Dodd-Frank News Center

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.

Institutions notified of changed effective date for capital simplifications final rule

This story appeared in Bank Digest.                         

Federal Deposit Insurance Corporation-supervised institutions have been notified that the FDIC, Federal Reserve Board, and Office of the Comptroller of the Currency have jointly issued a final rule permitting certain insured depository institutions and depository institution holding companies to implement simplifications to the capital rule on Jan. 1, 2020, rather than the original effective date of April 1, 2020 (FIL-67-2019).

This revised effective date applies to the agencies' July 2019 final rule (see 2019 No. 2461) that simplified the regulatory capital treatment for mortgage servicing assets, certain deferred tax assets arising from temporary differences, investments in the capital of unconsolidated financial institutions, and the calculation of minority interest.

Affected banking organizations may elect to use the revised effective date of Jan. 1, 2020, or wait until the quarter beginning April 1, 2020.

FDIC-supervised institutions notified of community bank leverage ratio final rule

This story appeared in Bank Digest.                                   

The Federal Deposit Insurance Corporation has notified institutions it supervises that the federal banking agencies have jointly issued a final rule that provides for an optional, simplified measure of capital adequacy—the community bank leverage ratio framework—for qualifying community banking organizations, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule will be effective on Jan. 1, 2020.