Dodd-Frank News Center

Latest Property Manager's report issued

This story appeared in Bank Digest. 

The Federal Housing Finance Agency has issued its latest Federal Property Manager's Report to Congress. The report is required by Section 110 of the Emergency Economic Stabilization Act of 2008. The FHFA is a designated Federal Property Manager in its role as conservator for Fannie Mae and Freddie Mac.

Supplemental order issued on stress test reporting by regulated entities

This story appeared in Bank Digest.

The Federal Housing Finance Agency issued an order to supplement its orders dated Nov. 26, 2013, and Dec. 13, 2013, with respect to the reporting of each Federal Home Loan Banks' results under section 165(i)(2) of the Dodd-Frank Act. The supplemental order gives the FHLBanks a revised template to use in reporting to the public the severely adverse results of their respective stress tests.

Banking Committee holds hearing on FSOC annual report

This story appeared in Bank Digest.

The Senate Banking Committee has held a hearing titled "The Financial Stability Oversight Council Annual Report to Congress." Treasury Secretary Jacob Lew testified on the activities of the council, the council's governance and transparency, and progress on financial regulatory reform. Lew also discussed areas of focus of the FSOC's 2014 annual report, including, among other things, wholesale funding markets, housing finance reform, operational risks, resilience to interest rate volatility, risk-taking incentives of large, complex, interconnected financial institutions, as well as foreign market risks.

• Opening Statement of Sen. Tim Johnson (D-SD).
• Opening Statement of Sen. Mike Crapo (R-Idaho).

Merkley slams Citi for flouting Volcker Rule firewall

This story appeared in Bank Digest.

Senator Jeff Merkley (D-Ore) has released a statement after news reports that Citigroup is flouting the Volcker Rule firewall by engaging in high-risk, proprietary trading in mortgage bonds. "Citigroup's trading activities, as reported by Bloomberg News, appear to constitute a direct violation of law," Merkley said. "It's unacceptable for regulators to turn a blind eye as a big bank tries to get back into the risky--and now prohibited--gambling that brought down our economy just a few years ago." Merkley urged federal regulators to enforce the law, stating that "Congress passed the Volcker Rule firewall to prevent exactly this type of reckless behavior."

FHFA announces new HARP outreach efforts

This story appeared in Bank Digest.

The Federal Housing Finance Agency has announced it is taking new steps to reach homeowners who could benefit from the Home Affordable Refinance Program (HARP). FHFA Director Mel Watt will join housing experts and community leaders in a town hall-style meeting at the Woodson Regional Library in Chicago on July 8, 2014, to discuss the benefits of HARP and encourage the approximately 36,000 Chicago residents still eligible to participate in the program. These borrowers could save up to $3,000 a year by refinancing their mortgage. However, many eligible borrowers who would benefit from doing so have failed to take advantage of the HARP program, according to FHFA.

OIG report finds Fannie Mae, Freddie Mac were financially harmed in lender-placed insurance market

This story appeared in Bank Digest.

In order to assess the financial impact of lender-placed insurance on Fannie Mae and Freddie Mac, and to determine whether the FHFA, in its role as the enterprises' conservator, has taken sufficient measures to conserve the enterprises' assets in this regard, the FHFA Office of Inspector General conducted a report entitled, "FHFA's Oversight of the Enterprises' Lender-Placed Insurance Costs."

FSOC's actions and openness scrutinized by House committee

This story appeared in Bank Digest.

The House Financial Services Committee held a hearing to receive the annual report of the Financial Stability Oversight Council and heard testimony from Treasury Secretary Jacob J. Lew. FSOC released its annual report in early May 2014.

In his opening statement, Committee Chairman Jeb Hensarling (R-Texas) noted that "It's also past time for openness and transparency at FSOC, which you chair, Mr. Secretary. While you and other Administration officials habitually cite the purported dangers to financial stability posed by the 'shadow banking system,' you ignore those presented by the 'shadow regulatory system' of which FSOC is front and center."

Banking firms given extra time to resubmit capital plans

This story appeared in Bank Digest.

Following requests by Citigroup, Inc., HSBC North America Holdings, Inc., RBS Citizens, Inc., and Santander Holdings USA, Inc., the Federal Reserve Board has extended the deadline for capital plan resubmissions by these banking firms. Originally, the firms were required to resubmit the capital plans by June 26, 2014, but with the extensions, the firms will not be required to submit their capital plans until Jan. 5, 2015, the due date for the next round of annual plans.

CFPB recruiting Technology & Innovation Fellows for 2015

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has announced that it is accepting applications for the next round of Technology & Innovation Fellows. The fellowship is a two-year program for software developers, graphic and user experience designers, data specialists, and cybersecurity professionals interested in leveraging technology to help further the CFPB's mission of making financial products and services work for consumers. The bureau's blog post noted that since the program launched two years ago, fellows have been "hard at work applying their talents to build amazing things to help financial products and services work for consumers."

Committee approves TRIA, FSOC reform legislation

This story appeared in Bank Digest.

The House Financial Services Committee has approved H.R. 4871, the Terrorism Risk Insurance Act (TRIA), and H.R. 4387, the Financial Stability Oversight Council (FSOC) Transparency and Accountability Act.

The TRIA Reform Act of 2014, sponsored by Rep. Randy Neugebauer (R-Texas), would reauthorize the Terrorism Risk Insurance Act for five years while strengthening taxpayer protections and encouraging more robust private market participation without curtailing the program's fundamental functions. Speaking about the TRIA Reform Act, Committee Chairman Jeb Hensarling (R-Texas), said, "I do believe this bill is a reasonable set of changes to improve a needed-but-yet-still-temporary program and prepares stakeholders for the future by realistically assessing the true benefits and costs of TRIA's current framework."