MONTH-IN-BRIEF (Feb 2018)
FDIC Amends International Banking Regulations
By Nicole DeSantis, Rabobank, NA
On February 14, 2018, the Federal Deposit Insurance Corporation amended its international banking regulations to remove references to external credit ratings and replace them with appropriate standards of creditworthiness consistent with Section 939A of the Dodd-Frank Act. References to credit ratings in the definition of "investment grade" were replaced with a standard of creditworthiness adopted in other federal regulations that conform to Section 939A. Other changes included adding cash to the list of assets eligible for pledging and separately listing Government Sponsored Enterprise obligations as a pledgeable asset category.
Consumer Finance Law
Court Decision in PHH Corp. v. CFPB
By Dave Permut, Goodwin Procter LLP
On January 31, 2018, the D.C. Circuit, sitting en banc, rejected a constitutional challenge to the Dodd-Frank Act’s provision making the Director of the CFPB removable only for cause. The opinion also reinstated the prior panel’s interpretation of the Real Estate Settlement Procedures Act (“RESPA”). The prior panel’s opinion had held that Section 8(c) of RESPA is a safe harbor, that the CFPB’s retroactive application of its new interpretation of RESPA violated due process and that the statute of limitations for RESPA Section 8 enforcement actions is three years.