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June 2008
1)REGULATORS ISSUE PROPOSED RULES TO ENFORCE UNFAIR
AND DECEPTIVE PRACTICES
The FRB together with the OTS and the NCUA (the
Agencies) issued proposed rules on May 19, 2008 aimed at
curbing unfair and deceptive practices with respect to
credit cards and overdraft services. In particular, exercismg their
authority under Section 18(f)(1) of the Federal Trade Commission Act,
each Agency has issued identical proposed rules in order to best ensure
that all entities that offer credit card and overdraft products are treated
in a like manner. The three Agencies are proposing to reorganize
aspects of their respective credit practices rules. The rules proposed by
the FRB would, of course, apply to banks and their subsidiaries. In that
regard, the FRB proposes to amend three of its regulations, Regulation
AA, Regulation Z and Regulation DD. The OTS proposes to revise its
consumer credit practices rule at 12 CFR 535; the NCUA would amend
its rule at 12 CFR 706. While the Agencies may have approached the
revisions to their applicable rules differently in some respects,
according to the jointly released proposal, they do not intend to create
any substantive difference among their respective rules.
2)RISK-BASED PRICING RULES PROPOSED
The FRB and the Federal Trade Commission have
issued the long-awaited proposed rules that would
implement the risk-based pricing provisions of Section
311 of the Fair and Accurate Credit Transactions Act
(FACT Act). In general, Section 311 requires creditors to
provide consumers with a notice when the creditor offers
or provides credit to the consumer on terms less favorable
than those offered or provided to other consumers. As
required by the FACT Act, the rules would apply when a
creditor adjusts the cost of credit based on information in
a consumer's credit report.
3) FINAL HYBRID ARM ILLUSTRATIONS FOR
CONSUMER INFORMATION ISSUED
On May 22, 2008, federal financial regulatory
agencies released final illustrations aimed at promoting
consumer understanding of certain hybrid adjustable rate
mortgages (ARM). These illustrations were prompted by
the agencies' Statement on Subprime Mortgage Lending
("Subprime Statement"), which became effective on July
10, 2007. Under the Subprime Statement, the Agencies
recommended that consumers be given clear and balanced
information about certain hybrid ARM products,
including the benefits and risks associated with such
products.
- Regulators Issue Proposed Rules to
Enforce Unfair and Deceptive Practices
- Risk-based Pricing Rules Proposed 5
- Final Hybrid ARM Illustrations for
Consumer Information Issued
- Comment Period on RESPA Proposal
Extended
- OTS Updates Provisions of its
Examination Handbook
- FinCEN Report Raises Awareness of
Money Laundering in Residential Real
Estate Transactions
- FCRA Red Flag Rules and Non-U.S.
Residents
- Certain Reloadable Card Operations Not
Considered MSBs
- OCC Issues Regulation 0 Interpretive
Letter
- FDIC Proposes to Amend Material
Supervisory Appeals Process
- More.....
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