Tag Archives: Dodd-Frank

The Consumer Financial Protection Bureau joined an exclusive law enforcement club Monday as it announced an agreement with the Federal Trade Commission that makes it a full-fledged member of the Consumer Sentinel Network. Law enforcement agencies and personnel will now be able to view consumer complaints the CFPB submits about credit issues, debt collection, and - eventually - mortgage lending practices that complainants report. An FTC spokesperson says the CFPB will eventually add mortgage lending complaints.

A recent ruling by U.S. Court of Appeals in Washington, D.C., faulted the Securities and Exchange Commission for failing to perform a sufficiently thorough economic impact analysis before it moved forward with a new rule, according to Bloomberg News. The decision could roll over onto provisions established by the Dodd-Frank Act, delaying those provisions and preventing new rules from going into effect. Analysts say the court ruling may delay more Dodd-Frank rules.

A rule recently finalized by the Federal Trade Commission will take effect this month, prohibiting mortgage brokers, servicers, and nonbank lenders from advertising 19 practices it calls deceptive. The rule will enable the FTC, newly opened Consumer Financial Protection Bureau, and state regulators to issue civil monetary fines and penalties against wayward mortgage advertisers. The Mortgage Acts and Practices Rule prescribes a number of penalties for deceptive claims about mortgages.

On Thursday the Office of Thrift Supervision went dark in offices and locations around the country, with the bulk of its supervisory responsibilities and employees relocating to the Office of the Comptroller of the Currency and several other federal agencies. Come October, the agency ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô responsible for supervising savings banks and associations since 1989 ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô will officially cease to exist. The OCC received transfers of authority that includes regulating institutions with less than $10 billion in assets.

Real estate and relocation servicers provider Realogy Corporation became the latest in a string of companies to file critical commentary with regulatory authorities overseeing the Qualified Residential Mortgage rule, the embattled proposal that industry groups say would crimp housing by forcing homebuyers to front 20 percent in down payments. Realogy joins a host of other critics, including the Coalition for Sensible Housing Policy, 320 members of Congress, and some 44 private organizations.

Signaling that it means business, the newly opened Consumer Financial Protection Bureau undertook its first major stab at the rule-making process by issuing a proposed rule that would shift alternate mortgage origination from the state to federal level nationwide. The rule applies to Regulation D under the Alternative Mortgage Transaction Party Act. If enacted, it would enact a Dodd-Frank provision by allowing state-licensed mortgage originators to make alternative loans even states with laws that prohibit such loans.

Passing a bill aimed at reforming the agency, House lawmakers showed no sign of stopping in their attempts to reform the Consumer Financial Protection Bureau just one day after it officially opened its doors. On Thursday the lower chamber pushed through H.R. 1315, titled the Consumer Financial Protection Safety and Soundness Improvements Act, which ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô contingent on Senate action and a bicameral reconciliation process ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô would swap the director for a commission and strengthen the Financial Stability Oversight Council.

Following months of anticipation among critics and admirers alike, the Consumer Financial Protection Bureau formally opened its doors Thursday, taking over rule-writing and enforcement abilities for 18 consumer financial laws, preparing a host of new regulators, and assuming an array of powers provided by the Dodd-Frank Act. The launch notwithstanding, a tied-up confirmation process, scale-up difficulties, and stiff political opposition from the past year hold the CFPB back, making some wonder how the bureau will function.

In testimony before the House financial services committee and two subcommittees, Consumer Financial Protection Bureau associate director and potential nominee Raj Date made it clear that the agency plans to pounce on new rules for mortgage-servicers in July. Date described a transfer of authority to the bureau from seven agencies set to occur in July. According to Bloomberg News, the congressional committee asked Date to testify as it looks over gaps and lapses in the current body of mortgage servicing regulation.

The National Association of Realtors released a survey this week showing strong support for the belief that homeownership is a credible and worthy goal, with 72 percent of renters surveyed agreeing that owning a home remains a top priority. The 2011 National Housing Pulse Survey signaled a 72 percent thrust among renters who want to own a home, a marked improvement from 63 percent last year. The survey revealed a backlash against the proposed Qualified Residential Mortgage rule, which critics charge will raise down payments by 20 percent.