Dodd-Frank News Center

Fed simplifies capital rules for large banks; CCAR instructions released

This story appeared in Bank Digest.

The Federal Reserve Board has approved a final rule to simplify its capital rules for large banks while preserving the strong capital requirements already in place, according to a Fed press release. The "stress capital buffer," or SCB, integrates the Fed's stress test results with its non-stress capital requirements. As a result, required capital levels for each firm would more closely match its risk profile and likely losses as measured via the stress tests, the Fed said.

The final rule is effective 60 days after its publication in the Federal Register, with a firm's first stress capital buffer requirement, as determined under the final rule, effective Oct. 1, 2020.

In addition, the Fed has released the instructions for the 2020 Comprehensive Capital Analysis and Review cycle. Results will be released by June 30, 2020.

 

Senators introduce CFPB Pay Fairness Act

This story appeared in Bank Digest.

Senators Mike Enzi (R-Wyo), Thom Tillis (R-NC), Ben Sasse (R-Neb), and David Perdue (R-Ga) have introduced the CFPB Pay Fairness Act of 2020 (S. 3368), which would require the Consumer Financial Protection Bureau to set salary rates according to the government's standard pay scale. According to a press release issued by Tillis, the CFPB currently pays employees significantly more than other government agencies because it is not bound to the federal government's General Schedule scale.

Unlike other financial regulatory agencies, the release said, the CFPB operates outside of the regular congressional appropriations process because most of its funding comes directly from the Federal Reserve Board.

Brown issues statement on case challenging CFPB’s structure

This story appeared in Bank Digest.

Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio) has issued a statement as the Supreme Court is set to hear oral arguments in Seila Law v. CFPB, a case to determine whether the Consumer Financial Protection Bureau is constitutionally structured. In his statement, Brown said that the decision to create the CFPB “has been vindicated by the more than $12 billion that the CFPB has returned to consumers and the millions of consumers who have been protected from predatory practices. It’s telling that the only agency the White House is legally challenging is the one created for the sole purpose of protecting consumers.”

 

Scott, Stivers, and Dean introduce bill to facilitate financial education programs

This story appeared in Bank Digest.

Representative David Scott (D-Ga), along with Reps. Steve Stivers (R-Ohio) and Madeleine Dean (D-Pa), has introduced the Consumer Financial Education and Empowerment Act (H.R. 6012), which would create a grant program within the Consumer Financial Protection Bureau to facilitate financial education programs in schools, libraries, nonprofits, and similar organizations. These grants would provide for both direct classroom education and the instruction of financial education trainer.

Porter writes to CFPB and HHS on Bureau’s proposed debt collection rule

This story appeared in Bank Digest.

Representative Katie Porter (D-Calif) has sent a letter to Consumer Financial Protection Bureau Director Kathleen Kraninger and Health and Human Services Secretary Alex Azar regarding a CFPB proposed rule that she believes would enable debt collection practices that place patients’ private information at risk by allowing debt collectors to use unsecured means of communication. The proposed rule is intended to implement the Fair Debt Collection Practices Act.

In her letter, Porter asked that the CFPB collaborate with HHS “to conduct—and make public—a formal review of the privacy, health, and financial implications of this proposed regulation and incorporate the results into any rulemaking.”

CFPB chooses organizations for 2020 Your Money, Your Goals cohort

This story appeared in Bank Digest. 

The Consumer Financial Protection Bureau has selected 34 organizations to join the 2020 Your Money, Your Goals cohort, which entitles them to “receive training and technical assistance to strengthen their ability to serve people in their own communities experiencing financial challenges,” according to a Bureau blog post. The authors said the organizations include 25 nonprofits and nine government entities.

CFPB updates TRID Rule FAQs

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released answers to frequently asked questions pertaining to compliance with the TILA-RESPA Integrated Disclosure Rule (TRID Rule), which created a single set of integrated disclosure forms for mortgage loan transactions to satisfy the disclosure requirements of both the Truth in Lending Act and the Real Estate Settlement Procedures Act. The new questions and answers added to the list concern lender credits.

Kraninger speaks at Credit Union National Association conference

This story appeared in Bank Digest.  

Consumer Financial Protection Bureau Director Kathleen Kraninger spoke at the Credit Union National Association's Government Affairs Conference in Washington, D.C., on Feb. 25, 2020. In her prepared remarks, Kraninger discussed "the role of the Bureau in the consumer financial marketplace and how we prevent consumer harm by establishing clear rules of the road."

Specifically, Kraninger discussed amendments the Bureau is proposing to its Ability to Repay/Qualified Mortgage rule and its remittance rule. She also discussed the process the CFPB will undertake to review economically significant regulations and the Bureau's Start Small, Save Up initiative that promotes emergency savings for consumers.

Agencies correct capital simplification final rule

This story appeared in Bank Digest.  

 

The Office of the Comptroller of the Currency, Federal Reserve Board, and Federal Deposit Insurance Corporation have issued a technical correction to their November 2019 final rule entitled "Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations." The rule, which was effective Jan. 1, 2020, provides for a simple measure of capital adequacy for certain community banking organizations, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

CFPB to hold symposium on consumer access to financial records

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau announced it will hold a symposium on Consumer Access to Financial Records and Section 1033 of the Dodd-Frank Act on Feb. 26, 2020, at 9:30 a.m., in Washington, D.C. Section 1033 addresses consumers' rights to access information about their financial accounts.

The symposium, which is the fourth in a series announced last year to explore consumer protections in the financial services marketplace, will feature remarks by CFPB Director Kathleen Kraninger and will consist of three panels of experts. The event will be webcast on the Bureau's website.