Today we are pleased to welcome a guest poster to our blog. Roy Mitchell is Calyx Software’s product manager responsible for all compliance issues as well as management for Point®. Here’s what Roy has to say about the Dodd-Frank Act.
It is clear that the new law is going to have a big impact on the whole of the financial services industry over the next few years. For example, in a recent New York Times article an assessment by law firm of Polk Davis was quoted, in which they suggest “Federal agencies will decide the details of at least 243 financial rules and conduct 67 studies.” “The S.E.C. alone is responsible for developing 95 rules on topics like the trading of derivatives, standards for credit rating agencies and disclosure of executive bonuses. The Commodity Futures Trading Commission must develop 61 rules, the Federal Reserve has 54, and two brand new agencies just created by Congress — the new Consumer Financial Protection Bureau and the Financial Stability Oversight Council — have 80 rules between them.”
It is difficult at this point to assess the full impact on the mortgage industry until we see the regulatory agencies start to propose new rules, but one thing is for sure, a new combined RESPA/TIL disclosure is going to happen. In recent remarks by Treasury Secretary Timothy Giethner, discussing how the new Bureau of Consumer Financial Protection will implement the provision of the law he said, “one of the ways we intend to do that is by combining the two separate and inconsistent federal mortgage disclosure forms that consumers currently get. Next month, we’ll convene mortgage companies, consumer advocates, housing counselors and other experts to gather ideas on how to do that. We’ll take the best ones, test them on consumers, and then soon be able to unveil a new, easy to understand, federal disclosure form.”