Dodd-Frank News Center

CFPB issues special edition of 'Supervisory Highlights'

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has issued a special edition of “Supervisory Highlights” that reports examination findings in the areas of consumer reporting and furnishing of information to consumer reporting companies pursuant to the Fair Credit Reporting Act and Regulation V. The Bureau said the report does not impose any new or different legal requirements and that all violations described in the report are based on the specific facts and circumstances reviewed by the Bureau as part of its examinations.

Calabria issues statement on FSOC's issuance of nonbank designation guidance

This story appeared in Bank Digest.                                   

Federal Housing Finance Agency Director Mark A. Calabria has issued a statement on the recent Financial Stability Oversight Council principals meeting, at which the Council approved final guidance regarding nonbank financial company designations. Calabria noted in his statement that one of the FSOC's core purposes under the Dodd-Frank Act is to end bailouts, but he said he was concerned that actions taken just over a decade ago, such as the establishment of the Troubled Asset Relief Program, reinforced the expectation of bailouts.

Calabria went on to say that he believed the guidance on nonbank designations the FSOC had approved was an important step towards ending bailouts. According to Calabria, "Some of the previous nonbank designations were done in such a manner that raised the possibility that designated entities would be perceived as 'too big to fail.' In doing so, the Council ran the risk that a designation would distort market expectations and reduce market discipline, contrary to its statutory purposes. I believe the approach the Council adopted yesterday reduces that risk."

FSOC issues 2019 Annual Report

This story appeared in Bank Digest.                                   

The Financial Stability Oversight Council has released its 2019 Annual Report, which describes, among other things, significant financial market and regulatory developments, potential emerging threats to U.S. financial stability, recommendations to promote U.S. financial stability, and the activities of the Council.

FSOC issues final guidance on nonbank financial company designations

This story appeared in Bank Digest.                                   

The Financial Stability Oversight Council has issued final guidance regarding nonbank financial company designations. According to a press release, the guidance implements an activities-based approach for identifying and addressing potential risks to financial stability and enhances the analytical rigor and transparency of the Council's process for designating nonbank financial companies.

The final guidance revises and updates the interpretive guidance the FSOC adopted in 2012 to ensure its work is clear, transparent, and analytically rigorous and to enhance the Council's engagement with companies, regulators, and other stakeholders. The guidance is effective 30 days after its publication in the Federal Register.

CFPB proposes changes to Remittance Rule

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has issued a Notice of Proposed Rulemaking relating to the Remittance Rule, which generally requires companies that provide remittance transfers in the normal course of business to disclose to consumers certain fees and the exchange rates that apply to transfers. The rule also includes an exception that allows certain banks and credit unions to estimate certain fee and exchange rate information instead of disclosing exact amounts in certain circumstances, but this exception expires by statute in July 2020, the CFPB said.

According to the Bureau's release, the NPRM proposes to allow certain banks and credit unions to continue to provide estimates under certain conditions where it could be economically infeasible for these institutions to provide exact disclosures. The Bureau is also proposing to increase the safe harbor threshold that determines whether a company makes remittance transfers in the normal course of its business and is subject to the rule.

Comments on the NPRM must be received within 45 days of its publication in the Federal Register.

FCRA maximum disclosure charges to remain the same for 2020

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has announced the ceiling on allowable charges consumer reporting agencies may issue to consumers in 2020 for disclosures under the Fair Credit Reporting Act. The Bureau said the maximum allowable charge will remain at $12.50 for 2020, as it was for 2019. The Bureau is required to update this amount annually.

 

CFPB issues report on differences between large and small mortgage servicers

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released a report examining the differences between large and small mortgage servicers. The report found that smaller servicers, such as community banks and credit unions, play an outsize role in rural areas, that the loans they service are less likely to be sold to Fannie Mae or Freddie Mac or to be government-backed, and that during the financial crisis they experienced lower delinquencies.

FDIC corrects 'stress testing requirements' final rule

This story appeared in Bank Digest.                                   

The Federal Deposit Insurance Corporation is correcting a final rule published on Oct. 24, 2019, regarding Company-Run Stress Testing Requirements for FDIC-Supervised State Nonmember Banks and State Savings Associations. The correction replaces three additional references to "subpart" with "part," in order to standardize the language in FDIC regulations. The corrections are effective Nov. 25, 2019.

FHFA to re-propose Enterprise Capital Rule in 2020

This story appeared in Bank Digest.                                   

The Federal Housing Finance Agency has announced plans to re-propose the entire regulation on capital requirements (Capital Rule) for Fannie Mae and Freddie Mac (the Enterprises) sometime in 2020. FHFA Director Mark Calabria said, "The 2018 Capital Rule was proposed before FHFA began the process of retaining capital at the Enterprises as a first step toward ending the conservatorships. In fairness to all interested parties, the comments submitted during the previous rulemaking were submitted under a different set of assumptions about the future of the Enterprises. During the process of the rulemaking, important issues were identified that will be addressed in the re-proposal."

Agencies adopt standardized approach for calculating counterparty credit risk

This story appeared in Bank Digest.                                   

The Federal Deposit Insurance Corporation, Federal Reserve Board, and Office of the Comptroller of the Currency have issued a joint final rule revising the standards for how firms measure counterparty credit risk posed by derivative contracts under the agencies' regulatory capital rules. The standardized approach for measuring counterparty credit risk (SA-CCR) replaces the current exposure methodology (CEM) as an alternative method for purposes of calculating advanced approaches total risk weighted assets under the capital rule.

The final rule takes effect April 1, 2020, with a mandatory compliance date of Jan. 1, 2022, for advanced approaches banking organizations.