BB&T 2014 Annual Report Download - page 18

Table of Contents
CFPB
The CFPB has broad rulemaking, supervisory and enforcement powers under various federal consumer financial protection laws, including the laws
referenced above, fair lending laws and certain other statutes. The CFPB has examination and primary enforcement authority with respect to depository
institutions with $10 billion or more in assets, their service providers and certain non-depository entities such as debt collectors and consumer reporting
agencies. The CFPB has authority to prevent unfair, deceptive or abusive practices in connection with the offering of consumer financial products. The Dodd-
Frank Act permits states to adopt consumer protection laws and standards that are more stringent than those adopted at the federal level and, in certain
circumstances, permits state attorneys general to enforce compliance with both the state and federal laws and regulations.
The CFPB has concentrated much of its rulemaking efforts on a variety of mortgage-related topics required under the Dodd-Frank Act, including mortgage
origination disclosures, minimum underwriting standards and ability to repay, high-cost mortgage lending, and servicing practices. The rules related to
ability to repay, qualified mortgage standards and mortgage servicing became effective in January 2014. The escrow and loan originator compensation rules
became effective during 2013. A final rule integrating disclosure required by the Truth in Lending Act and the Real Estate Settlement and Procedures Act
becomes effective August 1, 2015. As a result of these rules, BB&T transferred the management of certain home equity loans from direct retail lending within
the Community Banking segment to the Residential Mortgage Banking segment.
Interchange Fees
The FRB adopted rules establishing standards for assessing whether the interchange fees that may be charged with respect to certain electronic debit
transactions are “reasonable and proportional” to the costs incurred by issuers for such transactions. Interchange fees, or “swipe” fees, are charges that
merchants pay to BB&T and other card-issuing banks for processing electronic payment transactions.
During 2013, a U.S. Federal District Court judge ruled against the debit card interchange fee limits imposed by the FRB, resulting in the potential for further
reductions to these caps. During March 2014, the Washington, D.C. Circuit Court of Appeals overturned the 2013 lower court decision. During January 2015,
the U.S. Supreme Court declined to hear the case, which preserved the limits established by the FRB.
Privacy
Federal law currently contains extensive customer privacy protection provisions, including substantial customer privacy protections provided under the
Financial Services Modernization Act of 1999 (commonly known as the Gramm-Leach-Bliley Act). Under these provisions, a financial institution must
provide to its customers, at the inception of the customer relationship and annually thereafter, the institution’s policies and procedures regarding the
handling of customers’ nonpublic personal financial information. These provisions also provide that, except for certain limited exceptions, an institution
may not provide such personal information to unaffiliated third parties unless the institution discloses to the customer that such information may be so
provided and the customer is given the opportunity to opt out of such disclosure. Federal law makes it a criminal offense, except in limited circumstances, to
obtain or attempt to obtain customer information of a financial nature by fraudulent or deceptive means.
CRA
The CRA requires Branch Bank’s primary federal bank regulatory agency, the FDIC, to assess the bank’s record in meeting the credit needs of the
communities served by the bank, including low- and moderate-income neighborhoods and persons. Institutions are assigned one of four ratings:
“Outstanding,” “Satisfactory,” “Needs to Improve” or “Substantial Noncompliance.” This assessment is reviewed for any bank that applies to merge or
consolidate with or acquire the assets or assume the liabilities of an IDI, or to open or relocate a branch office. The CRA record of each subsidiary bank of a
FHC, such as BB&T, also is assessed by the FRB in connection with any acquisition or merger application.
17
Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.