On September 20, the Treasury Department announced that July 21, 2011 would serve as the date for transfer of functions (“designated transfer date”) to the Bureau of Consumer Finance Protection (CFPB) for authorities and powers outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173; P.L. 111-517).
The determination of a designated transfer date, which will mark the one-year anniversary of the bill’s enactment, establishes a basic timeline for when various rules and regulations must be developed by the CFPB.
On July 11, 2011, there will be a general transfer of authority to the CFPB of consumer financial protection functions from the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Office of Thrift Supervision (OTS), and the Department of Housing and Urban Development (HUD).
Of particular note, final regulations required under the Mortgage Reform and Anti-Predatory Lending Act (Title XIV of the bill), must be issued within 18 months of the designated transfer date and must take effect no later than 12 months after the final regulations are issued.
Included in Title XIV, are provisions regarding new appraisal requirements for higher-risk mortgages and residential mortgage loan origination (SAFE Act modifications) activities.
For more information, contact MHI Vice President of Government Affairs Jason Boehlert at 703-558-0660 or jboehlert@mfghome.org.
