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
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
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
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.
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
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
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
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
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
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
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
Ending months of speculation and insider reading of tea leaves, on July 10, 2017, the CFPB issued a final rule regarding the use of arbitration agreements in specified consumer financial contracts (Final Rule). The Final Rule was published in the Federal Register on July 19, 2017. As was substantively expected, the Final Rule: 1) bars… Read More
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
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
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
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
On June 8, 2017, the Financial CHOICE Act of 2017 (the “CHOICE Act”) was passed on a party line vote by the U.S. House of Representatives, with nearly all Republicans voting in support and nearly all Democrats voting against passage. The CHOICE Act now moves to the U.S. Senate where it faces an uphill battle…. Read More
Since his inauguration on January 20, 2017, President Trump has issued a number of presidential orders and memoranda relating to the reduction of regulation. Among these include the “two-fer” order, a memorandum to the Department of Labor relating to the delay of its Fiduciary Duty Rule and an order to identify and reduce tax regulatory… Read More
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
On April 26, 2017, the Financial Services Committee of the U.S. House of Representatives held a hearing entitled “A Legislative Proposal to Create Hope and Opportunity for Investors, Consumers, and Entrepreneurs.” The purpose of the hearing was to examine the discussion draft of the “Financial CHOICE Act of 2017” (or “CHOICE Act 2.0”) which was… Read More
A March 13, 2017 presidential order requiring a comprehensive plan to reorganize the executive branch could be the first step toward streamlining the financial regulatory structure. The Executive Order requires the Director of the Office of Management and Budget to propose a plan within a year to reorganize government functions and eliminate unnecessary agencies, agency… Read More
On March 9, the CFPB announced in a blog post a proposal to delay the effective date of the final rule on prepaid accounts (Final Rule) for six months to April 1, 2018. The Bureau also released a guide for preparing the short-form disclosure required under the Final Rule. Read our client alert.
On February 3, 2017, President Donald Trump signed an executive order outlining his core principles for regulating the United States financial system. We will continue to monitor news relating to the executive order and report developments on this blog. Click here to read the executive order.
On January 13, 2017, a week before the change in Administration, the Obama White House issued a white paper entitled “A Framework for FinTech” (“White Paper”). The White Paper highlights various FinTech initiatives that were taken by the previous Administration and lays out policy objectives and principles that the Obama White House thought should be… Read More