NEXT WEEK (Oct. 9) updated: Grab bag of regulatory bills in House markup, action on Otting nomination

Also: Otting confirmation to OCC may come up; Fischer leaves FRB; comments due on securities transaction settlement cycle proposals; teleconference on proposed capital rule; no report Monday

A markup of legislation featuring at least 23 separate items affecting federal regulation of financial institutions will be held by the House Financial Services Committee on Wednesday (Oct. 11).

Among the provisions to be considered are those that would:

  • Require federal financial regulatory agencies to “TAILOR” regulatory actions to limit burdens on the institutions involved (for actions in the future, and within the past seven years), and report to Congress on specific actions taken to do so.
  • Raise the threshold for reporting under HMDA requirements (essentially exempting institutions originating less than 1,000 closed-end mortgage loans in each of the two preceding calendar years; and less than 2,000 open-end lines of credit in each of the two preceding calendar years);
  • Increase to $50 billion the threshold at which regulated depository institutions are subject to direct examination and reporting requirements of CFPB;
  • Codify that the rate of interest on certain loans remain unchanged after transfer of the loan (overturning the “Midland Funding, LLC v. Madden” decision on “valid when made” contracts).
  • Enact the “senior safe act,” which is designed to provide immunity from suit for individuals who disclose potential examples of financial exploitation of senior citizens
  • Repeal the Department of Labor’s “fiduciary rule” (which holds financial advisers to a “fiduciary standard” affecting how they may advise clients on retirement savings)
  • Establish that federal banking agencies may only subject a depository institution to higher capital standards with respect to a high volatility commercial real estate (HVCRE) exposure if such exposure is an HVCRE acquisition, development, or construction (ADC)

The mark-up is scheduled for 10 a.m. in the House Rayburn Office Building Room 2128. See the Calendar posting for links to specific items listed by the House Financial Services Committee

Also next week:

  • The nomination of Joseph Otting to be Comptroller of the Currency could be taken up as early as Tuesday (Oct. 10) in the Senate.
  • Comments are due Wednesday on a joint Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC) proposed rule to shorten the standard settlement cycle for securities purchased or sold by national banks or federal savings associations;
  • The FDIC, OCC, and the Federal Reserve will host a conference call on Thursday, at 1 p.m. (ET) to discuss with financial institutions proposed changes to the capital rules related to the treatment of acquisition, development or construction (ADC) loans, items subject to threshold deduction, and minority interests includable in regulatory capital.
  • Stanley Fischer’s last day as a member (and vice chairman) of the Federal Reserve Board is Friday; he announced his resignation Sept. 6.
  • Regulatory Report takes a break on Monday (Oct. 9) in observance of the Columbus Day federal holiday.