Washington Report 360 | March 29, 2019
Washington Report 360 | March 29, 2019
Insight

Washington Report 360 | March 29, 2019

Focus on federal housing reform; Info available on models used in Fed Reserve stress tests; Stay in effect on Payday Lending Rule.

Key highlights

  • Increasing focus on federal housing finance reform, consumer reporting agencies, and the Fair Housing Act.
  • Additional information now available about the models used in the Federal Reserve’s 2019 supervisory stress tests.
  • Federal ruling that stay on the CFPB’s Payday Lending Rule remains in effect.

Financial services legislative and regulatory news

Focus on federal housing finance reform:

  • Testimony before the Senate Banking Committee based on the Committee Chair’s outline of reforms.
  • Administration memorandum directing Treasury and HUD to propose the end of the Fannie Mae and Freddie Mac conservatorship.

Focus on consumer reporting agencies (CRAs):

  • Testimony before the House Subcommittee on Economic and Consumer Policy on improving data security at CRAs.
  • GAO report including recommendations to provide civil penalty authority to the FTC for GLBA privacy and safeguarding provisions, and to require CFPB registration for large CRAs.
  • Announced partnership between a CRA and a credit scoring company to sell consumer data to banks. (WSJ)

The House Financial Services Committee passed five bills that will move to the full House for consideration.

Recently announced actions by the OCC and HUD highlight an increasing regulatory focus on the Fair Housing Act.

The Federal Reserve released a document providing detailed information about the models used in its 2019 supervisory stress tests, including projected loss rates.

A federal judge has ruled that a stay on the August 19, 2019 compliance date for the CFPB’s Payday Lending Rule remains in effect. (American Banker)

The CFTC:

  • Released a final rule amending the de minimis exception for swaps entered into by insured depository institutions in connection with loans to customers.
  • Approved amendments to certain of its rules governing the segregation of assets and an SRO’s financial surveillance programs.
  • Approved an interim final rule amending the CFTC Margin Rule for the U.K.’s possible withdrawal from the E.U. without a negotiated agreement.

Financial services policy news

The FTC signed a memorandum of understanding with the U.K.’s Competition and Markets Authority to strengthen enforcement cooperation on consumer protection matters.

The CFTC:

  • Determined Australia’s margin rules for uncleared swaps are comparable to CFTC rules, and approved amended comparability determinations for Japan’s margin rules.
  • Released a paper analyzing the impact of automated orders on futures trading.

The OCC released 2018 fourth quarter reports for:

The FSB Chair outlined agenda issues for 2019, including fintech participation, nonbank financial intermediation (i.e., “shadow banking”) developments, and “too-big-to-fail” reforms.

California is considering creating a state-level CFPB. (American Banker)