Dodd-Frank News Center

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.

Fed corrects comment due date for 'Assessments of Fees' proposed rule

This story appeared in Bank Digest.                                   

The Federal Reserve Board has issued a correction to its proposed rule entitled "Supervision and Regulation Assessments of Fees for Bank Holding Companies and Savings and Loan Holding Companies With Total Consolidated Assets of $100 Billion or More," which it published on Nov. 12, 2019. The proposed rule would amend the Fed's assessment rule (Regulation TT) to raise the minimum threshold for being considered an assessed company from $50 billion to $100 billion in total consolidated assets for bank holding companies and savings and loan holding companies and adjust the amount charged to assessed companies with total consolidated assets between $100 billion and $250 billion to reflect changes in supervisory and regulatory responsibilities resulting from the Economic Growth, Regulatory Relief, and Consumer Protection Act.

The prior document provided an expired comment period end date. The Fed has issued a correction indicating that comments must be received by Jan. 9, 2020.

 

CFPB issues interpretive rule on requirements regarding loan originators with temporary authority

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has issued an interpretive rule clarifying screening and training requirements for financial institutions that employ loan originators with temporary authority to originate loans. The rule will be effective on Nov. 24, 2019.

According to the Bureau's press release, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) contemplated two categories of loan originators—those working for state-licensed mortgage companies and those working for federally regulated financial institutions. The Economic Growth, Regulatory Relief, and Consumer Protection Act established a third category—loan originators with temporary authority to originate loans, which may act as loan originators for a temporary period of time in a state while that state considers their application for a loan originator license.

 

CFPB files amicus brief in paint poisoning settlement agreement case

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has filed an amicus brief in the case of Linton, et al. v. Consumer Protection Division. This case involves a Maryland state court's approval of a class-action settlement agreement brought by, among others, victims of lead-paint poisoning who alleged wrongdoing by a company and related persons who purchased the victims' structured settlement payments that had been awarded for their lead-related injuries.

The settlement agreement purported to release the CFPB's claims in a pending Bureau enforcement action alleging similar conduct, to enjoin class members from receiving any benefits from the Bureau's action, and to assign to the parties who caused the class members' injuries all benefits the Bureau may obtain for class members in the Bureau's action.

The CFPB argued that permitting the approval of such a settlement agreement would interfere with its authority to remediate consumer harm under the Consumer Financial Protection Act.

Kraninger speaks at CFPB symposium on ECOA data collection requirements

This story appeared in Bank Digest.                                   

Consumer Financial Protection Bureau Director Kathy Kraninger spoke at the Bureau's symposium on Section 1071 of the Dodd-Frank Act on Nov. 6, 2019, in Washington, D.C. The symposium was the third in a series announced earlier this year to explore consumer protections in the financial services marketplace. Section 1071 amended the Equal Credit Opportunity Act to add a section on small business loan data collection.

In her prepared remarks, Kraninger said Sec. 1071 "requires financial institutions to collect, report, and make public certain information concerning credit applications made by women-owned, minority-owned, and small businesses."

Kraninger noted that "the law specifically directs the Bureau to develop a rule for the collection, reporting, and publication of certain data" and said the symposium would "provide an opportunity for academics, market participants, and policy makers to discuss the hurdles and goals of an effective rule." 

CFPB receives funding for first quarter of FY 2020

This story appeared in Bank Digest.                                   

In a funding request letter to the Federal Reserve Board, Consumer Financial Protection Bureau Director Kathy Kraninger said that $223.3 million would be necessary to carry out the authorities of the Bureau for the first quarter of fiscal year 2020. As required by law, each fiscal quarter the Fed transfers to the CFPB the amount of funds formally requested by the director.

The Fed sent a letter to the CFPB's chief financial officer stating that the requested funds had been deposited into the Bureau of Consumer Financial Protection Fund at the Federal Reserve Bank of New York.