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Groups ask CFTC to dump variation margin requirement for inter-affiliate swaps
Posted Date: Wednesday, September 26, 2012
Two industry groups asked the CFTC to remove the variation margin requirements from its proposed clearing exemption for swaps between certain affiliated entities. Read on for the associations’ reasoning and what other changes the groups want the CFTC to make to its proposal.
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House lawmakers approve muni advisor legislation
Posted Date: Wednesday, September 26, 2012
The U.S. House approved legislation intended to clarify the scope of Dodd-Frank’s municipal advisor provisions. The measure was unanimously approved with a voice vote on Sept. 19 and was later referred to the Senate Banking Committee.
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Battle over debit, credit interchange fees rages on
Posted Date: Wednesday, September 26, 2012
The emergence of a proposed antitrust settlement in a lawsuit involving interchange fees paid to Visa and MasterCard reignited the debate over the efficacy of Dodd-Frank’s debit card interchange caps. Merchants and representatives from the financial services industry debated whether lawmakers should take steps to address credit card interchange fees. Read on for the details.
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Cordray: Difference between QM safe harbor, rebuttable presumption is ‘overstated’
Posted Date: Wednesday, September 26, 2012
CFPB Director Richard Cordray told U.S. House Financial Services lawmakers his agency is working to ensure rules implementing Dodd-Frank’s ability-to-repay provisions include a sufficiently broad bright line qualified mortgage standard. However, he indicated the heated debate over whether the final rule should afford lenders a safe harbor or a rebuttable presumption of compliance rests on a somewhat illusory distinction between those two policy options.
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Discover to pay $214 million under CFPB, FDIC consent order
Posted Date: Monday, September 24, 2012
Discover Bank will refund roughly $200 million to 3.5 million customers and pay another $14 million in civil penalties following an investigation of the company’s marketing of credit card add-on products, according to a consent order released by the CFPB and FDIC. The action comes after the CFPB and OCC ordered Capital One to fork over $210 million in connection with similar marketing activities in July. Read on for the details.
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Prevent data loss within your company: Know the solutions
Posted Date: Friday, September 21, 2012
The CFPB has made it clear that lenders will be held responsible for the actions of their third-party service providers, and that’s placing pressure on title agents to ensure they’re in compliance with applicable consumer regulations and best practices. On Oct. 4, Dodd Frank Update’s sister publication, The Legal Description, will host a training Webinar to provide title agents with the information they need to ensure that the consumer data they possess remains secure. Read on for the details.
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SEC chooses transparency over standardization when it comes to credit ratings
Posted Date: Friday, September 21, 2012
Congress should not take steps to standardize credit rating terminology, the Securities and Exchange Commission said in a recent report. The Dodd-Frank Act required the SEC to study numerous policy options related to credit rating standardization. Read on to learn why the agency said increasing transparency “may be more feasible and desirable than implementing the standardization” lawmakers suggested for study.
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Fannie, Freddie take stance in battle over proposed ‘all-in’ APR
Posted Date: Friday, September 21, 2012
Despite strong opposition from mortgage lenders, government-sponsored enterprises Fannie Mae and Freddie Mac are applauding the Consumer Financial Protection Bureau’s effort to change the way annual percentage rate is calculated. Read on to learn why Fannie and Freddie believe the CFPB’s proposed more inclusive APR will benefit consumers and reduce the industry’s compliance burden.
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QM update: Trade associations, lawmakers amp up call for safe harbor
Posted Date: Friday, September 21, 2012
Ten trade groups representing mortgage lenders, banks and credit unions are again calling on the CFPB to establish a qualified mortgage definition that includes a bright line safe harbor for lenders. Read on for an update on the bureau’s QM rulemaking effort.
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Major Dodd-Frank provisions challenged in federal lawsuit
Posted Date: Friday, September 21, 2012
A legal challenge questioning the constitutionality of the Financial Stability Oversight Council, the CFPB and the appointment of the bureau’s first permanent director is expanding. The attorneys general of South Carolina, Oklahoma and Michigan added their names to the list of plaintiffs in the case. The plaintiffs also expanded their complaint, alleging that another major tenet of Dodd-Frank is unconstitutional. Read on for the details.
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Bureau to pilot simplified credit card agreement
Posted Date: Friday, September 21, 2012
The Consumer Financial Protection is preparing to test a short form credit card agreement the agency has been working on for the past several months, according to a recent Federal Register notice. Read on to learn about the form and the agency’s plan to test the agreement on members of the Pentagon Federal Credit Union.
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Trade groups want more time to comment on Appraisal Subcommittee proposal
Posted Date: Friday, September 21, 2012
Mortgage lenders and community institutions want the Appraisal Subcommittee of the Federal Financial Institutions Examination Council to extend the comment period for proposed policy statements intended to ensure that state appraisal regulatory programs comply with applicable federal provisions. A group of five associations said industry participants have been busy working on comments related to several complex Dodd-Frank mortgage proposals, and need additional time to provide meaningful feedback on the subcommittee’s statements.
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FDIC reveals more households entering the ranks of the underbanked
Posted Date: Friday, September 21, 2012
One in 12 U.S. households does not have access to a bank deposit account, while families with bank accounts are increasingly relying on nonbank remittances, payday loans and other alternative financial services to meet their needs, according to a new report from the Federal Deposit Insurance Corp. Read on to learn about the report and what CFPB Director Richard Cordray said about his agency’s plans to ensure that unbanked and underbanked consumers are protected.
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Association backs cost-benefit analysis requirement for independent agencies
Posted Date: Wednesday, September 19, 2012
An organization representing the nation’s federal credit unions voiced support for legislation that would subject independent agencies to the regulatory analysis requirements applicable to other federal agencies, including requirements related to regulatory cost-benefit analysis. Read on to learn about the legislation and how it could impact agencies working to implement the Dodd-Frank Act including the SEC, CFTC and CFPB.
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Associations urge CFTC to re-propose rule on margin for uncleared swaps
Posted Date: Wednesday, September 19, 2012
The Securities Industry and Financial Markets Association and the International Swaps and Derivatives Association urged the CFTC to delay finalizing rules on margin for uncleared swaps until international policy makers complete their work in the area. Read on to learn what other suggestions the groups made concerning the agency’s proposed rules.
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Know your regulator: SEC names leader for examination office
Posted Date: Wednesday, September 19, 2012
The Securities and Exchange Commission named a new leader for the agency office responsible for inspections and examinations of SEC-registered investment advisers, investment companies, broker-dealers, self-regulatory organizations, clearing agencies and transfer agents. Read on to learn about the new deputy director for the Office of Compliance Inspections and Examinations.
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Government report: FSOC, OFR should take steps to increase accountability, transparency
Posted Date: Wednesday, September 19, 2012
The government panel charged with identifying risks and responding to emerging threats to financial stability should take steps to clarify its mission and increase accountability, the Government Accountability Office said in a recent report. Read on to learn about the debate surrounding the FSOC and the Office of Financial Research, and what challenges the GAO said the new government entities face.
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Cordray to mortgage servicers: Don’t wait for the CFPB, clean up now
Posted Date: Wednesday, September 19, 2012
The leader of the Consumer Financial Protection Bureau is letting mortgage servicers know they shouldn’t wait for new rules from the CFPB before taking steps to address issues that may result in harm to consumers. Richard Cordray recently told members of the Senate Banking Committee that servicers “need to be improving their processes and coming up to snuff now.” Read on to learn about the warning Cordray had for mortgage servicers.
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GAO says Dodd-Frank's impact on community institutions depends on future regulations
Posted Date: Wednesday, September 19, 2012
Provisions within seven of the Dodd-Frank Act’s 16 titles are expected to have an impact on community banks and credit unions, according to a new report from the Government Accountability Office. However, the ultimate effects won’t be clear until government agencies implementing the act release final regulations. Read on to learn about the act’s provisions impacting community institutions.
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FHFA, GSEs unveil new approach to reps and warranties
Posted Date: Friday, September 14, 2012
Fannie Mae and Freddie Mac will implement a new approach to representations and warranties starting next year, the Federal Housing Finance Agency said. The new rep and warranty approach is part of a broader series of strategic initiatives that aim to clarify lenders’ repurchase exposure and liability on future deliveries. Read on for the details.
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Senator warns CFPB chief not to rewrite Dodd-Frank
Posted Date: Friday, September 14, 2012
A top Senate Republican signaled that lawmakers will be watching to ensure the CFPB doesn’t overstep the bounds of its authority to implement certain Dodd-Frank provisions as the agency deems best. Sen. Richard Shelby, R-Ala., quizzed CFPB Director Richard Cordray on the bureau’s plan to eliminate a Dodd-Frank mandated disclosure from the agency’s proposed mortgage forms during a recent hearing. Read on to learn about the tense exchange and what led Shelby to question whether the bureau may be attempting to rewrite Dodd-Frank.
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Trade groups urge CFPB to scrap plan for 'all-in' APR
Posted Date: Friday, September 14, 2012
A coalition of 16 trade organizations representing the mortgage, real estate, banking and credit union industries urged the CFPB to drop its plan to include additional fees in the annual percentage rate calculation. Read on to learn about their concerns.
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CFTC publishes swap dealer registration FAQ
Posted Date: Friday, September 14, 2012
Which swaps are relevant to determining if a person is within the definition of swap dealer? When is a person required to apply to be registered as a swap dealer? The Commodity Futures Trading Commission answered these and other questions related to swap dealer registration in a set of recently-published answers to frequently asked questions. Read on for the details and a link to the FAQs.
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Muni advisor legislation reported to U.S. House
Posted Date: Friday, September 14, 2012
The U.S. House Financial Services Committee unanimously approved legislation that would amend Dodd-Frank to clarify the scope of the financial reform bill’s municipal advisor provisions. The legislative alternative arose after industry participants and lawmakers on both sides of the aisle said a proposed Securities and Exchange Commission rule seeking to implement Dodd-Frank’s municipal advisor registration provisions was overly broad. Read on to learn about the legislation.
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CFPB launches consumer advisory panel
Posted Date: Friday, September 14, 2012
The Consumer Financial Protection Bureau announced the appointment of 25 consumer experts from outside the federal government to its newly-formed Consumer Advisory Board. The panel will provide advice to CFPB leaders on a broad range of consumer financial issues and emerging market trends. The agency also unveiled advisory councils for community banks, credit unions and academic research.
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CFTC files enforcement complaint against retail forex firm
Posted Date: Wednesday, September 12, 2012
The Commodity Futures Trading Commission filed a civil enforcement complaint against a California man and his company, arguing that he failed to register in connection with his retail foreign currency trading business under the Commodity Exchange Act as amended in response to the Dodd-Frank Act.
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Industry groups concerned about proposed expansion of HOEPA
Posted Date: Wednesday, September 12, 2012
Trade associations representing banks and credit unions spoke out about the CFPB’s plan to expand the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protection Act. Read on to learn about their concerns and why one association wants the bureau to slow its rulemaking pace.
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ABA urges Volcker Rule repeal
Posted Date: Wednesday, September 12, 2012
One of the industry associations responding to a call for potential legislative alternatives to Dodd-Frank’s Volcker Rule isn’t mincing any words. The American Bankers Association said the provision’s complete repeal is the only way to avoid harming the banking industry, consumers and the economy. Read on to learn how the ABA and other industry participants said policymakers could better approach the issues the Volcker Rule was intended to address.
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CFPB outlines top servicer issues related to military homeowners
Posted Date: Wednesday, September 12, 2012
The CFPB is letting bank and nonbank mortgage servicers know that they will be expected to ensure that military members’ rights are protected, especially when those service members are required to relocate. Read on to learn about common issues the CFPB said mortgage servicers must watch for when dealing with their service member customers.
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Basel III proposals officially published
Posted Date: Friday, September 7, 2012
Did you have a hard time finding the Basel III proposals in the Federal Register? You’re not alone. Regulators released three proposals to implement the new capital requirements in early June; however, the proposals were not officially published until the end of August. Read on to learn about the proposals and how you can comment.
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Inside the CFPB’s new credit bureau exam manual
Posted Date: Friday, September 7, 2012
The CFPB released the procedures it will use as it scrutinizes credit bureaus and other consumer reporting companies under the agency’s nonbank examination program. Read on to learn more about the manual and specific issues the agency’s examiners will be looking for.
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Know your regulator: OCC names director of Enforcement and Compliance
Posted Date: Friday, September 7, 2012
The OCC named a new leader for the division that conducts investigations, recommends administrative actions and litigates those enforcement actions on the agency’s behalf. Read on to learn about the new director for Enforcement and Compliance.
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Community bankers clamor for TAG extension
Posted Date: Friday, September 7, 2012
A coalition of 80 state banking and community banking groups urged members of Congress to extend full FDIC coverage of noninterest bearing transaction accounts currently set to expire at the end of the year. Read on to learn why the groups said allowing the FDIC’s TAG program to sunset could create “disruption and uncertainty in the banking system.”
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Commenters spar over CFPB reverse mortgage inquiry
Posted Date: Friday, September 7, 2012
The CFPB recently announced it is seeking information on the reverse mortgage industry, and it appears the agency is getting an earful from consumer advocates and industry participants. The Consumers Union urged several reforms, including the establishment of a fiduciary responsibility for reverse mortgage lenders. Read on to learn about other reforms the organization is seeking, and why a group representing the nation’s federal credit unions said the bureau should wait before writing new rules for reverse mortgage lenders.
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Getting to know the CFPB’s whistleblower program
Posted Date: Thursday, September 6, 2012
Much has been said about Dodd-Frank’s whistleblower provisions related to potential securities law violations; however, the act also included protections for those who report potential violations of the federal consumer financial protection statutes to the CFPB and other regulators. Chris Willis, a partner at Ballard Spahr LLP, discussed these important provisions during a recent October Research LLC Webinar. Read on for the details.
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SEC says investors ‘lack basic financial literacy’
Posted Date: Wednesday, September 5, 2012
U.S. retail investors possess a weak grasp of basic financial concepts and generally lack the knowledge necessary to avoid getting ripped off, according to a recent report from the SEC. The report was mandated by the Dodd-Frank Act and discusses the hallmarks of effective investor education programs and methods to improve disclosures. Read on for the details.
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CFPB extends comment period for ‘finance charge’ definition
Posted Date: Wednesday, September 5, 2012
The CFPB will provide the public with more time to comment on the agency’s plan to change the way "finance charge" is defined for the purposes of calculating the annual percentage rate. The bureau would like to eliminate several exemptions from the finance charge to more accurately reflect a consumer’s cost of credit. Industry participants voiced concern that changing the way APR is calculated could impact which loans ultimately become subject to various legal protections. Read on to learn when comments are due.
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FDIC’s Gruenberg: Banking industry recovery ‘gradual but steady’
Posted Date: Wednesday, September 5, 2012
The commercial banking industry continued its slow but consistent recovery in the second quarter, according to new figures from the Federal Deposit Insurance Corp. The agency said almost two-thirds of institutions reported improvements in their quarterly net income from a year ago. Read on for the details.
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CFTC cross-border guidance receives cool industry reception
Posted Date: Wednesday, September 5, 2012
The CFTC’s proposed cross-border guidance related to the application of Title VII of the Dodd-Frank Act moves beyond congressional intent and threatens to disrupt the world swaps market, according to a pair of trade organizations. Read on to learn what concerns SIFMA and the ABA shared in recent comment letters.
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Trade groups ask Fed to change ‘swipe fee’ cap calculation
Posted Date: Friday, August 31, 2012
A coalition of banking and financial services organizations asked the Federal Reserve to include the costs associated with international fraud losses into the standard used to calculate debit card interchange fees. The groups also want the Fed to allow for the inclusion of previously excluded costs related to cardholder inquiries. Read on to learn why the associations are seeking changes to the debit card interchange fee standard.
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CFPB examination: Knowing the risks and what to expect
Posted Date: Friday, August 31, 2012
CFPB examinations began in earnest earlier this year at the nation’s larger bank and nonbank mortgage lenders. While the agency has yet to descend on many smaller institutions, it’s important for lenders of all sizes to take steps to prepare for potential bureau scrutiny. Two top industry attorneys discussed the CFPB examination process during a recent October Research LLC Webinar. Read on to learn what to expect during an examination and where the agency is likely to focus its attention.
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