Dodd Frank Update - Daily News

‘Make A Child Smile’ charity event donates bikes to Northeast Ohio kids

Fri, 14 Jun 2013 19:35:31 GMT

The National Settlement Services Summit isn’t just about title industry support and improvement. It’s also about community improvement. And that’s no more evident than at the Make a Child Smile: Charity Bicycle Building Event sponsored by Winward Consulting | Software LLC. At this year’s Summit, volunteers spent an afternoon with the October Research staff assembling bicycles that will be donated to a Northeast Ohio organization named Guidestone.

Real Estate Data Shield launches Compliance Management System at Summit

Fri, 14 Jun 2013 19:34:20 GMT

Real Estate Data Shield announced the launch of a web-based Compliance Management Platform for the title and settlement industry. The platform is set up so title and settlement companies can immediately access and find the tools they need to meet the data security compliance mandates of regulators, lenders and the title industry’s best practice initiatives.

Data security — where’s a service provider to start?

Fri, 14 Jun 2013 19:31:55 GMT

The FTC, CFPB and other agencies are pressuring lenders and their service providers to beef up efforts to protect sensitive data. However, crafting and implementing a data security plan can be a daunting task, especially for smaller service providers. Read on to learn what experts and a representative from the FTC had to say about the resources that are available to companies hoping to understand and meet their data security obligations.

Bureau launches web page for mortgage rule implementation

Fri, 14 Jun 2013 19:29:55 GMT

The Consumer Financial Protection Bureau unveiled a web page intended to aid the mortgage industry as it works to comply with several regulations finalized earlier this year. The bureau’s new mortgage rule implementation web page consolidates the rules and related compliance guides, videos and other implementation materials all in one place. Read on for a link to the web page.

CFPB releases report on overdraft practices

Fri, 14 Jun 2013 19:27:38 GMT

The Consumer Financial Protection Bureau released a report on bank and credit union overdraft practices that raises concerns about whether consumers can anticipate and avoid overdraft costs associated with checking accounts. The report shows significant differences across financial institutions when it comes to overdraft coverage on debit card transactions and ATM withdrawals. The report also finds that consumers who opt in for overdraft coverage incur greater costs. Read on to learn about the study and how the CFPB intends to proceed from here.

FDIC approves latest element of orderly liquidation framework

Fri, 14 Jun 2013 19:25:03 GMT

The Federal Deposit Insurance Corp. approved an important definitional rule underlying the process that would be used to determine whether a troubled company is covered under Dodd-Frank’s orderly liquidation provisions. The FDIC finalized a rule establishing criteria for determining if a company is predominantly engaged in “activities that are financial in nature or incidental thereto.” Read on for the details.

SEC resurrects money market fund reform effort

Fri, 14 Jun 2013 19:23:05 GMT

The Securities and Exchange Commission unanimously voted to release a set of proposals that would change the way money market funds operate — resurrecting a reform effort the agency scuttled in 2012. The SEC’s action came after the Financial Stability Oversight Council made MMFs a key priority and signaled it would use its powers under the Dodd-Frank Act to advance a package of reforms. Read on for the details.

Navigating the new age of lender liability will require collaboration, advocacy

Fri, 14 Jun 2013 19:19:20 GMT

The Consumer Financial Protection Bureau created a stir last April when it indicated that lenders would be held responsible for the activities of their vendors. Since then, the real estate settlement services industry has been grappling with the problem of how best to verify to lenders that agents are in compliance with applicable consumer protection laws and regulations. During the 2013 National Settlement Services Summit in Cleveland, Penny Reed, vice president, Wells Fargo Home Mortgage, recommended that settlement agents engage their lender clients to address the issue head on.

U.S. House approves derivatives cross-border, end-user bills

Fri, 14 Jun 2013 19:17:48 GMT

The U.S. House approved three derivatives-related bills on June 12. One bill would require the Securities and Exchange Commission and Commodity Futures Trading Commission to adopt identical rules establishing how Dodd-Frank’s swaps provisions will apply outside of the United States. Another bill is intended to ensure that true derivatives end-users are exempt from Dodd-Frank’s margin requirements. Read on to learn about the bills.

Summit live coverage: The ‘year of implementation’ and the one thing that will pull us out of the recession

Wed, 12 Jun 2013 14:05:42 GMT

Positivity permeated the grand ballroom of Cleveland’s Marriott at Key Center hotel as Bill Cosgrove, vice chairman of the Mortgage Bankers Association and the chief executive officer of Union Home Mortgage Corp, kicked off the 2013 National Settlement Services Summit. As the housing market continues to improve, it’s becoming a key component to pulling the country out of the recession. While housing numbers are encouraging, Cosgrove cautioned that we need to ensure we have the proper mortgage industry structure in place as we continue through the “year of implementation.”

LO Comp, servicing compliance guides released

Wed, 12 Jun 2013 14:03:41 GMT

The Consumer Financial Protection Bureau released the final two small entity compliance guides for its January mortgage rulemakings. The latest guides cover the bureau’s loan originator compensation and servicing rules. Read on to learn about the guides and for links to all of the guides the CFPB has released for its January rules.

October Research announces industry award winners

Wed, 12 Jun 2013 14:01:08 GMT

October Research LLC, publisher of The Title Report, The Legal Description, Valuation Review, RESPA News and Dodd Frank Update, announced the winners in its annual awards program, launched to honor men and women in the mortgage and settlement services industries for exemplary accomplishment in the areas of leadership, innovation and philanthropy.

Summit live coverage: Implementation timeline, costs drive mortgage disclosure debate

Wed, 12 Jun 2013 13:57:06 GMT

Title industry participants continue to speak out about the Consumer Financial Protection Bureau’s effort to combine the mortgage disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Attendees at the 2013 National Settlement Services Summit in Cleveland had the opportunity to share some of their biggest concerns with a top CFPB rule maker. Read on to learn about the debate.

ICBA sounds off on Freddie Mac low-volume fee

Wed, 12 Jun 2013 13:46:47 GMT

The Independent Community Bankers of America expressed serious concern with a Freddie Mac policy change that would require financial institutions that do not meet certain mortgage volume requirements to pay a $7,500 annual fee for low activity. The group said the fee would be unaffordable for some community banks and would limit institutions’ ability to provide mortgages to their customers.

Proposed funding bill could hamper CFTC swaps reforms, Democrats warn

Fri, 07 Jun 2013 18:39:23 GMT

A U.S. House Appropriations Subcommittee advanced a spending plan Democrats say would limit the Commodity Futures Trading Commission’s ability to implement wide-ranging swaps market reforms crafted under the Dodd-Frank Act. Read on to learn about this latest battle over CFTC funding.

Trade groups critique CFPB’s new QM, servicing proposal

Fri, 07 Jun 2013 18:36:23 GMT

Industry participants sounded off on the Consumer Financial Protection Bureau’s proposed changes for two major mortgage rulemakings that were finalized earlier this year. The proposed amendments, released by the bureau on April 19, seek to address industry questions and concerns related to the CFPB’s mortgage servicing rules and the ability-to-repay/qualified mortgage rule. Read on to learn what commenters liked and disliked about the proposals.

Groups worry QM compliance could trigger fair lending concerns

Fri, 07 Jun 2013 18:33:53 GMT

Several major trade groups want the government to provide written assurances that complying with the Consumer Financial Protection Bureau’s new mortgage rules won’t increase institutions’ risk of a fair lending violation. The groups said the mortgage rules will constrict credit availability and may lead to disparate outcomes for some borrowers. Read on for the details.

Student loan servicing proposal must not hurt credit union lending, NAFCU says

Fri, 07 Jun 2013 18:31:34 GMT

An industry group representing the nation’s federal credit unions urged the Consumer Financial Protection Bureau to ensure that proposed rules for nonbank student loan servicers don’t carry unintended consequences for credit union lending. Read on to learn what the National Association of Federal Credit Unions and other commenters had to say about rules that would permit the bureau to oversee “larger participants” in the student loan servicing arena.

Industry wants more time to consider reopened SEC swaps proposals

Fri, 07 Jun 2013 18:29:34 GMT

Industry groups asked the Securities and Exchange Commission for additional time to comment on security-based swap rules that have yet to be finalized. The SEC voted last month to reopen the comment periods for all commission rules not yet finalized that stem from Title VII of the Dodd-Frank Act. Comments are due by July 22. Read on to learn why industry participants said the comment period should be extended.

LO Comp insights: CFPB definitions and the ‘devilish details’

Fri, 07 Jun 2013 18:20:06 GMT

The Consumer Financial Protection Bureau’s loan originator compensation rule makes important changes to the Federal Reserve’s existing loan originator definition to reflect provisions of the Dodd-Frank Act. The CFPB also revised and expanded existing commentary on the loan originator definition to clarify how various scenarios apply to the definition. Understanding the definitional changes and associated commentary will be important to determining who in an organization is covered under the CFPB’s rules.

CFPB adds money transfer, credit reporting gripes to complaint database

Wed, 05 Jun 2013 12:28:46 GMT

The Consumer Financial Protection Bureau expanded its Consumer Complaint Database to include complaints about money transfers and credit reporting. The bureau also announced that complaint data is now searchable by state. Read on to find out which states have the highest complaint rates for mortgages, credit cards and bank accounts.

Banking, mortgage, credit union groups critique QM amendments

Wed, 05 Jun 2013 12:27:31 GMT

Major trade associations representing mortgage lenders of all sizes and stripes sounded off on the Consumer Financial Protection Bureau’s amendments to the ability-to-repay/qualified mortgage rule. The amendments include numerous provisions intended to ensure that borrowers can access loans from small creditors. However, industry participants vowed to press for further changes. Read on for the details.

Compliance-driven hiring could lead to profitability challenges at smallest banks

Wed, 05 Jun 2013 12:26:02 GMT

New research examining the impact of regulatory costs on community banks indicates that many of the smallest institutions may run the risk of becoming unprofitable if they find it necessary to add new employees to help meet their compliance obligations. In addition to the paper, the Federal Reserve Bank of Minneapolis released a calculator allowing users to assess the impact of increased personnel costs on banks’ profitability. Read on for the details.

CFPB releases first round of exam manuals for new mortgage rules

Wed, 05 Jun 2013 12:24:03 GMT

The Consumer Financial Protection Bureau released the first in a series of roadmaps its examiners will use to assess compliance with the agency’s new mortgage rules. The bureau said its exam procedures offer financial institutions and mortgage companies “valuable guidance” on what the CFPB will be looking for as the rules become effective. The first pair of manuals focuses on new requirements pertaining to appraisals, escrow accounts, and compensation and qualifications for loan originators. Read on for the details.

LO Comp insights: Industry should follow Fed rules for now

Wed, 05 Jun 2013 12:20:00 GMT

The Consumer Financial Protection Bureau’s new loan originator compensation rule is likely better in some respects than the Federal Reserve’s existing LO Comp rule, according to attorney Donald Lampe of Dykema Gossett PLLC. However, he indicated that industry participants thinking of following parts of the CFPB’s rule instead of the Fed’s rule need to wait until the new rule takes effect in January 2014. Read on for the details.

Know your regulator: SEC names new chief of staff

Fri, 31 May 2013 19:47:51 GMT

A Securities and Exchange Commission staff member who has led a series of complex rulemakings under the Dodd-Frank Act has been named the agency’s chief of staff. Read on for the details and to learn about another important personnel change at the SEC.

Court weighs whistleblower retaliation claim

Fri, 31 May 2013 19:45:23 GMT

A financial strategist who said he was fired for complaining about alleged efforts to influence his published research sued his employer, claiming the company violated Dodd-Frank provisions intended to protect whistleblowers from retaliation. The company urged a federal court to dismiss the claim, arguing that because the employee did not report his concerns to the Securities and Exchange Commission, he was not a “whistleblower” for the purposes of the act’s anti-retaliation provisions. Read on to learn what the court decided.

Lawmakers warn of potential QM fallout (Part 2)

Fri, 31 May 2013 19:42:19 GMT

Members of Congress on both sides of the aisle indicated they want the Consumer Financial Protection Bureau to make changes to its new ability-to-repay/qualified mortgage rule. Lawmakers recently challenged top bureau rule writers on numerous issues ranging from the rule’s 3 percent cap on points and fees for QMs to the CFPB’s ability and willingness to change the ATR/QM rule in the event it fails to function as expected when it takes effect in January 2014. Read on for the details.

CFPB wields power to quash alleged ‘abusive’ practices for first time

Fri, 31 May 2013 19:33:50 GMT

Since the advent of the Consumer Financial Protection Bureau, industry participants have wondered how and when the new agency would use its Dodd-Frank-mandated authority to ban abusive acts or practices in the consumer financial marketplace. On May 29, the agency announced it is seeking to exercise this power for the first time in a case involving a Florida debt-relief company. Read on to learn what activities the company allegedly engaged in that constituted abuse in the eyes of the CFPB.

CFPB delays compliance date for credit insurance financing prohibition

Fri, 31 May 2013 19:30:29 GMT

As expected, the Consumer Financial Protection Bureau finalized a rule delaying the compliance date for provisions of its loan originator compensation final rule that prohibit creditors from financing premiums for credit insurance products in connection with certain mortgage loans. The provision would have taken effect on June 1 but the final rule establishes a new compliance date. Read on for the details.

Inside the CFPB’s ability-to-repay final rule amendments

Fri, 31 May 2013 16:29:25 GMT

The Consumer Financial Protection Bureau finalized highly-anticipated amendments to the ability-to-repay/qualified mortgage rules the agency released earlier this year. The final amendments differ from the bureau’s January proposal in important respects. Read on for an in-depth look at the CFPB’s changes.

Lew spars with senators over capital requirements, too-big-to-fail

Tue, 28 May 2013 20:16:47 GMT

The leader of the federal panel tasked with identifying and addressing threats to U.S. financial stability told a U.S. Senate committee that regulators should be permitted to enact existing financial reforms before policymakers determine whether to take additional steps to end too-big-to-fail. Treasury Secretary Jacob Lew, chairman of the Financial Stability Oversight Council, discussed issues ranging from capital requirements to cross-border regulatory coordination during a May 21 hearing before the Senate Banking Committee. Read on for the details.

Lawmakers warn of potential QM fallout

Tue, 28 May 2013 20:15:12 GMT

Some members of Congress want the Consumer Financial Protection Bureau to make significant changes to its new ability-to-repay rule. Lawmakers on both sides of the aisle recently challenged bureau representatives on numerous issues ranging from the rule’s 3-percent cap on points and fees for qualified mortgages to the bureau’s ability and willingness to change the rule in the event it fails to function as expected when it takes effect in January 2014. Read on for part one of this two-part series.

‘Swipe fee’ rule’s small issuer exemption is working, Fed says

Tue, 28 May 2013 20:14:07 GMT

Federal Reserve debit card interchange fee caps enacted under the Dodd-Frank Act have not harmed smaller issuers as some industry participants feared, the agency said in a May 23 report. According to Fed numbers, small institutions that are exempt from the new rules received roughly the same fee revenue per transaction in 2012 as they did before the rules went into effect in October 2011.

CFPB, state credit union supervisors sign MOU

Tue, 28 May 2013 20:12:24 GMT

The Consumer Financial Protection Bureau and state credit union regulators inked a memorandum of understanding intended to enhance coordination and cooperation for the supervision of state chartered credit unions, the National Association of State Credit Union Supervisors reported. The CFPB also recently entered into an MOU with state bank regulators. Read on for the details.

Cordray vote delayed, could come in July

Tue, 28 May 2013 20:11:01 GMT

An anticipated Capitol Hill showdown over Richard Cordray’s nomination to continue leading the Consumer Financial Protection Bureau never materialized last week and reportedly may not happen until this summer. However, some lawmakers couldn’t help but take a few more shots as the debate over the bureau’s leadership structure and powers continued. Read on for the details.

CFPB releases guidance on uniform state test for loan originators

Tue, 28 May 2013 20:06:00 GMT

The Consumer Financial Protection Bureau released guidance on May 20 to respond to questions about whether states are allowed to use the uniform state test developed by the National Mortgage Licensing System and Registry as part of a qualified written test required by the Secure and Fair Enforcement for Mortgage Licensing Act. Read on to learn what the CFPB had to say.

Dodd-Frank’s orderly liquidation provisions criticized on Capitol Hill

Wed, 22 May 2013 12:50:56 GMT

The Dodd-Frank Act gave regulators power to unwind troubled systemically important financial institutions in the hope that taxpayers will never again be required to bail out a too-big-to-fail firm. However, some lawmakers and experts argue that the act’s orderly liquidation provisions enshrine too-big-to-fail and have no hope of functioning as intended. The implications of Dodd-Frank’s orderly liquidation provisions were the topic of discussion during a recent U.S. House subcommittee hearing. Read on for the details.

SEC cost-benefit bill approved in U.S. House

Wed, 22 May 2013 12:48:41 GMT

An agency criticized for its assessments of the costs and benefits associated with some of its Dodd-Frank final rules would face enhanced rulemaking requirements under legislation approved by the U.S. House. Read on to learn about the bill and the obligations it would place on the Securities and Exchange Commission.

Fed OIG releases report on CFPB audits, inspections and evaluations

Wed, 22 May 2013 12:46:16 GMT

The Federal Reserve Office of Inspector General issued a Semiannual Report to Congress, noting that it has begun a review of the Consumer Financial Protection Bureau’s goals and performance objectives and describing the ongoing oversight of the CFPB, including an evaluation of the bureau’s integration of enforcement attorneys into its examinations. Read on for the details.

State regulators, CFPB sign off on coordination framework

Wed, 22 May 2013 12:44:42 GMT

The Conference of State Bank Supervisors and the Consumer Financial Protection Bureau signed a supervisory coordination framework. The framework is intended to establish a process for coordinated federal and state consumer protection supervision and enforcement for covered banks and nonbanks. Read on for the details.

Texas homebuilder slapped with CFPB consent order

Wed, 22 May 2013 12:42:42 GMT

The Consumer Financial Protection Bureau ordered a Texas homebuilder to turn over alleged kickbacks the agency said he funneled through sham mortgage companies. The bureau also prohibited the builder from engaging in future real estate settlement services, including mortgage origination. Read on to learn how much money the builder was ordered to surrender to the CFPB.

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.

Cordray 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.