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Dodd-Frank in 2013: What’s certain and what isn’t
Posted Date: Wednesday, January 2, 2013
Mortgage industry leaders said uncertainty and an over tightening of regulations represented a major drag on the recovery of the real estate market and the broader economy in 2012. While the amount of regulation under the Dodd-Frank Act will certainly not decrease in 2013, some measure of clarity is coming for industry participants who have been groping through a maze of rule proposals and guidance emanating from the Consumer Financial Protection Bureau. Read on for a look at what the future may hold for Dodd-Frank in the New Year.
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ABA sends regulators Volcker Rule wish list
Posted Date: Wednesday, December 19, 2012
The American Bankers Association urged regulators working to implement Dodd-Frank’s Volcker Rule to issue a compliance roadmap for community institutions and give institutions at least two years to conform their operations to the final rule. The ABA’s request came after Federal Reserve Chairman Ben Bernanke said the agencies hope to finalize a rule in early 2013.
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One office to oversee CFPB nonbank, large bank examinations
Posted Date: Wednesday, December 19, 2012
Examinations of banks and nonbanks within the Consumer Financial Protection Bureau’s supervisory ambit will be directed by one office under a reorganization plan unveiled by the agency on Dec. 17. Until now, the CFPB’s supervision function has been organized into offices for Nonbank and Large Bank Supervision. Steve Antonakes, the bureau’s associate director for Supervision, Enforcement and Fair Lending, said the agency will still have two supervision offices at headquarters after the reorganization — one focused on examinations and the other focused on policy.
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Fed proposes requirements for foreign banks
Posted Date: Wednesday, December 19, 2012
A foreign bank with significant U.S. operations would be required to create an intermediate holding company over its U.S. subsidiaries under rules proposed by the Federal Reserve. The agency said this structure would help facilitate consistent and enhanced supervision and regulation of foreign banks’ U.S. operations. Foreign banks would also be required to maintain stronger capital and liquidity positions in the United States. Read on for the details.
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Bureau to permit company-run trial disclosure programs
Posted Date: Wednesday, December 19, 2012
Companies would be permitted to test new consumer disclosures on a case-by-case basis under a policy proposed by the Consumer Financial Protection Bureau. The proposal is part of the bureau’s Project Catalyst initiative. Read on for the details.
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House Republicans criticize CFTC implementation efforts
Posted Date: Wednesday, December 19, 2012
Title VII of the Dodd-Frank Act imbued the Commodity Futures Trading Commission with broad rulemaking responsibilities aimed at regulating the nation’s swaps market. Spurred by aggressive statutory deadlines, the agency was among the first regulators to finalize the bulk of its Dodd-Frank rules and move toward implementation.
The CFTC’s recent policymaking efforts and its implementation travails were the topic of a pair of recent U.S. House subcommittee hearings.
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CFPB privileged information legislation passes Senate
Posted Date: Friday, December 14, 2012
The U.S. Senate approved legislation intended to ensure that financial institutions’ privileged information remains protected when it is submitted to the Consumer Financial Protection Bureau as part of the supervisory process. The measure now awaits President Barack Obama’s signature.
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CFPB sharing consumer complaint data with states
Posted Date: Friday, December 14, 2012
The Consumer Financial Protection Bureau is now sharing the consumer complaints it receives about credit cards, mortgages, student loans and other financial products with state agencies. States agencies can only view the CFPB’s consumer complaint data; however, the CFPB said it is working to build a system that will allow the states to share complaint information with the bureau. Read on to learn about the goal of the CFPB’s complaint data sharing efforts.
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Alleged mortgage modification scams halted by CFPB
Posted Date: Friday, December 14, 2012
Federal judges in California agreed to shut down a pair of mortgage loan modification operations the Consumer Financial Protection Bureau said ripped off thousands of struggling homeowners. The bureau said the operations together took in more than $10 million by charging consumers for services that falsely promised to prevent foreclosures or renegotiate troubled mortgages.
The courts ordered a halt to operations involving the Gordon Law Firm and the National Legal Help Center, freezing the businesses’ assets while the CFPB moves forward with the cases.
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TAG extension stalls in the Senate
Posted Date: Friday, December 14, 2012
A bill that would extend the Federal Deposit Insurance Corp.’s unlimited coverage for certain noninterest-bearing accounts beyond Dec. 31 stalled in the Senate after failing to clear a procedural hurdle. Read on for the details.
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Study establishes CFPB’s ‘baseline knowledge’ about the credit reporting industry
Posted Date: Friday, December 14, 2012
The Consumer Financial Protection Bureau released a sweeping report detailing how the nation’s largest credit bureaus collect, organize and maintain consumer credit information. The report found credit card history makes up more than half of the information on an average credit report and that most of the information provided to the major credit bureaus comes from just a few large companies. The report also highlighted particular areas where credit report errors can occur and the challenges consumers sometimes face when they attempt to dispute potential inaccuracies.
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Fair lending a likely bureau priority in 2013
Posted Date: Tuesday, December 11, 2012
Fair lending issues are expected to be a key focus area for the Consumer Financial Protection Bureau in the New Year. A CFPB report indicated that while the bureau is still building its fair lending program, the agency is laying the groundwork for new rules related to the Equal Credit Opportunity Act, Home Mortgage Disclosure Act and Truth in Lending Act. The bureau also announced a new partnership with the Department of Justice intended to help the agencies strengthen coordination on fair lending enforcement.
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MMF reforms could cause money to flow to unregulated funds, SEC commissioner warns
Posted Date: Tuesday, December 11, 2012
Securities and Exchange Commission policymakers are considering whether reforms intended to increase the transparency of money market funds could spur the flow of assets to unregulated funds, an SEC commissioner said. Luis Aguilar added the issue represents a significant systemic risk concern that was initially unaddressed by SEC staff. Read on for the details.
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2013 National Settlement Services Summit to facilitate Growth by Design
Posted Date: Tuesday, December 11, 2012
October Research LLC, publisher of Dodd Frank Update, announced it has selected the theme Growth by Design for the 2013 National Settlement Services Summit. For nearly a decade, the summit has expertly fused education with business development in the title insurance, mortgage and settlement services space and has become the premier event in the title insurance industry. Read on to learn about this year’s summit.
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Health of FHA insurance fund linked to housing recovery: HUD’s Donovan
Posted Date: Tuesday, December 11, 2012
The Department of Housing and Urban Development is taking steps to help prevent a potential bailout of the Federal Housing Administration’s Insurance fund. However, the fund’s ultimate health likely hinges on the continued recovery of the nation’s housing market. The government fund intended to protect mortgage lenders from the default of loans made through the FHA had a negative balance of $16.3 billion at the end of September. HUD Secretary Shaun Donovan discussed his agency’s efforts to bolster the fund during a recent hearing before the Senate Banking Committee. Read on for the details.
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CFTC responds to industry concerns with flurry of no-action letters
Posted Date: Tuesday, December 11, 2012
The Commodity Futures Trading Commission continues to release a steady stream of no-action letters delaying compliance requirements for elements of its new swaps regulatory regime. Republican CFTC Commissioner Scott O’Malia said the various exemptions make the agency’s rulemakings “resemble Swiss cheese.” However, he said the commission must ensure certainty for industry participants by working swiftly to provide necessary relief ahead of a Dec. 31 implementation deadline. Lawmakers have scheduled two hearings this week to consider the impact of Dodd-Frank’s derivatives reforms.
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Know your regulator: See who’s leaving the SEC
Posted Date: Tuesday, December 11, 2012
Securities and Exchange Commission Chairman Mary Schapiro isn’t the only key agency player stepping down as 2012 comes to a close. The commission recently announced three other leaders who helped implement Dodd-Frank’s requirements are leaving their posts. Read on for the details.
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Chicago, CFPB to share information on financial fraud
Posted Date: Monday, December 10, 2012
The Consumer Financial Protection Bureau and the City of Chicago agreed to share information related to financial fraud. The pact represents the first such information sharing agreement between the CFPB and a city. Read on for the details.
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CFPB defends scope of SAFE Act exemption for nonprofits
Posted Date: Monday, December 10, 2012
A nonprofit community advocacy group that provides mortgage services filed a lawsuit targeting government rules implementing the Secure and Fair Enforcement for Mortgage Licensing Act. The Neighborhood Assistance Corp. of America argued regulators specifically structured the rules in a manner that would punish NACA for advocacy that had seen the organization at odds with the government.
NACA brought claims against the government under the Administrative Procedures Act, arguing regulators failed to give proper notice before crafting a SAFE Act exemption the group felt should have been structured to cover their organization. Read on to learn how the Consumer Financial Protection Bureau responded to the claim and what the court decided.
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Community bank, credit union groups battle over potential TAG extension
Posted Date: Monday, December 10, 2012
The potential extension of Dodd-Frank’s transaction account guarantee provisions sparked a heated debate between advocacy groups representing the banking and credit union industries. The American Bankers Association and Independent Community Bankers of America called on Senate lawmakers to extend the Federal Deposit Insurance Corp’s. unlimited coverage for certain noninterest-bearing accounts for an additional two years. However, a credit union group said Dodd-Frank’s TAG provisions are no longer necessary and should be permitted to expire. The group also argued Congress should raise a statutory cap on credit union business lending.
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Enforcement attorneys’ role in supervision reviewed by CFPB ombudsman
Posted Date: Monday, December 10, 2012
Enforcement attorneys are often involved when the Consumer Financial Protection Bureau scrutinizes firms within its supervisory ambit. Industry participants decried the CFPB’s decision to include enforcement attorneys at the beginning, middle and end of the supervision examination. The CFPB’s ombudsman looked into the issue and made some recommendations regarding the policy’s implementation. Read on for the details.
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Specialty credit reporting companies receive CFPB nastygram
Posted Date: Tuesday, December 4, 2012
Numerous specialty credit reporting agencies were put on notice that their processes for ensuring consumers have access to their credit reports may be lacking. The Consumer Financial Protection Bureau issued warning letters to several companies the agency said may be violating federal law by failing to provide consumers with a streamlined process for accessing the reports. The agency also released a bulletin to nationwide specialty consumer reporting agencies underscoring their responsibilities under federal law.
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CFTC heralds completion of central clearing rulemakings
Posted Date: Tuesday, December 4, 2012
Swap dealers and large hedge funds will be required to clear certain swaps starting in March 2013, under final rules unanimously approved by the Commodity Futures Trading Commission. The CFTC’s first final clearing determination completes the agency’s effort to establish a regulatory framework for central clearing as mandated by Dodd-Frank.
The final rules require certain credit default swaps and interest rate swaps to be cleared by registered derivatives clearing organizations. Under the determination, market participants are required to submit a swap that is identified in the rule for clearing by a DCO as soon as technologically practicable and no later than the end of the day of execution.
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Rep. Frank presses for SEC, CFTC merger
Posted Date: Tuesday, December 4, 2012
Rep. Barney Frank, D-Mass., the retiring co-architect of the Dodd-Frank Act, proposed legislation that would merge the Commodity Futures Trading Commission and the Securities and Exchange Commission to create one regulator that oversees the securities, derivatives, options, futures and other markets.
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Three Volcker Rules won’t cut it, Reps. Bachus, Hensarling say
Posted Date: Tuesday, December 4, 2012
The Republican leaders of the U.S. House Financial Services Committee asked regulators working to implement Dodd-Frank’s ban on banks’ proprietary trading, commonly known as the Volcker Rule, to issue one final rule as opposed to multiple rules. They also called on the agencies to give industry participants two years to comply with the rule’s requirements once they are finalized.
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Rulemaking seeks to retain scope of Bank Secrecy Act reporting requirements
Posted Date: Tuesday, December 4, 2012
A proposed rule amendment is intended to ensure that financial institutions continue to collect and retain information on certain funds transfers to aid in the detection, investigation and prosecution of money laundering and other financial crimes. Without the amendment, regulators said recent changes to the Electronic Fund Transfer Act under the Consumer Financial Protection Bureau’s new remittance transfer rule would lead some transfers to be inappropriately excluded from certain requirements.
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Regulators say they have ‘gotten the message’ on Basel III mortgage issues
Posted Date: Tuesday, December 4, 2012
Representatives from the government agencies seeking to implement Basel III’s requirements in the United States told U.S. House lawmakers they are heeding concerns raised by community bankers and plan to make changes to their rule proposals. Industry participants discussed several issues during a recent hearing before two House Financial Services subcommittees. Of particular concern is the proposed rules’ potential impact on mortgage lending and how new mortgage risk weights could interact with other mortgage rules mandated by Dodd-Frank. One regulator said the agencies are looking closely at this issue.
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Visa subject of Durbin Amendment probe
Posted Date: Friday, November 30, 2012
The Federal Trade Commission is looking into whether Visa Inc. violated provisions of Dodd-Frank’s Durbin Amendment, according to a recent company filing. The global payments network said it is cooperating after the FTC’s Bureau of Competition requested that the company provide certain documents and information on a voluntary basis. Read on for the details.
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Remittance transfer rule to be placed on temporary hold
Posted Date: Friday, November 30, 2012
Institutions providing international remittance transfers will have a little extra time to comply with new rules from the Consumer Financial Protection Bureau. The CFPB said a forthcoming proposal will refine three elements of its rule pertaining to international remittance transfers. The proposed adjustments are intended to facilitate implementation and compliance with the rule’s requirements while maintaining new consumer protections. The CFPB will also propose an extension of the rule’s effective date.
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FX swaps and forwards exempted from clearing, exchange-trading requirements
Posted Date: Friday, November 30, 2012
FX swaps and forwards will not be subject to new derivatives requirements, including central clearing and exchange trading, under a final determination issued by the Treasury Department. Dodd-Frank gave the Treasury authority to determine whether certain swaps requirements should apply to FX swaps and forwards. Some commenters argued that the proposed exemption would create a loophole that could serve to undermine financial stability. Read on to learn why the Treasury ultimately decided to exempt FX swaps and forwards from certain Dodd-Frank requirements.
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Charter conversion restrictions discussed in interagency statement
Posted Date: Friday, November 30, 2012
Charter conversion restrictions for troubled banks under Section 612 of the Dodd-Frank Act were the topic of a recent bulletin released by state and federal regulators. The interagency statement explained the circumstances under which charter conversions are generally banned. Regulators also discussed situations where an institution may be eligible for an exception from the charter conversion restrictions.
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Dodd-Frank requirements will drive SEC rulemaking agenda in 2013
Posted Date: Friday, November 30, 2012
The Securities and Exchange Commission pursued a “robust, investor-focused” rulemaking agenda and maintained an aggressive enforcement posture in FY 2012, according to the agency’s recently released annual report. Read on to learn about the SEC’s 2013 rulemaking goals and some of the challenges the regulator faces.
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CFTC issues no-action letter for swap data reporting requirements
Posted Date: Friday, November 30, 2012
The staff of the Commodity Futures Trading Commission issued limited no-action relief from certain Dodd-Frank swap data reporting requirements after industry participants said the initial compliance timelines set forth by the regulator could facilitate the identification of parties to swaps in violation of commission regulations. An industry group also argued that requiring firms to begin reporting historical swaps data on the same date as those firms comply with other swaps reporting requirements would present significant technological and operational challenges.
The no-action letter establishes a common monthly date by which all newly registered swap dealers must be in compliance with their reporting obligations under the commission’s swap data reporting rules and extends the deadline for reporting historical swap transaction data. Read on to learn about the new compliance deadlines.
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