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Fed Final Rule: Securities Holding Company Registration
Posted Date: Tuesday, June 05, 2012
Some nonbanks will be permitted to register for Federal Reserve supervision and thus meet the requirements of some foreign regulators under final rules approved on May 25. Read on to learn about the registration procedures for these securities holding companies.
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Lawmakers weigh impact of SIFI designation
Posted Date: Tuesday, June 05, 2012
The nation’s largest nonbank financial companies are bracing as the Financial Stability Oversight Council prepares to implement its new process for designating certain companies for Federal Reserve scrutiny and enhanced prudential standards under the Dodd-Frank Act. Read on to learn about the implications of being labeled a systemically important financial institution.
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Hurry! Less than a week left to register for Summit!
Posted Date: Tuesday, June 05, 2012
The National Settlement Services and Compliance Summit is fast approaching. Have you reserved your spot at the nation’s No. 1 educational and networking event of the year? Read on for an exciting event offer that has already attracted hundreds of title agents, underwriters, mortgagers, technology companies and settlement services professionals nationwide.
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SIGTARP, CFPB and Treasury issue a fraud alert
Posted Date: Tuesday, June 05, 2012
The Office of the Special Inspector General for the Troubled Asset Relief Program, the Consumer Financial Protection Bureau and the U.S. Department of the Treasury issued a fraud alert to the armed services community to combat scams targeted at homeowners seeking to apply for mortgage assistance through the Home Affordable Modification Program and other federal programs.
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GAO identifies CFPB internal control issues
Posted Date: Tuesday, May 29, 2012
The Consumer Financial Protection Bureau suffered some growing pains in its first year of operation, according to a report from the Government Accountability Office. The GAO identified seven internal control issues “that could adversely affect CFPB’s ability to meet its internal control objectives.” Read on to learn about the issues and how the CFPB responded to the report.
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CFPB proposes process for placing potentially naughty nonbanks under scrutiny
Posted Date: Tuesday, May 29, 2012
The Consumer Financial Protection Bureau proposed a rule that would set up procedures to supervise nonbanks that may have engaged in activities that pose risks to consumers. Read on to learn about the proposal and why the agency decided to craft such a rule even though it is not required under Dodd-Frank.
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Consumer Bureau to test draft mortgage servicing forms
Posted Date: Tuesday, May 29, 2012
The Consumer Financial Protection bureau revealed plans to test draft mortgage servicing forms and disclosures. The agency is also gathering information related to the costs of complying with its new mortgage regulations. Read on for the details.
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CFTC roundtables to focus on Volcker Rule, DCM regulation
Posted Date: Tuesday, May 29, 2012
The Commodity Futures Trading Commission plans to hold a pair of public roundtables in the coming days. One of the roundtables will focus on the Volcker Rule, while the other is related to controversial proposed regulations implementing Core Principle 9 for designated contract markets.
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GAO identifies CFPB internal control issues
Posted Date: Friday, May 25, 2012
The Consumer Financial Protection Bureau suffered some growing pains in its first year of operation, according to a report from the Government Accountability Office. The GAO identified seven internal control issues “that could adversely affect CFPB’s ability to meet its internal control objectives.” Read on to learn about the issues and how the CFPB responded to the report.
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The CFPB’s latest target: prepaid cards
Posted Date: Friday, May 25, 2012
The Consumer Financial Protection Bureau plans to adopt new rules for the prepaid card market. The agency recently released a notice seeking the public’s input as it considers expanding existing federal electronic fund transfer protections to “reloadable” cards.
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Senators weigh JP Morgan loss and its impact on Dodd-Frank
Posted Date: Friday, May 25, 2012
The more than $2 billion trading loss suffered by JP Morgan Chase & Co. was the prime topic of discussion as the Senate Banking Committee launched a series of hearings on the rollout of the Dodd-Frank Act. Lawmakers quizzed the leaders of the Securities and Exchange Commission and the Commodity Futures Trading Commission on the JP Morgan matter, and its possible impact on the eventual scope of the Volcker Rule and the cross-border application of Dodd-Frank’s derivatives provisions.
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Large financial companies will fund FSOC, OFR under Treasury rules
Posted Date: Wednesday, May 23, 2012
Large financial companies will pay semi-annual assessments to fund the new Office of Financial Research under rules approved by the Treasury Department. The assessments, mandated by the Dodd-Frank Act, will also fund the work of the Financial Stability Oversight Council and cover certain Federal Deposit Insurance Corp. expenses. Read on to learn why the Treasury said it needs more information to determine how it will ultimately assess nonbanks supervised by the Federal Reserve.
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Ohio MBA coverage: CFPB’s LO compensation plan not as restrictive as it could have been
Posted Date: Wednesday, May 23, 2012
The Consumer Financial Protection Bureau plans to propose rules that will change the way loan originators are compensated and how they qualify for their jobs; however, some aspects of the agency’s rulemaking may ultimately not be as restrictive as they could have been. Ari Karen, of Offit Kurman, told attendees at the Ohio Mortgage Bankers Association Convention that the bureau is backing away from some “extreme” Dodd-Frank provisions.
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CFTC final rule: Record keeping and reporting for historical swaps
Posted Date: Wednesday, May 23, 2012
The Commodity Futures Trading Commission approved a final rule to specify what records must be kept and what data must be reported for historical swaps, swaps executed prior to passage of the Dodd-Frank Act and between the law’s enactment date and the applicable compliance date for swap data recordkeeping and reporting.
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SEC announces changes in Division of Trading and Markets
Posted Date: Tuesday, May 22, 2012
The Securities and Exchange Commission announced that James Burns will become a deputy director in the Division of Trading and Markets. Read on to learn about his new role and other recent changes at the SEC.
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Curry: Operational risk eclipsing credit risk as top OCC concern
Posted Date: Tuesday, May 22, 2012
The nation’s banks are making progress as they shore up their credit and capital positions in the wake of the financial crisis; however, the new comptroller of the currency said a different type of risk is rapidly gaining his agency’s attention. Read on to learn why Thomas Curry said banks and thrifts “must resist the temptation to under-invest in the systems and controls they need to prevent greater risk and larger losses in the future.”
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Senate OK’s Federal Reserve nominations
Posted Date: Monday, May 21, 2012
The Senate approved two nominations to the Federal Reserve Board of Governors. The votes on May 17 give the board a full panel of seven governors for the first time since 2006. Read on to learn about the new board members and the debate surrounding their confirmation.
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CFTC proposal would ease position limits rule’s aggregation provisions
Posted Date: Monday, May 21, 2012
The Commodity Futures Trading Commission proposed a rule that would modify the aggregation provisions of the agency’s Dodd-Frank position limits rule. The proposal would permit any person with an ownership interest of between 10 percent and 50 percent in an entity to disaggregate the owned entity’s positions, provided there are protections and firewalls in place to ensure trading decisions are made independently of one another.
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JP Morgan’s bad bet takes center stage in Dodd-Frank debate
Posted Date: Friday, May 18, 2012
The massive trading loss at JP Morgan Chase & Co. will be a main topic of discussion at several Dodd-Frank related hearings scheduled to take place in the coming weeks. Jamie Dimon, the company’s president and chief executive officer, is expected to testify. Read on to learn about the hearings.
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October Research announces top finalists for industry awards program
Posted Date: Friday, May 18, 2012
October Research LLC, publisher of The Title Report, The Legal Description, Valuation Review, RESPA News and Dodd Frank Update, announced the finalists for its inaugural 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.
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Regulators release stress testing guidance for big banks
Posted Date: Friday, May 18, 2012
Prudential regulators issued final supervisory guidance regarding stress testing practices at banking organizations with total consolidated assets of more than $10 billion. While the guidance does not implement Dodd-Frank’s stress testing provisions, the agencies said banks will be required to follow the principles set forth in the guidance when conducting stress tests under Dodd-Frank and other regulatory requirements.
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House Democrats propose overdraft overhaul
Posted Date: Friday, May 18, 2012
U.S. House Democrats backed a bill that would limit the number of overdraft fees banks charge their customers. The “Overdraft Protection Act of 2012” would also direct the Consumer Financial Protection Bureau to study pre-paid card overdraft programs. Read on to learn about the legislation.
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Regulators to community institutions: Don’t stress over big bank stress testing
Posted Date: Friday, May 18, 2012
Federal regulators are working on several initiatives related to stress testing at the nation’s large financial institutions, and community bankers expressed concern that those activities might result in heightened expectations for their intuitions. Prudential regulators recently responded to those concerns. Read on for the details.
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Ohio MBA coverage: Mortgage industry faces ‘two-by-four era’ of regulation
Posted Date: Thursday, May 17, 2012
The housing industry is showing signs of life, but continued uncertainty is among the factors holding back the nation’s economic recovery, according to Mortgage Bankers Association Chairman Mike Young. Dodd Frank Update was on site at the Ohio MBA Convention as Young discussed the challenges facing the mortgage industry. Read on for the details.
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CFTC gets help on cost-benefit analysis
Posted Date: Thursday, May 17, 2012
A federal agency under fire for its cost-benefit analysis functions will receive help as it crafts key definitional rules under the Dodd-Frank Act. The CFTC arranged for a staff member from the Office of Information and Regulatory Affairs to supplement staff efforts as regulators work to define the term “swap.” Read on to learn about this latest development in the debate surrounding CFTC cost-benefit analysis.
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Agencies clarify Section 716 effective date
Posted Date: Wednesday, May 16, 2012
Four federal agencies issued new guidance on May 10, addressing the effective date of Section 716 of the Dodd-Frank Act. Section 716 prohibits the provision of federal assistance to any entity defined under that section to be a swaps entity with respect to any swap, security-based swap, or other activity of the swaps entity. Read on for the analysis.
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Volcker says mortgage markets need massive changes
Posted Date: Wednesday, May 16, 2012
In his remarks before the Senate Banking Financial Institutions Subcommittee, former Federal Reserve Chairman Paul Volcker defended the Dodd-Frank Act rule bearing his name. Among his comments, he said the mortgage market is in need of massive structural changes. Read on to find out more.
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Ohio MBA coverage: Mortgage industry may be ‘losing ground’ in fight for QM safe harbor
Posted Date: Wednesday, May 16, 2012
The Consumer Financial Protection Bureau appears to be leaning toward adopting a rebuttable presumption of compliance structure as part of its qualified mortgage rulemaking, according to leaders at the Ohio Mortgage Bankers Association. Read on to learn why one association leader believes a QM rebuttable presumption could destroy the mortgage market.
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Rhetoric heats up around Volcker Rule in wake of JPMorgan losses
Posted Date: Wednesday, May 16, 2012
Political rhetoric is heating up around last week’s JPMorgan Chase & Co. announcement concerning $2 billion in derivatives trading losses, as regulators move closer to finalizing the Volcker Rule regulations. Regulators and lawmakers are promising a closer look at the events that led to the losses. Read on for the details.
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Industry open to FDIC's 'bridge holding company' plan for SIFIs
Posted Date: Wednesday, May 16, 2012
FDIC Acting Chairman Martin Gruenberg detailed the FDIC’s strategy for resolving large systemically important financial firms during the Federal Reserve Bank of Chicago Bank Structure Conference. His plan for a ‘bridge holding company’ was welcomed by industry associations. Read on for an analysis of the FDIC’s plan and for industry reaction.
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CFTC once again seeks to extend swap regulation effective date
Posted Date: Wednesday, May 16, 2012
The Commodity Futures Trading Commission is once again seeking to extend the effective date for swap regulation, as the agency continues to struggle with some of the more complicated provisions. Read on for details on the proposed order.
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CFTC releases 2012 draft rulemaking schedule
Posted Date: Wednesday, May 16, 2012
The CFTC released a draft 2012 rulemaking schedule that details upcoming votes on a wide range of subject matter, including foundational rules, clearing, trading, reporting and position limits. Read on for the detailed list.
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U.S. CEOs pushing Congress to protect derivatives end-users
Posted Date: Wednesday, May 16, 2012
An association of chief executive officers sent a letter to members of the U.S. Senate urging the members to pass two bills recently approved by the House. The group’s concern is that without the swift passage of these two bi-partisan bills, major U.S. companies would be burdened by “unnecessary and costly regulations, which would lead to decreased competitiveness and kill jobs.” Read on for the details.
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The CFPB is coming! Shapiro to speak at 2012 Summit
Posted Date: Monday, May 14, 2012
Erica Meyer, owner and publisher of October Research LLC, announced that Barton Shapiro, senior advisor for Small Business, Community Banks and Credit Unions at the Consumer Financial Protection Bureau, will speak at the 2012 National Settlement Services and Compliance Summit, to take place in Cleveland, Ohio, June 12-13.
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MBA coverage: CFPB seeking ‘common sense’ ability to repay rule
Posted Date: Monday, May 14, 2012
The deputy director of the nation’s consumer watchdog said mortgage reform is “front and center” on his agency’s agenda. Dodd Frank Update was on hand at the Mortgage Bankers Association National Secondary Market Conference as Raj Date discussed the CFPB’s effort to implement Dodd-Frank’s ability to repay and qualified mortgage provisions.
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Community lenders: ‘No end in sight’ to new compliance burdens
Posted Date: Monday, May 14, 2012
House lawmakers examining the rollout of the Dodd-Frank Act continue to focus their attention on the challenges facing the nation’s community banks and credit unions. During a recent hearing, members of the Subcommittee on Financial Intuitions and Consumer Credit weighed the impact of new compliance costs on the health of small financial institutions. Read on to learn what community lenders had to say about where compliance costs are likely to head in the future.
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CFTC final rule: Designated contract market core principles
Posted Date: Monday, May 14, 2012
The Commodity Futures Trading Commission unanimously adopted new and revised rules, guidance and practices governing the designation and operation of designated contract markets, boards of trade regulated by the CFTC. Read on to learn why the commission delayed adoption of a provision that would have required that 85 percent of the total trading volume in any contract listed on the DCM consist of centralized market trading.
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Walsh to depart OCC
Posted Date: Monday, May 14, 2012
John Walsh, senior deputy comptroller of the currency and former OCC acting director, plans to retire this summer. Read on to learn who will replace Walsh as the OCC’s chief of staff.
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CFPB releases details on loan originator compensation rulemaking
Posted Date: Monday, May 14, 2012
The Consumer Financial Protection Bureau released details of its effort to craft sweeping rules under the Dodd-Frank Act intended to change the way loan originators are compensated. The plan the CFPB is considering would also change the way loan originators qualify for their jobs.
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Industry groups charge Fed proposal is intended to shrink big financial companies
Posted Date: Tuesday, May 08, 2012
A host of industry associations said portions of the Federal Reserve’s plan to implement new requirements for the nation’s largest financial institutions under the Dodd-Frank Act appear aimed at reducing the size of big banks. The groups also urged federal regulators to harmonize their Dodd-Frank stress testing requirements.
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Live MBA coverage: Stevens says QM is ‘most important’ mortgage rule
Posted Date: Tuesday, May 08, 2012
Uncertainty among industry participants and consumers, coupled with an over tightening of regulations, are among the greatest impediments to the recovery of the real estate market and the broader economy, Mortgage Bankers Association President Dave Stephens said during the MBA’s National Secondary Market Conference in New York. Read on to learn which proposed Dodd-Frank regulation causes him the most concern.
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Will CFPB scrutiny mark the death of free checking?
Posted Date: Tuesday, May 08, 2012
Fitch Ratings said the Consumer Financial Protection Bureau’s continued focus on banks’ overdraft practices, along with other regulatory and legislative changes, could sound the death knell for free checking programs. Read on for the details.
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Consumer bureau beefs up supervision force
Posted Date: Tuesday, May 08, 2012
The Consumer Financial Protection Bureau focused on expanding its supervision capacity as the new agency builds itself from the ground up. Read on to learn about the CFPB’s recent recruitment efforts.
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Trade group suggests changes to CFPB small business panel process
Posted Date: Tuesday, May 08, 2012
The American Bankers Association urged the Consumer Financial Protection Bureau to change the way the regulator administers the small business panels required for some of its rulemakings. Read on to learn what issues the association identified when the bureau recently convened a small business panel to discuss efforts to merge various mortgage disclosures as required under Dodd-Frank.
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House lawmakers want more info on CFPB budget
Posted Date: Monday, May 07, 2012
The Consumer Financial Protection Bureau has been “wholly unresponsive” to lawmakers requesting information about the agency’s budget, according to top Republicans on the House Subcommittee on Oversight and Investigations. Read on to learn what information the lawmakers want CFPB Director Richard Cordray to provide.
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Groups battle over broker-dealer standard of conduct
Posted Date: Monday, May 07, 2012
Industry groups and consumer advocates continue to battle over one of the contentious issues raised by Title IX of the Dodd-Frank Act –– the regulation of broker-dealers and investment advisors. Read on for an update on the debate over the standard of conduct that should apply to these financial intermediaries.
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CFTC proposes SDR indemnification exemption for foreign regulators
Posted Date: Friday, May 04, 2012
The Commodity Futures Trading Commission unanimously voted to issue a proposed interpretative statement regarding Dodd-Frank’s confidentiality and indemnification provisions. The CFTC’s proposal generally exempts foreign regulators from the indemnification and confidentiality provisions in order to ensure that foreign regulators have access to data in swap data repositories. Read on for an update on the indemnification and confidentially issue.
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CFTC to consider final rule for DCMs
Posted Date: Friday, May 04, 2012
The Commodity Futures Trading Commission is expected to consider a final rule setting forth requirements for designated contract markets at an upcoming public meeting. The agency will also consider a proposed order amending the effective date for swap regulation. Read on for the details.
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California lawmakers advance Dodd-Frank reinsurance bill
Posted Date: Friday, May 04, 2012
A bill intended to align California law with Dodd-Frank’s reinsurance provisions advanced in the state legislature. Proponents say the measure would provide the state insurance commissioner with the authority and regulatory tools necessary to oversee new activities in the business of reinsurance. Read on to learn about the legislation.
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Ohio lenders discuss compliance challenges
Posted Date: Friday, May 04, 2012
Top regulators seeking to build a more stable U.S. banking system vowed to remain attuned to the needs of community financial institutions, but some small lenders told members of Congress that those promises are not being realized on the ground. Representatives from Ohio banks and credit unions discussed the challenges they face in this new era of regulation during an April 16 field hearing. Read on for the details.
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International stability panel crafts mortgage underwriting principles
Posted Date: Friday, May 04, 2012
The Financial Stability Board, an international body tasked with crafting regulatory policies intended to promote the health of the global financial system, released a set of residential mortgage underwriting principles. Aspects of the framework mirror reforms U.S. regulators are working to implement under the Dodd-Frank Act. Read on to learn about the principles set forth by the FSB.
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Fed outlines early impact of new debit card interchange caps
Posted Date: Thursday, May 03, 2012
Debit card interchange caps enacted under the Dodd-Frank Act’s Durbin Amendment significantly reduced the fees some issuers receive, according to a report from the Federal Reserve. Read on to learn what the report had to say about fees collected by smaller issuers and others that are exempt from the rule.
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GAO approves DIF calculations despite finding flaws
Posted Date: Thursday, May 03, 2012
A report from the Government Accountability Office identified deficiencies in the process the Federal Deposit Insurance Corp. uses to estimate certain losses to the Deposit Insurance Fund. Even so, the GAO approved the FDIC’s 2011 and 2010 financial statements for the DIF and the Federal Savings and Loan Insurance Corp. Resolution Fund. Read on for the details.
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Mortgage, real estate, investment industries clamor for QM safe harbor
Posted Date: Wednesday, May 02, 2012
A group of nearly two dozen trade associations asked the Consumer Financial Protection Bureau to establish a legal safe harbor for lenders who will need to comply with Dodd-Frank rules requiring loan originators to verify and document a borrower’s ability to repay before making a mortgage loan. Read on for an update on the debate surrounding this key provision.
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World policymakers to help domestic regulators address big financial companies
Posted Date: Tuesday, May 01, 2012
The international body tasked with developing regulatory policies in the interest of world financial stability is crafting a framework aimed at helping domestic regulators respond to systemically important financial institutions within their jurisdictions. Read on to learn more about the Financial Stability Board’s efforts.
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Experts scrutinize Fed’s stress testing models
Posted Date: Tuesday, May 01, 2012
A panel of experts from some of the country’s top schools will help the Federal Reserve asses the models it uses to stress test mega financial companies. Read on to learn about the Fed’s Model Validation Council and other efforts to improve stress testing.
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Consumer bureau involved in additional TILA cases
Posted Date: Tuesday, May 01, 2012
The Consumer Financial Protection Bureau again weighed in on the issue of whether borrowers must file a lawsuit within three years of closing the loan under the Truth in Lending Act’s right of rescission provisions. Read on to learn about court briefs the agency recently filed.
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SEC finalizes ‘security-based swap dealer’ definition
Posted Date: Tuesday, May 01, 2012
Two agencies charged with regulating the nation’s massive derivatives marketplace finalized long-awaited rules defining the range of swaps participants. The key rules that specify which entities will face new requirements under the act have been the subject of heated debate. In the third part of this three-part report, Dodd Frank Update examines the SEC’s new “security-based swap dealer” definition.
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CFTC final rule: Commodity options
Posted Date: Tuesday, May 01, 2012
Commodity options transactions will follow the rules applicable to other swaps under a final rule unanimously adopted by the Commodity Futures Trading Commission. The agency also adopted an interim final rule to provide a trade option exemption for certain physically delivered commodity options used for commercial activities. Read on to learn about the rulemaking.
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