[Congressional Record Volume 156, Number 70 (Tuesday, May 11, 2010)]
[Senate]
[Pages S3543-S3566]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3938. Mr. DODD submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; as follows:

       On page 1455, after line 25, insert the following:

     SEC. 1077. DEPARTMENT OF THE TREASURY STUDY ON ENDING THE 
                   CONSERVATORSHIP OF FANNIE MAE, FREDDIE MAC, AND 
                   REFORMING THE HOUSING FINANCE SYSTEM.

       (a) Study Required.--
       (1) In general.--The Secretary of the Treasury shall 
     conduct a study of and develop recommendations regarding the 
     options for ending the conservatorship of the Federal 
     National Mortgage Association (in this section referred to as 
     ``Fannie Mae'') and the Federal Home Loan Mortgage 
     Corporation (in this section referred to as ``Freddie Mac''), 
     while minimizing the cost to taxpayers, including such 
     options as--
       (A) the gradual wind-down and liquidation of such entities;
       (B) the privatization of such entities;
       (C) the incorporation of the functions of such entities 
     into a Federal agency;
       (D) the dissolution of Fannie Mae and Freddie Mac into 
     smaller companies; or
       (E) any other measures the Secretary determines 
     appropriate.
       (2) Analyses.--The study required under paragraph (1) shall 
     include an analysis of--
       (A) the role of the Federal Government in supporting a 
     stable, well-functioning housing finance system, and whether 
     and to what extent the Federal Government should bear risks 
     in meeting Federal housing finance objectives;
       (B) how the current structure of the housing finance system 
     can be improved;
       (C) how the housing finance system should support the 
     continued availability of mortgage credit to all segments of 
     the market;
       (D) how the housing finance system should be structured to 
     ensure that consumers continue to have access to 30-year, 
     fixed rate, pre-payable mortgages and other mortgage products 
     that have simple terms that can be easily understood;
       (E) the role of the Federal Housing Administration and the 
     Department of Veterans Affairs in a future housing system;
       (F) the impact of reforms of the housing finance system on 
     the financing of rental housing;

[[Page S3544]]

       (G) the impact of reforms of the housing finance system on 
     secondary market liquidity;
       (H) the role of standardization in the housing finance 
     system;
       (I) how housing finance systems in other countries offer 
     insights that can help inform options for reform in the 
     United States; and
       (J) the options for transition to a reformed housing 
     finance system.
       (b) Report and Recommendations.--Not later than January 31, 
     2011, the Secretary of the Treasury shall submit the report 
     and recommendations required under subsection (a) to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives.
                                 ______
                                 
  SA 3939. Mrs. FEINSTEIN (for herself and Mr. Levin) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 699, strike line 20 and insert the following:
       ``(A) Registration.--The Commission may adopt rules and 
     regulations requiring registration with the Commission for a 
     foreign board of trade that provides the members of the 
     foreign board of trade or other participants located in the 
     United States with direct access to the electronic trading 
     and order matching system of the foreign board of trade, 
     including rules and regulations prescribing procedures and 
     requirements applicable to the registration of such foreign 
     boards of trade. For purposes of this paragraph, `direct 
     access' refers to an explicit grant of authority by a foreign 
     board of trade to an identified member or other participant 
     located in the United States to enter trades directly into 
     the trade matching system of the foreign board of trade.
       ``(B) Linked contracts.--It shall be unlawful
       On page 703, line 14, strike ``(B)'' and insert ``(C)''.
       On page 703, line 15, strike ``Subparagraph (A)'' and 
     insert ``Subparagraphs (A) and (B)''.
       On page 704, line 13, strike ``paragraphs (1) and (2) of 
     subsection (b)'' and insert ``subparagraphs (A) and (B) of 
     subsection (b)(1)''.

                                 ______
                                 
  SA 3940. Mr. BARRASSO (for himself and Mr. Enzi) submitted an 
amendment intended to be proposed by him to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page ___, between lines __ and __, insert the following:

     SEC. __. PROHIBITION.

       Notwithstanding any other provision of law, no person or 
     corporation, limited partnership, trust, or affiliate of any 
     such entity chartered as a for-profit or nonprofit entity 
     shall be eligible to sell, purchase, or trade carbon 
     derivatives as the result of the establishment by the Federal 
     Government of a carbon market.
                                 ______
                                 
  SA 3941. Mrs. McCASKILL (for herself and Mr. Kohl) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``to 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1455, line 25, strike the period at the end and 
     insert the following: ``.

     SEC. 1077. TREATMENT OF REVERSE MORTGAGES.

       (a) In General.--The Director shall examine the practices 
     of covered persons in connection with any reverse mortgage 
     transaction (as defined in section 103(bb) of the Truth in 
     Lending Act (15 U.S.C. 1602)) and shall prescribe regulations 
     identifying any acts or practices as unlawful, unfair, 
     deceptive, or abusive in connection with a reverse mortgage 
     transaction or the recommendation or offering of a reverse 
     mortgage.
       (b) Regulations.--In prescribing regulations under 
     subsection (a), the Director shall ensure that such 
     regulations shall--
       (1) include requirements for the purpose of--
       (A) preventing unlawful, unfair, deceptive or abusive acts 
     and practices in connection with a reverse mortgage 
     transaction (including the solicitation or recommendation of 
     a reverse mortgage transaction);
       (B) providing timely, appropriate, and effective 
     disclosures to consumers in connection with a reverse 
     mortgage transaction that incorporate the requirements of 
     section 138 of the Truth in Lending Act (15 U.S.C. 1648), and 
     otherwise are consistent with requirements prescribed by the 
     Director in connection with other consumer mortgage products 
     or services under this title, including--
       (i) an annual statement of the total available principal 
     and outstanding balance of the reverse mortgage; and
       (ii) a statement at the closing of the reverse mortgage of 
     the total projected cost of the reverse mortgage; and
       (C) a determination of the suitability of a reverse 
     mortgage for a consumer, taking into consideration--
       (i) whether the mortgagor intends to reside in the property 
     on a long-term basis;
       (ii) in the case of a mortgagor who plans to use the funds 
     obtained from the reverse mortgage to purchase an annuity or 
     make an investment--

       (I) whether the annuity or investment is in the best 
     interests of the mortgagor;
       (II) whether the costs of obtaining such mortgage exceeds 
     the anticipated earnings from such annuity or investment; and
       (III) whether the date on which the annuity or investment 
     is scheduled to mature is beyond the life expectancy of the 
     mortgagor;

       (iii) if the mortgagor is married or has a dependent, the 
     potential impact of a reverse mortgage on the future economic 
     security of the spouse or dependent of the mortgagor and all 
     tenants of the home;
       (iv) whether a reverse mortgage will affect the eligibility 
     of the mortgagor to receive Government benefits;
       (v) whether the mortgagor intends to pass the residence to 
     an heir and the ability of such heir to repay the reverse 
     mortgage loan;
       (vi) whether a resident of the home who is not the 
     mortgagor could be displaced at the maturity of the reverse 
     mortgage against the wishes of the mortgagor, and, if any 
     such resident is disabled, the consequences of the 
     displacement for such resident; and
       (vii) any other circumstances, as the Director may require;
       (2) with respect to the requirements under paragraph (1), 
     be consistent with requirements prescribed by the Director in 
     connection with other consumer mortgage products or services 
     under this title;
       (3) provide for an integrated disclosure standard and model 
     disclosures for reverse mortgage transactions, that combines 
     the relevant disclosures required under the Truth in Lending 
     Act (15 U.S.C. 1601 et seq.) and the Real Estate Settlement 
     Procedures Act, with the disclosures required to be provided 
     to consumers for home equity conversion mortgages under 
     section 255 of the National Housing Act (12 U.S.C. 1715z-20);
       (4) prohibit any person from advertising a reverse mortgage 
     in a manner that--
       (A) is false or misleading;
       (B) fails to present equally the risks and benefits of 
     reverse mortgages; or
       (C) fails to reveal--
       (i) negative facts that are material to a representation 
     made in such advertisement;
       (ii) facts relating to the responsibilities of the 
     mortgagor for property taxes, insurance, maintenance, or 
     repairs and the consequences of failing to meet such 
     responsibilities, including default and foreclosure;
       (iii) the consequences of obtaining a reverse mortgage; or
       (iv) any forms of default that might lead to foreclosure;
       (5) prohibit a mortgagee from requiring or recommending 
     that a mortgagor purchase insurance (except for title, flood, 
     and other peril insurance, as determined by the Director), an 
     annuity, or other similar product in connection with a 
     reverse mortgage;
       (6) require that each reverse mortgage provide that 
     prepayment, in whole or in part, may be made without penalty 
     at any time during the period of the mortgage;
       (7) require that any mortgagor under a reverse mortgage 
     receive adequate counseling, including--
       (A) in the case of a reverse mortgage in which a person was 
     removed from the title to the dwelling, information about--
       (i) the consequences of being removed from such title; and
       (ii) the consequences upon the death of the mortgagor or a 
     divorce settlement;
       (B) general information about the potential consequences of 
     borrowing more funds than are necessary to meet the immediate 
     personal financial goals of the mortgagor;
       (C) the responsibilities of the mortgagor relating to 
     property taxes, insurance, maintenance, and repairs and the 
     consequences of failing to meet such responsibilities, 
     including default and foreclosure;
       (D) an explanation of the actions that would constitute a 
     default under the terms of the reverse mortgage and how a 
     default might lead to foreclosure; and
       (E) any other information that the Director may require; 
     and
       (8) require that any person that provides counseling to a 
     mortgagor under a reverse mortgage report to the Bureau any 
     suspected mortgage-related fraud against a mortgagor.

[[Page S3545]]

       (c) Consultation.--In connection with the issuance of any 
     regulations under this section, the Director shall consult 
     with the Federal banking agencies, State bank supervisors, 
     the Federal Trade Commission, and the Department of Housing 
     and Urban Development, as appropriate, to ensure that any 
     proposed regulation--
       (1) imposes substantially similar requirements on all 
     covered persons; and
       (2) is consistent with prudential, consumer protection, 
     civil rights, market, or systemic objectives administered by 
     such agencies or supervisors.
       (d) Deadline for Rulemaking.--The Director shall commence 
     the rulemaking required under subsection (a) not later than 
     12 months after the date of enactment of this Act.
                                 ______
                                 
  SA 3942. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 74, between lines 2 and 3, insert the following:
       (D) Prohibition on collection of nonpublic personal 
     information.--Notwithstanding any other provision of law, the 
     Council and the Office of Financial Research may not require 
     the submission of nonpublic personal information (as that 
     term is defined in section 509 of the Gramm-Leach-Bliley Act 
     (12 U.S.C. 6809)) of any customer by any financial company or 
     in any other manner.
                                 ______
                                 
  SA 3943. Mr. REED (for himself and Mr. Brown of Massachusetts) 
submitted an amendment intended to be proposed to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1219, after line 25, insert the following:
       ``(e) Office of Service Member Affairs.--
       ``(1) In general.--The Director 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) educate and empower service members and their 
     families to make better informed decisions regarding consumer 
     financial products and services;
       ``(B) coordinate with the unit of the Bureau established 
     under subsection (b)(3), in order to monitor complaints by 
     service members and their families and responses to those 
     complaints by the Bureau or other appropriate Federal or 
     State agency; and
       ``(C) coordinate efforts among Federal and State agencies, 
     as appropriate, regarding consumer protection measures 
     relating to consumer financial products and services offered 
     to, or used by, service members and their families.
       ``(2) Coordination.--
       ``(A) Regional services.--The Director 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 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.
       ``(3) Definition.--As used in this subsection, the term 
     `service member' means any member of the United States Armed 
     Forces and any member of the National Guard or Reserves.''.
                                 ______
                                 
  SA 3944. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1089, strike line 6 and all that follows through 
     ``SEC. 973.''
                                 ______
                                 
  SA 3945. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1045, strike line 12 and all that follows through 
     ``SEC. 942.'' on page 1052, line 3, and insert the following:
       (b) Study on Risk Retention.--
       (1) Study.--
       (A) In general.--The Board of Governors, in coordination 
     and consultation with the Comptroller of the Currency, the 
     Corporation, the Federal Housing Finance Agency, and the 
     Commission, shall conduct a study of the asset-backed 
     securitization process.
       (B) Issues to be studied.--In conducting the study under 
     subparagraph (A), the Board of Governors shall evaluate--
       (i) the separate and combined impact of--

       (I) requiring loan originators or securitizers to retain an 
     economic interest in a portion of the credit risk for any 
     asset that the securitizer, through the issuance of an asset-
     backed security, transfers, sells, or conveys to a third 
     party; including--

       (aa) whether existing risk retention requirements such as 
     contractual representations and warranties, and statutory and 
     regulatory underwriting and consumer protection requirements 
     are sufficient to ensure the long-term accountability of 
     originators for loans they originate; and
       (bb) methodologies for establishing additional statutory 
     credit risk retention requirements;

       (II) the Financial Accounting Statements 166 and 167 issued 
     by the Financial Accounting Standards Board, as well as any 
     other statements issued before or after the date of enactment 
     of this section the Federal banking agencies determine to be 
     relevant;

       (ii) the impact of the factors described under subsection 
     (i) of this section on--

       (I) different classes of assets, such as residential 
     mortgages, commercial mortgages, commercial loans, auto 
     loans, and other classes of assets;
       (II) loan originators;
       (III) securitizers;
       (IV) access of consumers and businesses to credit on 
     reasonable terms.

       (2) Report.--Not later than 18 months after the date of 
     enactment of this section, the Board of Governors shall 
     submit to Congress a report on the study conducted under 
     paragraph (1). Such report shall include statutory and 
     regulatory recommendations for eliminating any negative 
     impacts on the continued viability of the asset-backed 
     securitization markets and on the availability of credit for 
     new lending identified by the study conducted under paragraph 
     (1).

     SEC. 942. RESIDENTIAL MORTGAGE UNDERWRITING STANDARDS.

       (a) Standards Established.--Notwithstanding any other 
     provision of this Act or any other provision of Federal, 
     State, or local law, the Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development, shall jointly 
     establish specific minimum standards for mortgage 
     underwriting, including--
       (1) a requirement that the mortgagee verify and document 
     the income and assets relied upon to qualify the mortgagor on 
     the residential mortgage, including the previous employment 
     and credit history of the mortgagor;
       (2) a down payment requirement that--
       (A) is equal to not less than 5 percent of the purchase 
     price of the property securing the residential mortgage; and
       (B) in the case of a first lien residential mortgage loan 
     with an initial loan to value ratio that is more than 80 
     percent and not more than 95 percent, includes a requirement 
     for credit enhancements, as defined by the Federal banking 
     agencies, until the loan to value ratio of the residential 
     mortgage loan amortizes to a value that is less than 80 
     percent of the purchase price;
       (3) a method for determining the ability of the mortgagor 
     to repay the residential mortgage that is based on factors 
     including--
       (A) all terms of the residential mortgage, including 
     principal payments that fully amortize the balance of the 
     residential mortgage over the term of the residential 
     mortgage; and
       (B) the debt to income ratio of the mortgagor; and
       (4) any other specific standards the Federal banking 
     agencies jointly determine are appropriate to ensure prudent 
     underwriting of residential mortgages.
       (b) Updates to Standards.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development--
       (1) shall review the standards established under this 
     section not less frequently than every 5 years; and
       (2) based on the review under paragraph (1), may revise the 
     standards established under

[[Page S3546]]

     this section, as the Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development, determine to be 
     necessary.
       (c) Compliance.--It shall be a violation of Federal law--
       (1) for any mortgage loan originator to fail to comply with 
     the minimum standards for mortgage underwriting established 
     under subsection (a) in originating a residential mortgage 
     loan;
       (2) for any company to maintain an extension of credit on a 
     revolving basis to any person to fund a residential mortgage 
     loan, unless the company reasonably determines that the 
     residential mortgage loan funded by such credit was subject 
     to underwriting standards no less stringent than the minimum 
     standards for mortgage underwriting established under 
     subsection (a); or
       (3) for any company to purchase, fund by assignment, or 
     guarantee a residential mortgage loan, unless the company 
     reasonably determines that the residential mortgage loan was 
     subject to underwriting standards no less stringent than the 
     minimum standards for mortgage underwriting established under 
     subsection (a).
       (d) Implementation.--
       (1) Regulations required.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency, shall 
     issue regulations to implement subsections (a) and (c), which 
     shall take effect not later than 270 days after the date of 
     enactment of this Act.
       (2) Report required.--If the Federal banking agencies have 
     not issued final regulations under subsections (a) and (c) 
     before the date that is 270 days after the date of enactment 
     of this Act, the Federal banking agencies shall jointly 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that--
       (A) explains why final regulations have not been issued 
     under subsections (a) and (c); and
       (B) provides a timeline for the issuance of final 
     regulations under subsections (a) and (c).
       (e) Enforcement.--Compliance with the rules issued under 
     this section shall be enforced by--
       (1) the primary financial regulatory agency of an entity, 
     with respect to an entity subject to the jurisdiction of a 
     primary financial regulatory agency, in accordance with the 
     statutes governing the jurisdiction of the primary financial 
     regulatory agency over the entity and as if the action of the 
     primary financial regulatory agency were taken under such 
     statutes; and
       (2) the Bureau, with respect to a company that is not 
     subject to the jurisdiction of a primary financial regulatory 
     agency.
       (f) Exemptions for Certain Nonprofit Mortgage Loan 
     Originators.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Federal banking agencies, in 
     consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury, may jointly 
     issue rules to exempt from the requirements under subsection 
     (a)(2), mortgage loan originators that are exempt from 
     taxation under section 501(c)(3) of the Internal Revenue Code 
     of 1986.
       (2) Determining factors.--The Federal banking agencies 
     shall ensure that--
       (A) the lending activities of a mortgage loan originator 
     that receives an exemption under this subsection do not 
     threaten the safety and soundness of the banking system of 
     the United States; and
       (B) a mortgage loan originator that receives an exemption 
     under this subsection--
       (i) is not compensated based on the number or value of 
     residential mortgage loan applications accepted, offered, or 
     negotiated by the mortgage loan originator;
       (ii) does not offer residential mortgage loans that have an 
     interest rate greater than zero percent;
       (iii) does not gain a monetary profit from any residential 
     mortgage product or service provided;
       (iv) has the primary purpose of serving low income housing 
     needs;
       (v) has not been specifically prohibited, by statute, from 
     receiving Federal funding; and
       (vi) meets any other requirements that the Federal banking 
     agencies jointly determine are appropriate for ensuring that 
     a mortgage loan originator that receives an exemption under 
     this subsection does not threaten the safety and soundness of 
     the banking system of the United States.
       (3) Reports required.--Before the issuance of final rules 
     under subsection (a), and annually thereafter, the Federal 
     banking agencies shall jointly submit to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives a report that--
       (A) identifies the mortgage loan originators that receive 
     an exemption under this subsection; and
       (B) for each mortgage loan originator identified under 
     subparagraph (A), the rationale for providing an exemption.
       (4) Updates to exemptions.--The Federal banking agencies, 
     in consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury--
       (A) shall review the exemptions established under this 
     subsection not less frequently than every 2 years; and
       (B) based on the review under subparagraph (A), may revise 
     the standards established under this subsection, as the 
     Federal banking agencies, in consultation with the Secretary 
     of Housing and Urban Development and the Secretary of the 
     Treasury, determine to be necessary.
       (g) Rules of Construction.--Nothing in this section may be 
     construed to permit--
       (1) the Federal National Mortgage Association or the 
     Federal Home Loan Mortgage Corporation to make or guarantee a 
     residential mortgage loan that does not meet the minimum 
     underwriting standards established under this section; or
       (2) the Federal banking agencies to issue an exemption 
     under subsection (f) that is not on a case-by-case basis.
       (h) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Company.--The term ``company''--
       (A) has the same meaning as in section 2(b) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841(b)); and
       (B) includes a sole proprietorship.
       (2) Mortgage loan originator.--The term ``mortgage loan 
     originator'' means any company that takes residential 
     mortgage loan applications and offers or negotiates terms of 
     residential mortgage loans.
       (3) Residential mortgage loan.--The term ``residential 
     mortgage loan''--
       (A) means any extension of credit primarily for personal, 
     family, or household use that is secured by a mortgage, deed 
     of trust, or other equivalent security interest in a dwelling 
     or residential real estate upon which is constructed or 
     intended to be constructed a dwelling; and
       (B) does not include a mortgage loan for which mortgage 
     insurance is provided by the Department of Veterans Affairs, 
     the Federal Housing Administration, or the Rural Housing 
     Administration.
       (4) Extension of credit; dwelling.--The terms ``extension 
     of credit'' and ``dwelling'' shall have the same meaning as 
     in section 103 of the Truth in Lending Act (15 U.S.C. 1602).

     SEC. 943. STUDY ON FEDERAL HOUSING ADMINISTRATION 
                   UNDERWRITING STANDARDS.

       (a) Study.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study evaluating whether the 
     underwriting criteria used by the Federal Housing 
     Administration are sufficient to ensure the solvency of the 
     Mutual Mortgage Insurance Fund of the Federal Housing 
     Administration and the safety and soundness of the banking 
     system of the United States.
       (2) Issues to be studied.--In conducting the study under 
     paragraph (1), the Comptroller General shall evaluate--
       (A) down payment requirements for Federal Housing 
     Administration borrowers;
       (B) default rates of mortgages insured by the Federal 
     Housing Administration;
       (C) characteristics of Federal Housing Administration 
     borrowers who are most likely to default;
       (D) taxpayer exposure to losses incurred by the Federal 
     Housing Administration;
       (E) the impact of the market share of the Federal Housing 
     Administration on efforts to sustain a viable private 
     mortgage market; and
       (F) any other factors that Comptroller General determines 
     are appropriate.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under subsection 
     (a) that includes recommendations for statutory improvements 
     to be made to the underwriting criteria used by the Federal 
     Housing Administration, to ensure the solvency of the Mutual 
     Mortgage Insurance Fund of the Federal Housing Administration 
     and the safety and soundness of the banking system of the 
     United States.

     SEC. 944.

                                 ______
                                 
  SA 3946. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1045, strike line 12 and all that follows through 
     ``SEC. 942.'' on page 1052, line 3, and insert the following:
       (b) Study on Risk Retention.--
       (1) Study.--
       (A) In general.--The Board of Governors, in coordination 
     and consultation with the Comptroller of the Currency, the 
     Corporation, the Federal Housing Finance Agency, and the 
     Commission, shall conduct a study of the asset-backed 
     securitization process.
       (B) Issues to be studied.--In conducting the study under 
     subparagraph (A), the Board of Governors shall evaluate--
       (i) the separate and combined impact of--

       (I) requiring loan originators or securitizers to retain an 
     economic interest in a portion of the credit risk for any 
     asset that the securitizer, through the issuance of an asset-
     backed security, transfers, sells, or conveys to a third 
     party; including--

[[Page S3547]]

       (aa) whether existing risk retention requirements such as 
     contractual representations and warranties, and statutory and 
     regulatory underwriting and consumer protection requirements 
     are sufficient to ensure the long-term accountability of 
     originators for loans they originate; and
       (bb) methodologies for establishing additional statutory 
     credit risk retention requirements;

       (II) the Financial Accounting Statements 166 and 167 issued 
     by the Financial Accounting Standards Board, as well as any 
     other statements issued before or after the date of enactment 
     of this section the Federal banking agencies determine to be 
     relevant;

       (ii) the impact of the factors described under subsection 
     (i) of this section on--

       (I) different classes of assets, such as residential 
     mortgages, commercial mortgages, commercial loans, auto 
     loans, and other classes of assets;
       (II) loan originators;
       (III) securitizers;
       (IV) access of consumers and businesses to credit on 
     reasonable terms.

       (2) Report.--Not later than 18 months after the date of 
     enactment of this section, the Board of Governors shall 
     submit to Congress a report on the study conducted under 
     paragraph (1). Such report shall include statutory and 
     regulatory recommendations for eliminating any negative 
     impacts on the continued viability of the asset-backed 
     securitization markets and on the availability of credit for 
     new lending identified by the study conducted under paragraph 
     (1).

     SEC. 942. RESIDENTIAL MORTGAGE UNDERWRITING STANDARDS.

       (a) Standards Established.--Notwithstanding any other 
     provision of this Act or any other provision of Federal, 
     State, or local law, the Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development, shall jointly 
     establish specific minimum standards for mortgage 
     underwriting, including--
       (1) a requirement that the mortgagee verify and document 
     the income and assets relied upon to qualify the mortgagor on 
     the residential mortgage, including the previous employment 
     and credit history of the mortgagor;
       (2) a down payment requirement;
       (3) a method for determining the ability of the mortgagor 
     to repay the residential mortgage that is based on factors 
     including--
       (A) all terms of the residential mortgage, including 
     principal payments that fully amortize the balance of the 
     residential mortgage over the term of the residential 
     mortgage; and
       (B) the debt to income ratio of the mortgagor; and
       (4) any other specific standards the Federal banking 
     agencies jointly determine are appropriate to ensure prudent 
     underwriting of residential mortgages.
       (b) Updates to Standards.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development--
       (1) shall review the standards established under this 
     section not less frequently than every 5 years; and
       (2) based on the review under paragraph (1), may revise the 
     standards established under this section, as the Federal 
     banking agencies, in consultation with the Federal Housing 
     Finance Agency and the Department of Housing and Urban 
     Development, determine to be necessary.
       (c) Compliance.--It shall be a violation of Federal law--
       (1) for any mortgage loan originator to fail to comply with 
     the minimum standards for mortgage underwriting established 
     under subsection (a) in originating a residential mortgage 
     loan;
       (2) for any company to maintain an extension of credit on a 
     revolving basis to any person to fund a residential mortgage 
     loan, unless the company reasonably determines that the 
     residential mortgage loan funded by such credit was subject 
     to underwriting standards no less stringent than the minimum 
     standards for mortgage underwriting established under 
     subsection (a); or
       (3) for any company to purchase, fund by assignment, or 
     guarantee a residential mortgage loan, unless the company 
     reasonably determines that the residential mortgage loan was 
     subject to underwriting standards no less stringent than the 
     minimum standards for mortgage underwriting established under 
     subsection (a).
       (d) Implementation.--
       (1) Regulations required.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency, shall 
     issue regulations to implement subsections (a) and (c), which 
     shall take effect not later than 270 days after the date of 
     enactment of this Act.
       (2) Report required.--If the Federal banking agencies have 
     not issued final regulations under subsections (a) and (c) 
     before the date that is 270 days after the date of enactment 
     of this Act, the Federal banking agencies shall jointly 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that--
       (A) explains why final regulations have not been issued 
     under subsections (a) and (c); and
       (B) provides a timeline for the issuance of final 
     regulations under subsections (a) and (c).
       (e) Enforcement.--Compliance with the rules issued under 
     this section shall be enforced by--
       (1) the primary financial regulatory agency of an entity, 
     with respect to an entity subject to the jurisdiction of a 
     primary financial regulatory agency, in accordance with the 
     statutes governing the jurisdiction of the primary financial 
     regulatory agency over the entity and as if the action of the 
     primary financial regulatory agency were taken under such 
     statutes; and
       (2) the Bureau, with respect to a company that is not 
     subject to the jurisdiction of a primary financial regulatory 
     agency.
       (f) Rule of Construction.--Nothing in this section may be 
     construed to permit the Federal National Mortgage Association 
     or the Federal Home Loan Mortgage Corporation to make or 
     guarantee a residential mortgage loan that does not meet the 
     minimum underwriting standards established under this 
     section.
       (g) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Company.--The term ``company''--
       (A) has the same meaning as in section 2(b) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841(b)); and
       (B) includes a sole proprietorship.
       (2) Mortgage loan originator.--The term ``mortgage loan 
     originator'' means any company that takes residential 
     mortgage loan applications and offers or negotiates terms of 
     residential mortgage loans.
       (3) Residential mortgage loan.--The term ``residential 
     mortgage loan''--
       (A) means any extension of credit primarily for personal, 
     family, or household use that is secured by a mortgage, deed 
     of trust, or other equivalent security interest in a dwelling 
     or residential real estate upon which is constructed or 
     intended to be constructed a dwelling; and
       (B) does not include a mortgage loan for which mortgage 
     insurance is provided by the Department of Veterans Affairs, 
     the Federal Housing Administration, and the Rural Housing 
     Administration.
       (4) Extension of credit; dwelling.--The terms ``extension 
     of credit'' and ``dwelling'' shall have the same meaning as 
     in section 103 of the Truth in Lending Act (15 U.S.C. 1602).

     SEC. 943.

                                 ______
                                 
  SA 3947. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill S. 3217, to promote the financial stability of the 
United States by improving accountability and transparency in the 
financial system, to end ``too big to fail'', to protect the American 
taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end of title II, insert the following:

     SEC. ___. PREVENT THE DISSOLUTION OF ANY LARGE FINANCIAL 
                   COMPANY BY THE FDIC IF THE DISSOLUTION WOULD 
                   INCREASE THE DEFICIT.

       The Corporation may not dissolve any large financial 
     company unless the dissolution has been reviewed by the 
     Director of the Office of Management and Budget and the 
     Director has certified that the dissolution will not increase 
     the Federal deficit.
                                 ______
                                 
  SA 3948. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill S. 3217, to promote the financial stability of the 
United States by improving accountability and transparency in the 
financial system, to end ``too big to fail'', to protect the American 
taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end of title X, insert the following:

     SEC. ___. PREVENT COMPLIANCE COSTS FOR BCFP REGULATION FROM 
                   BEING PASSED TO THE CONSUMER.

       The Bureau of Consumer Financial Protection may not adopt 
     any regulation unless the regulation has been reviewed by the 
     Director of the Office of Management and Budget and the 
     Director has certified that the regulation will not bear any 
     costs onto consumers.
                                 ______
                                 
  SA 3949. Mr. CARPER (for himself, Mr. Corker, Mr. Bayh, Mr. Ensign, 
Mr. Johnson, and Mr. Warner) submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1315, strike line 18, and all that follows through 
     page 1325, line 20 and insert the following:
       ``(B) the State consumer financial law is preempted in 
     accordance with the legal standards of the decision of the 
     Supreme Court in Barnett Bank v. Nelson (517 U.S. 25

[[Page S3548]]

     (1996)), and any preemption determination under this 
     subparagraph may be made by a court or by regulation or order 
     of the Comptroller of the Currency, on a case-by-case basis, 
     in accordance with applicable law; or
       ``(C) the State consumer financial law is preempted by a 
     provision of Federal law other than this title.
       ``(2) Savings clause.--This title does not preempt, annul, 
     or affect the applicability of any State law to any 
     subsidiary or affiliate of a national bank (other than a 
     subsidiary or affiliate that is chartered as a national 
     bank).
       ``(3) Case-by-case basis.--
       ``(A) Definition.--As used in this section the term `case-
     by-case basis' refers to a determination pursuant to this 
     section made by the Comptroller concerning the impact of a 
     particular State consumer financial law on any national bank 
     that is subject to that law, or the law of any other State 
     with substantively equivalent terms.
       ``(B) Consultation.--When making a determination on a case-
     by-case basis that a State consumer financial law of another 
     State has substantively equivalent terms as one that the 
     Comptroller is preempting, the Comptroller shall first 
     consult with the Bureau of Consumer Financial Protection and 
     shall take the views of the Bureau into account when making 
     the determination.
       ``(4) Rule of construction.--This title does not occupy the 
     field in any area of State law.
       ``(5) Standards of review.--
       ``(A) Preemption.--A court reviewing any determinations 
     made by the Comptroller regarding preemption of a State law 
     by this title shall assess the validity of such 
     determinations, depending upon the thoroughness evident in 
     the consideration of the agency, the validity of the 
     reasoning of the agency, the consistency with other valid 
     determinations made by the agency, and other factors which 
     the court finds persuasive and relevant to its decision.
       ``(B) Savings clause.--Except as provided in subparagraph 
     (A), nothing in this section shall affect the deference that 
     a court may afford to the Comptroller in making 
     determinations regarding the meaning or interpretation of 
     title LXII of the Revised Statutes of the United States or 
     other Federal laws.
       ``(6) Comptroller determination not delegable.--Any 
     regulation, order, or determination made by the Comptroller 
     of the Currency under paragraph (1)(B) shall be made by the 
     Comptroller, and shall not be delegable to another officer or 
     employee of the Comptroller of the Currency.
       ``(c) Substantial Evidence.--No regulation or order of the 
     Comptroller of the Currency prescribed under subsection 
     (b)(1)(B), shall be interpreted or applied so as to 
     invalidate, or otherwise declare inapplicable to a national 
     bank, the provision of the State consumer financial law, 
     unless substantial evidence, made on the record of the 
     proceeding, supports the specific finding regarding the 
     preemption of such provision in accordance with the legal 
     standard of the decision of the Supreme Court of the United 
     States in Barnett Bank of Marion County, N.A. v. Nelson, 
     Florida Insurance Commissioner, et al., 517 U.S. 25 (1996).
       ``(d) Periodic Review of Preemption Determinations.--
       ``(1) In general.--The Comptroller of the Currency shall 
     periodically conduct a review, through notice and public 
     comment, of each determination that a provision of Federal 
     law preempts a State consumer financial law. The agency shall 
     conduct such review within the 5-year period after 
     prescribing or otherwise issuing such determination, and at 
     least once during each 5-year period thereafter. After 
     conducting the review of, and inspecting the comments made 
     on, the determination, the agency shall publish a notice in 
     the Federal Register announcing the decision to continue or 
     rescind the determination or a proposal to amend the 
     determination. Any such notice of a proposal to amend a 
     determination and the subsequent resolution of such proposal 
     shall comply with the procedures set forth in subsections (a) 
     and (b) of section 5244 of the Revised Statutes of the United 
     States (12 U.S.C. 43 (a), (b)).
       ``(2) Reports to congress.--At the time of issuing a review 
     conducted under paragraph (1), the Comptroller of the 
     Currency shall submit a report regarding such review to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate. The report submitted to the 
     respective committees shall address whether the agency 
     intends to continue, rescind, or propose to amend any 
     determination that a provision of Federal law preempts a 
     State consumer financial law, and the reasons therefor.
       ``(e) Application of State Consumer Financial Law to 
     Subsidiaries and Affiliates.--Notwithstanding any provision 
     of this title, a State consumer financial law shall apply to 
     a subsidiary or affiliate of a national bank (other than a 
     subsidiary or affiliate that is chartered as a national bank) 
     to the same extent that the State consumer financial law 
     applies to any person, corporation, or other entity subject 
     to such State law.
       ``(f) Preservation of Powers Related to Charging 
     Interest.--No provision of this title shall be construed as 
     altering or otherwise affecting the authority conferred by 
     section 5197 of the Revised Statutes of the United States (12 
     U.S.C. 85) for the charging of interest by a national bank at 
     the rate allowed by the laws of the State, territory, or 
     district where the bank is located, including with respect to 
     the meaning of `interest' under such provision.
       ``(g) Transparency of OCC Preemption Determinations.--The 
     Comptroller of the Currency shall publish and update no less 
     frequently than quarterly, a list of preemption 
     determinations by the Comptroller of the Currency then in 
     effect that identifies the activities and practices covered 
     by each determination and the requirements and constraints 
     determined to be preempted.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     one of title LXII of the Revised Statutes of the United 
     States is amended by inserting after the item relating to 
     section 5136B the following new item:

``Sec. 5136C. State law preemption standards for national banks and 
              subsidiaries clarified.''.

     SEC. 1045. CLARIFICATION OF LAW APPLICABLE TO NONDEPOSITORY 
                   INSTITUTION SUBSIDIARIES.

       Section 5136C of the Revised Statutes of the United States 
     (as added by this subtitle) is amended by adding at the end 
     the following:
       ``(i) Clarification of Law Applicable to Nondepository 
     Institution Subsidiaries and Affiliates of National Banks.--
       ``(1) Definitions.--For purposes of this subsection, the 
     terms `depository institution', `subsidiary', and `affiliate' 
     have the same meanings as in section 3 of the Federal Deposit 
     Insurance Act.
       ``(2) Rule of construction.--No provision of this title 
     shall be construed as preempting, annulling, or affecting the 
     applicability of State law to any subsidiary, affiliate, or 
     agent of a national bank (other than a subsidiary, affiliate, 
     or agent that is chartered as a national bank).''.

     SEC. 1046. STATE LAW PREEMPTION STANDARDS FOR FEDERAL SAVINGS 
                   ASSOCIATIONS AND SUBSIDIARIES CLARIFIED.

       (a) In General.--The Home Owners' Loan Act (12 U.S.C. 1461 
     et seq.) is amended by inserting after section 5 the 
     following new section:

     ``SEC. 6. STATE LAW PREEMPTION STANDARDS FOR FEDERAL SAVINGS 
                   ASSOCIATIONS CLARIFIED.

       ``(a) In General.--Any determination by a court or by the 
     Director or any successor officer or agency regarding the 
     relation of State law to a provision of this Act or any 
     regulation or order prescribed under this Act shall be made 
     in accordance with the laws and legal standards applicable to 
     national banks regarding the preemption of State law.
       ``(b) Principles of Conflict Preemption Applicable.--
     Notwithstanding the authorities granted under sections 4 and 
     5, this Act does not occupy the field in any area of State 
     law.''.
       (b) Clerical Amendment.--The table of sections for the Home 
     Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended by 
     striking the item relating to section 6 and inserting the 
     following new item:

``Sec. 6. State law preemption standards for Federal savings 
              associations and subsidiaries clarified.''.

     SEC. 1047. VISITORIAL STANDARDS FOR NATIONAL BANKS AND 
                   SAVINGS ASSOCIATIONS.

       (a) National Banks.--Section 5136C of the Revised Statutes 
     of the United States (as added by this subtitle) is amended 
     by adding at the end the following:
       ``(j) Visitorial Powers.--
       ``(1) In general.--In accordance with the decision of the 
     Supreme Court of the United States in Cuomo v. Clearing House 
     Assn., L. L. C., 5 (129 S. Ct. 2710 (2009)), no provision of 
     this title which relates to visitorial powers or otherwise 
     limits or restricts the visitorial authority to which any 
     national bank is subject shall be construed as limiting or 
     restricting the authority of any attorney general (or other 
     chief law enforcement officer) of any State to bring an 
     action in a court of appropriate jurisdiction to enforce an 
     applicable nonpreempted State law against a national bank, as 
     authorized by such law, and to seek relief as authorized by 
     such law.
       ``(2) Exclusion.--The powers granted to State attorneys 
     general and State regulators under section 1042 of the 
     Restoring American Financial Stability Act of 2010 shall not 
     apply to any national bank, or any subsidiary thereof, 
     regulated by the Office of the Comptroller of the Currency.
       ``(k) Enforcement Actions.--The ability of the Comptroller 
     of the Currency to bring an enforcement action under this 
     title or section 5 of the Federal Trade Commission Act does 
     not preclude any private party from enforcing rights granted 
     under Federal or State law in the courts.''.
       (b) Savings Associations.--Section 6 of the Home Owners' 
     Loan Act (as added by this title) is amended by adding at the 
     end the following:
       ``(c) Visitorial Powers.--The provisions of sections 
     5136C(j) of the Revised Statutes of the United States shall 
     apply to Federal savings associations, and any subsidiary 
     thereof, to the same extent and in the same manner as if such 
     savings associations, or subsidiaries thereof, were national 
     banks or subsidiaries of national banks, respectively.
                                 ______
                                 
  SA 3950. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and

[[Page S3549]]

Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``to big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 706, line 5, strike ``transaction'' and all that 
     follows through the period on line 9, and insert the 
     following: ``transaction to meet the definition of a swap 
     under section 1a.''.
                                 ______
                                 
  SA 3951. Mr. MENENDEZ (for himself and Mr. Bayh) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``to 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 615, line 18, strike ``all'' and all that follows 
     through line 21, and insert the following: ``and the 
     registered swap data repositories all information that is 
     determined by the Commission to be necessary for the 
     Commission and each of the swap data repositories to perform 
     their respective responsibilities under this Act''.
       On page 623, line 12, strike ``In this paragraph'' and 
     insert ``Subject to subparagraph (E), in this paragraph''.
       On page 624, line 18, strike ``With'' and all that follows 
     through ``subsection (h),'' on line 22, and insert the 
     following: ``The registered swap data repositories or''.
       On page 625, strike line 2, and insert the following: 
     ``swap trading volumes and positions for both cleared and 
     uncleared trades.''.
       On page 625, line 3, strike ``With respect'' and insert 
     ``Subject to subparagraph (E), with respect''.
       On page 625, line 6, strike ``(10)'' and insert ``(9)''.
       On page 630, line 14, insert ``on an aggregate basis for 
     both cleared and uncleared trades'' after ``swap data''.
       On page 637, strike line 17 and all that follows through 
     page 638, line 12.
       On page 810, line 22, after the first period, insert the 
     following:
       ``(m) Duty of Clearing Agency.--Each clearing agency that 
     clears security-based swaps shall provide to the Commission 
     and the registered security-based swap data repositories all 
     information that is determined by the Commission to be 
     necessary for the Commission and each of the security-based 
     swap data repositories to perform their respective 
     responsibilities under this Act.
       On page 835, line 7, strike ``In this paragraph'' and 
     insert ``Subject to subparagraph (E), in this paragraph''.
       On page 836, line 14, strike ``With'' and all that follows 
     through ``section 3C(a),'' on line 18, and insert the 
     following: ``The registered security-based swap data 
     repositories or''.
       On page 836, strike lines 23 and 24, and insert the 
     following: ``security-based swap trading volumes and 
     positions for both cleared and uncleared trades.''.
       On page 837, lines 3 and 4, strike ``but are subject to the 
     requirements of section 3C(a)(8)'' and insert ``pursuant to 
     section 3C(a)(9)''.
       On page 842, line 9, before the semicolon insert ``on an 
     aggregate basis for both cleared and uncleared trades, 
     including compliance and frequency of end user clearing 
     exemption claims by individual and affiliated entities''.
       On page 883, strike line 7 and all that follows through 
     page 884, line 9.
                                 ______
                                 
  SA 3952. Mr. SCHUMER submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 510, strike lines 1 through 7.
       On page 525, strike lines 5 through 9.
                                 ______
                                 
  SA 3953. Mr. SCHUMER submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 553, strike line 18 and all that follows through 
     page 554, line 2, and insert the following:
       ``(iii) Reporting.--All foreign exchange swaps and foreign 
     exchange forwards shall be reported to a registered swap data 
     repository described under section 21 within such time period 
     as the Commission may by rule or regulation prescribe.''.
       On page 555, line 12, strike ``, calculates, prepares, or'' 
     and insert ``and''.
       On page 555, line 13, strike ``transactions or''.
       On page 555, line 14, strike ``and conditions''.
       On page 555, line 15, before the period insert ``for the 
     purpose of providing a centralized record-keeping facility 
     for swaps''.
       On page 575, line 5, strike ``such a swap either''.
       On page 575, line 6, strike ``or'' and all that follows 
     through ``4r'' on line 8.
       On page 575, line 24, strike ``or the Commission''.
       On page 576, lines 7 and 8, strike ``or the Commission''.
       On page 615, line 18, strike ``all'' and all that follows 
     through line 21, and insert the following: ``and the 
     registered swap data repositories all information that is 
     determined by the Commission to be necessary for the 
     Commission and each of the swap data repositories to perform 
     their respective responsibilities under this Act''.
       On page 624, lines 21 through 23, strike ``or the 
     Commission under subsection (h), the Commission'' and insert 
     ``, the swap data repository''.
       On page 627, between lines 20 and 21, insert the following:
       ``(2) Repository for each asset class.--
       ``(A) Registration.--The Commission shall register at least 
     1 swap data repository for each asset class of a swap, or of 
     a group, category, type, or class of swaps.
       ``(B) Rulemaking.--If more than 1 such swap data repository 
     exists, the Commission shall by rule provide for--
       ``(i) the reporting of consistent data by each registered 
     swap data repository; and
       ``(ii) timely access, by the Commission and the public, to 
     the data collected and maintained by each such registered 
     swap data repository.''.
       On page 627, line 21, strike ``(2)'' and insert ``(3)''.
       On page 627, line 25, strike ``(3)'' and insert ``(4)''.
       On page 628, between lines 9 and 10, insert the following:
       ``(B) Additional core principles.--The Commission may 
     develop additional core principles applicable to swap data 
     repositories, and in developing such additional core 
     principles, the Commission may conform such core principles 
     to reflect evolving United States and international 
     standards.''.
       On page 628, line 10, strike ``(B)'' and insert ``(C)''.
       On page 628, between lines 18 and 19, insert the following:
       ``(1) Consultation with other regulators.--The Commission 
     shall consult with the Securities and Exchange Commission, 
     and the appropriate Federal banking agencies or the 
     appropriate governmental agencies prior to prescribing 
     standards under this section.''.
       On page 628, line 19, strike ``(1)'' and insert ``(2)''.
       On page 628, line 23, strike ``(2)'' and insert ``(3)''.
       On page 629, line 3, strike ``(3)'' and insert ``(4)''.
       On page 629, strike lines 8 through 19, and insert the 
     following:
       ``(5) Information access for the securities and exchange 
     commission.--The Securities and Exchange Commission shall 
     have direct access to registered swap data repositories that 
     accept data on security-based swap agreements.''.
       On page 630, lines 21 through 23, strike ``, and after 
     notifying the Commission of the request,''.
       On page 631, line 18, strike ``and Indemnification 
     Agreement''.
       On page 631, line 20, strike ``above--'' and all that 
     follows through ``the swap'' on line 21, and insert ``under 
     subsection (c)(7) the swap''.
       On page 631, line 25, strike ``; and'' and insert a period.
       On page 632, strike lines 1 through 4.
       On page 635, between lines 23 and 24, insert the following:
       ``(h) Access to Swap Data Repository Services.--
       ``(1) Commission review.--Any prohibition or limitation to 
     any person on access to services offered, directly or 
     indirectly, by a registered swap data repository shall be 
     subject to review by the Commission on its own motion, or 
     upon application by any person aggrieved thereby filed within 
     30 days after such notice has been filed with the Commission 
     and received by such aggrieved person, or within such longer 
     period as the Commission may determine. Application to the 
     Commission for review, or the institution of review by the 
     Commission on its own motion, shall not operate as a stay of 
     such prohibition or limitation, unless the Commission 
     otherwise orders, summarily or after notice and opportunity 
     for a hearing on the question of the stay (which hearing may 
     consist

[[Page S3550]]

     solely of the submission of affidavits or presentation of 
     oral arguments). The Commission shall establish for 
     appropriate cases an expedited procedure for consideration 
     and determination of the question of the stay.
       ``(2) Commission action.--In any proceeding to review the 
     prohibition or limitation of any person in respect of access 
     to services offered by a registered swap data repository, if 
     the Commission finds after notice and opportunity for a 
     hearing, that such prohibition or limitation is consistent 
     with the provisions of this section, and the rules and 
     regulations thereunder, and that such person has not been 
     discriminated against unfairly, the Commission, by order, 
     shall dismiss the proceeding. If the Commission does not make 
     any such finding or if it finds that such prohibition or 
     limitation imposes any burden on competition not necessary or 
     appropriate in furtherance of this section, the Commission, 
     by order, shall set aside the prohibition or limitation, and 
     require the registered swap data repository to permit such 
     person access to the services offered by the registered swap 
     data repository to which the prohibition or limitation 
     applied.
       ``(i) Administrative Proceeding Authority.--The Commission, 
     by order, may censure or place limitations upon the 
     activities, functions, or operations of, suspend for a period 
     not exceeding 12 months the registration of, or revoke the 
     registration of, any such swap data repository, if the 
     Commission finds, on the record after notice and opportunity 
     for a hearing, that such censure, placing of limitations, 
     suspension, or revocation is necessary or appropriate in the 
     public interest, for the protection of investors, or 
     otherwise in furtherance of the purposes of this section, and 
     that such swap data repository has violated or is unable to 
     comply with any provision of this section, or the rules and 
     regulations thereunder.''.
       On page 635, line 24, strike ``(h)'' and insert ``(j)''.
       On page 636, line 10, strike ``reported to--'' and all that 
     follows through ``a swap'' on line 11, and insert ``reported 
     to a swap''.
       On page 636, line 12, strike ``; or'' and insert a period.
       On page 636, strike lines 13 through 17.
       On page 637, line 2, strike ``or the Commission''.
       On page 791, line 11, strike ``either''.
       On page 791, line 13, strike ``, or'' and all that follows 
     through ``13A'' on line 15.
       On page 792, lines 4 and 5, strike ``or the Commission''.
       On page 792, line 10, strike ``or the Commission''.
       On page 801, lines 22 and 23, strike ``or the Commission 
     under subsection (a)''.
       On page 810, line 22, after the first period, insert the 
     following:
       ``(m) Duty of Clearing Agency.--Each clearing agency that 
     clears security-based swaps shall provide to the Commission 
     and the registered security-based swap data repositories all 
     information that is determined by the Commission to be 
     necessary for the Commission and each of the security-based 
     swap data repositories to perform their respective 
     responsibilities under this Act.''.
       On page 812, line 16, before the semicolon insert ``and 
     this title''.
       On page 836, lines 17 through 19, strike ``or the 
     Commission under section 3C(a), the Commission shall'' and 
     insert ``, the security-based swap data repository shall''.
       On page 839, between lines 19 and 20, insert the following:
       ``(2) Repository for each asset class.--
       ``(A) Registration.--The Commission shall register at least 
     1 security-based swap data repository for each asset class of 
     a security-based swap, or of a group, category, type, or 
     class of security-based swaps.
       ``(B) Rulemaking.--If more than 1 such security-based swap 
     data repository exists, the Commission shall by rule provide 
     for--
       ``(i) the reporting of consistent data by each registered 
     security-based swap data repository; and
       ``(ii) timely access, by the Commission and the public, to 
     the data collected and maintained by each such registered 
     security-based swap data repository.''.
       On page 839, line 20, strike ``(2)'' and insert ``(3)''.
       On page 839, line 24, strike ``(3)'' and insert ``(4)''.
       On page 840, between lines 8 and 9, insert the following:
       ``(B) Additional core principles.--The Commission may 
     develop additional core principles applicable to security-
     based swap data repositories, and in developing such 
     additional core principles, the Commission may conform such 
     core principles to reflect evolving United States and 
     international standards.''.
       On page 840, line 9, strike ``(B)'' and insert ``(C)''.
       On page 840, line 18, strike ``(4)'' and insert ``(5)''.
       On page 840, between lines 18 and 19, insert the following:
       ``(A) Consultation with regulators.--The Commission shall 
     consult with the Commodity Futures Trading Commission, and 
     the appropriate Federal banking agencies or the appropriate 
     governmental agencies prior to prescribing standards under 
     this subsection.''.
       On page 840, line 19, strike ``(A)'' and insert ``(B)''.
       On page 840, line 24, strike ``(B)'' and insert ``(C)''.
       On page 841, line 3, strike ``(C)'' and insert ``(D)''.
       On page 842, lines 16 through 18, strike ``, and after 
     notifying the Commission of the request,''.
       On page 843, lines 11 and 12, strike ``and 
     indemnification''.
       On page 843, line 15, strike ``(G)--'' and all that follows 
     through ``the security-based swap'' on line 16, and insert 
     ``(G) the security-based swap''.
       On page 843, line 22, strike ``; and'' and insert a period.
       On page 843, strike line 23 and all that follows through 
     page 844, line 2.
       On page 848, between lines 12 and 13, insert the following:
       ``(9) Access to security-based swap data repository 
     services.--
       ``(A) Commission review.--Any prohibition or limitation to 
     any person on access to services offered, directly or 
     indirectly, by a registered security-based swap data 
     repository shall be subject to review by the Commission on 
     its own motion, or upon application by any person aggrieved 
     thereby filed within 30 days after such notice has been filed 
     with the Commission and received by such aggrieved person, or 
     within such longer period as the Commission may determine. 
     Application to the Commission for review, or the institution 
     of review by the Commission on its own motion, shall not 
     operate as a stay of such prohibition or limitation, unless 
     the Commission otherwise orders, summarily or after notice 
     and opportunity for a hearing on the question of the stay 
     (which hearing may consist solely of the submission of 
     affidavits or presentation of oral arguments). The Commission 
     shall establish for appropriate cases an expedited procedure 
     for consideration and determination of the question of the 
     stay.
       ``(B) Commission action.--In any proceeding to review the 
     prohibition or limitation of any person in respect of access 
     to services offered by a registered security-based swap data 
     repository, if the Commission finds after notice and 
     opportunity for a hearing, that such prohibition or 
     limitation is consistent with the provisions of this section, 
     and the rules and regulations thereunder, and that such 
     person has not been discriminated against unfairly, the 
     Commission, by order, shall dismiss the proceeding. If the 
     Commission does not make any such finding or if it finds that 
     such prohibition or limitation imposes any burden on 
     competition not necessary or appropriate in furtherance of 
     this section, the Commission, by order, shall set aside the 
     prohibition or limitation, and require the registered 
     security-based swap data repository to permit such person 
     access to the services offered by the registered security-
     based swap data repository to which the prohibition or 
     limitation applied.
       ``(10) Administrative proceeding authority.--The 
     Commission, by order, may censure or place limitations upon 
     the activities, functions, or operations of, suspend for a 
     period not exceeding 12 months the registration of, or revoke 
     the registration of, any such security-based swap data 
     repository, if the Commission finds, on the record after 
     notice and opportunity for a hearing, that such censure, 
     placing of limitations, suspension, or revocation is 
     necessary or appropriate in the public interest, for the 
     protection of investors, or otherwise in furtherance of the 
     purposes of this section, and that such security-based swap 
     data repository has violated or is unable to comply with any 
     provision of this section, or the rules and regulations 
     thereunder.''.
       On page 848, line 13, strike ``(9)'' and insert ``(11)''.
       On page 881, line 19, strike ``reported to--'' and all that 
     follows through ``a security-based swap'' on line 20, and 
     insert ``reported to a security-based swap''.
       On page 881, line 21, strike ``; or'' and insert a period.
       On page 881, strike line 22 and all that follows through 
     page 882, line 2.
       On page 882, lines 14 and 15, strike ``or the Commission''.
                                 ______
                                 
  SA 3954. Mr. JOHNSON (for himself and Mr. Enzi) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 370, between lines 13 and 14, insert the following:

     SEC. 333. TEMPORARY EXTENSION OF THE TRANSACTION ACCOUNT 
                   GUARANTEE PROGRAM.

       (a) Transaction Account Guarantee Program Extension.--
     Section 11(a)(1) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(a)(1)) is amended--
       (1) in subparagraph (B)--
       (A) by striking ``The net amount'' and inserting the 
     following:
       ``(i) In general.--Except as provided in clause (ii), the 
     net amount''; and
       (B) by adding at the end the following:
       ``(ii) Insurance for noninterest-bearing transaction 
     accounts.--The Corporation shall fully insure the net amount 
     that a depositor at an insured depository institution

[[Page S3551]]

     maintains in a noninterest-bearing transaction account. Such 
     amount shall not be taken into account when determining the 
     net amount due to such a depositor under clause (i).
       ``(iii) `Noninterest-bearing transaction account' 
     defined.--For purposes of this subparagraph, the term 
     `noninterest-bearing transaction account' means--

       ``(I) a deposit or account maintained at an insured 
     depository institution--

       ``(aa) with respect to which interest is neither accrued 
     nor paid;
       ``(bb) on which the depositor or account holder is 
     permitted to make withdrawals by negotiable or transferable 
     instrument, payment orders of withdrawal, telephone or other 
     electronic media transfers, or other similar means for the 
     purpose of making payments or transfers to third parties; and
       ``(cc) on which the insured depository institution does not 
     reserve the right to require advance notice of an intended 
     withdrawal; and

       ``(II) a trust account established by an attorney on behalf 
     of a client, commonly referred to as an `Interest on Lawyers 
     Trust Account' or `IOLTA'.''; and

       (2) in subparagraph (C), by striking ``subparagraph (B)'' 
     and inserting ``subparagraph (B)(i)''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on January 1, 2011.
       (c) Prospective Repeal.--Effective January 1, 2013, section 
     11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
     1821(a)(1)), as amended by subsection (a), is amended--
       (1) in subparagraph (B)--
       (A) by striking ``deposit.--'' and all that follows through 
     ``clause (ii), the net amount'' and inserting ``deposit.--The 
     net amount''; and
       (B) by striking clauses (ii) and (iii); and
       (2) in subparagraph (C), by striking ``subparagraph 
     (B)(i)'' and inserting ``subparagraph (B)''.

     SEC. 334. IMPROVEMENTS TO THE DEPOSIT INSURANCE FUND.

       Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 
     1817) is amended--
       (1) in subsection (b)(3)(B)(i), by striking ``1.5 percent'' 
     and inserting ``1.75 percent''; and
       (2) in subsection (e)--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by striking ``1.5'' each place 
     that term appears and inserting ``1.75'';
       (ii) by striking subparagraphs (B), (C), (E), (F), and (G);
       (iii) by redesignating subparagraph (D) as subparagraph 
     (C); and
       (iv) by inserting after subparagraph (A) the following:
       ``(B) Limitation.--The Board of Directors may, in the sole 
     discretion of the Board of Directors, suspend or limit the 
     declaration or payment of dividends under subparagraph 
     (A).''; and
       (B) in paragraph (4), by striking ``paragraphs (2)(D)'' and 
     inserting ``paragraphs (2)(C)''.

     SEC. 335. ENHANCED ACCESS TO INFORMATION FOR DEPOSIT 
                   INSURANCE PURPOSES.

       Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 
     1817) is amended--
       (1) in subsection (a)(2)(B), by striking ``agreement'' and 
     inserting ``consultation''; and
       (2) in subsection (b)(1)(E)--
       (A) in clause (i), by striking ``such as'' and inserting 
     ``including''; and
       (B) by striking clause (iii).
                                 ______
                                 
  SA 3955. Mr. CORKER (for himself, Mr. Gregg, Mr. LeMieux, Mr. Coburn, 
and Mr. Brown of Massachusetts) submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; as follows:

       On page 1045, strike line 12 and all that follows through 
     ``SEC. 942.'' on page 1052, line 3, and insert the following:
       (b) Study on Risk Retention.--
       (1) Study.--
       (A) In general.--The Board of Governors, in coordination 
     and consultation with the Comptroller of the Currency, the 
     Corporation, the Federal Housing Finance Agency, and the 
     Commission, shall conduct a study of the asset-backed 
     securitization process.
       (B) Issues to be studied.--In conducting the study under 
     subparagraph (A), the Board of Governors shall evaluate--
       (i) the separate and combined impact of--

       (I) requiring loan originators or securitizers to retain an 
     economic interest in a portion of the credit risk for any 
     asset that the securitizer, through the issuance of an asset-
     backed security, transfers, sells, or conveys to a third 
     party; including--

       (aa) whether existing risk retention requirements such as 
     contractual representations and warranties, and statutory and 
     regulatory underwriting and consumer protection requirements 
     are sufficient to ensure the long-term accountability of 
     originators for loans they originate; and
       (bb) methodologies for establishing additional statutory 
     credit risk retention requirements;

       (II) the Financial Accounting Statements 166 and 167 issued 
     by the Financial Accounting Standards Board, as well as any 
     other statements issued before or after the date of enactment 
     of this section the Federal banking agencies determine to be 
     relevant;

       (ii) the impact of the factors described under subsection 
     (i) of this section on--

       (I) different classes of assets, such as residential 
     mortgages, commercial mortgages, commercial loans, auto 
     loans, and other classes of assets;
       (II) loan originators;
       (III) securitizers;
       (IV) access of consumers and businesses to credit on 
     reasonable terms.

       (2) Report.--Not later than 18 months after the date of 
     enactment of this section, the Board of Governors shall 
     submit to Congress a report on the study conducted under 
     paragraph (1). Such report shall include statutory and 
     regulatory recommendations for eliminating any negative 
     impacts on the continued viability of the asset-backed 
     securitization markets and on the availability of credit for 
     new lending identified by the study conducted under paragraph 
     (1).

     SEC. 942. RESIDENTIAL MORTGAGE UNDERWRITING STANDARDS.

       (a) Standards Established.--Notwithstanding any other 
     provision of this Act or any other provision of Federal, 
     State, or local law, the Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development, shall jointly 
     establish specific minimum standards for mortgage 
     underwriting, including--
       (1) a requirement that the mortgagee verify and document 
     the income and assets relied upon to qualify the mortgagor on 
     the residential mortgage, including the previous employment 
     and credit history of the mortgagor;
       (2) a down payment requirement that--
       (A) is equal to not less than 5 percent of the purchase 
     price of the property securing the residential mortgage; and
       (B) in the case of a first lien residential mortgage loan 
     with an initial loan to value ratio that is more than 80 
     percent and not more than 95 percent, includes a requirement 
     for credit enhancements, as defined by the Federal banking 
     agencies, until the loan to value ratio of the residential 
     mortgage loan amortizes to a value that is less than 80 
     percent of the purchase price;
       (3) a method for determining the ability of the mortgagor 
     to repay the residential mortgage that is based on factors 
     including--
       (A) all terms of the residential mortgage, including 
     principal payments that fully amortize the balance of the 
     residential mortgage over the term of the residential 
     mortgage; and
       (B) the debt to income ratio of the mortgagor; and
       (4) any other specific standards the Federal banking 
     agencies jointly determine are appropriate to ensure prudent 
     underwriting of residential mortgages.
       (b) Updates to Standards.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development--
       (1) shall review the standards established under this 
     section not less frequently than every 5 years; and
       (2) based on the review under paragraph (1), may revise the 
     standards established under this section, as the Federal 
     banking agencies, in consultation with the Federal Housing 
     Finance Agency and the Department of Housing and Urban 
     Development, determine to be necessary.
       (c) Compliance.--It shall be a violation of Federal law--
       (1) for any mortgage loan originator to fail to comply with 
     the minimum standards for mortgage underwriting established 
     under subsection (a) in originating a residential mortgage 
     loan;
       (2) for any company to maintain an extension of credit on a 
     revolving basis to any person to fund a residential mortgage 
     loan, unless the company reasonably determines that the 
     residential mortgage loan funded by such credit was subject 
     to underwriting standards no less stringent than the minimum 
     standards for mortgage underwriting established under 
     subsection (a); or
       (3) for any company to purchase, fund by assignment, or 
     guarantee a residential mortgage loan, unless the company 
     reasonably determines that the residential mortgage loan was 
     subject to underwriting standards no less stringent than the 
     minimum standards for mortgage underwriting established under 
     subsection (a).
       (d) Implementation.--
       (1) Regulations required.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency, shall 
     issue regulations to implement subsections (a) and (c), which 
     shall take effect not later than 270 days after the date of 
     enactment of this Act.
       (2) Report required.--If the Federal banking agencies have 
     not issued final regulations under subsections (a) and (c) 
     before the date that is 270 days after the date of enactment 
     of this Act, the Federal banking agencies shall jointly 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that--
       (A) explains why final regulations have not been issued 
     under subsections (a) and (c); and

[[Page S3552]]

       (B) provides a timeline for the issuance of final 
     regulations under subsections (a) and (c).
       (e) Enforcement.--Compliance with the rules issued under 
     this section shall be enforced by--
       (1) the primary financial regulatory agency of an entity, 
     with respect to an entity subject to the jurisdiction of a 
     primary financial regulatory agency, in accordance with the 
     statutes governing the jurisdiction of the primary financial 
     regulatory agency over the entity and as if the action of the 
     primary financial regulatory agency were taken under such 
     statutes; and
       (2) the Bureau, with respect to a company that is not 
     subject to the jurisdiction of a primary financial regulatory 
     agency.
       (f) Exemptions for Certain Nonprofit Mortgage Loan 
     Originators.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Federal banking agencies, in 
     consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury, may jointly 
     issue rules to exempt from the requirements under subsection 
     (a)(2), mortgage loan originators that are exempt from 
     taxation under section 501(c)(3) of the Internal Revenue Code 
     of 1986.
       (2) Determining factors.--The Federal banking agencies 
     shall ensure that--
       (A) the lending activities of a mortgage loan originator 
     that receives an exemption under this subsection do not 
     threaten the safety and soundness of the banking system of 
     the United States; and
       (B) a mortgage loan originator that receives an exemption 
     under this subsection--
       (i) is not compensated based on the number or value of 
     residential mortgage loan applications accepted, offered, or 
     negotiated by the mortgage loan originator;
       (ii) does not offer residential mortgage loans that have an 
     interest rate greater than zero percent;
       (iii) does not gain a monetary profit from any residential 
     mortgage product or service provided;
       (iv) has the primary purpose of serving low income housing 
     needs;
       (v) has not been specifically prohibited, by statute, from 
     receiving Federal funding; and
       (vi) meets any other requirements that the Federal banking 
     agencies jointly determine are appropriate for ensuring that 
     a mortgage loan originator that receives an exemption under 
     this subsection does not threaten the safety and soundness of 
     the banking system of the United States.
       (3) Reports required.--Before the issuance of final rules 
     under subsection (a), and annually thereafter, the Federal 
     banking agencies shall jointly submit to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives a report that--
       (A) identifies the mortgage loan originators that receive 
     an exemption under this subsection; and
       (B) for each mortgage loan originator identified under 
     subparagraph (A), the rationale for providing an exemption.
       (4) Updates to exemptions.--The Federal banking agencies, 
     in consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury--
       (A) shall review the exemptions established under this 
     subsection not less frequently than every 2 years; and
       (B) based on the review under subparagraph (A), may revise 
     the standards established under this subsection, as the 
     Federal banking agencies, in consultation with the Secretary 
     of Housing and Urban Development and the Secretary of the 
     Treasury, determine to be necessary.
       (g) Rules of Construction.--Nothing in this section may be 
     construed to permit--
       (1) the Federal National Mortgage Association or the 
     Federal Home Loan Mortgage Corporation to make or guarantee a 
     residential mortgage loan that does not meet the minimum 
     underwriting standards established under this section; or
       (2) the Federal banking agencies to issue an exemption 
     under subsection (f) that is not on a case-by-case basis.
       (h) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Company.--The term ``company''--
       (A) has the same meaning as in section 2(b) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841(b)); and
       (B) includes a sole proprietorship.
       (2) Mortgage loan originator.--The term ``mortgage loan 
     originator'' means any company that takes residential 
     mortgage loan applications and offers or negotiates terms of 
     residential mortgage loans.
       (3) Residential mortgage loan.--The term ``residential 
     mortgage loan''--
       (A) means any extension of credit primarily for personal, 
     family, or household use that is secured by a mortgage, deed 
     of trust, or other equivalent security interest in a dwelling 
     or residential real estate upon which is constructed or 
     intended to be constructed a dwelling; and
       (B) does not include a mortgage loan for which mortgage 
     insurance is provided by the Department of Veterans Affairs, 
     or the Rural Housing Administration.
       (4) Extension of credit; dwelling.--The terms ``extension 
     of credit'' and ``dwelling'' shall have the same meaning as 
     in section 103 of the Truth in Lending Act (15 U.S.C. 1602).

     SEC. 943. STUDY ON FEDERAL HOUSING ADMINISTRATION 
                   UNDERWRITING STANDARDS.

       (a) Study.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study evaluating whether the 
     underwriting criteria used by the Federal Housing 
     Administration are sufficient to ensure the solvency of the 
     Mutual Mortgage Insurance Fund of the Federal Housing 
     Administration and the safety and soundness of the banking 
     system of the United States.
       (2) Issues to be studied.--In conducting the study under 
     paragraph (1), the Comptroller General shall evaluate--
       (A) down payment requirements for Federal Housing 
     Administration borrowers;
       (B) default rates of mortgages insured by the Federal 
     Housing Administration;
       (C) characteristics of Federal Housing Administration 
     borrowers who are most likely to default;
       (D) taxpayer exposure to losses incurred by the Federal 
     Housing Administration;
       (E) the impact of the market share of the Federal Housing 
     Administration on efforts to sustain a viable private 
     mortgage market; and
       (F) any other factors that Comptroller General determines 
     are appropriate.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under subsection 
     (a) that includes recommendations for statutory improvements 
     to be made to the underwriting criteria used by the Federal 
     Housing Administration, to ensure the solvency of the Mutual 
     Mortgage Insurance Fund of the Federal Housing Administration 
     and the safety and soundness of the banking system of the 
     United States.

     SEC. 944.

                                 ______
                                 
  SA 3956. Ms. LANDRIEU (for herself, Mr. Isakson, Mrs. Hagan, Mr. 
Warner, and Mr. Menendez) submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1047, strike line 4 and all that follows through 
     line 20 and insert the following:
       ``(i) not less than 5 percent of the credit risk for any 
     asset--

       ``(I) that is not a qualified residential mortgage that is 
     transferred, sold, or conveyed through the issuance of an 
     asset-backed security by the securitizer; or
       ``(II) that is a qualified residential mortgage that is 
     transferred, sold, or conveyed through the issuance of an 
     asset-backed security by the securitizer, if 1 or more of the 
     assets that collateralize the asset-backed security are not 
     qualified residential mortgages; or

       ``(ii) less than 5 percent of the credit risk for an asset 
     that is not a qualified residential mortgage that is 
     transferred, sold, or conveyed through the issuance of an 
     asset-backed security by the securitizer, if the originator 
     of the asset meets the underwriting standards prescribed 
     under paragraph (2)(B);
       ``(C) specify--
       ``(i) the permissible forms of risk retention for purposes 
     of this section;
       ``(ii) the minimum duration of the risk retention required 
     under this section; and
       ``(iii) that a securitizer is not required to retain any 
     part of the credit risk for an asset that is transferred, 
     sold or conveyed through the issuance of an asset-backed 
     security by the securitizer, if all of the assets that 
     collateralize the asset-backed security are qualified 
     residential mortgages;

       On page 1051, between lines 3 and 4, insert the following:
       ``(4) Exemption for qualified residential mortgages.--
       ``(A) In general.--The Federal banking agencies, the 
     Commission, the Secretary of Housing and Urban Development, 
     and the Director of the Federal Housing Finance Agency shall 
     jointly issue regulations to exempt qualified residential 
     mortgages from the risk retention requirements of this 
     subsection.
       ``(B) Qualified residential mortgage.--The Federal banking 
     agencies, the Commission, the Secretary of Housing and Urban 
     Development, and the Director of the Federal Housing Finance 
     Agency shall jointly define the term `qualified residential 
     mortgage' for purposes of this subsection, taking into 
     consideration underwriting and product features that 
     historical loan performance data indicate result in a lower 
     risk of default, such as--
       ``(i) documentation and verification of the financial 
     resources relied upon to qualify the mortgagor;
       ``(ii) standards with respect to--

       ``(I) the residual income of the mortgagor after all 
     monthly obligations;
       ``(II) the ratio of the housing payments of the mortgagor 
     to the monthly income of the mortgagor;
       ``(III) the ratio of total monthly installment payments of 
     the mortgagor to the income of the mortgagor;

[[Page S3553]]

       ``(iii) mitigating the potential for payment shock on 
     adjustable rate mortgages through product features and 
     underwriting standards;
       ``(iv) mortgage guarantee insurance obtained at the time of 
     origination for loans with combined loan-to-value ratios of 
     greater than 80 percent; and
       ``(v) prohibiting or restricting the use of balloon 
     payments, negative amortization, prepayment penalties, 
     interest-only payments, and other features that have been 
     demonstrated to exhibit a higher risk of borrower default.
       ``(5) Condition for qualified residential mortgage 
     exemption.--The regulations issued under paragraph (4) shall 
     provide that an asset-backed security that is collateralized 
     by tranches of other asset-backed securities shall not be 
     exempt from the risk retention requirements of this 
     subsection.
       ``(6) Certification.--The Commission shall require an 
     issuer to certify, for each issuance of an asset-backed 
     security collateralized exclusively by qualified residential 
     mortgages, that the issuer has evaluated the effectiveness of 
     the internal supervisory controls of the issuer with respect 
     to the process for ensuring that all assets that 
     collateralize the asset-backed security are qualified 
     residential mortgages.
                                 ______
                                 
  SA 3957. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 62, strike lines 8 through 10 and insert the 
     following:
       (2) the term ``financial company'' has the same meaning as 
     in title II, and includes--
       (A) an insured depository institution, an insurance 
     company, and a nonbank financial company, and any subsidiary 
     thereof; and
       (B) any other entity (and any subsidiary thereof)--
       (i) as determined by the Director, based on the size, 
     scale, scope, concentration, activities, interconnectedness, 
     or management of critical data, such that the entity could 
     individually or as a group threaten the stability of the 
     United States financial system; and
       (ii) that is not excluded from such definition by a 2/3 
     vote of the Council;

       On page 62, line 16, strike ``(5) the'' and insert the 
     following:
       (5) the term ``financial transaction'' means the explicit 
     or implicit creation of a financial contract, where at least 
     one of the counterparties is required to report to the 
     Office;
       (6) the
       On page 62, line 21, strike ``(6)'' and insert ``(7)''.
       On page 63, line 8, strike ``(7)'' and insert ``(8)''.
       On page 63, line 13, strike ``(8)'' and insert ``(9)''.
       On page 69, beginning on line 7, strike ``and member 
     agencies'' and insert ``, member agencies, and the Bureau of 
     Economic Analysis''.
       On page 70, between lines 12 and 13, insert the following:
       (3) Regulation of financial companies not under council 
     member agency jurisdiction.--The regulations of the Office 
     shall apply directly to reporting financial companies that 
     are not otherwise under the jurisdiction of a Council member 
     agency.
       On page 73, between lines 20 and 21, insert the following:
       (iii) Collection of financial transaction and position 
     data.--The Office shall collect, on a schedule determined by 
     the Director, in consultation with the Council, comprehensive 
     financial transaction data and position data from financial 
     companies.
                                 ______
                                 
  SA 3958. Mr. REED (for himself, Mr. Johnson, and Mr. Brown of Ohio) 
submitted an amendment intended to be proposed to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 384, strike line 1 and all that follows through 
     page 385, line 15.
       On page 385, line 16, strike ``409'' and insert ``407''.
       On page 386, strike line 10 and all that follows through 
     page 387, line 2 and insert the following:

     SEC. 408. STATE AND FEDERAL RESPONSIBILITIES; ASSET THRESHOLD 
                   FOR FEDERAL REGISTRATION OF INVESTMENT 
                   ADVISERS.

       Section 203A(a) of the of the Investment Advisers Act of 
     1940 (15 U.S.C. 80b-3a(a)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) Treatment of mid-sized investment advisers.--
       ``(A) In general.--No investment adviser described in 
     subparagraph (B) shall register under section 203, unless the 
     investment adviser is an adviser to an investment company 
     registered under the Investment Company Act of 1940, or a 
     company which has elected to be a business development 
     company pursuant to section 54 of the Investment Company Act 
     of 1940, and has not withdrawn the election, except that, if 
     by effect of this paragraph an investment adviser would be 
     required to register with 5 or more States, then the adviser 
     may register under section 203.
       ``(B) Covered persons.--An investment adviser described in 
     this subparagraph is an investment adviser that--
       ``(i) is required to be registered as an investment adviser 
     with the securities commissioner (or any agency or office 
     performing like functions) of the State in which it maintains 
     its principal office and place of business and, if 
     registered, would be subject to examination as an investment 
     adviser by any such commissioner, agency, or office; and
       ``(ii) has assets under management between--

       ``(I) the amount specified under subparagraph (A) of 
     paragraph (1), as such amount may have been adjusted by the 
     Commission pursuant to that subparagraph; and
       ``(II) $100,000,000, or such higher amount as the 
     Commission may, by rule, deem appropriate in accordance with 
     the purposes of this title.''.

       On page 387, line 3, strike ``411'' and insert ``409''
       On page 387, line 13, strike ``412'' and insert ``410''.
       On page 388, line 4, strike ``413'' and insert ``411''.
       On page 388, line 16, strike ``414'' and insert ``412''.
       On page 389, line 3, strike ``415'' and insert ``413''.
       On page 390, line 1, strike ``416'' and insert ``414''.
                                 ______
                                 
  SA 3959. Mrs. MURRAY submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 441, strike line 8 and all that follows through 
     ``Section'' on line 9 and insert the following:
       (e) Notice Procedures for Acquisitions of Nonbanks.--
     Section
       On page 441, strike line 15 and all that follows through 
     page 442, line 12.
       On page 501, line 15, strike the second period and insert 
     the following: ``.

     SEC. 621. INTERSTATE MERGER TRANSACTIONS.

       (a) Interstate Merger Transactions.--Section 18(c) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended 
     by adding at the end the following:
       ``(13)(A) Except as provided in subparagraph (B), the 
     responsible agency may not approve an application for an 
     interstate merger transaction if the resulting insured 
     depository institution (including all insured depository 
     institutions which are affiliates of the resulting insured 
     depository institution), upon consummation of the 
     transaction, would control more than 10 percent of the total 
     amount of deposits of insured depository institutions in the 
     United States.
       ``(B) Subparagraph (A) shall not apply to an interstate 
     merger transaction that involves 1 or more insured depository 
     institutions in default or in danger of default, or with 
     respect to which the Corporation provides assistance under 
     section 13.
       ``(C) In this paragraph--
       ``(i) the term `interstate merger transaction' means a 
     merger transaction involving 2 or more insured depository 
     institutions that have different home States and that are not 
     affiliates; and
       ``(ii) the term `home State' means--
       ``(I) with respect to a national bank, the State in which 
     the main office of the bank is located;
       ``(II) with respect to a State bank or State savings 
     association, the State by which the State bank or State 
     savings association is chartered; and
       ``(III) with respect to a Federal savings association, the 
     State in which the home office (as defined by the regulations 
     of the Director of the Office of Thrift Supervision, or, on 
     and after the transfer date, the Comptroller of the Currency) 
     of the Federal savings association is located.''.
       (b) Acquisitions by Bank Holding Companies.--
       (1) In general.--Section 4 of the Bank Holding Company Act 
     of 1956 (12 U.S.C. 1843) is amended--
       (A) in subsection (i), by adding at the end the following:

[[Page S3554]]

       ``(8) Interstate acquisitions.--
       ``(A) In general.--The Board may not approve an application 
     by a bank holding company to acquire an insured depository 
     institution under subsection (c)(8) or any other provision of 
     this Act if--
       ``(i) the home State of such insured depository institution 
     is a State other than the home State of the bank holding 
     company; and
       ``(ii) the applicant (including all insured depository 
     institutions which are affiliates of the applicant) controls, 
     or upon consummation of the transaction would control, more 
     than 10 percent of the total amount of deposits of insured 
     depository institutions in the United States.
       ``(B) Exception.--Subparagraph (A) shall not apply to an 
     acquisition that involves an insured depository institution 
     in default or in danger of default, or with respect to which 
     the Federal Deposit Insurance Corporation provides assistance 
     under section 13 of the Federal Deposit Insurance Act (12 
     U.S.C. 1823).''; and
       (B) in subsection (k)(6)(B), by striking ``savings 
     association'' and inserting ``insured depository 
     institution''.
       (2) Definitions.--Section 2(o)(4) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841(o)(4)) is amended--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C)(ii), by striking the period at the 
     end and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) with respect to a State savings association, the 
     State by which the savings association is chartered; and
       ``(E) with respect to a Federal savings association, the 
     State in which the home office (as defined by the regulations 
     of the Director of the Office of Thrift Supervision, or, on 
     and after the transfer date, the Comptroller of the Currency) 
     of the Federal savings association is located.''.
       (c) Acquisitions by Savings and Loan Holding Companies.--
     Section 10(e)(2) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(e)(2)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (C), by striking ``or'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``, or''; and
       (C) by adding at the end the following:
       ``(E) in the case of an application by a savings and loan 
     holding company to acquire an insured depository institution, 
     if--
       ``(i) the home State of the insured depository institution 
     is a State other than the home State of the savings and loan 
     holding company;
       ``(ii) the applicant (including all insured depository 
     institutions which are affiliates of the applicant) controls, 
     or upon consummation of the transaction would control, more 
     than 10 percent of the total amount of deposits of insured 
     depository institutions in the United States; and
       ``(iii) the acquisition does not involve an insured 
     depository institution in default or in danger of default, or 
     with respect to which the Federal Deposit Insurance 
     Corporation provides assistance under section 13 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1823).''; and
       (2) by adding at the end the following:
       ``(7) Definitions.--For purposes of paragraph (2)(E)--
       ``(A) the terms `default', `in danger of default', and 
     `insured depository institution' have the same meanings as in 
     section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
     1813); and
       ``(B) the term `home State' means--
       ``(i) with respect to a national bank, the State in which 
     the main office of the bank is located;
       ``(ii) with respect to a State bank or State savings 
     association, the State by which the savings association is 
     chartered;
       ``(iii) with respect to a Federal savings association, the 
     State in which the home office (as defined by the regulations 
     of the Director of the Office of Thrift Supervision, or, on 
     and after the transfer date, the Comptroller of the Currency) 
     of the Federal savings association is located; and
       ``(iv) with respect to a savings and loan holding company, 
     the State in which the amount of total deposits of all 
     insured depository institution subsidiaries of such company 
     was the greatest on the date on which the company became a 
     savings and loan holding company.''.
                                 ______
                                 
  SA 3960. Mr. SCHUMER (for himself and Mrs. McCaskill) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1565, after line 23, add the following:

           TITLE XIII--REGULATION OF DEBT SETTLEMENT SERVICES

     SEC. 1301. AMENDMENT TO CONSUMER CREDIT PROTECTION ACT.

       The Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) 
     is amended by adding at the end the following:

                  ``TITLE X--DEBT SETTLEMENT SERVICES

     ``SEC. 1001. DEFINITIONS.

       ``In this title:
       ``(1) Attorney general of a state.--The term `attorney 
     general of a State' means the attorney general or other chief 
     law enforcement officer of a State.
       ``(2) Commission.--The term `Commission' means the Federal 
     Trade Commission.
       ``(3) Consumer.--The term `consumer' means any person.
       ``(4) Consumer settlement account.--The term `consumer 
     settlement account' means any account or other means or 
     device in which payments, deposits, or other transfers from a 
     consumer are held or transferred to a debt settlement 
     provider for the accumulation of the consumer's funds in 
     anticipation of proffering an adjustment or settlement of a 
     debt or obligation of the consumer to a creditor on behalf of 
     the consumer.
       ``(5) Debt settlement program.--The term `debt settlement 
     program' means the actions and activities undertaken by a 
     debt settlement provider and a consumer in connection with 
     the provision of debt settlement service.
       ``(6) Debt settlement provider.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `debt settlement provider' means any person or 
     entity engaging in, or holding itself out as engaging in, the 
     business of providing debt settlement services in exchange 
     for a fee or compensation, or any person who solicits for or 
     acts on behalf of any person or entity engaging in, or 
     holding itself out as engaging in, the business of providing 
     debt settlement services in exchange for any fee or 
     compensation.
       ``(B) Exception.--The term `debt settlement provider' does 
     not include the following:
       ``(i) An attorney providing a debt settlement service to a 
     consumer who--

       ``(I) is licensed to practice law and in good standing in 
     the jurisdiction where the consumer resides;
       ``(II) personally provides such service while acting in the 
     ordinary practice of law;
       ``(III) puts any advance fee received from the consumer in 
     a client trust account until earned pursuant to the terms of 
     a written agreement that details the work to be performed by 
     the attorney and the fee schedule for the attorney's work;
       ``(IV) is engaged in the practice of law through the same 
     business entity ordinarily used by the attorney when 
     providing legal services that are not part of a debt 
     settlement service;
       ``(V) does not share any fee received for the provision of 
     such service with a person who is not an attorney; and
       ``(VI) does not provide such service through a partnership, 
     corporation, association, referral arrangement, or other 
     entity or arrangement--

       ``(aa) that is directed or controlled, in whole or in part, 
     by an individual who is not an attorney;
       ``(bb) in which an individual who is not an attorney holds 
     any interest;
       ``(cc) in which an individual who is not an attorney is a 
     director or officer thereof or occupies a position of similar 
     responsibility;
       ``(dd) in which an individual who is not an attorney has 
     the right to direct, control, or regulate the professional 
     judgment of the attorney; or
       ``(ee) in which an individual who is not an attorney and 
     who is not under the supervision and control of the attorney 
     delivers such service or exercises professional judgment with 
     respect to the provision of such service.
       ``(ii) Escrow agents, accountants, broker dealers in 
     securities, or investment advisors in securities, when 
     acting--

       ``(I) in the ordinary practice of their professions; and
       ``(II) through the same entity used in the ordinary 
     practice of their profession.

       ``(iii) Any bank, agent of a bank, trust company, savings 
     and loan association, savings bank, credit union, crop credit 
     association, development credit corporation, industrial 
     development corporation, title insurance company, or 
     insurance company operating or organized under the laws of a 
     State or the United States.
       ``(iv) Mortgage servicers (as such term is defined in 
     section 6(i) of the Real Estate Settlement Procedures Act of 
     1974 (12 U.S.C. 2605(i)(2))) carrying out mortgage loan 
     modifications.
       ``(v) Any person who performs credit services for such 
     person's employer while receiving a regular salary or wage 
     when the employer is not engaged in the business of offering 
     or providing debt settlement service.
       ``(vi) An organization that is described in section 
     501(c)(3) and subject to section 501(q) of the Internal 
     Revenue Code of 1986 and exempt from tax under section 501(a) 
     of such Code.
       ``(vii) Public officers while acting in their official 
     capacities and persons acting under court order.
       ``(viii) Any person while performing services incidental to 
     the dissolution, winding up, or liquidating of a partnership, 
     corporation, or other business enterprise.
       ``(7) Debt settlement service.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `debt settlement service' means--

[[Page S3555]]

       ``(i) offering to provide advice or service, or to act or 
     acting as an intermediary between or on behalf of a consumer 
     and one or more of a consumer's creditors, where the primary 
     purpose of the advice, service, or action is to obtain a 
     settlement, adjustment, or satisfaction of the consumer's 
     debt to a creditor in an amount less than the full amount of 
     the principal amount of the debt or in an amount less than 
     the current outstanding balance of the debt; or
       ``(ii) offering to provide services related to or providing 
     services advising, encouraging, assisting, or counseling a 
     consumer to accumulate funds for the primary purpose of 
     proposing, obtaining, or seeking to obtain a settlement, 
     adjustment, or satisfaction of the consumer's debt to a 
     creditor in an amount less than the full amount of the 
     principal amount of the debt or in an amount less than the 
     current outstanding balance of the debt.
       ``(B) Exception.--The term `debt settlement service' does 
     not include services of an attorney in providing information, 
     advice, or legal representation with respect to filing a case 
     or proceeding under title 11, United States Code.
       ``(8) Enrollment fee.--The term `enrollment fee' means any 
     fee, obligation, or compensation paid or to be paid by the 
     consumer to a debt settlement provider in consideration of or 
     in connection with establishing a contract or other agreement 
     with a consumer related to the provision of debt settlement 
     service.
       ``(9) Maintenance fee.--The term `maintenance fee' means 
     any fee, obligation, or compensation paid or to be paid by a 
     consumer on a periodic basis to a debt settlement provider in 
     consideration of maintaining the relationship and services to 
     be provided by a debt settlement provider in accordance with 
     a contract with a consumer related to the provision of debt 
     settlement service.
       ``(10) Principal amount of the debt.--The term `principal 
     amount of the debt' means the total amount or outstanding 
     balance owed by a consumer to one or more creditors for a 
     debt that is included in a contract for debt settlement 
     service at the time when the consumer enters into a contract 
     for debt settlement service pursuant to section 1002(a).
       ``(11) Settlement fee.--The term `settlement fee' means any 
     fee, obligation, or compensation paid or to be paid by a 
     consumer to a debt settlement provider in consideration of or 
     in connection with an agreement or other arrangement on the 
     part of a creditor to accept less than the principal amount 
     of the debt as satisfaction of the creditor's claim against 
     the consumer.

     ``SEC. 1002. REQUIRED ACTS.

       ``(a) Contract Required.--
       ``(1) In general.--A debt settlement provider may not 
     provide a debt settlement service to a consumer or receive 
     any fee from a consumer for a debt settlement service without 
     a written contract described in paragraph (2) that is signed 
     by the consumer.
       ``(2) Contract contents.--A contract described in this 
     paragraph is a contract between a debt settlement provider 
     and a consumer for debt settlement services that includes the 
     following:
       ``(A) The name and address of the consumer.
       ``(B) The date of execution of the contract.
       ``(C) The legal name of the debt settlement provider, 
     including any other business names used by the debt 
     settlement provider.
       ``(D) The corporate address and regular business address, 
     including a street address, of the debt settlement provider.
       ``(E) The license or registration number under which the 
     debt settlement provider is licensed or registered if the 
     consumer resides in a State that requires a debt settlement 
     provider to obtain a license or registration as a condition 
     of providing debt settlement service in that State.
       ``(F) The telephone number at which the consumer may speak 
     with a representative of the debt settlement provider during 
     normal business hours.
       ``(G) A complete list of the consumer's accounts, debts, 
     and obligations covered under the debt settlement service 
     covered by the contract, including the name of each creditor 
     and principal amount of each debt.
       ``(H) A description of the services to be provided by the 
     debt settlement provider, including the expected timeframe 
     for settlement for each account, debt, or obligation included 
     in subparagraph (G).
       ``(I) A clear and conspicuous itemized list of all fees, 
     including any enrollment fee and settlement fees to be paid 
     by the consumer to the debt settlement provider, and the 
     date, approximate date, or circumstances under which each fee 
     will become due.
       ``(J) A clear and conspicuous statement of a good faith 
     estimate of the total amount of all fees to be collected by 
     the debt settlement provider from the consumer for the 
     provision of debt settlement service under the contract.
       ``(K) A clear and conspicuous statement of the proposed 
     savings goals for the consumer, stating the amount to be 
     saved per month or other period, the time period over which 
     the savings goals extend, and the total amount of the savings 
     expected to be paid by the consumer pursuant to the terms of 
     the contract.
       ``(L) A notice to the consumer that unless the consumer is 
     insolvent, if a creditor settles a debt for an amount less 
     than the consumer's current outstanding balance at the time 
     of settlement, the consumer may incur a tax liability.
       ``(M) A written notice to the consumer, which includes a 
     form that the consumer may use and the address to which the 
     form may be returned to the debt settlement provider, that 
     the consumer may cancel the contract pursuant to the 
     provisions of section 1006.
       ``(N) A written notice to the consumer of the cancellation 
     and refund rights set forth in section 1006, including notice 
     of any related rules promulgated by the Commission under 
     section 1010.
       ``(b) Notification Required.--A debt settlement provider 
     shall, before the earlier of the date of entering into a 
     written contract with a consumer for debt settlement services 
     or rendering debt settlement services to a consumer, provide 
     to the consumer in writing the following:
       ``(1) An individualized financial analysis of the consumer, 
     including an assessment of the consumer's income, expenses, 
     and debts.
       ``(2) A description of the debt settlement service being 
     offered to the consumer by the debt settlement provider, 
     including the following:
       ``(A) A description of the debt settlement program being 
     offered as part of the service.
       ``(B) A list of each of the consumer's debts, creditors, 
     and debt collectors that will be covered under the program.
       ``(3) A statement containing the following:
       ``(A) A good-faith estimate of the length of time it will 
     take to achieve settlement of each debt covered under the 
     program.
       ``(B) The specific time by which the debt settlement 
     service provider will make a bona fide settlement offer to 
     each creditor and debt collector covered under the program.
       ``(C) The total amount of debt owed by the consumer to each 
     creditor covered under the program.
       ``(D) An estimate of the total and the monthly savings the 
     consumer will be required to accumulate to complete the 
     program.
       ``(4) A clear and conspicuous statement that--
       ``(A) the consumer remains legally obligated to make 
     periodic or scheduled payments to creditors while 
     participating in a debt settlement program; and
       ``(B) the debt settlement provider will not make any 
     periodic or scheduled payments to creditors on behalf of the 
     consumer.
       ``(5) A clear and conspicuous notice to the consumer that--
       ``(A) the utilization of debt settlement service may not be 
     suitable for all consumers;
       ``(B) the utilization of debt settlement service may 
     adversely impact the consumer's credit history and credit 
     score;
       ``(C) the consumer may inquire about other means of dealing 
     with indebtedness, including nonprofit credit counseling and 
     bankruptcy;
       ``(D) the failure to make periodic or scheduled payments to 
     a creditor--
       ``(i) is likely to affect adversely the consumer's 
     creditworthiness;
       ``(ii) may result in continued collection activity by 
     creditors or debt collectors;
       ``(iii) may result in the consumer being sued by one or 
     more creditors or debt collectors, and in the garnishment of 
     the consumer's wages; and
       ``(iv) may increase the amount of money the consumer owes 
     to one or more creditors or debt collectors due to the 
     imposition by the creditor of interest charges, late fees, 
     and other penalty fees; and
       ``(E) any savings the consumer realizes from use of a debt 
     settlement service may be taxable income.
       ``(c) Determination of Benefit to Consumers Required.--A 
     debt settlement provider may not enter into a written 
     contract with a consumer unless the debt settlement provider 
     makes written determinations, supported by the financial 
     analysis, that--
       ``(1) the consumer can reasonably meet the requirements of 
     the proposed debt settlement program included in the debt 
     settlement service offered to the consumer, including the 
     fees and the periodic savings amounts set forth in the 
     savings goals under the program;
       ``(2) there is a net tangible financial benefit to the 
     consumer of entering into the proposed debt settlement 
     program; and
       ``(3) the debt settlement program is suitable for the 
     consumer at the time the contract is to be signed.
       ``(d) Choice of Language.--If a debt settlement provider 
     communicates with a consumer primarily in a language other 
     than English, the debt settlement provider shall furnish to 
     the consumer a translation of the disclosures and documents 
     required by this title in that other language.
       ``(e) Monthly Statements Required.--A debt settlement 
     provider shall, not less frequently than monthly, provide 
     each consumer with which it has a contract for the provision 
     of debt settlement service a statement of account balances, 
     fees paid, settlements completed, remaining debts, and any 
     other term considered appropriate by the Commission.

     ``SEC. 1003. PROHIBITED ACTS.

       ``(a) Loans.--A debt settlement provider may not make loans 
     or offer credit or solicit or accept any note, mortgage, or 
     negotiable instrument other than a check signed by the 
     consumer and dated no later than the date of signature.
       ``(b) Confession of Judgment.--A debt settlement provider 
     may not take any confession of judgment or power of attorney 
     to confess judgment against the consumer or appear as the 
     consumer or on behalf of the consumer in any judicial or non-
     judicial proceedings.

[[Page S3556]]

       ``(c) Release or Waiver of Obligation.--A debt settlement 
     provider may not take any release or waiver of any obligation 
     to be performed on the part of the debt settlement provider 
     or any right of the consumer.
       ``(d) Receipt of Third-Party Compensation.--A debt 
     settlement provider may not receive any cash, fee, gift, 
     bonus, premium, reward, or other compensation from any person 
     other than the consumer explicitly for the provision of debt 
     settlement service to that consumer, without prior disclosure 
     of such to the consumer.
       ``(e) Confidentiality.--In the absence of a subpoena issued 
     to compel disclosure, a debt settlement provider may not 
     (without prior written consent of the consumer) disclose to 
     anyone the name or any personal information of a consumer for 
     whom the debt settlement provider has provided or is 
     providing debt settlement service other than to a consumer's 
     own creditors or the debt settlement provider's agents, 
     affiliates, or contractors for the purpose of providing debt 
     or settlement service.
       ``(f) Misrepresentation, Omission, and False Promises.--A 
     debt settlement provider may not misrepresent, directly or by 
     implication, any material fact, make a material omission, or 
     make a false promise directed to one or more consumers in 
     connection with the solicitation, offering, contracting or 
     provision of debt settlement service, including the 
     following:
       ``(1) The total costs to purchase, receive, or use the 
     services, or the nature of the services to be provided.
       ``(2) Any material restriction, limitation, or condition to 
     receive the offered debt settlement service.
       ``(3) Any material aspect of the performance, efficacy, 
     nature, or central characteristics of the offered debt 
     settlement service.
       ``(4) Any material aspect of the nature of terms of the 
     seller's cancellation policies.
       ``(5) Any claim of affiliation with, or endorsement or 
     sponsorship by, any person or government entity.
       ``(6) Any material aspect of any debt settlement service, 
     including the following:
       ``(A) The amount of time necessary to achieve settlement of 
     all debt.
       ``(B) The amount of money or the percentage of the debt 
     amount that the consumer must accumulate before the provider 
     will initiate attempts with the consumer's creditors or debt 
     collectors to settle the debt.
       ``(C) The effect of the service on a consumer's 
     creditworthiness.
       ``(D) Whether the provider is a nonprofit or a for-profit 
     entity.
       ``(g) Purchasing of Debts.--A debt settlement provider may 
     not purchase debts or engage in the practice or business of 
     debt collection.
       ``(h) Secured Debt.--A debt settlement provider may not 
     include in a debt settlement agreement any secured debt.
       ``(i) Unfair or Deceptive Acts or Practices.--A debt 
     settlement provider may not employ any unfair, or deceptive 
     act or practice, including the omission of any material 
     information.
       ``(j) Limitation on Communication.--A debt settlement 
     provider may not--
       ``(1) obtain a power of attorney or other authorization 
     from a consumer that prohibits or limits the consumer or any 
     creditor from communication directly with one another; or
       ``(2) represent, expressly or by implication, that a 
     consumer cannot or should not contact or communicate with any 
     creditor.

     ``SEC. 1004. FEES.

       ``(a) Types of Fees Permitted.--The types of fees that a 
     debt settlement provider may charge a consumer are the 
     following:
       ``(1) Enrollment fees.
       ``(2) Settlement fees.
       ``(b) Types of Fees Prohibited.--All fee types not included 
     under subsection (a) are prohibited, including maintenance 
     fees.
       ``(c) Enrollment Fee Amounts.--The amount of an enrollment 
     fee charged by a debt settlement provider shall not exceed 
     the lesser of--
       ``(1) the amount that is reasonable and commensurate to the 
     debt settlement service provided to a consumer; and
       ``(2) $50.
       ``(d) Debt Settlement Fee Amounts.--The amount of a 
     settlement fee charged by a debt settlement provider shall 
     not exceed the lesser of--
       ``(1) the amount that is reasonable and commensurate to the 
     debt settlement service provided to a consumer; and
       ``(2) the amount that is 10 percent of the difference 
     between--
       ``(A) the principal amount of that debt; and
       ``(B) the amount--
       ``(i) paid by the debt settlement provider to the creditor 
     pursuant to a settlement negotiated by the debt settlement 
     provider on behalf of the consumer as full and complete 
     satisfaction of the creditor's claim with regard to that 
     debt; or
       ``(ii) negotiated by the debt settlement provider and paid 
     by the consumer to the creditor pursuant to a settlement 
     negotiated by the debt settlement provider on behalf of the 
     consumer as full and complete satisfaction of the creditor's 
     claim with regard to that debt.
       ``(e) Timing of Debt Settlement Fees.--A debt settlement 
     provider shall not collect any debt settlement fee from a 
     consumer until--
       ``(1) a creditor enters into a legally enforceable written 
     agreement with the consumer, in a form prescribed by the 
     Commission, to accept funds in a specific dollar amount as 
     full and complete satisfaction of the creditor's claim with 
     regard to that debt; and
       ``(2) those funds are provided--
       ``(A) by the debt settlement provider on behalf of the 
     consumer; or
       ``(B) directly by the consumer to the creditor pursuant to 
     a settlement negotiated by the debt settlement provider.

     ``SEC. 1005. CONSUMER SETTLEMENT ACCOUNTS.

       ``(a) Trust Account Required.--A debt settlement provider 
     who receives funds from a consumer shall hold all funds 
     received for a consumer settlement account in a properly 
     designated trust account in a federally insured depository 
     institution. Such funds shall remain the property of the 
     consumer until the debt settlement provider disburses the 
     funds to a creditor on behalf of the consumer as full or 
     partial satisfaction of the consumer's debt to the creditor 
     or the creditor's claim against the consumer.
       ``(b) Independent Administration of Account.--A debt 
     settlement provider may not hold funds received for a 
     consumer settlement account under subsection (a) in an 
     account administered by an entity that--
       ``(1) is owned by, controlled by, or in any way affiliated 
     with the debt settlement service provider; or
       ``(2) gives or accepts any money or other compensation in 
     exchange for referrals of business involving the debt 
     settlement service provider.
       ``(c) Limitations.--A debt settlement service provider 
     shall not--
       ``(1) be named on a consumer's bank account;
       ``(2) take a power of attorney in a consumer's bank 
     account;
       ``(3) create a demand draft on a consumer's bank account;
       ``(4) exercise any control over any bank account held by or 
     on behalf of the consumer; or
       ``(5) obtain any information about a consumer's bank 
     account from any person other than the consumer, except 
     information obtained with the consumer's permission from the 
     consumer's settlement account as necessary to comply with the 
     requirements of section 1002(e).

     ``SEC. 1006. CANCELLATION OF CONTRACT.

       ``(a) In General.--A consumer may cancel a contract with a 
     debt settlement provider at any time.
       ``(b) Refunds.--
       ``(1) Cancellation within 90 days or upon violation of this 
     title.--If a consumer cancels a contract with a debt 
     settlement provider not later than 90 days after the date of 
     the execution of the contract or at any time upon a violation 
     of a provision of this title by the debt settlement provider, 
     the debt settlement provider shall refund to the consumer 
     all--
       ``(A) fees paid to the debt settlement provider by the 
     consumer, with the exception of any earned settlement fee; 
     and
       ``(B) funds paid by the consumer to the debt settlement 
     provider that--
       ``(i) have accumulated in a consumer settlement account; 
     and
       ``(ii) the debt settlement provider has not disbursed to 
     creditors.
       ``(2) Cancellations after 90 days.--If a consumer cancels a 
     contract with a debt settlement provider later than 90 days 
     after the date of the execution of the contract and for any 
     reason other than for a violation of a provision of this 
     title by the debt settlement provider, the debt settlement 
     provider shall refund to the consumer--
       ``(A) half of all of the fees collected from the consumer, 
     with the exception of any earned settlement fees; and
       ``(B) all funds paid by the consumer to the debt settlement 
     provider that have accumulated in a consumer settlement 
     account and which the debt service provider has not disbursed 
     to creditors.
       ``(3) Timing of refunds.--A debt settlement provider shall 
     make any refund required under this subsection not later than 
     5 business days after a notice of cancellation is made on 
     behalf of the consumer under subsection (d).
       ``(4) Statement of account.--A debt settlement provider 
     making a refund to a consumer under this subsection shall 
     include with such refund a full statement of account showing 
     the following:
       ``(A) The fees received by the debt settlement provider 
     from the consumer.
       ``(B) The fees refunded to the consumer by the debt 
     settlement provider.
       ``(C) The savings of the consumer held by the debt 
     settlement provider.
       ``(D) The payments made by the debt settlement provider to 
     creditors on behalf of the consumer.
       ``(E) The settlement fees earned, if any, by the debt 
     settlement provider by settling debt on behalf of the 
     consumer.
       ``(F) The savings of the consumer refunded to the consumer 
     by the debt settlement provider.
       ``(c) Revocation of Powers of Attorney and Direct Debit 
     Authorizations.--Upon cancellation of a contract by a 
     consumer--
       ``(1) all powers of attorney and direct debit 
     authorizations granted to the debt settlement provider by the 
     consumer are revoked and voided; and
       ``(2) the debt settlement provider shall immediately take 
     any action necessary to reflect cancellation of the contract, 
     including notifying the recipient of any direct debit 
     authorization.
       ``(d) Notice of Cancellation to Creditors.--Upon the 
     cancellation of a contract under this section of the Act, the 
     debt settlement provider shall provide timely notice of

[[Page S3557]]

     the cancellation of such contract to each of the creditors 
     with whom the debt settlement provider has had any prior 
     communication on behalf of the consumer in connection with 
     the provision of any debt settlement service.

     ``SEC. 1007. OBLIGATION OF GOOD FAITH.

       ``A debt settlement provider shall act in good faith in all 
     matters under this title.

     ``SEC. 1008. INVALIDATION OF CONTRACTS.

       ``(a) Consumer Waivers Invalid.--A waiver by a consumer of 
     any protection provided or any right of the consumer under 
     this title--
       ``(1) is void; and
       ``(2) may not be enforced by any other person.
       ``(b) Attempt To Obtain Waiver.--Any attempt by any person 
     to obtain a waiver from any consumer of any protection 
     provided by or any right or protection of the consumer or any 
     obligation or requirement of the debt settlement provider 
     under this title shall be considered a violation of a 
     provision of this title.
       ``(c) Contracts Not in Compliance.--Any contract for a debt 
     settlement service that does not comply with the provisions 
     of this title--
       ``(1) shall be treated as void;
       ``(2) may not be enforced by any other person; and
       ``(3) upon notice of a void contract, a refund by the debt 
     settlement provider to the consumer shall be made as if the 
     contract had been cancelled as provided in section 1006(b)(1) 
     of this title.

     ``SEC. 1009. ADVERTISING, MARKETING, AND COMMUNICATION 
                   PRACTICES.

       ``A debt settlement provider shall not state or imply 
     claims, results, or outcomes in any advertising, marketing, 
     or other communication with consumers that represent or 
     reflect results or outcomes, including about the percentage 
     or dollar amount by which debt may be reduced or the amount a 
     consumer may save or the historical experience of its 
     customers with respect to debt reduction, that--
       ``(1) are materially different from the actual average 
     result or outcome achieved by that debt settlement provider 
     on all of the debt of consumers who enter the program; or
       ``(2) are not verified by an independent audit that 
     documents that the described result or outcome was achieved 
     for all debt enrolled in the program by at least 80 percent 
     of the customers who began the service in the most recent 2 
     calendar year period.

     ``SEC. 1010. RULEMAKING BY FEDERAL TRADE COMMISSION.

       ``(a) In General.--Notwithstanding title X of the Restoring 
     American Financial Stability Act of 2010, the Commission may 
     prescribe rules with respect to advertising and marketing 
     practices, record retention, provision of accountings to 
     consumers, and such other matters as the Commission considers 
     necessary to improve the consumer experience with debt 
     settlement providers.
       ``(b) Debt Relief Service Rules.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Commission may prescribe rules with respect to the providers 
     of debt relief service not otherwise covered by this title.
       ``(2) Exception.--Any rule prescribed under paragraph (1) 
     shall not be applicable to or otherwise include services 
     provided by those persons or entities identified in section 
     1001(6)(B) or section 1001(7)(B).
       ``(3) Debt relief service defined.--In this subsection, the 
     term `debt relief service' means any service represented, 
     directly or by implication, to renegotiate, or in any way 
     alter the terms of payment or other terms of the debt between 
     a consumer and one or more unsecured creditors or debt 
     collectors, including a reduction in the balance, interest 
     rate, or fees owed by a consumer to an unsecured creditor or 
     debt collector.
       ``(c) Procedure.--All rulemaking under this title shall be 
     conducted in accordance with section 553 of title 5, United 
     States Code, and shall not be subject to other procedures set 
     forth in section 18 of the Federal Trade Commission Act (15 
     U.S.C. 57a).

     ``SEC. 1011. CIVIL LIABILITY.

       ``(a) Liability Established.--Any debt settlement provider 
     who fails to comply with any provision of this title with 
     respect to any consumer shall be liable to such consumer in 
     an amount equal to the sum of the amounts determined under 
     each of the following:
       ``(1) Actual damages.--The greater of--
       ``(A) the amount of any actual damage sustained by such 
     consumer as a result of such failure; or
       ``(B) any amount paid by the consumer to the debt 
     settlement provider.
       ``(2) Statutory damages.--An amount determined by the court 
     of not less than $1,000 nor more than $5,000 per violation.
       ``(3) Punitive damages.--
       ``(A) Individual actions.--In the case of any action by an 
     individual, such additional amount as the court may allow.
       ``(B) Class actions.--In the case of a class action, the 
     sum of--
       ``(i) the aggregate of the amount which the court may allow 
     for each named plaintiff; and
       ``(ii) the aggregate of the amount which the court may 
     allow for each other class member, without regard to any 
     minimum individual recovery.
       ``(4) Attorneys' fees.--In the case of any successful 
     action to enforce any liability under paragraph (1), (2), or 
     (3), the costs of the action, together with reasonable 
     attorneys' fees.
       ``(b) Factors To Be Considered in Awarding Punitive 
     Damages.--In determining the amount of any liability of any 
     debt settlement provider under subsection (a)(2), the court 
     shall consider, among other relevant factors--
       ``(1) the frequency and persistence of noncompliance by the 
     debt settlement provider;
       ``(2) the nature of the noncompliance;
       ``(3) the extent to which such noncompliance was 
     intentional; and
       ``(4) in the case of any class action, the number of 
     consumers adversely affected.

     ``SEC. 1012. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

       ``(a) In General.--Notwithstanding title X of the Restoring 
     American Financial Stability Act of 2010, the Commission 
     shall enforce the provisions of this title in the same 
     manner, by the same means, and with the same jurisdiction, 
     powers, and duties as though all applicable terms and 
     provisions of the Federal Trade Commission Act (15 U.S.C. 41 
     et seq.) were incorporated into and made part of this title.
       ``(b) Unfair or Deceptive Acts or Practices.--A failure to 
     comply with a provision of this title or a violation of a 
     rule prescribed under section 1010 shall be treated as a 
     violation of a rule defining an unfair or deceptive act or 
     practice prescribed under section 18(a)(1)(B) of the Federal 
     Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

     ``SEC. 1013. ACTION BY STATES.

       ``(a) In General.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of the State has been or is threatened or 
     adversely affected by the engagement of any person subject to 
     a provision of this title or a rule prescribed under section 
     1010 in a practice that violates such provision or rule, the 
     State may, as parens patriae, bring a civil action on behalf 
     of the residents of the State in an appropriate district 
     court of the United States or other court of competent 
     jurisdiction--
       ``(1) to enjoin that practice;
       ``(2) to enforce compliance with the provision or rule; or
       ``(3) to obtain damages under section 1011 on behalf of 
     residents of the State.
       ``(b) Attorneys' Fees.--In the case of any successful 
     action under paragraph (1), (2), or (3) of subsection (a), 
     the attorney general of the State bringing the action shall 
     be awarded the costs of the action and reasonable attorneys' 
     fees as determined by the court.
       ``(c) Rights of Federal Trade Commission.--
       ``(1) Notice to federal trade commission.--
       ``(A) In general.--Except as provided in subparagraph (C), 
     the attorney general of a State shall notify the Federal 
     Trade Commission in writing of any civil action under 
     subsection (a), prior to initiating such civil action.
       ``(B) Contents.--The notice required by subparagraph (A) 
     shall include a copy of the complaint to be filed to initiate 
     such civil action.
       ``(C) Exception.--If it is not feasible for the attorney 
     general of a State to provide the notice required by 
     subparagraph (A), the State shall provide notice immediately 
     upon instituting a civil action under subsection (a).
       ``(2) Intervention by federal trade commission.--Upon 
     receiving notice required by paragraph (1) with respect to a 
     civil action, the Commission may--
       ``(A) intervene in such action; and
       ``(B) upon intervening--
       ``(i) be heard on all matters arising in such civil action;
       ``(ii) remove the action to the appropriate district court 
     of the United States; and
       ``(iii) file petitions for appeal of a decision in such 
     action.
       ``(d) Investigatory Powers.--Nothing in this section may be 
     construed to prevent the attorney general of a State from 
     exercising the powers conferred on such attorney general by 
     the laws of such State to conduct investigations or to 
     administer oaths or affirmations or to compel the attendance 
     of witnesses or the production of documentary and other 
     evidence.
       ``(e) Effect of Action by Federal Trade Commission.--If the 
     Federal Trade Commission institutes a civil action or an 
     administrative action to enforce a violation of a provision 
     of this title or a rule prescribed under section 1010, no 
     State may, during the pendency of such action, bring a civil 
     action under subsection (a) against any defendant named in 
     the complaint of the Commission for violation of a provision 
     of this title or rule prescribed under section 1010 that is 
     alleged in such complaint.
       ``(f) Actions by Other State Officials.--
       ``(1) In general.--In addition to actions brought by an 
     attorney general of a State under subsection (a), an action 
     may be brought by officials in a State who are so authorized.
       ``(2) Savings provision.--Nothing contained in this section 
     may be construed to prohibit an authorized official of a 
     State from proceeding in a court of such State on the basis 
     of an alleged violation of any civil or criminal statute of 
     such State.

     ``SEC. 1014. STATUTE OF LIMITATIONS.

       ``Any action to enforce any liability under section 1011 
     may be brought before the later of--
       ``(1) the end of the 5-year period beginning on the date of 
     the occurrence of the violation involved; or

[[Page S3558]]

       ``(2) in any case in which any debt settlement provider has 
     materially and willfully misrepresented any information that 
     the debt settlement provider is required, by any provision of 
     this title, to disclose to any consumer and that is material 
     to the establishment of the debt settlement provider's 
     liability to the consumer under this title, the end of the 5-
     year period beginning on the date of the discovery by the 
     consumer of the violation.

     ``SEC. 1015. RELATION TO STATE LAW.

       ``This title shall not annul, alter, affect, or exempt any 
     person subject to the provisions of this title from complying 
     with the law of any State except to the extent that such law 
     is inconsistent with any provision of this title, and then 
     only to the extent of the inconsistency. For purposes of this 
     section, a State statute, regulation, order, or 
     interpretation is not inconsistent with the provisions of 
     this title if the protection such statute, regulation, order, 
     or interpretation affords any person is greater than the 
     protection provided under this title and any subsequent 
     amendments. Nothing in this title shall limit or prohibit a 
     State from prohibiting or otherwise restricting the provision 
     of debt settlement services, or imposing and administering a 
     system of additional requirements, prohibitions, 
     registration, or licensure.''.

     SEC. 1302. INITIAL REGULATIONS.

       (a) In General.--Not later than 60 days after the date of 
     the enactment of this Act, the Federal Trade Commission shall 
     commence a rulemaking to prescribe the following:
       (1) The form of the written notices required under 
     subparagraphs (M) and (N) of subsection (a)(2) and subsection 
     (b)(5) of section 1002 of the Consumer Credit Protection Act, 
     as added by section 1301 of this title.
       (2) The form of the statement required under subsection (e) 
     of such section 1002.
       (3) The form for an agreement described in section 
     1004(e)(1) of such Act.
       (b) Deadline.--The Federal Trade Commission shall complete 
     the rulemaking required by subsection (a) not later than 1 
     year after the date of the enactment of this Act.
       (c) Procedure.--All rulemaking under subsection (a) shall 
     be conducted in accordance with section 553 of title 5, 
     United States Code, and shall not be subject to other 
     procedures set forth in section 18 of the Federal Trade 
     Commission Act (15 U.S.C. 57a).

     SEC. 1303. EFFECTIVE DATE.

       Title X of the Consumer Credit Protection Act, as added by 
     section 1301 of this title, shall take effect on the date 
     that is 60 days after the date of the enactment of this Act.
                                 ______
                                 
  SA 3961. Mr. BROWNBACK submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``to big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1258, line 7, insert ``, as such amount is indexed 
     for inflation,'' before ``and''.
       On page 1258, line 10, insert ``, as such amount is indexed 
     for inflation,'' before ``and''.
       On page 1267, line 18, insert before the semicolon ``, as 
     such amount is indexed for inflation''.
       On page 1267, line 20, insert before the period ``, as such 
     amount is indexed for inflation''.
       On page 1267, strike line 21 and all that follows through 
     page 1270, line 21, and insert the following:
       (b) Enforcement.--Notwithstanding any other provision of 
     this title, the prudential regulator of a person described in 
     subsection (a) shall have exclusive authority to enforce 
     compliance with respect to such person.
       (c) Rulemaking Authority.--
       (1) In general.--Notwithstanding any other provision of 
     this title, the prudential regulators may exercise concurrent 
     authority with the Bureau to promulgate regulations under the 
     federal consumer laws with respect to a person described in 
     subsection (a).
       (2) Preemption.--A regulation promulgated by the prudential 
     regulators under the enumerated consumer laws shall occupy 
     the field and preempt any regulation promulgated by the 
     Bureau.
       (d) Clarification of Existing Authority of Prudential 
     Regulators.--No provision of this title may be construed as 
     altering, amending, or affecting the authority of the 
     prudential regulators to exercise supervisory or enforcement 
     authority, order assessments, or initiate enforcement 
     proceedings with respect to a person described in subsection 
     (a).
                                 ______
                                 
  SA 3962. Mr. MERKLEY (for himself, Ms. Klobuchar, Mr. Schumer, Ms. 
Snowe, Mr. Brown of Massachusetts, Mr. Begich, Mrs. Boxer, Mr. Dodd, 
Mr. Kerry, Mr. Franken, and Mr. Levin) submitted an amendment intended 
to be proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd 
(for himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; as follows:

       On page 1430, between lines 7 and 8, insert the following:

     SEC. 1074. PROHIBITED PAYMENTS TO MORTGAGE ORIGINATORS.

       Section 129 of the Truth in Lending Act (15 U.S.C. 1639) is 
     amended by inserting after subsection (j) the following:
       ``(k) Prohibition on Steering Incentives.--
       ``(1) In general.--For any consumer credit transaction 
     secured by real property or a dwelling, no loan originator 
     shall receive from any person and no person shall pay to a 
     loan originator, directly or indirectly, compensation that 
     varies based on the terms of the loan (other than the amount 
     of the principal).
       ``(2) Restructuring of financing origination fee.--
       ``(A) In general.--For any consumer credit transaction 
     secured by real property or a dwelling, a loan originator may 
     not arrange for a consumer to finance through the rate any 
     origination fee or cost except bona fide third party 
     settlement charges not retained by the creditor or loan 
     originator.
       ``(B) Exception.--Notwithstanding subparagraph (A), a loan 
     originator may arrange for a consumer to finance through the 
     rate an origination fee or cost if--
       ``(i) the loan originator does not receive any other 
     compensation, directly or indirectly, from the consumer 
     except the compensation that is financed through the rate;
       ``(ii) no person who knows or has reason to know of the 
     consumer-paid compensation to the loan originator, other than 
     the consumer, pays any compensation to the loan originator, 
     directly or indirectly, in connection with the transaction; 
     and
       ``(iii) the consumer does not make an upfront payment of 
     discount points, origination points, or fees, however 
     denominated (other than bona fide third party settlement 
     charges).
       ``(3) Rules of construction.--No provision of this 
     subsection shall be construed as--
       ``(A) limiting or affecting the amount of compensation 
     received by a creditor upon the sale of a consummated loan to 
     a subsequent purchaser;
       ``(B) restricting a consumer's ability to finance, at the 
     option of the consumer, including through principal or rate, 
     any origination fees or costs permitted under this 
     subsection, or the loan originator's right to receive such 
     fees or costs (including compensation) from any person, 
     subject to paragraph (2)(B), so long as such fees or costs do 
     not vary based on the terms of the loan (other than the 
     amount of the principal) or the consumer's decision about 
     whether to finance such fees or costs; or
       ``(C) prohibiting incentive payments to a loan originator 
     based on the number of loans originated within a specified 
     period of time.
       ``(4) Loan originator.--For the purposes of this section, 
     the term `loan originator'--
       ``(A) means any person who, for direct or indirect 
     compensation or gain, or in the expectation of direct or 
     indirect compensation or gain, with respect to credit to be 
     secured by real property or a dwelling--
       ``(i) arranges for an extension, renewal, or continuation 
     of such credit;
       ``(ii) takes an application for credit or assists a 
     consumer in applying for such credit; or
       ``(iii) offers or negotiates terms of such credit;
       ``(B) does not include any person who is not otherwise 
     described in subparagraph (A) and who performs purely 
     administrative or clerical tasks on behalf of a person who is 
     described in subparagraph (A); and
       ``(C) does not include a person that only performs real 
     estate brokerage activities and is licensed or registered in 
     accordance with applicable State law, unless the person is 
     compensated by a lender or other loan originator or by any 
     agent of such lender or other loan originator.''.

     SEC. 1075. MINIMUM STANDARDS FOR RESIDENTIAL MORTGAGE LOANS.

       (a) In General.--No rule, order, or guidance issued by the 
     Bureau under this title shall be construed as requiring a 
     depository institution to apply mortgage underwriting 
     standards that do not meet the minimum underwriting standards 
     required by the appropriate prudential regulator of the 
     depository institution.
       (b) Ability to Repay.--
       (1) TILA amendment.--Section 129 of the Truth in Lending 
     Act (15 U.S.C. 1639), as amended by section 1074 of this Act, 
     is further amended by inserting after subsection (k) the 
     following:
       ``(l) Ability to Repay.--
       ``(1) In general.--No creditor may make a loan secured by 
     real property or a dwelling unless the creditor, based on 
     verified and documented information, determines that, at the 
     time the loan is consummated, the consumer has a reasonable 
     ability to repay the loan, according to its terms, and all 
     applicable taxes, insurance, and assessments.
       ``(2) Multiple loans.--If the creditor knows, or has reason 
     to know, that 1 or more loans secured by the same real 
     property or dwelling will be made to the same consumer,

[[Page S3559]]

     the creditor shall, based on verified and documented 
     information, determine that the consumer has a reasonable 
     ability to repay the combined payments of all loans on the 
     same real property or dwelling according to the terms of 
     those loans and all applicable taxes, insurance, and 
     assessments.
       ``(3) Basis for determination.--A determination under this 
     subsection of a consumer's ability to repay a loan described 
     in paragraph (1) shall include consideration of the 
     consumer's credit history, current income, expected income 
     the consumer is reasonably assured of receiving, current 
     obligations, debt-to-income ratio or the residual income the 
     consumer will have after paying non-mortgage debt and 
     mortgage-related obligations, employment status, and other 
     financial resources other than the consumer's equity in the 
     dwelling or real property that secures repayment of the loan.
       ``(4) Income verification.--A creditor shall verify amounts 
     of income or assets that such creditor relies on to determine 
     repayment ability, including expected income or assets, by 
     reviewing the consumer's Internal Revenue Service Form W-2, 
     tax returns, payroll receipts, financial institution records, 
     or other third-party documents that provide reasonably 
     reliable evidence of the consumer's income or assets. In 
     order to safeguard against fraudulent reporting, any 
     consideration of a consumer's income history in making a 
     determination under this subsection shall include the 
     verification of such income by the use of--
       ``(A) Internal Revenue Service transcripts of tax returns; 
     or
       ``(B) a method that quickly and effectively verifies income 
     documentation by a third party subject to rules prescribed by 
     the Board.
       ``(5) Presumption of ability to repay.--Any creditor with 
     respect to any consumer loan secured by real property or a 
     dwelling is presumed to have complied with this subsection 
     with respect to such loan if the creditor--
       ``(A) verifies the consumer's ability to repay as provided 
     in paragraphs (1), (2), (3), and (4); and
       ``(B) determines the consumer's ability to repay using the 
     maximum rate permitted under the loan during the first 5 
     years following consummation and a payment schedule that 
     fully amortizes the loan and taking into account current 
     obligations and all applicable taxes, insurance, and 
     assessments.
       ``(6) Exceptions to presumption.--Notwithstanding paragraph 
     (5), no presumption of compliance shall be applied to a 
     loan--
       ``(A) for which the regular periodic payments for the loan 
     may--
       ``(i) result in an increase of the principal balance; or
       ``(ii) allow the consumer to defer repayment of principal.
       ``(B) the terms of which result in a balloon payment, where 
     a `balloon payment' is a scheduled payment that is more than 
     twice as large as the average of earlier scheduled payments; 
     or
       ``(C) for which the total points and fees payable in 
     connection with the loan exceed 3 percent of the total loan 
     amount, where `points and fees' means points and fees as 
     defined by section 103(aa)(4) of the Truth in Lending Act (15 
     U.S.C. 1602(aa)(4)), except that, for the purposes of 
     computing the total points and fees under this subparagraph, 
     the total points and fees attributable to any premium for 
     mortgage guarantee insurance provided by an agency of the 
     Federal Government or an agency of a State shall exclude any 
     amount of the points and fees for such insurance greater than 
     1 percent of the total loan amount.
       ``(7) Exemption.--
       ``(A) The Board may revise, add to, or subtract from the 
     criteria under paragraphs (5) and (6) and subparagraphs (B) 
     and (C) of this paragraph upon a finding that such 
     regulations are necessary or appropriate to effectuate the 
     purposes of this title, to prevent circumvention or evasion 
     thereof, or to facilitate compliance with this subsection.
       ``(B) Bridge loans.--This subsection does not apply to a 
     temporary or `bridge' loan with a term of 12 months or less, 
     including to any loan to purchase a new dwelling where the 
     consumer plans to sell a current dwelling within 12 months.
       ``(C) Reverse mortgages.--This subsection does not apply 
     with respect to any reverse mortgage.
       ``(8) Seasonal income.--If documented income, including 
     income from a small business, is a repayment source for an 
     extension of credit secured by residential real estate or a 
     dwelling, a creditor may consider the seasonality and 
     irregularity of such income in the underwriting of and 
     scheduling of payments for such credit.''.
       (2) Conforming amendment.--Section 129 of the Truth in 
     Lending Act (15 U.S.C. 1639), as amended by this Act, is 
     amended--
       (A) by redesignating subsections (k), (l), and (m) as 
     subsections (m), (n), and (o), respectively; and
       (B) in subsection (o), as so redesignated, by striking 
     ``(l)(2)'' and inserting ``(n)(2)''.
       On page 1430, line 8, ``SEC. 1074'' and insert ``SEC. 
     1076''.
       On page 1441, line 1, ``SEC. 1075'' and insert ``SEC. 
     1077''.
       On page 1442, line 10, ``SEC. 1076'' and insert ``SEC. 
     1078''.
                                 ______
                                 
  SA 3963. Mr. BROWN of Massachusetts submitted an amendment intended 
to be proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd 
(for himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 387, line 15, strike ``by rule'' and all that 
     follows through page 387, line 3 and insert the following: 
     ``by rule, adjust the financial threshold for an accredited 
     investor, as set forth in the rules of the Commission under 
     the Securities Act of 1933, not less frequently than once 
     every 5 years, to reflect the percentage increase in the cost 
     of living following the date of enactment of this Act.''.
                                 ______
                                 
  SA 3964. Mr. HARKIN (for himself and Ms. Cantwell) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 557, strike lines 4 through 14 and insert the 
     following:

     `swap execution facility' means an electronic trading system 
     with pre-trade and post-trade transparency in which multiple 
     participants have the ability to execute or trade swaps by 
     accepting bids and offers made by other participants that are 
     open to multiple participants in the system, but which is not 
     a designated contract market.''; and

       Beginning on page 773, strike line 24 and all that follows 
     through page 774, line 7, and insert the following:

     `swap execution facility' means an electronic trading system 
     with pre-trade and post-trade transparency in which multiple 
     participants have the ability to execute or trade swaps by 
     accepting bids and offers made by other participants that are 
     open to multiple participants in the system, but which is not 
     a designated contract market.
                                 ______
                                 
  SA 3965. Mr. HARKIN submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 691, strike lines 10 through 12 and insert the 
     following:

     contract markets.--The governing body of the board of trade 
     shall be constituted to facilitate, consistent with other 
     applicable core principles and duties, consideration of the 
     views and objectives of market participants.
                                 ______
                                 
  SA 3966. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill S. 3217, to promote the financial stability of the 
United States by improving accountability and transparency in the 
financial system, to end ``too big to fail'', to protect the American 
taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REVOLVING DOOR PROHIBITIONS FOR FINANCIAL 
                   REGULATORS.

       (a) In General.--Section 207(c)(2)(A) of title 18, United 
     States Code, is amended--
       (1) in clause (iv), by striking ``or'' at the end;
       (2) in clause (v), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(vi) employed by the Securities and Exchange Commission 
     as an officer, attorney, economist, examiner, or other 
     employee described in section 4802(b) of title 5 and who 
     receives increased pay or additional benefits or compensation 
     under subsection (c) or (d) of that section; or
       ``(vii)(I) employed by--
       ``(aa) the Federal Reserve System as an employee described 
     in section 11(l) of the Federal Reserve Act (12 U.S.C. 
     248(l));
       ``(bb) the Farm Credit Administration as an employee 
     described in section 5.11(c)(2) of the Farm Credit Act of 
     1971 (12 U.S.C. 2245(c)(2));
       ``(cc) the Federal Deposit Insurance Corporation as an 
     employee described in section

[[Page S3560]]

     9(a) of the Federal Deposit Insurance Act (12 U.S.C. 
     1819(a));
       ``(dd) the National Credit Union Administration as an 
     employee described in section 120 of the Federal Credit Union 
     Act (12 U.S.C. 1766);
       ``(ee) the Office of the Comptroller of Currency as an 
     employee described in section 5240 of the Revised Statutes 
     (12 U.S.C. 482) or section 206 of the Bank Conservation Act 
     (12 U.S.C. 206);
       ``(ff) the Office of Federal Housing Enterprise Oversight 
     as an employee described in section 1315 of the Federal 
     Housing Enterprises Financial Safety and Soundness Act of 
     1992 (12 U.S.C. 4515);
       ``(gg) the Office of Thrift Supervision as an employee 
     described in section 3(h) of the Home Owners' Loan Act (12 
     U.S.C. 1462a(h)); or
       ``(hh) the Commodities Futures Trading Commission as an 
     employee described in section 2(a)(7) of the Commodity 
     Exchange Act (7 U.S.C. 2(a)(7)); and
       ``(II) who receives increased pay or additional benefits or 
     compensation in excess of any pay limitation under title 5, 
     as authorized by the board, commission, or agency.''.
       (b) Revolving Door Registration.--
       (1) Definitions.--In this subsection--
       (A) the term ``covered employee'' means a former employee 
     of a covered financial regulator who--
       (i) received increased pay or additional benefits or 
     compensation in excess of any pay limitation under title 5, 
     United States Code, as authorized by the covered financial 
     regulator on or after the date of enactment of this Act; and
       (ii) represents any individual, corporation, or other 
     entity with business before the covered financial regulator 
     that employed the employee; and
       (B) the term ``covered financial regulator'' means--
       (i) the Commission
       (ii) the Federal Reserve System;
       (iii) the Farm Credit Administration;
       (iv) the Corporation;
       (v) the National Credit Union Administration;
       (vi) the Office of the Comptroller of Currency;
       (vii) the Office of Federal Housing Enterprise Oversight;
       (viii) the Office of Thrift Supervision; and
       (ix) the Commodities Futures Trading Commission.
       (2) Registration.--
       (A) In general.--Not later than 120 days after the date of 
     enactment of this Act, each covered financial regulator shall 
     establish a website through which a covered employee may 
     register and update information in accordance with 
     subparagraph (B)
       (B) Registration by covered employees.--A covered 
     employee--
       (i) shall register with the covered financial regulator 
     that employed the covered employee before representing any 
     individual, corporation, or other entity with business before 
     the covered financial regulator, which shall include 
     providing--

       (I) the name of the covered employee and the last job title 
     held by the covered employee at the covered financial 
     regulator;
       (II) the name of the individual, corporation, or other 
     entity;
       (III) a description of the purpose of the representation of 
     the individual, corporation, or other entity;
       (IV) a comprehensive list of all matters that the 
     representation of the individual, corporation, or other 
     entity will include;
       (V) a comprehensive list of all matters in which the 
     covered employee personally and substantially participated 
     while employed by the covered financial regulator; and
       (VI) a description of any restriction on the representation 
     of the individual, corporation, or other entity under Federal 
     law, rule, regulation, or order of the covered financial 
     regulator;

       (ii) shall, if any information provided under clause (i) 
     changes, provide updated information to the covered financial 
     regulator; and
       (iii) may not, during the 2-year period beginning on the 
     date on which the employment of the covered employee with the 
     covered financial regulator terminates, influence any 
     communication to, or appearance before any officer or 
     employee of the covered financial regulator in connection 
     with any matter on which an individual, corporation, or other 
     entity represented by the covered employee seeks official 
     action by any officer or employee of the covered financial 
     regulator.
       (3) Enforcement.--A covered financial regulator may impose 
     a civil monetary penalty on any person that violates 
     paragraph (2)(B) in an amount not less than $10,000 and not 
     more than $100,000 for each violation.
       (4) Public availability.--Not later than 14 days after the 
     date on which information is provided to a covered financial 
     regulator under paragraph (2)(B), the covered financial 
     regulator shall make the information publicly available on 
     the website of the covered financial regulator in a 
     searchable form.
                                 ______
                                 
  SA 3967. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 100, line 23, strike ``and'' and all that follows 
     through ``(G) any'' on line 24 and insert the following:
       (G) potential obligations to third parties in connection 
     with credit derivative transactions between the nonbank 
     financial company supervised by the Board of Governors or a 
     bank holding company described in subsection (a) and the 
     third parties that reference the company or obligations of 
     the company; and
       (H) any
                                 ______
                                 
  SA 3968. Mr. TESTER (for himself, Mrs. Murray, and Mr. Baucus) 
submitted an amendment intended to be proposed to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1235, strike lines 6 through 10 and insert the 
     following:
       (A) the Bureau shall consider--
       (i) the potential benefits and costs to consumers and 
     covered persons, including the potential reduction of access 
     by consumers to consumer financial products or services 
     resulting from such rule; and
       (ii) the impact of proposed rules on covered persons, as 
     described in section 1026, and the impact on consumers in 
     rural areas;
                                 ______
                                 
  SA 3969. Mr. LEVIN (for himself and Mr. Kaufman) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 370, between lines 13 and 14, insert the following:

     SEC. 333. FDIC EXAMINATION AUTHORITY.

       (a) Examination Authority for Insurance and Orderly 
     Liquidation Purposes.--Section 10(b)(3) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended by 
     striking ``whenever the Board'' and all that follows through 
     the period at the end and inserting the following: ``or 
     depository institution holding company whenever the 
     Chairperson or the Board of Directors determines that a 
     special examination of any such depository institution or 
     depository institution holding company is necessary to 
     determine the condition of such depository institution or 
     depository institution holding company for insurance purposes 
     or for purposes of title II of the Restoring American 
     Financial Stability Act of 2010.''.
       (b) Enforcement Authority.--Section 8(t) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1818(t)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``based on an examination of an insured 
     depository institution'' and inserting ``based on an 
     examination of an insured depository institution or 
     depository institution holding company''; and
       (B) by striking ``with respect to any insured depository 
     institution or'' and inserting ``with respect to any insured 
     depository institution, depository institution holding 
     company, or'';
       (2) in paragraph (2)--
       (A) by striking ``Board of Directors determines, upon a 
     vote of its members,'' and inserting ``Board of Directors, 
     upon a vote of its members, or the Chairperson determines'';
       (B) in subparagraph (B), by striking ``or'' at the end;
       (C) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (D) by adding at the end the following:
       ``(D) the conduct or threatened conduct (including any acts 
     or omissions) of the depository institution holding company 
     poses a risk to the Deposit Insurance Fund or of the exercise 
     of authority under title II of the Restoring American 
     Financial Stability Act of 2010, or may prejudice the 
     interests of the depositors of an affiliated institution.'';
       (3) in paragraph (3)(A), by striking ``upon a vote of the 
     Board of Directors'' and inserting ``upon a determination by 
     the Chairperson or upon a vote of the Board of Directors'';
       (4) in paragraph (4)(A)--
       (A) by striking ``any insured depository institution'' and 
     inserting ``any insured depository institution, depository 
     institution holding company,''; and
       (B) by striking ``the institution'' and inserting ``the 
     institution, holding company,'';

[[Page S3561]]

       (5) in paragraph (4)(B), by striking ``the institution'' 
     each place that term appears and inserting ``the institution, 
     holding company,''; and
       (6) in paragraph (5)(A), by striking ``an insured 
     depository institution'' and inserting ``an insured 
     depository institution, depository institution holding 
     company,''.
       (c) Back-up Examination Authority for Orderly Liquidation 
     Purposes.--The Federal Deposit Insurance Act (12 U.S.C. 1811 
     et seq.) is amended by adding at the end the following:

     ``SEC. 51. BACK-UP EXAMINATION AUTHORITY FOR ORDERLY 
                   LIQUIDATION PURPOSES.

       ``The Corporation may conduct a special examination of a 
     nonbank financial company supervised by the Board of 
     Governors of the Federal Reserve System under section 113 of 
     the Restoring American Financial Stability Act of 2010, if 
     the Chairperson or the Board of Directors determines an 
     examination is necessary to determine the condition of the 
     company for purposes of title II of that Act.''.
       (d) Access to Information for Insurance and Orderly 
     Liquidation Purposes.--The Federal Deposit Insurance Act is 
     amended by adding at the end the following:

     ``SEC. 52. ACCESS TO INFORMATION FOR INSURANCE AND ORDERLY 
                   LIQUIDATION PURPOSES.

       ``(a) Access to Information.--The Corporation may, if the 
     Corporation determines that such action is necessary to carry 
     out its responsibilities relating to deposit insurance or 
     orderly liquidation under this Act, title II of the Restoring 
     American Financial Stability Act of 2010, or otherwise 
     applicable Federal law--
       ``(1) obtain information from an insured depository 
     institution, depository institution holding company, or 
     nonbank financial company supervised by the Board of 
     Governors of the Federal Reserve System under section 113 of 
     the Restoring American Financial Stability Act of 2010;
       ``(2) obtain information from the appropriate Federal 
     banking agency, or any regulator of a nonbank financial 
     company supervised by the Board of Governors of the Federal 
     Reserve System under section 113 of the Restoring American 
     Financial Stability Act of 2010, including examination 
     reports; and
       ``(3) participate in any examination, visitation, or risk-
     scoping activity of an insured depository institution, 
     depository institution holding company, or nonbank financial 
     company supervised by the Board of Governors of the Federal 
     Reserve System under section 113 of the Restoring American 
     Financial Stability Act of 2010.
       ``(b) Enforcement.--The Corporation shall have the 
     authority to take any enforcement action under section 8 
     against any institution or company described in paragraph (1) 
     of subsection (a) that fails to provide any information 
     requested under that paragraph.
       ``(c) Use of Available Information.--The Corporation shall 
     use, in lieu of a request for information under subsection 
     (a), information provided to another Federal or State 
     regulatory agency, publicly available information, or 
     externally audited financial statements to the extent that 
     the Corporation determines such information is adequate to 
     the needs of the Corporation.''.

       On page 1006, strike line 17 and all that follows through 
     page 1007, line 2, and insert the following:
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Standards and oversight.--The Commission shall set 
     standards and exercise oversight of the procedures and 
     methodologies, including qualitative and quantitative data 
     and models, used by nationally recognized statistical rating 
     organizations, to ensure that the credit ratings issued by 
     the nationally recognized statistical rating organizations 
     have a reasonable foundation in fact and analysis. Nothing in 
     this paragraph may be construed to afford a defense against 
     any action or proceeding brought by the Commission to enforce 
     the antifraud provisions of the securities laws.''; and

       On page 1019, line 14, strike ``with respect to'' and all 
     that follows through ``organization'' on line 18 and insert 
     ``to ensure that the qualitative and quantitative data and 
     models used by nationally recognized statistical rating 
     organizations produce credit ratings that have a reasonable 
     foundation in fact and analysis. The rules prescribed under 
     this subsection shall require each nationally recognized 
     statistical rating organization''.

       On page 1020, line 25, strike ``and''.

       On page 1021, line 15, strike the period at the end and 
     insert the following: ``; and
       ``(4) to assign relatively greater credit risk to a 
     financial product or transaction for which--
       ``(A) the rating organization lacks adequate historical 
     performance data;
       ``(B) the assets are provided by persons with a history of 
     providing poorly performing assets;
       ``(C) income from the assets will not be directly 
     contributed to the securitization, product, or transaction;
       ``(D) publicly available information, including trading 
     information, indicates that a prior rating misjudged the 
     credit risk of the product or transaction;
       ``(E) the product or transaction is of sufficient 
     complexity or novelty that the performance of the product or 
     transaction cannot be reliably evaluated; or
       ``(F) there is any other feature that the Commission may 
     specify.

       On page 1023, line 5, strike ``(A)'' and insert the 
     following:
       ``(A) Basic information.--Each nationally recognized 
     statistical rating organization shall disclose at the 
     beginning of the form developed under paragraph (1) basic 
     information about each of the credit ratings that is the 
     subject of the disclosure, including--
       ``(i) the latest rating provided for the product or 
     transaction that is the subject of the disclosure;
       ``(ii) the date upon which the rating described in clause 
     (i) was issued;
       ``(iii) whether that rating described in clause (i) was 
     intended to be effective for less or more than 1 year after 
     the date of issuance of the rating;
       ``(iv) the type of asset to which the rating described in 
     clause (i) applies;
       ``(v) the history and date of any prior rating with respect 
     to the product or transaction during the 5-year period 
     preceding the date of the disclosure; and
       ``(vi) any other basic information, as the Commission may 
     require.
       ``(B)

       On page 1025, line 19, strike ``(B)'' and insert ``(C)''.

       On page 1028 between lines 4 and 5 insert the following:
       ``(E) No reliance on inadequate report.--A nationally 
     recognized statistical rating organization may not rely on a 
     third-party due diligence report if the nationally recognized 
     statistical rating organization has reason to believe that 
     the report is inadequate.

       On page 1042, strike line 15 and all that follows through 
     page 1043, line 9, and insert the following:

     SEC. 939B. ELIMINATING CONFLICTS OF INTEREST THROUGH 
                   INTERMEDIATION.

       (a) Intermediation Proposal.--Not later than 180 days after 
     the date of enactment of this Act, the Commission, through 
     the Office of Credit Ratings, shall issue a notice of 
     proposed rulemaking--
       (1) to establish a system that--
       (A) allows an intermediary to handle the fees provided by 
     issuers to obtain credit ratings from nationally recognized 
     statistical rating organizations, in order to avoid conflicts 
     of interest that arise when an issuer pays for a credit 
     rating with respect to a financial product or transaction 
     that the issuer plans to sell or execute; and
       (B) enables such intermediary to receive fees from issuers, 
     direct fees to nationally recognized statistical rating 
     organizations, and create incentives to reward accurate 
     ratings; and
       (2) that directs or facilitates the formation of, or 
     identifies, an intermediary to carry out the system described 
     in paragraph (1).

       On page 1044, between lines 2 and 3, insert the following:

     SEC. 939D. STRENGTHENING THE ENFORCEMENT AUTHORITY OF THE 
                   COMMISSION OVER NATIONALLY RECOGNIZED 
                   STATISTICAL RATING ORGANIZATIONS.

       (a) Requirement to File Applications and Reports With 
     Commission.--Section 15E of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o-7) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(A), by striking ``furnish to'' and 
     inserting ``file with''; and
       (B) in paragraph (2), by striking ``furnished to'' each 
     place that term appears and inserting ``filed with'';
       (2) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``furnished'' and 
     inserting ``filed'';
       (B) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``furnish to'' and inserting ``file with''; 
     and
       (C) by striking ``furnishing'' each place that term appears 
     and inserting ``filing'';
       (3) in subsection (d)(1), as so redesignated by this Act--
       (A) in subparagraph (B), by striking ``furnished to'' and 
     inserting ``filed with''; and
       (B) in subparagraph (D), by striking ``furnish'' and 
     inserting ``file'';
       (4) in subsection (e)(1), by striking ``furnishing a 
     written notice of withdrawal to the Commission'' and 
     inserting ``filing a written notice of withdrawal with the 
     Commission'';
       (5) in subsection (k), by striking ``furnish to'' and 
     inserting ``file with'';
       (6) in subsection (l)(2)(A)(i), by striking ``furnished'' 
     and inserting ``filed''; and
       (7) in subsection (m)(2), by striking ``furnished'' and 
     inserting ``filed''.
       (b) Authority to Sanction Associated Persons.--Section 
     15E(d)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78o-7), as amended by this Act, is amended--
       (1) by inserting after ``or revoke the registration of any 
     nationally recognized statistical rating organization'' the 
     following: ``, or take enforcement action against or sanction 
     any person who is or was associated, or is or was seeking to 
     become associated, with a nationally recognized statistical 
     rating organization,''; and
       (2) by inserting ``bar,'' after ``placing of limitations, 
     suspension,''.

       On page 1047, strike lines 3 through 15 and insert the 
     following:
       ``(B) require a securitizer to retain an economic 
     interest--
       ``(i) of not less than 5 percent of the credit risk 
     associated with a pool of assets used to create a series of 
     asset-backed securities, and ensure that such economic 
     interest is applied to multiple credit tranches derived from 
     the pool of assets in a manner reasonably designed to ensure 
     that the securitizer retains an economic interest in the 
     success

[[Page S3562]]

     of each class of securities resulting from the securitization 
     of the asset pool; or
       ``(ii) of less than 5 percent of the credit risk associated 
     with a pool of assets used to create a series of asset-backed 
     securities, if and only if each of the assets in the pool 
     pose a low credit risk, the originator meets the underwriting 
     standards prescribed under paragraph (2)(B), and the 
     securitizer conducts a due diligence review reasonably 
     designed to ensure the assets and originator meet the 
     requirements of this paragraph;

       On page 1056, line 17, strike the second period and insert 
     the following: ``.

     SEC. 946. RESTRICTION ON SYNTHETIC ASSET-BACKED SECURITIES.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by inserting after section 15G, as added by this 
     Act, the following new section:

     ``SEC. 15H. RESTRICTION ON SYNTHETIC ASSET-BACKED SECURITIES.

       ``(a) Definition.--For purposes of this section, the term 
     `synthetic asset-backed security' means an asset-backed 
     security with respect to which, by design, the self-
     liquidating financial assets referenced in the synthetic 
     securitization do not provide any direct payment or cash flow 
     to the holder of the security.
       ``(b) Restriction.--
       ``(1) In general.--No issuer, underwriter, placement agent, 
     sponsor, or initial purchaser may offer, sell, or transfer a 
     synthetic asset-backed security that has no substantial or 
     material economic purpose apart from speculation on a 
     possible future gain or loss associated with the value or 
     condition of the referenced assets. The Commission may 
     determine whether a synthetic asset-backed security meets the 
     requirements of this section. A determination by the 
     Commission under the preceding sentence is not subject to 
     judicial review.
       ``(2) Rulemaking.--Not later than 180 days after the date 
     of enactment of this section, the Commission shall issue 
     rules to carry out this section and to prevent evasions 
     thereof.''.

       At the end of the bill, add the following:

     SEC. 1221. MORTGAGE STANDARDS.

       (a) Prohibition on Stated Income and Negatively Amortizing 
     Mortgages.--Section 129 of the Truth in Lending Act (15 
     U.S.C. 1639) is amended by adding at the end following:
       ``(n) Prohibition on Stated Income and Negatively 
     Amortizing Mortgages.--
       ``(1) In general.--Any person who sells, transfers, or 
     plans to sell or transfer at least 1,000 mortgages, mortgage-
     backed securities, or similar financial instruments within a 
     calendar year shall not include or reference in any of such 
     financial instruments any mortgage in which the borrower's 
     income was not verified or in which the loan balance may 
     negatively amortize.
       ``(2) Joint rulemaking.--The Chairman of the Board, the 
     Chairperson of the Federal Deposit Insurance Corporation, and 
     the Director of the Bureau of Consumer Financial Protection 
     may issue joint rules to carry out the purposes of this 
     subsection. Rules issued under this paragraph may--
       ``(A) specify what documentation may be used to verify the 
     income of a borrower under paragraph (1), including tax 
     information, asset statements, prior loan repayment 
     information, or any other documentation that the Chairmen and 
     the Director jointly deem necessary and appropriate; and
       ``(B) define `negatively amortize', including by making an 
     exception for home equity conversion mortgages, as defined 
     under section 255 of the National Housing Act (commonly 
     referred to as `reverse mortgages') that are otherwise 
     regulated by a Federal or State agency.
       ``(3) Rule of construction.--As used in this section, the 
     term `mortgage' shall not be construed to be restricted or 
     limited only to mortgages referred to in section 103(aa).''.
       (b) Effective Date.--The requirements under subsection 
     (n)(1) of section 129 of the Truth in Lending Act (as added 
     by subsection (a)) shall take effect not later than 180 days 
     after the date of the enactment of this Act, whether or not 
     any rulemaking under subsection (n)(2) of such Act has been 
     initiated or completed.

     SEC. 1222. GUSTAFSON FIX.

       (a) Definition of Prospectus.--Section 2(a)(10) of the 
     Securities Act of 1933 (15 U.S.C. 77b(a)(10)) is amended--
       (1) by inserting before ``except that'' the following: 
     ``(whether or not such security is offered or sold pursuant 
     to a registration statement or the security or the 
     transaction is exempt from this title or from section 5 of 
     this title pursuant to the provisions of sections 3 or 4)''; 
     and
       (2) by striking ``at the time of such'' and inserting ``at 
     the time such''.
       (b) Civil Liabilities.--Section 12(a)(2) of the Securities 
     Act of 1933 (15 U.S.C. 77l(a)(2)) is amended by inserting 
     ``(as defined in section 2(a)(10) of this title)'' after 
     ``prospectus''.

     SEC. 1223. COOLING OFF PERIOD.

       Section 207 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(m) One-year Restriction on Federal Financial 
     Regulators.--
       ``(1) In general.--In addition to the restrictions set 
     forth in subsections (a) and (b), any person who--
       ``(A) was an officer or employee (including any special 
     Government employee) of a covered Federal agency;
       ``(B) served 2 or more months during the final 12 months of 
     the employment of the person with the covered Federal agency 
     participating personally and substantially on behalf of the 
     covered Federal agency in the regulation or oversight of, or 
     in an enforcement action against, a particular financial 
     institution or holding company; and
       ``(C) within 1 year after the completion date of the 
     service or employment of the person with the covered Federal 
     agency, knowingly accepts compensation as an employee, 
     officer, director, or consultant from--
       ``(i) the financial institution described in subparagraph 
     (B), any holding company that controls the financial 
     institution, or any other company that controls the financial 
     institution; or
       ``(ii) the holding company described in subparagraph (B), 
     or any other financial institution that is controlled by such 
     holding company,
     shall be punished as provided in section 216 of this title.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) the term `covered Federal agency' means the Office of 
     the Comptroller of the Currency, the Federal Deposit 
     Insurance Corporation, the Board of Governors of the Federal 
     Reserve System, each Federal Reserve Bank, the National 
     Credit Union Administration, the Financial Stability 
     Oversight Council, the Securities and Exchange Commission, 
     the Commodities Futures Trading Commission, the Bureau of 
     Consumer Financial Protection, and the Public Company 
     Accounting Oversight Board;
       ``(B) the term `financial institution' means any business 
     or holding company that is registered with or regulated by a 
     covered Federal agency, including any foreign financial 
     institution or holding company that has a physical location 
     in any State and is registered with or regulated by a covered 
     Federal agency; and
       ``(C) the term `consultant' means a person who works 
     personally and substantially on matters for, or on behalf of, 
     a financial institution or holding company.
       ``(3) Regulations.--
       ``(A) In general.--Each covered Federal agency may 
     prescribe rules or guidance to administer and carry out this 
     section, including to define the scope of persons referred to 
     in paragraphs (1) and (2)(C), and the financial institutions 
     and holding companies referred to in paragraph (2)(B).
       ``(B) Consultation.--A covered Federal agency may consult 
     with other covered Federal agencies for the purpose of 
     ensuring that the rules and guidance issued by the agencies 
     under subparagraph (A) are, to the extent possible, 
     consistent, comparable, and practicable, taking into account 
     any differences in the regulatory and oversight programs used 
     by the covered Federal agencies for the supervision of 
     financial institutions and holding companies.
       ``(4) Waiver.--A Federal agency may grant a waiver, on a 
     case by case basis, of the restriction imposed by this 
     subsection to any officer or employee (including any special 
     Government employee) of the covered Federal agency, if the 
     head of the covered Federal agency, or the chairman of its 
     board of directors, certifies in writing that granting the 
     waiver would not impair the integrity of the regulatory and 
     oversight efforts of the covered Federal agency.
       ``(5) Penalties.--In addition to any other administrative, 
     civil, or criminal remedy or penalty that may otherwise 
     apply, whenever a Federal agency determines that a person 
     subject to paragraph (1) has become associated, in the manner 
     described in paragraph (1)(C), with a financial institution, 
     holding company, or other company in violation of this 
     section, the agency shall impose upon such person one or more 
     of the following penalties:
       ``(A) Industry-wide prohibition order.--The Federal agency 
     may, subject to notice and an administrative hearing, issue 
     an order--
       ``(i) to remove such person from office or to prohibit such 
     person from further participation in the conduct of the 
     affairs of the financial institution, holding company, or 
     other company for a period of up to 5 years; and
       ``(ii) to prohibit any further participation by such 
     person, in any manner, in the conduct of the affairs of any 
     financial institution or holding company subject to 
     regulation or oversight by the agency for a period of up to 5 
     years.
       ``(B) Civil monetary penalty.--The Federal agency may, in 
     an administrative proceeding or civil action in an 
     appropriate United States district court, impose upon such 
     person a civil monetary penalty of not more than $250,000. In 
     lieu of an action by the Federal agency under this 
     subparagraph, the Attorney General of the United States may 
     bring a civil action under this subparagraph in the 
     appropriate United States district court.''.

     SEC. 1224. FOREIGN BANK ANTI-TAX EVASION FIX.

       Section 5318A of title 31, United States Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 5318A. Special measures for jurisdictions, financial 
       institutions, or international transactions that are of 
       primary money laundering concern or impede United States 
       tax enforcement'';

       (2) in subsection (a), by striking the subsection heading 
     and inserting the following:
       ``(a) Special Measures To Counter Money Laundering and 
     Efforts To Impede United States Tax Enforcement.--'';

[[Page S3563]]

       (3) in subsection (c), by striking the subsection heading 
     and inserting the following:
       ``(c) Consultations and Information To Be Considered in 
     Finding Jurisdictions, Institutions, Types of Accounts, or 
     Transactions To Be of Primary Money Laundering Concern or To 
     Be Impeding United States Tax Enforcement.--'';
       (4) in subsection (a)(1), by inserting ``or is impeding 
     United States tax enforcement'' after ``primary money 
     laundering concern'';
       (5) in subsection (a)(4)--
       (A) in subparagraph (A)--
       (i) by inserting ``in matters involving money laundering,'' 
     before ``shall consult''; and
       (ii) by striking ``and'' at the end;
       (B) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (C) by inserting after subparagraph (A) the following:
       ``(B) in matters involving United States tax enforcement, 
     shall consult with the Commissioner of Internal Revenue, the 
     Secretary of State, the Attorney General of the United 
     States, and in the sole discretion of the Secretary, such 
     other agencies and interested parties as the Secretary may 
     find to be appropriate; and'';
       (6) in each of paragraphs (1)(A), (2), (3), and (4) of 
     subsection (b), by inserting ``or to be impeding United 
     States tax enforcement'' after ``primary money laundering 
     concern'' each place that term appears;
       (7) in subsection (b), by striking paragraph (5) and 
     inserting the following:
       ``(5) Prohibitions or conditions on opening or maintaining 
     certain correspondent or payable-through accounts or 
     authorizing certain payment cards.--If the Secretary finds a 
     jurisdiction outside of the United States, 1 or more 
     financial institutions operating outside of the United 
     States, or 1 or more classes of transactions within or 
     involving a jurisdiction outside of the United States to be 
     of primary money laundering concern or to be impeding United 
     States tax enforcement, the Secretary, in consultation with 
     the Secretary of State, the Attorney General of the United 
     States, and the Chairman of the Board of Governors of the 
     Federal Reserve System, may prohibit, or impose conditions 
     upon--
       ``(A) the opening or maintaining in the United States of a 
     correspondent account or payable-through account; or
       ``(B) the authorization, approval, or use in the United 
     States of a credit card, charge card, debit card, or similar 
     credit or debit financial instrument by any domestic 
     financial institution, financial agency, or credit card 
     company or association, for or on behalf of a foreign banking 
     institution, if such correspondent account, payable-through 
     account, credit card, charge card, debit card, or similar 
     credit or debit financial instrument, involves any such 
     jurisdiction or institution, or if any such transaction may 
     be conducted through such correspondent account, payable-
     through account, credit card, charge card, debit card, or 
     similar credit or debit financial instrument.''; and
       (8) in subsection (c)(1), by inserting ``or is impeding 
     United States tax enforcement'' after ``primary money 
     laundering concern'';
       (9) in subsection (c)(2)(A)--
       (A) in clause (ii), by striking ``bank secrecy or special 
     regulatory advantages'' and inserting ``bank, tax, corporate, 
     trust, or financial secrecy or regulatory advantages'';
       (B) in clause (iii), by striking ``supervisory and counter-
     money'' and inserting ``supervisory, international tax 
     enforcement, and counter-money'';
       (C) in clause (v), by striking ``banking or secrecy'' and 
     inserting ``banking, tax, or secrecy''; and
       (D) in clause (vi), by inserting ``, tax treaty, or tax 
     information exchange agreement'' after ``treaty'';
       (10) in subsection (c)(2)(B)--
       (A) in clause (i), by inserting ``or tax evasion'' after 
     ``money laundering''; and
       (B) in clause (iii), by inserting ``, tax evasion,'' after 
     ``money laundering''; and
       (11) in subsection (d), by inserting ``involving money 
     laundering, and shall notify, in writing, the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives of any such action involving 
     United States tax enforcement'' after ``such action''.
                                 ______
                                 
  SA 3970. Mr. LEVIN (for himself, Mr. Kaufman, Mrs. McCaskill, and Mr. 
Whitehouse) submitted an amendment intended to be proposed by him to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the amendment, insert the following:

  TITLE __--AUTHORIZING SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL 
INSTITUTIONS, INTERNATIONAL TRANSACTIONS, OR TYPES OF ACCOUNTS THAT ARE 
    OF PRIMARY MONEY LAUNDERING CONCERN OR IMPEDE UNITED STATES TAX 
                              ENFORCEMENT

     SEC. ___. AUTHORIZING SPECIAL MEASURES FOR JURISDICTIONS, 
                   FINANCIAL INSTITUTIONS, INTERNATIONAL 
                   TRANSACTIONS, OR TYPES OF ACCOUNTS THAT ARE OF 
                   PRIMARY MONEY LAUNDERING CONCERN OR IMPEDE 
                   UNITED STATES TAX ENFORCEMENT.

       Section 5318A of title 31, United States Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 5318A. Special measures for jurisdictions, financial 
       institutions, or international transactions that are of 
       primary money laundering concern or impede United States 
       tax enforcement'';

       (2) in subsection (a), by striking the subsection heading 
     and inserting the following:
       ``(a) Special Measures To Counter Money Laundering and 
     Efforts To Impede United States Tax Enforcement.--'';
       (3) in subsection (c), by striking the subsection heading 
     and inserting the following:
       ``(c) Consultations and Information To Be Considered in 
     Finding Jurisdictions, Institutions, Types of Accounts, or 
     Transactions To Be of Primary Money Laundering Concern or To 
     Be Impeding United States Tax Enforcement.--'';
       (4) in subsection (a)(1), by inserting ``or is impeding 
     United States tax enforcement'' after ``primary money 
     laundering concern'';
       (5) in subsection (a)(4)--
       (A) in subparagraph (A)--
       (i) by inserting ``in matters involving money laundering,'' 
     before ``shall consult''; and
       (ii) by striking ``and'' at the end;
       (B) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (C) by inserting after subparagraph (A) the following:
       ``(B) in matters involving United States tax enforcement, 
     shall consult with the Commissioner of the Internal Revenue, 
     the Secretary of State, the Attorney General of the United 
     States, and in the sole discretion of the Secretary, such 
     other agencies and interested parties as the Secretary may 
     find to be appropriate; and'';
       (6) in each of paragraphs (1)(A), (2), (3), and (4) of 
     subsection (b), by inserting ``or to be impeding United 
     States tax enforcement'' after ``primary money laundering 
     concern'' each place that term appears;
       (7) in subsection (b), by striking paragraph (5) and 
     inserting the following:
       ``(5) Prohibitions or conditions on opening or maintaining 
     certain correspondent or payable-through accounts or 
     authorizing certain payment cards.--If the Secretary finds a 
     jurisdiction outside of the United States, 1 or more 
     financial institutions operating outside of the United 
     States, or 1 or more classes of transactions within or 
     involving a jurisdiction outside of the United States to be 
     of primary money laundering concern or to be impeding United 
     States tax enforcement, the Secretary, in consultation with 
     the Secretary of State, the Attorney General of the United 
     States, and the Chairman of the Board of Governors of the 
     Federal Reserve System, may prohibit, or impose conditions 
     upon--
       ``(A) the opening or maintaining in the United States of a 
     correspondent account or payable-through account; or
       ``(B) the authorization, approval, or use in the United 
     States of a credit card, charge card, debit card, or similar 
     credit or debit financial instrument by any domestic 
     financial institution, financial agency, or credit card 
     company or association, for or on behalf of a foreign banking 
     institution, if such correspondent account, payable-through 
     account, credit card, charge card, debit card, or similar 
     credit or debit financial instrument, involves any such 
     jurisdiction or institution, or if any such transaction may 
     be conducted through such correspondent account, payable-
     through account, credit card, charge card, debit card, or 
     similar credit or debit financial instrument.''; and
       (8) in subsection (c)(1), by inserting ``or is impeding 
     United States tax enforcement'' after ``primary money 
     laundering concern'';
       (9) in subsection (c)(2)(A)--
       (A) in clause (ii), by striking ``bank secrecy or special 
     regulatory advantages'' and inserting ``bank, tax, corporate, 
     trust, or financial secrecy or regulatory advantages'';
       (B) in clause (iii), by striking ``supervisory and counter-
     money'' and inserting ``supervisory, international tax 
     enforcement, and counter-money'';
       (C) in clause (v), by striking ``banking or secrecy'' and 
     inserting ``banking, tax, or secrecy''; and
       (D) in clause (vi), by inserting ``, tax treaty, or tax 
     information exchange agreement'' after ``treaty'';
       (10) in subsection (c)(2)(B)--
       (A) in clause (i), by inserting ``or tax evasion'' after 
     ``money laundering''; and
       (B) in clause (iii), by inserting ``, tax evasion,'' after 
     ``money laundering''; and
       (11) in subsection (d), by inserting ``involving money 
     laundering, and shall notify, in writing, the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives of any such action involving 
     United States tax enforcement'' after ``such action''.
                                 ______
                                 
  SA 3971. Mr. LEVIN (for himself and Mr. Kaufman) submitted an 
amendment intended to be proposed by him to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to

[[Page S3564]]

protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle C of title III, add the following:

     SEC. 333. EXAMINATION AND ENFORCEMENT AUTHORITY FOR INSURANCE 
                   AND ORDERLY LIQUIDATION PURPOSES.

       (a) Examination Authority for Insurance and Orderly 
     Liquidation Purposes.--Section 10(b)(3) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended by 
     striking ``whenever the Board'' and all that follows through 
     the period at the end and inserting the following: ``or 
     depository institution holding company whenever the 
     Chairperson or the Board of Directors determines that a 
     special examination of any such depository institution or 
     depository institution holding company is necessary to 
     determine the condition of such depository institution or 
     depository institution holding company for insurance purposes 
     or for purposes of title II of the Restoring American 
     Financial Stability Act of 2010.''.
       (b) Enforcement Authority.--Section 8(t) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1818(t)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``based on an examination of an insured 
     depository institution'' and inserting ``based on an 
     examination of an insured depository institution or 
     depository institution holding company''; and
       (B) by striking ``with respect to any insured depository 
     institution or'' and inserting ``with respect to any insured 
     depository institution, depository institution holding 
     company, or'';
       (2) in paragraph (2)--
       (A) by inserting ``Chairperson or'' before ``Board of 
     Directors determines, upon a vote'';
       (B) in subparagraph (B), by striking ``or'' at the end;
       (C) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (D) by adding at the end the following:
       ``(D) the conduct or threatened conduct (including any acts 
     or omissions) of the depository institution holding company 
     poses a risk to the Deposit Insurance Fund or of the exercise 
     of authority under title II of the Restoring American 
     Financial Stability Act of 2010, or may prejudice the 
     interests of the depositors of an affiliated institution.'';
       (3) in paragraph (3)(A), by striking ``upon a vote of the 
     Board of Directors'' and inserting ``upon a determination by 
     the Chairperson or upon a vote of the Board of Directors'';
       (4) in paragraph (4)(A)--
       (A) by striking ``any insured depository institution'' and 
     inserting ``any insured depository institution, depository 
     institution holding company,''; and
       (B) by striking ``the institution'' and inserting ``the 
     institution, holding company,'';
       (5) in paragraph (4)(B), by striking ``the institution'' 
     each place that term appears and inserting ``the institution, 
     holding company,''; and
       (6) in paragraph (5)(A), by striking ``an insured 
     depository institution'' and inserting ``an insured 
     depository institution, depository institution holding 
     company,''.
       (c) Back-up Examination Authority for Orderly Liquidation 
     Purposes.--The Federal Deposit Insurance Act (12 U.S.C. 1811 
     et seq.) is amended by adding at the end the following:

     ``SEC. 51. BACK-UP EXAMINATION AUTHORITY FOR ORDERLY 
                   LIQUIDATION PURPOSES.

       ``The Corporation may conduct a special examination of a 
     nonbank financial company supervised by the Board of 
     Governors of the Federal Reserve System under section 113 of 
     the Restoring American Financial Stability Act of 2010, if 
     the Chairperson or the Board of Directors determines an 
     examination is necessary to determine the condition of the 
     company for purposes of title II of that Act.''.
       (d) Access to Information for Insurance and Orderly 
     Liquidation Purposes.--The Federal Deposit Insurance Act is 
     amended by adding at the end the following:

     ``SEC. 52. ACCESS TO INFORMATION FOR INSURANCE AND ORDERLY 
                   LIQUIDATION PURPOSES.

       ``(a) Access to Information.--The Corporation may, if the 
     Corporation determines that such action is necessary to carry 
     out its responsibilities relating to deposit insurance or 
     orderly liquidation under this Act, title II of the Restoring 
     American Financial Stability Act of 2010, or otherwise 
     applicable Federal law--
       ``(1) obtain information from an insured depository 
     institution, depository institution holding company, or 
     nonbank financial company supervised by the Board of 
     Governors of the Federal Reserve System under section 113 of 
     the Restoring American Financial Stability Act of 2010;
       ``(2) obtain information from the appropriate Federal 
     banking agency, or any regulator of a nonbank financial 
     company supervised by the Board of Governors of the Federal 
     Reserve System under section 113 of the Restoring American 
     Financial Stability Act of 2010, including examination 
     reports; and
       ``(3) participate in any examination, visitation, or risk-
     scoping activity of an insured depository institution, 
     depository institution holding company, or nonbank financial 
     company supervised by the Board of Governors of the Federal 
     Reserve System under section 113 of the Restoring American 
     Financial Stability Act of 2010.
       ``(b) Enforcement.--The Corporation shall have the 
     authority to take any enforcement action under section 8 
     against any institution or company described in paragraph (1) 
     of subsection (a) that fails to provide any information 
     requested under that paragraph.
       ``(c) Use of Available Information.--The Corporation shall 
     use, in lieu of a request for information under subsection 
     (a), information provided to another Federal or State 
     regulatory agency, publicly available information, or 
     externally audited financial statements to the extent that 
     the Corporation determines such information is adequate to 
     the needs of the Corporation.''.
                                 ______
                                 
  SA 3972. Mr. LEVIN (for himself and Mr. Kaufman) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1006, strike line 17 and all that follows through 
     page 1007, line 2, and insert the following:
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Standards and oversight.--The Commission shall set 
     standards and exercise oversight of the procedures and 
     methodologies, including qualitative and quantitative data 
     and models, used by nationally recognized statistical rating 
     organizations, to ensure that the credit ratings issued by 
     the nationally recognized statistical rating organizations 
     have a reasonable foundation in fact and analysis. Nothing in 
     this paragraph may be construed to afford a defense against 
     any action or proceeding brought by the Commission to enforce 
     the antifraud provisions of the securities laws.''; and
       On page 1019, line 14, strike ``with respect to'' and all 
     that follows through ``organization'' on line 18 and insert 
     ``to ensure that the qualitative and quantitative data and 
     models used by nationally recognized statistical rating 
     organizations produce credit ratings that have a reasonable 
     foundation in fact and analysis. The rules prescribed under 
     this subsection shall require each nationally recognized 
     statistical rating organization''.
       On page 1020, line 25, strike ``and''.
       On page 1021, line 15, strike the period at the end and 
     insert the following: ``; and
       ``(4) to assign relatively greater credit risk to a 
     financial product or transaction for which--
       ``(A) the rating organization lacks adequate historical 
     performance data;
       ``(B) the assets are provided by persons with a history of 
     providing poorly performing assets;
       ``(C) income from the assets will not be directly 
     contributed to the securitization, product, or transaction;
       ``(D) publicly available information, including trading 
     information, indicates that a prior rating misjudged the 
     credit risk of the product or transaction;
       ``(E) the product or transaction is of sufficient 
     complexity or novelty that the performance of the product or 
     transaction cannot be reliably evaluated; or
       ``(F) there is any other feature that the Commission may 
     specify.
       On page 1023, line 5, strike ``(A)'' and insert the 
     following:
       ``(A) Basic information.--Each nationally recognized 
     statistical rating organization shall disclose at the 
     beginning of the form developed under paragraph (1) basic 
     information about each of the credit ratings that is the 
     subject of the disclosure, including--
       ``(i) the latest rating provided for the product or 
     transaction that is the subject of the disclosure;
       ``(ii) the date upon which the rating described in clause 
     (i) was issued;
       ``(iii) whether that rating described in clause (i) was 
     intended to be effective for less or more than 1 year after 
     the date of issuance of the rating;
       ``(iv) the type of asset to which the rating described in 
     clause (i) applies;
       ``(v) the history and date of any prior rating with respect 
     to the product or transaction during the 5-year period 
     preceding the date of the disclosure; and
       ``(vi) any other basic information, as the Commission may 
     require.
       ``(B)
       On page 1025, line 19, strike ``(B)'' and insert ``(C)''.
       On page 1028 between lines 4 and 5 insert the following:
       ``(E) No reliance on inadequate report.--A nationally 
     recognized statistical rating organization may not rely on a 
     third-party due diligence report if the nationally recognized 
     statistical rating organization has reason to believe that 
     the report is inadequate.
       On page 1042, strike line 15 and all that follows through 
     page 1043, line 9, and insert the following:

     SEC. 939B. ELIMINATING CONFLICTS OF INTEREST THROUGH 
                   INTERMEDIATION.

       (a) Intermediation Proposal.--Not later than 180 days after 
     the date of enactment of this Act, the Commission, through 
     the Office of Credit Ratings, shall issue a notice of 
     proposed rulemaking--

[[Page S3565]]

       (1) to establish a system that--
       (A) allows an intermediary to handle the fees provided by 
     issuers to obtain credit ratings from nationally recognized 
     statistical rating organizations, in order to avoid conflicts 
     of interest that arise when an issuer pays for a credit 
     rating with respect to a financial product or transaction 
     that the issuer plans to sell or execute; and
       (B) enables such intermediary to receive fees from issuers, 
     direct fees to nationally recognized statistical rating 
     organizations, and create incentives to reward accurate 
     ratings; and
       (2) that directs or facilitates the formation of, or 
     identifies, an intermediary to carry out the system described 
     in paragraph (1).
       On page 1044, between lines 2 and 3, insert the following:

     SEC. 939D. STRENGTHENING THE ENFORCEMENT AUTHORITY OF THE 
                   COMMISSION OVER NATIONALLY RECOGNIZED 
                   STATISTICAL RATING ORGANIZATIONS.

       (a) Requirement to File Applications and Reports With 
     Commission.--Section 15E of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o-7) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(A), by striking ``furnish to'' and 
     inserting ``file with''; and
       (B) in paragraph (2), by striking ``furnished to'' each 
     place that term appears and inserting ``filed with'';
       (2) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``furnished'' and 
     inserting ``filed'';
       (B) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``furnish to'' and inserting ``file with''; 
     and
       (C) by striking ``furnishing'' each place that term appears 
     and inserting ``filing'';
       (3) in subsection (d)(1), as so redesignated by this Act--
       (A) in subparagraph (B), by striking ``furnished to'' and 
     inserting ``filed with''; and
       (B) in subparagraph (D), by striking ``furnish'' and 
     inserting ``file'';
       (4) in subsection (e)(1), by striking ``furnishing a 
     written notice of withdrawal to the Commission'' and 
     inserting ``filing a written notice of withdrawal with the 
     Commission'';
       (5) in subsection (k), by striking ``furnish to'' and 
     inserting ``file with'';
       (6) in subsection (l)(2)(A)(i), by striking ``furnished'' 
     and inserting ``filed''; and
       (7) in subsection (m)(2), by striking ``furnished'' and 
     inserting ``filed''.
       (b) Authority to Sanction Associated Persons.--Section 
     15E(d)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78o-7), as amended by this Act, is amended--
       (1) by inserting after ``or revoke the registration of any 
     nationally recognized statistical rating organization'' the 
     following: ``, or take enforcement action against or sanction 
     any person who is or was associated, or is or was seeking to 
     become associated, with a nationally recognized statistical 
     rating organization,''; and
       (2) by inserting ``bar,'' after ``placing of limitations, 
     suspension,''.
                                 ______
                                 
  SA 3973. Mr. LEVIN (for himself and Mr. Kaufman) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1047, strike lines 3 through 15 and insert the 
     following:
       ``(B) require a securitizer to retain an economic 
     interest--
       ``(i) of not less than 5 percent of the credit risk 
     associated with a pool of assets used to create a series of 
     asset-backed securities, and ensure that such economic 
     interest is applied to multiple credit tranches derived from 
     the pool of assets in a manner reasonably designed to ensure 
     that the securitizer retains an economic interest in the 
     success of each class of securities resulting from the 
     securitization of the asset pool; or
       ``(ii) of less than 5 percent of the credit risk associated 
     with a pool of assets used to create a series of asset-backed 
     securities, if and only if each of the assets in the pool 
     pose a low credit risk, the originator meets the underwriting 
     standards prescribed under paragraph (2)(B), and the 
     securitizer conducts a due diligence review reasonably 
     designed to ensure the assets and originator meet the 
     requirements of this paragraph;''.
                                 ______
                                 
  SA 3974. Mr. LEVIN (for himself, Mr. Kaufman, and Mrs. McCaskill) 
submitted an amendment intended to be proposed to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1056, line 17, strike the second period and insert 
     the following: ``.

     SEC. 946. RESTRICTION ON SYNTHETIC ASSET-BACKED SECURITIES.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by inserting after section 15G, as added by this 
     Act, the following new section:

     ``SEC. 15H. RESTRICTION ON SYNTHETIC ASSET-BACKED SECURITIES.

       ``(a) Definition.--For purposes of this section, the term 
     `synthetic asset-backed security' means an asset-backed 
     security with respect to which, by design, the self-
     liquidating financial assets referenced in the synthetic 
     securitization do not provide any direct payment or cash flow 
     to the holder of the security.
       ``(b) Restriction.--
       ``(1) In general.--No issuer, underwriter, placement agent, 
     sponsor, or initial purchaser may offer, sell, or transfer a 
     synthetic asset-backed security that has no substantial or 
     material economic purpose apart from speculation on a 
     possible future gain or loss associated with the value or 
     condition of the referenced assets. The Commission may 
     determine whether a synthetic asset-backed security meets the 
     requirements of this section. A determination by the 
     Commission under the preceding sentence is not subject to 
     judicial review.
       ``(2) Rulemaking.--Not later than 180 days after the date 
     of enactment of this section, the Commission shall issue 
     rules to carry out this section and to prevent evasions 
     thereof.''.
                                 ______
                                 
  SA 3975. Mr. LEVIN (for himself and Mr. Kaufman) submitted an 
amendment intended to be proposed by him to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. PROHIBITION ON STATED INCOME AND NEGATIVELY 
                   AMORTIZING MORTGAGES.

       (a) Findings.--Congress finds the following:
       (1) The 2008 financial crisis was caused, in part, by poor 
     quality, high risk mortgages that were included in mortgage-
     backed securities, and that incurred higher rates of 
     delinquency and loss than traditional mortgages, damaging 
     thousands of financial institutions holding the mortgages. 
     Those poor quality, high risk mortgages included billions of 
     dollars in stated income and negatively amortizing mortgages.
       (2) Banks that issue stated income mortgages do not verify 
     the borrower's income or assets, or ability to repay the 
     loan, thereby increasing the risk of loan default. Stated 
     income loans also encourage fraud by the borrowers seeking to 
     obtain the funding and by lenders seeking to earn fees from 
     selling the mortgages.
       (3) Negative amortization of mortgage loans leads to 
     increased monthly loan payments for borrowers, which, in 
     turn, increases the risk of loan default. During the recent 
     financial crisis, negatively amortized loans defaulted in 
     record numbers, damaging financial institutions and other 
     investors holding those assets.
       (4) Years ago, Federal banking regulators banned negatively 
     amortizing credit card loans as a threat to the safety and 
     soundness of banking institutions.
       (5) Federal financial regulators and Inspectors General 
     have testified before Congress that stated income and 
     negatively amortizing loans pose a threat to the safety and 
     soundness of United States banks, and to the financial 
     markets where these high risk mortgages are sold and 
     securitized.
       (b) Prohibition on Stated Income and Negatively Amortizing 
     Mortgages.--Section 129 of the Truth in Lending Act (15 
     U.S.C. 1639) is amended by adding at the end following:
       ``(n) Prohibition on Stated Income and Negatively 
     Amortizing Mortgages.--
       ``(1) In general.--Any person who sells, transfers, or 
     plans to sell or transfer at least 1,000 mortgages, mortgage-
     backed securities, or similar financial instruments within a 
     calendar year shall not include or reference in any of such 
     financial instruments any mortgage in which the borrower's 
     income was not verified or in which the loan balance may 
     negatively amortize.
       ``(2) Joint rulemaking.--The Chairman of the Board, the 
     Chairman of the Federal Deposit Insurance Corporation, and 
     the Director of the Bureau of Consumer Financial Protection 
     may issue joint rules to carry out the purposes of this 
     subsection. Rules issued under this paragraph may--
       ``(A) specify what documentation may be used to verify the 
     income of a borrower under paragraph (1), including tax 
     information, asset statements, prior loan repayment 
     information, or any other documentation that the Chairmen and 
     the Director jointly deem necessary and appropriate; and
       ``(B) define `negatively amortize', including by making an 
     exception for home equity

[[Page S3566]]

     conversion mortgages, as defined under section 255 of the 
     National Housing Act (commonly referred to as `reverse 
     mortgages') that are otherwise regulated by a Federal or 
     State agency.
       ``(3) Rule of construction.--As used in this section, the 
     term `mortgage' shall not be construed to be restricted or 
     limited only to mortgages referred to in section 103(aa).''.
       (c) Effective Date.--The requirements under subsection 
     (n)(1) of section 129 of the Truth in Lending Act (as added 
     by subsection (b)) shall take effect not later than 180 days 
     after the date of the enactment of this Act, whether or not 
     any rulemaking under subsection (n)(2) of such Act has been 
     initiated or completed.
                                 ______
                                 
  SA 3976. Mr. LEVIN (for himself, Mr. Coburn, Mr. Reid, and Mr. 
Kaufman), submitted an amendment intended to be proposed by him to the 
bill S. 3217, to promote the financial stability of the United States 
by improving accountability and transparency in the financial system, 
to end ``too big to fail'', to protect the American taxpayer by ending 
bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle I of title IX, insert the following:

     SEC. ___. RESTORATION OF CONGRESSIONAL INTENT THAT PROSPECTUS 
                   IS NOT RESTRICTED TO PUBLIC OFFERINGS.

       (a) Definition of Prospectus.--Section 2(a)(10) of the 
     Securities Act of 1933 (15 U.S.C. 77b(a)(10)) is amended--
       (1) by inserting before ``except that'' the following: 
     ``(whether or not such security is offered or sold pursuant 
     to a registration statement or the security or the 
     transaction is exempt from this title or from section 5 of 
     this title pursuant to the provisions of sections 3 or 4)''; 
     and
       (2) by striking ``at the time of such'' and inserting ``at 
     the time such''.
       (b) Civil Liabilities.--Section 12(a)(2) of the Securities 
     Act of 1933 (15 U.S.C. 77l(a)(2)) is amended by inserting 
     ``(as defined in section 2(a)(10) of this title)'' after 
     ``prospectus''.
                                 ______
                                 
  SA 3977. Mr. LEVIN (for himself, Mr. Coburn, and Mr. Kaufman) 
submitted an amendment intended to be proposed by him to the bill S. 
3217, to promote the financial stability of the United States by 
improving accountability and transparency in the financial system, to 
end ``too big to fail'', to protect the American taxpayer by ending 
bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. 1211. COOLING OFF PERIOD.

       Section 207 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(m) One-year Restriction on Federal Financial 
     Regulators.--
       ``(1) In general.--In addition to the restrictions set 
     forth in subsections (a) and (b), any person who--
       ``(A) was an officer or employee (including any special 
     Government employee) of a covered Federal agency;
       ``(B) served 2 or more months during the final 12 months of 
     the employment of the person with the covered Federal agency 
     participating personally and substantially on behalf of the 
     covered Federal agency in the regulation or oversight of, or 
     in an enforcement action against, a particular financial 
     institution or holding company; and
       ``(C) within 1 year after the completion date of the 
     service or employment of the person with the covered Federal 
     agency, knowingly accepts compensation as an employee, 
     officer, director, or consultant from--
       ``(i) the financial institution described in subparagraph 
     (B), any holding company that controls the financial 
     institution, or any other company that controls the financial 
     institution; or
       ``(ii) the holding company described in subparagraph (B), 
     or any other financial institution that is controlled by such 
     holding company,

     shall be punished as provided in section 216 of this title.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) the term `covered Federal agency' means the Office of 
     the Comptroller of the Currency, the Federal Deposit 
     Insurance Corporation, the Board of Governors of the Federal 
     Reserve System, each Federal Reserve Bank, the National 
     Credit Union Administration, the Financial Stability 
     Oversight Council, the Securities and Exchange Commission, 
     the Commodities Futures Trading Commission, the Bureau of 
     Consumer Financial Protection, and the Public Company 
     Accounting Oversight Board;
       ``(B) the term `financial institution' means any business 
     or holding company that is registered with or regulated by a 
     covered Federal agency, including any foreign financial 
     institution or holding company that has a physical location 
     in any State and is registered with or regulated by a covered 
     Federal agency; and
       ``(C) the term `consultant' means a person who works 
     personally and substantially on matters for, or on behalf of, 
     a financial institution or holding company.
       ``(3) Regulations.--
       ``(A) In general.--Each covered Federal agency may 
     prescribe rules or guidance to administer and carry out this 
     section, including to define the scope of persons referred to 
     in paragraphs (1) and (2)(C), and the financial institutions 
     and holding companies referred to in paragraph (2)(B).
       ``(B) Consultation.--A covered Federal agency may consult 
     with other covered Federal agencies for the purpose of 
     ensuring that the rules and guidance issued by the agencies 
     under subparagraph (A) are, to the extent possible, 
     consistent, comparable, and practicable, taking into account 
     any differences in the regulatory and oversight programs used 
     by the covered Federal agencies for the supervision of 
     financial institutions and holding companies.
       ``(4) Waiver.--A Federal agency may grant a waiver, on a 
     case by case basis, of the restriction imposed by this 
     subsection to any officer or employee (including any special 
     Government employee) of the covered Federal agency, if the 
     head of the covered Federal agency, or the chairman of its 
     board of directors, certifies in writing that granting the 
     waiver would not impair the integrity of the regulatory and 
     oversight efforts of the covered Federal agency.
       ``(5) Penalties.--In addition to any other administrative, 
     civil, or criminal remedy or penalty that may otherwise 
     apply, whenever a Federal agency determines that a person 
     subject to paragraph (1) has become associated, in the manner 
     described in paragraph (1)(C), with a financial institution, 
     holding company, or other company in violation of this 
     section, the agency shall impose upon such person one or more 
     of the following penalties:
       ``(A) Industry-wide prohibition order.--The Federal agency 
     may, subject to notice and an administrative hearing, issue 
     an order--
       ``(i) to remove such person from office or to prohibit such 
     person from further participation in the conduct of the 
     affairs of the financial institution, holding company, or 
     other company for a period of up to 5 years; and
       ``(ii) to prohibit any further participation by such 
     person, in any manner, in the conduct of the affairs of any 
     financial institution or holding company subject to 
     regulation or oversight by the agency for a period of up to 5 
     years.
       ``(B) Civil monetary penalty.--The Federal agency may, in 
     an administrative proceeding or civil action in an 
     appropriate United States district court, impose upon such 
     person a civil monetary penalty of not more than $250,000. In 
     lieu of an action by the Federal agency under this 
     subparagraph, the Attorney General of the United States may 
     bring a civil action under this subparagraph in the 
     appropriate United States district court.''.
                                 ______
                                 
  SA 3978. Mr. JOHNSON (for himself, Ms. Landrieu, Mr. Burris, Mr. 
Cardin, Mr. Brownback, Ms. Murkowski, Mr. Bennett, and Mr. Crapo) 
submitted an amendment intended to be proposed to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 58, line 3, insert after ``Council.'' the 
     following: ``Notwithstanding the foregoing, the Federal 
     Housing Finance Agency shall consider, but is not required to 
     adopt, any Council recommendation regarding concentration 
     limits on fully secured extensions of credit by a Federal 
     home loan bank to any member or former member institution 
     made in compliance with Federal Housing Finance Agency 
     regulations.''.
       On page 99, line 14, insert after ``risks.'' the following: 
     ``Notwithstanding any other provision of this title, the 
     Board of Governors shall not prescribe standards that limit 
     fully secured extensions of credit by a Federal home loan 
     bank to any member or former member institution made in 
     compliance with Federal Housing Finance Agency 
     regulations.''.

                          ____________________