1) REGULATORY REFORM NOW LAW
The inevitable finally has occurred. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) was signed into law on July 21, 2010. The Act creates the most significant financial regulatory reforms since the Great Depression and will impact financial institutions and the regulatory process for years to come As we wade through the numerous provisions of the Act and as we receive questions from Bankers’ Compliance Group® members, this section of the BCG Monthly Newsletter will serve to highlight significant matters or areas of concern. More detailed analysis of specific provisions also will be addressed through the BCG Monthly Telephone Briefings, which always include handouts on the targeted topics. In fact, note that the BCG August Telephone Briefing (see below) will focus on corporate governance issues including reorganization of the federal banking and thrift regimes and securities provisions of the Act that are likely to impact many of our BCG members. (See the BCG website www.bankerscompliance group.com for more information on the August BCG Telephone Briefing.)

2) REGULATION Q REPEALED
A provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) signed into law on July 21, 2010 repeals the prohibition on payment of interest on demand deposits. For those institutions that are national banks or state-chartered banks that are members of the Federal Reserve, the prohibition of payment of interest on demand deposits is set forth in Regulation Q. Regulation Q also applies to any federal branch or agency of a foreign bank, or any state uninsured branch or agency of a foreign bank. (See 12 CFR 217.) For those institutions that are non-member banks or state or federal savings associations, regulations substantially similar to the requirements of Regulation Q are set forth in 12 CFR 329.2 of the FDIC regulations and 12 CFR 561.16 of the OTS regulations, respectively. Section 627 of the Act, which repeals the prohibition, provides that the effective date of the repeal is one year after the date of enactment of the Act, which should be July 21, 2011.

3) FINAL RULES ISSUED FOR SAFE ACT REGISTRATION OF MORTGAGE LOAN ORIGINATORS
It has finally happened. On July 28, 2010, the long awaited (and possibly anticipated) final rules were issued that mandate that employees of a financial institution who take and negotiate mortgage loan applications register as “mortgage loan originators” under the registration requirements set out in the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”). The SAFE Act applies to different types of financial institutions, including banks, savings associations and credit unions (“financial institution” or collectively “financial institutions”). The SAFE Act established a Nationwide Mortgage Licensing System and Registry (the Registry), a database to support registration of mortgage loan originators. (Note that the database has been used for some time now by states to license non-financial institution mortgage loan originators.)

4) CITY OF LOS ANGELES ESTABLISHES FORECLOSURE REGISTRY PROGRAM
Effective July 8, 2010, property that is undergoing foreclosure and that is located within the boundaries of the City of Los Angeles must be registered with the Los Angeles Housing Department (“LAHD”). Under an ordinance adopted by LA City Council (Ordinance No. 181185) the property must be registered with the LAHD within 30 days of issuing a Notice of Default (NOD). If the NOD was issued before July 8, 2010, then the lender, beneficiary or trustee with an interest in the deed of trust, has until August 7, 2010 to register the property.

• Reg Z Phase III Rules Issued
• Final Rules Issued For SAFE Act Registration of Mortgage Loan Originators
• City of Los Angeles Establishes Foreclosure Registry Program
• DFI, DOC Adopt Mortgage Loan Foreign Language Translation Form Under AB 1160
• HOEPA Points & Fees Threshold Increased
• Deposit Insurance Coverage Permanently Set at $250,000; New Official Sign
• FRB Issues Letter Providing More Guidance on Overdraft Fee Disclosure
• Justice Department Issues Final Rule Governing ATM Accessibility Standards
• Bill Modifies Certain Gift Card Requirements
• More.....