FSOC: Advanced Notice of Proposed
Rulemaking Regarding the Authority to Designate Financial Market Utilities as
Systemically Important
Published Proposal:
Not published
yet
Comments Due: Late
December, T.B.D.
Disposition: Pending
Summary of the Proposed Rule:
In the Dodd-Frank Act (DFA), the Financial Stability Oversight Council (FSOC)
is given authority to identify and designate important financial market
utilities (FMUs) as systemically important if the
disruption or failure of those entities would cause, or create an increased
risk of, significant credit or liquidity risk to financial institutions or
markets. If an FMU is determined to be systemically important it would be
subject to additional oversight by regulators.
The DFA defines FMUs as any person that manages or
operates a multilateral system for the purpose of transferring, clearing, or
settling payments, securities or other financial transactions. The DFA
explicitly excludes designated contract markets and national security exchanges
from the definition of FMU.
The advanced notice of proposed rulemaking (ANPR), released by the FSOC on
November 23, 2010, asks for comment on ten questions about the criteria and
analytical framework that should be applied by the FSOC when designating FMUs. The questions involve, among other things, measuring
and assessing the aggregate monetary value of transactions that financial
market utilities process, and also the aggregate exposure of such utilities
engaged in payment, clearing, or settlement activities to their
counterparties.
This ANPR does not address the designation criteria and framework for payment,
clearing, or settlement activities performed by financial institutions.
That will be considered in a separate rulemaking.
FinCEN: Proposal on New Reports of International Wire Transfers
Published Proposal: 75 Federal
Register 60377; September 30, 2010
Comments Due: December
29, 2010
Disposition: Pending
Summary of the Proposed Rule:
Section 6302 of Intelligence Reform and Terrorism Prevention Act of 2004
(IRTPA) directed the Secretary of the Treasury to study the feasibility of
"requiring such financial institutions as the Secretary determines to be
appropriate to report to Financial Crimes Enforcement Network (FinCEN) certain
cross-border electronic transmittals of funds (CBETF), if the Secretary
determines that reporting of such transmittals is reasonably necessary to
conduct the efforts…against money laundering and terrorist financing."
Over the last six years, FinCEN has extensively
analyzed the costs and benefits of such a reporting requirement and, concluding
the data would be useful for law enforcement, has now issued a proposal on CBETF. When final, the rule would require depository
institutions and money services businesses (MSBs) to
report information on wire transfers. Reports would be made by the last
institution handling certain electronic funds transfers before it leaves the
FRB: Interim Final Appraisal Rule
Published Proposal:
75 Federal
Register 66554; October 28, 2010
Read ABA's Staff Analysis,
November 1, 2010
Comments Due: December
27, 2010
Disposition: Pending
Summary of the Proposed Rule:
The Federal Reserve on October 18 issued an interim final rule under the
Dodd-Frank Act that is intended to ensure that real estate appraisers can use
their independent judgment in assigning home values. The rule also includes
several provisions designed to protect the integrity of the appraisal process
when a consumer's home is securing the loan. The rule prohibits coercion and similar actions designed to cause appraisers to base the appraised
value of properties on factors other than their independent judgment, and
prohibits creditors from extending credit based on appraisals if they
know beforehand about violations involving appraiser coercion or conflicts of
interest. Finally, the rule requires the payment of reasonable and customary
compensation to appraisers. The rule is effective April 1, 2011. Read the
Fed's October 18 press release.
FRB: TILA/Reg Z Proposal to
Update/Clarify Rules Regarding Right of Rescission, Disclosures for Loan
Modifications, Classification of HPML, Customer Refund of Fees, Reverse
Mortgage Issues, Etc.
Published Proposal: 75 Federal
Register 58539; September 24, 2010
Comments Due: December
23, 2010
Disposition: Pending
Read ABA's Staff Analysis.
Summary of the Proposed Rule:
The Board proposes to amend Regulation Z, which implements the Truth in Lending
Act (TILA), and the staff commentary to the regulation, as part of a
comprehensive review of TILA's rules for home-secured
credit. This proposal would revise the rules for the consumer's right to rescind
certain open-end and closed-end loan secured by the consumer's principal
dwelling. In addition, the proposal contains revisions to the rules for
determining when a modification of an existing closed-end mortgage loan secured
by real property or a dwelling is a new transaction requiring new disclosures.
The proposal would amend the rules for determining whether a closed-end loan
secured by the consumer's principal dwelling is a ''higher-priced'' mortgage
loan subject to the special protections in § 226.35. The proposal would provide
consumers with a right to a refund of fees imposed during the three business
days following the consumer's receipt of early disclosures for closed-end loans
secured by real property or a dwelling.
The proposal also would amend the disclosure rules for open- and closed end reverse mortgages. In addition, the proposal would prohibit certain unfair acts or practices for reverse mortgages. A creditor would be prohibited from conditioning a reverse mortgage on the consumer's purchase of another financial or insurance product such as an annuity, and a creditor could not extend a reverse mortgage unless the consumer has obtained counseling. The proposal also would amend the rules for reverse mortgage advertising.