tag:blogger.com,1999:blog-86819881203615860932018-05-11T14:09:04.136-04:00ABA Dodd-Frank TrackerABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.comBlogger291125tag:blogger.com,1999:blog-8681988120361586093.post-39381969649839339812017-08-02T10:15:00.000-04:002017-08-02T10:15:00.186-04:00ABA Urges Careful Consideration of Cost, Reg Burden in ATR Review<span style="font-family: Arial, sans-serif; font-size: 10pt;">ABA urged the CFPB to carefully consider costs and burdens associated with its Ability-to-Repay/Qualified Mortgage rule as it conducts a required assessment of the final rule’s effectiveness. <br /><br />While ABA generally supported the bureau’s proposed assessment plan, it noted that the review should not only focus on the consumer safety objectives of the ATR rules, but also take into account whether the mortgage markets are operating transparently and efficiently and facilitating access and innovation. The association added that the CFPB’s review should thoroughly examine overall compliance costs imposed by the rule. <br /><br />A key focal point of the assessment should be an analysis of the temporary category of QM loans for loans eligible to be purchased or guaranteed by Fannie Mae and Freddie Mac, ABA said, noting that the temporary GSE QM “is a critical provision of the law and one that prevented major disruptions in banks’ transition into the new ability-to-repay standards.” Acknowledging that the special GSE provisions must eventually sunset, the association said that the ATR rules “must advance towards a uniform and transparent set of guidelines, criteria and compensating factors that are objective and policy-based, and certainly independent of any institutional market player.” <br /><br />In addition, ABA recommended several modifications to the rule that would incentivize the expansion of safe lending activities. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-080217-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9279&elqTrackId=fc24ef980de7437da95a548244ecbd4a&elq=0706ad47d61542bab2e2fb71951d6281&elqaid=16780&elqat=1" target="_blank">Read the letter</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-73988059526394948982017-07-12T10:00:00.000-04:002017-07-12T10:00:24.807-04:00ABA Calls for Holistic Review of Servicing Rule<span style="font-family: Arial, sans-serif; font-size: 10pt;">ABA called on the CFPB to take a holistic approach to its review of the 2013 servicing rule to understand its full effects on servicers and consumers. The review </span><span style="background-color: white; color: #545454; font-family: Roboto, arial, sans-serif; font-size: x-small;">—</span><span style="font-family: Arial, sans-serif; font-size: 10pt;"> which is required under the Dodd-Frank Act </span><span style="background-color: white; color: #545454; font-family: Roboto, arial, sans-serif; font-size: x-small;">—</span><span style="font-family: Arial, sans-serif; font-size: 10pt;"> must be completed by 2019. <br /><br />In comments on the CFPB’s assessment proposal, ABA urged the bureau to incorporate the 2013 TILA servicing rules and the 2016 servicing amendments into its evaluation. The CFPB should also consider the trickle-down effect of the underwriting requirements of the Ability-to-Repay/Qualified Mortgage rule, which is also under review by the bureau, ABA noted. <br /><br />The association further recommended that the CFPB closely examine how the rules have improved the response and engagement of delinquent borrowers; the effectiveness of certain disclosures; and how the rules have affected the servicing market. ABA also offered several recommendations for improving the servicing rules, including revisiting the rule’s successors in interest requirements in situations where a borrowers is still living or dies without a will and excluding “posse letters” from a servicer’s information request and error resolution obligations. <br /><br />In addition, ABA said that the bureau should further explore the issue of “rolling delinquencies,” where borrowers are chronically delinquent but never exceed 120 before making a payment, and reconsider the five-day acknowledgement notice that must be provided after receiving a borrower’s loss mitigation application, noting that the short timeframe presents a challenge for servicers. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-071217-%20HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8977&elqTrackId=e0685cb8b97045b7b8a88aff4f07fe8c&elq=32ff9c2c21b04554980bb1255f26498e&elqaid=16584&elqat=1" target="_blank">Read the letter</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-21965834739850870172017-07-07T10:55:00.001-04:002017-07-07T10:55:11.423-04:00Fed’s Powell: Now Is ‘Last Best Chance’ for Housing Finance Reform <!--end of individual newsbyte--><!--begin individual newsbyte below--><!--paste newsbytes department head below--><br /><span style="color: black; font-family: "Arial",sans-serif; font-size: 10.0pt;">With the housing market having recovered and memories of the financial crisis growing distant, Federal Reserve Governor Jerome Powell said that “the next few years may present our last best chance to finish” critical reforms of housing finance, particularly regarding the secondary market and the role of housing GSEs Fannie Mae and Freddie Mac. If Congress does not enact reforms, Powell added, “we are at risk of settling for the status quo </span><span style="background-color: white; color: #545454; font-family: Roboto, arial, sans-serif; font-size: x-small;">— </span><span style="color: black; font-family: "Arial",sans-serif; font-size: 10.0pt;">a government-dominated mortgage market with insufficient private capital to protect taxpayers and insufficient competition to drive innovation.”<br /><br />Powell noted that it is “ironic” that housing finance remains the last major policy area untouched by major post-crisis reforms, especially given the bursting housing bubble’s role as “an essential proximate cause of the crisis.” He said that “the most obvious and direct step forward” would be to require “ample” private capital to support housing finance and to prevent bailouts of housing finance companies in distress.<br /><br />Other principles Powell laid out for housing finance reform include an explicit government guarantee applying only to securities, not to institutions; greater private-sector competition; and use of existing infrastructure to the extent possible. Powell also expressed concern that “the current system [may be] too rigid,” citing a recent ABA survey showing that banks are originating fewer and fewer non-Qualified Mortgages. </span><br /><span style="color: black; font-family: "Arial",sans-serif; font-size: 10.0pt;"><strong><br /></strong></span><span style="color: black; font-family: "Arial",sans-serif; font-size: 10.0pt;"><strong><span style="color: #005a8c; font-family: "Arial",sans-serif;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-070717-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8896&elqTrackId=938b38662a504d7db64ef7e10035c5de&elq=0c89e93084484523ac35875ee64e7aa1&elqaid=16510&elqat=1" target="_blank">Read the speech</a></span></strong></span><o:p></o:p>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-55509829035389564022017-06-23T10:00:00.000-04:002017-06-23T10:00:04.714-04:00State Associations Call on Senate to Advance Reg Relief Legislation<span style="font-family: "arial" , sans-serif; font-size: 10pt;">As the debate over financial regulatory reform now shifts to the Senate, 52 state bankers associations called on Senate leadership to support a bipartisan reg relief bill that would help create economic growth and improve the availability of credit to consumers.<br /><br />The associations encouraged lawmakers to support several measures included in ABA’s <a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=6980&elqTrackId=3892e067a7e14a24ab308a3125d8604a&elq=808b306d5c5549e4ac35a79549ffc50f&elqaid=16350&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Blueprint for Growth</span></strong></a>, including a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements and repeal of the Volcker Rule. They also called for a review of arbitrary asset thresholds, and for regulators to consider changes to capital and liquidity requirements.<br /><br />With the Treasury Department, regulators and individual lawmakers all expressing support recently for various reg reform initiatives, the associations expressed optimism for a bipartisan bill to move through the Senate. </span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">It is encouraging to see lawmakers of both parties, the House of Representatives, and the Treasury Department lay the foundation for changes <span style="font-family: "times new roman"; font-size: 13.3333px;">–</span> regulatory calibrations that can kick-start our economy while maintaining a financial system that is safe, sound, and resilient. We urge the Senate not to allow partisanship to stand in the way of promptly passing much-needed reforms, and we stand ready to work with you in support of the financial needs of America’s communities.</span></blockquote><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-062317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8715&elqTrackId=03b77abdcaa643e69c0329ec8fc4ce62&elq=808b306d5c5549e4ac35a79549ffc50f&elqaid=16350&elqat=1" target="_blank">Read the letter</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-58892187956666902642017-06-15T09:38:00.000-04:002017-06-15T09:39:10.052-04:00ABA Releases Second Edition of Free Mortgage Origination DeskbookABA and law firm BuckleySandler have released the second edition of “The CFPB Mortgage Origination Rules Deskbook,” a free and comprehensive reference guide to help bankers understand and comply with the CFPB’s rules when originating mortgage loans. The second edition covers all regulatory changes issued since the deskbook was first published in 2014, and it adds an entirely new chapter on complying with updates to the Home Mortgage Disclosure Act rules.<br /><br />The ABA members-only deskbook <span style="font-family: "times new roman";">–</span> available in a printable electronic format <span style="font-family: "times new roman";">–</span> consolidates all available CFPB compliance guidance. In addition to the rule text and official commentary, the deskbook encompasses CFPB interpretive rules, bulletins, small entity compliance guides, webinars and conference presentations and is intended to be a “one stop shop” for origination compliance.<br /><br />Co-authored by ABA SVP Rod Alba and BuckleySandler attorneys Joseph Reilly, Benjamin Olson, Kathleen Ryan and Joseph Kolar, the deskbook also covers ability-to-repay and Qualified Mortgage requirements, points and fees, loan originator compensation, appraisals, high-cost mortgages, the TILA-RESPA integrated disclosures and QM provisions for Federal Housing Administration and Veterans Administration loans, among others. <br /><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-061517-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8596&elqTrackId=6b3e0ecd426148e3b9949600dcc390a2&elq=dfcf5bf3d9f9400099dcb6bd19b440d7&elqaid=16274&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Download the deskbook</span></strong></a>.</span><strong style="font-family: arial, sans-serif; font-size: 13.3333px;"><span a="" analysis.="" members-only="" see="" style="color: #005a8c;" the=""><a href="https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/request-information-regarding-small-business-lending-market/" target="_blank"><img alt="" src="http://www.aba.com/aba/documents/GROCE/members.gif" style="border: 0pt none; padding: 0pt; vertical-align: middle;" /></a></span></strong>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-41139994281931820772017-06-09T11:59:00.000-04:002017-06-09T11:59:10.367-04:00House Passes Financial Choice Act<span style="font-family: Arial, sans-serif; font-size: 10pt;">The House passed the Financial Choice Act by a mostly party line vote of 233 to 186. The legislation is Financial Services Committee Jeb Hensarling’s sweeping, 600-page bill aimed at reforming parts of the Dodd-Frank Act’s extensive supervisory regime and providing regulatory relief for banks. <br /><br />The bill includes a number of regulatory relief provisions long sought by ABA as part of its <a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060917-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=6980&elqTrackId=c08be76aa16f469199a231be941db4a7&elq=87c0ff6a399c48c3bd755044925c0348&elqaid=16201&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Blueprint for Growth</span></strong></a>, including a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements, and repeal of the Volcker Rule. <br /><br />Included in the bill is a “regulatory off-ramp” for larger institutions subject to DFA’s heightened prudential standards and Basel III’s capital and liquidity standards, provided those institutions elect to maintain a 10 percent non-risk weighted leverage ratio. The Choice Act also focuses on ending “too big to fail” by replacing DFA’s Orderly Liquidation Authority with a new Bankruptcy Code designed to accommodate the failure of a large, complex financial institution. <br /><br />Also targeted for reform by the bill is the CFPB, which would be renamed the Consumer Law Enforcement Agency and stripped of its examination powers and “UDAAP” enforcement authority. The agency would be led by a single director removable at will by the president, and subject to the congressional appropriations process. <br /><br />The bill’s passage reflects an important step toward providing meaningful regulatory reform that will help America’s banks better serve their customers and communities, ABA President and CEO Rob Nichols said, though he noted that the bill “would have been much stronger had a provision to repeal the Durbin Amendment been retained.” With the bill’s passage, the fight for regulatory reform now shifts to the Senate. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060917-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8515&elqTrackId=01efb849301545a88e8a6e08e2b7133c&elq=87c0ff6a399c48c3bd755044925c0348&elqaid=16201&elqat=1" target="_blank">Read ABA's statement</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-17875981638596218452017-06-09T11:30:00.000-04:002017-06-09T11:30:01.930-04:00Nichols: Push for Reg Reform Will Shift to Senate<span style="font-family: Arial, sans-serif; font-size: 10pt;">As the Financial Choice Act passed the House, ABA President and CEO Rob Nichols said the association will now shift its focus to moving a regulatory reform bill through the Senate. <br /><br />In an interview with Bloomberg Radio, Nichols said he is optimistic about the chances for bipartisan reform. “There’s a recognition, and even a bipartisan one, that for the economy to move forward at a greater clip… we need to get the financial rule set properly calibrated and tailored to fit our financial markets today.” These calibrations include measures such as a Qualified Mortgage safe harbor for loans held in portfolio, the tailoring of regulations based on a bank’s business model and risk profile, and requiring a cost/benefit analysis for new regulations, all of which were included in the Choice Act. <br /><br />While ABA supports these measures, Nichols noted that other parts of the Choice Act “will require further study” as reg relief conversations get underway in the Senate. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060917-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8513&elqTrackId=5b703ecb22814ec0b39e5f361f3cfa0e&elq=87c0ff6a399c48c3bd755044925c0348&elqaid=16201&elqat=1" target="_blank">Listen to the interview</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-13073543799684329872017-06-08T11:50:00.000-04:002017-06-08T11:50:06.346-04:00ABA Commends House Reg Reform Effort Ahead of Choice Act Vote<span style="font-family: "arial" , sans-serif; font-size: 10pt;">As Congress prepares to vote on the Financial Choice Act, ABA wrote to House leadership commending the House Financial Services Committee Chairman Jeb Hensarling (R-Texas) for his efforts to bring regulatory relief to the nation’s banks. The full House is expected to vote on the bill on June 8, 2017. The ABA said:</span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">We agree with members of Congress on the need for strong regulation of our financial system. However, within the 25,000 pages of new and proposed rules since Dodd-Frank became law are requirements that are harming our ability to serve creditworthy customers and our communities… The Financial Choice Act will help address many of these concerns and allow banks to get back to serving their customers.</span></blockquote><span style="font-family: "arial" , sans-serif; font-size: 10pt;">The bill includes several ABA-supported provisions that would provide regulatory relief for banks, including a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements and repeal of the Volcker Rule. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><br /></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;">ABA also applauded an amendment by Rep. John Faso (R-N.Y.) that would help level the playing field for mutual holding companies and allow them to raise additional capital without placing their mutual structure at risk.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060817-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8483&elqTrackId=7b0a9c119a97449daebd706915cc05c1&elq=573fa6d3b1ce4e31848faa6bbe7e7f25&elqaid=16200&elqat=1" target="_blank">Read the letter</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-15922356996410363022017-06-05T11:00:00.000-04:002017-06-07T10:59:52.300-04:00With Choice Act Up for Vote and Treasury Report Expected, Nichols Tees Up Week Ahead <span style="font-family: "arial" , sans-serif; font-size: 10pt;">The week ahead is expected to be a busy one for financial reform in Washington, D.C. In an essay posted on Medium, ABA President and CEO Rob Nichols teed up the expected release of the Treasury Department's report responding to President Trump's call to streamline financial regulations, as well as Rep. Jeb Hensarling's Financial Choice Act, which comes up for a vote later this week.<br /><br />Nichols emphasized that all Americans have a stake in the future of financial reform.</span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">This busy week in D.C. will be a significant start on the regulatory reforms we need to accelerate this economy, grow jobs and create opportunity. If you’re concerned about job creation, local economic growth and access to affordable credit, you might want to pay attention to this other Washington story this week.</span></blockquote><span style="font-family: "arial" , sans-serif; font-size: 10pt;">Nichols was interviewed on NPR’s “All Things Considered” about the Financial Choice Act, which includes many provisions advocated by ABA as part of its <a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060517-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=6980&elqTrackId=8b5c0574f0234b71a5eb822f997a3e22&elq=f029ee34bd724cb3a74bb5ccbf2253c2&elqaid=16197&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Blueprint for Growth</span></strong></a>. He emphasized that ABA is not seeking a total repeal of the Dodd-Frank Act.</span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">We are not seeking to roll back all of Dodd-Frank. Our intention is to acknowledge what many regulators and legislators will tell you, publicly and privately, which is: aspects of Dodd-Frank overshot.</span></blockquote><span style="font-family: "arial" , sans-serif; font-size: 10pt;">Examples of ABA-supported provisions in the Choice Act include a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements, and repeal of the Volcker Rule.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><br /></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060517-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8431&elqTrackId=06df1dbca7864ddaa169ef7aa2a21630&elq=f029ee34bd724cb3a74bb5ccbf2253c2&elqaid=16197&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read Nichols' Medium article</span></strong></a>.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-060517-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8430&elqTrackId=3d14074cc30143e993304b388daeed07&elq=f029ee34bd724cb3a74bb5ccbf2253c2&elqaid=16197&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Listen to the interview</span></strong></a>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-75523541600992588882017-05-26T10:25:00.000-04:002017-05-26T10:25:08.203-04:00CFPB to Assess Effectiveness of Qualified Mortgage Rule<span style="font-family: "arial" , sans-serif; font-size: 10pt;">The CFPB released a plan to assess the effectiveness of its final Ability-to-Repay/Qualified Mortgage rule. The bureau’s review of the effectiveness of the rule is required by the Dodd-Frank Act, and comments on the plan will be accepted for 60 days after publication in the Federal Register.<br /><br />The proposed assessment process would examine the rule’s effects on mortgage costs, origination volumes, approval rates and loan performance. The bureau also said it would consider how creditors’ underwriting policies and procedures have changed as a result of the rule. Of special interest are outcomes related to self-employed borrowers, borrowers with seasonal or intermittent income, borrowers seeking smaller-than-average loan amounts, borrowers who use asset-derived income to repay the loan, borrowers with debt-to-income ratios above 43%, lower-income borrowers, minority borrowers and borrowers in rural areas.<br /><br />To conduct its assessment, the CFPB said it is planning “a limited request of data directly from creditors and other stakeholders” in addition to other data sources. The plan also includes interviews with creditors on their compliance activities. ABA will carefully review the CFPB’s proposed assessment plan and will submit comments.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-052617-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8322&elqTrackId=8a1f33d4903a4e82b8fd8f5026a5ca48&elq=7e3780fa07a344f98493d97b4c31b02d&elqaid=16076&elqat=1" target="_blank">Read the assessment plan</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-57671814313160379702017-05-26T10:13:00.001-04:002017-05-26T10:14:04.982-04:00FHFA Seeks Input on Improving Credit Access for Limited English Proficiency Borrowers <span style="font-family: "arial" , sans-serif; font-size: 10pt;">The FHFA is seeking input from the industry on the obstacles facing qualified mortgage borrowers with limited English proficiency (LEP) throughout all stages of the mortgage lifecycle. Specifically, FHFA is seeking feedback on issues qualified LEP borrowers face in learning about assistance resources, existing requirements governing interactions with LEP borrowers and other challenges to serving this population. Comments are due July 10, 2017.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span> <span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-052617-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8317&elqTrackId=83d852cda7d140e6a6097740608572dd&elq=7e3780fa07a344f98493d97b4c31b02d&elqaid=16076&elqat=1" target="_blank">Read more</a></span></strong>.</span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com9tag:blogger.com,1999:blog-8681988120361586093.post-47846208821504579212017-05-24T11:30:00.000-04:002017-05-24T11:30:39.483-04:00ABA Submits Recommendations for Housing Finance Reform<span style="font-family: "arial" , sans-serif; font-size: 10pt;">As part of the banking industry’s continuing response to President Trump’s executive order outlining “core principles” for financial regulation, ABA submitted two white papers to the Treasury Department with recommendations for reforming current mortgage lending rules and regulations and the government-sponsored enterprises Fannie Mae and Freddie Mac.<br /><br />ABA called for a full-scale review of current mortgage lending and servicing regulations, advocating for “careful fixes … to [ensure] that the laws are necessary, protective, effective, balanced and certain in their application.” Among the recommended changes were reforms to disclosure requirements, including the TILA-RESPA Integrated disclosure rules and the CFPB’s complex servicing rule. <br /><br />In addition, the association made several recommendations that would expand responsible lending while maintaining consumer protections, such as allowing loans held in portfolio to qualify as Qualified Mortgages and raising the 43% debt-to-income standard for QM loans. Finally, ABA pointed out that many of the rules have caused confusion or uncertainties, particularly in regards to liability, and called on regulators to clarify existing rules and expand the availability of cure provisions across all mortgage-related regulations. <br /><br />ABA also laid out nine principles for GSE reform, noting that “[t]he endpoint should be a reduced direct role of the federal government in mortgage finance.” As Congress considers the best way forward, ABA emphasized the importance of limiting the GSEs’ activities to a secondary market role of providing stability and liquidity to the primary mortgage market, and limiting taxpayer exposure to risk. At the same time, GSE reform should ensure equitable access to the secondary market for all lenders and the continuation of the To Be Announced market, allowing the sale of individual loans to the GSEs. ABA explained:</span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif; font-size: 10pt;">A more robust private market for housing finance should be fostered and encouraged with an ultimate goal of a much smaller direct governmental role, and with that role focused on ensuring market stability, access to the capital markets for all originators, and as a safety valve in the event of market failure.</span></blockquote><strong style="font-family: arial, sans-serif; font-size: 10pt;"><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-052417-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8289&elqTrackId=6f3724f824a14cda8a6bee947b59bc79&elq=677a3242677f45a5afdb421f499317c5&elqaid=16074&elqat=1" target="_blank">Read the paper on mortgage lending</a></span></strong><span style="font-family: "arial" , sans-serif; font-size: 10pt;">.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-052417-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8288&elqTrackId=8d2c27008e9048f9abc5c1cee4fedeaf&elq=677a3242677f45a5afdb421f499317c5&elqaid=16074&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read the paper on GSE reform</span></strong></a>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-5844213832569798802017-05-02T10:40:00.000-04:002017-05-02T10:40:40.001-04:00ABA Commends Congressional Effort to Reform Dodd-FrankAs the House Financial Services Committee prepares to begin the markup of the Financial Choice Act, ABA President and CEO Rob Nichols wrote to committee leadership commending them for their efforts to address the negative consequences of the Dodd-Frank Act. <br /><br />Nichols highlighted several ABA-advocated provisions in the bill. These include: the TAILOR Act, which requires regulators to tailor regulations based on a bank’s business model and risk profile; a Qualified Mortgage safe harbor for mortgages held in portfolio; the establishment of an independent office for examination review; a provision to raise the Federal Reserve’s small bank holding company threshold to $5 billion in consolidated assets; a measure providing greater flexibility for mutual banks; a repeal of the small business loan data collection requirement; and a short form call report for highly rated banks. The bill also includes a provision that would repeal the Durbin Amendment, as ABA strongly supports. <br /><br />In addition, Nichols commended the committee for its efforts to rein in the CFPB’s broad authority, and advocated for a bipartisan commission structure to provide greater accountability. He also urged the committee to take additional steps to provide regulatory relief from unnecessary stress tests. <br /><br />Finally, he expressed reservations about the Choice Act’s voluntary “off-ramp” from Dodd-Frank’s regulatory regime for banks that elect to maintain a specified level of capital. While acknowledging that the provision was well-intentioned, he pointed out that hundreds of well-run banks may choose not to pursue the exemption or be unable to do so, which would prevent them from achieving meaningful regulatory relief.<br /><br /><a href="http://www.aba.com/Advocacy/LetterstoCongress/Documents/ABALettertoHFSCreCHOICEAct.pdf" target="_blank">Read more</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-48122757598828776162017-05-01T09:30:00.000-04:002017-05-01T09:30:21.713-04:00Rep. Barr Introduces Bill to Expand Mortgage AccessRep. Andy Barr (R-Ky.) has introduced the Portfolio Lending and Mortgage Access Act (H.R. 2226). The bill would expand access to mortgage credit by treating loans originated by a bank and held in portfolio as Qualified Mortgages. The measure received bipartisan support in the last Congress. <br /><br />ABA EVP James Ballentine said:<br /><blockquote>It’s clear that regulatory requirements have restrained mortgage lending, and have made it particularly difficult for some creditworthy borrowers to obtain a home loan. This legislation is a common-sense approach that will help borrowers gain access to some of the lowest risk mortgage products offered by banks. Loans held in portfolio are well underwritten and conservative by their very nature. There is no need to create additional barriers for creditworthy borrowers for loans held in a bank’s portfolio.</blockquote><br /><a href="http://www.aba.com/Press/Pages/042817PortfolioLendingMortgageAccess.aspx" target="_blank">Read more</a>.<br />ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-21348894209595792862017-04-24T09:40:00.000-04:002017-04-24T09:40:04.568-04:00Fed Advisory Council Highlights Concerns over Regulations, ExamsMembers of the Federal Reserve’s Community Depository Institutions Advisory Council raised concerns about compliance examination processes and the current regulatory landscape in a recent meeting, according to minutes released by the Fed.<br /><br />The group said:<br /><blockquote>The council is very concerned that the working partnership that has existed for many years between examiners and bankers and credit unions is no longer working well, as manifested by increased examination timeframes, less risky concerns being mentioned as matters requiring attention or documents of resolution, and a lack of exam focus on an institution’s overall risk profile.</blockquote><br />Council members said they observed regulatory expectations for large institutions “trickling down” to community institutions, and they emphasized the need for regulators to tailor examinations based on the risk profiles of individual banks. They also raised concerns about the reduction in the overall level of examiner experience and expertise, noting that less-experienced examiners tended to take a “check-the-box” approach when conducting an examination, rather than focusing on the bank’s risk profile.<br /><br />The council cited several examples of ongoing regulatory challenges, including the complex Basel III capital rules, the TILA-RESPA integrated disclosure mortgage requirements and Qualified Mortgage rules. They also noted that bankers continue to face significant competitive pressure from digital lenders, particularly with millennial customers. Members noted that millennials “demonstrate a willingness to accept less favorable terms in exchange for the convenience of digital loan application processes.” They cited excessive regulations and intransigence on the part of core processors as key roadblocks in this area.<br /><br />The CDIAC advises the Fed on the economy, lending conditions and other issues. Members are selected from representatives of commercial banks, thrift institutions and credit unions serving on local advisory councils at the 12 Federal Reserve Banks. One member from each of those councils serves on the CDIAC, which meets twice a year with the Fed board in Washington.<br /><br /><a href="https://www.federalreserve.gov/aboutthefed/files/CDIAC-meeting-20170414.pdf" target="_blank">Read the minutes</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-20211379224952880062017-04-20T10:30:00.000-04:002017-04-20T10:30:11.700-04:00Hensarling Releases Full Text of Financial Reform BillHouse Financial Services Committee Chairman Jeb Hensarling (R-Texas) has released the latest legislative text of his Financial Choice Act, a 600-page bill aimed at rolling back and reforming parts of the Dodd-Frank Act’s extensive supervisory regime, as well as providing regulatory relief for banks of all sizes. A similar version of the legislation cleared the committee in the previous Congress. The committee is scheduled to hold a hearing on the bill next week.<br /><br />Title V of the Choice Act contains numerous provisions long sought by ABA. These regulatory relief measures would provide a Qualified Mortgage safe harbor to mortgage loans held in portfolio, tailor supervision to banks’ risk profiles and business models, raise the small bank holding company policy statement asset threshold to $5 billion, create an independent exam appeals process, provide charter flexibility for thrifts, stop data collection on small business loans, clarify the QM rule’s points and fees test, expand the short-form Call Report, enhance mortgage relief for smaller banks and smaller mortgage originators and prevent future “Operation Choke Point” activities.<br /><br />The bill further details plans to reform the CFPB, which would be renamed the Consumer Law Enforcement Agency and would be stripped of examination powers and “UDAAP” enforcement authority. The Choice Act would also repeal the Durbin Amendment, impose more stringent penalties for Wall Street in cases of fraud or deception and repeal sections of Dodd-Frank that limit capital formation, including the Volcker Rule. It would bring the new CLEA, FDIC, OCC, Federal Housing Finance Agency, National Credit Union Administration and supervisory functions of the Federal Reserve into the congressional appropriations process, mandate cost-benefit analyses of regulations and require congressional approval for “major rules.”<br /><br />Additional regulatory relief would be available for banks maintaining a 10% non-risk weighted leverage ratio that elect into the alternative regime. Qualifying banks would be exempt from federal capital and liquidity requirements, blocks on capital distributions, systemic risk regulations and limitations on mergers and acquisitions provided any new entity also maintains the minimum leverage ratio.<br /><br />Another key component of the Choice Act is ensuring no institution is “too big to fail” by replacing Dodd-Frank’s Orderly Liquidation Authority provision with a new Bankruptcy Code designed to accommodate the failure of a large, complex financial institution. Additionally, it significantly restricts the Federal Reserve’s ability to make discounted loans or bail out financial firms or creditors.<br /><br /><a href="https://financialservices.house.gov/uploadedfiles/choice_2.0_discussion_draft.pdf" target="_blank">View the full text of the bill</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com5tag:blogger.com,1999:blog-8681988120361586093.post-64486637291009774682016-11-21T09:40:00.001-05:002016-11-21T09:40:13.010-05:00DOE Releases Updated PACE Loan GuidelinesThe Department of Energy has released new best practices guidelines for residential Property-Assessed Clean Energy mortgages, which provide homeowners a way to have their homes undergo energy-efficient retrofitting financed through property tax assessments. The new guidelines are intended to help state and local governments as they expand their PACE programs, and address the various problems and abuses that have emerged in the market since the PACE framework was first established in 2009. <br /><br />Among other things, the guidelines suggest that PACE programs confirm property owners’ ability to repay their assessments, and that state and local governments work with program administrators to establish underwriting guidelines and criteria for PACE programs. <br /><br />ABA and the Federal Housing Finance Agency have previously raised concerns about PACE programs – which are currently authorized in more than 30 states – where the PACE lien is allowed priority over the first mortgage lien. By taking first lien position, PACE loans could harm borrowers and lenders who rely on the certainty of the first lien position on mortgages for affordable financing. FHFA has prohibited Fannie Mae and Freddie Mac from purchasing loans with PACE liens, citing concerns about taxpayer risk.<br /><br />ABA remains concerned about the lack of required consumer protections surrounding PACE loans, which puts consumers – especially older Americans – at greater risk for deceptive or predatory lending tactics and foreclosure. <br /><br /><a href="http://www.energy.gov/sites/prod/files/2016/11/f34/best-practice-guidelines-RPACE.pdf" target="_blank">View the guidelines</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-29040037804944470952016-09-13T09:50:00.000-04:002016-09-13T09:50:20.317-04:00ABA Thanks House Committee for Tackling Reg ReformAs the House Financial Services Committee prepares to consider Chairman Jeb Hensarling’s Financial Choice Act, ABA sent a memo thanking Hensarling for putting forth the bill, which would roll back the Dodd-Frank Act’s extensive supervisory regime and provide regulatory relief for banks of all sizes. “We look forward to working with the chairman and the committee as the Choice Act moves to the House floor,” ABA EVP James Ballentine said in a memo to committee members. <br /><br />ABA said:<br /><blockquote>[T]he sheer weight of more than 24,000 pages of proposed and final rules has become a key consideration for many institutions in determining their future. This is why Congress and the regulatory agencies must work together to continue to pursue legislative and regulatory changes that will keep financial institutions strong and vibrant so they may continue to serve their customers and communities.</blockquote><br />ABA commended the inclusion of several provisions that have been longstanding priorities, including: the TAILOR Act, which requires that regulations be tailored to a bank’s business model; a Qualified Mortgage safe harbor provision for loans held in portfolio; the creation of an exam appeals process; greater flexibility for mutual banks and small bank holding companies; the repeal of the Durbin Amendment; and other provisions that would eliminate unnecessary compliance problems and costs. <br /><br />However, the association also raised questions about other provisions, such as “additional aspects of the capital proposal that may unnecessarily limit the benefits of the approach to hundreds of well-run banks of all sizes, including many community and mid-size institutions,” adding that “the use of simple litmus tests for qualifying for relief could fail to fully incorporate the use of many safe and legitimate risk management tools that allow banks to better serve their customers and communities.” <br /><br />ABA also urged the committee to consider additional reform measures, such as requiring the Financial Stability Oversight Council to establish a formal process for classifying banks as “systemically important,” and streamlining currency transaction reporting.<br /><br /><a href="http://www.aba.com/Advocacy/LetterstoCongress/Documents/FINALMEMOR5983theFinancialCHOICEAct.pdf" target="_blank">Read the memo</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com3tag:blogger.com,1999:blog-8681988120361586093.post-21387789255643330432016-08-18T10:08:00.001-04:002016-08-18T10:08:33.342-04:00FDIC Releases Updated Ability-to-Repay and Qualified Mortgages Rule VideosThe FDIC has released updated technical assistance videos on the Ability-to-Repay and Qualified Mortgages Rule. The updated videos provide financial institution management, compliance officers and staff with resources for a better understanding of the current requirements of the Ability-to-Repay and Qualified Mortgages Rule.<br /><br /><a href="https://www.fdic.gov/news/news/financial/2016/fil16056.html?source=govdelivery&utm_medium=email&utm_source=govdelivery" target="_blank">Read more.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-24332500681162449652016-06-20T10:30:00.000-04:002016-06-20T10:30:29.994-04:00CFPB Updates Reg Z Dollar Thresholds The CFPB has announced 2017 changes in dollar thresholds for several Regulation Z provisions governed by the CARD Act, the Home Ownership and Equity Protection Act and the Dodd-Frank Act. The thresholds are based on changes in the Consumer Price Index. <br /><br />For credit cards, the penalty fees safe harbor for 2017 will remain at $27 for a first late payment. Due to a miscalculation from the previous adjustment, the bureau has recalculated the subsequent late payment safe harbor fee to be $38, effective immediately. This new figure will remain unchanged in 2017. The minimum interest charge disclosure threshold will also remain unchanged for 2017. The HOEPA loan threshold will increase slightly to $20,579 and the HOEPA fee trigger will be $1,029, effective Jan. 1. <br /><br />For Qualified Mortgages, points and fees cannot exceed 3% of loans of $102,894 or more; $3,087 for loans between $61,737 and $102,894; 5% for loans between $12,862 and $20,579; and 8% for loans of less than $12,862.<br /><br /><a href="http://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-announces-annual-dollar-thresholds-truth-lending-act-regulations-certain-credit-transactions/" target="_blank">Read more.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-83732434342357238972016-06-10T12:00:00.000-04:002016-06-10T12:00:31.677-04:00ABA Highlights Harmful Effects of Excessive Regulation In testimony before a House Small Business Committee panel, banking industry leaders offered examples of the harmful effects of excessive regulation on America’s banks, including those serving rural communities. <br /><br />Roger Beverage, president and CEO of the Oklahoma Bankers Association, who testified on ABA’s behalf, said <br /><blockquote>Regulation shapes the way banks do business. Bank regulatory changes – through each and every law and regulation, court case and legal settlement – directly affect the cost of providing banking products and services to customers. Even small changes can have a big impact on customers by reducing credit availability, raising costs and driving consolidation in the industry that limits consumer choice.</blockquote><br />Beverage urged lawmakers to support a number of measures that would help to alleviate the regulatory burden on financial institutions. These measures include the TAILOR Act of 2015, which would tailor regulation to banks’ business models; the Portfolio Lending and Mortgage Access Act, which treats all loans held in portfolio as Qualified Mortgages; and other legislation targeted at addressing the cumulative effects of new regulations. <br /><br />Also testifying at the hearing was Shan Hanes, president and CEO of First National Bank in Elkhart, Kan., and a member of ABA’s Agricultural and Rural Bankers Committee, who spoke about the issues facing rural bankers, including the increasing regulatory burden, the uneven playing field created by the government-sponsored Farm Credit System and the appraiser shortage in rural communities. <br /><br />Hanes said,<br /><blockquote>Rural banks will compete with anyone on a level playing field and they have not backed down from such competition in the past. But when there is a combination of an unfair playing field and over burdensome regulations, all banks have a difficulty in surviving, not just competing.</blockquote><br /><a href="http://www.aba.com/Advocacy/Testimonies/Documents/BeverageTestimony.pdf" target="_blank">Read Beverage's testimony.</a><br /><a href="http://smallbusiness.house.gov/uploadedfiles/6-9-16_hanes_testimony.pdf" target="_blank">Read Hanes' testimony.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-65344502127534604982016-05-20T10:40:00.000-04:002016-05-20T10:40:00.151-04:00RHS Amends Guaranteed Home Loan Program Regulations Earlier this month, the Rural Housing Service amended the regulations surrounding its Single Family Housing Guaranteed Loan program. The new regulations affect three areas: lender indemnification, refinancing and Qualified Mortgage requirements. <br /><br />The final rule expands lender indemnification authority for loss claims in the case of fraud, misrepresentation or noncompliance with applicable requirements. It also amends the agency’s refinancing provisions to require that the interest rate on the new loan not exceed the rate on the original loan, and adds a new streamlined refinance option. Finally, the rule conforms the agency’s programs to the ability to repay rules under the Truth in Lending Act, stating that a loan guaranteed by RHS is a Qualified Mortgage if it meets certain requirements set forth by the CFPB. <br /><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2016-05-03/pdf/2016-10217.pdf" target="_blank">Read the final rule.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-25283203595367451052016-04-27T10:40:00.000-04:002016-04-27T10:40:11.130-04:00ABA Commends CFPB Action on QM Coverage for Rural, Underserved Areas In a comment letter to the CFPB, ABA expressed its support for the CFPB’s recent interim final rule that broadened the availability of certain special provisions for small creditors operating in rural or underserved areas. Under the interim rule, small creditors – or banks that made no more than 2,000 first-lien covered transactions and have less than $2 billion in assets – will be eligible for special Qualified Mortgage provisions if they originate at least one covered mortgage loan on a property located in a rural or underserved area in the prior calendar year. <br /><br />ABA recommended that the bureau consider increasing the asset threshold limit to be considered a “small creditor” from $2 billion to $10 billion to allow more small institutions to take advantage of the regulatory relief the rule provides. <br /><br />The association also urged the CFPB to revise the language of the rule to allow creditors to begin taking advantage of special QM provisions immediately after beginning to lend in a rural or underserved area in 2016. Without this clarification, ABA pointed out, banks that only recently began lending in rural or underserved markets would have to wait until the end of the calendar year to take advantage of the QM provisions. <br /><br /><a href="http://www.aba.com/Advocacy/commentletters/Documents/ABACommenttoCFPB-RuralDefinition-04262016.pdf" target="_blank">Read the letter.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-90010164029520483562016-04-27T10:00:00.000-04:002016-04-27T10:00:17.746-04:00CFPB Adds Resources on QM, Rural Lending The CFPB has updated its website with new online resources to help bankers keep pace with regulatory changes. The new resources include a factsheet for small creditors operating in rural or underserved areas and a chart to help creditors determine whether they are eligible to make qualified mortgages.<br /><br /><a href="http://abamaestro.aba.com/trk/click?ref=zt50ebrbb_0-11cigiv-0-349dx370fax3121514&" target="_blank">View the factsheet. </a> <br /><a href="http://abamaestro.aba.com/trk/click?ref=zt50ebrbb_0-11cigiv-0-349dx370fbx3121514&" target="_blank">View the QM chart.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-72276830544823964582016-04-19T10:44:00.000-04:002016-04-19T10:44:12.052-04:00Reg Burden a Key Concern for Fed Advisory Council Members of the Federal Reserve’s Community Depository Institutions Advisory Council raised concerns over the difficult regulatory landscape facing community banks in a recent meeting, according to minutes released by the Fed. Among other things, the council pointed out that the increased regulatory burden is affecting banks’ ability to serve their customers, and has led many to exit entire lines of business due to increasing compliance costs or heightened risk exposure.<br /><br />The council cited several examples of the regulatory challenges banks face, including the complex Basel III capital rules, the recent TILA-RESPA integrated disclosure requirements and Qualified Mortgage rules, and also noted several areas that are likely to face greater regulatory scrutiny in the future, such as small business lending and mortgage servicing. <br /><br />While the council acknowledged that many institutions have adapted to the new rules and regulations, members cautioned that shadow banks and the largely unregulated fintech sector could pose a serious competitive threat in the future. In addition, the council pointed out that consumers also face a greater risk when using financial services offered by nonbank providers. <br />The council said:<br /><blockquote>Financial institutions are subject to extensive consumer protection regulations, capital requirements and stringent rules regarding consumer privacy and data security. Nonfinancial institutions offering payment services do not provide the same level of consumer protection or systemic strength.</blockquote><br />The CDIAC advises the Fed on the economy, lending conditions and other issues. Members are selected from representatives of commercial banks, thrift institutions and credit unions serving on local advisory councils at the 12 Federal Reserve Banks. One member from each of those councils serves on the CDIAC, which meets twice a year with the Fed board in Washington. <br /><br /><a href="https://www.federalreserve.gov/aboutthefed/CDIAC-meeting-20160408.pdf" target="_blank">Read the meeting minutes.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0