The Consumer Finance Protection Bureau (CFPB) has proposed clarifications for certain provisions for borrowers in bankruptcy, as well as additional enhancements to loss mitigation requirements, as they relate to Dodd-Frank Act protections, according to the Bureau’s newest Semiannual Regulatory Agenda, published in the Federal Register this week.
Of course, if Republicans get their way, the Bureau’s plans could be moot.
According to the report, CFPB is reaching out to the mortgage industry and other agencies to “monitor and facilitate implementation of its rule to implement Dodd-Frank amendments” to the Home Mortgage Disclosure Act. The Bureau has already released a small entity compliance guide in connection with the rule, which was finalized last October, and expects certain elements of the rule take effect in January, a full year ahead of most new data reporting requirements.
CFPB also expects to release a “Notice of Proposed Rulemaking” this summer, designed to “make small clarifications and provide further regulatory guidance concerning its rule combining several federal mortgage disclosures that consumers receive in connection with applying for and closing on a mortgage loan under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA),” the report stated.
The project to integrate and streamline the disclosures was mandated under the Dodd-Frank Act and took effect in October 2015 and is the cornerstone of CFPB’s broader “Know Before You Owe” mortgage initiative.
The report also cited the Bureau’s success in adjusting the thresholds “defining small creditors and small creditors operating in rural and underserved areas for purposes of certain special rules concerning balloon loans, escrows, and other topics,” for which it issued its final rule last October.
In March, CFPB issued two rules to implement the Helping Expand Lending Practices in Rural Communities Act, which established a process for creditors to apply for rural designation and to help determine which small creditors operate in rural areas “in light of the congressional amendments to the underlying statutory language.”
Plans aside, Dodd-Frank itself remains squarely lined up in House GOP crosshairs and could be replaced if Republicans take the White House in 2017. Earlier this week, Rep. Jeb Hensarling (R-Tex.) met with Republican presidential frontrunner Donald Trump to discuss an alternative to what GOP lawmakers have vehemently criticized as an overly burdensome act in Dodd-Frank.
“Simply put, Dodd-Frank has failed,” Hensarling said in a speech to the Economic Club of New York Tuesday. “It’s time for a new legislative paradigm in banking and capital markets.”