On August 20, 2019, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation approved significant amendments to the Volcker Rule regulations. These amendments address to some extent industry concerns about the complexity of the existing regulations and
MoFo ReEnforcement: The Enforcement Blog
MoFo ReEnforcement: The Enforcement Blog, published by Morrison & Foerster LLP, focuses on regulatory enforcement and compliance issues affecting financial institutions, fintech companies, and corporate entities. The blog covers topics such as anti-money laundering regulations, beneficial ownership reporting, consumer financial protection, credit market oversight, small business lending data collection, and due diligence practices for fintech partnerships. It also addresses developments in federal banking regulations, national security policy related to technology, and legislative changes impacting enforcement standards. The blog provides updates on rulemakings, regulatory guidance, and enforcement trends relevant to practitioners and stakeholders in financial services and corporate compliance.
Latest from MoFo ReEnforcement: The Enforcement Blog - Page 7
FHFA Publishes Final Rule on Validation and Approval of Credit Score Models
On August 16, the Federal Housing Finance Agency issued a final rule on validation and approval of third-party credit score models that Fannie Mae and Freddie Mac use in deciding whether to purchase residential mortgage loans. The FHFA is the…
On Again, Off Again: Fannie and Freddie Drop the Applicant’s Language Preference Question from the Revised Uniform Residential Loan Application Form
At the direction of the Federal Housing Finance Agency (FHFA), government sponsored enterprises Fannie Mae and Freddie Mac (the GSEs) announced in June 2019 that the optional use period for the redesigned Uniform Residential Loan Application (URLA) and automated underwriting…
Federal Reserve to Create Faster Payments System
On August 5, the Board of Governors of the Federal Reserve System issued a notice and request for comment on its determination that the Federal Reserve Banks should develop a new interbank faster payments system. The Reserve Banks’ new system…
CFPB ANPR on Qualified Mortgage Rule
On July 25, 2019, the CFPB issued an Advance Notice of Proposed Rulemaking on the definition of a “qualified mortgage” under its ability-to-repay/qualified mortgage rule. The ANPR states that the Bureau does not intend to extend the temporary qualified mortgage…
Another Joint Statement from the Federal Anti-money Laundering Working Group: Improving Transparency of Risk-Focused BSA/AML Supervision
On July 22, 2019, the five federal agencies tasked with the supervision, examination, and enforcement of Bank Secrecy Act and anti-money laundering requirements for banks issued a joint statement clarifying their risk-based approach to BSA/AML examinations. Our alert discusses the…
Agencies Issue Final Rule Conforming Volcker Rule Regulations to 2018 Regulatory Relief Act
On July 22, 2019, a final rule conforming the Volcker Rule regulations to Sections 203 and 204 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (“Regulatory Relief Act”) was published in the Federal Register. The final rule, and the…
Secured Overnight Financing Rate and the Future of the Mortgage Market
On July 11, Fannie Mae and Freddie Mac (the GSEs) announced their plans to develop new adjustable rate mortgage products that would rely on the Secured Overnight Financing Rate (SOFR) instead of LIBOR. Given the GSEs’ dominance in the mortgage market,…
Blair v. Rent-A-Center, Inc.: California’s McGill Rule Not Preempted by the FAA
The Ninth Circuit affirmed the district court’s denial of Rent-A-Center, Inc.’s motion to compel arbitration in a putative class action challenging the company’s structuring of its rent-to-own pricing. We discuss the court’s recent decision and how its preemption analysis means…
Federal Banking Agencies Release New NPR Expanding HVCRE Proposed Rule
By Henry Fields & Mark Sobin
The federal banking agencies released a notice of proposed rulemaking on July 12, 2019 which expands upon a previous notice of proposed rulemaking regarding the capital treatment of acquisition, development and construction loans. The new proposal addresses the capital treatment…