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Tag Archives: Financial Services Regulatory

Secured Overnight Financing Rate and the Future of the Mortgage Market

Posted in Mortgage, Regulatory Developments

On July 11, Fannie Mae and Freddie Mac (the GSEs) announced their plans to develop new adjustable rate mortgage products that would rely on the Secured Overnight Financing Rate (SOFR) instead of LIBOR. Given the GSEs’ dominance in the mortgage market, their re-designed ARMs will undoubtedly have a significant impact on hybrid ARMs of the future…. Read More

Federal Banking Agencies Release New NPR Expanding HVCRE Proposed Rule

Posted in Mortgage, Regulatory Developments

The federal banking agencies released a notice of proposed rulemaking on July 12, 2019 which expands upon a previous notice of proposed rulemaking regarding the capital treatment of acquisition, development and construction loans. The new proposal addresses the capital treatment of certain loans that finance land improvements but do not finance the construction of residential… Read More

Assembly Bill 539 and the Future of Consumer Loans in California

Posted in Regulatory Developments

The California legislature is poised to cap rates on larger consumer installment loans. Assembly Bill 539 has passed the state Assembly and the state Senate Committee on Banking and Financial Institutions. Although directed only to California Financing Law (CFL) licensees, the bill has broader implications for consumer installment lending in California. Read our client alert.

CFPB Announces Public Comment Extension on HMDA Reconsideration

Posted in CFPB, Mortgage, Regulatory Developments

The CFPB extended the deadline for public comments on its advance notice of proposed rulemaking (ANPR) relating to the Bureau’s 2015 Rule addressing the Home Mortgage Disclosure Act (HMDA). The ANPR, issued on May 2, requested comments by July 8, 2019, on whether the CFPB should revise the data points lenders must report under the… Read More

Policy Makers Examine the Disparate Impact Risk of Artificial Intelligence and Underwriting

Posted in Fair Lending, Regulatory Developments

Recent Congressional activity reflects increasing concern in the fair lending implications of artificial intelligence (AI) in credit underwriting. Congress and regulatory agencies are likely to press financial services providers to better understand the AI they use and to ensure that its use does not result in unfair treatment of minorities and other protected groups through the… Read More

Take Two: Are You a Money Transmitter in Vermont?

Posted in Electronic Payments, Regulatory Developments

Last year, we noted that the Banking Department of the Vermont Department of Financial Regulation had taken the position that its money transmission law “does not exempt a payment processor or an agent of a payee from [money transmission] licensure.” Vermont’s Governor now has signed legislation that creates a statutory exemption from the money transmission… Read More

CFPB Requests Comment on Overdraft Rule

Posted in CFPB, Electronic Payments, Regulatory Developments

On May 15, 2019, the CFPB published a Request for Comment on the Regulation E provisions that require consumers to opt in to overdraft fees on one-time debit card and ATM transactions. The Request for Comment is made under the Regulatory Flexibility Act, which requires an agency to review rules within 10 years after their adoption…. Read More

CFPB Proposes New Rules to Modernize Debt Collection

Posted in CFPB, Regulatory Developments

On May 7, 2019, the Consumer Financial Protection Bureau (CFPB) issued proposed rules (“Proposed Rules”) under the Fair Debt Collection Practices Act (FDCPA) and its authority under the Dodd-Frank Act. If finalized, the Proposed Rules will be the first substantive regulations for debt collection practices since the FDCPA was enacted in 1977. The Proposed Rules would clarify the… Read More

In a First, FinCEN Assesses Civil Money Penalty Against Peer-to-Peer Virtual Currency Exchanger

Posted in Enforcement Actions, Regulatory Developments

The Financial Crimes Enforcement Network (“FinCEN”) issued a press release announcing a civil money penalty for violations of the Bank Secrecy Act against Eric Powers, an individual who acted as a peer-to-peer virtual currency exchanger. The enforcement action is the first-ever penalty assessed by FinCEN against a peer-to-peer virtual currency exchanger. Our alert discusses this recent… Read More

Federal Reserve Proposes New Control Regulations

Posted in Regulatory Developments

The Board of Governors of the Federal Reserve System  released a proposed rule to revise regulations related to the determination of “control” under the Bank Holding Company Act (“BHC Act”) and the Home Owners’ Loan Act. The Proposed Rule would incorporate existing interpretations under the “controlling influence” prong of the control definition into Federal Reserve regulations and… Read More

Banking Agencies Propose a More Tiered Approach to Large Foreign Bank Supervision

Posted in Regulatory Developments

On April 8, 2019, the federal banking agencies released two proposals which, if adopted, would further tailor the approach to supervision of large foreign banking organizations (FBOs). For FBOs with a more significant U.S. presence, the proposals would establish categories for the application of requirements based on size and certain other risk-based indicators. These categories would… Read More

Federal Reserve and FDIC Issue Proposed Changes to Resolution Plan Requirements for Foreign and Domestic Banking Organizations

Posted in Regulatory Developments

On April 8 and 16, 2019, the Federal Reserve and the FDIC published proposed changes to resolution plan (or “living will”) requirements applicable to U.S. and foreign banking organizations. The regulatory changes are necessary because the 2018 Regulatory Relief Act raised the asset thresholds for applicability of the living will requirements. The proposal would apply different… Read More

Unanimous but Narrow SCOTUS Ruling on Fair Debt Collection Practices Act

Posted in Foreclosure, Mortgage, Regulatory Developments

On March 20, 2019, the Supreme Court unanimously ruled in Obduskey v. McCarthy & Holthus LLP that a business engaged in non-judicial foreclosure is not subject to all of the requirements and prohibitions applicable to “debt collectors” under the Fair Debt Collections Practices Act. We discuss The Supreme Court’s decision and how this ruling is… Read More

CFPB Proposes Revisions to Small-Dollar Loan Rule

Posted in CFPB, Regulatory Developments

On February 6, 2019, amidst strong opposition from representatives of consumer groups and some members of Congress, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule to revise its controversial November 2017 small-dollar loan rule (2017 Rule). The proposed rule would effectively rescind the 2017 Rule’s requirement that lenders determine a borrower’s ability to… Read More

CFPB Issues FAQs for the TRID Rule

Posted in CFPB, Regulatory Developments

The Consumer Financial Protection Bureau (CFPB) recently posted a new compliance tool on its website – answers to frequently asked questions (FAQs) about the TILA-RESPA Integrated Disclosure Rule (“TRID Rule”). The FAQs were posted without advance notice or comment, signaling that perhaps the CFPB will dispense with lengthy processes when providing written guidance. What follows is a… Read More

CFPB Initiates Fourth Review of the Consumer Credit Card Market

Posted in CFPB, Credit Cards, Regulatory Developments

On January 31, 2019, the Consumer Financial Protection Bureau published a Request for Information regarding the consumer credit card market. In accordance with Section 502(a) of the CARD Act, the Bureau conducts a biennial review of the consumer credit card market by soliciting public comment and feedback. In the past, the Bureau has used these… Read More

CFPB and New York Attorney General Announce Settlement with Retailer for Violations of TILA and CFPA

Posted in CFPB, Credit Cards, Regulatory Developments

On January 16, 2019, the Consumer Financial Protection Bureau and the New York Attorney General announced a settlement with a retailer for alleged violations of the Consumer Financial Protection Act of 2010 and the Truth in Lending Act, as well as New York State law arising out of the retailer’s sales practices for its store… Read More

CFPB Announces Settlement for Violations of the EFTA and CFPA

Posted in CFPB, Regulatory Developments

On January 3, 2019, the Consumer Financial Protection Bureau (CFPB) announced a settlement with a federal savings bank for alleged violations of the Electronic Fund Transfer Act (EFTA) and Regulation E, as well as alleged violations of the Consumer Financial Protection Act of 2010 (CFPA). This is the first CFPB enforcement action under Director Kathy… Read More

Are You a Money Transmitter in Michigan? In California?

Posted in Regulatory Developments

The payments and money transmission regulatory landscape continues to evolve.  A key new development is that Michigan has affirmed by legislation that “agent of a payee” transactions meeting certain criteria are not subject to regulation under the state’s money transmission licensing law. However, the California Department of Business Oversight (the “DBO”), which regulates money transmission… Read More

The Bureau of Consumer Financial Protection Proposes Revised No-Action Letter Policy and New Product Sandbox

Posted in CFPB, Regulatory Developments

On December 13, 2018, the Bureau of Consumer Financial Protection published in the Federal Register a proposed policy, which would modify its 2016 Policy on No-Action Letters and create a new “Product Sandbox” policy in an effort to encourage banks and financial services providers to test new financial products. The alert discusses the Proposed Policy’s… Read More

CFPB Releases Compliance Guide for Amended HMDA Rule

Posted in CFPB, Mortgage, Regulatory Developments

Last week, the CFPB released a new compliance guide to accompany its October 15, 2015, final rule amending Regulation C, which implements the Home Mortgage Disclosure Act. As discussed in two previous alerts – available here and here – the final rule makes sweeping changes to the types of institutions and transactions covered by Regulation… Read More

Financial Services Regulatory and Enforcement Current Issues

Posted in Enforcement Actions, Events

Join Morrison & Foerster on January 27, 2015 for the Financial Services Regulatory and Enforcement Current Issues seminar.  During this half-day briefing, which will take place at Morrison & Foerster’s New York office from 8:00 am – 2:10 pm, we will discuss: The long arm of the Volcker Rule: How to spot issues so you… Read More