Real Estate Home Loans in Boise Idaho, Benchmark Mortgage - Prime Equity Group: Second Summary of Mortgage Related Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173)

As signed by the Conference of the House and Senate on June 29, 2010, passed by the House of Representatives on June 30, 2010 and pending Senate action

 BACKGROUND - This summary describes the key points in H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act, agreed to by conferees from the Senate and House of Representatives on June 29, 2010, that are relevant to MBA members. The Conference Report on the bill was passed by the House of Representatives on June 30, 2010 by a 237 to 192 vote. It is anticipated that the Senate will take up the bill during the week of July 12-19 and that the bill will be passed and signed into law soon after.

SCOPE OF SUMMARY - The Dodd-Frank Bill is a massive piece of legislation intended to address countless problem areas that are believed to have caused the financial crisis. It is more than 2,300 pages long and includes 16 titles.

Titles IX, X and XIV are of particular interest to MBA members. Title IX includes provisions on "risk retention" and "qualified residential mortgages" as well as credit rating agency provisions. Title X establishes the Consumer Financial Protection Bureau (CFPB) and its responsibilities. Title XIV, the Mortgage Reform and Anti-Predatory Lending Act, is replete with provisions affecting the industry including originator compensation, underwriting requirements and qualified mortgage provisions, to name a few. This summary includes: (1) Brief Overview of Key Provisions of Dodd-Frank Bill; (2) Short Summary of Provisions of Particular Interest to MBA Members; and (3) Expanded Summary of Specific Provisions.

BRIEF OVERVIEW OF KEY PROVISIONS OF THE DODD-FRANK BILL - The bill would:

• Establish Financial Stability Oversight Council to address systemic risks
• Provide liquidation authority to permit orderly liquidation of systemically risky companies
• Revise bank and bank holding company regulatory regime by transferring Office of Thrift Supervision functions to Office of Comptroller of Currency (OCC) and clarifying regulatory functions of Federal Deposit Insurance Corporation (FDIC) and Board of Governors of Federal Reserve (FRB)
• Establish regulation of investment advisers to hedge funds
• Establish a new Federal Insurance Office to monitor the insurance industry including regulatory gaps that could contribute to systemic risk
• Restrict banks, bank affiliates and bank holding companies from proprietary trading or investing in a hedge fund or private equity fund
• Increase regulation and transparency of the over-the-counter derivatives markets
• Establish new regulation of credit rating agencies
• Establish new requirements regarding executive compensation including shareholder "say on pay"
• Require securitizers to retain economic interest in assets they securitize
• Empower new CFPB as an independent office in FRB with broad new authorities and functions and responsibilities under wide range of current consumer financial protection laws
• Establish extensive requirements applicable to mortgage lending industry, including detailed requirements concerning mortgage originator compensation and underwriting, high cost mortgages, servicing, appraisals, counseling and other matters
• Preserve enforcement powers of states respecting financial institutions and restrict preemption of state laws by federal banking regulators.