In the early morning hours on Friday June 25th a congressional panel reached agreement on a sweeping overhaul of the financial system. The agreement now must go to the full Senate and House of Representatives for final votes and is expected to be on President Obama’s desk for signing by July 4th.
Major compliance issues include:
A new financial regulator, but only for institutions with assets exceeding $10 billion.
A restriction that prohibits lenders from making a loan without verifying that the borrower can repay it. Lenders would have to disclose the maximum amount that borrowers could pay on adjustable-rate mortgages and they would be barred from receiving incentives to push homebuyers into high-priced loans.
The new rules will prohibit mortgage brokers from steering customers into more expensive loans for a commission and will ban no-documentation loans. It will also make credit card statements more readable and transparent, allowing consumers to more easily compare products.
Once signed, the bill will move to the regulatory agencies for the drafting of regulations. In other words, nothing will happen immediately.
Stay tuned for further details.
Thanks for keeping us bankers updated.
Maxine,
Keeping bankers informed is what we are all about. The blog is just one more way to get the job done.
Thanks for your continued support.
Sent from my iPad
I am excited to find out about your blog Jack! I sat in on a teleconference last week with Sheshunoff that covered the new Bill. I am interested to learn more about it. I will be an avid follower of your blog.
Matt
Matt,
I am excited about the blog as well. So far it has been fun, and as long as it is fun I will keep it going.
Sent from my iPad
Great way to keep up with the upcoming regulations/revisions.
Amador,
That is the goal! I hope it continues to work for you.
Jack,
Thanks for this terrific blog. You’re making life a little easier.
We have recently been audited, and have been asked about an active duty military form. What does this consist of, and when would we use it?
The form may involved with one of several different areas. Rather than speculating, you should confirm with the auditor.