Banking Industry

  • FDIC Quarterly Banking Profile, available here.


  • Ability to Repay rule: CFPB releases amendments, available here.
    • Banks with less than $2 billion in assets and annually make 500 or fewer first-lien mortgages:
      • Mortgage loans held in portfolio may achieve "Qualified Mortgage" status even if borrowers' debt-to-income ratios exceed 43%.
      • Balloon loans—two-year transition period during which balloon loans may be treated as QMs, if certain conditions are met.
      • Higher annual percentage rates allowed for QMs—350 bps rather than 150 bps over average benchmark.
    • Loan originator compensation—compensation of originator employees not counted toward the 3% points and fees threshold for QMs.
    • Certain nonprofit and community-based lenders exempt from Ability-to-Repay rule.
  • Financing credit insurance premiums
    • CFPB extends effective date of final rule to Jan. 10, 2014, in order to permit CFPB to clarify applicability of rule to transactions other than those in which a single premium is added to loan amount at closing.
  • Making Home Affordable program extended to December 31, 2015.


  • National Bank Act preempts state common law tort claims relating to fees on a CashPay card program. Robinson v. Bank of America, N.A., D.C. No. 2:11-cv-03939-GHK-JEM (unpublished mem. op.) (9th Cir., May 22, 2013).

Abusive Practices

  • CFPB files first complaint relying on its new Dodd-Frank powers to halt "abusive" practices: CFPB v. American Debt Settlement Solutions, Inc. Complaint and proposed order are available here.
  • Debt-relief industry a target of CFPB.
  • Per CFPB, abusive practices exist where
    • Company "takes unreasonable advantage of a consumer in certain ways."
    • Company "interferes with a consumer's ability to understand a term or condition of a financial product or service."

Electronic Currency

  • Liberty Reserve and co-founders and managers indicted for money laundering and operation of an unlicensed money transmitter business. Indictment and supporting documents available here.

Too Big to Fail

  • FSOC deems evidentiary record complete in determining whether a set of nonbank financial companies are to be subject to enhanced prudential standards and supervision by the Federal Reserve. Resolution available here.
    • Institutions not publicly identified.
  • Regulatory Landscape: A U.S. Perspective, Speech by Federal Reserve Governor Yellen at the International Monetary Conference (June 2, 2013), available here.

Money Market Funds

  • Proposed rule to be considered at SEC open meeting on June 5, 2013.

Swaps and Security-Based Swaps

  • Antidisruptive Practices Authority, CFTC interpretive guidance and policy statement, 77 Fed. Reg. 31890 (May 28, 2013).

Bank Closing

  • Banks of Wisconsin d/b/a Bank of Kenosha, Kenosha, WI (May 31, 2013).
    • P&A agreement with North Shore Bank, FSB, to assume all deposits.

Federal Reserve Board

  • Closed meeting scheduled for June 3.
    • To consider advance and discount rates to be determined by Reserve Banks.


  • Open meeting scheduled for June 4.
  • Discussion agenda
    • Definition of "predominantly engaged in activities that are financial in nature or incidental thereto" for purpose of determining financial institutions that may be subject to Title II orderly liquidation process.


  • Open meeting scheduled for June 3.

Regulatory Comment Deadlines

  • June 3 – CFPB: Amendments to the 2013 mortgage rules under RESPA and TILA.
  • June 7 – CFPB: 60-day PRA notice – report of terms of credit card plans.
  • June 7 – CFTC: Swap Dealers and Major Swap Participants – clerical or ministerial employees are not "associated persons."
  • June 15 – Federal Reserve: Annual assessments of bank holding companies and savings and loan holding companies with assets of $50 billion or more. (Regulation TT)
  • July 8 – CFPB: Consumer financial civil penalty fund.
  • July 15 – CFPB: 60-day PRA notice: Truth in Savings Act.
  • July 22 – SEC: all Dodd-Frank Title VII proposed rules on security-based swaps and security-based swap market participants have been reopened for comment.
    • Includes S7-43-10: End-User Exception to Mandatory Clearing of Security-Based Swaps
  • August 21 – SEC: Cross-border security-based swap transactions.

Upcoming Events

  • June 3
    • FSOC and Federal Reserve Board meetings
  • June 4
    • FDIC board meeting
    • Sen. Banking Comm., "Iran Sanctions: Ensuring Robust Enforcement, and Assessing Next Steps"
  • June 5
    • SEC meeting
    • House Fin. Serv. Comm., Subcomm. on Capital Markets and GSEs, "Examining the Market Power and Impact of Proxy Advisory Firms"
    • Sen. Banking Comm., "Long Term Sustainability for Reverse Mortgages: HECM's Impact on the Mutual Mortgage Insurance Fund"
    • Sen. Banking Comm., "State of the American Dream: Economic Policy and the Future of the Middle Class"
  • June 18-19
    • FOMC meeting.