Dodd-Frank News Center

Senate passes flood insurance relief bill

This story appeared in Bank Digest.

The Senate has passed by a 67-32 margin a flood insurance relief measure (S. 1926) that will provide homeowners relief from increasing flood insurance costs unintentionally caused by the Biggert-Waters Act, a law intended to shore up the National Flood Insurance Program. The bill will delay up to four years the implementation of increases in premiums for homeowners in older homes or in homes newly mapped into the flood plain. The bill also requires the Federal Emergency Management Agency to complete an affordability study and develop recommendations for a policy to assist homeowners who cannot afford their premiums.

Banking Subcommittee holds hearing on OFR's annual report

This story appeared in Bank Digest.

In testimony before the Senate Banking Subcommittee on Economic Policy, Richard Berner, Director of the Office of Financial Research, presented the OFR's second annual report to Congress. During the hearing, entitled "Monitoring Systemic Risk: The Annual Report and Oversight of the Office of Financial Research," Berner spoke of the OFR's mission and status, noting that the agency was a recent creation of the Dodd-Frank Act.

GAO issues report on mortgage protections for servicemembers

This story appeared in Bank Digest.

The Government Accountability Office has released a report on the "Servicemembers Civil Relief Act (SCRA): Information on Mortgage Protections and Related Education Efforts." The SCRA seeks to protect eligible active duty military personnel in the event that their military service prevents them from meeting financial obligations. Mortgage-related protections include prohibiting mortgage servicers from foreclosing on servicemembers' homes without court orders and capping fees and interest rates at 6 percent. Traditionally, servicemembers received 90 days of protection beyond their active duty service, but this period was extended to nine months in 2008 and to one year in 2012. The legislation that provided the one year protection period also mandated that GAO report on these protections.

FRAT Act would bring greater accountability to Fed

This story appeared in Bank Digest.

Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, has introduced H.R. 3928, the Federal Reserve Accountability and Transparency (FRAT) Act, intended to ensure greater accountability and transparency at the Federal Reserve Board. In particular, the FRAT Act would require the Fed to increase its responsiveness to Congress, increase the transparency of its regulatory activities, and foster accountability in its international negotiations. Garrett also released a section by section analysis of the measure and a problem\solution document regarding regulatory authority granted to the Fed by the Dodd-Frank Act.

CFPB reports on evaluation of financial capability strategies

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has reported on a study conducted on consumers' ability to make informed financial decisions. The Dodd-Frank Act mandates that the bureau strive to improve consumers' financial literacy, and the current report is a step toward fulfilling that mandate. The purpose of the report, "Rigorous evaluation of financial capability strategies: Why, when and how," is to share the CFPB's insights gained through its studies with other researchers, practitioners, and funders undertaking or contemplating rigorous research into the effectiveness of different financial capability approaches.

Supervisory expectations for recovery and resolution preparedness released

This story appeared in Bank Digest.

 

The Federal Reserve Board has released supervisory guidance providing additional information on its expectations for the recovery and resolution preparedness of certain large domestic bank holding companies. Recovery and resolution preparedness aims to reduce the effect of a firm's failure or material weakness on the financial system and the broader economy. With this supervisory guidance, the Fed addresses the importance of having robust systems to manage collateral, information, and payments, clearing, and settlement activities. It also considers the importance of adequate liquidity and funding arrangements during times of stress. 

The supervisory guidance is applicable to eight domestic bank holding companies—Bank of America Corporation; Bank of New York Mellon Corporation, PLC; Citigroup Inc.; Goldman Sachs Group, Inc.; JPMorgan Chase & Co.; Morgan Stanley; State Street Corporation; and Wells Fargo & Company.

CFPB proposes to supervise large nonbank remittance transfer companies

This story appeared in Bank Digest.

 

The Consumer Financial Protection Bureau has proposed a rule that would allow it to supervise nonbank companies that carry out more than one million international remittance transfer transactions each year. The proposed rule, which the bureau estimates would apply to about 25 companies, would be under the Dodd-Frank Act grant of authority to supervise larger participants in many consumer financial services markets. The CFPB also released a fact sheet on the proposal. 

Capital Purchase Program stock sale announced

This story appeared in Bank Digest.

The Treasury Department has announced its intention to sell several preferred stock and subordinated debt Capital Purchase Program investments. According to the Treasury, these auctions are part of its strategy to wind down its remaining Troubled Asset Relief Program bank investments in a way that protects taxpayer interests, promotes financial stability and preserves the strength of community banks.

 

Congressman suggests ways to end Fed's "rule-making secrecy"

This story appeared in Bank Digest.

In an opinion piece in the Wall Street Journal, Rep. Scott Garrett (R-NJ) argued that transparency and accountability have not been hallmarks of the Federal Reserve Board when it comes to its regulatory activities. This is a concern, according to Garrett, in light of the Fed's "broad-ranging regulatory authority after the financial crisis, particularly in the Dodd-Frank Act of 2010."

Servicemembers have new mortgage protections in 2014

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has written new mortgage rules for 2014 in an effort to assist military families who continue to struggle as a result of the housing crisis. According to a CFPB blog post, more than a third of the consumer complaints it received from the military are mortgage-related. The complaints include poor mortgage servicing, sloppy lender recordkeeping, and inconsistent foreclosure practices.