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Tuesday, May 26, 2015

CFPB Announces Spring 2015 Rulemaking Agenda

The CFPB announced its semi-annual update of its rulemaking agenda. The CFPB’s major initiatives and timing for action are listed below:

Home Mortgage Disclosure Act: The CFPB expects to issue a final rule in August 2015 to implement Dodd-Frank Act amendments to the Home Mortgage Disclosure Act.

Prepaid Financial Products: The CFPB expects to issue a final rule in January 2016 that would impose additional requirements for a range of prepaid financial products, including reloadable prepaid cards, certain digital and mobile wallets, and products that access overdraft services or offer credit features for a fee.

Payday, Auto Title, and Certain Other Loans: The CFPB plans to issue a Notice of Proposed Rulemaking later this year relating to proposals to regulate payday loans, auto-title loans, and certain other longer-term credit products.

Overdrafts: The CFPB is assessing whether it should issue a rule relating to overdraft services on checking accounts. The agenda anticipates an October 2015 date for pre-rule activities.

Debt Collection: The CFPB is developing proposed rules concerning debt collection. The agenda anticipates a December 2015 date for pre-rule activities.

Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures: The CFPB is implementing a rule, scheduled to take effect on August 1, 2015, that amends federal mortgage disclosures required under TILA and RESPA.

Follow-up on Other Mortgage Rules: The CFPB expects to issue a final rule in September 2015 to modify certain requirements for small creditors, including those that operate predominantly in rural or underserved areas. The CFPB also expects to issue a final rule in spring 2016 that would affect disclosures, early intervention, loss mitigation, and compliance with the rules when the consumer is a potential or confirmed successor in interest, is in bankruptcy, or sends a cease communication request.

Arbitration: The CFPB is considering whether to issue rules governing arbitration clauses. The agenda anticipates a September 2015 date for pre-rule activities.

Larger Participants in Auto Lending Market: The CFPB expects to finalize a proposal in June to define nonbank larger participants in the market for auto lending.

Read the CFPB announcement.
Read the regulatory agenda.

ABA Urges CFPB to Solicit Public Comments on Arbitration Study

ABA and other trade groups urged the CFPB to solicit public comment on its arbitration study before it considers rulemaking on the subject.

The groups said a formal comment period is essential to ensure transparency and to obtain thorough feedback on the 729-page report from all interested parties. Soliciting comments also would allow the CFPB to learn of any significant defects in the study’s analysis — “defects that otherwise will fatally taint any proposed rule that the Bureau might propose based on the study,” the groups said.

Read the letter.

Friday, May 22, 2015

The Week Ahead: May 25 - 29

  • Comments Due CFPB: Consumer Complaint Database Information  Read more.
  • Final Rule CFTC: Residual Interest Deadline for Futures Commission Merchants  Read more.
  • Webinar FRB/CFPB: TILA-RESPA Integrated Disclosures  Read more.

  • Briefing: Mortgage Banking: “TILA-RESPA Disclosures: Are You Ready?”   Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

Fed Seeks Comments on NACHA Same-Day Payments Rule

The Federal Reserve requested comments on changes that the regional Federal Reserve Banks would make in connection to NACHA’s same-day ACH rule.

The Reserve Banks are proposing to adopt the enhanced same-day ACH service by including NACHA’s new rule in their operating documents. The Fed is seeking comments on the rule’s provisions making same-day ACH capability mandatory for all financial institutions and the 5.2 cent per transaction fee paid to receiving institutions.

Comments are due by July 2, giving the Fed 11 weeks to review the comments and approve the proposal before NACHA’s Sept. 23 deadline for the Fed board to approve the rule.

Read the request for comments.

Fed Proposes ABA-Advocated Tweak to Liquidity Rule

The Federal Reserve proposed a rule that would count certain municipal bonds as high-quality liquid assets under the Liquidity Coverage Ratio — a measure ABA has advocated for since the regulatory agencies first published the liquidity standards.

The proposed rule would allow investment-grade, general obligation state and municipal bonds to count as HQLA up to certain levels as long as they meet the same liquidity criteria applying to corporate debt securities.

Due to the role banks play as investors in municipal markets, the proposed expansion of the HQLA definition is expected to be beneficial for all banks — not just those covered by the LCR.

Comments are due by July 24.

Read the proposed rule.

ABA-Backed Reg Reform Bill Clears Senate Committee

The regulatory reform bill introduced by Senate Banking Committee Chairman Richard Shelby (R-Ala.) was approved by the committee. The ABA-supported bill would provide regulatory relief for community, mid-size and regional banks, tailor the regulatory structure for systemically important banks and begin restructuring within the Federal Reserve System and at Fannie Mae and Freddie Mac.

Although the bill cleared the committee on a 12-10 party-line vote, statements from committee leaders pointed to further negotiations on elements of the bill, including the asset threshold for systemically important banks. The bill keeps the $50 billion threshold in place, but changes the process the regulators use to make the determination for institutions below $500 billion. Ranking Member Sherrod Brown (D-Ohio) signaled that he would support a higher designation level than today’s $50 billion.

ABA President and CEO Frank Keating welcomed the bill’s advance. He said:

This bill is a significant step toward removing many of the statutory and regulatory barriers that constrain banks’ ability to serve their customers and meet the needs of their local communities. We firmly believe that common ground exists for financial reform in this Congress. We need to seize it and move ahead together for the sake of our customers and the broader economy.

The bill’s regulatory relief provisions include nearly two dozen measures that are part of ABA’s Agenda for America’s Hometown Banks, many of which have been introduced as standalone measures or in other relief packages in both houses of Congress. During the committee vote, members also approved ABA-supported amendments that would bar regulators from participating in the Justice Department’s Operation Choke Point initiative and that would raise the asset threshold for CFPB supervision from $10 billion to $50 billion. Sen. Joe Donnelly (D-Ind.) joined the panel’s Republicans in voting for the amendments.