Dodd Frank Update - Daily News

Midyear stress test results due to FRB July 5

Mon, 20 May 2013 13:48:16 GMT

Eighteen large U.S. bank holding companies are required to submit the results of their company-run, midyear stress tests to the Federal Reserve on July 5, the Federal Reserve said in instructions to those firms May 13. Read on for the details and a link to the instructions.

Corday confirmation showdown expected this week

Mon, 20 May 2013 13:44:16 GMT

The top Democrat in the U.S. Senate reportedly plans to call for a vote this week to confirm Richard Cordray to continue leading the Consumer Financial Protection Bureau. Republicans vowed to block Cordray’s confirmation, but could Senate majority leader Harry Reid be setting the stage for a “nuclear” rule change that would allow Democrats to sidestep a GOP filibuster? Read on for the details.

CFTC finalizes long-delayed swap execution facility rules

Mon, 20 May 2013 13:41:21 GMT

A divided Commodity Futures Trading Commission voted to adopt numerous rules representing some of the final important building blocks in the agency’s new regulatory regime for swaps. Commission Chairman Gary Gensler said the final rules pertaining to minimum block sizes for swaps, and requirements for regulated swaps trading platforms known as swap execution facilities, will “make public transparency in the swaps market a reality.” However, Republican commissioners voiced concern over the final rules. The rules were also immediately lampooned by some industry participants. Read on for the details.

CFPB en Español website to serve 50M Latinos

Mon, 20 May 2013 13:39:18 GMT

The Consumer Financial Protection Bureau launched a Spanish language website to provide a resource for financial education to over 50 million Latinos in the United States, including 37 million who speak primarily Spanish at home. Read on for more and to hear what Richard Cordray had to say about the CFPB’s efforts to end “bait and switch” schemes designed to deliberately exploit those who speak a foreign language.

CFPB employs YouTube to explain mortgage rules

Mon, 20 May 2013 13:35:22 GMT

The Consumer Financial Protection Bureau launched a series of video presentations via YouTube to explain the new mortgage rules. The agency said the goal is to make the information more accessible to industry participants. Read on for the details.

Final escrow rule amendments leave ‘rural’ definition unchanged, for now

Mon, 20 May 2013 13:33:45 GMT

The Consumer Financial Protection Bureau finalized a rule clarifying that certain protections applicable to higher-priced mortgage loans will not expire prior to the effective date for the bureau’s new ability-to-repay/qualified mortgage rule. The May 16 changes to the CFPB’s January escrow rule for HPMLs also clarify how to determine whether a county is considered “rural” or “underserved” for purposes of applying certain important exemptions set forth under the CFPB’s new mortgage rules. Read on for the details.

Ohio MBA live coverage: Mortgage industry has issues to spare

Wed, 15 May 2013 11:49:34 GMT

A host of burgeoning national and regional issues could give rise to numerous opportunities, risks and a great deal of uncertainty in the mortgage industry in the coming months and years, according to experts and industry leaders at the Ohio Mortgage Bankers Association Annual Convention in Columbus, Ohio. Dodd Frank Update was on hand as industry stakeholders discussed the mortgage implications of everything from federal monetary and fiscal policy to Ohio’s oil and natural gas boom. Read on to learn about some of the issues that are driving the mortgage debate in the Buckeye State and beyond.

Senators challenge regulators on credit reporting issues

Wed, 15 May 2013 11:45:11 GMT

Lawmakers on the U.S. Senate Subcommittee on Consumer Protection, Product Safety and Insurance pressured the Consumer Financial Protection Bureau and Federal Trade Commission to take additional steps to ensure that consumers are not harmed by credit reporting inaccuracies. Lawmakers also voiced concern about the usefulness of the error resolution strategies that are available to consumers who find an error and the steps credit bureaus and their information furnishers take to ensure that corrected errors don’t crop up on future reports.

Duke suggests ways to mitigate credit tightening under QM

Wed, 15 May 2013 11:36:42 GMT

Federal Reserve Board Governor Elizabeth Duke said aspects of the ability-to-repay rule and qualified mortgage standards may make credit access difficult for homebuyers with low credit scores, but offered some solutions for both lenders and regulators on possible ways to mitigate what she calls the “murky” path to easier credit conditions. Read on to learn what she sees as the effects of the QM rulemaking on access to credit and what she sees as a possible cure.

Curry touts OCC approach to improving examinations

Wed, 15 May 2013 11:29:11 GMT

Comptroller of the Currency Thomas Curry said the new rules flowing out of the Dodd-Frank Act are crucial to safety and soundness, but equally important are the “boots on the ground” seasoned professionals who “bring the benefit of sound judgment and a careers-worth of experience to their work.” Read on to learn what Curry had to say about the OCC’s efforts to restore credibility to bank supervision.

Would your marketing agreements pass a CFPB review? – Free Article

Wed, 15 May 2013 11:25:04 GMT

Much has changed in the way of marketing agreements in the past decade. With the Consumer Financial Protection Bureau (CFPB) at the helm, new regulations, an interpretive rule and the volatilities of the market, title insurance, mortgage, real estate and settlement services professionals need to be on alert with how they are structuring marketing agreements. Industry members should also be aware of where the market is headed in terms of business partnerships, alliances and other types of arrangements.

CFTC to consider pre-trade transparency rulemakings

Wed, 15 May 2013 11:15:44 GMT

The Commodity Futures Trading Commission this week is expected to consider long-delayed Dodd-Frank rules intended to promote pre-trade transparency in the swaps market. The commission will consider swaps block rules, the swap execution facility rule and the ‘made available to trade’ rule on May 16. Read on for the details.

CFPB advocates strike back in fight over Cordray nomination

Fri, 10 May 2013 20:25:24 GMT

Consumer advocates are ratcheting up the pressure on Senate Republicans who vowed to block Richard Cordray’s nomination to continue leading the Consumer Financial Protection Bureau. Public interest groups collected thousands of signatures on a petition urging GOP lawmakers to permit a vote on the nomination. Numerous news outlets also threw their support behind Cordray and the CFPB. Read on for the details.

WINDWARD is corporate sponsor of ‘Make a Child Smile’ Bike-Building Charity Event

Fri, 10 May 2013 20:23:37 GMT

October Research LLC, publisher of Dodd Frank Update, is pleased to announce that WINDWARD CONSULTING | SOFTWARE LLC is once again the corporate sponsor of the annual “Make a Child Smile” Bike-Building Charity Event at the National Settlement Services Summit.

CFPB to delay portion of LO Comp final rule

Fri, 10 May 2013 20:21:31 GMT

The Consumer Financial Protection Bureau plans to delay the compliance date for a provision of its loan originator compensation final rule that prohibits creditors from financing premiums for credit insurance products in connection with certain consumer credit transactions secured by a dwelling. While most of the loan originator compensation rule will take effect in January 2014, the ban related to financing credit insurance would have taken effect on June 1. Read on to learn why the CFPB is seeking the delay.

Many rural banks not rural enough for CFPB rules, ICBA survey finds

Fri, 10 May 2013 20:19:46 GMT

The Consumer Financial Protection Bureau’s ability-to-repay/qualified mortgage rule would restrict rural borrowers’ access to credit, according to the results of a community bankers’ survey conducted by the Independent Community Bankers of America. The advocacy group indicated the survey provides further evidence that the CFPB should reconsider the scope of certain exemptions intended to ensure that rural lenders can continue to originate balloon payment loans. Read on for the details of the ICBA’s survey.

CFPB warns student loan debt could impact broader economy

Fri, 10 May 2013 20:18:08 GMT

Student loan debt is taking a toll on individual borrowers and could ultimately impact the broader economy, a new report from the Consumer Financial Protection Bureau determined. The report discusses several policy options the bureau hopes will inform the ongoing discussion over how to help borrowers better manage their private student loan debt. Read on to learn about the report.

CSBS: Fed foreign bank proposal could interfere with state regulation

Fri, 10 May 2013 20:14:47 GMT

State banking regulators urged the Federal Reserve to rethink portions of a proposed rule that would impose enhanced prudential standards on large foreign banking organizations with operations in the United States. The Conference of State Bank Supervisors said the rules would have a direct impact on state banking departments that supervise offices of FBOs. Read on for the details.

Swaps bills clear House Financial Services Committee

Fri, 10 May 2013 20:12:35 GMT

The U.S. House Financial Services Committee reported nine bills to the House, including several bills that would amend certain Dodd-Frank Act swaps provisions. Read on to learn about the bills, including a measure that would exempt inter-affiliate trades from Dodd-Frank’s margin, clearing and reporting requirements.

Fannie, Freddie will only purchase QMs, FHFA says

Tue, 07 May 2013 17:54:48 GMT

The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to limit their future mortgage acquisitions to loans that meet the requirements for a qualified mortgage, including those that meet the Consumer Financial Protection Bureau’s special or temporary QM definition, and loans that are exempt from Dodd-Frank’s ability-to-repay requirements. Read on for the details.

CFTC issues no action letters on external business conduct standards rules

Tue, 07 May 2013 17:53:22 GMT

The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight released three no-action letters delaying compliance for certain Dodd-Frank swaps requirements that would have taken effect on May 1. One such letter provides swap dealers with temporary, conditional relief from certain external business conduct standards rules in the context of prime brokerage arrangements. Read on for the details.

CFPB takes debt-relief companies to court

Tue, 07 May 2013 17:51:49 GMT

The Consumer Financial Protection Bureau filed a complaint in a federal district court in New York against two debt-relief service providers that allegedly charged consumers illegal advance fees for debt-settlement services. The bureau is seeking to halt the operations and to obtain both penalties and relief for victims. Read on for the details.

ABA: Rule exemptions shouldn’t just be for ‘rural’ and ‘underserved’ banks

Tue, 07 May 2013 17:49:58 GMT

The American Bankers Association told the Consumer Financial Protection Bureau that certain mortgage rule exemptions for small creditors that operate in rural and underserved areas should be available to more community banks that hold covered loans in portfolio, regardless of where those banks are located. The ABA’s comments came in response to a CFPB proposal that sought to clarify elements of the bureau’s new escrow rule. Read on for the details.

New York plans to sue BofA, Wells Fargo over alleged mortgage settlement violations

Tue, 07 May 2013 17:48:20 GMT

New York State’s attorney general is preparing to sue Bank of America and Wells Fargo for alleged violations of a 2012 settlement with state AGs that required the nation’s five largest mortgage servicing banks to comply with a set of servicing standards. New York AG Eric Schneiderman said Bank of American and Wells Fargo “flagrantly violated” the National Mortgage Settlement. Read on for the details.

Fed’s Tarullo: Additional steps needed to address too-big-to-fail concerns

Tue, 07 May 2013 17:46:30 GMT

Dodd-Frank and Basel III are helping to address the issues that led to the financial crisis, yet vulnerabilities remain and additional regulatory steps are likely warranted, Federal Reserve Governor Daniel Tarullo said. Read on to learn what actions Tarullo said regulators should consider to address vulnerabilities in the short-term wholesale funding markets and the continuing problem of too-big-to-fail.

Heading for Columbus? Ohio MBA convention to focus on CFPB compliance

Fri, 03 May 2013 20:16:41 GMT

There’s strength in numbers, and nowhere is that more apparent than at a major national convention. However, the real estate and mortgage industries are inherently local and there’s no better place to get a feel for what’s really happening on the ground in these industries than at a state convention. Next week, Dodd Frank Update will head to Columbus, Ohio, for the Ohio Mortgage Bankers Association Annual Convention. Read on to find out what topics are driving the mortgage debate in the Buckeye State.

CFPB finalizes stay-at-home spouse CARD Act rule

Fri, 03 May 2013 20:14:31 GMT

The Consumer Financial Protection Bureau finalized rule revisions intended to ensure that stay-at-home spouses have access to credit cards. The amendments came after consumer advocates argued that current rules requiring issuers to consider individual rather than household income unfairly impact stay-at-home parents who may seek to obtain a credit card in their own name. Read on to learn about the final rule and how the CFPB responded to suggestions from the banking industry.

CFPB releases compliance guides for high-cost mortgage, appraisal rules

Fri, 03 May 2013 20:12:09 GMT

The Consumer Financial Protection bureau released small entity compliance guides for three more of its January rulemakings. The guides cover the bureau’s Home Ownership and Equity Protection Act rule, and rules pertaining to lender-furnished appraisals and appraisals for higher-priced mortgages. Read on to learn about the guides and for links to all the mortgage regulation compliance guides released by the CFPB so far.

SEC proposes cross-border rules, reopens rulemaking comment periods

Fri, 03 May 2013 20:07:57 GMT

The Securities and Exchange Commission voted to propose rules and interpretive guidance for parties to cross-border security-based swap transactions. The commission also voted to reopen the public comment period for all rules not yet finalized, stemming from Title VII of the Dodd-Frank Act. Read on for the details.

U.S. House Democrat nominated to lead FHFA

Fri, 03 May 2013 20:00:51 GMT

President Barack Obama tapped veteran U.S. House Democrat Mel Watt to be the permanent leader of the Federal Housing Finance Agency. The president’s announcement comes amid mounting tension over the FHFA’s stance on principle write-downs under acting Director Edward DeMarco. It also comes at a key moment for the FHFA, which is under pressure to hasten the wind down of government sponsored enterprises Fannie Mae and Freddie Mac.

CFPB releases amended remittance transfer rule, sets compliance date

Fri, 03 May 2013 19:58:01 GMT

The Consumer Financial Protection Bureau finalized amendments intended to address compliance concerns related to international remittance transfer rules finalized in 2012. Certain fee disclosures required under the previously-released final rules are made optional by the new final rule. The bureau also made important changes to the 2012 rules’ error resolution requirements. Read on to learn about the final rule and when institutions will be required to comply with the CFPB’s complete set of money transfer requirements.

Regulatory relief bill would amend key Dodd-Frank mortgage provisions

Fri, 03 May 2013 19:56:05 GMT

A U.S. House Republican introduced legislation intended to lighten community institutions’ regulatory burden. The bill would broaden certain community bank exemptions set forth under Title XIV of the Dodd-Frank Act. Read on to learn how the measure would impact the scope of the Consumer Financial Protection Bureau’s qualified mortgage definition.

OCC’s DuChene outlines 5 Es of an effective risk culture

Tue, 30 Apr 2013 18:41:54 GMT

Regulators and bankers made significant progress as they worked to bolster controls, risk management capabilities and capital and liquidity standards in the wake of the financial crisis. However, the Office of the Comptroller of the Currency’s top operational risk supervisor recently suggested that additional attention should be paid to promoting institutions’ risk cultures. Read on to learn what Carolyn DuChene, OCC deputy comptroller for Operational Risk, identified as some of the hallmarks of an effective risk culture.

CFPB may be bending on ‘rural’ definition

Tue, 30 Apr 2013 18:39:38 GMT

When the Federal Reserve first released a proposal intended to implement Dodd-Frank’s ability-to-repay/qualified mortgage provisions, the mortgage industry was quick to highlight major issues such as the scope of the QM definition. However, other key provisions received a burst of public attention after the CFPB issued its final ATR/QM rule in January. Read on to learn about the continuing debate over an important exemption for institutions in rural and underserved areas.

CFPB unveils penalty fund rulemaking

Tue, 30 Apr 2013 18:37:52 GMT

The Consumer Financial Protection Bureau released final rules governing a Dodd-Frank-mandated penalty fund used to pay consumers who fall victim to law breaking companies. Money from the fund will also be used to promote consumer education and financial literacy programs. Read on to learn about the rule and some rule amendments proposed by the bureau.

Government to survey borrowers as part of mortgage database project

Tue, 30 Apr 2013 18:32:51 GMT

The Federal Housing Financial Agency plans to survey thousands of borrowers each year as part of its effort to build and maintain a government database of mortgage information. The FHFA, which is partnering with the Consumer Financial Protection Bureau to build the forthcoming National Mortgage Database, said the surveys would help regulators obtain critical information that is not available from existing sources. Read on to learn about the FHFA’s plan.

Government asks Supreme Court to take up recess appointment case

Tue, 30 Apr 2013 18:29:30 GMT

The government is asking the U.S. Supreme Court to review an appellate court decision that invalidated President Barack Obama’s 2012 recess appointments to the National Labor Relations Board. Richard Cordray was recess appointed to his position as head of the Consumer Financial Protection Bureau in the same manner as the NLRB appointees, and while Cordray is not mentioned in the case, the Supreme Court’s response could have an effect on his appointment as well. Read on for the details.

Rep. Waters wants FSOC to review derivatives bills

Tue, 30 Apr 2013 18:25:11 GMT

The top Democrat on the U.S. House Financial Services Committee wants the Financial Stability Oversight Council to weigh in a set of bills that would amend Title VII of the Dodd-Frank Act. Read on to learn why the lawmaker believes such a review is needed.

Mortgage banker and world-wide ‘edutainer’ to deliver powerful keynotes

Tue, 30 Apr 2013 18:21:24 GMT

October Research LLC, publisher of Dodd Frank Update, is pleased to announce it has selected a high-profile mortgage banker and a world-renowned business author to deliver keynotes at the 2013 National Settlement Services Summit, to be held in Cleveland, Ohio, June 10-12 at the Marriott at Key Center. Read on to learn about these featured speakers.

CFPB ‘final’ rules may not be that final yet

Fri, 26 Apr 2013 18:51:14 GMT

Make no mistake, the Consumer Financial Protection Bureau may have “finalized” numerous important mortgage rules in January, but the tinkering continues. Read on to learn about the CFPB’s recent proposed rule changes and other changes that may be on the way.

Sens. Brown, Vitter unveil legislation intended to end ‘too-big-to-fail’

Fri, 26 Apr 2013 18:48:44 GMT

Two Senators on opposite ends of the political spectrum released the details of a long-awaited bill they said would prevent any single financial institution from becoming so large that its failure could imperil the U.S economy or trigger the need for a government bailout. The bill would see the United States “walk away” from Basel III and would establish a minimum 15 percent capital requirement for megabanks. The bill also includes provisions intended to provide regulatory relief for community institutions. Read on for the details.

New CFPB office to foster dialog with industry participants

Fri, 26 Apr 2013 18:47:04 GMT

The Consumer Financial Protection Bureau established an office intended to connect the bureau with trade associations, financial institutions and businesses. The CFPB also named a leader for the office and announced numerous additional key hires. Read on for the details.

FSOC report outlines risks to U.S. financial stability

Fri, 26 Apr 2013 18:45:30 GMT

The federal panel tasked under the Dodd-Frank Act with identifying and addressing threats to U.S. financial stability released its third annual report. The comprehensive report from the Financial Stability Oversight Council provides an update on financial reform efforts and addresses a range of topics from the wholesale funding markets, to mortgage and housing finance reform, to the dangers posed by interest rate and operational risks. Read on to learn about the report and the risks identified by the FSOC.

Basel III study bill garners industry support

Fri, 26 Apr 2013 18:43:39 GMT

The American Bankers Association is backing legislation that would require federal banking regulators to study the impact of their Basel III proposals on community institutions. The Basel III Commonsense Approach for Small Entities Act was introduced on April 16. Read on for the details.

Banking regulators propose guidance on deposit advance products

Fri, 26 Apr 2013 18:41:52 GMT

The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency unveiled proposed guidance on deposit advance loans. The proposal came just one day after the Consumer Financial Protection Bureau released a report likening the products to payday loans and outlining the potential consumer risks associated with these short-term, small-dollar offerings. Read on to learn about the guidance.

Republicans raise the stakes in battle over CFPB nomination

Fri, 26 Apr 2013 18:40:07 GMT

Outspoken Republicans in the House and Senate show no sign of backing down from a debate over the legitimacy of the 2012 recess appointment that placed Richard Cordray at the head of the Consumer Financial Protection Bureau. The leader of the Republican-controlled House Financial Services Committee banned Cordray from testifying before the committee on the agency’s semi-annual report. A Senate Republican lawmaker also refused to show when Cordray testified before the Banking Committee. Read on for the details.

CFPB releases escrow rule compliance guide

Wed, 24 Apr 2013 13:11:40 GMT

The Consumer Financial Protection Bureau released the latest in a series of promised compliance guides intended to help smaller institutions comply with the agency’s new mortgage rules. The most recent guide, released by the CFPB on April 19, addresses the escrow rule set to take effect in June. Read on to learn about the guide.

International finance ministers pressure U.S. regulators on derivatives reforms

Wed, 24 Apr 2013 13:10:34 GMT

Finance ministers from around the globe wrote Treasury Secretary Jacob Lew to express concern over the “lack of progress in developing workable cross-border rules” as part of the ongoing effort to reform the over-the-counter derivatives market. The letter — signed by the finance ministers of France, Germany, Italy, Japan and others — indicated that a lack of regulatory coordination is already resulting in market fragmentation. Read on for the details.

CFPB plans to take action on payday, deposit advance lending

Wed, 24 Apr 2013 13:08:49 GMT

While they may work for some borrowers, payday and deposit advance loans all too often lead consumers into a cycle of debt, a new whitepaper from the Consumer Financial Protection Bureau finds. The bureau also signaled it is weighing policy steps intended to address risks these products pose to consumers. Read on for the details.

Senator challenges CFPB leader on agency’s data collection activities

Wed, 24 Apr 2013 13:07:39 GMT

The Senate Banking Committee’s top Republican wants the Consumer Financial Protection Bureau to review how it collects and handles consumer data to determine whether the bureau’s data collection efforts could possibly violate the Dodd-Frank Act. Committee ranking member Mike Crapo, R-Idaho, voiced concern that information collected by the bureau could be pieced together to identify individual consumers. Read on for the details.

Government report identifies numerous internal supervisory control deficiencies at SEC

Wed, 24 Apr 2013 13:05:54 GMT

The Government Accountability Office is urging the Securities and Exchange Commission to beef up its internal supervisory controls after the GAO identified numerous deficiencies in controls it tested. Read on to learn about the deficiencies and what the GAO said the SEC should do to address the issues it found.

CFPB, NYC team up to enhance nationwide consumer protection, empowerment initiatives

Mon, 22 Apr 2013 12:22:10 GMT

The Consumer Financial Protection Bureau is partnering with New York City in an effort to help municipalities across the United States beef up their ability to protect consumers. The bureau also reaffirmed the role of cities as key partners that inform the agency’s work. Read on to learn about the partnership.

Agencies update ‘living will’ instructions for biggest banks

Mon, 22 Apr 2013 12:20:11 GMT

Some of the largest megabanks required to file annual resolution plans under the Dodd-Frank Act will need to provide additional information this year under guidance released by the Federal Reserve and the Federal Deposit Insurance Corp. Read on to learn about the new requirements.

CFPB plans to amend QM, servicing final rules

Mon, 22 Apr 2013 12:18:42 GMT

The Consumer Financial Protection Bureau plans to make changes to two major mortgage rulemakings finalized earlier this year. Proposed amendments, released by the bureau on April 19, seek to address questions related to the mortgage servicing rules and the ability-to-repay/qualified mortgage rule. The bureau also said it plans to amend other final rules. Read on for the details.

CFTC leaders square off in budget fight

Mon, 22 Apr 2013 12:17:05 GMT

The leader of the nation’s futures and swaps regulator wants a big budget boost for his agency. The Commodity Futures Trading Commission’s recent budget request seeks an FY 2014 appropriation of $315 million, a 52 percent increase from FY 2013’s projected funding level. CFTC chairman Gary Gensler said the increase is needed to carry out his agency’s expanded mission under Dodd-Frank. However, a Republican CFTC commissioner said the agency’s appeal for a massive budget increase is “unsubstantiated.” Read on for the details.

CFPB exams to become more efficient, Antonakes says

Mon, 22 Apr 2013 12:14:22 GMT

The Consumer Financial Protection Bureau has not been in the supervision business long, but the bureau’s early efforts to scrutinize certain banks and nonbanks quickly earned the young regulator a negative reputation in some quarters. Acting CFPB Deputy Director Steve Antonakes addressed industry participants’ concerns during a speech before the American Bankers Association Government Relations Summit. Read on to learn what Antonakes had to say about the role enforcement attorneys play in CFPB examinations.

QM tops list of bankers’ compliance concerns during U.S. House hearing

Mon, 22 Apr 2013 12:11:50 GMT

Democrats, Republicans and community bankers alike are expressing concern over the potential impact of the Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule. Lawmakers on both sides of the aisle also acknowledged the importance of community banks and supported efforts to reduce the regulatory burdens such institutions face during a recent hearing before the U.S. House Financial Institutions and Consumer Credit Subcommittee. Read on to learn what some community bankers had to say about their plans to implement the ability-to-repay rule’s requirements.

Webinar to drill down on RESPA compliance

Tue, 16 Apr 2013 20:34:52 GMT

RESPA News, Dodd Frank Update’s sister publication, will host a 90-minute webinar next week to educate mortgage and settlement services professionals and others on current Real Estate Settlement Procedures Act regulations and the top areas where compliance issues lurk. The webinar will feature top-rated RESPA compliance trainers Phil Schulman and Holly Spencer Bunting, both partners in the Washington, D.C., office of K&L Gates. Read on for the details.

Understanding QM: LO comp and the concurrent proposal

Tue, 16 Apr 2013 20:33:32 GMT

The ultimate impact of the ability-to-repay/qualified mortgage rule is not clear, in part because the Consumer Financial Protection Bureau proposed a number of important rule revisions when it released the final rule. The proposal seeks comment on certain outstanding issues related to loan originator compensation under the ATR rule’s QM points and fees provisions. Read on to learn what a top compliance attorney had to say about the alternatives the bureau set forth for determining what loan originator compensation must be counted toward points and fees

Report weighs impact of court decision on Cordray appointment, CFPB activities

Tue, 16 Apr 2013 20:32:22 GMT

A new report from the Congressional Research Service indicates a court ruling that invalidated three recess appointments to the National Labor Relations Board could have a serious impact on actions the Consumer Financial Protection Bureau has taken since Richard Cordray was appointed director. Read on for the details.

CFPB expects to grow but spend less in 2014, budget reveals

Tue, 16 Apr 2013 20:24:41 GMT

The Consumer Financial Protection Bureau will continue to grow in FY 2014, according to budget estimates released by the bureau. Even though the CFPB will be adding employees, the agency plans to spend less money in 2014 than it will in 2013. Read on to learn about the budget and the bureau’s goals for the next several years.

CFPB proposes amendments to escrow rule’s ‘rural’ and ‘underserved’ provisions

Tue, 16 Apr 2013 20:22:41 GMT

The Consumer Financial Protection Bureau proposed “clarifying and technical amendments” to its new escrow rule that is currently scheduled to take effect in June. The modifications would ensure that certain ability-to-repay provisions related to higher priced mortgage loans remain in effect until the CFPB’s new ability-to-repay/qualified mortgage final rule becomes effective next year. The proposal also clarifies the determination method for the bureau’s “rural” and “underserved” designations. Read on for the details.

New FDIC video series to assist bank leaders, employees

Tue, 16 Apr 2013 19:28:20 GMT

The Federal Deposit Insurance Corp. recently released the first in a series of technical assistance videos intended to provide useful information to bank directors, officers and employees on areas of supervisory focus and proposed regulatory changes. Read on to learn about the series and to view the FDIC’s videos.

CFPB releases ability-to-repay plain language compliance guide

Sun, 14 Apr 2013 19:56:19 GMT

The Consumer Financial Protection Bureau released the first in a series of promised plain language guides intended to help smaller industry participants comply with the regulator’s new mortgage rules. The first guide to be released pertains to the bureau’s ability-to repay/qualified mortgage rule. Read on for the details.

Banks that paid to stabilize the DIF will get FDIC refunds

Sun, 14 Apr 2013 19:53:17 GMT

The Deposit Insurance Fund continues to strengthen and remains on track to meet statutory targets established under the Dodd-Frank Act, according to new numbers from the Federal Deposit Insurance Corp. The agency also announced plans to refund roughly $6 billion to some banks that prepaid into the DIF during the financial crisis. Read on for the details.

Swaps data reporting delay doesn’t go far enough for end users, O’Malia says

Sun, 14 Apr 2013 19:51:56 GMT

The Commodity Futures Trading Commission issued a no-action letter providing certain swap counterparties that are not swap dealers or major swap participants with additional time to comply with the agency’s Dodd-Frank swap data reporting rules. Read on to learn why CFTC Commissioner Scott O’Malia said the relief could pose compliance difficulties for non-financial end users.

Understanding QM: What the CFPB really means by ‘total loan amount’

Sun, 14 Apr 2013 19:42:19 GMT

The Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule provides that a loan cannot be a QM if the points and fees paid by the consumer exceed certain thresholds based on the total loan amount. However, determining the total loan amount may be more difficult than it first appears. Read on to learn what a top compliance attorney had to say about the calculations involved in making this determination.

Senate confirms White to lead SEC while CFPB nomination could go ‘nuclear’

Fri, 12 Apr 2013 19:59:05 GMT

Former federal prosecutor and securities lawyer Mary Jo White was sworn in as the 31st chair of the Securities and Exchange Commission on April 10. Despite vocal opposition from some quarters, White’s Senate confirmation was relatively painless. However, tension over another key nomination is still ramping up. Read on for the details.

FDIC updates policy on developing regulations

Fri, 12 Apr 2013 19:57:51 GMT

The Federal Deposit Insurance Corp. board adopted amendments to the agency’s policy for developing and reviewing regulations. The revisions are intended to clarify and expand upon policy-setting matters such as rulemaking transparency and ensuring interagency coordination. The policy revisions also discuss the need to focus on the impact regulations have on smaller institutions. Read on for the details.

CFTC, SEC finalize ID theft prevention rules

Fri, 12 Apr 2013 19:54:28 GMT

Financial institutions and creditors under the enforcement jurisdiction of the Commodity Futures Trading Commission and the Securities and Exchange Commission will be required to develop written identity theft prevention programs under joint rules and guidance released by the agencies on April 10. Read on to learn about the rule.

Are you ready to implement the LO compensation rule?

Tue, 09 Apr 2013 18:22:29 GMT

Parts of the CFPB’s new loan originator compensation rule take effect as early as June of this year. Mortgage professionals are encouraged to get the training they need now in order to ensure compliance by its effective date. Dodd Frank Update is offering a 90-minute training webinar on the rule and how to comply with its various parts. Read on to learn more about this educational opportunity.

U.S. Chamber launches bid to reform the reform

Tue, 09 Apr 2013 18:18:55 GMT

Overhauling the Consumer Financial Protection Bureau’s leadership structure, improving regulatory coordination and repealing the Volcker Rule are among the items included in a broad package of Dodd-Frank tweaks suggested by the U.S. Chamber of Commerce. Read on to learn about the chamber’s new “Fix, Add, Replace Agenda” for financial reform.

Inter-affiliate issues, securitization vehicles, electric co-ops among matters recently addressed by CFTC

Tue, 09 Apr 2013 18:15:52 GMT

The Commodity Futures Trading Commission pumped out a steady stream of so-called “no-action” letters in recent weeks along with some important orders and final rules. Read on to learn about what the regulator has been up to as it works to implement its Dodd-Frank regulatory regime.

Understanding the ability-to-repay rule’s temporary QM category

Tue, 09 Apr 2013 18:14:25 GMT

The Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule provides that a loan generally cannot be a QM if the borrower’s debt-to-income ratio is over 43 percent. However, the final rule also established temporary provisions that will allow loans over 43 DTI to qualify as QMs subject to certain conditions. Read on to learn what Jed Mayk, a Partner at Hudson Cook LLP, had to say about the CFPB’s temporary QM provisions during a recent October Research LLC webinar.

CFPB now collecting money transfer gripes

Tue, 09 Apr 2013 18:10:50 GMT

Consumers can now lodge official complaints regarding money transfers with the Consumer Financial Protection Bureau. The bureau’s complaint system began accepting money transfer complaints on April 4, and the CFPB said the complaints will complement the CFPB’s work in this area. Read on for the details.

Fed finalizes retail forex rule

Tue, 09 Apr 2013 18:09:08 GMT

The Federal Reserve Board finalized standards for banking organizations that engage in certain types of foreign exchange transactions with retail customers. The rule, issued under the Dodd-Frank Act, establishes requirements for risk disclosures to customers, recordkeeping, business conduct and documentation for retail foreign exchange transactions. Read on for the details.

CFPB to release plain language guides for new mortgage rules this week

Tue, 09 Apr 2013 17:53:19 GMT

The Consumer Financial Protection Bureau plans to release promised plain language guides to its new mortgage rules sometime this week. The rules take effect in January, and the bureau said it is taking steps to ensure that lenders are able to comply. Read on for the details.

CFPB to fine mortgage insurers $15 million for alleged captive reinsurance kickbacks

Fri, 05 Apr 2013 20:03:59 GMT

Four mortgage insurance companies will pay a combined $15.4 million for engaging in captive reinsurance arrangements that the Consumer Financial Protection Bureau said facilitated the payment of illegal kickbacks to lenders in violation of the Real Estate Settlement Procedures Act. The bureau also said it continues to look into lenders’ roles in such arrangements. Read on for the details.

Curry to take FFIEC reins

Fri, 05 Apr 2013 19:57:38 GMT

Thomas Curry, Comptroller of the Currency, has been named chairman of the Federal Financial Institutions Examination Council for a two-year term. Read on for the details and to learn more about Curry’s background.

Understanding QM’s safe harbor and rebuttable presumption

Fri, 05 Apr 2013 19:54:57 GMT

The Dodd-Frank Act provided that qualified mortgages are entitled to a presumption that the creditor making the loan satisfied the act’s ability-to-repay requirements. However, the act did not specify whether the presumption of compliance is conclusive or is rebuttable. The CFPB’s final rule employs both approaches. Jed Mayk, a partner at Hudson Cook LLP, discussed the QM safe harbor and rebuttable presumption during a recent October Research LLC webinar. Read on for the details.

Fed OIG urges CFPB to beef up information security

Fri, 05 Apr 2013 19:52:31 GMT

The Federal Reserve’s Office of Inspector General wants the Consumer Financial Protection Bureau to strengthen security controls for the system the bureau uses to handle consumer complaints. The OIG also urged the bureau to beef up policies related procurement and contract solicitation. Read on to learn about the OIG’s concerns.

Decision time: What you must know about the CFPB’s new mortgage rules

Fri, 05 Apr 2013 19:47:57 GMT

The Consumer Financial Protection Bureau released several important rules in January, and these rules will fundamentally change the mortgage industry when they go into effect early next year. What should smaller institutions be doing now to prepare for the regulatory onslaught? Read on to learn what advice John Redding, a partner with Buckley Sandler LLP, had for lenders at the recent Independent Community Bankers of America Convention and Techworld in Las Vegas.

Rule underlying Fed nonbank supervision provisions finalized

Fri, 05 Apr 2013 19:17:20 GMT

The Federal Reserve approved a final rule establishing the requirements for determining when a company is “predominantly engaged in financial activities.” The requirements will be used by the Financial Stability Oversight Council when it considers the potential designation of a nonbank financial company for consolidated supervision by the Federal Reserve as authorized under the Dodd-Frank Act. Read on for the details.

Agencies finalize leveraged lending guidance

Tue, 02 Apr 2013 19:47:21 GMT

Federal banking regulators finalized new guidelines regarding lending to leveraged borrowers. The guidelines revise the regulators’ interagency leveraged finance guidance issued in 2001. Read on to learn about the guidance and how the regulators responded to concerns that the revisions could negatively impact community banks.

Reg. X servicing takeaways: What you must know about the CFPB’s new mortgage rules

Tue, 02 Apr 2013 19:45:33 GMT

The Consumer Financial Protection Bureau released several important rules in January, including a pair of rules mandating significant changes for firms engaged in mortgage servicing. During the recent Independent Community Bankers of America Convention and Techworld in Las Vegas, John Redding, a partner with Buckley Sandler LLP, discussed aspects of the rules that lenders should be aware of. Read on to learn what Redding had to say about the CFPB’s amendments to Regulation X.

Inter-affiliate clearing exemption finalized by CFTC

Tue, 02 Apr 2013 19:43:54 GMT

The Commodity Futures Trading Commission released a final rule exempting swaps between certain affiliated entities within a corporate group from Dodd-Frank’s clearing requirement subject to a number of conditions. Read on to learn how the CFTC will view inter-affiliate swaps during the period before the exemption becomes effective.

What’s my liability under the CFPB’s ability-to-repay rule?

Tue, 02 Apr 2013 19:42:37 GMT

The Consumer Financial Protection Bureau finalized what is arguably the new regulator’s most consequential rule on Jan. 10. As required by the Dodd-Frank Act, the CFPB’s ability-to-repay/qualified mortgage rule amended Regulation Z, which implements the Truth in Lending Act, to generally require creditors to “make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling.”

CFPB’s upcoming priorities revealed in latest report to Congress

Tue, 02 Apr 2013 19:40:18 GMT

The Consumer Financial Protection Bureau discussed its recent accomplishments in a new report to Congress. The report details the bureau’s activities, as well as its growth and spending. Read on to learn what regulations and other policy initiatives the bureau plans to address this year.

Sen. Sanders wants to break up big banks, nonbanks

Fri, 29 Mar 2013 17:55:18 GMT

U.S. Sen. Bernie Sanders, I-Vt., plans to introduce legislation that would see the government break apart bank and nonbank financial companies identified as too big to fail. The legislation comes after U.S. Attorney General Eric Holder expressed concern that prosecuting some mega-firms could jeopardize U.S. and global financial stability. Read on to learn about the legislation.

Mortgage performance improving, OCC report finds

Fri, 29 Mar 2013 17:53:35 GMT

The overall quality of first-lien mortgages serviced by large national and federal savings banks improved from the prior quarter and from the same period a year ago, according to a report released by the Office of the Comptroller of the Currency. Read on for the details.

Key house committee to weigh housing, regulatory burden issues this month

Fri, 29 Mar 2013 17:51:37 GMT

The influential U.S. House Financial Services Committee will focus on the nation’s housing finance policy, relieving the regulatory burden on community lenders and ending too-big-to-fail when it launches into a list of scheduled hearings this week. Read on to learn about the issues the committee will discuss.

CFPB finalizes Card Act, ATM fee disclosure rules

Fri, 29 Mar 2013 17:49:30 GMT

Fee notices will no longer need to be placed on or at automated teller machines under a rule finalized by the Consumer Financial Protection Bureau. The CFPB also finalized revisions to a debated Federal Reserve rule related to credit card fees. Read on to learn about both CFPB rulemakings.

CFPB expands complaint database, releases new report on consumer gripes

Fri, 29 Mar 2013 17:45:18 GMT

The Consumer Financial Protection Bureau greatly increased the size and scope of its consumer complaints database under a final policy statement released by the agency on March 28. The bureau also provided the public with its latest snapshot of consumer complaints. Read on to learn how CFPB director Richard Cordray responded to concerns that the publication of the complaint data could harm industry participants.

Reg. Z servicing takeaways: What you must know about the CFPB’s new mortgage rules

Fri, 29 Mar 2013 17:43:23 GMT

CFPB studying compliance costs

Tue, 26 Mar 2013 19:26:17 GMT

The Consumer Financial Protection Bureau announced that it is studying the costs related to complying with rules the agency inherited from other regulators under the Dodd-Frank Act. Read on to learn why the CFPB is studying compliance costs and why some commenters believe the bureau’s plan misses the mark.

CFPB releases report on debt collection

Tue, 26 Mar 2013 19:24:06 GMT

The Consumer Financial Protection Bureau released its second annual report detailing the agency’s efforts to administer the Fair Debt Collection Practices Act. The report describes the bureau’s supervision program as it relates to debt collection and discusses recent developments in the bureau’s law enforcement and advocacy program. Read on to learn about the CFPB’s efforts to enforce provisions of the FDCPA.

Joe Casa Awards nomination deadline this week — Act Now!

Tue, 26 Mar 2013 19:21:59 GMT

October Research LLC, publisher of Dodd Frank Update, announced that the deadline for the prestigious Joe Casa Awards nominations is March 31. Real estate, mortgage and settlement services professionals are invited to nominate colleagues for awards in leadership, innovation or philanthropy.

Proposed bill would remove affiliate fees from QM’s points and fees cap

Tue, 26 Mar 2013 19:20:17 GMT

Groups representing the mortgage and land title industries are sounding off on proposed legislation that would remove fees paid to affiliates from the points and fees cap established by the Consumer Financial Protection Bureau under Dodd-Frank’s qualified mortgage provisions. Read on to learn about the bill and what industry participants are saying.

Appraisal rule takeaways: What you must know about the CFPB’s new mortgage rules

Tue, 26 Mar 2013 19:14:15 GMT

The Consumer Financial Protection Bureau released several important rules in January, including a pair of appraisal-related rules setting forth some new obligations for lenders. John Redding, a partner with Buckley Sandler LLP, discussed key aspects of the new rules during the recent Independent Community Bankers of America Convention and Techworld in Las Vegas. Read on for the details.

Too-big-to-fail still a ‘major issue,’ Bernanke says

Fri, 22 Mar 2013 19:46:37 GMT

The leader of the Federal Reserve said he didn’t mean to imply that the problem of too-big-to-fail no longer exists when he debated the issue with a high-profile U.S. senator during a recent hearing. Fed Chairman Ben Bernanke told the media during his March 20 Federal Open Market Committee press conference that too-big-to-fail is still a problem and that policymakers should consider additional steps to address the issue if current measures fail to achieve the desired results. Read on for the details.