Pub. 3 2013 Issue 4

16 www.azbankers.org J u ly 21 marked the third year since the passage of the Dodd- Frank Act (“DFA”). U.S. Treasury Secretary Jacob Lew was quoted as saying, “the ‘core elements’ of DFA will be enacted by year-end” of 2013. Fed Chairman Ben Bernake also stated that several rules will be released by the agencies in the coming months. The banking industry is not the only industry affected by the reforms required by the DFA; this legis- lation has an impact on every aspect of our financial systems. For those of us who are tracking the progress of implementation of DFA and the rule making requirements, there is a general consensus that more than half of the rules required by DFA are yet to be finalized. Bernake commented on the delays in the rulemaking and implemen- tation by pointing out that the provisions are complex and require a joint effort in rule writing, since five agencies must simultaneously “coordinate, cooperate and agree on language” for many of these rules. Although the regulatory agencies are making predictions about the finalization What to Expect from the CFPB for the rest of 2013 By Darlia Fogarty , Director of Compliance, Compliance Alliance of many rules required by DFA, none are specifically stating which rules they predict to be final by year-end. Banks should count on the fact that the regula- tions that govern the banking industry, more specifically in the area of consumer regulations, will likely be finalized, if not by the end of the year, then by mid-2014. What should banks do in this envi- ronment of continuing uncertainty while we all wait for issuance of final rules and clarification of previously issued rules? The best advice, simply put, is to ensure that all the bank’s strategic plans include a well thought out and docu- mented risk management process. That being said, what about the CFPB? The agency issued their mid-year agenda in July. The agenda includes: Rules that are in the “Pre-rule” Stage:  Regulation C (HMDA) – expand the scope of information relating to mortgage applications and loans that must be compiled, maintained and reported under HMDA.  Regulation P (Annual Privacy Notices) – the CFPB received com- ments suggesting the elimination of the requirement to provide annual notices when there has been no change in underlying policies.  Payday Loans and Deposit Advance Products – the CFPB issued a white- paper on findings from a review of these types of products, noting a number of consumer protection concerns, including consumers’ “sustained use” of these short-term, high-cost products.  Fair Debt Collection Practices (FDCPA) – government agencies receive more consumer complaints about debt collectors than any other industry, yet until the formation of the CFPB, no agency was given authority to implement regulations to govern debt collectors. Rules in the proposed stage:  Amendments to TILA and FIRREA Concerning Appraisals – this is an interagency process; the agencies are working to develop a supplemental proposal concerning possible addi- tional exemptions from the revisions to the appraisal rule for certain re- finance transactions, smaller-dollar loans and manufactured housing transactions.  Requirements for pre-paid cards (Regulation E) – in the comment re- view stage from the advance notice of rule-making to determine what rules may be appropriate.  Supervision of Non-bank financial industries.  Amendments to the 2013 Mortgage Rules – the CFPB is working on proposing further amendments and clarifications to the January 2013 mortgage rules. These issuances may include, further proposed