CFPB Proposed Modifications to Mortgage Rules
On June 24, the CFPB issued proposed clarifications and revisions to its January 2013 mortgage rules with respect to ability-to-repay and qualified mortgages. Among other items, the proposed rule would: (i) outline procedures for obtaining follow-up information on loss-mitigation activities; (ii) facilitate servicers' offerings of short-term forbearance plans; (iii) facilitate lending in rural or underserved areas; (iv) make clarifications regarding the financing of credit insurance premiums; (v) clarify the definition of a loan originator; (vi) clarify the points and fees thresholds for manufactured housing employees; and (vii) revise the effective dates for the "Loan Originator rule" and the ban on financing of credit insurance to January 1, 2014 (instead of January 10, 2014). Comments on the proposed rules must be submitted by July 22. CFPB Release. CFPB Proposed Rule. CFPB Regulatory Implementation Page.
CFTC No-Action Relief
From June 26 through June 28, the CFTC released the following no-action letters:
- June 28: Masking of Certain Identifying Information for Part 45 and Part 46 Reporting Counterparties.
- June 28: Portfolio Reconciliation Requirements for Swap Dealers and Major Swap Participants.
- June 27: Certain External Business Conduct Standards and Documentation Standards for Swap Dealers and Major Swap Participants.
- June 27: Certain Business Conduct Standards for Foreign Exchange Intermediated Prime Brokerage Arrangements.
- June 27: Treatment of Swap Transactions for Persons Engaging in Floor Trader Activities.
- June 27: Relief from Reporting Requirements of Part 45 for CDS clearing-relating swaps.
- June 27: Relief concerning Bespoke or Complex Swaps.
- June 26: Documentation Standards imposed on Swap Dealers and Major Swap Participants in connection with (i) foreign exchange transactions that are swaps; and (ii) physically-settled foreign exchange forwards and swap agreements.
- June 26: Relief from Obligation to Report Valuation Data for Cleared Swaps.
- June 26: Duties imposed on Swap Dealers and Major Swap Participants for external business contact and documentation requirements relating to ‘Intended-To-Be-Cleared’ (ITBC) Swaps.
- June 26: Annual Compliance Reports for Swap Dealers.
- June 26: Terms that are included in Portfolio Reconciliations.
Basel Proposals for International Leverage Ratio and Disclosure Requirements
On June 26, the Basel Committee on Banking Supervision released for consultation its Revised Basel III Leverage Ratio Framework and Disclosure Requirements. Comments on the consultative report must be submitted by September 20. Basel Release. Basel Consultative Report.
Fed Proposal on Data Collection Requirements
On June 25, the Fed issued a proposed rule relating to data collection requirements for certain money market instruments. Comments must be submitted within 60 days of publication of the proposed rule in the federal register. Fed Release. Fed Proposed Rule.
CFPB Procedural Rule on Nonbank Supervision
On June 26, the CFPB, pursuant to the Dodd-Frank Act, issued a final rule that establishes supervisory procedures for nonbanks whose activities it has reasonable cause to determine pose risks to consumers. CFPB Release. CFPB Final Rule.