Financial Industry Week In Review (August 19, 2013)

Financial Industry Developments

CFPBUpdate on Mortgage Regulation Exam Procedures

On August 15, the CFPB released a second update to its exam procedures in connection with mortgage regulations to cover: (i) ability-to-repay; (ii) qualified mortgages; (iii) high-cost mortgages; (iv) appraisals for higher-priced loans; and (v) amendments related to the escrows rule. CFPB Release. RESPA Exam Procedures. TILA Exam Procedures.

CFTCSwap Regulations

On August 13, the CFTC issued a final rule to exempt swaps entered into by qualified cooperatives from certain clearing requirements. The rule will be effective 30 days after publication in the Federal Register; however, the CFTC granted no-action relief to cover the interim period. CFTC Release. CFTC Final Rule. CFTC No-Action Letter.

FedAssessments on Large Financial Companies

On August 16, the Fed issued a final rule establishing annual assessment fees for its supervision and regulation of large financial companies (with $50 billion or more in total consolidated assets). Beginning with the 2013 assessment period, the Federal Reserve will notify each company of the amount of its assessment fee no later than June 30 of the year following the assessment period. Payments will be due by September 15. The final rule is effective on October 25. Fed Release. Fed Final Rule.

Rating Agency Developments

On August 15, Fitch released its rating criteria hierarchy. Fitch Report. On August 14, Fitch released its criteria for rating market value structures. Fitch Report.

On August 14, Fitch released its criteria for rating closed-end fund debt and preferred stock. Fitch Report.

On August 13, Fitch released its global bond fund rating criteria. Fitch Report.

On August 12, DBRS updated its methodology for rating Canadian structured finance transactions. DBRS Report.

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Asset Management

Disclosureand Compliance Matters for Investment Companies that Invest in Commodity Interests

The Staff of the Division of Investment Management of the SEC has published a Guidance Update with respect to Disclosure and Compliance Matters for Investment Company Registrants that Invest in Commodity Interests. Although this Guidance is directed primarily to investment companies registered under the Investment Company Act of 1940, it sets forth principles of general applicability to all investment fund and investment advisers. Among other things, the Guidance...