Source: http://quitamteam.com/legislation/dodd-frank-act
Timestamp: 2013-06-19 10:03:29
Document Index: 269153608

Matched Legal Cases: ['art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7', 'art 8']

You are here: Legislation Dodd-Frank Act
Below is the summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act. To read the full text of the Dodd-Frank Wall Street, visit the Library of Congress website. Title I - Financial Stability Improvement Act
Financial Stability Improvement Act of 2009 - (Sec. 1000A) Directs the Comptroller General to audit and report to Congress within two years after enactment of this Act on all actions taken by the Board of Governors of the Federal Reserve System (Federal Reserve Board) and the federal reserve banks during the current economic crisis.
Subtitle A - The Financial Services Oversight Council
Section 1006 -
Requires the Council to report semiannually to designated congressional committees regarding: (1) significant financial and regulatory developments and their impact upon the stability of the financial system; and (2) strategies developed in response to potential threats to the stability of the U.S. financial system. Directs the Council to study the effects that regulations and standards of the Consumer Financial Protection Agency (CFPA), established under this Act, will have upon covered persons, including nondepository institutions. Requires the study to include an assessment of the appropriateness of using "APR" (Annual Percentage Rate) as a true measure of the value of all nonbank products.
Section 1008 -
Subtitle B - Prudential Regulation of Companies and Activities for Financial Stability Purposes
Section 1100 -
Authorizes the Council and the Federal Reserve Board to receive, and to request the production of, any data or information from Council members in order to: (1) monitor the financial services marketplace to identify potential threats to the stability of the U.S. Financial system; (2) identify global trends and developments that could pose systemic risks to the stability of the U.S. economy or other economies; or (3) ascertain a primary financial regulatory agency's implementation of recommended prudential standards.
Section 1102 -
Section 1103 -
Directs the Council to subject a financial activity or practice to stricter prudential standards for financial stability purposes upon making specified determinations that: (1) material financial distress at the company could pose a threat to financial stability or the economy; or (2) the nature, scope, size, scale, concentration, and interconnectedness, or mix of the company's activities could pose a threat to financial stability or to the economy. Requires the Federal Reserve Board to report periodically to the Council whether a company subjected to stricter prudential standards should continue under such standards. Subjects the stricter prudential standards, upon company appeal, to judicial review. Directs the Board to require each financial holding company subject to stricter standards to maintain a debt to equity ratio of no more than 15 to 1 (leverage limitation).
Section 1104 -
Directs the Federal Reserve Board, as agent of the Council, to impose specified stricter prudential standards on a financial holding company on which the Council has already imposed stricter prudential standards. Requires the computation of capital requirements for any financial holding company subject to stricter standards to take into account specified off balance sheet activities of the company. Prescribes circumstances for discretionary imposition of stricter prudential standards on functionally regulated subsidiaries or subsidiary depository institutions of a financial holding company subject to stricter standards. Requires the Board to prescribe standards that limit to 25% (or a lower percentage) of capital stock and surplus (concentration limits) of the financial holding company subject to stricter standards the risks posed by the credit exposure of such a company to any unaffiliated company. Exempts the federal home loan banks from such limitations. Authorizes the Board to limit the amount of short-term debt that may be accumulated by any financial holding company subject to stricter standards, including off-balance sheet exposures. Requires the Board to: (1) take specified prompt corrective action to resolve the problems of financial holding companies subject to stricter standards; and (2) specify for each relevant capital measure the levels at which a financial holding company subject to stricter standards is well capitalized, undercapitalized, and significantly undercapitalized. Restricts the asset growth of an undercapitalized financial holding company that is subject to stricter standards. Requires such a company to obtain the Federal Reserve Board's written approval prior to: (1) paying a bonus to any senior executive officer; and (2) providing compensation to any senior executive officer at a rate exceeding that officer's average rate of compensation (excluding bonuses, stock options, and profit-sharing) during the 12 calendar months preceding the calendar month in which the financial holding company subject to stricter standards became undercapitalized. Grants the Federal Reserve Board enforcement authority over a foreign financial holding company subject to stricter standards if the Board believes that its condition, practice, or activity is not in compliance with this Act. Requires a financial holding company subject to stricter standards to submit a rapid resolution plan to address the results of stress tests that indicate significant or critical undercapitalization. Directs the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board to issue jointly regulations requiring financial holding companies subject to stricter standards to develop plans for the rapid and orderly resolution of the company. Prescribes standards for such resolution plans.
Section 1106 -
Section 1107 -
Section 1108 -
Section 1109 -
Section 1110 -
Section 1111 -
Section 1112 -
Amends the Federal Deposit Insurance Act (FDIA) to set forth examination and enforcement authority over a financial holding company subject to stricter standards whenever the FDIC Board of Directors determines a special examination is necessary to determine the company's condition for resolution purposes.
Section 1113 -
Section 1114 -
Section 1115 -
Section 1116 -
Section 1117 -
Authorizes the Federal Reserve Board to prohibit a financial holding company subject to stricter standards from trading certain financial instruments with the company's own money and for its own account (proprietary trading) if the Board determines that such trading threatens either: (1) the safety and soundness of the company; or (2) U.S. Financial stability. Allows the Board to make certain exceptions for proprietary trading ancillary to other company operations if it does not pose a threat to company safety and soundness or to U.S. Financial stability.
Subtitle C - Improvements to Supervision and Regulation of Federal Depository Institutions
Section 1202 -
Amends the Home Owners' Loan Act (HOLA) to establish a
Division of Thrift Supervision within the Office of the Comptroller of the Currency. (Sec. 1203) Amends the Revised Statutes of the United States to direct the Secretary to appoint up to five Deputy Comptrollers of the Currency, including a Senior Deputy Comptroller for National Banks and a Senior Deputy Comptroller for Thrift Supervision. (Sec. 1204) Transfers all functions of the OTS Director to the Office of the Comptroller of the Currency and the new Division of Thrift Supervision, except those relating to the supervision and regulation of - (1) state savings associations, which are transferred to the FDIC; and (2) savings and loan holding companies, which are transferred to the Federal Reserve Board. (Sec. 1207) Abolishes the Office of Thrift Supervision (OTS). (Sec. 1212) Transfers all OTS employees to either the Comptroller of the Currency or the FDIC for employment. (Sec. 1219) Amends the Bank Holding Company Act of 1956 (BHCA) to prescribe procedural requirements for the declaration of dividends by subsidiary savings associations of certain mutual holding companies. Allows a mutual thrift holding company to waive the right to receive such dividends in specified circumstances. (Sec. 1220) Directs the Secretary and the FDIC to submit to Congress and their respective Inspectors General a joint plan for implementing this subtitle. (Sec. 1222) Amends the FDIA, the Alternative Mortgage Transaction Parity Act of 1982, the Bank Holding Company Act of 1956, the Bank Protection Act of 1968, the Bank Service Company Act, the Community Reinvestment Act of 1977, the Depository Institution Management Interlocks Act, the Emergency Homeowners' Relief Act, the Equal Credit Opportunity Act, the Federal Credit Union Act, the Federal Financial Institutions Examination Council Act of 1978, the Federal Home Loan Bank Act, the Federal Reserve Act (FRA), the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the Housing Act of 1948, the Housing and Community Development Act of 1992, the Housing and Urban-Rural Recovery Act of 1983, the National Housing Act, the Right to Financial Privacy Act of 1978, the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act), the Crime Control Act of 1990, the Flood Disaster Protection Act of 1973, the Investment Company Act of 1940, the Securities Exchange Act of 1934, and the federal criminal code to reflect the transfer of functions under this subtitle. (Sec. 1255) Amends the International Lending Supervision Act of 1983 to require each appropriate federal banking agency, in establishing capital requirements for banking institutions, to seek to make such requirements countercyclical so that the amount of capital required to be maintained by a banking institution increases in times of economic expansion and decreases in times of economic contraction, consistent with the institution's safety and soundness. (Sec. 1256) Transfers to the Federal Reserve Board all functions of the OTS Director with respect to savings and loan holding companies that are a fraternal beneficiary society or a company that is, together with its affiliates on a consolidated basis, predominantly engaged in the business of insurance. Subtitle D: Further Improvements to the Regulation of Bank Holding Companies and Depository Institutions
Section 1301 -
Amends the Bank Holding Company Act of 1956 (BHCA) to redefine bank holding company and to prescribe the treatment of industrial loan companies, savings associations, and certain other companies in order to effectuate consolidated supervision of certain financial companies by the Federal Reserve Board. Requires such companies to register as bank holding companies. Requires an entity that is subject to the stricter prudential standards under this Act to establish a special purpose intermediate holding company ("section 6 holding company") if such entity controlled shares or engaged in activities that did not comply with the activity or investment restrictions on financial holding companies prescribed by the Federal Reserve Board. Prescribes restrictions on the activities of such an entity and of a section 6 holding company, including: (1) transactions with affiliates; and (2) certain tying arrangements. Sets forth corporate governance requirements, including one that at least 25% of the members of the board of directors of a section 6 holding company, and each subsidiary of such company, be independent of the parent company of the section 6 holding company and any subsidiary of such parent company. Requires a company that controls a section 6 holding company to serve as a source of financial strength to such subsidiary.
Section 1302 -
Section 1303 -
Section 1304 -
Section 1305 -
Section 1306 -
Section 1307 -
Repeals the exemption of covered transactions between a bank and any of its individual financial subsidiaries from the requirement that the aggregate amount of the transaction not exceed 10% of the member bank's capital stock and surplus. Repeals also the exclusion of the financial subsidiary's retained earnings from a bank's investment in one of its individual financial subsidiaries.
Section 1308 -
Amends the Revised Statutes with respect to the limit of 15% of a national banking association's unimpaired capital and unimpaired surplus on the total loans and extensions of credit it makes to a person outstanding at one time and not fully secured by collateral having a market value at least equal to the amount of the loan or extension of credit. Includes among such loans and extensions of credit the credit exposure to a person arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction between the national banking association and a person. Defines derivative transaction as any transaction that is a contract, agreement, swap, warrant, note, or option based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodities, securities, currencies, interest or other rates, indices, or other assets. Requires the Comptroller of the Currency to prescribe rules with respect to credit exposures arising from any derivative transaction or related agreement or transaction.
Section 1309 -
Section 1310 -
Section 1311 -
Amends the FDIA to prohibit an insured depository institution from purchasing an asset from, or or selling one to, its executive officers, directors, or principal shareholders unless the transaction is on market terms and, if the transaction represents more than 10% of the institution's capital stock and surplus, the transaction has been approved in advance by a majority of the institution's board of directors (with interested directors not participating).
Section 1312 -
Section 1313 -
Section 1314 -
Section 1315 -
Section 1316 -
Section 1317 -
Amends the FDIA to prohibit the responsible agency (usually the FDIC) from approving an application for an interstate merger transaction if, upon consummation of the transaction, the resulting insured depository institution (including its affiliated insured depository institutions) would control more than 10% of the total amount of deposits of insured depository institutions in the United States. Amends the Home Owners' Loan Act to prohibit the OTS Director now, under this Act, the Federal Reserve Board) from approving a savings and loan holding company's application for an interstate acquisition of a savings association or a savings and loan holding company if the applicant (including its affiliated insured depository institutions) controls, upon consummation of the transaction would control, more than 10% of the total amount of deposits of insured depository institutions in the U.S.
Section 1318 -
Subtitle E - Improvements to the Federal Deposit Insurance Fund
Section 1401 -
- Amends the FDIA to: (1) redefine "risk-based assessment system" to include consideration of risks posed by affiliates; (2) repeal the provision that no depository institution shall be barred from the lowest-risk category solely because of size; (3) prescribe a formula for determining a risk-focused assessment base; (4) eliminate any mandatory declaration of a dividend if the reserve ratio of the Deposit Insurance Fund (DIF) falls between 1.35% and 1.5% of estimated insured deposits; (5) eliminate the requirement that the FDIC first obtain agreement with the Comptroller of the Currency, and the Federal Reserve Board before requiring any insured depository institution to file additional reports for insurance purposes; (6) eliminate the maximum reserve ratio for the DIF; and (7) require the FDIC to make available to the public, for at least five years, the reserve ratio and the designated reserve ratio using both estimated insured deposits and the assessment base revised under this subtitle.
Subtitle F - Improvements to the Asset-backed Securitization Process
Credit Risk Retention Act of 2009 -
Section 1502 -
Section 1503 -
Section 1504 -
Section 1505 -
Section 1506 -
Subtitle G - Enhanced Dissolution Authority
Dissolution Authority for Large, Interconnected Financial Companies Act of 2009 -
Section 1603 -
Section 1611 -
Section 1612 -
Section 1613 -
Section 1614 -
Section 1615 -
Section 1616 -
Section 1617 -
Amends the FDIA with respect to the order of priority for payment of claims from amounts realized from the liquidation or other resolution of any insured depository institution by any receiver. Grants third priority to any obligation of the institution owed to the FDIC as a result of the institution's default on a FDIC-guaranteed debt.
Subtitle H - Additional Improvements for Financial Crisis Management
Section 1701 -
Section 1702 -
Subjects the exercise of a federal reserve bank's foreign currency swap authority to advance approval by at least five members of the Federal Reserve Board and the written concurrence of the Secretary of the Treasury.
Section 1703 -
Subtitle I - Miscellaneous
Section 1801 -
Section 1802 -
Subtitle J - International Policy Coordination
Section 1901 -
Subtitle K - International Financial Provisions
Section 1951 -
Amends the International Banking Act of 1978 to authorize the Federal Reserve Board, in acting on any application for the establishment of a foreign bank office in the United States, to take into account for a foreign bank that presents a systemic risk to the United States, whether the home country of the foreign bank has adopted, or is making demonstrable progress toward adopting, an appropriate system of financial regulation for the home country financial system to mitigate such systemic risk. Authorizes the Federal Reserve Board to terminate the activities of a branch, agency, or subsidiary of a foreign bank operating in the United States if the Board finds that the home country of a foreign bank that presents a systemic risk to the United States has neither adopted nor made demonstrable progress toward adopting an appropriate system of financial regulation to mitigate systemic risk. Amends the Securities Exchange Act of 1934 to authorize the SEC, when determining whether to permit or terminate registration of a foreign person as a U.S. broker or dealer, to consider whether, for a foreign person (or affiliate) that presents a systemic risk to the United States, the foreign person's home country has either adopted or made demonstrable progress toward adopting an appropriate system of financial regulation to mitigate systemic risk. Authorizes the SEC to terminate the broker or dealer registration of a foreign person whose home country has not adopted or made progress toward adopting an appropriate system of financial regulation.
Section 1952 -
Subtitle L - Securities Holding Companies
Section 1961 -
Title II - Corporate and Financial Institution Compensation Fairness Act
Corporate and Financial Institution Compensation Fairness Act of 2009 -
Section 2002 -
Section 2003 -
Section 2004 -
Title III - Derivative Markets Transparency and Accountability Act
Derivative Markets Transparency and Accountability Act of 2009 -
Section 3001 -
Section 3003 -
Section 3004 -
Section 3005 -
Section 3006 -
Section 3007 -
Section 3008 -
Section 3009 -
Subtitle A - Regulation of Swap Markets
Section 3102 -
Section 3103 -
Section 3104 -
Section 3105 -
Section 3106 -
Section 3107 -
Section 3110 -
Section 3111 -
Section 3112 -
Section 3113 -
Section 3115 -
Section 3116 -
Section 3117 -
Section 3118 -
Grants the CFTC exclusive enforcement authority over swap markets. Grants the Prudential Regulators exclusive authority to enforce certain prudential requirements with respect to banks as well as branches or agencies of foreign banks that are swap dealers or major swap participants. Authorizes the CFTC and the Prudential Regulators to refer noncompliance with the other's requirements to the other. Declares specified disruptive practices unlawful.
Section 3119 -
Section 3120 -
Amends the CEA to: (1) grant the CFTC jurisdiction over specified retail commodity transactions; (2) require large swap traders to make specified reports and disclosures to the CFTC; and (3) require segregation of a counterparty's assets to be held as collateral in over-the-counter swap transactions not submitted for clearing to a derivatives clearing organization.
Subtitle B - Regulation of Security-Based Swap Markets
Section 3202 -
Section 3203 -
Section 3206 -
Section 3207 -
Subtitle C - Improved Financial and Commodity Markets Oversight and Accountability
Section 3301 -
Section 3305 -
Amends the CEA to authorize the CFTC to define "commercial risk," "operating risk," and "balance sheet risk."
Section 3306 -
Requires the rules of a derivatives clearing organization or a swap execution facility that clears swaps to prohibit: (1) specified owners ("restricted owners") from being permitted to acquire beneficial ownership of interests in the organization or in persons with a controlling interest in the organization or in the facility, to the extent that such an acquisition would result in restricted owners being entitled to vote, cause the voting of, or cause the withholding of votes of more than 20% of the votes entitled to be cast by the holders of the ownership interests; and (2) a majority of the directors of the organization or of the facility from being associated with a restricted owner. Requires a board of trade to establish and enforce rules to minimize conflicts of interest in the decisionmaking process of a contract market, and establish a process for resolving any such conflicts. Requires the rules of a board of trade that trades swaps to make similar conflicts of interest prohibitions for restricted owners as well as its own directors.
Title IV - Consumer Financial Protection Agency Act
Consumer Financial Protection Agency Act of 2009 -
Subtitle A - Establishment of the Agency
Section 4101 -
Section 4103 -
Section 4104 -
Section 4106 -
Section 4107 -
Section 4108 -
Section 4110 -
Section 4111 -
Section 4113 -
Subtitle B - General Powers of the Director and Agency
Section 4201 -
Section 4202 -
Section 4203 -
Division for Community Financial Institutions to - (1) advise the Director on the impact of Agency policies and regulations on community financial institutions; and (2) help ensure that Agency policies and regulations do not unduly burden community financial institutions. (Sec. 4204) Requires a federal banking agency and the Agency, with respect to each insured depository institution, credit union, or other covered person supervised by the federal banking agency and the Agency, respectively, to: (1) coordinate the scheduling of examinations of the insured depository institution, and credit union, or other covered person; (2) conduct simultaneous examinations of each insured depository institution, credit union or other covered person, unless such institution requests examinations to be conducted separately; (3) share each draft report of examination with the other agency and permit the receiving agency a reasonable opportunity to comment on the draft report before such report is made final; and (4) before issuing a final report of examination or taking supervisory action, take into consideration concerns, if any, raised in the comments made by the other agency. Requires the Agency to pursue arrangements and agreements with state bank supervisors to coordinate such examinations. Authorizes an insured depository institution, credit union, or other covered person, if the proposed material supervisory determinations of the Agency and a federal banking agency are conflicting, to request the agencies to coordinate and present a joint statement of coordinated supervisory action. Prescribes requirements for composition of a governing panel to hear an appeal of an insured depository institution, credit union, or other covered person if: (1) such a joint statement is not issued: or (2) either agency takes or attempts to take any supervisory action relating to the request for the joint statement without the other agency's consent. (Sec. 4205) Prohibits the Director and the Agency from exercising any rulemaking, supervisory, enforcement authority (including authority to order assessments) with respect to: (1) credit extended directly by a merchant, retailer, or seller of nonfinancial goods or services to a consumer, if such good or service is not itself a consumer financial product or service, exclusively for the purpose of enabling the purchase such goods or services directly from the merchant, retailer, or seller of nonfinancial services; or (2) collection of debt, directly by the merchant, retailer, or seller of nonfinancial services, arising from such extension of credit. Excludes from the regulatory authority of the Director and the Agency any person regulated by the SEC, the CFTC, a state securities commission, a state insurance regulator, the FHFA, the Farm Credit Administration, employee benefit and compensation plans, , accountants and tax preparers, real estate licensees, auto dealers, manufactured home retailers and modular home retailers, pawnbrokers, certain consumer reporting agencies, as well as certain activities related to charitable contributions or engaged in by an attorney as part of a law practice. Prohibits this title from being construed to confer authority on the Director or the Agency to establish a usury limit applicable to an extension of credit offered or made by a covered person to a consumer. (Sec. 4207) Requires the Agency to monitor for risks to consumers in the provision of consumer financial products or services, including developments in markets for such products or services. Requires the Agency to conduct an assessment of each significant regulation prescribed or order issued by the Director. (Sec. 4208) Authorizes the Director to restrict mandatory predispute arbitration. (Sec. 4209) Requires the Agency to: (1) develop risk-based programs to supervise covered persons that are not credit unions, depository institutions, or specified persons excluded under Section 4205; and (2) prescribe regulations regarding registration requirements for covered persons that are not credit unions or depository institutions. Subtitle C: Specific Authorities
Section 4301 -
Section 4304 -
Section 4305 -
Section 4306 -
Section 4308 -
Section 4309 -
Prescribes mandatory disclosures for remittance transfers. Directs the Federal Reserve Board to work with the federal reserve banks to expand the use of the automated clearinghouse system for remittance transfers to foreign countries. Instructs the Director to report to the President and certain congressional committees on the feasibility of and impediments to use of remittance history in calculation of a consumer's credit score.
Section 4311 -
Section 4312 -
Requires the Director to: (1) lead a Negotiated Rulemaking Committee to promulgate certain appraisal independence requirements for residential loans; (2) promulgate a new rule requiring banks to place prominently in each consumer branch office information regarding the fees and charges associated with enrollment in the bank's overdraft protection program; and (3) review federal laws and regulations relating to the protection of persons who utilize exchange facilitators, and report to Congress any recommendations to ensure protection of persons who utilize exchange facilitators.
Section 4315 -
Section 4316 -
Subtitle D - Preservation of State Law
Section 4401 -
Section 4402 -
Section 4404 -
Amends the Revised Statutes and the Home Owners' Loan Act to prescribe state law preemption standards and visitorial standards for national banks, federal savings associations, and nondepository institution subsidiaries.
Subtitle E - Enforcement Powers
Section 4502 -
Subtitle F - Transfer of Functions and Personnel; Transitional Provisions
Section 4601 -
Section 4604 -
Subtitle G - Regulatory Improvements
Section 4701 -
Section 4702 -
Section 4703 -
Section 4704 -
Subtitle H - Conforming Amendments
Subtitle I - Improvements to the Federal Trade Commission Act
Section 4901 -
Subtitle J - Miscellaneous
Section 4951 -
Title V - Capital Markets
Subtitle A - Private Fund Investment Advisers Registration Act
Private Fund Investment Advisers Registration Act of 2009 -
Section 5003 -
Section 5004 -
Section 5005 -
Section 5006 -
Section 5007 -
Section 5008 -
Section 5009 -
Subtitle B - Accountability and Transparency in Rating Agencies Act
Accountability and Transparency in Rating Agencies Act of 2009 -
Section 6002 -
Section 6003 -
Section 6004 -
Section 6007 -
Section 6008 -
Section 6009 -
Section 6010 -
Section 6012 -
Section 6013 -
Subtitle C - Investor Protection Act
Investor Protection Act of 2009 -
Section 7101 -
Section 7102 -
Section 7103 -
Section 7104 -
Requires the SEC to publish a study that examines the nature of "retail customers" and the range of products and services sold to them, as well as the sellers or providers, and related information such customers should receive before their purchase of investment products or services. Authorizes the SEC, following completion of such study, to promulgate rules requiring that the appropriate persons or entities provide designated documents or information to retail customers prior to the purchase of identified investment products or services.
Section 7105 -
Section 7106 -
Amends the Investment Company Act of 1940 to prescribe recordkeeping requirements for each person with custody or use of a registered investment company's securities, deposits, or credits.
Section 7107 -
Section 7108 -
Part 2 - Enforcement and Remedies
Section 7201 -
Section 7202 -
Section 7203 -
Section 7206 -
Section 7207 -
Section 7209 -
Section 7217 -
Section 7218 -
Section 7219 -
Section 7220 -
Section 7221 -
Section 7222 -
Part 3 - Commission Funding and Organization
Section 7301 -
Section 7302 -
Section 7303 -
Section 7304 -
Requires the SEC to hire an independent consultant to examine and report to the SEC and Congress on SEC internal operations, structure, funding, and the need for comprehensive reform, including the SEC's relationship with and reliance upon self-regulatory organizations and other entities under SEC oversight relevant to the regulation of securities and the protection of investors.
Section 7305 -
Section 7306 -
Section 7307 -
Part 4 - Additional Commission Reforms
Section 7401 -
Section 7407 -
Section 7408 -
Section 7409 -
Section 7411 -
Section 7412 -
Amends the Investment Company Act of 1940 to extend the definition of "interested person" to any natural person who is a member of a class of persons the SEC determines are unlikely to exercise an appropriate degree of independence due to: (1) a material business or professional relationship with such company or any affiliated person of such company; or (2) a close familial relationship with any natural person who is an affiliated person of such company. Repeals two current requirements dealing with execution of portfolio transactions and the lending of money or other property.
Section 7413 -
Section 7414 -
Section 7415 -
Section 7416 -
Section 7417 -
Section 7418 -
Section 7419 -
Directs the SEC to adopt a rule making it unlawful for an SEC-registered investment adviser to have custody of funds or securities of a client the value of which exceeds $10 million, unless: (1) the funds and securities are maintained with a qualified custodian either in a separate account for each client under the client's name, or in accounts that contain only client funds and securities under the name of the investment adviser as agent or trustee for the client; and (2) the qualified custodian does not directly or indirectly provide investment advice with respect to such funds or securities.
Section 7420 -
Section 7422 -
Requires every institutional investment manager that effects a short sale of an equity security to file daily with the SEC specified short sale disclosures. Makes it unlawful to effect manipulative short sales of securities. Requires registered brokers or dealers to notify customers that: (1) they may elect not to allow their fully paid securities to be used in connection with short sales; and (2) the broker or dealer may receive compensation in connection with lending the customer's securities.
Section 7423 -
Part 5 - Securities Investor Protection Act Amendments
Section 7501 -
Section 7504 -
Section 7506 -
Section 7510 -
Part 6 - Sarbanes-Oxley Act Amendments
Section 7601 -
Amends the Sarbanes-Oxley Act of 2002 to include brokers and dealers within its purview. Authorizes the PCAOB to conduct and require a program of inspection of registered public accounting firms that provide audit reports for brokers and dealers. Prescribes a scheme for allocating accounting support fees among brokers and dealers. Refers to the appropriate self-regulatory organization any investigations concerning an audit report for a broker or dealer that is subject to the organization's jurisdiction.
Section 7602 -
Authorizes the PCAOB to provide to a foreign auditor oversight authority all information relating to a public accounting firm within the foreign oversight authority's jurisdiction.
Section 7603 -
Revises requirements for the production of audit work papers by a foreign public accounting firm or a registered public accounting firm that relies upon the work of the foreign firm. Requires a foreign public accounting firm to produce its audit work papers and all other documents to the SEC or the PCAOB upon request if the firm issues an audit report, performs audit work, or conducts interim reviews upon which a registered public accounting firm relies in the conduct of an audit or interim review. (Continues to require a registered public accounting firm relying upon the work of a foreign public accounting firm to produce the foreign firm's work papers upon SEC or PCAOB request.)
Section 7605 -
Section 7606 -
Exempts smaller securities issuers that are not accelerated filers from the requirement that a registered public accounting firm that prepares or issues the issuer's audit report attest to, and report on, the assessment made by the issuer's management. Directs the SEC to study and report to Congress on how it could reduce the burden for certain companies (whose market capitalization is between $75 million and $250 million for the relevant reporting period) of complying with such requirement while maintaining investor protections for such companies.
Section 7607 -
Section 7608 -
Section 7609 -
Section 7610 -
Part 7 - Senior Investment Protection
Section 7703 -
Section 7706 -
Part 8 - Registration of Municipal Financial Advisors
Section 7801 -
Title VI - Federal Insurance Office
Federal Insurance Office Act of 2009 -
Section 8002 -
Section 8003 -
Section 8005 -
Title VII - Mortgage Reform and Anti-Predatory Lending Act
Mortgage Reform and Anti-Predatory Lending Act -
Subtitle A - Residential Mortgage Loan Origination Standards
Section 9002 -
Amends the Truth in Lending Act (TILA) to prescribe fiduciary standards for originators of residential mortgages, including complete and timely written disclosure of: (1) the comparative costs and benefits of each residential mortgage loan product presented by the originator; (2) the nature of the originator's relationship to the consumer, including the cost of services provided by the originator; and (3) any relevant conflicts of interest between originator and consumer.
Section 9003 -
Section 9004 -
Section 9005 -
Section 9006 -
Section 9101 -
Prescribes minimum standards for residential mortgage loans, including a requirement that a residential mortgage loan creditor: (1) make a reasonable and good faith determination based upon verified and documented information that the consumer has a reasonable ability to repay the loan and its applicable taxes, insurance, and assessments; and (2) use a fully amortizing repayment schedule for purposes of determining a consumer's ability to repay a variable rate loan that defers repayment of principal or interest. Denies application of such standards to reverse mortgages.
Section 9102 -
Section 9103 -
Section 9104 -
Section 9105 -
Section 9106 -
Prohibits specified practices, including: (1) certain prepayment penalties; (2) single premium credit insurance; (3) mandatory arbitration or other nonjudicial procedure (except for reverse mortgages); (4) residential mortgage loan terms that waive a statutory cause of action by the consumer; and (5) mortgages with negative amortization (except, again, for reverse mortgages), unless certain disclosures are made and a first-time borrower receives homeownership counseling. Requires a creditor or mortgage originator, before loan consummation or loan refinancing, to disclose the protection provided by a state anti-deficiency law and its significance for the consumer upon the loss of that protection. (A state anti-deficiency law shields a consumer mortgagor from liability for any deficiency between a foreclosure sale price and the outstanding balance of the mortgage.) Requires a residential mortgage loan creditor to disclose before settlement: (1) the creditor's policy regarding partial payments and their application to the mortgage; and (2) whether partial payments will be placed in escrow.
Section 9110 -
Section 9111 -
Section 9112 -
Section 9113 -
Section 9115 -
Section 9117 -
Section 9118 -
Section 9201 -
Section 9202 -
Section 9203 -
Prescribes additional requirements for certain mortgages. Prohibits a creditor from: (1) recommending default on an existing debt prior to and in connection with the closing of a high-cost mortgage that refinances any portion of such debt; (2) imposing late payment fees in connection with a high-cost mortgage except in compliance with specified requirements; (3) accelerating debt on a high-cost mortgage (except in certain circumstances); or (4) financing, in connection with any high-cost mortgage, either a prepayment fee or penalty payable by the consumer if the creditor is the noteholder of the note being refinanced. Prohibits the creditor of a high-cost mortgage from implementing certain evasions, structured transactions, and reciprocal arrangements. Prohibits a creditor from charging a consumer any fee to modify, renew, extend, or amend a high-cost mortgage, or to defer any payment due under such mortgage, unless the modification, renewal, extension, or amendment results in a lower APR on the mortgage for the consumer, and the fee is comparable to fees imposed for similar consumer credit transactions secured by a consumer's principal dwelling. Prohibits any fee for payoff statements, except a processing fee. Requires a creditor, as a prerequisite to extending consumer credit under a high-cost mortgage, to receive certification from a HUD-approved counselor that the consumer has received counseling on the advisability of the mortgage. Prohibits any creditor from knowingly or intentionally engaging in the unfair act or practice of flipping in connection with a high-cost mortgage. Defines flipping as the making of a loan or extension of credit in the form a high-cost mortgage to a consumer which refinances an existing mortgage when the new loan or extension of credit does not have reasonable, net tangible benefit to the consumer considering all of the circumstances. Prescribes a procedure by which a high cost loan creditor or assignee that, acting in good faith, commits an unintentional violation of these prohibitions and other requirements may make timely corrections and avoid liability for the violation.
Expand and Preserve Home Ownership Through Counseling Act -
Section 9302 -
Section 9303 -
Section 9304 -
Section 9305 -
Section 9306 -
Section 9307 -
Section 9309 -
Section 9310 -
Section 9311 -
Section 9312 -
Section 9401 -
Amends TILA to require a creditor in a non-credit card consumer credit transaction secured by a first lien on the principal dwelling (other than a reverse mortgage) to establish an escrow or impound account for mandatory periodic payments or premiums (including taxes, insurance, and ground rents). Prohibits making an escrow or impound account a condition of a real property sale contract or a loan secured by a first deed of trust or mortgage on the consumer's principal dwelling unless specified circumstances exist. Requires such escrow or impound account to remain in existence for at least five years until sufficient equity exists so that private mortgage insurance is no longer required, or unless the underlying mortgage is terminated. States that: (1) escrow accounts need not be established for loans secured by shares in a cooperative; and (2) insurance premiums need not be included in escrow accounts for loans secured by condominium units if the condominium association has an obligation to unit owners to maintain a master insurance policy. Requires: (1) escrow accounts to be established in a federally insured depository institution; and (2) each creditor to pay interest on the amount held in such accounts as required by state or federal law. Requires specified consumer disclosures regarding a mandatory escrow or impound account before consummation of the credit transaction giving rise to such account.
Section 9402 -
Section 9403 -
Section 9404 -
Amends TILA to prohibit a loan servicer, except in a specified circumstance, from failing to credit a payment to the consumer's account as of the date of receipt. Requires a creditor or servicer of a home loan to send an accurate payoff balance no later than seven business days after receipt of a written request for it.
Section 9405 -
Section 9501 -
Section 9502 -
Declares unfair and deceptive certain practices relating to consumer credit transaction secured by the consumer's principal dwelling. Includes among unfair and deceptive practices any appraisal of a property offered as security in which a person with an interest in the underlying transaction compensates, coerces, extorts, colludes, instructs, induces, bribes, or intimidates a person conducting or involved in the appraisal. Includes, in addition, among such practices: (1) mischaracterizing, or suborning mischaracterization of the appraised value of the property securing the extension of the credit; (2) seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the transaction; and (3) withholding or threatening to withhold timely payment for an appraisal report or for appraisal services rendered. Prohibits any certified or licensed appraiser or appraisal management company from having an interest, financial or otherwise, in the property or transaction involving the appraisal. Requires designated federal agencies to prescribe implementing regulations jointly. Subjects unfair and deceptive practices to civil penalties.
Section 9503 -
Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to provide the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FIEC) with a consumer protection mandate. Directs the Subcommittee to monitor the efforts of, and requirements established by, states and federal financial institutions regulatory agencies to protect consumers from improper appraisal practices and from predations of unlicensed appraisers in consumer credit transactions secured by a consumer's principal dwelling. Requires the Subcommittee to detail in its annual report to Congress: (1) the results of all audits of state appraiser regulatory agencies; and (2) an accounting of disapproved actions and warnings taken in the previous year, including the conditions causing the disapproval and the actions taken to achieve compliance. Requires meetings of the Subcommittee to be open to the public. Requires: (1) all property appraisals performed within a state to be prepared by appraisers licensed or certified within the state where the property is located; and (2) all appraisal reviews to be performed by an appraiser licensed or certified by a state appraisal board. Requires the Subcommittee to monitor state requirements for the registration and supervision of an appraisal management company. Directs the Subcommittee to maintain a national registry of appraisal management companies that either are: (1) registered with and subject to supervision of a state appraiser certifying and licensing agency; or (2) operating subsidiaries of a federally regulated financial institution. Requires the Appraiser Qualifications Board of the Appraisal Foundation to establish minimum qualifications a state must apply in the registration of appraisal management companies, including specified requirements. Requires the appropriate federal financial institution regulatory agency to develop regulations affecting the operations of any appraisal management company that is a subsidiary owned and controlled by a federally regulated financial institution. Sets forth: (1) registration limitations; (2) additional state agency reporting requirements; and (3) revised registry fees. Authorizes the Subcommittee to award grants to state appraiser certifying and licensing agencies in order to support their compliance with this Act. Authorizes the Subcommittee to: (1) remove a state licensed or certified appraiser or a registered appraisal management company from a national registry on an interim basis pending state agency action on licensing, certification, registration, and disciplinary proceedings; (2) impose sanctions against a state agency that fails to have an effective appraiser regulatory program; and (3) impose interim actions and suspensions against a state agency as an alternative to, or in advance of, derecognition of a state agency. Requires a state appraiser certifying or licensing agency to issue a reciprocal certification or license for an individual with a valid certification or license from another state in compliance with this Act whose licensure standards meet or exceed those of the first state. Requires the Subcommittee to monitor each state appraiser certifying and licensing agency to determine whether: (1) its policies, practices, and procedures are consistent with the purposes of maintaining appraiser independence; and (2) such state maintains effective regulations, and policies regarding maintaining appraiser independence. Requires the Subcommittee, one year after enactment of this Act, to establish and operate an Appraisal Complaint National Hotline, including a toll-free telephone number and an email address, if none exists by that time. Directs the Subcommittee to promulgate regulations to implement quality control standards governing automated valuation models (computerized models used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumer's principal dwelling). Prohibits broker price opinions from being used as the primary basis to evaluate property for loan origination in connection with a residential mortgage loan secured by such property. Amends the Federal Financial Institutions Examination Council Act of 1978 to require that at all times at least one member of the Appraisal Subcommittee have demonstrated knowledge and competence through licensure, certification, or professional designation within the appraisal profession.
Section 9504 -
Section 9505 -
Amends the Equal Credit Opportunity Act (ECOA) to revise requirements that creditors provide loan applicants a copy of the appraisal report used in connection with the applicant's application for a loan that is or would have been secured by a lien on residential real property. Repeals the condition that the loan applicant request the copy. Requires a creditor to furnish the applicant a copy of all written appraisals and valuations within three days after the closing of the loan.
Section 9506 -
Amends RESPA to require the standard real estate settlement form to disclose, in the case of an appraisal coordinated by an appraisal management company, the fee paid directly by the company to the appraiser as well as the company's administration fee.
Subtitle G - Sense of Congress Regarding the Importance of Government Sponsored Enterprises Reform
Section 9601 -
Subtitle H - Reports and Data Collection
Section 9701 -
Section 9702 -
Subtitle I - Multifamily Mortgage Resolution
Section 9801 -
Subtitle J - Study of Effect of Drywall Presence on Foreclosures
Subtitle K - Home Affordable Modification Program
Section 9911 -
Instructs the Secretary of the Treasury to revise the supplemental directives and other guidelines for the Home Affordable Modification Program of the Making Home Affordable initiative to require each mortgage servicer participating in such program to provide each borrower under a mortgage whose request for a mortgage modification under the Program is denied with all borrower-related and mortgage-related input data used in any net present value (NPV) analyses performed in connection with the subject mortgage. Requires such input data to be provided to the borrower at the time of such denial. Directs the Secretary to establish a public website that provides: (1) a calculator for NPV analyses of a mortgage, based on the Secretary's methodology for calculating such value, that mortgagors can use to enter information regarding their own mortgages; and (2) a determination after entering such information of whether such mortgage would be accepted or rejected for modification under the Program.
Subtitle L - Home Affordable Program
Section 9921 -
Title VIII - Foreclosure Avoidance and Affordable Housing
Section 10001 -
Directs the Secretary of the Treasury to transfer $3 billion in TARP funds to the HUD Secretary, which shall be credited to the Emergency Homeowners' Relief Fund for emergency mortgage assistance. Amends the Emergency Housing Act of 1975 to permit emergency mortgage assistance if the mortgagor has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to medical conditions. Revises requirements for emergency mortgage assistance to replace the maximum amount of $250 per month with an amount determined reasonably necessary to supplement what the homeowner is capable of contributing toward the mortgage payment. Caps the aggregate amount of such assistance to any homeowner at $50,000. Makes the interest rate fixed for the life of an insured loan or credit advance. Limits the interest rate to that generally charged for HUD-insured mortgages on single-family housing. Prohibits the charging of any interest on deferred interest on such a loan or credit advance. Requires the Secretary, in establishing rates, terms, and conditions for loans or advances of credit, to take into account a homeowner's ability to repay such loan or credit advance. Authorizes any eligible homeowner who receives such a grant or credit advance to repay the loan in full, without penalty, by lump sum or by installment payments at any time before it becomes due and payable. Repeals the 40% cap on the total amount of loans and credit advances by a financial institution that may be insured, and the 90% cap on the payment of any single loss claim that may be paid out. Increases from $1.5 billion to $3 billion the cap on the aggregate amount of insured loans and advances, but includes emergency mortgage relief payments in such amount. Directs the Secretary to establish underwriting guidelines or procedures to allocate amounts made available for incurred loans and advances and for emergency relief payments, based on the likelihood that a mortgagor will be able to resume mortgage payments. Repeals the authorization of appropriations for the emergency mortgage relief program, but extends through FY2011 the authority to insure loans and credit advances under the program and to make emergency mortgage relief payments. Repeals the authority of each federal supervisory agency to waive or relax limitations pertaining to their operations with respect to mortgage delinquencies in order to cause or encourage forebearance in residential mortgage loan foreclosures. Repeals certain reporting requirements as well as the authority of the FDIC to make credit advances to insured banks to facilitate their participation in the emergency mortgage relief program.
Section 10002 -
Title IX - Nonadmitted and Reinsurance Reform Act
Nonadmitted and Reinsurance Reform Act of 2009 -
Subtitle A - Nonadmitted Insurance
Section 10101 -
Prohibits any state other than the home state of an insured from requiring a premium tax payment for nonadmitted insurance. Authorizes states to establish procedures to allocate among themselves the premium taxes paid to an insured's home state. Declares that Congress intends that each state adopt nationwide uniform requirements, forms, and procedures, such as an interstate compact, that provide for the reporting, payment, collection, and allocation of premium taxes for nonadmitted insurance consistent with this Act. Allows an insured's home state to require surplus lines brokers and certain insureds to file annual tax allocation reports detailing the portion of the nonadmitted insurance premiums attributable to properties, risks, or exposures located in each state.
Section 10102 -
Subjects nonadmitted insurance solely to the regulatory requirements of the insured's home state. Declares that only an insured's home state may require a surplus lines broker to be licensed to conduct nonadmitted insurance business with respect to such insured. Declares that state law, rule, or regulation that restricts the placement of workers' compensation insurance or excess insurance for self-funded workers' compensation plans with a nonadmitted insurer is not preempted.
Section 10103 -
Section 10104 -
Section 10105 -
Section 10106 -
Subtitle B - Reinsurance
Section 10201 -
Prohibits a state from denying credit for reinsurance for the insurer's ceded risk if the domiciliary state of an insurer purchasing reinsurance (the ceding insurer) recognizes such credit and: (1) is either an NAIC-accredited state; or (2) has financial solvency requirements substantially similar to NAIC accreditation requirements. Preempts the extraterritorial application of a non-domiciliary state's laws, regulations, or other actions (except those related to taxes and assessments on insurance companies or insurance income) to the extent that they: (1) restrict or eliminate the rights of the ceding insurer or the assuming insurer to resolve disputes pursuant to contractual arbitration that is not inconsistent with federal law; (2) require that a certain state's law shall govern the reinsurance contract, its requirements, or any disputes arising from it; or (3) attempt to enforce a reinsurance contract on terms different than those set forth in it, if those terms are not inconsistent with this subtitle.
Section 10202 -
Reserves to a reinsurer's domiciliary state sole responsibility for regulating the reinsurer's financial solvency if it is either NAIC-accredited, or has financial solvency requirements substantially similar to NAIC. Prohibits any other state from requiring a reinsurer to provide financial information in addition to that required by its NAIC-compliant domiciliary state.
Subtitle C - Rule of Construction
Section 10301 -
Title X - Interest-Bearing Transaction Accounts Authorized
Section 11001 -
Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the prohibition against the payment of interest on demand deposits.
This is comprehensive legislation to overhaul regulations in the financial sector. It would establish a new Consumer Financial Protection Agency to regulate products like home mortgages, car loans and credit cards, give the Treasury Department new authority to place non-bank financial firms, like insurance companies into receivership, regulate the over-the-counter derivatives market, and more.
Public Law No. 111-203Introduced: 12/02/09House Passed: 12/11/09Senate Passed: 5/20/2010President Signed: 7/21/2010
Specific Organizations Supporting H.R.4173:
Interests that support H.R.4173:
Other commodities (incl rice, peanuts, honey) Other commodities (incl rice, peanuts, honey) (close) Cotton Cotton (close) Livestock Livestock (close) Farm organizations & cooperatives Farm organizations & cooperatives (close) Gasoline service stations Gasoline service stations (close) Other real estate services Other real estate services (close) Airlines Airlines (close) Trucking companies & services Trucking companies & services (close) Department, variety & convenience stores Department, variety & convenience stores (close) Elderly issues/Social Security
Specific Organizations Opposing H.R.4173:
Interests that oppose H.R.4173:
Commercial banks & bank holding companies Commercial banks & bank holding companies (close) Credit unions Credit unions (close) Chambers of commerce