Dodd-Frank News Center

CFPB can improve transparency of Civil Penalty Fund activities

This story appeared in Bank Digest.

Following a review of the Consumer Financial Protection Bureau's Civil Penalty Fund, the Government Accountability Office concluded that opportunity exists to improve the transparency of the fund's activities. The CFPB deposits collected civil money penalties into the fund to compensate eligible victims and also may use the fund for the purpose of consumer education and financial literacy programs. The bureau has implemented a number of internal controls for managing the fund.

Fed accepts resubmitted capital plan for Zions Bancorporation

This story appeared in Bank Digest.

The Federal Reserve Board on July 25, 2014, announced it has not objected to a resubmitted capital plan from Zions Bancorporation. Earlier this year, the Fed objected to the 2014 capital plan from Zions because the firm did not meet the minimum, post-stress tier 1 common ratio of 5 percent during the annual Comprehensive Capital Analysis and Review. Zions was required to submit a new capital plan under the Fed's regulation.

Legislation introduced intended to reform FSOC and OFR

This story appeared in Bank Digest.

A bipartisan bill—the Financial Stability Oversight Council Improvement Act (H.R. 5180)--intended to reform the Financial Stability Oversight Council (FSOC) and the Office of Financial Research (OFR), two of the regulatory agencies established under the Dodd-Frank Act, was introduced in the House.

Oversight requests Justice Department docs on mortgage-backed securities settlements

This story appeared in Bank Digest.

In a letter to Attorney General Eric Holder, House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif) requested certain documents regarding oversight of the Department of Justice's litigation policy with respect to large financial institutions accused but not convicted or adjudicated of illegal conduct in conjunction with the financial crisis.

CFPB proposal would ease HMDA reporting burden, enhance data

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau is proposing revisions to its regulation on mortgage lending data reporting that it says will simultaneously improve the information it receives and ease the reporting burden on mortgage lenders. Reg. C—Home Mortgage Disclosures (12 CFR Part 1003), which implements the Home Mortgage Disclosure Act, requires many lenders to report information about mortgage loans they originate or purchase and about mortgage loan applications they receive. According to the CFPB, this data--which is made public--allows regulators and consumers to see whether mortgage lenders are serving their communities' housing needs and spot possible patterns of discriminatory lending. The bureau will accept comments on the proposal through Oct. 22, 2014.

Phony mortgage relief schemes swept up in "Operation Mis-Modification"

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau, the Federal Trade Commission, and 15 states have undertaken a sweep against "foreclosure relief scammers that used deceptive marketing tactics to rip off distressed homeowners across the country." The enforcement sweep was dubbed "Operation Mis-Modification." The bureau filed three lawsuits against companies and individuals that collected more than $25 million in illegal advance fees for services that falsely promised to prevent foreclosures or renegotiate troubled mortgages. The CFPB is seeking compensation for victims, civil fines, and injunctions against the defendants. Separately, the FTC has filed six lawsuits, and the states are taking 32 actions.

Barney Frank in spotlight at partisan retrospective

This story appeared in Bank Digest.

The House Financial Services Committee (FSC) today held a lengthy hearing on the viability of the Dodd-Frank Act, just days after the law's fourth anniversary. Members' questions to five witnesses divided mostly along party lines. Former FSC Chairman Barney Frank, appearing as a witness, often replied to members with the vigor he brought to floor debates, but at other times patiently clarified how and why specific Dodd-Frank Act provisions made it into the final bill.

Mixed appraisals on Dodd-Frank four-year anniversary

This story appeared in Bank Digest.

In a statement marking the four-year anniversary of the Dodd-Frank Act, Treasury Secretary Jacob J. Lew called the measure "the most comprehensive set of reforms to our financial system since the Great Depression." He said the government's response to the financial crisis was "forceful." The government not only "worked to repair the damage, we also pursued Wall Street Reform to lay the groundwork for a safer financial system and to curtail the behavior and practices that put our financial system and economy at risk." Lew added.

Political parties release conflicting reports on Dodd-Frank Act

This story appeared in Bank Digest.

House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Oversight and Investigations Subcommittee Chairman Patrick McHenry (R-NC) released a committee staff report that concludes the Dodd-Frank Act did not end "Too Big To Fail" as the law's supporters claim, but actually had the opposite effect of further entrenching "too big to fail" as official government policy.

CFPB to accept consumer complaints on prepaid cards

This story appeared in Bank Digest.

In an expansion of the consumer complaint database, the Consumer Financial Protection Bureau now is accepting complaints from consumers encountering problems with prepaid cards, such as gift cards, benefit cards, and general purpose reloadable cards. Consumers also can now submit complaints about additional nonbank products, including debt settlement services, credit repair services, and pawn and title loans.