Tag Archives: Dodd-Frank

Taking the stage on Thursday, speakers at the ninth annual Five Star Conference, currently underway at the Hilton Anatole in Dallas, tackled the issue most politicians evade: When and where should government intervene in the housing market? Not often, according to speakers like Jack Konyk, executive director of government affairs with Weiner Brodsky Sidman Kider, and Edward Kramer, EVP of regulatory affairs with Wolters Kluwer Financial Services. The Dodd-Frank Act took center-stage during the debate, and the Consumer Financial Protection Bureau along with it.

The Federal Reserve said Monday that it may delay rules under Dodd-Frank related to stress tests for big banks until next year. According to a release, the change would hold off on implementation until September 2013, giving some elbow room to banks, state member banks, and savings and loans institutions with anywhere between $10 billion and $50 billion in total assets. The move follows a December 2011 rulemaking proposal to green-light rules and procedures for stress tests under Dodd-Frank.

The Consumer Financial Protection Bureau is on a roll lately. On Friday, the agency offered up rules to reduce interest rates, do away with points and fees, and screen mortgage loan officers. In the first of a slew of new rulemaking proposals, the CFPB would require lenders to strip loans of their origination points and discount fees for certain consumers. The proposals would also require background checks for loan officers and bar arbitration clauses for credit insurance practices.

The Consumer Financial Protection Bureau proposed two notices with rules designed to protect homeowners from surprises or mistakes made by their mortgage servicers. CFPB first announced in April that it was considering several proposals to implement requirements laid out in the Dodd-Frank Act, the bill that created the bureau. The bureau reached out to consumer groups, small servicers, industry stakeholders, and government agencies for input. CFPB refined its earlier ideas in response to the feedback.

Richard Cordray, director of the Consumer Financial Protection Bureau, laid out the agency├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós aims to reform mortgage lending standards before a congressional subcommittee Monday. Speaking before House lawmakers, Cordray acknowledged that although the Dodd-Frank Act has had a hand in improving most consumer lending markets, tight mortgage lending standards have kept creditworthy borrowers out of homes. In an effort to fix these issues, Cordray said that CFPB is proposing ├â┬ó├óÔÇÜ┬¼├àÔÇ£clear rules of the road├â┬ó├óÔÇÜ┬¼├é┬Ø to address each stage of the mortgage process and to rebuild consumer and investor confidence.

Financial reform advocates have two birthdays to celebrate on Saturday. This weekend marks the one-year anniversary of the watchdog Consumer Financial Protection Bureau and the two-year anniversary of the Dodd-Frank Act, the sweeping financial reform law that spawned it. Their stories run parallel to each other ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô and rightly so. The consumer bureau squeaked past partisan gridlock this time last year, just one year after Democrats, then in the majority of both houses of Congress, cleared Dodd-Frank for the president├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós signature.

A new study from Lake Research Partners is revealing the popular perspective on the controversial Dodd Frank Act. The poll, which was commissioned by AARP, the Center for Responsible Lending, Americans for Financial Reform, and the National Council of La Raza, showed that voters are generally in favor of the legislation.

Lake Research Partners released the results of an opinion poll showing that financial reforms enacted in recent years remain popular with potential voters. In light of events leading to 2008's financial meltdown, potential voters seem to overwhelmingly favor financial reform laws designed to prevent abuse. Nearly three-quarters (73 percent) of respondents favor the Dodd-Frank financial reforms, while only 20 percent expressed disagreement. The support for Dodd-Frank crosses party lines.

The CFPB has officially proposed mortgage disclosure forms designed to enhance understanding. The forms are a result of research, testing, writing, and review and are being created to help consumers comprehend the terms of their mortgage and the costs involved. The proposed forms are part of the agency's Know Before You Owe project and are to be provided after applying for a loan and before closing."When making what is likely the biggest purchase of their life, consumers should be looking at paperwork that clearly lays out the terms of the deal," said CFPB Director Richard Cordray.

The Consumer Financial Protection Bureau faces a new legal challenge as a Texas community bank and two conservative groups launch a lawsuit to undo it and the financial reform law that created it two years ago. The Big Spring, Texas-based State National Bank recently paired with the Competitive Enterprise Institute and 60 Plus Association to sue the embattled consumer bureau in federal court. The suit challenges the constitutionality of the CFPB and Dodd-Frank Act, as well as Richard Cordray's appointment.