Nonbank Financial

The House recently passed a pair of bipartisan measures tweaking Federal Reserve stress tests and the process of determining which financial institutions should undergo the most rigorous testing.

H.R. 4061, otherwise known as the “Financial Stability Oversight Council Improvement Act,” and H.R. 4293, also known as the “Stress Test Improvement Act of 2017,” seek to address concerns expressed on both sides of the political aisle.

Find out more about more about what the two bills could mean for nonbank financial companies supervised by the Fed.

Technology’s imprint on the financial industry will only continue to grow in magnitude, bringing with it a greater need to focus on compliance guidelines crafted to account for risks that did not exist in decades past.

Dodd Frank Update was in attendance for the “Digital Regulator Panel” at the Consumer Bankers Association’s 2018 Annual Convention, which consisted of Kelvin Chen of the Federal Reserve, Beth Knickerbocker of the Office of the Comptroller of the Currency and Dan Quan of the Consumer Financial Protection Bureau.

Find out what insight the regulators were able to share.

The size and scope of the impact a potential partnership between Amazon Inc. and some of the nation’s largest banks is unprecedented, but there are a variety of unknowns that would need to be addressed to make it a reality.

The Independent Community Bankers of America’s First Vice President of Payments and Technology Policy Cary Whaley and Group Executive Vice President of Regulatory Policy Viveca Ware spoke with Dodd Frank Update about the models Amazon and its potential banking partners are likely to explore.

Find out what hypotheticals they noted that both parties would have to keep in mind to make such a deal come to fruition.  

The House recently passed legislation that would codify the “valid when made” doctrine, stipulating that the interest rate of loan must not change after the loan is transferred to another person or entity, including when being sold from a depository institution to a non-bank, third party.

The bill is touted as a means of clarifying confusion created by the Second Circuit Court’s 2015 Madden v. Midland decision, however many national and state consumer groups have argued that it would open doors for predatory lenders.

Find out more about what the bill proposes and what arguments are being made for and against its enactment.

The Consumer Financial Protection Bureau (CFPB) has finalized revisions to its 2016 final rule governing prepaid accounts. The updates pertain to error resolution requirements, digital wallets and the rule’s effective date.

The finalized revisions reflect some of the changes the CFPB proposed in June 2017, but also differ in some ways. It also addresses issues raised during the public comment period that followed publication of the proposal, but not all.

Find out more details about how the finalized changes will impact covered entities. 

The Consumer Financial Protection Bureau (CFPB) announced that it will engage in rulemaking to allow the bureau to reassess its final rule regulating the payday lending and small-dollar lending industries.

House Republicans, as well as three Democrats, co-sponsored legislation introduced Dec. 1 proposing to use the Congressional Review Act to nullify the rule and prevent the bureau from issuing a similar rule in the future.

Find out more about this developing story and what it means for parties who wish to be registered information systems.

The Financial Stability Oversight Council has published its 2017 annual report, noting among other things the council’s position that regulations must be recalibrated to help promote economic growth.

The report details significant financial market and regulatory developments, how an influx of private capital could benefit the secondary mortgage market, potential emerging threats to the nation’s financial stability, recommendations for promoting financial stability and the council’s activities.

Find out more details about what recommendations the report contains. 

Opponents of fintech firms being treated as banks were pleased to learn that Social Financial Inc. recently withdrew its deposit insurance application with the Federal Deposit Insurance Corp. The company cited recent leadership changes as a main factor in its decision.

The announcement came shortly before a speech by Acting Comptroller of the Currency Keith Noreika reiterating his support for issuing bank charters for fintechs.

Find out more about the various viewpoints surrounding this matter. 

The Consumer Financial Protection Bureau’s (CFPB) 16th edition of its Supervisory Highlights highlighted multiple instances where improper communication practices led to compliance issues at certain banks, debt collection companies and credit card providers.

The report also offered new insight about what examiners will be looking for in relation to the bureau’s program directly supervising service providers.

Lackluster practices for communicating with customers can result in many feeling misled, and this report provides an in-depth look at numerous examples of how such occurrences can adversely affect a business.

Multiple congressional leaders are taking Equifax to task regarding the recent data breach that compromised sensitive information of approximately 143 million Americans.

Two House representatives want the credit reporting company to explain the circumstances surrounding the breach before Congress. Two senators have issued a written ultimatum requesting the company to disclose specific information about the breach and its consumer remediation plans.

With so much riding on the information compromised in this incident, be sure to stay on top of what is revealed by such inquiries.