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Frank Announces House Offer on Consumer Protection, Risk Retention, Mortgage Reform and Anti-Predatory Lending

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Washington, DC, June 21, 2010 | comments

Chairman Frank, on behalf of the House conferees, released the House offer on the titles listed below.  The issues will be subject to debate when the House-Senate Conference Committee convenes in room SD-106, Dirksen Senate Office Building, at 12:00 p.m. tomorrow.

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Chairman Frank, on behalf of the House conferees, released the House offer on the titles listed below.  The issues will be subject to debate when the House-Senate Conference Committee convenes in room SD-106, Dirksen Senate Office Building, at 12:00 p.m. tomorrow.

Title 10 of base text: Consumer Financial Protection

The House proposes the following amendments to the Base text:  

  • Recede to Senate on provisions relating to the structure of the Consumer Financial Protection Bureau (Bureau).  

  • Amend Senate provision funding the Bureau with funds from the Federal Reserve System. Add House provision providing for authorization of appropriations of the Bureau for 2010-2015 (House Bill § 4111(c), page 869, line 23 through page 870, line 11).  

  • Add House provision directing Consumer Advisory Board to include experts in civil rights (House Bill § 4107, page 856, line 3).
    Add new provision to subject pay day lenders, money remitters, check cashers and private student loan providers to supervision by the Bureau (Senate Bill § 1024, page 1425, line 7).  

  • Add House provisions authorizing the Bureau to participate in examinations and take enforcement actions against insured depository institutions and credit unions with assets of $10 billion or less (House Bill § 4203, page 898, line 25 through page 901, line 19).  

  • Strike Senate provision requiring additional Regulatory Flexibility Act analyses prior to proposed rulemakings of the Bureau (Senate Bill § 1099F, page 1721, line 3 through 1722, line 25).  

  • Add House provision streamlining the authorities of the Federal Trade Commission in issuing regulations, administering and enforcing the Federal Trade Commission Act (House Bill § 4901, page 1197, line 19 through page 1200, line 24)  

  • Add provisions excluding auto dealers (Senate Amendment no. 3789) and pawnbrokers (House Bill § 4205(o), page 931, line 7 through page 932, line 21). Amend Senate provisions excluding attorneys and employee benefit and compensation plans (Senate Bill § 1027(e), page 1459, line 22 through page 1460, line 10; § 1027(g), page 1461, line 5 through page 1463, line 25).  

  • Add House provisions setting the standard the Comptroller of the Currency or a court must use in preempting state consumer laws and requiring the Comptroller or a court to find that a substantive federal consumer protection standard is in place before preempting a state law (House Bill § 4404, page 1002, lines 7-19 and page 1005, lines 6-15). 

  • Amend Senate provision requiring Federal Reserve Board regulations relating to interchange transaction fees for electronic debit transactions and imposing limits on payment card network restrictions (Senate Bill § 1076, page 1631, line 14 through page 1637, line 19).  

  • Amend Senate provision requiring disclosures and regulation of remittance transfers (Senate Bill § 1074, page 1610, line 1).
    Add House provision with revisions directing Bureau to issue regulations on reverse mortgages.  

  • Amend Senate provisions relating to Energy & Commerce Committee and Judiciary Committee jurisdictions. 

  • Add new provision relating to compensation, benefits and protections of Bureau employees, including employees transferred from existing agencies.  

  • Add House provisions:

    • Requiring private student loan providers to obtain certifications from institutions of higher lending (House Bill § 4818(a)(1), page 1190, line 13 through page 1194, line 3).  

    • Creating an ombudsperson at Bureau (House Bill § 4106(a)(4), page 836, line 12 through page 838, line 2);  

    • Requiring the Federal Reserve Board to retain a Consumer Advisory Council (House Bill § 4601(a)(1)(C), page 1062, line 24 through page 1064, line 11);  

    • Directing Bureau to regulate exchange facilitators (House Bill § 4314, page 986, line 1 through page 987, line 22)  

    • Directing Bureau to regulate person-to-person lending (House Bill § 4315, page 987, line 23 through page 990, line 23).

Title 14 of base text: Mortgage Reform and Anti-Predatory Lending

The House proposes the following amendments to the Base text:

  • Add House provision providing emergency mortgage relief for unemployed homeowners (House Bill § 10001, page 1675, line 15 through page 1680, line 4).  

  • Add House provision for assistance to the neighborhood stabilization program (House Bill § 10002, page 1680, line 5 through page 1683, line 18).  

  • Add House provision providing for legal assistance for foreclosure-related issues (House Bill § 9115, page 1536, line 21 through page 1540, line 2).  

  • Amend Senate provision to provide the Department of Housing and Urban Development, the Department of Veterans Affairs, the Department of Agriculture, and the Rural Housing Service to define “Qualified Mortgages” for the loans they insure, guarantee or administer (Senate Bill § 1413, page 1812, line 7 through page 1813, line 9).  

  • Amend Senate provision to revise the definition of “Mortgage Originator” relating to seller financing (Senate Bill § 1401, page 1782, line 20 through page 1783, line 11).  

  • Add House provision to sunset the Home Valuation Code of Conduct and improve implementation of appraisal independence standards (House Bill § 4312, page 983, line 15 through page 985, line 15). 

Subtitle D of title 9 of base text: Risk retention

The House proposes the following amendments to the Base text:

  • Strike Senate provision that directs the Federal agencies responsible for implementing the risk retention requirements to exempt “qualified mortgages” from regulations requiring retention of credit risk (Senate Bill § 941, page 1206, line 22 through page 1207, line 2).  

  • Add provision to require the consideration of collateralized instruments in promulgating credit risk retention regulations. (Senate Bill § 941, page 1208, line 10).  

  • Strike Senate provision relating to risk retention requirements for commercial mortgage backed securities (Senate Bill § 941, page 1208, line 11 through page 1209, line 5)  

  • Amend Senate provision to exempt the Department of Housing and Urban Development, the Rural Housing Service and the Department of Veterans Affairs for the loans they insure, guarantee or administer from regulations requiring retention of credit risk (Senate Bill § 941, page 1213, lines 7 and 13).  

  • Add provisions including the Department of Housing and Urban Development in rulemakings applying risk retention requirements to residential mortgage loans and directing the Chairperson of the Financial Stability Oversight Council to coordinate joint credit risk retention rulemakings.  

  • Add House provision requiring study on the macroeconomic effects of risk retention requirements (House Bill § 1506, page 323, line 12 through page 324, line 21). 

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