S. 5335 (Introduced-in-Senate)

To amend the Federal Financial Institutions Examination Council Act of 1978 to provide for fair audits and inspections for examinations.

August 6, 2026

Mr. Moran (for himself and Mr. Hagerty) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

To amend the Federal Financial Institutions Examination Council Act of 1978 to provide for fair audits and inspections for examinations.

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

This Act may be cited as the “Fair Audits and Inspections for Regulators' Exams Act”.

(a) Timeliness of examinations and examination reports.—The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the end the following:

“(a) Timeliness of examinations.—A Federal financial institutions regulatory agency shall complete any examination of a financial institution, other than a financial institution subject to a continuous or resident examination program, within 270 days of commencing the examination, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the financial institution describing with particularity the reasons that a longer period is needed.

“(b) Final examination report.—A Federal financial institutions regulatory agency shall provide a final examination report to a financial institution, other than a financial institution subject to a continuous or resident examination program, not later than 90 days after the later of—

“(2) the provision of additional material information by the institution relating to the examination.

“(c) Exit interview requirement.—Not later than 30 days after completing an examination for a financial institution not subject to a continuous or resident examination program, a Federal financial institutions regulatory agency shall conduct an exit interview with the senior management or the board of directors of the financial institution, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the institution describing with particularity the reasons that a longer period is needed.

“(d) Examination materials.—Upon the written request of a financial institution, the Federal financial institutions regulatory agency shall include with the final report an appendix listing all examination or other factual information relied upon by the agency in support of a material supervisory determination.”.

(b) Timeliness of required prudential private letter rulings.—The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by subsection (a), is amended by adding at the end the following:

“(i) any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including—

“(III) changing the corporate structure of the covered financial institution; and

“(ii) an objection by a Federal financial institutions regulatory agency to the covered financial institution commencing or otherwise conducting an activity (including an action described in subparagraph (A)).

“(B) COVERED FINANCIAL INSTITUTION.—The term ‘covered financial institution’ means any entity subject to the examination or supervisory authority of a Federal financial institutions regulatory agency.

“(2) PROCEDURES.—Each Federal financial institutions regulatory agency shall establish procedures providing that a covered financial institution may, upon application by the covered financial institution and with respect to a covered action, obtain written advice regarding—

“(A) the nonobjection of the agency to the financial institution conducting a particular activity;

“(B) the interpretation by the agency of a law or regulation as applied to a particular matter;

“(C) the interpretation by the agency of how generally accepted accounting principles or accounting objectives, standards, and requirements apply to a particular matter; or

“(D) the application by the agency of any supervisory guidance, statement of policy, or interpretive rule to a particular matter.

“(b) Contents of request.—The procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain—

“(3) applicable law, regulations, or generally accepted accounting principles relating to the matter; and

“(c) Response To request.—A Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request—

“(1) provide the financial institution making the request with written notification confirming receipt of the request and stating whether the request contains all of the information required under subsection (b); and

“(2) if the request does not contain all of the information required under subsection (b)—

“(A) provide the financial institution with an explanation of what information is missing; and

“(B) notify the financial institution that the financial institution may provide the missing information to the agency within 30 days.

“(d) Providing missing information.—If a Federal financial institutions regulatory agency informs the financial institution under subsection (c) that the request for written advice does not contain all the information required under subsection (b), the financial institution may provide the missing information to the Federal financial institutions regulatory agency not later than 30 days after the date the financial institution receives the explanation of the missing information under subsection (c).

“(e) Determination.—A Federal financial institutions regulatory agency receiving a request for written advice under the procedures established under subsection (a) shall provide the financial institution with a written response (or, for purposes of paragraph (3), notify the financial institution that a determination cannot be made)—

“(1) if the initial request contains the information required under subsection (b), not later than the end of the 60-day period beginning on the date the Federal financial institutions regulatory agency notifies the financial institution of the receipt of the request under subsection (c);

“(2) if the initial request does not contain the information required under subsection (b), but the financial institution provides the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the date such missing information is provided; or

“(3) if the initial request does not contain the information required under subsection (b), and the financial institution does not provide the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the end of such 30-day period.

“(f) Limited binding effect.—Written advice issued by a Federal financial institutions regulatory agency under the procedures established under this section—

“(1) shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request;

“(2) may be relied upon by the financial institution requesting the written advice in good faith; and

“(A) be binding on the agency with respect to any other person or institution; and

“(1) TREATMENT OF WRITTEN ADVICE.—Written advice issued under this section, and any materials submitted in connection therewith, and the fact that a request for written advice was made shall be treated as confidential supervisory information and exempt from disclosure under section 552(b) of title 5, United States Code.

“(2) PUBLISHING OF ANONYMIZED OR REDACTED SUMMARIES.—A Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes.

“(h) Modification or revocation.—A Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if—

“(1) the requesting financial institution made a material misstatement or omission of fact;

“(3) the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued.

“(1) IN GENERAL.—Each Federal financial institutions regulatory agency may establish and collect a reasonable fee for the processing and issuance of any written advice issued under this section.

“(A) shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request;

“(B) may vary based on the complexity of the request or the size of the requesting institution; and

“(j) Finality.—Written advice issued under the procedures established under this section shall not be construed as a final agency action.”.

(1) IN GENERAL.—The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by subsection (b), is amended by adding at the end the following:

“(a) Establishment.—There is established in the Council an Office of Independent Examination Review (referred to in this section as the ‘Office’).

“(1) IN GENERAL.—The head of the Office shall be the Board of Independent Examination Review, which shall be comprised of 3 members, appointed by the President, by and with the advice and consent of the Senate.

“(2) QUALIFICATIONS.—The President shall appoint 1 member of the Board from each of the following classes of individuals:

“(A) Individuals who have been employed by a Federal financial institutions regulatory agency.

“(i) are not, and were not during the previous 5-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; and

“(ii) (I) are a licensed attorney or a certified public accountant authorized to practice under the laws of a State, the District of Columbia, or a territory of the United States;

“(II) have academic or private sector experience relating to financial services; or

“(III) have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions.

“(C) Individuals with at least 10 years private sector financial services senior management-level experience.

“(3) PROHIBITION ON CERTAIN INDIVIDUALS SERVING AS A BOARD MEMBER.—The President may not appoint an individual as a member of the Board if the individual—

“(A) is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or

“(B) is, or was during the previous 2-year period, employed by a financial institution.

“(4) CONSULTATION.—In appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions.

“(A) IN GENERAL.—Each member of the Board shall serve for a term of 3 years. Upon the expiration of a term of office of the member, the member shall continue to serve until the successor of the member has been confirmed by the Senate.

“(B) TERM LIMITATION.—No individual may serve more than 2 full terms on the Board.

“(6) POLITICAL AFFILIATION.—Not more than 2 members of the Board shall be members of the same political party.

“(B) INITIAL QUORUM.—During the 6-month period beginning on the date of enactment of this section, 1 member of the Board shall constitute a quorum until the Board has 3 members.

“(8) RATE OF PAY.—The annual rate of basic pay for the members of the Board shall be the rate of basic pay for level IV of the Executive Schedule under section 5315 of title 5, United States Code.

“(1) IN GENERAL.—The Board is authorized to hire staff to support the activities of the Office and set the salaries of such staff.

“(A) IN GENERAL.—One-fifth of the costs and expenses of the Office, including the salaries of its employees, shall be paid by each of the Federal financial institutions regulatory agencies.

“(B) ASSESSMENTS.—Annual assessments for the share described in subparagraph (A) shall be levied by the Council based upon its projected budget for the year, and additional assessments may be made during the year if necessary.

“(1) receive and, at the discretion of the Board, investigate complaints from financial institutions, their representatives, or another entity acting on behalf of the institutions, concerning completed examinations, examination practices, or examination reports;

“(2) hold meetings, at least once every 3 months and in locations designed to encourage participation from all sections of the United States, with financial institutions, their representatives, or another entity acting on behalf of the institutions, to discuss examination procedures, examination practices, or examination policies;

“(3) review examination procedures of the Federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency;

“(4) conduct a continuing and regular program of examination quality assurance on a sample for all examination types conducted by the Federal financial institutions regulatory agencies;

“(5) carry out an independent review of any supervisory appeal initiated under section 1015; and

“(6) report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council, on the reviews carried out pursuant to paragraphs (3) and (5), including compliance with the requirements set forth in section 1012 regarding timeliness of examination reports, and the recommendations of the Board for improvements in examination procedures, practices, and policies.

“(A) all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;

“(B) all information and communications exchanged between a financial institution and the Office; and

“(C) all information and communications exchanged between a Federal financial institutions regulatory agency and the Office.

“(2) SUBMISSION OF INFORMATION DOES NOT CONSTITUTE A WAIVER.—Section 18(x) of the Federal Deposit Insurance Act (12 U.S.C. 1828(x)) and section 205(j) of the Federal Credit Union Act (12 U.S.C. 1785(j)) shall apply to the submission of information to the Board by a financial institution or a Federal financial institutions regulatory agency to the same extent as those sections apply to the submission of information described in those sections.

“(3) SHARING OF INFORMATION WITHOUT WAIVING PRIVILEGE.—The Board shall be considered a covered agency for purposes of section 11(t) of the Federal Deposit Insurance Act (12 U.S.C. 1821(t)).”.

(2) DEFINITIONS.—Section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302) is amended—

“(4) the term ‘Board’ means the Board of Independent Examination Review established under section 1014(b);

“(5) the term ‘material supervisory determination’ has the meaning given the term in section 309(f) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4806(f));

“(6) the term ‘insured depository institution’ has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and

“(7) the term ‘insured credit union’ has the meaning given the term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).”.

(d) Right to independent review of material supervisory determinations.—The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by subsection (c), is amended by adding at the end the following:

“SEC. 1015. Right to independent review of material supervisory determinations.

“(a) In general.—A financial institution shall have the right to obtain an independent review of a material supervisory determination contained in a final report of examination. A Federal financial institutions regulatory agency and the Board may not conduct concurrent reviews.

“(1) TIMING.—A financial institution seeking review of a material supervisory determination under this section shall file a written notice with the Board not later than 30 days after receiving the final report of examination that is the subject of the review.

“(2) EXTENSION.—The institution may file a written request with the Board for an extension of the 60-day time period described under paragraph (1), which shall state good cause for granting the extension. Such request shall be granted in the sole discretion of the Board.

“(A) identify the material supervisory determination that is the subject of the requested independent examination review;

“(B) state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and

“(iii) all relevant and material documents in the possession of the institution that the institution wishes to be considered.

“(4) INFORMATION MADE AVAILABLE TO INSTITUTION.—A financial institution seeking a review of a material supervisory determination may, not later than 7 days after receiving the final examination report, request that the Federal financial institutions regulatory agency that made the material supervisory determination provide the financial institution with all examination and factual information relied upon by the Federal financial institutions regulatory agency in making the material supervisory determination. The Federal financial institutions regulatory agency shall provide such information to the financial institution not later than 14 days after receiving the request.

“(5) SUBMISSION OF RECORD.—After receiving a written notice of review from a financial institution under this subsection, the Board shall direct the Federal financial institutions regulatory agency that made the material supervisory determination under review to file with the Board the supervisory record of the examination resulting in the material supervisory determination under review.

“(A) determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or

“(B) at the election of the financial institution, conduct a hearing, which shall take place not later than 60 days after the petition for review is received by the Board, except that such 60-day period may be extended if both the financial institution and the Board agree to such extension.

“(2) RIGHT TO OBTAIN TESTIMONY.—A financial institution electing for a hearing under paragraph (1)(B) shall have the right the obtain testimony under oath from agency employees and obtain documents and other evidence at the hearing, or in advance of the hearing, according to procedures instituted by the Board consistent with those set forth under sections 556 and 557 of title 5, United States Code.

“(3) BASIS OF DECISION.—The Board shall issue a written decision based upon the record of the examination, supplemented by the record established before the Board and at any hearing.

“(4) STANDARD OF REVIEW.—The review by the Board of a material supervisory determination under this subsection shall be de novo, and the Board shall not defer to the opinions of the examiners or the Federal financial institutions regulatory agency, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record.

“(5) POLICY MATTERS.—The Board shall conduct reviews under this section applying the policies, regulations, and interpretations of the Federal financial institutions regulatory agency that made the material supervisory determination under review in effect at the time the material supervisory determination was made.

“(d) Final decision.—A decision by the Board on an independent review under this section shall—

“(2) be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review.

“(e) Referral of violations.—If the Board, in carrying out this section, determines that a financial institution has violated a law or regulation, the Board shall refer such determination to the applicable Federal financial institutions regulatory agency.

“(1) IN GENERAL.—The Board shall report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council on actions taken under this section, including the types of issues that the Board has reviewed and the results of those reviews, including information on each final determination with respect to a material supervisory determination.

“(A) redact information about individual financial institutions and any confidential supervisory information or privileged information shared by financial institutions; and

“(B) anonymize any unredacted information that could, in the aggregate, identify a financial institution.

“(1) IN GENERAL.—A Federal financial institutions regulatory agency may not—

“(A) retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising rights under this section; or

“(B) delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that a review under this section is pending under this section.

“(2) RETALIATION.—For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of rights of a financial institution under this section.

“(h) Rulemaking.—The Board shall issue rules, consistent with subchapter II of chapter 5 of title 5, United States Code (commonly known as the ‘Administrative Procedure Act’), to establish procedures for hearings described under this section, including that—

“(1) a financial institution may appear at the hearing personally or through counsel;

“(2) a financial institution may provide an oral and written presentation at the hearing;

“(1) to affect the right of a Federal financial institutions regulatory agency to take enforcement or other supervisory actions related to a material supervisory determination under review under this section; or

“(2) to prohibit the review under this section of a material supervisory determination with respect to which there is an ongoing enforcement or other supervisory action.”.

(1) REGULATORY APPEALS PROCESS, OMBUDSMAN, AND ALTERNATIVE DISPUTE RESOLUTION.—

(A) IN GENERAL.—Section 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is amended—

(i) in the heading, by striking “Regulatory appeals process, ombudsman,” and inserting “Ombudsman”;

(iii) by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively;

“(D) ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.”; and

“(6) RETALIATION.—For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of rights under this section.”;

“(iv) any issue specifically listed in an exam report as a matter requiring attention by the management or board of directors of an institution; and

“(v) any suspension or removal of the status of an institution as eligible for expedited processing of applications, requests, notices, or filings on the grounds of a supervisory or compliance concern, regardless of whether that concern has been cited in an examination report or matter requiring attention in an examination report, if the conduct at issue did not involve violation of any criminal law; and”; and

(vi) in the table of contents, by striking the item relating to section 309 and inserting the following:

(B) TECHNICAL AND CONFORMING AMENDMENT.—Section 216(k) of the Federal Credit Union Act (12 U.S.C. 1790d(k)) is amended by striking “the independent appellate process required by section 309 of the Riegle Community Development and Regulatory Improvement Act of 1994” and inserting “section 1015 of the Federal Financial Institutions Examination Council Act of 1978”.

(i) DEFINITION.—In this subparagraph, the term “Federal banking agency”—

(I) has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and

(ii) AUTHORITY.—Nothing in this subsection affects the authority of a Federal banking agency to take enforcement or other supervisory action.

(2) FEDERAL CREDIT UNION ACT.—Section 205(j) of the Federal Credit Union Act (12 U.S.C. 1785(j)) is amended by inserting “the Bureau of Consumer Financial Protection,” before “the Administration” each place that term appears.

(3) FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT.—The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended—

“(A) means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration; and

“(B) includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;”; and

(ii) in paragraph (3), by striking the semicolon at the end and inserting “, except that for purposes of sections 1012 through 1015, the term ‘financial institution’ does not include a credit union that is not an insured credit union;”;

(B) in section 1004(a)(4) (12 U.S.C. 3303), by striking “Consumer Financial Protection Bureau” and inserting “Bureau of Consumer Financial Protection”; and

(ii) by inserting “described under section 1003(1)(A)” after “agencies”.

(1) FEDERAL DEPOSIT INSURANCE ACT.—Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended—

“(11) HEARING.—With respect to any notice properly issued and served upon a depository institution or institution-affiliated party under this subsection, such depository institution or institution-affiliated party shall be afforded a hearing before—

“(B) if such institution or person submits a request not later than 20 days after the issuance of the notice, the appropriate district court of the United States, which shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.”;

“(8) HEARING.—With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before—

“(B) if such party submits a request for such hearing and forum not later than 20 days after the issuance of the notice, the appropriate district court of the United States, which shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice, including those authorized under this subsection.”;

(i) in paragraph (1), by striking “(other than the hearing provided for in subsection (g)(3) of this section)” and inserting “(other than the hearing provided for in subsection (b)(11)(B), (e)(8)(B), (g)(3), or (i)(2)(H)(ii))”; and

“(4) Any hearing provided for in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.

“(5) Any final decision of a district court of the United States made pursuant to the election of a respondent under subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the appropriate court of appeals of the United States in the same manner and to the same extent as any other civil action to which the United States is a party.”;

“(ii) FINALITY OF ASSESSMENT.—If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.”;

“(H) HEARING.—The insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—

“(i) an agency, if such institution or person submits a request for such hearing not later than 20 days after the issuance of the notice of assessment; or

“(ii) the appropriate district court of the United States, if such institution or person submits a request for such hearing and forum not later than 20 days after the issuance of the notice of assessment.”; and

“(ii) APPROPRIATENESS OF PENALTY NOT REVIEWABLE.—In any civil action under clause (i), except a civil action tried in a district court of the United States pursuant to subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.”; and

“(x) Savings clause.—Nothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to—

“(1) limit the authority of a Federal banking agency to initiate an administrative enforcement action; or

(2) FEDERAL CREDIT UNION ACT.—Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended—

“(5) HEARING.—With respect to any notice properly issued and served upon an insured credit union, credit union which has insured accounts, or an institution-affiliated party under this subsection, such insured credit union, credit union which has insured accounts, or institution-affiliated party shall be afforded a hearing before—

“(B) if such insured credit union, credit union which has insured accounts, or institution-affiliated party submits a request not later than 20 days after the issuance of the notice, the appropriate district court of the United States, which shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.”;

“(B) if such institution-affiliated party submits a request not later than 20 days after the issuance of the notice, the appropriate district court of the United States, which shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.”;

(i) in paragraph (1), by striking “(other than the hearing provided for in subsection (i)(3) of this section)” and inserting “(other than the hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii))”; and

“(4) Any hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.

“(5) Any final decision of a district court of the United States made pursuant to the election of a respondent under subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be reviewable in the appropriate court of appeals of the United States in the same manner and to the same extent as any other civil action to which the United States is a party.”;

“(H) HEARING.—The insured credit union or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—

“(i) the Administration, if such insured credit union or institution-affiliated party submits a request for such hearing not later than 20 days after the issuance of the notice of assessment; or

“(ii) the appropriate United States district court, if such insured credit union or institution-affiliated party submits a request for such hearing and forum not later than 20 days after the issuance of the notice of assessment.”; and

“(ii) APPROPRIATENESS OF PENALTY NOT REVIEWABLE.—In any civil action under clause (i), except a civil action tried in a district court of the United States pursuant to subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.”; and

“(x) Savings clause.—Nothing in subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii) shall be construed to—

“(1) limit the authority of the Administration to initiate an administrative enforcement action; or