized’ Statistical Rating Organizations.”

Now that there is clarity around the structure of the FHFA, and as the president considers installing a new permanent director, an opportunity arises for the next evolution in housing finance policy. But success for either Acting Director Sandra Thompson — who, by all accounts, will bring a steady hand — and whomever comes next, will rely on steady leadership and a willingness to learn from dynamics of the past.

This week’s Research Corner examines how Hertz raised $4 billion through two ABS offerings from its new term ABS shelf, Hertz Vehicle Financing III.