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September 25-27, 2011 Hot Topics Roundtable: Preemption and CFPB Developments
Topics Covered
OCC Preemption Developments Revised AMTPA Preemption CFPB Developments Combined TILA/RESPA Disclosure CFPB Administrative-related Rulemakings Ex parte Presentations
The law would have a discriminatory effect on a national bank vis a vis a state-chartered bank; In accordance with the legal standard for preemption in Barnett Bank, the law prevents or significantly interferes with a national banks exercise of its powers; or The state consumer financial law is preempted by other federal law Note: Federal banking law on the charging of interest is not subject to this test
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The amendments add a specific reference to Barnett Bank, but not to the prevents or significantly interferes language in Section 1044
The amendments also delete the obstruct, impair, or condition language from prior Section 34.4(a), which lists categories of state laws that are inapplicable to a national bank
Section 1083 of Dodd-Frank amended 12 U.S.C. 3802(1) to limit the definition of an alternative mortgage transaction to a loan where the interest rate or finance charge maybe adjusted or renegotiated
Fixed-rate loans that were previously considered AMTs (e.g., a fixed-rate loan with an interestonly payment period or a neg am feature) are no longer AMTs
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Finally, Section 1083 amended 12 U.S.C. 3803(c) to limit AMTPA preemption to state laws that prohibit AMTs, and further provides that state laws that regulate mortgage transactions generally, including state law limits on PPPs and late fees, do not prohibit AMTs
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An ex parte presentation can include factual information provided at the CFPBs request The disclosure requirements apply to ex parte presentations that occur between the time a rule is proposed for public comment and the time the rule is finalized
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Within three days of an oral ex parte presentation, the party making the presentation must file to the applicable docket a memorandum summarizing the presentation and provide a copy to the CFPBs Executive Secretary and to all CFPB employees to whom the presentation was made Similar requirement applies to written ex parte presentations
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