August 27, 2014
Masthead 2

 
Contents:
CFPB Finalized International Money Transfer
Backoff Malware Strikes
ICBA Supports Raising CFPB Reporting Requirements
New-Home Sales Down 2.4 Percent in July


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CFPB Finalized International Money Transfer
The Consumer Financial Protection Bureau (CFPB)  finalized revisions to the remittance rule that it had  proposed in April of this year. Under the rule, remittance transfer providers are required to disclose certain third-party fees, as well as any exchange rate that will apply to the transfer. The rule also provides consumers with error resolution and cancellation rights.

The Dodd-Frank Wall Street Reform and Consumer Protection Act contains an exception that explicitly allows federally insured financial institutions, like banks and credit unions, to estimate third-party fees and exchange rates when providing remittance transfers to their account holders for which they cannot determine exact amounts. Insured institutions can only use this exception when they cannot determine the exact amounts for reasons beyond their control.

 

The exception was set to expire on July 21, 2015. Now, the final rule extends that temporary exception by five years, until July 21, 2020, as expressly authorized by the Dodd-Frank Act.  

 

The inability to know the exact fees and exchange rates is unique to insured institutions sending open-network transfers, like wire transfers. In an open network, the provider typically does not have control over, or a relationship with, all of the participants in the remittance transfer. This lack of control can make it difficult to learn all of the potential fees and, in some cases, the exchange rate. By contrast, closed-network providers send cash to recipients through agents, so they are typically able to control or know the transfer terms in advance. This allows them to disclose exact amounts to their customers. Closed-network providers are mostly nonbanks.

 

The CFPB is releasing a revised version of its compliance guide for the industry to reflect the changes finalized in today's rule.
Backoff Malware Strikes  
More than 1,000 U.S. businesses have been affected by  the Backoff point-of-sale malware campaign, according to federal law-enforcement agencies. The Department of Homeland Security issued the Secret Service estimate in an updated advisory.

DHS said malicious actors are using publicly available tools to locate businesses that use remote desktop applications, including Microsoft Remote Desktop and Apple Remote Desktop, to access consumer payment data.

DHS advised organizations that believe they have been affected to contact their local Secret Service field office.
ICBA Supports Raising CFPB Reporting  Requirements  
ICBA President and CEO Cam Fine  expressed strong support for legislation that would raise the threshold from $10 billion to $50 billion in assets for banks exempt from direct examination and reporting requirements by the Consumer Financial Protection Bureau.

The Consumer Financial Protection Bureau Examination and Reporting Threshold Act of 2014 (S. 2732) would enhance consumer protection by allowing the CFPB to concentrate on the larger financial institutions; focusing on the greatest threat to consumers; and making more effective use of their limited resources.  
New-Home Sales Down 2.4 Percent in July 
Sales of newly built, single-family homes fell 2.4 percent in July to a seasonally adjusted annual rate of 412,000 units, according to the  Commerce Department and HUD. New-home sales were up 12.3 percent from a year ago.

The median sales price was $269,800, and the average sales price was $339,100. The seasonally adjusted estimate of new houses for sale at the end of July was 205,000, a six-month supply at the current sales rate.
Wednesday, September 3, 2014                                

Clarifying Signature Card Confusion - Personal & Business Accounts: Compliance, Account Titling & Ownership
 
Monday, September 8, 2014                                

Managing Maturing HELOCs: New Interagency Guidance, Special Regulation Z Requirements & Compliance