• Bureau of Consumer Financial Protection Issues Interim Final Rules Transferring Certain Regulations from Other Federal Regulators, as Required by Dodd-Frank
  • January 6, 2012 | Author: Edmund "Ed" D. Harllee
  • Law Firm: Williams Mullen - Tysons Corner Office
  • On Wednesday, December 21, 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 21, 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 21, 2011 concern the following current regulations:

    • Equal Credit Opportunity Act.  (Formerly Regulation B of the Federal Reserve Board (the “Board”), found at 12 CFR Part 202).  This regulation generally prohibits creditors from discriminating in any aspect of a credit transaction on the basis of race, gender, color, religion, national origin, marital status, or age.  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 B (12 CFR Part 1002).
    • Land Sales Registration Program.  (Formerly rules of the Department of Housing and Urban Development (“HUD”), found at 24 CFR Parts 1710, 1715 and 1720).  This regulation generally requires certain land developers to register their development plans with HUD and to disclose these plans to prospective purchasers.  The Act made several substantive changes to this statute and transferred rulemaking authority to the Bureau.  HUD’s regulations are being republished as the Bureau’s Regulation J (12 CFR Part 1010), with respect to land registration requirements; Regulation K (12 CFR Part 1011), with respect to the rights of purchasers and the regulation of sales practices and standards; and Regulation L (12 CFR Part 1012), with respect to certain procedural requirements.
    • Consumer Financial Privacy.  (Formerly implemented by regulations of the Board, the Comptroller of the Currency, the National Credit Union Administration (the “NCUA”), the Federal Deposit Insurance Corporation, the Federal Trade Commission, the Office of Thrift Supervision, the Securities Exchange Commission and the Commodity Futures Trading Commission, depending upon the type of regulated entity).  These regulations implement certain requirements of the Gramm-Leach-Bliley Act (the “GLB Act”).  Portions of the GLB Act generally limit instances in which a financial institution may disclose non-public personal information about a consumer, and further require such institutions to provide consumers with privacy notices.  Rulemaking authority for this statute has now been transferred to the Bureau and is being republished as the Bureau’s Regulation P (12 CFR Part 1016).
    • Fair Credit Reporting Act.  (Formerly implemented by regulations of the Board, the Comptroller of the Currency, the NCUA, the Federal Deposit Insurance Corporation, the Federal Trade Commission and the Office of Thrift Supervision, depending upon the type of regulated entity).  These regulations implement certain requirements of the Fair Credit Reporting Act (the “FCRA”).  The FCRA generally imposes requirements on the collection, communication and use of consumer credit information.  The Act made several substantive changes to the FCRA and transferred rulemaking authority to the Bureau.  Rulemaking authority for this statute has now been transferred to the Bureau and is being republished as the Bureau’s Regulation V (12 CFR Part 1022).
    • Truth in Savings.  (Formerly the Board’s Regulation DD, found at 12 CFR Part 230, and regulations of the NCUA, found at 12 CFR Part 707).  This regulation generally requires the uniform and accurate disclosure of interest rates, fees, and other terms of consumer deposit accounts.  Rulemaking authority for this law has now been transferred to the Bureau and is being republished as the Bureau’s Regulation DD (12 CFR Part 1030).

    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-2011-0019 or RIN 3170-AA06 (for Regulation B); Docket No. CFPB-2011-0025 or RIN 3170-AA06 (for Regulations J, K and L); Docket No. CFPB-2011-0028 or RIN 3170-AA06 (for Regulation P); Docket No. CFPB-2011-0029 or RIN 3170-AA06 (for Regulation V); and Docket No. CFPB-2011-0032 or RIN 3170-AA06 (for Regulation DD).