[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1315 Referred in Senate (RFS)]

112th CONGRESS
  1st Session
                                H. R. 1315


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2011

Received; read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 AN ACT


 
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act 
to strengthen the review authority of the Financial Stability Oversight 
   Council of regulations issued by the Bureau of Consumer Financial 
 Protection, to rescind the unobligated funding for the FHA Refinance 
     Program and to terminate the program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
TITLE I--CONSUMER FINANCIAL PROTECTION SAFETY AND SOUNDNESS IMPROVEMENT 
                                  ACT

Sec. 101. Short title.
Sec. 102. Council voting procedure.
Sec. 103. Review authority of the Council.
Sec. 104. Establishment of the Commission.
Sec. 105. Conforming amendments.
Sec. 106. Chair of the Commission required before transfer.
Sec. 107. Inspector General report.
Sec. 108. Analysis of regulations.
            TITLE II--FHA REFINANCE PROGRAM TERMINATION ACT

Sec. 201. Short title.
Sec. 202. Rescission of funding for FHA Refinance Program.
Sec. 203. Termination of FHA Refinance Program.
Sec. 204. Publication of Member Availability for Assistance.

TITLE I--CONSUMER FINANCIAL PROTECTION SAFETY AND SOUNDNESS IMPROVEMENT 
                                  ACT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Consumer Financial Protection 
Safety and Soundness Improvement Act of 2011''.

SEC. 102. COUNCIL VOTING PROCEDURE.

    (a) In General.--Section 1023(c)(3)(A) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is amended--
            (1) by striking ``\2/3\'' and inserting ``a majority''; and
            (2) by inserting before the period the following: ``, 
        excluding the Chair of the Commission of the Bureau''.
    (b) Petition by Nonvoting Members; No Restrictions on Petition 
Subject Matter.--Section 1023 of the Dodd-Frank Wall Street Reform and 
Consumer Protection act is amended by adding at the end the following 
new subsection:
    ``(g) Petition by Nonvoting Members.--Notwithstanding any other 
subsection of this section, the provisions of this section shall apply 
to a petition by a nonvoting member of the Council to the same extent 
that they apply to a petition by an agency represented by a member of 
the Council.
    ``(h) No Restrictions on Petition Subject Matter.--Petitions made 
under this section may be made by an agency or a nonvoting member of 
the Council on any subject matter, regardless of the areas of 
particular expertise of such agency or nonvoting member.''.
    (c) Conflict of Interest.--Section 1023(c)(3) of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act is amended by adding at 
the end the following new subparagraph:
                    ``(C) Conflict of interest.--No member of the 
                Council may vote on the decision to issue a stay of, or 
                set aside, any regulation under this section, if such 
                member has, within the previous 2-year period, been 
                employed by any company or other entity that is subject 
                to such regulation.''.

SEC. 103. REVIEW AUTHORITY OF THE COUNCIL.

    Section 1023 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act is amended--
            (1) in subsection (a)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``regulation or provision would put 
                the safety and soundness of the United States banking 
                system or the stability of the financial system of the 
                United States at risk'' and inserting ``regulation 
                which is the subject of the petition is inconsistent 
                with the safe and sound operations of United States 
                financial institutions''; and
            (2) in subsection (c)--
                    (A) in paragraph (3)(B)(ii), by striking ``would 
                put the safety and soundness of the United States 
                banking system or the stability of the financial system 
                of the United States at risk'' and inserting ``is 
                inconsistent with the safe and sound operations of 
                United States financial institutions'';
                    (B) in paragraph (4)--
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B);
                    (C) by striking paragraph (5);
                    (D) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (5), (6), and (7), respectively; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(8) Public meetings.--Any time the Council meets pursuant 
        to this section to decide whether to issue a stay of, or set 
        aside, any regulation, every portion of such meeting shall be 
        open to public observation. The Council shall provide live 
        online streaming or broadcasting of the meetings.''.

SEC. 104. 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;
                    ``(B) have strong competencies and experiences 
                related to consumer financial protection; and
                    ``(C) should want to protect service members and 
                their families who are sacrificing their lives for this 
                country from abusive financial practices.
            ``(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 for cause.--The President may remove 
                any member of the Commission appointed under paragraph 
                (1) only for inefficiency, neglect of duty, or 
                malfeasance in office.
                    ``(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.
            ``(4) Roles and responsibilities of commissioners.--One 
        member of the Commission shall have as their primary 
        responsibility the oversight of the Bureau's activities 
        pertaining to protecting consumers, with a focus on consumers 
        who are older, minorities, youth, or veterans, from unfair, 
        deceptive, and abusive lending practices. The designated 
        commissioner shall be responsible for--
                    ``(A) ensuring the Bureau conducts regular outreach 
                to consumers regarding industry lending activities;
                    ``(B) researching and reporting to the full 
                Commission, on a regular basis, the impact of new loan 
                and credit products and services on consumers;
                    ``(C) ensuring the Bureau coordinates with State-
                level consumer protection agencies on enforcement 
                measures that protect consumers from unfair, deceptive, 
                and abusive lending practices; and
                    ``(D) researching and reporting to the full 
                Commission about ways to protect consumers from unfair, 
                deceptive, or abusive lending acts or practices, 
                including how language barriers contribute to lack of 
                understanding in lending activities.
    ``(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 paragraph (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. 105. CONFORMING AMENDMENTS.

    (a) Consumer Financial Protection Act of 2010.--
            (1) In general.--The Consumer Financial Protection Act of 
        2010 is amended--
                    (A) in section 1002, by striking paragraph (10);
                    (B) in section 1012(c)(4), by striking ``Director'' 
                each place such term appears and inserting ``Commission 
                of the Bureau'';
                    (C) 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'';
                    (D) 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'';
                    (E) in section 1016(a), by striking ``Director of 
                the Bureau'' and inserting ``Chair of the Commission'';
                    (F) in section 1017(c)(1), by striking ``Director 
                and other employees'' and inserting ``members of the 
                Commission and other employees'';
                    (G) in section 1027(l)(1), by striking ``Director 
                and the''; and
                    (H) in section 1066(a), by striking ``Director of 
                the Bureau is'' and inserting ``first member of the 
                Commission is''.
            (2) Global amendments.--The Consumer Financial Protection 
        Act of 2010 is amended--
                    (A) by striking ``Director of the'' each place such 
                term appears, other than in--
                            (i) subparagraphs (A) and (E) of section 
                        1017(4);
                            (ii) section 1043;
                            (iii) section 1061(b)(3);
                            (iv) section 1062;
                            (v) section 1063(f);
                            (vi) subparagraphs (E) and (G) of section 
                        1064(i)(2); and
                            (vii) section 1065(a); and
                    (B) by striking ``Director'' each place such term 
                appears and inserting ``Bureau'', other than in--
                            (i) section 1063(f)(2); and
                            (ii) section 1065(a).
    (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 921(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) 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;'';
            (2) in section 1416(a), by striking ``Director of the 
        Bureau of Consumer Financial Protection'' and inserting 
        ``Chair''; and
            (3) by striking ``Director'' each place such term appears 
        and inserting ``Bureau''.
    (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 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''.

SEC. 106. CHAIR OF THE COMMISSION REQUIRED BEFORE TRANSFER.

    Section 1062 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act is amended by adding at the end the following new 
subsection:
    ``(d) Chair of the Commission Required Before Transfer.--
Notwithstanding the other provisions of this section, the single 
calendar date for the transfer of functions to the Bureau under section 
1061 shall be the later of--
            ``(1) the date that would have been designated, but for the 
        application of this subsection; and
            ``(2) the date on which the Chair of the Commission of the 
        Bureau is confirmed by the Senate.''.

SEC. 107. INSPECTOR GENERAL REPORT.

    Section 1013 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act is amended by adding at the end the following new 
subsection:
    ``(h) Inspector General Report.--
            ``(1) In general.--Not later than February 1, 2012, and 
        annually thereafter, the Inspector General of the Board of 
        Governors of the Federal Reserve System and the Bureau of 
        Consumer Financial Protection shall submit a report to the 
        Congress containing the following:
                    ``(A) A list of all new rules, guidelines, and 
                regulations prescribed by the Bureau within the 
                previous fiscal year, with corresponding detailed 
                descriptions of each.
                    ``(B) A detailed list of all authority which the 
                Inspector General believes overlaps with the efforts of 
                other Federal departments and agencies.
                    ``(C) All administrative expenses of the Bureau, 
                including the amount spent on salaries, office 
                supplies, and office space.
                    ``(D) The current amount in the Bureau of Consumer 
                Financial Protection Fund.
            ``(2) Public disclosure.--The Inspector General of the 
        Board of Governors of the Federal Reserve System and the Bureau 
        of Consumer Financial Protection shall make each report 
        submitted under paragraph (1) available to the public, 
        including on the Bureau's website.
            ``(3) Use of funds.--The Inspector General shall carry out 
        this subsection using existing funds.''.

SEC. 108. ANALYSIS OF REGULATIONS.

    Section 1022 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act is amended by adding at the end the following new 
subsection:
    ``(e) Analysis of Regulations.--
            ``(1) In general.--Each time the Bureau proposes a new rule 
        or regulation, the Bureau shall--
                    ``(A) carry out an initial regulatory flexibility 
                analysis for such proposed rule or regulation, which 
                shall be carried out as closely as possible to those 
                initial regulatory flexibility analyses required under 
                section 603 of title 5, United States Code, but which 
                shall analyze the financial impact of the proposed rule 
                or regulation on all financial entities, regardless of 
                size; and
                    ``(B) carry out an analysis of whether the proposed 
                rule or regulation will impair the ability of 
                individuals and small business to access credit from 
                financial institutions.
            ``(2) Report.--The Bureau shall issue a report to the 
        Council on the analyses carried out under paragraph (1), and 
        make such analyses available to the public.
            ``(3) Use of existing resources.--The Bureau shall use 
        existing resources to carry out the requirements of this 
        subsection.''.

            TITLE II--FHA REFINANCE PROGRAM TERMINATION ACT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``FHA Refinance Program Termination 
Act''.

SEC. 202. RESCISSION OF FUNDING FOR FHA REFINANCE PROGRAM.

    Effective on the date of the enactment of this Act, there are 
rescinded and permanently canceled all unexpended balances remaining 
available as of such date of enactment of the amounts made available 
under title I of the Emergency Economic Stabilization Act (Public Law 
110-343; 12 U.S.C. 5211 et seq.) that have been allocated for use under 
the FHA Refinance Program (pursuant to Mortgagee Letter 2010-23 of the 
Secretary of Housing and Urban Development) of the Making Home 
Affordable initiative of the Secretary of the Treasury. All such 
unexpended balances so rescinded and permanently canceled shall be 
retained in the general fund of the Treasury for reducing the debt of 
the Federal Government.

SEC. 203. TERMINATION OF FHA REFINANCE PROGRAM.

    (a) Termination of Mortgagee Letter.--The Mortgagee Letter referred 
to in section 202 shall be void and have no effect and the Secretary of 
Housing and Urban Development may not issue any regulation, order, 
notice, or mortgagee letter based on or substantially similar to such 
Mortgagee Letter.
    (b) Treatment of Remaining Funds.--Notwithstanding subsection (a) 
of this section, any amounts made available for use under the Program 
referred to in section 202 of this title and expended before the date 
of the enactment of this Act shall continue to be governed by the 
Mortgagee Letter specified in subsection (a) of this section, and any 
other provisions of law, regulations, orders, and notices, applicable 
to such amounts, as in effect immediately before such date of 
enactment.
    (c) Termination.--After the enactment of this Act, the Secretary of 
Housing and Urban Development may not newly insure any mortgage under 
the FHA Refinance Program referred to in section 202 of this title 
except pursuant to a commitment to insure made before such enactment, 
and upon the completion of all activities with respect to such 
commitments under the provisions of law, regulations, orders, notices, 
and mortgagee letters referred to in subsection (b) of this section, 
the Secretary of Housing and Urban Development shall terminate the FHA 
Refinance Program referred to in section 202.
    (d) Study of Use of Program by Members of the Armed Forces, 
Veterans, Gold Star Recipients, and Members and Veterans With Service-
connected Disabilities and Their Families.--
            (1) Study.--The Secretary of Housing and Urban Development 
        shall conduct a study to determine the extent of usage of the 
        FHA Refinance Program referred to in section 202 by, and the 
        impact of such program on, covered homeowners.
            (2) Report.--Not later than the expiration of the 90-day 
        period beginning on the date of the enactment of this Act, the 
        Secretary shall submit to the Congress a report setting forth 
        the results of the study under paragraph (1) and identifying 
        best practices, with respect to covered homeowners, that could 
        be applied to the FHA Refinance Program.
            (3) Covered homeowner.--For purposes of this subsection, 
        the term ``covered homeowner'' means a homeowner who is--
                    (A) a member of the Armed Forces of the United 
                States on active duty or the spouse or parent of such a 
                member;
                    (B) a veteran, as such term is defined in section 
                101 of title 38, United States Code;
                    (C) eligible to receive a Gold Star lapel pin under 
                section 1126 of title 10, United States Code, as a 
                widow, parent, or next of kin of a member of the Armed 
                Forces person who died in a manner described in 
                subsection (a) of such section; and
                    (D) such members and veterans of the Armed Forces 
                who have service-connected injuries, and survivors and 
                dependents of such members and veterans of the Armed 
                Forces with such injuries.

SEC. 204. PUBLICATION OF MEMBER AVAILABILITY FOR ASSISTANCE.

    Not later than 5 days after the date of the enactment of this Act, 
the Secretary of Housing and Urban Development shall publish to its 
Website on the World Wide Web in a prominent location, large point 
font, and boldface type the following statement: ``The FHA Short 
Refinance Program, which was intended to provide borrowers with 
refinance opportunities, has been terminated. If you are having trouble 
paying your mortgage and need help contacting your lender or servicer 
for purposes of negotiating or acquiring a loan modification, please 
contact your Member of Congress to assist you in contacting your lender 
or servicer for the purpose of negotiating or acquiring a loan 
modification.''.

            Passed the House of Representatives July 21, 2011.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.