12.12.2014
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Updates
The Federal Reserve Board Issues Financial Sector Concentration Limit Rule
On Wednesday, November 5, 2014, the Federal Reserve Board (the "Board") issued a final rule that establishes a financial sector concentration limit pursuant to Section 622 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). The concentration limit established by the final rule generally prohibits a financial company from merging with, consolidating with or acquiring another company if the resulting company’s liabilities would exceed ten percent of the aggregate liabilities of all financial companies. In addition, the final rule establishes reporting requirements for financial companies that do not otherwise report consolidated financial information to the Board or other appropriate Federal banking agency to implement Section 14 of the Bank Holding Company Act.
Consumer Financial Protection Bureau Proposes Amendments to Mortgage Servicing Rules
On Thursday, November 20, 2014, the Consumer Financial Protection Bureau (the "CFPB") proposed amendments to certain mortgage servicing rules issued in 2013 pursuant to Title XIV of the Dodd-Frank Act. These proposed amendments focus on amending provisions regarding force-placed insurance notices, policies and procedures, early intervention, and loss mitigation requirements under the servicing provisions of Regulation X; and periodic statement requirements under the servicing provisions of Regulation Z. The proposed amendments also address compliance regarding certain servicing requirements when a consumer is a potential or confirmed successor in interest, is in bankruptcy, or sends a cease communication request under the Fair Debt Collection Practices Act.
The Board Proposes Risk-Based Capital Surcharge Rule
On Tuesday, December 9, 2014, the Board proposed a rule to establish risk-based capital surcharges for the largest, most interconnected U.S.-based bank holding companies pursuant to Section 165 of the Dodd-Frank Act. The proposed rule is based upon the international standard adopted by the Basel Committee on Banking Supervision, and would require a U.S. top-tier bank holding company with $50 billion or more in total consolidated assets to calculate a measure of its systemic importance and would identify a subset of those companies as global systemically important bank holding companies based on that measure. A global systemically important bank holding company would be subject to a risk-based capital surcharge that would increase its capital conservation buffer under the Board’s regulatory capital rule.
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