CFTC Final Rule on Clearing of Credit Default Swaps and Interest Rate Swaps
On November 28, the CFTC issued final rules requiring certain credit default swaps and interest rate swaps to be cleared by registered derivatives clearing organizations (DCOs). Market participants will be required to submit a swap that is identified in the rule for clearing by a DCO as soon as technologically practicable and no later than the end of the day of execution. The final rules will be effective 60 days after publication in the Federal Register. CFTC Release. CFTC Final Rule.
Fed, Treasury Proposed Amendments to Bank Secrecy Act Definitions
On November 29, the Fed and the Financial Crimes Enforcement Network, a bureau of the Treasury, proposed amended definitions of “funds transfer” and “transmittal of funds” under the regulations implementing the Bank Secrecy Act. The proposed amendments maintain the current scope of funds transfers and transmittals subject to the Bank Secrecy Act following amendments to the Electronic Fund Transfer Act made pursuant to the Dodd-Frank Act. Comments must be submitted no later than January 25, 2013. Fed Release. Fed Proposed Rule.
CFTC No-Action Relief for Swap Clearing by Cooperatives and Affiliates
On November 28, the CFTC Division of Clearing and Risk issued time-limited no-action letters granting relief from required clearing under Section 2(h)(1)(A) of the Commodity Exchange Act and the newly adopted Part 50 regulations for (i) certain swaps entered into by qualifying cooperatives and (ii) certain swaps entered into by qualifying affiliated counterparties. The no-action relief provided by each letter will remain effective until the earlier of April 1, 2013 or the effective date of final rulemaking regarding the clearing exemptions for cooperatives or affiliated counterparties, respectively. CFTC Release (Cooperatives). CFTC Release (Affiliates). CFTC No Action Letter (Cooperatives). CFTC No Action Letter (Affiliates).
CFPB Bulletin on Proposed Changes to Remittance Rule
On November 27, the CFPB issued a bulletin explaining the CFPB’s intent to propose limited adjustments to its rule on international money transfers as well as an extension of the date the rule will become effective until the spring of 2013. The proposed changes will address what should happen if a consumer provides an incorrect account number for a transfer and how remittance providers must disclose certain third-party fees and foreign taxes. CFPB Bulletin.
CME Proposed Rule on Cleared Swap Reporting
On November 28, the CFTC requested comment on a request from the Chicago Mercantile Exchange for approval of CME Rule 1001 regarding the reporting of cleared swaps. Comments must be submitted no later than December 21. CFTC Release.
CFTC Amended FAQ on Cleared Swap Reporting
On November 28, the staff of the CFTC amended its “Frequently Asked Questions on Reporting of Cleared Swaps” to remove certain questions. Matters raised in the withdrawn questions and answers are currently under consideration by the CFTC in connection with a request from the Chicago Mercantile Exchange for approval of CME Rule 1001. CFTC Release. CFTC FAQ.
Interagency Statement on Restrictions on Conversions of Troubled Banks
On November 26, the Fed, the FDIC, and the OCC, in conjunction with the Conference of State Bank Supervisions, issued “Interagency Statement on Section 612 of the Dodd-Frank Act: Restrictions on Conversions of Troubled Banks”. The statement describes the general prohibition on charter conversions by certain insured depository institutions. Bulletin. Statement.
FHA Changes to Loss Mitigation Home Retention Options
On November 20, the FHA announced changes to its loss mitigation program which will allow more distressed borrowers to qualify for FHA loss mitigation interventions and to get greater assistance. Included among the changes are: (i) streamlining the FHA’s Loss Mitigation Home Retention Option to a 3-tier incentive structure; (ii) redefining “Special Forbearance”; (iii) eliminating some requirements which limited lenders’ ability to provide borrowers with assistance; and (iv) expanding HAMP. FHFA Release.
CFTC No-Action Letter on Pay-to-Play Rules for Swap Dealers
On November 20, the CFTC issued a no-action letter on pay-to-play rules for swap dealers who conduct business with governmental special entities. The rules restrict a swap dealer from engaging in certain activities with a governmental special entity if the swap dealer (or covered associate) made or solicited contributions to an official of that governmental special entity during the preceding two years. The no-action letter provides relief for certain contributions. CFTC Release. No-Action Letter.
CFTC No-Action Letter on Timeline for Swap Data Reporting Rules
On November 20, the CFTC issued a no-action letter providing swap dealers with time-limited no-action relief from certain requirements of the CFTC’s swap data reporting rules in Parts 43, 45, and 46 of the CFTC’s regulations. The no-action letter establishes a common monthly date by which all newly registered swap dealers must be in compliance with their reporting obligations under the rules, and extends the deadline for reporting historical swap transaction data, as required under Part 46. CFTC Release. No-Action Letter.
CFPB Extension for Mortgage Disclosure Rules
On November 16, the CFPB amended Regulation Z (Truth in Lending) to delay certain disclosure requirements in the Dodd-Frank Act that would otherwise take effect on January 21, 2013. The CFPB plans to implement these disclosures as part of the integrated mortgage disclosure forms proposed earlier this year which combine certain disclosures that consumers receive in connection with applying for and closing on a mortgage loan under the Truth in Lending Act and the Real Estate Settlement Procedures Act. CFPB Release. CFPB Rule.