• Bureau of Consumer Financial Protection Issues Interim Final Rules on 12/19/11 Transferring Certain Regulations from Other Federal Regulators, as Required by Dodd-Frank
  • January 4, 2012 | Author: Edmund "Ed" D. Harllee
  • Law Firm: Williams Mullen - Tysons Corner Office
  • On Monday, December 19, 2011, the new Bureau of Consumer Financial Protection (the “Bureau”) issued interim final rules and a request for public comment in connection with the transfer of several existing regulations from various Federal regulators to the Bureau.  The interim final rules are effective December 30, 2011.  Comments must be received by February 17, 2012.

    Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) transferred rulemaking authority for several consumer protection laws to the Bureau.  The Bureau is currently in the process of republishing these transferred regulations to implement the transfer and to make such substantive changes to the existing regulations as may be required by the Act.

    The notices published in the Federal Register of December 19, 2011 concern the following current regulations:

    • Home Mortgage Disclosure Act.  (Formerly Regulation C of the Federal Reserve Board (the “Board”), found at 12 CFR Part 203).  This regulation requires most mortgage lenders located in metropolitan areas to collect data regarding their mortgage lending activity.  The Act made several substantive changes to this statute and transferred rulemaking authority to the Bureau. The Board’s regulation is being republished as the Bureau’s Regulation C (12 CFR Part 1003). 
    • S.A.F.E. Mortgage Licensing Act.  (Formerly implemented by regulations of the Board, the Comptroller of the Currency, the National Credit Union Administration, the Federal Deposit Insurance Corporation, the Department of Housing and Urban Development and the Farm Credit Administration, depending upon the type of regulated entity).  These regulations implement the requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the “S.A.F.E. Act”).  The S.A.F.E. Act generally requires the licensing and registration of mortgage loan originators with the Nationwide Mortgage Licensing System and Registry.  Rulemaking authority for this statute has now been transferred to the Bureau and is being republished as the Bureau’s Regulation G (12 CFR Part 1007), with respect to requirements for Federal registration of mortgage loan originators, and Regulation H (12 CFR Part 1008), with respect to Federal regulation of state compliance with the S.A.F.E. Act. 
    • Consumer Leasing.  (Formerly the Board’s Regulation M, found at 12 CFR Part 213).  This regulation generally requires accurate and complete disclosure of the terms of personal property leases for personal, family or household purposes.  Rulemaking authority for this law has now been transferred to the Bureau and is being republished as the Bureau’s Regulation M (12 CFR Part 1013).

    None of the above interim rules imposes any additional substantive regulatory requirements on persons subject to the existing rules of any of the above regulators.

    Those engaged in the above commercial practices who are regulated by the any of the above regulators (and now the Bureau) and other interested persons may comment, and should do so if they think that these interim rules, or the specifics of the implementation of these interim rules as published in the notice, will have an adverse effect on their businesses.  According to the notices of proposed rulemaking, there are various methods for the submission of comments, including e-mail, hand delivery and US Mail.  Please see the appropriate notice in the Federal Register for this information.  Those commenting should reference Docket No. CFPB-2011-0020 or RIN 3170-AA06 (for Regulation C); Docket No. CFPB-2011-0023 or RIN 3170-AA06 (for Regulations G and H); and Docket No. CFPB-2011-0026 or RIN 3170-AA06 (for Regulation M).