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MoFo Reenforcement

The Enforcement Blog

Financial Services Report – Winter 2016

Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Military Issues, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAP

Hope you survived all of those awkward Thanksgiving holiday conversations—amazing how divided people are on whether the court got it right in the PHH case, isn’t it? So on we go into the holiday season, while visions of Dodd-Frank repeal dance in our heads. No long winter’s nap for the CFPB, not with the inauguration fast approaching. Will we see a final arbitration rule in our stockings? Will the New Year bring efforts to reinstate Glass-Steagall? How about the promised temporary moratorium on new agency regulations?

No crystal ball, but read on to learn the latest in privacy, mortgage, arbitration, etc., etc. The PHH ruling, the Financial Choice Act, the OCC’s take on regulating FinTech, the latest on privacy, preemption, arbitration, and mortgage—it’s all here as our present to you.

Until next time, have a wonderful holiday and a Happy New Year, from all of us to all of you.

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EVENT: FinTech Companies and the OCC Special Purpose National Bank Charter

Posted in Events, Regulatory Developments

Thursday, December 8, 2016
11:00 a.m. – 12:00 p.m. PST
2:00 p.m. – 3:00 p.m. EST

The Office of the Comptroller of the Currency (OCC) announced in a White Paper that it would begin considering applications from FinTech companies to become “special purpose national banks.” The White Paper includes information about the OCC’s supervisory expectations for these new special purpose national banks and the chartering process.

Morrison & Foerster will be hosting a teleconference to discuss the new special purpose national bank charter, including implications for FinTech companies and potential challenges to obtaining a special purpose national bank charter.

This will be an operator-assisted call of approximately 45 minutes in duration and will be followed by a brief Q&A opportunity. We also invite you to submit questions before the start of the call by emailing cbaker@mofo.com.

Speakers:
Oliver Ireland Partner, Morrison & Foerster
Sean Ruff Of Counsel, Morrison & Foerster
Crystal Kaldjob Associate, Morrison & Foerster

Click here to register.

Ten Questions and Nine Answers about PHH and the Future of the CFPB Director

Posted in CFPB, Mortgage

The potentially explosive combination of the D.C. Circuit’s October decision in PHH v. CFPB and the outcome of the presidential election has spurred a host of questions about how the PHH litigation may proceed and about the future of the CFPB under the leadership of CFPB Director Richard Cordray.  After providing some background, this alert will discuss some of the most pressing of those questions.

Read our client alert.

OCC Announces Special Purpose National Bank Charter for FinTech Companies

Posted in Regulatory Developments

On December 2, 2016, Comptroller of the Currency Thomas Curry confirmed that the agency will begin considering applications from FinTech companies to become special purpose national banks, saying that the OCC will charter “financial technology companies that offer bank products and services and meet our high standards and chartering requirements.” The OCC simultaneously released a white paper on issues addressing the conditions on extending national bank charters to FinTech companies.

Read our client alert.

CFPB Requests Information Regarding Data Aggregation Services

Posted in CFPB, Privacy

On November 17, 2016, the CFPB held a field hearing in Salt Lake City, Utah, and published a Request for Information (“RFI”) regarding access to consumer financial account data. Through the RFI, the CFPB is seeking information regarding consumers’ ability to access, control and share personal financial data relating to them in a usable electronic form. Such access includes access by a third party authorized by the consumer in connection with a product or service offered by the third party (i.e., “data aggregators”).

Read our client alert.

Whither the CFPB? In Uncertain Times, Rep. Hensarling’s Vision May See New Life

Posted in Regulatory Developments

Given the outcome of the presidential election, the focus is now on President-Elect Trump’s campaign promises to scale back the Dodd-Frank Act and pursue deregulation of financial services. As of now, little is known about specific actions the new administration will pursue after inauguration. There is, however, a template for reform, namely, the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs Act, H.R. 5983, a substitute version of which was approved by the House Financial Services Committee on September 13, 2016. This bill, if enacted by Congress, would impose sweeping reform on the regulation of financial services in the United States. Of particular interest are the provisions covering retail financial services and the powerful, controversial regulator of these markets, the CFPB.

Read our client alert.

EVENT: The Future of Financial Regulation

Posted in Events, Regulatory Developments

Wednesday, November 16, 2016
10:00 a.m. – 3:00 p.m. EST

The Smith Suite at the Ronald Reagan Building
1300 Pennsylvania Avenue NW
Washington, D.C. 20004

Join the CFP, CFA Institute and Morrison & Foerster for this half-day conference that will examine the potential post-election changes to the financial regulatory system, including changes to the Dodd-Frank Act and more broadly to the structure and governance of the Federal Reserve.

Morrison & Foerster Partner David Lynn will moderate a panel entitled “The Future of Dodd-Frank.” This panel will examine the future of fiduciary standards for intermediaries, the new liquidity and derivative rules for investment companies, developments in derivative regulation and the evolving regulatory approach to FinTech. Morrison & Foerster Partner Jay Baris will participate as a panelist.

Morrison & Foerster Partner Oliver Ireland will speak on a panel entitled “The Fed & Macroeconomic Policies.” This panel will examine the impact of monetary policy on large and small banks. It will also examine the role of the regional Fed banks, their governance and how they are likely to evolve.

The program will be hosted jointly by CFA Institute, Morrison & Foerster and the Center for Financial Policy at the Robert H. Smith School of Business, University of Maryland.

Click here to register.

For more information email tstarer@mofo.com.

OCC Lays Out Responsible Innovation Framework

Posted in Regulatory Developments

On October 26, 2016, the OCC issued its Recommendations and Decisions for Implementing a Responsible Innovation Framework (“Framework”). The Framework is a follow up to the OCC’s March 2016 white paper on Supporting Responsible Innovation in the Federal Banking System: An OCC Perspective (“White Paper”). The Framework reflects the comments received in response to the White Paper, as well as other OCC internal and external outreach. The Framework discusses the recommendations made by the OCC’s Innovation Framework Development Team that were approved by the Comptroller of the Currency and the OCC Executive Committee. This alert highlights several of the key approved recommendations, as well as certain concepts that were in the White Paper that did not result in approved recommendations.

Read our client alert.

EVENT: Canadian Derivatives and Financial Services Regulatory Developments

Posted in Events, Regulatory Developments

Thursday, November 10, 2016 
8:30 a.m. – 10:00 a.m.

Morrison & Foerster LLP
250 West 55th Street
New York, NY 10019

Join a panel of experts from Stikeman Elliott LLP for a presentation and an engaged discussion of Canadian regulatory and legal developments affecting trading in derivatives with financial institutions, public mutual funds and other Canadian counterparties, including:

  • Current issues in derivatives trade reporting;
  • Margin requirements for non-centrally cleared derivatives–an overview of OSFI E-22 and CSA Consultation Paper 95-401;
  • Future use of the ISDA Regulatory Margin Self-Disclosure Letter and the ISDA Variation Margin Protocol by market participants in Canada;
  • Recent amendments to legislation affecting netting and collateral enforcement involving federal deposit taking institutions;
  • Domestic recognized clearing agency recovery plans;
  • Anticipated derivatives dealer/large derivatives participant registration regime;
  • Considerations involving transactions with public mutual funds;
  • The proposed alternative investment fund regime; and
  • Implications of changes to personal property security laws affecting cash collateral.

The session will be hosted at the offices of Morrison & Foerster LLP and moderated by Morrison & Foerster lawyers.

For more information, or to register, simply email tstarer@mofo.com.

CFPB Makes FinTech Headlines

Posted in CFPB

The CFPB made headlines in FinTech on October 24, 2016. First, the Bureau released its first-ever Project Catalyst report on promoting consumer-friendly innovation (the “Report”). The Report summarizes the work conducted by Project Catalyst to date and sets forth in broad strokes some of the financial innovations that the CFPB is encouraging. On the same day, Director Richard Cordray addressed Money 20/20 in Las Vegas, Nevada, covering a range of FinTech issues that affect consumers.

Read our client alert.