Dodd-Frank News Center

CFPB Director ratifies recess appointment actions

This story appeared in Bank Digest.

Consumer Financial Protection Bureau Director Richard Cordray has ratified the actions he has taken as a recess appointee. Cordray noted that "I believe that the actions I took during the period I was serving as a recess appointee were legally authorized and entirely proper." He took this action "to avoid any possible uncertainty, however, I hereby affirm and ratify any and all actions I took during that period."

 

 

Agencies repropose risk retention rules

This story appeared in Bank Digest.

The bank regulatory agencies—Office of the Comptroller of the Currency, Federal Reserve Board, and Federal Deposit Insurance Corporation—along with the Securities and Exchange Commission, Federal Housing Finance Agency, and Department of Housing and Urban Development, have issued a notice revising a proposed rule requiring sponsors of securitization transactions to retain risk in those transactions. The new proposal revises a proposed rule the agencies issued in 2011 to implement the risk retention requirement in the Dodd-Frank Act. Comments on the proposed rule are due by Oct. 30, 2013. The FDIC also released an accompanying Staff Memorandum. 

SIGTARP uncovers that TARP funds were used to buy luxury vacation property

This story appeared in Bank Digest.

The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) announced on Aug. 27, 2013, that Darryl Layne Woods, of Columbia, Mo., former chairman and chief financial officer of Mainstreet Bank in Ashland, Mo., pleaded guilty in federal court on Aug. 26, 2013, to misleading federal investigators about the use of $381,000 in TARP bank bailout funds to purchase a luxury condominium in Fort Myers, Fla. Under the terms of the plea agreement, Woods must desist from any further involvement in banking and may not serve as an officer, director, employee, or affiliated party of any financial institution or agency. In addition, under federal statutes, Woods is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000, and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

OCC announces enforcement action against EverBank

This story appeared in Bank Digest.

The OCC has announced that EverBank has agreed to pay approximately $37 million in cash payments to more than 32,000 eligible mortgage borrowers. The bank was subject to a cease and desist order for unsafe and unsound practices in mortgage servicing and foreclosure processing. EverBank will consent to an amendment to the order, which will effectively end the Independent Foreclosure Review process for EverBank and its customers.

 

 

Fed-supervised institutions told of new mortgage lending examination procedures

This story appeared in Bank Digest.

The Federal Reserve Board has transmitted to the institutions it supervises revised examination procedures covering mortgage loan-related changes to Reg. X—Real Estate Settlement Procedures Act (12 C.F.R. 1024) and Reg. Z—Truth in Lending (12 C.F.R. 1026). The revisions cover rules on ability-to-repay and qualified mortgage standards; loan originator compensation and qualification; servicing; loans subject to the Home Owners Equity Protection Act; appraisals; and homeownership counseling requirements. They generally take effect Jan. 10, 2014.

• CA 13-13
• RESPA exam procedures
• CA 13-12
• TILA exam procedures

OIG assesses Bank of America settlement

This story appeared in Bank Digest.

Following the January 2013 announcement that the FHFA had approved a settlement between Fannie Mae and Bank of America regarding the sale of mortgages, based on a 2012 FHFA guidance governing repurchase settlements, the agency's Office of Inspector General (OIG) issued a report reviewing the FHFA implementation of that policy. The OIG found that the FHFA adhered to its established policy and recommended that the FHFA establish a formal review process for compensatory fee settlements and significant mortgage servicing rights transfers.

CFPB highlights mortgage servicing problems and need for robust compliance management

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released it latest issue of Supervisory Highlights, which reviews the development of the bureau's supervision program and shares key findings from its supervisory activities in order to help the industry limit risks to consumers and comply with federal consumer financial laws. The report highlights examination work completed between November 2012 and June 2013. Some of the topics covered in the Supervisory Highlights include: the CFPB's expectations for compliance management systems; the risks faced by consumers in mortgage servicing at both bank and nonbank entities; and the provision of adverse notices under the fair lending laws.

Notice of Proposed Rulemaking to strengthen leverage ratio standards

This story appeared in Bank Digest.

The Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation (collectively, the agencies) are seeking comment on a notice of proposed rulemaking (NPR) to strengthen the leverage ratio standards for the largest, most systemically significant U.S. banking organizations. The NPR was published in the Federal Register on Aug. 20, 2013, with a 60-day comment period.

CFPB files suit against Morgan Drexen for charging illegal fees

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has announced that it filed a lawsuit in federal district court against a Nevada corporation, Morgan Drexen, Inc., and its president and chief executive officer, Walter Ledda, for charging illegal upfront fees and deceiving consumers. The complaint alleges that the company falsely claims that it does not charge consumers upfront fees for debt-relief services and falsely represents to consumers that they will become debt free in months if they work with Morgan Drexen. The CFPB alleges that the defendants have violated the Telemarketing Sales Rule and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

President Obama meets with independent financial regulators

This story appeared in Bank Digest.

On August 19, 2013, President Obama hosted a meeting with lead independent financial regulators. In addition to White House staff, participants included the Comptroller of the Currency, the Director of the Consumer Financial Protection Bureau, the Acting Director of the Federal Housing Finance Agency, and the chairs of the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Securities and Exchange Commission. Treasury Secretary Jack Lew also attended the meeting. The President and the regulators discussed the significant progress that has been made to strengthen our financial system and protect consumers, including the ongoing implementation of the Dodd-Frank Act. The President also discussed the housing market, including the need for a more simplified and certain housing finance system that better serves middle class families and the need for continued interagency coordination