[House Report 113-345]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 113-345
======================================================================
RESPONSIBLE CONSUMER FINANCIAL PROTECTION REGULATIONS ACT OF 2013
_______
February 6, 2014.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hensarling, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 2446]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 2446) to replace the Director of the Bureau of
Consumer Financial Protection with a five person Commission,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Responsible Consumer Financial
Protection Regulations Act of 2013''.
SEC. 2. ESTABLISHMENT OF THE COMMISSION.
Section 1011 of the Consumer Financial Protection Act of 2010 is
amended--
(1) by striking subsections (b), (c), and (d);
(2) by redesignating subsection (e) as subsection (j); and
(3) by inserting after subsection (a) the following new
subsections:
``(b) Establishment of the Commission.--
``(1) In general.--There is hereby established a commission
(hereinafter referred to in this section as the `Commission')
that shall serve as the head of the Bureau.
``(2) Authority to prescribe regulations.--The Commission may
prescribe such regulations and issue such orders in accordance
with this title as the Commission may determine to be necessary
for carrying out this title and all other laws within the
Commission's jurisdiction and shall exercise any authorities
granted under this title and all other laws within the
Commission's jurisdiction.
``(c) Composition of the Commission.--
``(1) In general.--The Commission shall be composed of the
Vice Chairman for Supervision of the Federal Reserve System and
4 additional members who shall be appointed by the President,
by and with the advice and consent of the Senate, from among
individuals who--
``(A) are citizens of the United States; and
``(B) have strong competencies and experiences
related to consumer financial protection.
``(2) Staggering.--The members of the Commission appointed
under paragraph (1) shall serve staggered terms, which
initially shall be established by the President for terms of 1,
2, 4, and 5 years, respectively.
``(3) Terms.--
``(A) In general.--Each member of the Commission
appointed under paragraph (1), including the Chair,
shall serve for a term of 5 years.
``(B) Removal.--The President may remove any member
of the Commission appointed under paragraph (1).
``(C) Vacancies.--Any member of the Commission
appointed under paragraph (1) appointed to fill a
vacancy occurring before the expiration of the term to
which that member's predecessor was appointed
(including the Chair) shall be appointed only for the
remainder of the term.
``(D) Continuation of service.--Each member of the
Commission appointed under paragraph (1) may continue
to serve after the expiration of the term of office to
which that member was appointed until a successor has
been appointed by the President and confirmed by the
Senate, except that a member may not continue to serve
more than 1 year after the date on which that member's
term would otherwise expire.
``(E) Other employment prohibited.--No member of the
Commission appointed under paragraph (1) shall engage
in any other business, vocation, or employment.
``(d) Affiliation.--With respect to members appointed pursuant to
subsection (c)(1), not more than 2 shall be members of any one
political party.
``(e) Chair of the Commission.--
``(1) Appointment.--The Chair of the Commission shall be
appointed by the President from among the members of the
Commission appointed under subsection (c)(1).
``(2) Authority.--The Chair shall be the principal executive
officer of the Bureau, and shall exercise all of the executive
and administrative functions of the Bureau, including with
respect to--
``(A) the appointment and supervision of personnel
employed under the Bureau (other than personnel
employed regularly and full time in the immediate
offices of members of the Commission other than the
Chair);
``(B) the distribution of business among personnel
appointed and supervised by the Chair and among
administrative units of the Bureau; and
``(C) the use and expenditure of funds.
``(3) Limitation.--In carrying out any of the Chair's
functions under the provisions of this subsection the Chair
shall be governed by general policies of the Commission and by
such regulatory decisions, findings, and determinations as the
Commission may by law be authorized to make.
``(4) Requests or estimates related to appropriations.--
Requests or estimates for regular, supplemental, or deficiency
appropriations on behalf of the Commission may not be submitted
by the Chair without the prior approval of the Commission.
``(f) No Impairment by Reason of Vacancies.--No vacancy in the
members of the Commission shall impair the right of the remaining
members of the Commission to exercise all the powers of the Commission.
Three members of the Commission shall constitute a quorum for the
transaction of business, except that if there are only 3 members
serving on the Commission because of vacancies in the Commission, 2
members of the Commission shall constitute a quorum for the transaction
of business. If there are only 2 members serving on the Commission
because of vacancies in the Commission, 2 members shall constitute a
quorum for the 6-month period beginning on the date of the vacancy
which caused the number of Commission members to decline to 2.
``(g) Seal.--The Commission shall have an official seal.
``(h) Compensation.--
``(1) Chair.--The Chair shall receive compensation at the
rate prescribed for level I of the Executive Schedule under
section 5313 of title 5, United States Code.
``(2) Other members of the commission.--The 3 other members
of the Commission appointed under subsection (c)(1) shall each
receive compensation at the rate prescribed for level II of the
Executive Schedule under section 5314 of title 5, United States
Code.
``(i) Initial Quorum Established.--During any time period prior to
the confirmation of at least two members of the Commission, one member
of the Commission shall constitute a quorum for the transaction of
business. Following the confirmation of at least 2 additional
commissioners, the quorum requirements of subsection (f) shall
apply.''.
SEC. 3. CONFORMING AMENDMENTS.
(a) Consumer Financial Protection Act of 2010.--
(1) In general.--Except as provided under paragraph (2), the
Consumer Financial Protection Act of 2010 is amended--
(A) by striking ``Director of the'' each place such
term appears, other than where such term is used to
refer to a Director other than the Director of the
Bureau of Consumer Financial Protection;
(B) by striking ``Director'' each place such term
appears and inserting ``Bureau'', other than where such
term is used to refer to a Director other than the
Director of the Bureau of Consumer Financial
Protection; and
(C) in section 1002, by striking paragraph (10).
(2) Exceptions.--The Consumer Financial Protection Act of
2010 is amended--
(A) in section 1012(c)(4), by striking ``Director''
each place such term appears and inserting ``Commission
of the Bureau'';
(B) in section 1013(c)(3)--
(i) by striking ``Assistant Director of the
Bureau for'' and inserting ``Head of the Office
of''; and
(ii) in subparagraph (B), by striking
``Assistant Director'' and inserting ``Head of
the Office'';
(C) in section 1013(g)(2)--
(i) by striking ``Assistant director'' and
inserting ``Head of the office''; and
(ii) by striking ``an assistant director''
and inserting ``a Head of the Office of
Financial Protection for Older Americans'';
(D) in section 1016(a), by striking ``Director of the
Bureau'' and inserting ``Chair of the Commission''; and
(E) in section 1066(a), by striking ``Director of the
Bureau is'' and inserting ``first member of the
Commission is''.
(b) Dodd-Frank Wall Street Reform and Consumer Protection Act.--The
Dodd-Frank Wall Street Reform and Consumer Protection Act is amended--
(1) in section 111(b)(1)(D), by striking ``Director'' and
inserting ``Chair of the Commission''; and
(2) in section 1447, by striking ``Director of the Bureau''
each place such term appears and inserting ``Bureau''.
(c) Electronic Fund Transfer Act.--Section 920(a)(4)(C) of the
Electronic Fund Transfer Act, as added by section 1075(a)(2) of the
Consumer Financial Protection Act of 2010, is amended by striking
``Director of the Bureau of Consumer Financial Protection'' and
inserting ``Bureau of Consumer Financial Protection''.
(d) Expedited Funds Availability Act.--The Expedited Funds
Availability Act, as amended by section 1086 of the Consumer Financial
Protection Act of 2010, is amended by striking ``Director of the
Bureau'' each place such term appears and inserting ``Bureau''.
(e) Federal Deposit Insurance Act.--Section 2 of the Federal Deposit
Insurance Act, as amended by section 336(a) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, is amended by striking
``Director of the Consumer Financial Protection Bureau'' each place
such term appears and inserting ``Chair of the Commission of the Bureau
of Consumer Financial Protection''.
(f) Federal Financial Institutions Examination Council Act of 1978.--
Section 1004(a)(4) of the Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3303(a)(4)), as amended by section 1091
of the Consumer Financial Protection Act of 2010, is amended by
striking ``Director of the Consumer Financial Protection Bureau'' and
inserting ``Chair of the Commission of the Bureau of Consumer Financial
Protection''.
(g) Financial Literacy and Education Improvement Act.--Section 513 of
the Financial Literacy and Education Improvement Act, as amended by
section 1013(d)(5) of the Consumer Financial Protection Act of 2010, is
amended by striking ``Director'' each place such term appears and
inserting ``Chair of the Commission''.
(h) Home Mortgage Disclosure Act of 1975.--Section 307 of the Home
Mortgage Disclosure Act of 1975, as amended by section 1094(6) of the
Consumer Financial Protection Act of 2010, is amended by striking
``Director of the Bureau of Consumer Financial Protection'' each place
such term appears and inserting ``Bureau of Consumer Financial
Protection''.
(i) Interstate Land Sales Full Disclosure Act.--The Interstate Land
Sales Full Disclosure Act, as amended by section 1098A of the Consumer
Financial Protection Act of 2010, is amended--
(1) by amending section 1402(1) to read as follows:
``(1) `Chair' means the Chair of the Commission of the Bureau
of Consumer Financial Protection;''; and
(2) in section 1416(a), by striking ``Director of the Bureau
of Consumer Financial Protection'' and inserting ``Chair''.
(j) Real Estate Settlement Procedures Act of 1974.--Section 5 of the
Real Estate Settlement Procedures Act of 1974, as amended by section
1450 of the Dodd-Frank Wall Street Reform and Consumer Protection Act,
is amended--
(1) by striking ``The Director of the Bureau of Consumer
Financial Protection (hereafter in this section referred to as
the `Director')'' and inserting ``The Bureau of Consumer
Financial Protection''; and
(2) by striking ``Director'' each place such term appears and
inserting ``Bureau''.
(k) S.A.F.E. Mortgage Licensing Act of 2008.--The S.A.F.E. Mortgage
Licensing Act of 2008, as amended by section 1100 of the Consumer
Financial Protection Act of 2010, is amended--
(1) by striking ``Director'' each place such term appears in
headings and text, other than where such term is used in the
context of the Director of the Office of Thrift Supervision,
and inserting ``Bureau''; and
(2) in section 1503, by striking paragraph (10).
(l) Title 44, United States Code.--Section 3513(c) of title 44,
United States Code, as amended by section 1100D(b) of the Consumer
Financial Protection Act of 2010, is amended by striking ``Director of
the Bureau'' and inserting ``Bureau''.
Purpose and Summary
H.R. 2446, the Responsible Consumer Financial Protection
Regulations Act of 2013, amends the Dodd-Frank Wall Street
Reform and Consumer Protection Act (the ``Dodd-Frank Act'') to
promote greater accountability and transparency at the Consumer
Financial Protection Bureau (CFPB). It achieves this objective
by replacing the single director of the CFPB with a commission,
similar to the structure of other federal agencies charged with
consumer or investor protection.
Background and Need for Legislation
The CFPB is currently governed by a single director in whom
all the CFPB's legal authority rests and on whose authority
there are few, if any, meaningful checks and balances. Other
financial regulatory agencies, in contrast, are typically
governed by boards or commissions (among others, the Securities
and Exchange Commission, the Federal Trade Commission, the
Board of Governors of the Federal Reserve, and the Federal
Deposit Insurance Corporation). Governance by a bipartisan
board or commission is beneficial because it permits the
discussion of various viewpoints and draws from the collective
wisdom of the board rather than the edicts of a single
director.
Under this legislation, the single director who currently
has sole authority for carrying out the CFPB's mission would be
replaced by a Commission comprised of the Fed's Vice Chair for
Supervision and four members appointed by the President, with
the advice and consent of the Senate. Commission members must
be U.S. citizens and have strong competencies and experiences
related to consumer financial protection. The appointed members
of the Commission shall serve five-year, staggered terms. Not
more than two appointed Commission members shall be members of
any one political party.
The Chair of the Commission will be appointed by the
President from among the four appointed Commission members. The
Chair will exercise all the CFPB's executive and administrative
functions. The Chair will, however, be governed by the general
policies, findings, and determinations of the Commission in
carrying out his or her duties.
The Chair of the Commission shall be compensated at level I
of the Executive Schedule ($199,700) and other appointed
Commission members shall be compensated at level II of the
Executive Schedule ($179,700).
Hearings
The Committee on Financial Services' Subcommittee on
Financial Institutions and Consumer Credit held a hearing on
H.R. 2446 on October 29, 2013.
Committee Consideration
The Committee on Financial Services met in open session on
November 20, 2013, and ordered H.R. 2446 to be reported
favorably to the House with an amendment by a recorded vote of
31 yeas to 21 nays (recorded vote no. FC-40), a quorum being
present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
1. A motion by Chairman Hensarling to report the bill (H.R.
2446) with an amendment to the House with a favorable
recommendation was agreed to by a record vote of 31 yeas to 21
nays (recorded vote no. FC-40).
RECORD VOTE NO. FC-40
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Hensarling................. X ........ ......... Ms. Waters....... ........ X .........
Mr. Bachus..................... X ........ ......... Mrs. Maloney (NY) ........ X .........
Mr. King (NY).................. X ........ ......... Ms. Velazquez.... ........ X .........
Mr. Royce...................... X ........ ......... Mr. Watt......... ........ X .........
Mr. Lucas...................... X ........ ......... Mr. Sherman...... ........ ........ .........
Mr. Gary G. Miller (CA)........ X ........ ......... Mr. Meeks........ ........ ........ .........
Mrs. Capito.................... X ........ ......... Mr. Capuano...... ........ X .........
Mr. Garrett.................... X ........ ......... Mr. Hinojosa..... ........ X .........
Mr. Neugebauer................. X ........ ......... Mr. Clay......... ........ ........ .........
Mr. McHenry.................... X ........ ......... Mrs. McCarthy ........ ........ .........
(NY).
Mr. Campbell................... ........ ........ ......... Mr. Lynch........ ........ X .........
Mrs. Bachmann.................. X ........ ......... Mr. David Scott ........ X .........
(GA).
Mr. McCarthy (CA).............. X ........ ......... Mr. Al Green (TX) ........ ........ .........
Mr. Pearce..................... X ........ ......... Mr. Cleaver...... ........ X .........
Mr. Posey...................... ........ ........ ......... Ms. Moore........ ........ X .........
Mr. Fitzpatrick................ X ........ ......... Mr. Ellison...... ........ X .........
Mr. Westmoreland............... X ........ ......... Mr. Perlmutter... ........ ........ .........
Mr. Luetkemeyer................ X ........ ......... Mr. Himes........ ........ X .........
Mr. Huizenga (MI).............. X ........ ......... Mr. Peters (MI).. ........ X .........
Mr. Duffy...................... X ........ ......... Mr. Carney....... ........ X .........
Mr. Hurt....................... X ........ ......... Ms. Sewell (AL).. ........ X .........
Mr. Grimm...................... X ........ ......... Mr. Foster....... ........ X .........
Mr. Stivers.................... X ........ ......... Mr. Kildee....... ........ ........ .........
Mr. Fincher.................... X ........ ......... Mr. Murphy (FL).. ........ X .........
Mr. Stutzman................... X ........ ......... Mr. Delaney...... ........ X .........
Mr. Mulvaney................... X ........ ......... Ms. Sinema....... ........ X .........
Mr. Hultgren................... X ........ ......... Mrs. Beatty...... ........ X .........
Mr. Ross....................... X ........ ......... Mr. Heck (WA).... ........ X .........
Mr. Pittenger.................. X ........ .........
Mrs. Wagner.................... X ........ .........
Mr. Barr....................... X ........ .........
Mr. Cotton..................... X ........ .........
Mr. Rothfus.................... X ........ .........
----------------------------------------------------------------------------------------------------------------
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held hearings and
made findings that are reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee states that H.R. 2446,
among other things, replaces the single director of the CFPB
with a commission structure of governance.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 6, 2014.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2446, the
Responsible Consumer Financial Protection Regulations Act of
2013.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2446--Responsible Consumer Financial Protection Regulations Act of
2013
Summary: H.R. 2446 would replace the Director of the
Consumer Financial Protection Bureau (CFPB) with a commission
made up of a chairman and four additional members appointed by
the President and confirmed by the Senate. The commission would
be responsible for developing regulations to carry out the laws
that fall within the jurisdiction of the CFPB.
Based on information from the CFPB, CBO estimates that
enacting H.R. 2446 would increase direct spending by $74
million over the 2014-2024 period. Because the bill would
affect direct spending, pay-as-you-go procedures apply. CBO
estimates that enacting the bill would not affect revenues and
that implementing H.R. 2446 would not affect spending subject
to appropriation.
H.R. 2446 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2446 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-2019 2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority........................... 2 7 7 7 7 7 7 8 8 8 8 37 75
Estimated Outlays.................................... * 7 7 7 7 7 7 8 8 8 8 35 74
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding; * = less than $500,000.
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted near the middle of fiscal year 2014, that
the new commissioners will be confirmed by the end of the
fiscal year, and that spending will follow historical patterns
for the CFPB. The CFPB is permanently authorized to spend
amounts transferred from the Federal Reserve; because that
activity is not subject to appropriation, CFPB expenditures are
recorded in the budget as direct spending.
H.R. 2446 would replace the director and deputy director of
the CFPB with a five-member commission. Based on information
from the CFPB and agencies with similar organizational
structures, CBO estimates that the agency would eventually hire
an additional 40 employees to provide legal, research, and
administrative support to the five commissioners and dismiss
the agency director and deputy director. CBO estimates that
additional costs for salaries, benefits, and overhead for the
new positions would total about $7 million a year. In the next
few years, the CFBP will spend about $450 million a year under
current law to carry out all of its activities, CBO estimates.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATES OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2446, AS ORDERED BY THE HOUSE COMMITEE ON FINANCIAL SERVICES ON NOVEMBER 21, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-2019 2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 7 7 7 7 7 7 8 8 8 8 35 74
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 2446
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs: Susan Willie; Impact
on state, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Paige Piper/Bach.
Estimate approved by: Theresa Gullo; Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of the section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
H.R. 2446 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Duplication of Federal Programs
Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013),
the Committee states that no provision of H.R. 2446 establishes
or reauthorizes a program of the Federal Government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013),
the Committee states that H.R. 2446 does not direct any
rulemaking.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section cites H.R. 2446 as the ``Responsible Consumer
Financial Protection Regulations Act of 2013.''
Section 2. Establishment of the commission
This section establishes a commission to serve as the head
of the CFPB, endows the commission with authority to carry out
its statutory mission, fixes the number and qualifications of
members to serve on the commission, prescribes the appointment
and authorities of the chair of the commission, and sets out
other attendant characteristics and authorities of the
commission.
Section 3. Conforming amendments
This section makes technical and conforming amendments to
Federal law consistent with the substantive amendments made by
section 2.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
SEC. 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Dodd-Frank
Wall Street Reform and Consumer Protection Act''.
* * * * * * *
TITLE I--FINANCIAL STABILITY
* * * * * * *
Subtitle A--Financial Stability Oversight Council
SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.
(a) * * *
(b) Membership.--The Council shall consist of the following
members:
(1) Voting members.--The voting members, who shall
each have 1 vote on the Council shall be--
(A) * * * the Secretary of the Treasury, who
shall serve as Chairperson of the Council;
* * * * * * *
(D) the [Director] Chair of the Commission of
the Bureau;
* * * * * * *
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Consumer Financial
Protection Act of 2010''.
SEC. 1002. DEFINITIONS.
Except as otherwise provided in this title, for purposes of
this title, the following definitions shall apply:
(1) * * *
* * * * * * *
[(10) Director.--The term ``Director '' means the
Director of the Bureau.]
* * * * * * *
Subtitle A--Bureau of Consumer Financial Protection
SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINANCIAL
PROTECTION.
(a) * * *
[(b) Director and Deputy Director.--
[(1) In general.--There is established the position
of the Director who shall serve as the head of the
Bureau.
[(2) Appointment.--Subject to paragraph (3), the
Director shall be appointed by the President, by and
with the advice and consent of the Senate.
[(3) Qualification.--The President shall nominate the
Director from among individuals who are citizens of the
United States.
[(4) Compensation.--The Director shall be compensated
at the rate prescribed for level II of the Executive
Schedule under section 5313 of title 5, United States
Code.
[(5) Deputy director.--There is established the
position of Deputy Director, who shall--
[(A) be appointed by the Director; and
[(B) serve as acting Director in the absence
or unavailability of the Director.
[(c) Term.--
[(1) In general.--The Director shall serve for a term
of 5 years.
[(2) Expiration of term.--An individual may serve as
Director after the expiration of the term for which
appointed, until a successor has been appointed and
qualified.
[(3) Removal for cause.--The President may remove the
Director for inefficiency, neglect of duty, or
malfeasance in office.
[(d) Service Restriction.--No Director or Deputy Director may
hold any office, position, or employment in any Federal reserve
bank, Federal home loan bank, covered person, or service
provider during the period of service of such person as
Director or Deputy Director.]
(b) Establishment of the Commission.--
(1) In general.--There is hereby established a
commission (hereinafter referred to in this section as
the ``Commission'') that shall serve as the head of the
Bureau.
(2) Authority to prescribe regulations.--The
Commission may prescribe such regulations and issue
such orders in accordance with this title as the
Commission may determine to be necessary for carrying
out this title and all other laws within the
Commission's jurisdiction and shall exercise any
authorities granted under this title and all other laws
within the Commission's jurisdiction.
(c) Composition of the Commission.--
(1) In general.--The Commission shall be composed of
the Vice Chairman for Supervision of the Federal
Reserve System and 4 additional members who shall be
appointed by the President, by and with the advice and
consent of the Senate, from among individuals who--
(A) are citizens of the United States; and
(B) have strong competencies and experiences
related to consumer financial protection.
(2) Staggering.--The members of the Commission
appointed under paragraph (1) shall serve staggered
terms, which initially shall be established by the
President for terms of 1, 2, 4, and 5 years,
respectively.
(3) Terms.--
(A) In general.--Each member of the
Commission appointed under paragraph (1),
including the Chair, shall serve for a term of
5 years.
(B) Removal.--The President may remove any
member of the Commission appointed under
paragraph (1).
(C) Vacancies.--Any member of the Commission
appointed under paragraph (1) appointed to fill
a vacancy occurring before the expiration of
the term to which that member's predecessor was
appointed (including the Chair) shall be
appointed only for the remainder of the term.
(D) Continuation of service.--Each member of
the Commission appointed under paragraph (1)
may continue to serve after the expiration of
the term of office to which that member was
appointed until a successor has been appointed
by the President and confirmed by the Senate,
except that a member may not continue to serve
more than 1 year after the date on which that
member's term would otherwise expire.
(E) Other employment prohibited.--No member
of the Commission appointed under paragraph (1)
shall engage in any other business, vocation,
or employment.
(d) Affiliation.--With respect to members appointed pursuant
to subsection (c)(1), not more than 2 shall be members of any
one political party.
(e) Chair of the Commission.--
(1) Appointment.--The Chair of the Commission shall
be appointed by the President from among the members of
the Commission appointed under subsection (c)(1).
(2) Authority.--The Chair shall be the principal
executive officer of the Bureau, and shall exercise all
of the executive and administrative functions of the
Bureau, including with respect to--
(A) the appointment and supervision of
personnel employed under the Bureau (other than
personnel employed regularly and full time in
the immediate offices of members of the
Commission other than the Chair);
(B) the distribution of business among
personnel appointed and supervised by the Chair
and among administrative units of the Bureau;
and
(C) the use and expenditure of funds.
(3) Limitation.--In carrying out any of the Chair's
functions under the provisions of this subsection the
Chair shall be governed by general policies of the
Commission and by such regulatory decisions, findings,
and determinations as the Commission may by law be
authorized to make.
(4) Requests or estimates related to
appropriations.--Requests or estimates for regular,
supplemental, or deficiency appropriations on behalf of
the Commission may not be submitted by the Chair
without the prior approval of the Commission.
(f) No Impairment by Reason of Vacancies.--No vacancy in the
members of the Commission shall impair the right of the
remaining members of the Commission to exercise all the powers
of the Commission. Three members of the Commission shall
constitute a quorum for the transaction of business, except
that if there are only 3 members serving on the Commission
because of vacancies in the Commission, 2 members of the
Commission shall constitute a quorum for the transaction of
business. If there are only 2 members serving on the Commission
because of vacancies in the Commission, 2 members shall
constitute a quorum for the 6-month period beginning on the
date of the vacancy which caused the number of Commission
members to decline to 2.
(g) Seal.--The Commission shall have an official seal.
(h) Compensation.--
(1) Chair.--The Chair shall receive compensation at
the rate prescribed for level I of the Executive
Schedule under section 5313 of title 5, United States
Code.
(2) Other members of the commission.--The 3 other
members of the Commission appointed under subsection
(c)(1) shall each receive compensation at the rate
prescribed for level II of the Executive Schedule under
section 5314 of title 5, United States Code.
(i) Initial Quorum Established.--During any time period prior
to the confirmation of at least two members of the Commission,
one member of the Commission shall constitute a quorum for the
transaction of business. Following the confirmation of at least
2 additional commissioners, the quorum requirements of
subsection (f) shall apply.
[(e)] (j) Offices.--The principal office of the Bureau shall
be in the District of Columbia. The [Director] Bureau may
establish regional offices of the Bureau, including in cities
in which the Federal reserve banks, or branches of such banks,
are located, in order to carry out the responsibilities
assigned to the Bureau under the Federal consumer financial
laws.
SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS.
(a) Powers of the Bureau.--The Bureau is authorized to
establish the general policies of the Bureau with respect to
all executive and administrative functions, including--
(1) * * *
* * * * * * *
(8) the distribution of business among personnel
appointed and supervised by the [Director] Bureau and
among administrative units of the Bureau;
* * * * * * *
(b) Delegation of Authority.--The [Director of the] Bureau
may delegate to any duly authorized employee, representative,
or agent any power vested in the Bureau by law.
(c) Autonomy of the Bureau.--
(1) * * *
(2) Autonomy.--Notwithstanding the authorities
granted to the Board of Governors under the Federal
Reserve Act, the Board of Governors may not--
(A) intervene in any matter or proceeding
before the [Director] Bureau, including
examinations or enforcement actions, unless
otherwise specifically provided by law;
* * * * * * *
(4) Recommendations and testimony.--No officer or
agency of the United States shall have any authority to
require the [Director] Commission of the Bureau or any
other officer of the Bureau to submit legislative
recommendations, or testimony or comments on
legislation, to any officer or agency of the United
States for approval, comments, or review prior to the
submission of such recommendations, testimony, or
comments to the Congress, if such recommendations,
testimony, or comments to the Congress include a
statement indicating that the views expressed therein
are those of the [Director] Commission of the Bureau or
such officer, and do not necessarily reflect the views
of the Board of Governors or the President.
* * * * * * *
SEC. 1013. ADMINISTRATION.
(a) Personnel.--
(1) Appointment.--
(A) In general.--The [Director] Bureau may
fix the number of, and appoint and direct, all
employees of the Bureau, in accordance with the
applicable provisions of title 5, United States
Code.
(B) Employees of the bureau.--The [Director]
Bureau is authorized to employ attorneys,
compliance examiners, compliance supervision
analysts, economists, statisticians, and other
employees as may be deemed necessary to conduct
the business of the Bureau. Unless otherwise
provided expressly by law, any individual
appointed under this section shall be an
employee as defined in section 2105 of title 5,
United States Code, and subject to the
provisions of such title and other laws
generally applicable to the employees of an
Executive agency.
(C) Waiver authority.--
(i) In general.--In making any
appointment under subparagraph (A), the
[Director] Bureau may waive the
requirements of chapter 33 of title 5,
United States Code, and the regulations
implementing such chapter, to the
extent necessary to appoint employees
on terms and conditions that are
consistent with those set forth in
section 11(1) of the Federal Reserve
Act (12 U.S.C. 248(1)), while providing
for--
(I) * * *
* * * * * * *
(ii) Veterans preferences.--In
implementing this subparagraph, the
[Director] Bureau shall comply with the
provisions of section 2302(b)(11),
regarding veterans' preference
requirements, in a manner consistent
with that in which such provisions are
applied under chapter 33 of title 5,
United States Code. The authority under
this subparagraph to waive the
requirements of that chapter 33 shall
expire 5 years after the date of
enactment of this Act.
(2) Compensation.--Notwithstanding any otherwise
applicable provision of title 5, United States Code,
concerning compensation, including the provisions of
chapter 51 and chapter 53, the following provisions
shall apply with respect to employees of the Bureau:
(A) The rates of basic pay for all employees
of the Bureau may be set and adjusted by the
[Director] Bureau.
(B) The [Director] Bureau shall at all times
provide compensation (including benefits) to
each class of employees that, at a minimum, are
comparable to the compensation and benefits
then being provided by the Board of Governors
for the corresponding class of employees.
* * * * * * *
(b) Specific Functional Units.--
(1) Research.--The [Director] Bureau shall establish
a unit whose functions shall include researching,
analyzing, and reporting on--
(A) * * *
* * * * * * *
(2) Community affairs.--The [Director] Bureau shall
establish a unit whose functions shall include
providing information, guidance, and technical
assistance regarding the offering and provision of
consumer financial products or services to
traditionally underserved consumers and communities.
(3) Collecting and tracking complaints.--
(A) In general.--The [Director] Bureau shall
establish a unit whose functions shall include
establishing a single, toll-free telephone
number, a website, and a database or utilizing
an existing database to facilitate the
centralized collection of, monitoring of, and
response to consumer complaints regarding
consumer financial products or services. The
[Director] Bureau shall coordinate with the
Federal Trade Commission or other Federal
agencies to route complaints to such agencies,
where appropriate.
* * * * * * *
(C) Reports to the congress.--The [Director]
Bureau shall present an annual report to
Congress not later than March 31 of each year
on the complaints received by the Bureau in the
prior year regarding consumer financial
products and services. Such report shall
include information and analysis about
complaint numbers, complaint types, and, where
applicable, information about resolution of
complaints.
* * * * * * *
(c) Office of Fair Lending and Equal Opportunity.--
(1) Establishment.--The [Director] Bureau shall
establish within the Bureau the Office of Fair Lending
and Equal Opportunity.
(2) Functions.--The Office of Fair Lending and Equal
Opportunity shall have such powers and duties as the
[Director] Bureau may delegate to the Office,
including--
(A) * * *
* * * * * * *
(3) Administration of office.--There is established
the position of [Assistant Director of the Bureau for]
Head of the Office of Fair Lending and Equal
Opportunity, who--
(A) shall be appointed by the [Director]
Bureau; and
(B) shall carry out such duties as the
[Director] Bureau may delegate to such
[Assistant Director] Head of the Office.
(d) Office of Financial Education.--
(1) Establishment.--The [Director] Bureau shall
establish an Office of Financial Education, which shall
be responsible for developing and implementing
initiatives intended to educate and empower consumers
to make better informed financial decisions.
* * * * * * *
(3) Coordination.--The Office of Financial Education
shall coordinate with other units within the Bureau in
carrying out its functions, including--
(A) * * *
(B) working with the research unit
established by the [Director] Bureau to conduct
research related to consumer financial
education and counseling.
(4) Report.--Not later than 24 months after the
designated transfer date, and annually thereafter, the
[Director] Bureau shall submit a report on its
financial literacy activities and strategy to improve
financial literacy of consumers to--
(A) * * *
* * * * * * *
(e) Office of Service Member Affairs.--
(1) In general.--The [Director] Bureau shall
establish an Office of Service Member Affairs, which
shall be responsible for developing and implementing
initiatives for service members and their families
intended to--
(A) * * *
* * * * * * *
(2) Coordination.--
(A) Regional services.--The [Director] Bureau
is authorized to assign employees of the Bureau
as may be deemed necessary to conduct the
business of the Office of Service Member
Affairs, including by establishing and
maintaining the functions of the Office in
regional offices of the Bureau located near
military bases, military treatment facilities,
or other similar military facilities.
(B) Agreements.--The [Director] Bureau is
authorized to enter into memoranda of
understanding and similar agreements with the
Department of Defense, including any branch or
agency as authorized by the department, in
order to carry out the business of the Office
of Service Member Affairs.
* * * * * * *
(g) Office of Financial Protection for Older Americans.--
(1) Establishment.--Before the end of the 180-day
period beginning on the designated transfer date, the
[Director] Bureau shall establish the Office of
Financial Protection for Older Americans, the functions
of which shall include activities designed to
facilitate the financial literacy of individuals who
have attained the age of 62 years or more (in this
subsection, referred to as ``seniors'') on protection
from unfair, deceptive, and abusive practices and on
current and future financial choices, including through
the dissemination of materials to seniors on such
topics.
(2) [Assistant director] Head of the office.--The
Office of Financial Protection for Older Americans (in
this subsection referred to as the ``Office'') shall be
headed by [an assistant director] a Head of the Office
of Financial Protection for Older Americans.
* * * * * * *
SEC. 1014. CONSUMER ADVISORY BOARD.
(a) Establishment Required.--The [Director] Bureau shall
establish a Consumer Advisory Board to advise and consult with
the Bureau in the exercise of its functions under the Federal
consumer financial laws, and to provide information on emerging
practices in the consumer financial products or services
industry, including regional trends, concerns, and other
relevant information.
(b) Membership.--In appointing the members of the Consumer
Advisory Board, the [Director] Bureau shall seek to assemble
experts in consumer protection, financial services, community
development, fair lending and civil rights, and consumer
financial products or services and representatives of
depository institutions that primarily serve underserved
communities, and representatives of communities that have been
significantly impacted by higher-priced mortgage loans, and
seek representation of the interests of covered persons and
consumers, without regard to party affiliation. Not fewer than
6 members shall be appointed upon the recommendation of the
regional Federal Reserve Bank Presidents, on a rotating basis.
(c) Meetings.--The Consumer Advisory Board shall meet from
time to time at the call of the [Director] Bureau, but, at a
minimum, shall meet at least twice in each year.
(d) Compensation and Travel Expenses.--Members of the
Consumer Advisory Board who are not full-time employees of the
United States shall--
(1) be entitled to receive compensation at a rate
fixed by the [Director] Bureau while attending meetings
of the Consumer Advisory Board, including travel time;
and
* * * * * * *
SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.
(a) Appearances Before Congress.--The [Director of the
Bureau] Chair of the Commission shall appear before the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services and the Committee on
Energy and Commerce of the House of Representatives at semi-
annual hearings regarding the reports required under subsection
(b).
* * * * * * *
SEC. 1017. FUNDING; PENALTIES AND FINES.
(a) Transfer of Funds From Board Of Governors.--
(1) In general.--Each year (or quarter of such year),
beginning on the designated transfer date, and each
quarter thereafter, the Board of Governors shall
transfer to the Bureau from the combined earnings of
the Federal Reserve System, the amount determined by
the [Director] Bureau to be reasonably necessary to
carry out the authorities of the Bureau under Federal
consumer financial law, taking into account such other
sums made available to the Bureau from the preceding
year (or quarter of such year).
* * * * * * *
(4) Budget and financial management.--
(A) Financial operating plans and
forecasts.--The [Director] Bureau shall provide
to the Director of the Office of Management and
Budget copies of the financial operating plans
and forecasts of the [Director] Bureau, as
prepared by the [Director] Bureau in the
ordinary course of the operations of the
Bureau, and copies of the quarterly reports of
the financial condition and results of
operations of the Bureau, as prepared by the
[Director] Bureau in the ordinary course of the
operations of the Bureau.
* * * * * * *
(D) Assertion of internal controls.--The
[Director] Bureau shall provide to the
Comptroller General of the United States an
assertion as to the effectiveness of the
internal controls that apply to financial
reporting by the Bureau, using the standards
established in section 3512(c) of title 31,
United States Code.
(E) Rule of construction.--This subsection
may not be construed as implying any obligation
on the part of the [Director] Bureau to consult
with or obtain the consent or approval of the
Director of the Office of Management and Budget
with respect to any report, plan, forecast, or
other information referred to in subparagraph
(A) or any jurisdiction or oversight over the
affairs or operations of the Bureau.
* * * * * * *
(5) Audit of the bureau.--
(A) * * *
* * * * * * *
(C) Assistance and costs.--For the purpose of
conducting an audit under this subsection, the
Comptroller General may, in the discretion of
the Comptroller General, employ by contract,
without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5),
professional services of firms and
organizations of certified public accountants
for temporary periods or for special purposes.
Upon the request of the Comptroller General,
the [Director of the] Bureau shall transfer to
the Government Accountability Office from funds
available, the amount requested by the
Comptroller General to cover the full costs of
any audit and report conducted by the
Comptroller General. The Comptroller General
shall credit funds transferred to the account
established for salaries and expenses of the
Government Accountability Office, and such
amount shall be available upon receipt and
without fiscal year limitation to cover the
full costs of the audit and report.
* * * * * * *
(c) Use of Funds.--
(1) In general.--Funds obtained by, transferred to,
or credited to the Bureau Fund shall be immediately
available to the Bureau and under the control of the
[Director] Bureau, and shall remain available until
expended, to pay the expenses of the Bureau in carrying
out its duties and responsibilities. The compensation
of the [Director] Bureau and other employees of the
Bureau and all other expenses thereof may be paid from,
obtained by, transferred to, or credited to the Bureau
Fund under this section.
* * * * * * *
(e) Authorization of Appropriations; Annual Report.--
(1) Determination regarding need for appropriated
funds.--
(A) In general.--The [Director] Bureau is
authorized to determine that sums available to
the Bureau under this section will not be
sufficient to carry out the authorities of the
Bureau under Federal consumer financial law for
the upcoming year.
(B) Report required.--When making a
determination under subparagraph (A), the
[Director] Bureau shall prepare a report
regarding the funding of the Bureau, including
the assets and liabilities of the Bureau, and
the extent to which the funding needs of the
Bureau are anticipated to exceed the level of
the amount set forth in subsection (a)(2). The
[Director] Bureau shall submit the report to
the President and to the Committee on
Appropriations of the Senate and the Committee
on Appropriations of the House of
Representatives.
(2) Authorization of appropriations.--If the
[Director] Bureau makes the determination and submits
the report pursuant to paragraph (1), there are hereby
authorized to be appropriated to the Bureau, for the
purposes of carrying out the authorities granted in
Federal consumer financial law, $200,000,000 for each
of fiscal years 2010, 2011, 2012, 2013, and 2014.
* * * * * * *
(4) Annual report.--The [Director] Bureau shall
prepare and submit a report, on an annual basis, to the
Committee on Appropriations of the Senate and the
Committee on Appropriations of the House of
Representatives regarding the financial operating plans
and forecasts of the [Director] Bureau, the financial
condition and results of operations of the Bureau, and
the sources and application of funds of the Bureau,
including any funds appropriated in accordance with
this subsection.
* * * * * * *
Subtitle B--General Powers of the Bureau
SEC. 1022. RULEMAKING AUTHORITY.
(a) * * *
(b) Rulemaking, Orders, and Guidance.--
(1) General authority.--The [Director] Bureau may
prescribe rules and issue orders and guidance, as may
be necessary or appropriate to enable the Bureau to
administer and carry out the purposes and objectives of
the Federal consumer financial laws, and to prevent
evasions thereof.
* * * * * * *
SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED PERSONS.
(a) * * *
(b) Supervision.--
(1) * * *
* * * * * * *
(5) Preservation of authority.--Nothing in this title
may be construed as limiting the authority of the
[Director] Bureau to require reports from persons
described in subsection (a)(1), as permitted under
paragraph (1), regarding information owned or under the
control of such person, regardless of whether such
information is maintained, stored, or processed by
another person.
* * * * * * *
SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS ASSOCIATIONS, AND
CREDIT UNIONS.
(a) * * *
(b) Supervision.--
(1) * * *
* * * * * * *
(4) Preservation of authority.--Nothing in this title
may be construed as limiting the authority of the
[Director] Bureau to require reports from a person
described in subsection (a), as permitted under
paragraph (1), regarding information owned or under the
control of such person, regardless of whether such
information is maintained, stored, or processed by
another person.
* * * * * * *
SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND CREDIT UNIONS.
(a) * * *
(b) Reports.--The [Director] Bureau may require reports from
a person described in subsection (a), as necessary to support
the role of the Bureau in implementing Federal consumer
financial law, to support its examination activities under
subsection (c), and to assess and detect risks to consumers and
consumer financial markets.
(1) * * *
(2) Preservation of authority.--Nothing in this
subsection may be construed as limiting the authority
of the [Director] Bureau from requiring from a person
described in subsection (a), as permitted under
paragraph (1), information owned or under the control
of such person, regardless of whether such information
is maintained, stored, or processed by another person.
* * * * * * *
SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU; PRESERVATION OF
AUTHORITIES.
(a) * * *
* * * * * * *
(c) Exclusion for Manufactured Home Retailers and Modular
Home Retailers.--
(1) In general.--The [Director] Bureau may not
exercise any rulemaking, supervisory, enforcement, or
other authority over a person to the extent that--
(A) * * *
* * * * * * *
(l) Exclusion for Activities Relating to Charitable
Contributions.--
(1) In general.--The [Director] Bureau and the Bureau
may not exercise any rulemaking, supervisory,
enforcement, or other authority, including authority to
order penalties, over any activities related to the
solicitation or making of voluntary contributions to a
tax-exempt organization as recognized by the Internal
Revenue Service, by any agent, volunteer, or
representative of such organizations to the extent the
organization, agent, volunteer, or representative
thereof is soliciting or providing advice, information,
education, or instruction to any donor or potential
donor relating to a contribution to the organization.
* * * * * * *
Subtitle C--Specific Bureau Authorities
SEC. 1035. PRIVATE EDUCATION LOAN OMBUDSMAN.
(a) Establishment.--The Secretary, in consultation with the
[Director] Bureau, shall designate a Private Education Loan
Ombudsman (in this section referred to as the ``Ombudsman'')
within the Bureau, to provide timely assistance to borrowers of
private education loans.
(b) Public Information.--The Secretary and the [Director]
Bureau shall disseminate information about the availability and
functions of the Ombudsman to borrowers and potential
borrowers, as well as institutions of higher education,
lenders, guaranty agencies, loan servicers, and other
participants in private education student loan programs.
(c) Functions of Ombudsman.--The Ombudsman designated under
this subsection shall--
(1) in accordance with regulations of the [Director]
Bureau, receive, review, and attempt to resolve
informally complaints from borrowers of loans described
in subsection (a), including, as appropriate, attempts
to resolve such complaints in collaboration with the
Department of Education and with institutions of higher
education, lenders, guaranty agencies, loan servicers,
and other participants in private education loan
programs;
* * * * * * *
(4) make appropriate recommendations to the
[Director] Bureau, the Secretary, the Secretary of
Education, the Committee on Banking, Housing, and Urban
Affairs and the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on
Financial Services and the Committee on Education and
Labor of the House of Representatives.
* * * * * * *
Subtitle F--Transfer of Functions and Personnel; Transitional
Provisions
* * * * * * *
SEC. 1066. INTERIM AUTHORITY OF THE SECRETARY.
(a) In General.--The Secretary is authorized to perform the
functions of the Bureau under this subtitle until the [Director
of the Bureau is] first member of the Commission is confirmed
by the Senate in accordance with section 1011.
* * * * * * *
Subtitle G--Regulatory Improvements
* * * * * * *
SEC. 1079. REVIEW, REPORT, AND PROGRAM WITH RESPECT TO EXCHANGE
FACILITATORS.
(a) Review.--The [Director] Bureau shall review all Federal
laws and regulations relating to the protection of consumers
who use exchange facilitators for transactions primarily for
personal, family, or household purposes.
(b) Report.--Not later than 1 year after the designated
transfer date, the [Director] Bureau shall submit to Congress a
report describing--
(1) * * *
* * * * * * *
TITLE XIV--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT
* * * * * * *
Subtitle D--Office of Housing Counseling
* * * * * * *
SEC. 1447. DEFAULT AND FORECLOSURE DATABASE.
(a) Establishment.--The Secretary of Housing and Urban
Development and the [Director of the Bureau] Bureau, in
consultation with the Federal agencies responsible for
regulation of banking and financial institutions involved in
residential mortgage lending and servicing, shall establish and
maintain a database of information on foreclosures and defaults
on mortgage loans for one- to four-unit residential properties
and shall make such information publicly available, subject to
subsection (e).
* * * * * * *
(c) Requirements.--Information collected and made available
through the database shall include--
(1) * * *
* * * * * * *
(6) such other information as the Secretary of
Housing and Urban Development and the [Director of the
Bureau] Bureau consider appropriate.
* * * * * * *
(e) Privacy and Confidentiality.--In establishing and
maintaining the database described in subsection (a), the
Secretary of Housing and Urban Development and the [Director of
the Bureau] Bureau shall--
(1) * * *
* * * * * * *
----------
SECTION 920 OF THE ELECTRONIC FUND TRANSFER ACT
SEC. 920. REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS.
(a) Reasonable Interchange Transaction Fees for Electronic
Debit Transactions.--
(1) * * *
* * * * * * *
(4) Considerations; consultation.--In prescribing
regulations under paragraph (3)(A), the Board shall--
(A) * * *
* * * * * * *
(C) consult, as appropriate, with the
Comptroller of the Currency, the Board of
Directors of the Federal Deposit Insurance
Corporation, the Director of the Office of
Thrift Supervision, the National Credit Union
Administration Board, the Administrator of the
Small Business Administration, and the
[Director of the Bureau of Consumer Financial
Protection] Bureau of Consumer Financial
Protection.
* * * * * * *
----------
EXPEDITED FUNDS AVAILABILITY ACT
* * * * * * *
TITLE VI--EXPEDITED FUNDS AVAILABILITY
SEC. 601. SHORT TITLE.
This title may be cited as the ``Expedited Funds Availability
Act''.
* * * * * * *
SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES.
(a) * * *
* * * * * * *
(d) Time Period Adjustments.--
(1) Reduction generally.--Notwithstanding any other
provision of law, the Board, jointly with the [Director
of the Bureau] Bureau of Consumer Financial Protection,
shall, by regulation, reduce the time periods
established under subsections (b), (c), and (e) to as
short a time as possible and equal to the period of
time achievable under the improved check clearing
system for a receiving depository institution to
reasonably expect to learn of the nonpayment of most
items for each category of checks.
* * * * * * *
SEC. 604. SAFEGUARD EXCEPTIONS.
(a) New Accounts.--Notwithstanding section 603, in the case
of any account established at a depository institution by a new
depositor, the following provisions shall apply with respect to
any deposit in such account during the 30-day period (or such
shorter period as the Board, jointly with the [Director of the
Bureau] Bureau of Consumer Financial Protection, may establish)
beginning on the date such account is established--
(1) * * *
* * * * * * *
(b) Large or Redeposited Checks; Repeated Overdrafts.--The
Board, jointly with the [Director of the Bureau] Bureau of
Consumer Financial Protection, may, by regulation, establish
reasonable exceptions to any time limitation established under
subsection (a)(2), (b), (c), or (e) of section 603 for--
(1) * * *
* * * * * * *
(c) Reasonable Cause Exception.--
(1) In general.--In accordance with regulations which
the Board, jointly with the [Director of the Bureau]
Bureau of Consumer Financial Protection, shall
prescribe, subsections (a)(2), (b), (c), and (e) of
section 603 shall not apply with respect to any check
deposited in an account at a depository institution if
the receiving depository institution has reasonable
cause to believe that the check is uncollectible from
the originating depository institution. For purposes of
the preceding sentence, reasonable cause to believe
requires the existence of facts which would cause a
well-grounded belief in the mind of a reasonable
person. Such reasons shall be included in the notice
required under sub- section (f).
* * * * * * *
(d) Emergency Conditions.--Subject to such regulations as the
Board, jointly with the [Director of the Bureau] Bureau of
Consumer Financial Protection, may prescribe, subsections
(a)(2), (b), (c), and (e) of section 603 shall not apply to
funds deposited by check in any receiving depository
institution in the case of--
(1) * * *
* * * * * * *
if the receiving depository institution exercises such
diligence as the circumstances require.
(e) Prevention of Fraud Losses.--
(1) In general.--The Board, jointly with the
[Director of the Bureau] Bureau of Consumer Financial
Protection, may, by regulation or order, suspend the
applicability of this title, or any portion thereof, to
any classification of checks if the Board, jointly with
the [Director of the Bureau] Bureau of Consumer
Financial Protection, determines that--
(A) * * *
* * * * * * *
(3) Report to congress.--
(A) Notice of each suspension.--Within 10
days of prescribing any regulation or issuing
any order under paragraph (1), the Board,
jointly with the [Director of the Bureau]
Bureau of Consumer Financial Protection, shall
transmit a report of such action to the
Committee on Banking, Finance and Urban Affairs
of the House of Representatives and the
Committee on Banking, Housing, and Urban
Affairs of the Senate.
(B) Contents of report.--Each report under
subparagraph (A) shall contain--
(i) * * *
(ii) evidence considered by the
Board, jointly with the [Director of
the Bureau] Bureau of Consumer
Financial Protection, in making the
determination under paragraph (1) with
respect to such regulation or order;
and
* * * * * * *
(f) Notice of Exception; Availability Within Reasonable
Time.--
(1) In general.--If any exception contained in this
section (other than subsection (a)) applies with
respect to funds deposited in an account at a
depository institution--
(A) * * *
(B) except where other time periods are
specifically provided in this title, the
availability of the funds deposited shall be
governed by the policy of the receiving
depository institution, but shall not exceed a
reasonable period of time as determined by the
Board, jointly with the [Director of the
Bureau] Bureau of Consumer Financial
Protection.
(2) Time for notice.--The notice required under
paragraph (1)(A) with respect to a deposit to which an
exception contained in this section applies shall be
made by the time provided in the following
subparagraphs:
(A) * * *
* * * * * * *
(C) In the case of a deposit to which
subsection (d) or (e) applies, notice shall be
provided by the depository institution in
accordance with regulations of the Board,
jointly with the [Director of the Bureau]
Bureau of Consumer Financial Protection.
* * * * * * *
SEC. 605. DISCLOSURE OF FUNDS AVAILABILITY POLICIES.
(a) * * *
(b) Preprinted Deposit Slips.--All preprinted deposit slips
that a depository institution furnishes to its customers shall
contain a summary notice, as prescribed by the Board, jointly
with the [Director of the Bureau] Bureau of Consumer Financial
Protection, in regulations, that deposited items may not be
available for immediate withdrawal.
* * * * * * *
(d) Posting of Notice.--
(1) * * *
(2) General notice at automated teller machines.--In
the case of any automated teller machine at which any
funds are received for deposit in an account at any
depository institution, the Board, jointly with the
[Director of the Bureau] Bureau of Consumer Financial
Protection, shall prescribe, by regulations, that the
owner or operator of such automated teller machine
shall post or provide a general notice that funds
deposited in such machine may not be immediately
available for withdrawal.
* * * * * * *
(f) Model Disclosure Forms.--
(1) Prepared by board and bureau.--The Board, jointly
with the [Director of the Bureau] Bureau of Consumer
Financial Protection, shall publish model disclosure
forms and clauses for common transactions to facilitate
compliance with the disclosure requirements of this
section and to aid customers by utilizing readily
understandable language.
* * * * * * *
(3) Voluntary use.--Nothing in this title requires
the use of any such model form or clause prescribed by
the Board, jointly with the [Director of the Bureau]
Bureau of Consumer Financial Protection, under this
subsection.
(4) Notice and comment.--Model disclosure forms and
clauses shall be adopted by the Board, jointly with the
[Director of the Bureau] Bureau of Consumer Financial
Protection, only after notice duly given in the Federal
Register and an opportunity for public comment in
accordance with section 553 of title 5, United States
Code.
SEC. 609. REGULATIONS AND REPORTS BY BOARD.
(a) In General.--After notice and opportunity to submit
comment in accordance with section 553(c) of title 5, United
States Code, the Board, jointly with the [Director of the
Bureau] Bureau of Consumer Financial Protection, shall
prescribe regulations--
(1) * * *
* * * * * * *
(e) Consultations.--In prescribing regulations under
subsections (a) and (b), the Board and the [Director of the
Bureau] Bureau of Consumer Financial Protection, in the case of
subsection (a), and the Board, in the case of subsection (b),
shall consult with the Comptroller of the Currency, the Board
of Directors of the Federal Deposit Insurance Corporation, and
the National Credit Union Administration Board.
* * * * * * *
----------
FEDERAL DEPOSIT INSURANCE ACT
* * * * * * *
SEC. 2. MANAGEMENT.
(a) Board of Directors.--
(1) In general.--The management of the Corporation
shall be vested in a Board of Directors consisting of 5
members--
(A) * * *
(B) 1 of whom shall be the [Director of the
Consumer Financial Protection Bureau] Chair of
the Commission of the Bureau of Consumer
Financial Protection; and
* * * * * * *
(d) Vacancy.--
(1) * * *
(2) Acting officials may serve.--In the event of a
vacancy in the office of the Comptroller of the
Currency or the office of [Director of the Consumer
Financial Protection Bureau] Chair of the Commission of
the Bureau of Consumer Financial Protection and pending
the appointment of a successor, or during the absence
or disability of the Comptroller of the Currency or the
[Director of the Consumer Financial Protection Bureau]
Chair of the Commission of the Bureau of Consumer
Financial Protection, the acting Comptroller of the
Currency or the acting [Director of the Consumer
Financial Protection Bureau] Chair of the Commission of
the Bureau of Consumer Financial Protection, as the
case may be, shall be a member of the Board of
Directors in the place of the Comptroller or Director.
* * * * * * *
----------
FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978
* * * * * * *
TITLE X--FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
* * * * * * *
establishment of the council
Sec. 1004. (a) There is established the Financial
Institutions Examination Council which shall consist of--
(1) * * *
* * * * * * *
(4) the [Director of the Consumer Financial
Protection Bureau] Chair of the Commission of the
Bureau of Consumer Financial Protection,
* * * * * * *
----------
SECTION 513 OF THE FINANCIAL LITERACY AND EDUCATION IMPROVEMENT ACT
* * * * * * *
TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT
SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION.
(a) * * *
(c) Membership.--
(1) Composition.--The Commission shall be composed
of--
(A) * * *
* * * * * * *
(C) the [Director] Chair of the Commission of
the Bureau of Consumer Financial Protection;
and
* * * * * * *
(d) Chairperson.--The Secretary of the Treasury shall serve
as the Chairperson. The [Director] Chair of the Commission of
the Bureau of Consumer Financial Protection shall serve as the
Vice Chairman.
* * * * * * *
----------
HOME MORTGAGE DISCLOSURE ACT OF 1975
TITLE III--HOME MORTGAGE DISCLOSURE
short title
Sec. 301. This title may be cited as the ``Home Mortgage
Disclosure Act of 1975''.
* * * * * * *
SEC. 307. COMPLIANCE IMPROVEMENT METHODS.
(a) In General.--
(1) Consultation required.--The [Director of the
Bureau of Consumer Financial Protection] Bureau of
Consumer Financial Protection, with the assistance of
the Secretary, the Director of the Bureau of the
Census, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, and
such other persons as the Bureau deems appropriate,
shall develop or assist in the improvement of, methods
of matching addresses and census tracts to facilitate
compliance by depository institutions in as economical
a manner as possible with the requirements of this
title.
* * * * * * *
(3) Contracting authority.--The [Director of the
Bureau of Consumer Financial Protection] Bureau of
Consumer Financial Protection is authorized to utilize,
contract with, act through, or compensate any person or
agency in order to carry out this subsection.
(b) Recommendations to Congress.--The [Director of the Bureau
of Consumer Financial Protection] Bureau of Consumer Financial
Protection shall recommend to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives, such
additional legislation as the [Director of the Bureau of
Consumer Financial Protection] Bureau of Consumer Financial
Protection deems appropriate to carry out the purpose of this
title.
* * * * * * *
----------
INTERSTATE LAND SALES FULL DISCLOSURE ACT
* * * * * * *
TITLE XIV--INTERSTATE LAND SALES
* * * * * * *
definitions
Sec. 1402. For the purposes of this title, the term--
[(1) ``Director'' means the Director of the Bureau of
Consumer Financial Protection;]
(1) ``Chair'' means the Chair of the Commission of
the Bureau of Consumer Financial Protection;
* * * * * * *
administration
Sec. 1416. (a) The authority and responsibility for
administering this title shall be in the [Director of the
Bureau of Consumer Financial Protection] Chair who may delegate
any of his functions, duties, and powers to employees of the
Bureau of Consumer Financial Protection or to boards of such
employees including functions, duties, and powers with respect
to investigating, hearing, determining, ordering, or otherwise
acting as to any work, business, or matter under this title.
The persons to whom such delegations are made with respect to
hearing functions, duties, and powers shall be appointed and
shall serve in the Bureau in compliance with sections 3105,
3344, 5372, and 7521 of title 5 of the United States Code. The
Director shall by rule prescribed such rights of appeal from
the decisions of his administrative law judges to other
administrative law judges or to other officers in the Bureau,
to boards of officers or to himself, as shall be apropriate and
in accordance with law.
* * * * * * *
----------
REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974
* * * * * * *
home buying information booklets
Sec. 5. (a) Preparation and Distribution.-- [The Director of
the Bureau of Consumer Financial Protection (hereafter in this
section referred to as the ``Director'')] The Bureau of
Consumer Financial Protection shall prepare, at least once
every 5 years, a booklet to help consumers applying for
federally related mortgage loans to understand the nature and
costs of real estate settlement services. The [Director] Bureau
shall prepare the booklet in various languages and cultural
styles, as the [Director] Bureau determines to be appropriate,
so that the booklet is understandable and accessible to
homebuyers of different ethnic and cultural backgrounds. The
[Director] Bureau shall distribute such booklets to all lenders
that make federally related mortgage loans. The [Director]
Bureau shall also distribute to such lenders lists, organized
by location, of homeownership counselors certified under
section 106(e) of the Housing and Urban Development Act of 1968
(12 U.S.C. 1701x(e)) for use in complying with the requirement
under subsection (c) of this section.
(b) Contents.--Each booklet shall be in such form and detail
as the [Director] Bureau shall prescribe and, in addition to
such other information as the [Director] Bureau may provide,
shall include in plain and understandable language the
following information:
(1) * * *
* * * * * * *
(6) A brief explanation of the nature of a variable
rate mortgage and a reference to the booklet entitled
``Consumer Handbook on Adjustable Rate Mortgages'',
published by the [Director] Bureau, or to any suitable
substitute of such booklet that the [Director] Bureau
may subsequently adopt pursuant to such section.
* * * * * * *
----------
S.A.F.E. MORTGAGE LICENSING ACT OF 2008
DIVISION A--HOUSING FINANCE REFORM
* * * * * * *
TITLE V--S.A.F.E. MORTGAGE LICENSING ACT
SEC. 1501. SHORT TITLE.
This title may be cited as the ``Secure and Fair Enforcement
for Mortgage Licensing Act of 2008'' or ``S.A.F.E. Mortgage
Licensing Act of 2008''.
SEC. 1503. DEFINITIONS.
For purposes of this title, the following definitions shall
apply:
(1) * * *
* * * * * * *
(6) Nationwide mortgage licensing system and
registry.--The term ``Nationwide Mortgage Licensing
System and Registry'' means a mortgage licensing system
developed and maintained by the Conference of State
Bank Supervisors and the American Association of
Residential Mortgage Regulators for the State licensing
and registration of State-licensed loan originators and
the registration of registered loan originators or any
system established by the [Director] Bureau under
section 1509.
* * * * * * *
[(10) Director.--The term ``Director '' means the
Director of the Bureau of Consumer Financial
Protection.]
* * * * * * *
(12) State-licensed loan originator.--The term
``State-licensed loan originator'' means any individual
who--
(A) * * *
* * * * * * *
(C) is licensed by a State or by the
[Director] Bureau under section 1508 and
registered as a loan originator with, and
maintains a unique identifier through, the
Nationwide Mortgage Licensing System and
Registry.
* * * * * * *
SEC. 1508. BUREAU OF CONSUMER FINANCIAL PROTECTION BACKUP AUTHORITY TO
ESTABLISH LOAN ORIGINATOR LICENSING SYSTEM.
(a) Backup Licensing System.--If, by the end of the 1-year
period, or the 2-year period in the case of a State whose
legislature meets only biennially, beginning on the date of the
enactment of this title or at any time thereafter, the
[Director] Bureau determines that a State does not have in
place by law or regulation a system for licensing and
registering loan originators that meets the requirements of
sections 1505 and 1506 and subsection (d) of this section, or
does not participate in the Nationwide Mortgage Licensing
System and Registry, the [Director] Bureau shall provide for
the establishment and maintenance of a system for the licensing
and registration by the [Director] Bureau of loan originators
operating in such State as State-licensed loan originators.
(b) Licensing and Registration Requirements.--The system
established by the [Director] Bureau under subsection (a) for
any State shall meet the requirements of sections 1505 and 1506
for State-licensed loan originators.
(c) Unique Identifier.--The [Director] Bureau shall
coordinate with the Nationwide Mortgage Licensing System and
Registry to establish protocols for assigning a unique
identifier to each loan originator licensed by the [Director]
Bureau as a State-licensed loan originator that will facilitate
electronic tracking and uniform identification of, and public
access to, the employment history of and the publicly
adjudicated disciplinary and enforcement actions against loan
originators.
(d) State Licensing Law Requirements.--For purposes of this
section, the law in effect in a State meets the requirements of
this subsection if the [Director] Bureau determines the law
satisfies the following minimum requirements:
(1) * * *
* * * * * * *
(e) Temporary Extension of Period.--The [Director] Bureau may
extend, by not more than 24 months, the 1-year or 2-year
period, as the case may be, referred to in subsection (a) for
the licensing of loan originators in any State under a State
licensing law that meets the requirements of sections 1505 and
1506 and subsection (d) if the [Director] Bureau determines
that such State is making a good faith effort to establish a
State licensing law that meets such requirements, license
mortgage originators under such law, and register such
originators with the Nationwide Mortgage Licensing System and
Registry.
* * * * * * *
SEC. 1509. BACKUP AUTHORITY TO ESTABLISH A NATIONWIDE MORTGAGE
LICENSING AND REGISTRY SYSTEM.
If at any time the [Director] Bureau determines that the
Nationwide Mortgage Licensing System and Registry is failing to
meet the requirements and purposes of this title for a
comprehensive licensing, supervisory, and tracking system for
loan originators, the [Director] Bureau shall establish and
maintain such a system to carry out the purposes of this title
and the effective registration and regulation of loan
originators.
* * * * * * *
SEC. 1512. CONFIDENTIALITY OF INFORMATION.
(a) System Confidentiality.--Except as otherwise provided in
this section, any requirement under Federal or State law
regarding the privacy or confidentiality of any information or
material provided to the Nationwide Mortgage Licensing System
and Registry or a system established by the [Director] Bureau
under section 1509, and any privilege arising under Federal or
State law (including the rules of any Federal or State court)
with respect to such information or material, shall continue to
apply to such information or material after the information or
material has been disclosed to the system. Such information and
material may be shared with all State and Federal regulatory
officials with mortgage industry oversight authority without
the loss of privilege or the loss of confidentiality
protections provided by Federal and State laws.
(b) Nonapplicability of Certain Requirements.--Information or
material that is subject to a privilege or confidentiality
under subsection (a) shall not be subject to--
(1) * * *
(2) subpoena or discovery, or admission into
evidence, in any private civil action or administrative
process, unless with respect to any privilege held by
the Nationwide Mortgage Licensing System and Registry
or the [Director] Bureau with respect to such
information or material, the person to whom such
information or material pertains waives, in whole or in
part, in the discretion of such person, that privilege.
* * * * * * *
SEC. 1513. LIABILITY PROVISIONS.
The Bureau, any State official or agency, or any organization
serving as the administrator of the Nationwide Mortgage
Licensing System and Registry or a system established by the
[Director] Bureau under section 1509, or any officer or
employee of any such entity, shall not be subject to any civil
action or proceeding for monetary damages by reason of the good
faith action or omission of any officer or employee of any such
entity, while acting within the scope of office or employment,
relating to the collection, furnishing, or dissemination of
information concerning persons who are loan originators or are
applying for licensing or registration as loan originators.
SEC. 1514. ENFORCEMENT BY THE BUREAU.
(a) Summons Authority.--The [Director] Bureau may--
(1) examine any books, papers, records, or other data
of any loan originator operating in any State which is
subject to a licensing system established by the
[Director] Bureau under section 1508; and
(2) summon any loan originator referred to in
paragraph (1) or any person having possession, custody,
or care of the reports and records relating to such
loan originator, to appear before the [Director] Bureau
or any delegate of the [Director] Bureau at a time and
place named in the summons and to produce such books,
papers, records, or other data, and to give testimony,
under oath, as may be relevant or material to an
investigation of such loan originator for compliance
with the requirements of this title.
(b) Examination Authority.--
(1) In general.--If the [Director] Bureau establishes
a licensing system under section 1508 for any State,
the [Director] Bureau shall appoint examiners for the
purposes of administering such section.
(2) Power to examine.--Any examiner appointed under
paragraph (1) shall have power, on behalf of the
[Director] Bureau, to make any examination of any loan
originator operating in any State which is subject to a
licensing system established by the [Director] Bureau
under section 1508 whenever the [Director] Bureau
determines an examination of any loan originator is
necessary to determine the compliance by the originator
with this title.
(3) Report of examination.--Each examiner appointed
under paragraph (1) shall make a full and detailed
report of examination of any loan originator examined
to the [Director] Bureau.
(4) Administration of oaths and affirmations;
evidence.--In connection with examinations of loan
originators operating in any State which is subject to
a licensing system established by the [Director] Bureau
under section 1508, or with other types of
investigations to determine compliance with applicable
law and regulations, the [Director] Bureau and
examiners appointed by the [Director] Bureau may
administer oaths and affirmations and examine and take
and preserve testimony under oath as to any matter in
respect to the affairs of any such loan originator.
(5) Assessments.--The cost of conducting any
examination of any loan originator operating in any
State which is subject to a licensing system
established by the [Director] Bureau under section 1508
shall be assessed by the [Director] Bureau against the
loan originator to meet the Secretary's expenses in
carrying out such examination.
(c) Cease and Desist Proceeding.--
(1) Authority of secretary.--If the [Director] Bureau
finds, after notice and opportunity for hearing, that
any person is violating, has violated, or is about to
violate any provision of this title, or any regulation
thereunder, with respect to a State which is subject to
a licensing system established by the [Director] Bureau
under section 1508, the [Director] Bureau may publish
such findings and enter an order requiring such person,
and any other person that is, was, or would be a cause
of the violation, due to an act or omission the person
knew or should have known would contribute to such
violation, to cease and desist from committing or
causing such violation and any future violation of the
same provision, rule, or regulation. Such order may, in
addition to requiring a person to cease and desist from
committing or causing a violation, require such person
to comply, or to take steps to effect compliance, with
such provision or regulation, upon such terms and
conditions and within such time as the [Director]
Bureau may specify in such order. Any such order may,
as the [Director] Bureau deems appropriate, require
future compliance or steps to effect future compliance,
either permanently or for such period of time as the
[Director] Bureau may specify, with such provision or
regulation with respect to any loan originator.
(2) Hearing.--The notice instituting proceedings
pursuant to paragraph (1) shall fix a hearing date not
earlier than 30 days nor later than 60 days after
service of the notice unless an earlier or a later date
is set by the [Director] Bureau with the consent of any
respondent so served.
(3) Temporary order.--Whenever the [Director] Bureau
determines that the alleged violation or threatened
violation specified in the notice instituting
proceedings pursuant to paragraph (1), or the
continuation thereof, is likely to result in
significant dissipation or conversion of assets,
significant harm to consumers, or substantial harm to
the public interest prior to the completion of the
proceedings, the [Director] Bureau may enter a
temporary order requiring the respondent to cease and
desist from the violation or threatened violation and
to take such action to prevent the violation or
threatened violation and to prevent dissipation or
conversion of assets, significant harm to consumers, or
substantial harm to the public interest as the
[Director] Bureau deems appropriate pending completion
of such proceedings. Such an order shall be entered
only after notice and opportunity for a hearing, unless
the [Director] Bureau determines that notice and
hearing prior to entry would be impracticable or
contrary to the public interest. A temporary order
shall become effective upon service upon the respondent
and, unless set aside, limited, or suspended by the
[Director] Bureau or a court of competent jurisdiction,
shall remain effective and enforceable pending the
completion of the proceedings.
(4) Review of temporary orders.--
(A) Review by secretary.--At any time after
the respondent has been served with a temporary
cease and desist order pursuant to paragraph
(3), the respondent may apply to the [Director]
Bureau to have the order set aside, limited, or
suspended. If the respondent has been served
with a temporary cease and desist order entered
without a prior hearing before the [Director]
Bureau, the respondent may, within 10 days
after the date on which the order was served,
request a hearing on such application and the
[Director] Bureau shall hold a hearing and
render a decision on such application at the
earliest possible time.
(B) Judicial review.--Within--
(i) 10 days after the date the
respondent was served with a temporary
cease and desist order entered with a
prior hearing before the [Director]
Bureau; or
(ii) 10 days after the [Director]
Bureau renders a decision on an
application and hearing under paragraph
(1), with respect to any temporary
cease and desist order entered without
a prior hearing before the [Director]
Bureau,
the respondent may apply to the United States
district court for the district in which the
respondent resides or has its principal place
of business, or for the District of Columbia,
for an order setting aside, limiting, or
suspending the effectiveness or enforcement of
the order, and the court shall have
jurisdiction to enter such an order. A
respondent served with a temporary cease and
desist order entered without a prior hearing
before the [Director] Bureau may not apply to
the court except after hearing and decision by
the [Director] Bureau on the respondent's
application under subparagraph (A).
* * * * * * *
(5) Authority of the secretary to prohibit persons
from serving as loan originators.--In any cease and
desist proceeding under paragraph (1), the [Director]
Bureau may issue an order to prohibit, conditionally or
unconditionally, and permanently or for such period of
time as the [Director] Bureau shall determine, any
person who has violated this title or regulations
thereunder, from acting as a loan originator if the
conduct of that person demonstrates unfitness to serve
as a loan originator.
(d) Authority of the Secretary To Assess Money Penalties.--
(1) In general.--The [Director] Bureau may impose a
civil penalty on a loan originator operating in any
State which is subject to a licensing system
established by the [Director] Bureau under section
1508, if the [Director] Bureau finds, on the record
after notice and opportunity for hearing, that such
loan originator has violated or failed to comply with
any requirement of this title or any regulation
prescribed by the [Director] Bureau under this title or
order issued under subsection (c).
* * * * * * *
SEC. 1516. REPORTS AND RECOMMENDATIONS TO CONGRESS.
(a) Annual Reports.--Not later than 1 year after the date of
enactment of this title, and annually thereafter, the
[Director] Bureau shall submit a report to Congress on the
effectiveness of the provisions of this title, including
legislative recommendations, if any, for strengthening consumer
protections, enhancing examination standards, streamlining
communication between all stakeholders involved in residential
mortgage loan origination and processing, and establishing
performance based bonding requirements for mortgage originators
or institutions that employ such brokers.
(b) Legislative Recommendations.--Not later than 6 months
after the date of enactment of this title, the [Director]
Bureau shall make recommendations to Congress on legislative
reforms to the Real Estate Settlement Procedures Act of 1974,
that the [Director] Bureau deems appropriate to promote more
transparent disclosures, allowing consumers to better shop and
compare mortgage loan terms and settlement costs.
SEC. 1517. STUDY AND REPORTS ON DEFAULTS AND FORECLOSURES.
(a) Study Required.--The [Director] Bureau shall conduct an
extensive study of the root causes of default and foreclosure
of home loans, using as much empirical data as is available.
(b) Preliminary Report to Congress.--Not later than 6 months
after the date of enactment of this title, the [Director]
Bureau shall submit to Congress a preliminary report regarding
the study required by this section.
(c) Final Report to Congress.--Not later than 12 months after
the date of enactment of this title, the [Director] Bureau
shall submit to Congress a final report regarding the results
of the study required by this section, which shall include any
recommended legislation relating to the study, and
recommendations for best practices and for a process to provide
targeted assistance to populations with the highest risk of
potential default or foreclosure.
* * * * * * *
----------
SECTION 3513 OF TITLE 44, UNITED STATES CODE
Sec. 3513. Director review of agency activities; reporting; agency
response
(a) * * *
* * * * * * *
(c) Comparable Treatment.--Notwithstanding any other
provision of law, the Director shall treat or review a rule or
order prescribed or proposed by the [Director of the Bureau]
Bureau of Consumer Financial Protection on the same terms and
conditions as apply to any rule or order prescribed or proposed
by the Board of Governors of the Federal Reserve System.
MINORITY VIEWS
Replacing the Director of the Consumer Financial Protection
Bureau (CFPB or Bureau) with a five-member commission is a
blatant attempt to stymie the functioning of the agency and
empower regulated entities to exercise more influence over
CFPB's decision-making. A commission would make the Bureau less
accountable to Congress and other stakeholders not enhance its
accountability. By increasing bureaucracy, the bill would stall
decision-making and could delay action on critical issues
affecting consumers.
The Dodd-Frank Wall Street Reform and Consumer Financial
Protection (Dodd-Frank) Act already includes several provisions
designed to ensure that myriad stakeholder views are
incorporated into the Bureau's decision making process.
Specifically, Section 1100G of the Dodd-Frank Act mandates the
Bureau seek out input from small businesses, Section
1022(b)(2)(B) mandates that the Bureau consult with other
prudential bank regulators and Section 1014 requires the Bureau
to solicit the views of a Consumer Advisory Board to ensure the
Bureau is informed of emerging practices in the consumer
financial products or services industry, including trends,
concerns and other relevant information.
In fact, the Bureau has already shown a willingness to
incorporate stakeholder feedback into its decision-making
process. Examples of this include the balanced approach the
Bureau has taken in addressing concerns raised by industry
participants in both its remittance and mortgage rules.
Furthermore, replacing the Director of the Bureau with a
five-member commission would be inconsistent with the
leadership structures of the Office of the Comptroller of the
Currency (OCC) and Federal Housing Finance Agency (FHFA), both
of which are run by single directors. While some, but not all,
financial regulators are governed by multi-member commissions,
these agencies lack many of the accountability and consultation
requirements to which the CFPB must adhere.
Maxine Waters.
Stephen F. Lynch.
Ruben Hinojosa.
Keith Ellison.
David Scott.
Michael E. Capuano.
Carolyn B. Maloney.
Kysten Sinema.
Joyce Beatty.
Bill Foster.
Daniel Kildee.
Al Green.
James A. Himes.
Denny Heck.
Gregory W. Meeks.
Gwen Moore.
Terri Swell.
Wm. Lacy Clay.
Patrick Murphy.
Ed Perlutter.
Emanuel Cleaver.
Brad Sherman.