• Proposed Rule Would Make it Easier for Stay-at-Home Spouses to Get Credit Cards

The CFPB on October 17 proposed amendments to existing regulations to make it easier for spouses or partners who do not work outside of the home to qualify for credit cards. The proposal would allow a stay-at-home spouse or partner to rely on shared income from his or her spouse or partner when applying for a credit card account. Comments on the proposal will be due within 60 days after publication in the Federal Register, which is expected shortly.

Nutter Notes: The Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) requires that credit card issuers evaluate a consumer’s ability to make the necessary payments before opening a new credit card account. Under the Federal Reserve’s regulations implementing the CARD Act, a credit card issuer generally may only consider the individual card applicant’s income or assets.

  • Federal Banking Agencies Release Large Bank Stress Testing Rules

The FDIC, Federal Reserve and OCC announced on October 9 final rules that implement the company-run stress testing under the Dodd-Frank Act, which requires all financial companies with total consolidated assets of more than $10 billion that are regulated by a primary federal financial regulatory agency to conduct an annual company-run stress test. The final rules will become effective on the date they are published in the Federal Register, which is expected shortly.

Nutter Notes: In general, institutions with assets greater than $50 billion are required to begin stress testing this year. Financial companies, including banks and bank holding companies, with between $10 billion and $50 billion in total assets will be required to begin conducting their first company-run stress tests in the fall of 2013 and will not have to publicly disclose the results of their first stress tests.