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1.3.1 General

The Dodd-Frank Wall Street Reform and Consumer Protection Act128 contains a number of TILA changes, with varying effective dates. The Dodd-Frank Act’s default effective date of July 22, 2010 applies where another provision does not specify a different effective date.129 An effective date of July 21, 2011 applies to the Dodd-Frank Act’s title X TILA changes, including the increase of TILA’s scope from an amount financed of $25,000 to $50,000130 and the transfer of FRB rulemaking authority to the Consumer Financial Protection Bureau.131

TILA changes concerning mortgage loans and the increase in the statutory damage cap are found in the Dodd-Frank Act’s title XIV.132 Title XIV’s effective date is more complicated and in some cases unclear, as explained in the remainder of this section.

Whatever the effective date of a TILA amendment, the issue remains whether that change is effective only for new credit extended after that effective date, or whether the change also applies to TILA litigation after that effective date where the credit was extended prior to the effective date. In general, new substantive requirements will not have a retroactive effect,133 but the result may be different where the change relates only to procedure or remedies.134 Whether the increase in the cap on statutory damages should be retroactively applied is examined at § 11.6.3.2, infra, and whether the prohibition on mandatory arbitration as a forum in mortgage loan disputes should be applied retroactively is discussed at § 12.7.2, infra. The retroactive impact of the Dodd-Frank amendment lengthening the statute of limitations for HOEPA violations is discussed at § 9.6.12.2, infra.

Footnotes

  • 128 {125} Pub. L. No. 111-203, 124 Stat. 1376 (July 21, 2010).

  • 129 {126} Id. § 4.

  • 130 {127} The provision also increases the threshold from $50,000 each year due to inflation. See 76 Fed. Reg. 35,722 (June 20, 2011) (increasing threshold to $51,800 due to inflation, effective Jan. 1, 2012); 76 Fed. Reg. 18,354 (Apr. 4, 2011) (implementing new threshold for TILA); 76 Fed. Reg. 18,349 (Apr. 4, 2011) (implementing new threshold for Consumer Leasing Act).

  • 131 {128} Pub. L. No. 111-203, § 1100H, 124 Stat. 1376 (July 21, 2010).

    Section 1100H specifies an effective date for title X provisions as of the “designated transfer date.” 75 Fed. Reg. 57,252 (Sept. 20, 2010) sets the designated transfer date as of July 21, 2011. Title X includes Pub L. No. 111-203 §§ 1001–1100H, 124 Stat. 1955–2114.

  • 132 {129} Title XIV includes Pub. L. No. 111-203, §§ 1400–1498, 124 Stat 2136–2212.

  • 133 {130} See Fowler v. U.S. Bank, 2 F. Supp. 3d 965, 976 (S.D. Tex. 2014) (noting the presumption against retroactivity, especially for substantive protections, and holding that loan originator compensation provisions under the Dodd-Frank Act are not retroactive, although noting that the preexisting Federal Reserve regulations that are similar have an earlier effective date).

  • 134 See Zamora v. Wells Fargo Home Mortgage, 2012 WL 12895364 (D.N.M. Sept. 18, 2012) (holding that plaintiff’s claim under Dodd-Frank’s TILA amendment regarding prompt crediting of payments survives motion to dismiss where the loan payments in question were made after the statute itself became effective).