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Category Archives: Regulatory Developments

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Financial Services Report – Winter 2017

Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Enforcement Actions, Fair Lending, Foreclosure, Indirect Auto Lending, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators

The holidays came early for the financial services industry. First, the Senate voted to repeal the CFPB’s rule banning class waivers in arbitration agreements in consumer financial contracts. Then, Richard Cordray stepped down as CFPB Director. Former Director Cordray’s attempt to name his interim successor hours before submitting his formal resignation created dueling interim directors… Read More

Are You a Money Transmitter in Connecticut? In Hawaii?

Posted in Electronic Payments, Regulatory Developments, State Regulators

One of the defining aspects of the payments revolution of the past few years—at least from a regulatory perspective—has been the question of whether a particular payments service is subject to regulation as money transmission. A number of states have determined that under certain conditions, state money transmission licensing laws do not apply to services provided… Read More

Financing Fintech: ILC Charters

Posted in Regulatory Developments

An ILC, or industrial loan company, is a form of bank that can be chartered in Utah, Nevada, and a few other states. ILCs are insured by the FDIC and have most traditional banking powers, but they cannot hold corporate checking accounts. Significantly, an ILC is not a bank under the Bank Holding Company Act,… Read More

Treasury Report, Part II: Regulation of the Capital Markets

Posted in Regulatory Developments

The U.S. Department of the Treasury (“Treasury Department” or “Treasury”) issued its second report (of four reports), titled “A Financial System that Creates Economic Opportunities, Capital Markets” (the “Report”). The Report was issued in response to Presidential Order 137772 setting forth the Core Principles that should guide regulation of the U.S. financial system. The Report… Read More

CFPB Releases Final Payday Lending Rule

Posted in CFPB, Payday Lending, Regulatory Developments

On October 5, 2017, the CFPB released its final rule for short-term loans. The nearly 1,700 page rule appears to follow the proposed short-term lending rule with several notable changes. Most notably, the CFPB did not finalize rules relating to underwriting requirements for long-term loans that do not have balloon payments. Read our client alert.

OCC Acting Comptroller Woos Fintech Companies with Remarks on Online Lending

Posted in Regulatory Developments

On September 25, 2017, Acting Comptroller of the Currency Keith Noreika discussed online lending and innovation in his keynote remarks prepared for delivery to the Online Lending Policy Summit in Washington, D.C. Consistent with his previous remarks, the Acting Comptroller expressed his support for a regulatory environment that fosters responsible innovation and touted the growth… Read More

Financial Services Report – Fall 2017

Posted in Arbitration, CFPB, Credit Cards, Credit Reports, Electronic Payments, Enforcement Actions, Fair Lending, Investigations, Mortgage, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAP

Through hurricanes, wild fires, the publication of Hillary Clinton’s book, the birth of Amal and George Clooney’s twins, and the Dodgers’ historic losing streak, Director Richard Cordray and the CFPB’s Final Arbitration Rule are still standing. As my colleague Ollie Ireland explained, these days, it’s easier to predict the weather than it is to predict… Read More

Replacing Familiar Benchmarks: Preparations to Phase Out the IBORs

Posted in Regulatory Developments

Long a mainstay of the financial world, the floating “IBOR” rates, based on the rates of actual or purported interbank offered loans, are now being swept slowly into the dustbin of history. The quantity, in both number and size, of existing financial products based on these floating rates is enormous, with the outstanding principal amount… Read More

OCC Seeks Public Comment on the Volcker Rule

Posted in Regulatory Developments

Section 13 of the Bank Holding Company Act (the “Volcker Rule”) and its implementing regulations (the “Implementing Regulations”) generally prohibit banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with covered funds. On August 2, 2017, the OCC submitted to the Federal Register a notice requesting public comment on how… Read More

Entering the HMDA Homestretch: CFPB Proposes Temporary Increase in HELOC Reporting Threshold, Releases New and Updated Filing Resources

Posted in CFPB, Mortgage, Regulatory Developments

As we have previously reported, in October 2015, the CFPB issued a sweeping final rule (“2015 Final Rule”) to amend Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The bulk of the 2015 Final Rule will become effective on January 1, 2018. With the effective date drawing nearer, the CFPB has proposed an… Read More

EVENT: Core Principles for Financial Regulation

Posted in Events, Regulatory Developments

Tuesday, September 12, 2017 Registration: 8:00 a.m. – 8:30 a.m. Seminar: 8:30 a.m. – 10:00 a.m. Morrison & Foerster LLP 250 West 55th Street New York, NY 10019 Join us as presenters from Morrison & Foerster LLP and The Brattle Group share their views and predictions regarding: the Presidential Orders relating to deregulation; the Treasury Department’s initial report… Read More

Acting Comptroller Endorses Fintech Charters

Posted in Regulatory Developments

In July 19, 2017 remarks prepared for delivery to the Exchequer Club in Washington, D.C., Acting Comptroller of the Currency Keith Noreika expressed his support for the Office of the Comptroller of the Currency’s efforts to establish national bank charters for financial technology companies. In endorsing the OCC’s so-called fintech charter, he noted that the… Read More

CFPB Publishes Final Arbitration Rule in Federal Register

Posted in Arbitration, CFPB, Regulatory Developments

A mere nine days after releasing its Final Rule regarding arbitration to the public, the CFPB has published the Final Rule in the Federal Register. This is significant because publication in the Federal Register triggers the countdown to the Final Rule’s effective date (60 days after publication) and ultimately its application to new agreements (180 days… Read More

OCC Releases Semiannual Risk Perspective: Fintech is Risky?

Posted in Regulatory Developments

On July 7, 2017, the Office of the Comptroller of the Currency released its Semiannual Risk Perspective report identifying the risks faced by national banks and federal savings associations in the 12-month period ending December 31, 2016. The Report, which is intended to highlight key risk issues facing the federal banking system, noted that strategic, credit, operational… Read More

DOL’s Fiduciary Rule Resource Page

Posted in Regulatory Developments

The first phase of the Department of Labor’s (“DOL”) new fiduciary rule (“Fiduciary Rule”) was implemented on June 9, 2017. The Fiduciary Rule greatly expands the categories of persons who are deemed fiduciaries when dealing with retail retirement investors. It was adopted by the DOL in April 2016 together with new prohibited transaction exemptions: the… Read More

EVENT: IFLR Webinar – Regulatory Burden Relief: What to Anticipate

Posted in Events, Regulatory Developments

Tuesday, July 25, 2017 10:00 a.m. – 11:30 a.m. EDT Join us as presenters share their views and predictions regarding: the Presidential Orders relating to deregulation; the Treasury Department’s initial report regarding the core principles of financial regulation; the Financial CHOICE Act and its principal provisions; the areas of regulatory reform as to which compromise… Read More

CFPB Proposes Changes to Prepaid Accounts Rule

Posted in CFPB, Credit Cards, Regulatory Developments

On June 15, 2017, the CFPB released proposed revisions to its final Prepaid Accounts Rule. The Final Rule was published in November 2016 and was subsequently amended to delay the general effective date by six months, to April 1, 2018. The CFPB is seeking comments on proposed revisions to the Final Rule, as well as… Read More

Financial Services Report – Summer 2017

Posted in Add On Products, Arbitration, CFPB, Credit Cards, Credit Reports, Enforcement Actions, Fair Lending, Foreclosure, Investigations, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, Student Lending

Summer blockbuster season is officially upon us. Have you seen Wonder Woman yet? What about Guardians of the Galaxy Part 2? It’s déjà vu all over again with Baywatch, Pirates of the Caribbean, Alien, Planet of the Apes, Transformers, Cars, Spider Man, and more Inconvenient Truths from Al Gore all coming to a theatre near… Read More

U.S. Treasury Department Report on Core Principles for Regulating the United States Financial System

Posted in Regulatory Developments

As required by the President’s Executive Order 13772 setting forth the core principles that should be taken into account in connection with the regulation of the U.S. financial system, the U.S. Treasury Department published a report identifying regulations inconsistent with the seven principles articulated in the order. The report is the first of series of… Read More

OCC Guidance Suggests Flexibility for Third-Party Risk Management

Posted in Regulatory Developments

On June 7, 2017, the Office of the Comptroller of the Currency issued frequently asked questions that supplement the OCC’s 2013 guidance entitled “Third-Party Relationships: Risk Management Guidance.” The 2013 Bulletin sets forth the OCC’s expectation for banks’ due diligence and ongoing monitoring of third-party service providers, including enhanced diligence and monitoring for third parties… Read More

EVENT: Mortgage Bankers Association’s Legal Issues and Regulatory Compliance Conference 2017

Posted in Events, Mortgage, Regulatory Developments

InterContinental Miami 100 Chopin Plaza Miami, FL 33131 Join Morrison & Foerster at MBA’s Legal Issues & Regulatory Compliance Conference. Partner Don Lampe will be speaking on the following panels: RESPA and PHH Tuesday, May 9, 2017 1:00 p.m. – 2:15 p.m. RESPA Section 8 in a New World Tuesday, May 9, 2017 4:00 p.m…. Read More