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Chapter 2 Textbook Updates and Corrections by SabeerAli1


									Real Estate Finance Textbook Updates and Corrections

Chapter 2

Page 37. The federal agency that charters savings banks and savings and loans is the Office of Thrift
Supervision (OTS ), not the Federal Housing Finance Board. Also note that the Federal Housing Finance
Board's functions were trans ferred to the Federal Housing Financ e Agency in 2008. California state
savings banks are chartered by the California Department of Financial Institutions. The OTS is the
primary supervisor of federally-chartered savings banks, savings and loans, and mutual savings banks
(collectively, the "thrifts"), as well as some state-chart ered thrifts. The Dodd-Frank Wall Street Reform
and Cons umer P rotection Act of 2010 will trans fer these functions of the OTS to the Office of Comptroller
of Currency.

Page 45. There is one small mutual savings bank operating in Northern California.

Page 48. The Dodd-Frank Wall Street Reform and Cons umer Protection Act of 2010 will trans fer the
functions of the OTS with respect to super vision of savings institutions and other thrifts to the Office of
Comptroller of Currency. All functions of the OTS with regard to supervision of savings and loan holding
companies will be transferred to the Federal Reserve. [§ 312] 90 days following trans fer of these
functions, the OTS will be abolished. [§ 313]

Pages 49-50. Federal Housing Finance Board. The Housing and Economic Recovery Act of 2008
created the Federal Housing Finance A gency, which combined the staffs of the Federal Housing Finance
Board with the Office of Federal Housing Enterprise Oversight and the GSE mission office at the
Department of Housing and Urban Development. The Federal Housing Finance Agency is the regulator
with authority to oversee the Federal Home Loan Banks and the country’s secondary mort gage market,
including Fannie Mae and Freddie Mac. The website for the Federal Housing Finance Agency is
The Offic e of Comptroller of Currency will take over functions of the OTS with respect to savings
associations (thrifts).
Cons umer Finance Protection Bureau. The Dodd-Frank bill establishes a new agency, the Consumer
Financial Protection Bureau (CFPB), as independent entity housed within FRB. The Dodd-Frank bill
assigns CFPB broad authority to write rules to protect consumers from unfair or deceptive financial
products, acts or practices. [§§ 1011, 1021-1022] The Dodd-Frank bill transfers to the CFPB
responsibility for major consumer protection laws including the Real Estate Settlement Act (RESPA),
Truth-in-Lending Act (TILA ), Home Ownership and Equity Protection Act (HOEPA), Home Mortgage
Disclosure Act (HMDA), Equal Credit Opportunity Act (ECOA);Fair Credit Reporting Act (FCRA); and Fair
Debt Collection P ractices Act. [§§ 1022, 1061] The CFPB will have authority to examine and enforce
regulatory compliance by many noninstitutional lenders, including those who offer or provide origination,
brokerage, or servicing of loans secured by real estate for us e by consumers primarily for personal,
family, or household purposes, or loan modific ation or foreclosure relief services in connection with such
loans. [§ 1024] There is an ex emption for real estate brokers who are providing services in connection
with a sale or lease of property, but not for real estate brokers who are providing financing transactions.
[§ 1027(b)] The CFPB also assumes regulatory authority over very large banks, savings banks, and credit
unions (those wit h assets over $10 billion) with respect to the consumer protection laws. [§ 1025]

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