Dodd-Frank News Center

Fed adopts proposal to extend, revise 'Volcker Rule' information collection

This story appeared in Bank Digest.                                   

The Federal Reserve Board is adopting a proposal to extend for three years, with revision, an existing information collection entitled "Reporting Requirements Associated with Regulation Y (Extension of Time to Conform to the Volcker Rule)."

The Fed proposed to revise the form associated with this report to account for the provisions of Supervision and Regulation Letter 16-18 that relate to the contents of a request for an extended transition period for illiquid funds and the procedures for filing such a request.

On April 19, 2019, the Fed published a notice requesting public comment for 60 days on the proposal. The comment period has expired, and the Fed did not receive any comments, so the revisions will be implemented as proposed.

Brown and Warren request action in wake of Blankenstein investigation

This story appeared in Bank Digest.                                   

Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio) and Sen. Elizabeth Warren (D-Mass) have sent letters to the Consumer Financial Protection Bureau, the Office of Inspector General for the CFPB and Federal Reserve Board, and the Department of Housing and Urban Development regarding an investigation by the OIG into the conduct of political appointee Eric Blankenstein during his time at the CFPB. According to Brown's press release, Blankenstein was hired as senior counsel of HUD's Office of General Counsel just one month after resigning from the CFPB in the wake of racist and sexist blog posts that were uncovered by the Washington Post in 2018.

As quoted in Brown's release, the OIG's report found that Blankenstein "may have abused his authority," "may have misused his position for private gain," and "created the appearance of a violation of the Standards of Ethical Conduct for Employees of the Executive Branch."

Brown and Warren are requesting that: (1) the OIG open a follow-up investigation into the CFPB's decision to dismantle the Office of Fair Lending and Equal Opportunity during Blankenstein's time at the agency; (2) HUD immediately fire Blankenstein; and (3) the CFPB dismiss political appointees and allow professional career staff to return to carrying out their work to protect consumers without political pressure.

Fed proposes to extend, revise 'Capital Assessments and Stress Testing Reports' information collection

This story appeared in Bank Digest.                                   

The Federal Reserve Board is proposing to extend for three years, with revision, an existing information collection entitled "Capital Assessments and Stress Testing Reports." This collection includes three separate reports—the FR Y-14A, FR Y-14Q, and FR Y-14M—and provides the Fed with the information needed to help ensure that large firms have strong, firm‐wide risk measurement and management processes supporting their internal assessments of capital adequacy and that their capital resources are sufficient given their business focus, activities, and resulting risk exposures.

The Fed has issued two notices regarding the extension and renewal of this collection—one focusing on incorporating non-Current Expected Credit Loss (CECL) methodology revisions into the FR Y-14A/Q/M reports and a second notice focusing on incorporating the CECL methodology into these reports. Comments on both notices must be received by Sept. 30, 2019.

Brown and Hill issue statements on CFPB's qualified mortgage ANPR

This story appeared in Bank Digest.                                   

Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio) and Rep. French Hill (R-Ark) have issued statements regarding the Consumer Financial Protection Bureau's Advance Notice of Proposed Rulemaking seeking information relating to the expiration of the temporary qualified mortgage provision in the Bureau's Ability to Repay/Qualified Mortgage (ATR/QM) Rule that is applicable to certain mortgage loans eligible for purchase or guarantee by Government Sponsored Enterprises Fannie Mae and Freddie Mac. This provision, also known as the GSE Patch, is scheduled to expire no later than Jan. 10, 2021, although the ANPR says the Bureau may allow a short extension, if necessary, to facilitate a smooth and orderly transition away from the patch. In the ANPR, the Bureau solicits comments on possible amendments to the ATR/QM Rule.

Brown said, "The focus of the Consumer Protection Bureau should be protecting consumers. The action they take on this critical rule should be first and foremost about providing access to sustainable mortgages that fit the needs of individual consumers in today's housing market, and they should hold lenders accountable when they don't live up to their obligations."

Hill supported the CFPB's decision to end the GSE Patch, saying, "Allowing Fannie and Freddie to continue loading up on high-debt mortgages, because of a temporary loophole, has had a harmful effect on the broader housing market."

CFPB seeks renewal of RESPA information collection

This story appeared in Bank Digest.

The CFPB is requesting to renew, without change, the Office of Management and Budget approval for an existing information collection entitled “Real Estate Settlement Procedures Act (Regulation X) 12 CFR 1024.” According to the CFPB’s notice, consumers use the disclosures required by the Real Estate Settlement Procedures Act and its implementing Regulation X to inform their choice of settlement service providers, review the final terms of a settlement, understand who to contact about questions concerning their mortgage loan, and identify and protect themselves against inaccurate or questionable loan servicing practices. On April 8, 2019, the Bureau issued a 60-day Federal Register notice seeking comments on the proposal. Written comments on the current notice must be received by Aug. 21, 2019, and will be reviewed by the OMB as part of its review of this request.

CFPB issues updated advisory urging institutions to report suspected financial exploitation of older adults

This story appeared in Bank Digest.

The CFPB has issued an updated advisory to financial institutions urging them to report to the appropriate local, state, and federal authorities whenever they suspect that an older adult is the target or victim of financial exploitation. The Bureau also recommended that financial institutions file Suspicious Activity Reports with the federal government when they suspect elder financial exploitation. According to the CFPB’s press release, the updated advisory builds on the Bureau’s earlier recommendations and its recent research on elder financial abuse, and it contains voluntary best practices to help financial institutions prevent and respond to elder financial exploitation.

 

 

 

Fed extends ‘Debit Card Interchange Fees’ information collection

This story appeared in Bank Digest.

The Fed is adopting a proposal to extend for three years, without revision, an existing information collection entitled “Recordkeeping and Disclosure Requirements Associated with Regulation II (Debit Card Interchange Fees and Routing).” According to the Fed, Regulation II (Debit Card Interchange Fees and Routing) implements, among other things, standards for assessing whether interchange transaction fees for electronic debit transactions are reasonable and proportional to the cost incurred by the issuer with respect to the transaction, as required by Section 920(a) of the Electronic Fund Transfer Act.

 

OIG issues ‘Work Plan’ presenting current or planned audits and evaluations

This story appeared in Bank Digest.

The Office of Inspector General for the CFPB and the Federal Reserve Board has issued a “Work Plan,” current as of July 1, 2019, presenting the audits and evaluations the OIG is conducting to assist the CFPB and the Fed in fulfilling their respective missions. The “Work Plan” is updated quarterly, and each project is categorized as “initiated,” “in development,” or “planned.” In addition, each quarter, projects that are new or have been canceled, terminated, or issued as reports are marked as such, the OIG said.

CFPB blog post addresses myths in military community about personal finance

This story appeared in Bank Digest.

Noting that the CFPB’s Office of Servicemember Affairs’ has engaged with military families throughout the country and even the world” over the past eight years and that its members” have heard lots of barracks rumors and scuttlebutt,” a Bureau blog post addresses five myths in the military community regarding personal finance. The five myths the post discusses are: (1) credit card companies are required to waive annual fees for servicemembers; (2) the Servicemembers Civil Relief Act only helps servicemembers by lowering interest rates; (3) the Military Lending Act doesn’t protect servicemembers’ spouses or dependent children; (4) servicemembers need to pay someone to help them with their financial issues; and (5) financial issues are too complicated for the average person.

 

Agencies exclude community banks from Volcker Rule

This story appeared in Bank Digest.

The FDIC and several other federal financial regulatory agencies have adopted a final rule to exclude community banks from the Volcker Rule, consistent with the Economic Growth, Regulatory Relief, and Consumer Protection Act. In addition to the FDIC, the rule was adopted by the Federal Reserve Board, Office of the Comptroller of the Currency, Commodity Futures Trading Commission, and Securities and Exchange Commission. Under the final rule, community banks with $10 billion or less in total consolidated assets and total trading assets and liabilities of 5 percent or less of total consolidated assets are excluded from the Volcker Rule. The final rule is effective upon publication in the Federal Register.