Page 3 - August 2017

Agencies Propose Rule on Real Estate requires covered providers that are involved in an
Appraisals. arbitration pursuant to a pre-dispute arbitration
agreement to submit specified arbitral records to
The Board of Governors of the Federal Reserve CFPB and to submit specified court records. CFPB is
System (FRB), the Federal Deposit Insurance also adopting official interpretations to the regulation.
Corporation (FDIC), and the Office of the The rule is effective 09/18/2017, and compliance is
Comptroller of the Currency (OCC) have issued a mandatory for all agreements entered into on or after
proposed rule to amend the agencies’ regulations 03/19/2018. The final rule may be viewed at:
requiring appraisals of real estate for certain https://www.gpo.gov/fdsys/pkg/FR-2017-07-
transactions. The proposal would exempt commercial 19/pdf/2017-14225.pdf. Federal Register, Vo. 82,
real estate transactions of $400,000 or less from No. 137, 07/19/2017, 33210-33434.
appraisal requirements, raising the threshold from
$250,000. For commercial real estate transactions CFPB Finalizes Amendments to
with a value at or below the proposed threshold, the Supplemental Standard of Ethical
amended rule would require institutions to obtain an Conduct for Employees.
evaluation of the real property collateral that is
consistent with safe and sound banking practices if CFPB has issued a final rule amending the
the institution does not obtain an appraisal by a state Supplemental Standards of Ethical Conduct for
certified or licensed appraiser. Comments are due Employees of the Bureau of Consumer Financial
09/29/2017. The proposed rule may be viewed at: Protection involving: outside employment for
https://www.gpo.gov/fdsys/pkg/FR-2017-07- covered employees; CFPB employees’ ownership or
31/pdf/2017-15748.pdf. Federal Register, Vol. 82, control of certain securities; restrictions on seeking,
No. 145, 07/31/2017, 35478-35493. obtaining, or renegotiating credit or indebtedness;
disqualification requirements based on existing credit
CFPB Finalizes Rule on Arbitration or indebtedness; and restrictions on participating in
Agreements. matters involving covered entities. The final rule also
clarifies and makes minor revisions to certain
The Bureau of Consumer Financial Protection definitions. The final rule is effective 09/01/2017.
(CFPB) has issued a final rule to regulate arbitration The final rule may be viewed at:
agreements in contracts for specified consumer https://www.gpo.gov/fdsys/pkg/FR-2017-08-
financial products and services in the core consumer 02/pdf/2017-15597.pdf. Federal Register, Vol. 82,
financial markets of lending money, storing money, No. 147, 08/02/2017, 35883-35888.
and moving or exchanging money. First, the final
rule prohibits covered providers from using an CFPB Publishes in Federal Register Final
agreement with a consumer that provides for Amendments to TILA-RESPA Integrated
arbitration of any future dispute between the parties Disclosures.
to bar the consumer from filing or participating in a
class action concerning the covered consumer CFPB has issued a final rule modifying the Federal
financial product or service. Second, the final rule
mortgage disclosure requirements under the Truth in

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