CFPB Launches its Non-Bank Supervision Program
On Thursday, January 5, 2012, the Consumer Financial Protection Bureau (the "CFPB") announced the launch of its non-bank supervision program under Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). The CFPB already began its supervision of banks, thrifts, and credit unions with assets of over $10 billion on July 21, 2011.
The CFPB’s supervision of non-banks – companies that offer or provide consumer financial products or services but do not have a bank, thrift, or credit union charter – will roll out in phases. Effective immediately, the CFPB has authority to oversee non-bank businesses, regardless of size, in certain markets: mortgage companies (originators, brokers, and servicers, and loan modification or foreclosure relief services); payday lenders; and private education lenders. For all other markets – such as debt collection, consumer reporting, auto financing, and money services businesses – the CFPB may supervise “larger participants” after finalizing rules defining “larger participant.” The CFPB published a proposed "larger participant" rule on June 29, 2011.
The Dodd-Frank Act also grants the CFPB authority to supervise any non-bank that the CFPB determines is engaging or has engaged in conduct that poses risks to consumers with regard to consumer financial products or services. Future CFPB rules will set out the procedural guidelines for implementation of this provision.
CFTC Adopts New Rules on Swap Data Recordkeeping and Reporting Requirements
On Friday, January 13, 2012, the Commodity Futures Trading Commission adopted rules to implement the sections of the Commodity Exchange Act relating to swap data recordkeeping and reporting added by Title VII of the Dodd-Frank Act. The rules being adopted apply to swap data recordkeeping and reporting requirements for swap data repositories, derivatives clearing organizations, designated contract markets, swap execution facilities, swap dealers, major swap participants, and swap counterparties who are neither swap dealers nor major swap participants.
© 2012 Perkins Coie LLP