CFPB Releases Updated Rulemaking Agenda - January 8, 2013
By: Syndie Eardly, Dodd Frank Update
The Consumer Financial Protection Bureau (CFPB) released its semiannual regulatory agenda, announcing its plans to release the final mortgage disclosure rule, as well as confirming release dates for five other final rules. The agency also included a description of at least one long-term action concerning Regulation B – Business Lending Data.
In the Jan. 8 release, the CFPB set September 2013 as the target date for the release of the Truth in Lending Act (TILA)/ Real Estate Settlement Procedures Act (RESPA) Mortgage Disclosure Integration. The comment period for the rules closed on Nov. 6, 2012. The September target date gives the agency a full 10 months to review and integrate the feedback they received.
The CFPB also noted that it issued the final rule to implement the compliance dates for the Title XIV disclosures in a separate rulemaking.
In addition to the integrated disclosure requirements in Title X of the Dodd-Frank Act, various provisions of Title XIV of the Dodd-Frank Act amend TILA, RESPA and other consumer financial laws to impose new disclosure requirements for mortgage transactions. These provisions generally require disclosure of certain information when a consumer applies for a mortgage loan or shortly before consummation of the loan, around the same time that consumers will receive the TILA-RESPA integrated disclosures required by sections 1032(f), 1098, and 1100A of the Dodd-Frank Act, and after consummation of the loan if certain events occur. Dodd-Frank Act Title XIV provisions generally take effect within 18 months after the designated transfer date which would have been Jan. 21, 2013. However, the implementation date has been delayed to coincide with the release of the mortgage disclosure integration rule.
Other rules outlined in the agenda include:
Loan Originator Compensation (Regulation Z) 3170–AA13
The comment period for the proposed rule ended on Oct. 16, 2012, except that the comment period for that portion of the proposal relating to proposed information collections under the Paperwork Reduction Act closed on Nov. 6, 2012. The CFPB is working to issue a final rule, which is due out this month, according to the agenda.
The CFPB noted it will issue at a later time proposed regulations on anti-steering provisions that TILA section 129B(c)(3) requires the CFPB to adopt.
Mortgage Servicing (Regulation X; Regulation Z) 3170–AA14
The comment period for the proposed mortgage servicing rules ended on Oct. 9, 2012, except that the comment period for that portion of the proposal relating to proposed information collections under the Paperwork Reduction Act closed on Nov. 16, 2012. The CFPB is planning to release the final rule this month.
The CFPB said it is also participating in an interagency process among federal financial services regulators to consider broader issues regarding national servicing standards.
Requirements for Escrow Accounts (Regulation Z) 3170–AA16
The CFPB is slated to release the rule governing requirements for escrow accounts later this month. In a separate rulemaking (see RIN 3170-AA32), the CFPB issued a final rule postponing the implementation of the disclosures included in the board's proposal.
TILA Ability to Repay (Regulation Z) 3170–AA17
The new ability-to-repay rule is also due out in January. On June 5, 2012, the CFPB issued a notice to reopen the comment period until July 9, 2012, to seek comment on certain new data and information submitted during or obtained after the close of the original comment period.
The Expedited Funds Availability Act (Regulation CC) 3170–AA31
The Expedited Funds Availability Act (EFA Act), implemented by Regulation CC, governs availability of funds after a check deposit and check collection and return processes. The CFPB is working with the Federal Reserve Board to jointly issue a final rule, which they anticipate will be released in August 2013.
Section 1086 of the Dodd-Frank Act amended the EFA Act to provide the CFPB with joint rulemaking authority with the Federal Reserve over certain consumer-related EFA Act provisions. The Fed proposed amendments to Regulation CC in March 2011, to facilitate the banking industry's ongoing transition to fully-electronic interbank check collection and return. The Fed’s proposal includes some provisions that are subject to the CFPB's joint rulemaking authority, including the period for funds availability and revising model form disclosures.
Long term priorities
On the agency’s long-term priority list is Regulation B – Business Lending Data.
Section 1071 of the Dodd- Act amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to report information concerning credit applications made by women- or minority-owned businesses and small businesses. The amendments made by the Dodd-Frank Act require that certain data be collected and maintained under ECOA, including the number and date the application was received; the type and purpose of loan applied for; the amount of credit applied for and approved; the type of action taken with regard to each application and the date of such action; the census tract of the principal place of business; the gross annual revenue; and the race, sex, and ethnicity of the principal owners of the business.
The CFPB expects to begin developing proposed regulations concerning the data to be collected and appropriate procedures, information safeguards, and privacy protections for information-gathering under this section.
View the CFPB’s regulatory agenda