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Dodd Frank Update December 2012

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Dodd Frank Update December 2012
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This month, Dodd Frank Update breaks down the key mortgage rules scheduled to be finalized in January 2013. You’ll also find links to more information on each rulemaking. In addition, we review some potential takeaways from the CFPB’s first wave of enforcement and supervision. We ask industry experts about lenders’ responsibility to monitor their settlement providers. We also examine the government’s response to a court ruling that vacated a rule promulgated by the CFTC.



 
Regulatory outlook for 2013: Webinar
Posted Date: Wednesday, November 28, 2012
With the flood of reforms expected from federal regulators in early 2013, title insurance, mortgage and real estate professionals will be navigating through some tough changes in the coming months. Knowing what to pay attention to and what will impact your business most will be essential. The Legal Description and RESPA News, Dodd Frank Update’s sister publications, have teamed up to bring industry members a 90-minute training webinar on the regulatory landscape in 2013.

 
CFPB, Fed update statutory triggers for HOEPA, Regulations Z and M
Posted Date: Wednesday, November 28, 2012
The Federal Reserve and the CFPB released final rules that increase the dollar thresholds in Regulation Z and Regulation M for exempt consumer credit and lease transactions. The increases are consistent with the Dodd-Frank Act amendments to the Truth in Lending Act and the Consumer Leasing Act to adjust these thresholds annually by the annual percentage increase in the consumer price index for urban wage earners and clerical workers.

 
Federal stability panel proposes money market mutual fund reforms
Posted Date: Wednesday, November 28, 2012
The government’s financial stability panel officially unveiled a proposed set of money market mutual fund reforms. The release of the proposed Financial Stability Oversight Council recommendations comes after the Securities and Exchange Commission scuttled its attempt to overhaul the funds. Read on for the details.

 
OCC to extend compliance date for portions of its lending limits rule
Posted Date: Wednesday, November 28, 2012
The Office of the Comptroller of the Currency said it will provide banks and thrifts with additional time to comply with provisions of its lending limits rule related to credit exposures arising from derivative and securities financing transactions. Institutions would have been required to comply with the provisions by Jan. 1. Read on to learn about the new compliance date.

 
Plaintiffs lack standing in Dodd-Frank constitutional challenge, government says
Posted Date: Wednesday, November 28, 2012

The federal government wants the U.S. District Court for the District of Columbia to dismiss a legal challenge targeting the Consumer Financial Protection Bureau, Financial Stability Oversight Council and Dodd-Frank’s orderly liquidation provisions.

Several groups have thrown their weight behind the challenge, including some state officials most recently, but the government is now questioning the plaintiffs’ right to initiate the challenge to begin with. Read on for the government’s take on the lawsuit.


 
CFPB, FTC issue warnings for potentially deceptive mortgage ads
Posted Date: Monday, November 26, 2012
The CFPB and Federal Trade Commission issued letters to mortgage lenders, mortgage brokers, real estate agents, homebuilders and lead generators, warning dozens of companies that their advertisements may be deceptive. Both agencies also opened formal investigations of other advertisers regulators believe may have violated federal law. Read on for the details.

 
CFTC strikes back in court battle over vacated rule
Posted Date: Monday, November 26, 2012

A deeply divided Commodity Futures Trading Commission voted to move forward with an appeal of a federal district court’s decision vacating the agency’s position limits rule. Read on to learn about the warning one CFTC commissioner had for industry participants who may attempt to “litigate regulators to death.”


 
SEC’s whistleblower office reports busy FY 2012
Posted Date: Monday, November 26, 2012
The Securities and Exchange Commission’s Office of the Whistleblower took in thousands of tips from all 50 states and from dozens of countries in FY 2012, according to a recent report to Congress. Read on to learn how many tips the agency received and what tipsters complained about the most.

 
FHA’s insurance fund posts $16.3B deficit
Posted Date: Monday, November 26, 2012
The government fund intended to protect mortgage lenders from the default of loans made through the Federal Housing Administration had a negative balance of $16.3 billion at the end of September, according to numbers released by the U.S. Department of Housing and Urban Development. The deficit raises the prospect that the Treasury may be required to bail out the Mutual Mortgage Insurance Fund. Read on for the details.

 
CFPB budget report says funding cap could lead to agency independence issues
Posted Date: Monday, November 26, 2012
A CFPB budget report indicated the agency met numerous key policy goals in 2012. However, the bureau said a budgetary cap on the agency’s prime funding source could lead to potential independence concerns in the future. Read on for the details.

 
Fed's Duke: Community banks need a separate set of mortgage rules
Posted Date: Monday, November 19, 2012
A Federal Reserve governor said the crush of mortgage regulations emanating from Dodd-Frank and the capital framework proposed by the banking agencies could “seriously impair the ability of community banks to offer their traditional mortgage products.” Elizabeth Duke argued policymakers should change course as they work to finalize rules that will impact community institutions’ mortgage operations. Read on to learn about her concerns and why she believes small institutions must have their own mortgage rules.

 
CFPB delays effective date for mandated mortgage disclosures
Posted Date: Monday, November 19, 2012
The CFPB is delaying the compliance date for some Dodd-Frank mortgage disclosure provisions that would have kicked in on Jan. 21, 2013. Read on to learn when industry participants will be required to comply with new requirements related to  disclosures on cancellation of escrow accounts, on a consumers’ liability for debt payment after foreclosure and on the creditor’s policy for accepting partial payment.

 
Senate Banking Committee examines Basel III’s impact on community banks
Posted Date: Monday, November 19, 2012
Federal banking regulators issued three notices of proposed rulemaking in June that would revise and replace current regulatory capital rules and implement international capital standards crafted by the Basel Committee on Banking Supervision under Basel III. Community bankers argued the proposed rules could harm their operations in numerous ways. Read on to learn what the regulators had to say about these concerns during a recent hearing before the U.S. Senate Banking Committee.

 
Industry critiques CFPB integrated mortgage disclosure proposal
Posted Date: Monday, November 19, 2012

The CFPB received more than 2,800 comments on its proposal to merge the mortgage disclosures required under the Real Estate Settlement Procedures Act and the Truth in Lending Act. RESPA News, Dodd Frank Update’s sister publication, reviewed several of the comments. Read on to learn what industry participants had to say.


 
Regulators release stress-test scenarios for big banks
Posted Date: Monday, November 19, 2012
Banking regulators released the economic and financial market scenarios that will be used to carry out an impending round of Dodd-Frank mandated stress tests. Read on to learn about the scenarios and how regulators propose to establish scenarios in the future.

 
O’Malia, Chilton offer competing views on Dodd-Frank implementation
Posted Date: Wednesday, November 14, 2012
Two Commodity Futures Trading Commission members, who’ve differed on the agency’s Dodd-Frank rules, shared competing views on the commission’s efforts to implement its new derivatives regime. Read on for the details.

 
Regulators amplify call for information on consumer credit report costs
Posted Date: Wednesday, November 14, 2012
The Federal Trade Commission is again calling on industry participants to comment on the burden associated with existing regulations that require credit bureaus to provide credit reports to consumers. The FTC and CFPB share enforcement authority for the requirement, and the FTC extended the comment period for a notice related to the requirement after the initial notice failed to garner any response from the industry.

 
Clearinghouse challenges CFTC cleared swap data reporting rule
Posted Date: Wednesday, November 14, 2012
The owner of the world’s largest futures exchange asked a federal court to toss a Commodity Futures Trading Commission rule that would require certain derivatives clearinghouses to provide nonpublic regulatory reports of cleared swap transactions to swap data repositories. The lawsuit is just the latest in a string of court cases challenging regulators’ Dodd-Frank Act rules.

 
Lender, appraiser associations seek amendments to CFPB Reg. B proposal
Posted Date: Wednesday, November 14, 2012
The CFPB is expected to finalize numerous important mortgage rules ahead of a Jan. 21 deadline. Some of those rules have been the subject of intense scrutiny from industry participants and the media. However, an important rule related to lender-furnished appraisals has not received the same level of attention. Read on to learn about the proposed rule and what changes lenders and appraisers want the CFPB to make before it’s finalized.

 
Community institutions discuss regulatory burden with the CFPB
Posted Date: Wednesday, November 14, 2012
Community bankers and credit union professionals recently met with the CFPB to discuss the important role their institutions play in local communities. Read on to learn what topics were discussed when the CFPB’s Credit Union Advisory Council and Community Bank Advisory Council convened for their respective inaugural meetings.

 
Financial stability panel to address money market mutual funds
Posted Date: Monday, November 12, 2012
The Financial Stability Oversight Council will discuss proposed recommendations regarding money market mutual fund reform, according to the Treasury Department. Read on to learn about the reform plan advanced by FSOC Chairman Tim Geithner.

 
Lenders warn APR changes, HOEPA expansion could restrict credit availability
Posted Date: Monday, November 12, 2012
The CFPB is sifting through hundreds of comment letters as it works to finalize rules implementing Dodd-Frank’s expansion of the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protection Act (HOEPA). Read on to learn why the proposal received a cool reception from consumer advocates and industry participants alike.

 
12 Financial Services Committee members to depart the U.S. House
Posted Date: Monday, November 12, 2012
A review of the election’s winners and losers shows a handful of U.S. Representatives will not return to the House committee that has jurisdiction over economic issues. Read on to learn which departing members of the House Financial Services Committee had a hand in legislation related to the Dodd-Frank Act.

 
CFPB cheat sheet: Final mortgage rules to watch for in the coming weeks
Posted Date: Monday, November 12, 2012
The CFPB is expected to finalize numerous key rules in the next few weeks, including rules that promise to impact the mortgage industry and housing market. Read on for an update on the major rules the CFPB is working to complete.

 
Banking regulators scrap Basel III implementation deadline
Posted Date: Monday, November 12, 2012
Federal banking regulators said industry participants will not be required to comply with proposed capital rules on Jan. 1 as indicated in three rulemakings released earlier this year. Read on for the details.

 
Eight U.S. megabanks retain 'systemic' designation
Posted Date: Wednesday, November 7, 2012
Eight U.S. firms remain on an updated list of global systemically important banks released by an international panel tasked with developing regulatory policies in the interest of world financial stability. G-SIBs will be required to meet heightened capital standards in the coming years and will face additional requirements intended to enhance world financial stability.

 
Consumer bureau, FHFA to create comprehensive national mortgage database
Posted Date: Wednesday, November 7, 2012
The Federal Housing Finance Agency and Consumer Financial Protection Bureau agreed to partner on the creation of a National Mortgage Database –– the first comprehensive repository of detailed mortgage loan information. The database will help regulators understand and respond to emerging mortgage and housing market trends. Read on for the details.

 
FDIC urges institutions to prepare depositors for the end of unlimited coverage
Posted Date: Wednesday, November 7, 2012
The Federal Deposit Insurance Corp. urged institutions to let their customers know that unlimited coverage for certain noninterest-bearing accounts extended under the Dodd-Frank Act is scheduled to end on Dec. 31. Read on for the details and to access a link to the FDIC’s model notice.

 
CFPB report shows number of college credit card agreements on the decline
Posted Date: Wednesday, November 7, 2012
A new report from the Consumer Financial Protection Bureau shows the number of agreements between universities, their affiliates and credit card companies continues to decline in the wake of transparency regulations enacted under the Card Act. Read on for the details.

 
Agencies push back against cost-benefit bill
Posted Date: Wednesday, November 7, 2012
The leaders of six regulatory agencies opposed a bill that would subject independent agencies to the regulatory analysis requirements applicable to other federal agencies, including requirements related to regulatory cost-benefit analysis. In a recent letter, the regulators argued that the measure could allow an administration to influence rulemakings and would likely result in unnecessary litigation.

 
Third-party settlement risk: What’s a mortgage lender to do?
Posted Date: Wednesday, November 7, 2012
The CFPB created a stir this past April when it released a bulletin indicating that lenders would be held responsible for their vendors. Since then, mortgage lenders have been searching for ways to mitigate their third-party settlement risk in a manner that will satisfy the agency’s expectations. Read on to learn what a top real estate attorney and the president of the American Land Title Association had to say about various efforts intended to enable lenders to verify whether individual closing agents are trustworthy, competent and compliant.

 
CFPB releases exam manual version 2.0
Posted Date: Monday, November 5, 2012
The Consumer Financial Protection Bureau published an updated version of its Supervision and Examination Manual. The updated manual incorporates procedures released for such markets as mortgage origination and servicing, payday lending, consumer reporting and consumer debt collection. The agency also released its appeals policy for supervised entities. Read on for the details.

 
CFPB’s supervisory concerns carry warnings for financial institutions
Posted Date: Monday, November 5, 2012
A new CFPB report indicates the agency is finding some common problems at the mortgage, credit card and other financial services companies it supervises. What does this portend for your company? Read on for an in-depth look at the biggest issues the CFPB uncovered and how the bureau directed institutions to respond to those concerns.

 
Housing forecast: Your guide to good decision-making for 2013
Posted Date: Monday, November 5, 2012
Having a keen perspective on what lies ahead for the housing sector is crucial to developing a smart plan for business growth in the New Year. The Title Report, Dodd Frank Update’s sister publication, is hosting a webinar featuring two nationally-recognized economists who will provide an in-depth look at housing in 2013. Read on for the details.

 
Divided CFTC approves guidance regarding foreign regulators’ access to swap data
Posted Date: Monday, November 5, 2012
The Commodity Futures Trading Commission approved final guidance supporters said will ensure foreign regulators have appropriate access to swap data repositories. However, two members of the CFTC voted against the policy statement, arguing it restricts some domestic regulators’ ability to examine swap market data. Read on for the details.

 
SEC adopts final rule on clearing agency operations, risk management
Posted Date: Friday, November 2, 2012
The Securities and Exchange Commission adopted a rule that establishes standards for how registered clearing agencies should manage their risks and run their operations. Read on for the details.

 
Report highlights differences between Basel III standards, proposed U.S. rules
Posted Date: Friday, November 2, 2012
Recent reports from the Basel Committee on Banking Supervision highlighted differences between the international Basel III standards and proposed rules that are intended to implement those standards in the United States. Read on to learn in what area the BCBS found the U.S. proposals to be “materially non-compliant” with the Basel framework.

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