27 Dec Federal Legislative and New York Regulatory Update
The U.S. Senate and House of Representatives passed legislation amending the Federal Deposit Insurance Act. The New York Superintendent of Financial Institutions (“Superintendent”) extended emergency regulations.
On December 20, 2012 the Senate and the House of Representatives passed legislation which amended the Federal Deposit Insurance Act to include the Bureau of Consumer Financial Protection (the “CFPB”) as an agency which may share information without waiving privilege.
Specifically 12 U.S.C. 1821(t)(2)(A) now lists the CFPB as a “covered agency”. A covered agency in any capacity, will not be deemed to have waived any privilege applicable to any information by transferring that information to or permitting that information to be used by any other covered agency or any other agency of the Federal government.
H.R. 4014 also amended 12 U.S.C. 1828(x) to read: “The submission by any person of any information to the Bureau of Consumer Financial Protection, to any Federal banking agency, State bank supervisor or any foreign banking authority for any purpose in the course of any supervisory or regulatory process of such Bureau, agency, supervisor or authority shall not be construed as waiving, destroying, or otherwise affecting any privilege such person may claim with respect to such information under Federal or State law as to any person or entity other than such Bureau, agency, supervisor or authority.”
The legislation became effective immediately.
NEW YORK EMERGENCY REGULATION PART 420 and SUPERVISORY PROCEDURES MB 107 and MB 108 (effective November 27, 2012)
Our January 25, 2010, March 22, 2010, August 10, 2010, December 16, 2010, March 24, 2011, June 30, 2011, September 29, 2011, March 23, 2012, and June 6, 2012 Compliance Memorandums discussed Emergency Regulations issued by the Superintendent addressing mortgage loan originator licensing and application requirements. The Superintendent recently extended the Emergency Regulations through February 24, 2013.