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CFPB Dodd-Frank Rules: The Great Easter Egg Hunt (Part 3)
Posted Date: Wednesday, July 31, 2013
The Consumer Financial Protection Bureau’s new mortgage rules will shape the industry for years to come. But while many industry participants are focusing on the negative, Howard Lax of Bodman PLC is on the hunt for the rules’ hidden gems. This is the third in a series of articles highlighting provisions of the CFPB’s rules. This article discusses the revised Loan Originator Compensation Rule, 12 CFR §1026.36(d). Read on to learn about the changes to safe harbor factors that may be used to determine loan originator compensation, and proxies for loan terms that cannot be used to determine a loan originator’s compensation.
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Industry sounds off on CFPB’s latest proposed mortgage rule tweaks (Part 2)
Posted Date: Wednesday, July 31, 2013
Industry participants responded to the Consumer Financial Protection Bureau’s latest proposed mortgage rule modifications. In part two of this series, you’ll learn what some major trade groups had to say about the ability-to-repay rule’s points and fees calculation, the application of the bureau’s “rural” and “underserved” definitions and other issues. Read on for the details.
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CFTC announces latest Dodd-Frank clearing mandate milestone
Posted Date: Monday, July 29, 2013
Commodity pools, private funds and other market participants recently began clearing certain credit default swap indices as required under Dodd-Frank regulations adopted by the Commodity Futures Trading Commission. Read on for the details.
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Community bank regulatory relief bill introduced in Senate
Posted Date: Monday, July 29, 2013
Three members of the U.S. Senate Banking Committee unveiled legislation intended to provide regulatory relief to community banks. The bill would provide qualified mortgage status for any mortgage originated and held in portfolio for at least three years by a creditor with less than $10 billion in assets. Read on for the details.
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Senators pitch ‘21st Century Glass-Steagall’
Posted Date: Monday, July 29, 2013
A bi-partisan group of Senators introduced a measure billed as a modern version of Depression-Era legislation commonly known as the Glass-Steagall Act. The proposal would bar institutions that offer traditional banking services from participating in investment banking and other risky activities. Read on to learn about the bill.
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GSE-busting bill clears key U.S. House committee
Posted Date: Monday, July 29, 2013
The Republican-controlled U.S. House Financial Services Committee approved housing finance legislation that would liquidate government sponsored enterprises Fannie Mae and Freddie Mac. The bill, known as the Protecting American Taxpayers and Homeowners Act, or PATH Act, cleared the committee on July 24 on a mostly party-line vote following a contentious markup hearing. Read on for the details.
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Industry sounds off on CFPB’s latest proposed mortgage rule tweaks
Posted Date: Monday, July 29, 2013
Industry participants responded to the Consumer Financial Protection Bureau’s latest set of proposals that modify final mortgage rules, which take effect in January 2014. In part one of this two-part series, you’ll learn what two major trade associations had to say about the bureau’s proposal that amends its loan originator compensation and Regulation X mortgage servicing rules.
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CFPB faces new court challenge
Posted Date: Wednesday, July 24, 2013
A provider of outsourced support services to law firms filed a lawsuit challenging an alleged Consumer Financial Protection Bureau effort to collect sensitive data belonging to the clients of the firms the vendor supports. The company, Morgan Drexen Integrated Systems, and one of its attorney customers, argued the CFPB overstepped its authority by attempting to regulate lawyers in the practice of law. The lawsuit also challenges the constitutionality of Dodd-Frank provisions that created the CFPB. Read on for the details.
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Consumer bureau outlines financial literacy efforts
Posted Date: Wednesday, July 24, 2013
The Consumer Financial Protection Bureau released a Dodd-Frank-mandated report to Congress updating lawmakers on the agency’s effort to help consumers make positive financial decisions. Read on for the details.
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GAO to study CFPB data collection
Posted Date: Wednesday, July 24, 2013
The Government Accountability Office agreed to study the Consumer Financial Protection Bureau’s information gathering efforts. The probe comes at the request of U.S. Senate Banking Committee Ranking Member Mike Crapo, who has increasingly voiced concern over the scope of the CFPB’s data collection activities; the extent to which the agency is gathering personally identifiable information; and the CFPB’s ability to protect consumers’ sensitive information. Read on for the details.
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The Cordray confirmation: What it means and what’s next
Posted Date: Wednesday, July 24, 2013
A two-year battle over Richard Cordray’s nomination to lead the Consumer Financial Protection Bureau ended on July 16 when senators voted to confirm him to the bureau’s top job. The confirmation should bring certainty to industry participants by resolving questions regarding the legitimacy of the CFPB’s activities following Cordray’s controversial recess appointment last year. However, an outstanding debate over the bureau’s structure will likely rage on.
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CFPB sues mortgage company for alleged steering violations
Posted Date: Wednesday, July 24, 2013
The Consumer Financial Protection Bureau sued Utah-based Castle & Cooke Mortgage for alleged violations of the Federal Reserve’s loan originator compensation rule. The bureau said the firm’s employees received bonuses for pushing consumers into loans with higher interest rates. Read on for the details.
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Senate Democrats seek CFPB payroll card probe
Posted Date: Friday, July 19, 2013
A group of Senate Democrats urged the Consumer Financial Protection Bureau and the Department of Labor to investigate the fees and practices associated with pre-paid payroll cards, cards some employers use to disperse salaries to their employees instead of payroll checks or direct deposits. The lawmakers said the cards may violate existing consumer regulations. Read on for the details.
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More states using uniform mortgage test
Posted Date: Friday, July 19, 2013
Ten more states will begin using the new uniform state test component for mortgage loan originators and processors. Previously, originators were required to pass a national test component and a separate component for each state they wished to do business. This new test will replace the state-specific component for the states that adopt it.
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Senate Banking Committee leaders unveil FHA solvency proposal
Posted Date: Friday, July 19, 2013
The Republican and Democratic leaders of the U.S. Senate Banking Committee released draft legislation to bolster the financial condition of the Federal Housing Administration. The lawmakers said the bill would give the FHA the tools to strengthen its underwriting standards, enhance lender accountability and reform its reverse mortgage program. Read on for the details.
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Treasury’s Miller: Dodd-Frank nearing ‘substantial completion’
Posted Date: Friday, July 19, 2013
It’s been three years since the Dodd-Frank Act was signed into law, and the U.S. Senate Banking Committee recently marked the milestone by examining regulators’ progress toward implementing the legislation’s financial stability provisions. Leaders from the federal banking agencies discussed recent efforts to strengthen institutions’ regulatory capital while remaining cognizant of the impact of these efforts on community institutions. Read on for the details.
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Portfolio QM bill introduced in U.S. House
Posted Date: Friday, July 19, 2013
A bill to amend the Truth in Lending Act to provide qualified mortgage status to loans originated and held in portfolio was introduced recently in the U.S. House. Read on for the details.
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Senate confirms Cordray as CFPB director
Posted Date: Wednesday, July 17, 2013
A two-year battle over Richard Cordray’s nomination to lead the Consumer Financial Protection Bureau ended on July 16 when senators voted 66-34 to confirm him to the bureau’s top job. The GOP had blocked the nomination, but their threatened filibuster faded after Democrats and some Republicans struck a deal to permit several contested nominations to move forward. Read on for the details.
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Know your regulator: CFPB announces key hires
Posted Date: Wednesday, July 17, 2013
The Consumer Financial Protection Bureau added several members to senior positions within the agency. The positions are: chief operating officer; chief of staff; assistant director for the Office of Older Americans; and the program manager for Servicing and Securitization Markets. Read on to learn about the new faces in new places at the bureau.
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CFPB finalizes process for placing potentially naughty nonbanks under scrutiny
Posted Date: Wednesday, July 17, 2013
The Consumer Financial Protection Bureau finalized a rule establishing procedures to supervise nonbanks that may have engaged in activities that pose risks to consumers. The agency decided to craft the rule even though it is not required to do so under Dodd-Frank. Read on for the details.
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New rural and underserved counties list released by CFPB
Posted Date: Wednesday, July 17, 2013
The Consumer Financial Protection Bureau released its list of rural and underserved counties for 2014. The list applies to certain exemptions set forth under the agency’s new mortgage rules. The bureau is also working to address industry concerns with the scope of the “rural” and “underserved” definitions. Read on for the details.
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CFPB puts debt collectors on notice
Posted Date: Wednesday, July 17, 2013
The Consumer Financial Protection Bureau put companies under its jurisdiction on notice that the agency will be watching for unfair, deceptive and abusive debt collection practices. The bureau published two debt collection bulletins, released form letters consumers can use when corresponding with debt collectors, and announced it is now taking consumer complaints related to debt collection. Read on for the details.
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GOP backs off filibuster threat as Senate clears way for Cordray vote
Posted Date: Tuesday, July 16, 2013
Richard Cordray’s nomination to continue leading the Consumer Financial Protection Bureau cleared a key procedural hurdle on Tuesday, paving the way for a final vote. Republicans had threatened to block an up-or-down vote on Cordray, but the nomination ultimately proceeded after Republicans and Democrats reached a tentative agreement on numerous contentious nominations during a four-hour closed-door meeting on Monday night. Read on for the details.
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Senate confirmation showdown expected this week
Posted Date: Monday, July 15, 2013
Senate Democrats may be preparing to break a long-running stalemate with Republicans who have been holding up some key nominations — including Richard Cordray’s nomination to continue leading the Consumer Financial Protection Bureau. Last week, the Senate’s top Democrat submitted motions to close debate on several nominations, signaling he may be ready to make good on his threat to change the rules of the Senate in order to override a Republican filibuster.
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Agencies propose HPML appraisal rule exemptions
Posted Date: Monday, July 15, 2013
Six federal agencies released a proposal that would create exemptions from certain appraisal requirements set forth in a January interagency rule regarding higher-priced mortgage loans. The agencies said the proposed exemptions are intended to save borrowers time and money and promote the safety and soundness of creditors. Read on to learn about the proposal.
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CFTC finalizes cross-border guidance
Posted Date: Monday, July 15, 2013
The Commodity Futures Trading Commission finalized long-delayed guidance to clarify the application of its Dodd-Frank swaps rules to the cross-border activities of U.S. and foreign market participants. The panel approved the guidance on the same day temporary relief related to Dodd-Frank’s cross-border application was set to expire. Read on to learn about the guidance, the phase-in period and certain issues that must still be addressed.
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AIG, GE Capital first nonbanks designated for Fed supervision
Posted Date: Friday, July 12, 2013
American International Group Inc., the insurance giant that received a massive government bailout during the dark days of the financial crisis, was among the first two nonbank financial companies to be designated for Federal Reserve supervision under the Dodd-Frank Act on July 8. The Financial Stability Oversight Council also designated General Electric Capital Corp. Read on for the details.
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CFPB finalizes key ATR/QM, mortgage servicing rule amendments
Posted Date: Friday, July 12, 2013
The Consumer Financial Protection Bureau finalized important corrections, clarifications and amendments to its ability-to-repay/qualified mortgage and mortgage servicing rules. Read on for an in-depth look at the changes.
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Agencies propose new leverage requirements for largest banks
Posted Date: Friday, July 12, 2013
Federal regulators proposed a rule to beef up leverage requirements for the largest U.S. banks. The proposal follows the recent release of final rules implementing Basel III’s international capital guidelines in the United States. Read on for the details.
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U.S. House bill would liquidate GSEs, delay Dodd-Frank mortgage rules
Posted Date: Friday, July 12, 2013
The Republican leaders of the U.S. House Financial Services Committee released details of legislation intended to help create a sustainable housing finance system. The measure, known as the “Protecting American Taxpayers and Homeowners Act,” would mandate the liquidation of government sponsored enterprises Fannie Mae and Freddie Mac and would delay the implementation of pending Dodd-Frank mortgage rules. Read on for the details.
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CFPB releases new target date for mortgage disclosures final rule
Posted Date: Wednesday, July 10, 2013
Final rules that would merge the various mortgage disclosures required under the Real Estate Settlement Procedures Act and the Truth in Lending Act are expected this fall, according to an updated rulemaking agenda prepared by the CFPB. Read on to learn what the bureau had to say about this rulemaking and several other important rules the agency plans to address in the coming months.
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Court vacates SEC Dodd-Frank rule
Posted Date: Wednesday, July 10, 2013
A regulator that saw one of its Dodd-Frank rules vacated by a federal court in 2011 suffered another legal setback. A U.S. District Court judge tossed out the Securities and Exchange Commission’s resource extraction payments rule on July 2. Read on to learn about the court’s reasoning.
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CFTC to consider final cross-border guidance as deadline looms
Posted Date: Wednesday, July 10, 2013
The Commodity Futures Trading Commission is soon expected to finalize long-delayed guidance intended to address how the regulator’s new Dodd-Frank swaps rules apply beyond U.S. borders. Read on to learn more about the debate over the regulator’s cross-border policy.
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Appeals court upholds CFTC CPO registration rule
Posted Date: Wednesday, July 10, 2013
An agency criticized for its rulemaking procedures scored a victory in federal appeals court. The U.S. Court of Appeals for the District of Columbia Circuit upheld a Commodity Futures Trading Commission rule requiring certain advisors to register as commodity pool operators, rejecting claims that the regulator violated the Administrative Procedures Act when it promulgated the rule.
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CFPB unveils mortgage rule ‘readiness guide’
Posted Date: Wednesday, July 10, 2013
The Consumer Financial Protection Bureau released a guide to help institutions of all sizes gear up to comply with numerous mortgage rules issued in January. According to the CFPB, the 22-page guide highlights “key issue areas that may be closely examined” during a bureau review. Read on to learn about the guide.
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Fed unanimously approves Basel III regulatory capital reforms
Posted Date: Monday, July 8, 2013
The Federal Reserve Board approved a final rule to implement the Basel III regulatory capital reforms on July 2. While the governors characterized the new rules as providing a framework that will protect the overall health of the U.S. economy, some industry participants cautioned that the effects of the rule should be studied to see if adjustments need to be made to mitigate unintended consequences. Read on for the details.
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Senate committee unveils critical GSE questions in nomination hearing
Posted Date: Monday, July 8, 2013
The Senate Banking Committee held a hearing recently for Congressman Mel Watt, who was nominated by President Obama to be the director of the Federal Housing Finance Agency. Joining Watt in the hearing were four others who were nominated for posts in the Securities and Exchange Commission and National Credit Union Administration Board. Read on for an in-depth look at what Watt would bring to the position and what this position means to the future of housing finance.
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OCC revises lending limits rule, extends compliance date
Posted Date: Monday, July 8, 2013
The Officer of the Comptroller of the Currency issued its final lending limits rule, including several revisions suggested by commenters and extending the effective date of the remaining amendments made by the rule to Oct. 1. Read on to learn about some of the changes the agency made to the interim final rule that was originally published in 2012.
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Basel III elements a mixed bag for community bankers
Posted Date: Monday, July 8, 2013
Community bankers were quick to respond to the Federal Reserve’s vote to approve final rules implementing the Basel III regulatory capital standards, expressing gratitude for the rollback of some provisions, but airing their frustration over the Fed’s unwillingness to grant a full exclusion. Read on for the Federal Reserve’s explanation of the concessions, the community banker’s comments and to download the Fed’s community bank guide.
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Chopra outlines student loan fix for Senate committee
Posted Date: Monday, July 8, 2013
A CFPB ombudsman drew parallels between the student loan quandary and the mortgage crisis to provide possible solutions for preventing student loan default in the future. The ombudsman presented his ideas before the Senate Committee on Banking, Housing and Urban Affairs in late June. Read on for his take on which programs the bureau is finding success with to date and what the plans are for future measures.
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Senator requests GAO Investigation into CFPB data collection
Posted Date: Monday, July 8, 2013
The Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, requested that the Government Accountability Office investigate a data collection effort being undertaken by the Consumer Financial Protection Bureau on consumer spending habits. Read on for a full list of questions the Senator is requesting the GAO address in its report.
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Fed to consider Basel III rules
Posted Date: Friday, June 28, 2013
The Federal Reserve will hold an open meeting this week to finalize highly-anticipated rules that will implement Basel III’s capital requirements in the United States. Community bankers were concerned with several aspects of a proposed rule released by banking regulators last year. Read on for the details.
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CFPB establishes expectations for companies facing enforcement investigations
Posted Date: Friday, June 28, 2013
The Consumer Financial Protection Bureau released a bulletin outlining certain “responsible conduct” the agency looks for when a company becomes the subject of an enforcement investigation. The CFPB also recently said “responsible conduct” factored into a decision not to impose a civil monetary penalty in a bureau enforcement action. Read on for the details.
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U.S. Bank to refund military auto loan borrowers under CFPB consent order
Posted Date: Friday, June 28, 2013
The Consumer Financial Protection Bureau ordered U.S. Bank and a nonbank partner to refund a combined $6.5 million to more than 50,000 service members who participated in an auto loan program for active-duty military. Read on to learn what actions the companies took that factored into the CFPB’s decision not to seek a civil monetary penalty in the case.
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CFPB data requests may violate Dodd-Frank, U.S. Chamber says
Posted Date: Friday, June 28, 2013
The U.S. Chamber of Commerce says the Consumer Financial Protection Bureau is increasingly demanding that companies under its regulatory jurisdiction provide the agency with real-time data on individual consumers’ financial transactions. In a letter to CFPB Director Richard Cordray, the Chamber argued that these data demands may violate the Dodd-Frank Act. Read on for the details.
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CFTC commissioners debate pending expiration of Dodd-Frank cross-border relief
Posted Date: Friday, June 28, 2013
Members of the Commodity Futures Trading Commission are embroiled in a debate over the agency’s quest to finalize debated guidance governing how its Dodd-Frank derivatives rules will apply beyond U.S. borders. A temporary exemption related to Dodd-Frank’s cross-border application is set to expire on July 12. One CFTC commissioner recently said the agency should extend the relief so the agency and other foreign and domestic regulators can get their rules right. Another commissioner, however, said the agency “should not delay these policy judgments much longer.”
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Proposed Senate bill establishes new housing finance framework
Posted Date: Friday, June 28, 2013
A bi-partisan group of Senators introduced legislation intended to wind down government sponsored enterprises Fannie Mae and Freddie Mac and promote the return of private capital to the housing finance system. The bill would establish a new government entity, the Federal Mortgage Insurance Corp., to provide backstop insurance while mandating that private capital would bear the first risk of loss associated with mortgage backed securities issued through the FMIC. Read on for the details.
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