[House Report 114-872]
[From the U.S. Government Publishing Office]


114th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       114-872

======================================================================



 
            FINANCIAL PRODUCT SAFETY COMMISSION ACT OF 2015

                                _______
                                

 December 12, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1266]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 1266) to amend the Consumer Financial Protection 
Act of 2010 to make the Bureau of Consumer Financial Protection 
an independent Financial Product Safety Commission, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Financial Product Safety Commission 
Act of 2015''.

SEC. 2. MAKING THE BUREAU AN INDEPENDENT FINANCIAL PRODUCT SAFETY 
                    COMMISSION.

  (a) In General.--The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended--
          (1) in section 1011--
                  (A) in subsection (a)--
                          (i) by striking ``in the Federal Reserve 
                        System,'';
                          (ii) by striking ``independent bureau'' and 
                        inserting ``independent commission'';
                          (iii) by striking ``Bureau of Consumer 
                        Financial Protection'' and inserting 
                        ``Financial Product Safety Commission 
                        (hereinafter in this section referred to as the 
                        `Commission')''; and
                          (iv) by striking ``Bureau'' each place such 
                        term appears and inserting ``Commission'';
                  (B) by striking subsections (b), (c), and (d);
                  (C) by redesignating subsection (e) as subsection 
                (i);
                  (D) in subsection (i), as so redesignated--
                          (i) by striking ``, including in cities in 
                        which the Federal reserve banks, or branches of 
                        such banks, are located,''; and
                          (ii) by striking ``Bureau'' each place such 
                        term appears and inserting ``Commission''; and
                  (E) by inserting after subsection (a) the following 
                new subsections:
  ``(b) Authority To Prescribe Regulations.--The Commission may 
prescribe such regulations and issue such orders in accordance with 
this title as the Commission may determine to be necessary for carrying 
out this title and all other laws within the Commission's jurisdiction 
and shall exercise any authorities granted under this title and all 
other laws within the Commission's jurisdiction.
  ``(c) Composition of the Commission.--
          ``(1) In general.--The Commission shall be composed of 5 
        members who shall be appointed by the President, by and with 
        the advice and consent of the Senate, from among individuals 
        who--
                  ``(A) are citizens of the United States; and
                  ``(B) have strong competencies and experiences 
                related to consumer financial products and services.
          ``(2) Staggering.--The members of the Commission shall serve 
        staggered terms, which initially shall be established by the 
        President for terms of 1, 2, 3, 4, and 5 years, respectively.
          ``(3) Terms.--
                  ``(A) In general.--Each member of the Commission, 
                including the Chair, shall serve for a term of 5 years.
                  ``(B) Removal.--The President may remove any member 
                of the Commission for inefficiency, neglect of duty, or 
                malfeasance in office.
                  ``(C) Vacancies.--Any member of the Commission 
                appointed to fill a vacancy occurring before the 
                expiration of the term to which that member's 
                predecessor was appointed (including the Chair) shall 
                be appointed only for the remainder of the term.
                  ``(D) Continuation of service.--Each member of the 
                Commission may continue to serve after the expiration 
                of the term of office to which that member was 
                appointed until a successor has been appointed by the 
                President and confirmed by the Senate, except that a 
                member may not continue to serve more than 1 year after 
                the date on which that member's term would otherwise 
                expire.
                  ``(E) Other employment prohibited.--No member of the 
                Commission shall engage in any other business, 
                vocation, or employment.
  ``(d) Affiliation.--Not more than 3 members of the Commission shall 
be members of any one political party.
  ``(e) Chair of the Commission.--
          ``(1) Appointment.--The Chair of the Commission shall be 
        appointed by the President from among the members of the 
        Commission.
          ``(2) Authority.--The Chair shall be the principal executive 
        officer of the Commission, and shall exercise all of the 
        executive and administrative functions of the Commission, 
        including with respect to--
                  ``(A) the appointment and supervision of personnel 
                employed under the Commission (other than personnel 
                employed regularly and full time in the immediate 
                offices of members of the Commission other than the 
                Chair);
                  ``(B) the distribution of business among personnel 
                appointed and supervised by the Chair and among 
                administrative units of the Commission; and
                  ``(C) the use and expenditure of funds.
          ``(3) Limitation.--In carrying out any of the Chair's 
        functions under the provisions of this subsection the Chair 
        shall be governed by general policies of the Commission and by 
        such regulatory decisions, findings, and determinations as the 
        Commission may by law be authorized to make.
          ``(4) Requests or estimates related to appropriations.--
        Requests or estimates for regular, supplemental, or deficiency 
        appropriations on behalf of the Commission may not be submitted 
        by the Chair without the prior approval of the Commission.
  ``(f) No Impairment by Reason of Vacancies.--No vacancy in the 
members of the Commission shall impair the right of the remaining 
members of the Commission to exercise all the powers of the Commission. 
Three members of the Commission shall constitute a quorum for the 
transaction of business, except that if there are only 3 members 
serving on the Commission because of vacancies in the Commission, 2 
members of the Commission shall constitute a quorum for the transaction 
of business. If there are only 2 members serving on the Commission 
because of vacancies in the Commission, 2 members shall constitute a 
quorum for the 6-month period beginning on the date of the vacancy 
which caused the number of Commission members to decline to 2.
  ``(g) Seal.--The Commission shall have an official seal.
  ``(h) Compensation.--
          ``(1) Chair.--The Chair shall receive compensation at the 
        rate prescribed for level I of the Executive Schedule under 
        section 5313 of title 5, United States Code.
          ``(2) Other members of the commission.--The 4 other members 
        of the Commission shall each receive compensation at the rate 
        prescribed for level II of the Executive Schedule under section 
        5314 of title 5, United States Code.'';
          (2) in section 1012(c), by striking paragraphs (2), (3), (4), 
        and (5); and
          (3) in section 1014(b), by striking ``Not fewer than 6 
        members shall be appointed upon the recommendation of the 
        regional Federal Reserve Bank Presidents, on a rotating 
        basis.''.
  (b) Commission Funding.--Section 7 of the Federal Reserve Act (12 
U.S.C. 289) is amended by adding at the end the following:
  ``(d) Transfer For Fiscal Year 2016.--
          ``(1) In general.--The Federal reserve banks shall transfer 
        from the surplus funds of such banks to the Board of Governors 
        of the Federal Reserve System for transfer to the Secretary of 
        the Treasury for deposit in the general fund of the Treasury, a 
        total amount of $75,000,000 in fiscal year 2016.
          ``(2) Allocated by fed.--Of the total amount required to be 
        paid by the Federal reserve banks under paragraph (1) for 
        fiscal year 2016, the Board of Governors of the Federal Reserve 
        System shall determine the amount each such bank shall pay in 
        such fiscal year.
          ``(3) Replenishment of surplus fund prohibited.--During 
        fiscal years 2016 through 2026, no Federal reserve bank may 
        replenish such bank's surplus fund by the amount of any 
        transfer by such bank under paragraph (1).''.

SEC. 3. DEEMING OF NAME.

  Any reference in a law, regulation, document, paper, or other record 
of the United States to the Bureau of Consumer Financial Protection 
shall be deemed a reference to the Financial Product Safety Commission.

SEC. 4. CONFORMING AMENDMENTS.

  (a) Consumer Financial Protection Act of 2010.--
          (1) In general.--Except as provided under paragraph (2), the 
        Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et 
        seq.) is amended--
                  (A) by striking ``Director of the Bureau'' each place 
                such term appears, other than where such term is used 
                to refer to a Director other than the Director of the 
                Bureau of Consumer Financial Protection, and inserting 
                ``Financial Product Safety Commission'';
                  (B) by striking ``Director'' each place such term 
                appears and inserting ``Financial Product Safety 
                Commission'', other than where such term is used to 
                refer to a Director other than the Director of the 
                Bureau of Consumer Financial Protection; and
                  (C) in section 1002, by striking paragraph (10).
          (2) Exceptions.--The Consumer Financial Protection Act of 
        2010 (12 U.S.C. 5481 et seq.) is amended--
                  (A) in section 1013(c)(3)--
                          (i) by striking ``Assistant Director of the 
                        Bureau for'' and inserting ``Head of the Office 
                        of''; and
                          (ii) in subparagraph (B), by striking 
                        ``Assistant Director'' and inserting ``Head of 
                        the Office'';
                  (B) in section 1013(g)(2)--
                          (i) by striking ``Assistant director'' and 
                        inserting ``Head of the office''; and
                          (ii) by striking ``an assistant director'' 
                        and inserting ``a Head of the Office of 
                        Financial Protection for Older Americans'';
                  (C) in section 1016(a), by striking ``Director of the 
                Bureau'' and inserting ``Chair of the Financial Product 
                Safety Commission''; and
                  (D) in section 1066(a), by striking ``Director of the 
                Bureau is'' and inserting ``first member of the 
                Commission is''.
  (b) Dodd-Frank Wall Street Reform and Consumer Protection Act.--The 
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 
5301 et seq.) is amended--
          (1) in section 111(b)(1)(D), by striking ``Director of the 
        Bureau'' and inserting ``Chair of the Financial Product Safety 
        Commission''; and
          (2) in section 1447, by striking ``Director of the Bureau'' 
        each place such term appears and inserting ``Financial Product 
        Safety Commission''.
  (c) Electronic Fund Transfer Act.--Section 920(a)(4)(C) of the 
Electronic Fund Transfer Act (15 U.S.C. 1693o-2(a)(4)(C)), as added by 
section 1075(a)(2) of the Consumer Financial Protection Act of 2010, is 
amended by striking ``Director of the Bureau of Consumer Financial 
Protection'' and inserting ``Financial Product Safety Commission''.
  (d) Expedited Funds Availability Act.--The Expedited Funds 
Availability Act (12 U.S.C. 4001 et seq.), as amended by section 1086 
of the Consumer Financial Protection Act of 2010, is amended by 
striking ``Director of the Bureau'' each place such term appears and 
inserting ``Financial Product Safety Commission''.
  (e) Federal Deposit Insurance Act.--Section 2 of the Federal Deposit 
Insurance Act (12 U.S.C. 1812), as amended by section 336(a) of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended 
by striking ``Director of the Consumer Financial Protection Bureau'' 
each place such term appears and inserting ``Chair of the Financial 
Product Safety Commission''.
  (f) Federal Financial Institutions Examination Council Act of 1978.--
Section 1004(a)(4) of the Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3303(a)(4)), as amended by section 1091 
of the Consumer Financial Protection Act of 2010, is amended by 
striking ``Director of the Consumer Financial Protection Bureau'' and 
inserting ``Chair of the Financial Product Safety Commission''.
  (g) Financial Literacy and Education Improvement Act.--Section 513 of 
the Financial Literacy and Education Improvement Act (20 U.S.C. 9702), 
as amended by section 1013(d)(5) of the Consumer Financial Protection 
Act of 2010, is amended by striking ``Director'' each place such term 
appears and inserting ``Chair of the Financial Product Safety 
Commission''.
  (h) Home Mortgage Disclosure Act of 1975.--Section 307 of the Home 
Mortgage Disclosure Act of 1975, as amended by section 1094(6) of the 
Consumer Financial Protection Act of 2010, is amended by striking 
``Director of the Bureau of Consumer Financial Protection'' each place 
such term appears and inserting ``Financial Product Safety 
Commission''.
  (i) Interstate Land Sales Full Disclosure Act.--The Interstate Land 
Sales Full Disclosure Act, as amended by section 1098A of the Consumer 
Financial Protection Act of 2010, is amended--
          (1) by amending section 1402(1) to read as follows:
          ``(1) `Chair' means the Chair of the Financial Product Safety 
        Commission;''; and
          (2) in section 1416(a), by striking ``Director of the Bureau 
        of Consumer Financial Protection'' and inserting ``Chair''.
  (j) Real Estate Settlement Procedures Act of 1974.--Section 5 of the 
Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604), as 
amended by section 1450 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, is amended--
          (1) by striking ``The Director of the Bureau of Consumer 
        Financial Protection (hereafter in this section referred to as 
        the `Director')'' and inserting ``The Financial Product Safety 
        Commission''; and
          (2) by striking ``Director'' each place such term appears and 
        inserting ``Financial Product Safety Commission''.
  (k) S.A.F.E. Mortgage Licensing Act of 2008.--The S.A.F.E. Mortgage 
Licensing Act of 2008 (12 U.S.C. 5101 et seq.), as amended by section 
1100 of the Consumer Financial Protection Act of 2010, is amended--
          (1) by striking ``Director'' each place such term appears in 
        headings and text, other than where such term is used in the 
        context of the Director of the Office of Thrift Supervision, 
        and inserting ``Financial Product Safety Commission''; and
          (2) in section 1503, by striking paragraph (10).
  (l) Title 44, United States Code.--Section 3513(c) of title 44, 
United States Code, as amended by section 1100D(b) of the Consumer 
Financial Protection Act of 2010, is amended by striking ``Director of 
the Bureau'' and inserting ``Financial Product Safety Commission''.

SEC. 5. EFFECTIVE DATE.

  This Act and the amendments made by this Act shall take effect on the 
date on which not less than 3 persons have been confirmed by the Senate 
to serve as members of the Financial Product Safety Commission.

                          Purpose and Summary

    H.R. 1266 amends the Consumer Financial Protection Act of 
2010 to remove the Consumer Financial Protection Bureau (CFPB) 
from the Federal Reserve System and re-establish it as a stand-
alone agency--the Financial Product Safety Commission (FPSC)--
that is to be governed by a five-member, bipartisan commission. 
Each member of the FPSC must have strong competencies and 
experiences regarding consumer financial products and services, 
and is nominated by the President and confirmed by the Senate 
to serve a staggered, five-year term. The bill provides that a 
Chair of the Commission serves as the principal executive 
officer of the FPSC; prohibits the Chair from making requests 
for estimates related to appropriations without prior 
Commission approval; and sets compensation for the Chair at 
level I of the Executive Schedule and compensation for other 
members at level II of the Executive Schedule. All authorities 
and powers of the agency remain unchanged.

                  Background and Need for Legislation

    Replacing the single-member leadership structure with a 
bipartisan, multimember commission will increase the quality 
and variety of information considered, while improving accuracy 
and output quality. Multimember decision-making can also temper 
extreme outlying views that might otherwise be held by a single 
person. Further, a commission comprised of commissioners 
serving staggered terms tends to avoid abrupt policy swings and 
make agency decisions more predictable for market participants. 
Unlike a multimember commission, a single director is largely 
unaccountable to the President, Congress, or even the Federal 
Reserve Board.
    In testimony before the committee on July 9, 2015, Mercatus 
Center Senior Scholar Todd Zywicki noted:

          The fundamental problems of the CFPB go back to this 
        fundamental defect in the way in which it's structured 
        which is no budgetary appropriations, a single director 
        supposedly removable only for a cause. And we've got 
        decades of academic studies on bureaucracies and how 
        bureaucracies behave when they're not subject to 
        Democratic accountability and the CFPB is basically a 
        poster child for how that operates.
          So I think over time we have learned that there are 
        two ways that we can structure agencies, as an 
        executive agency like a department accountable to the 
        president through the Democratic process, or a 
        bipartisan agency. And I think for an entity like this, 
        the Federal Trade Commission is exactly the model we 
        need. The Federal Trade Commission has been around for 
        100 years. It's a bipartisan agency, on budget and it 
        does more or less exactly the same thing as the CFPB.
          And I think that FTC has proven the test of time as 
        an agency that is responsive, that takes into account 
        the impact on the economy, questions like competition 
        and consumer choice with respect to any product. And I 
        think that is not only a good idea for this agency, but 
        really the only way that we're going to get this agency 
        back on track and really looking out for the American 
        consumers rather than their own narrow bureaucratic 
        empire-building.

    In a letter of support for H.R. 1266 dated September 29, 
2015, 23 trade associations representing financial 
institutions, banks, credit unions, and businesses wrote:

          Looking ahead, the current sole director structure at 
        the CFPB jeopardizes the foundation of the Bureau as an 
        objective, neutral consumer protection agency. A 
        commission would serve as a source of balance and 
        stability for consumers and the financial services 
        industry by encouraging internal debate and 
        deliberation, ultimately leading to increased 
        transparency. Moreover, a commission would further 
        promote the CFPB's ability to make bipartisan and 
        reasoned judgments to ensure consumers receive the 
        protection they deserve, which in turn would help 
        strengthen the economy; and would avoid the risk of 
        politically motivated decisions causing uncertainty and 
        harm to consumers.
          To preserve the CFPB and prevent it from becoming a 
        political football, Congress should return the CFPB to 
        its originally intended structure, from a sole director 
        to a bipartisan commission.

                                Hearings

    The Committee on Financial Services' Subcommittee on 
Financial Institutions held a hearing examining matters 
relating to H.R. 1266 on June 11, 2015.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
September 30, 2015 and considered the bill. Mr. Neugebauer 
offered an amendment in the nature of a substitute. Amendments 
to the amendment in the nature of a substitute offered 
respectively by Mr. Delaney and Mr. Mulvaney were withdrawn. 
The Neugebauer substitute was then adopted by voice vote. The 
Committee ordered H.R. 1266 to be reported favorably to the 
House as amended by a recorded vote of 35 yeas to 24 nays 
(recorded vote no. FC-63) a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
sole recorded vote was on a motion by Chairman Hensarling to 
report the bill favorably to the House as amended. The motion 
was agreed to by a recorded vote of 35 yeas to 24 nays (Record 
vote no. FC-63), a quorum being present.


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 1266 
will increase agency accountability by replacing the CFPB with 
the Financial Product Safety Commission, a stand-alone, five-
member, bipartisan commission.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 11, 2016.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1266, the 
Financial Product Safety Commission Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Nathaniel 
Frentz.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 1266--Financial Product Safety Commission Act of 2015

    Summary: H.R. 1266 would replace the Director of the 
Consumer Financial Protection Bureau (CFPB) with a commission 
made up of a chairman and four additional members appointed by 
the President and confirmed by the Senate. The bill would 
rename the bureau as the Financial Product Safety Commission, 
which would have the same responsibilities as the CFPB has 
under current law. H.R. 1266 also would direct the Federal 
Reserve to transfer $75 million from its surplus account to the 
Treasury.
    Based on information from the CFPB and the Federal Reserve 
System, CBO estimates that enacting H.R. 1266 would increase 
direct spending by $77 million and revenues by $47 million over 
the 2016-2026 period. Taking those effects together, CBO 
estimates that enacting H.R. 1266 would increase the deficit by 
$30 million over the 2016-2026 period. Because the bill would 
affect direct spending and revenues, pay-as-you-go procedures 
apply.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits by more than 
$5 billion in any of the four consecutive 10-year periods 
beginning in 2027.
    H.R. 1266 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1266 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2016    2017    2018    2019    2020    2021    2022    2023    2024    2025    2026   2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority................       2       7       7       7       7       8       8       8       8       8       8        38         78
Estimated Outlays.........................       *       7       7       7       7       8       8       8       8       8       8        37         77
 
                                                                   CHANGES IN REVENUES
 
Estimated Revenues........................      74      -2      -2      -3      -3      -3      -3      -3      -3      -3      -3        62         47
 
                                NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Effect on Deficit.........................     -74       9       9      10      10      11      11      11      11      11      11       -25         30
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; * = less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted in the spring and the new commissioners 
will be confirmed by the end of the fiscal year, and spending 
will follow historical patterns for the CFPB. The CFPB is 
permanently authorized to spend amounts transferred from the 
Federal Reserve System; because that activity is not subject to 
appropriation, CFPB expenditures are recorded in the budget as 
direct spending. Furthermore, the earnings of the Federal 
Reserve System are remitted to the Treasury and recorded in the 
budget as revenues; thus, any change to the costs of the 
Federal Reserve System are recorded in the budget as changes in 
revenues.

Changes in direct spending

    H.R. 1266 would replace the director and deputy director of 
the CFPB with a five-member commission. Based on information 
from the CFPB and agencies with similar organizational 
structures, CBO estimates that the commission would eventually 
hire an additional 23 employees to provide legal, research, and 
administrative support to the five commissioners and dismiss 
the agency director and deputy director. CBO estimates that 
additional costs for salaries, benefits, and overhead for the 
new positions would total about $7 million a year, on average, 
for a total cost of $77 million over the 2016-2026 period. In 
the last couple of years, the CFBP spent about $450 million a 
year to carry out all of its activities.

Changes in revenues

    H.R. 1266 would transfer $75 million in the Federal Reserve 
surplus account to the Treasury and prohibit the Federal 
Reserve from replenishing those amounts until fiscal year 2027. 
Under current law, the Federal Reserve may maintain a surplus 
fund of no more than $10 billion, and in CBO's baseline, the 
surplus fund equals $10 billion in each year. After the 
enactment of H.R. 1266, CBO estimates that the surplus fund 
would instead equal $9,925 million. Reducing the fund would 
also reduce the amount of interest-earning assets that the 
Federal Reserve holds, which would reduce its interest earnings 
and associated remittances to the Treasury by about $1 million 
in 2016 and by $28 million over the 2016-2026 period, CBO 
estimates. As a result, CBO estimates that the bill would 
increase net remittances from the Federal Reserve, and thus 
federal revenues, by about $74 million in 2016 and by $47 
million over the 2016-2026 period.
    It is important to note that the transfer of surplus funds 
from the Federal Reserve to the Treasury has no significant 
effect on the fiscal status of the federal government. Although 
federal budget accounting does not recognize additions to the 
Federal Reserve's surplus account as revenues, such additions 
have similar effects as if they had instead been paid to the 
Treasury and were counted as revenues. If the surplus funds are 
held at the Federal Reserve and invested in Treasury 
securities, then the interest generated is remitted to the 
Treasury. If the surplus funds are transferred to the Treasury 
instead, they reduce the public debt and in turn the interest 
payments owed by the Treasury. Because the Treasury's receipt 
of interest income from the Federal Reserve would be 
substantially equivalent to the Treasury's lower interest 
payments, where the surplus funds reside has no economic 
significance, and a transfer of those funds would have no 
effect on national savings, economic growth, or income.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

       CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1266, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON SEPTEMBER 30, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, in millions of dollars--
                                              ----------------------------------------------------------------------------------------------------------
                                                2016    2017   2018   2019   2020    2021    2022    2023    2024    2025    2026   2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact...............     -74      9      9     10      10      11      11      11      11      11      11       -25         30
Memorandum:
    Changes in Outlays.......................       0      7      7      7       7       8       8       8       8       8       8        37         77
    Changes in Revenues......................      74     -2     -2     -3      -3      -3      -3      -3      -3      -3      -3        62         47
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 1266 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits by more than $5 billion 
in any of the four consecutive 10-year periods beginning in 
2027.
    Estimate prepared by: Federal Costs: Kim Cawley; Federal 
Revenues: Nathaniel Frentz; Impact on State, Local, and Tribal 
Governments: Melissa Merrell and Leo Lex; Impact on the Private 
Sector: Logan Smith.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis; David Weiner, Assistant Director 
for Tax Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 1266 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee states that no provision of H.R. 1266 establishes 
or reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
the Committee states that H.R. 1266 contains no directed 
rulemaking.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This Section cites H.R. 1266 as the ``Financial Product 
Safety Commission Act of 2015''.

Section 2. Making the bureau an independent Financial Product Safety 
        Commission

    This section amends the Consumer Financial Protection Act 
of 2010 by removing the CFPB from under the Federal Reserve and 
creating the Financial Product Safety Commission, a bipartisan 
commission consisting of five-members well versed in consumer 
finance, serving five-year staggered terms with a Chair 
appointed by the President. All members of the commission will 
receive compensation under the Executive Schedule, with the 
Chair at level I and the other members of the commission at 
level II.

Section 3. Deeming of name

    This section establishes that any pre-existing reference 
relating to the CFPB is now a reference to the Financial 
Product Safety Commission.

Section 4. Conforming amendments

    This section amends pre-existing laws so that they conform 
to the new terms and titles set forth in this law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT

           *       *       *       *       *       *       *


TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *


           Subtitle A--Financial Stability Oversight Council

SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.

  (a) Establishment.--Effective on the date of enactment of 
this Act, there is established the Financial Stability 
Oversight Council.
  (b) Membership.--The Council shall consist of the following 
members:
          (1) Voting members.--The voting members, who shall 
        each have 1 vote on the Council shall be--
                  (A) the Secretary of the Treasury, who shall 
                serve as Chairperson of the Council;
                  (B) the Chairman of the Board of Governors;
                  (C) the Comptroller of the Currency;
                  (D) the [Director of the Bureau] Chair of the 
                Financial Product Safety Commission;
                  (E) the Chairman of the Commission;
                  (F) the Chairperson of the Corporation;
                  (G) the Chairperson of the Commodity Futures 
                Trading Commission;
                  (H) the Director of the Federal Housing 
                Finance Agency;
                  (I) the Chairman of the National Credit Union 
                Administration Board; and
                  (J) an independent member appointed by the 
                President, by and with the advice and consent 
                of the Senate, having insurance expertise.
          (2) Nonvoting members.--The nonvoting members, who 
        shall serve in an advisory capacity as a nonvoting 
        member of the Council, shall be--
                  (A) the Director of the Office of Financial 
                Research;
                  (B) the Director of the Federal Insurance 
                Office;
                  (C) a State insurance commissioner, to be 
                designated by a selection process determined by 
                the State insurance commissioners;
                  (D) a State banking supervisor, to be 
                designated by a selection process determined by 
                the State banking supervisors; and
                  (E) a State securities commissioner (or an 
                officer performing like functions), to be 
                designated by a selection process determined by 
                such State securities commissioners.
          (3) Nonvoting member participation.--The nonvoting 
        members of the Council shall not be excluded from any 
        of the proceedings, meetings, discussions, or 
        deliberations of the Council, except that the 
        Chairperson may, upon an affirmative vote of the member 
        agencies, exclude the nonvoting members from any of the 
        proceedings, meetings, discussions, or deliberations of 
        the Council when necessary to safeguard and promote the 
        free exchange of confidential supervisory information.
  (c) Terms; Vacancy.--
          (1) Terms.--The independent member of the Council 
        shall serve for a term of 6 years, and each nonvoting 
        member described in subparagraphs (C), (D), and (E) of 
        subsection (b)(2) shall serve for a term of 2 years.
          (2) Vacancy.--Any vacancy on the Council shall be 
        filled in the manner in which the original appointment 
        was made.
          (3) Acting officials may serve.--In the event of a 
        vacancy in the office of the head of a member agency or 
        department, and pending the appointment of a successor, 
        or during the absence or disability of the head of a 
        member agency or department, the acting head of the 
        member agency or department shall serve as a member of 
        the Council in the place of that agency or department 
        head.
  (d) Technical and Professional Advisory Committees.--The 
Council may appoint such special advisory, technical, or 
professional committees as may be useful in carrying out the 
functions of the Council, including an advisory committee 
consisting of State regulators, and the members of such 
committees may be members of the Council, or other persons, or 
both.
  (e) Meetings.--
          (1) Timing.--The Council shall meet at the call of 
        the Chairperson or a majority of the members then 
        serving, but not less frequently than quarterly.
          (2) Rules for conducting business.--The Council shall 
        adopt such rules as may be necessary for the conduct of 
        the business of the Council. Such rules shall be rules 
        of agency organization, procedure, or practice for 
        purposes of section 553 of title 5, United States Code.
  (f) Voting.--Unless otherwise specified, the Council shall 
make all decisions that it is authorized or required to make by 
a majority vote of the voting members then serving.
  (g) Nonapplicability of FACA.--The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Council, or to any 
special advisory, technical, or professional committee 
appointed by the Council, except that, if an advisory, 
technical, or professional committee has one or more members 
who are not employees of or affiliated with the United States 
Government, the Council shall publish a list of the names of 
the members of such committee.
  (h) Assistance From Federal Agencies.--Any department or 
agency of the United States may provide to the Council and any 
special advisory, technical, or professional committee 
appointed by the Council, such services, funds, facilities, 
staff, and other support services as the Council may determine 
advisable.
  (i) Compensation of Members.--
          (1) Federal employee members.--All members of the 
        Council who are officers or employees of the United 
        States shall serve without compensation in addition to 
        that received for their services as officers or 
        employees of the United States.
          (2) Compensation for non-federal member.--Section 
        5314 of title 5, United States Code, is amended by 
        adding at the end the following:``Independent Member of 
        the Financial Stability Oversight Council (1).''.
  (j) Detail of Government Employees.--Any employee of the 
Federal Government may be detailed to the Council without 
reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. An employee of the 
Federal Government detailed to the Council shall report to and 
be subject to oversight by the Council during the assignment to 
the Council, and shall be compensated by the department or 
agency from which the employee was detailed.

           *       *       *       *       *       *       *


            TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

SEC. 1001. SHORT TITLE.

  This title may be cited as the ``Consumer Financial 
Protection Act of 2010''.

SEC. 1002. DEFINITIONS.

  Except as otherwise provided in this title, for purposes of 
this title, the following definitions shall apply:
          (1) Affiliate.--The term ``affiliate'' means any 
        person that controls, is controlled by, or is under 
        common control with another person.
          (2) Bureau.--The term ``Bureau'' means the Bureau of 
        Consumer Financial Protection.
          (3) Business of insurance.--The term ``business of 
        insurance'' means the writing of insurance or the 
        reinsuring of risks by an insurer, including all acts 
        necessary to such writing or reinsuring and the 
        activities relating to the writing of insurance or the 
        reinsuring of risks conducted by persons who act as, or 
        are, officers, directors, agents, or employees of 
        insurers or who are other persons authorized to act on 
        behalf of such persons.
          (4) Consumer.--The term ``consumer'' means an 
        individual or an agent, trustee, or representative 
        acting on behalf of an individual.
          (5) Consumer financial product or service.--The term 
        ``consumer financial product or service'' means any 
        financial product or service that is described in one 
        or more categories under--
                  (A) paragraph (15) and is offered or provided 
                for use by consumers primarily for personal, 
                family, or household purposes; or
                  (B) clause (i), (iii), (ix), or (x) of 
                paragraph (15)(A), and is delivered, offered, 
                or provided in connection with a consumer 
                financial product or service referred to in 
                subparagraph (A).
          (6) Covered person.--The term ``covered person'' 
        means--
                  (A) any person that engages in offering or 
                providing a consumer financial product or 
                service; and
                  (B) any affiliate of a person described in 
                subparagraph (A) if such affiliate acts as a 
                service provider to such person.
          (7) Credit.--The term ``credit'' means the right 
        granted by a person to a consumer to defer payment of a 
        debt, incur debt and defer its payment, or purchase 
        property or services and defer payment for such 
        purchase.
          (8) Deposit-taking activity.--The term ``deposit-
        taking activity'' means--
                  (A) the acceptance of deposits, maintenance 
                of deposit accounts, or the provision of 
                services related to the acceptance of deposits 
                or the maintenance of deposit accounts;
                  (B) the acceptance of funds, the provision of 
                other services related to the acceptance of 
                funds, or the maintenance of member share 
                accounts by a credit union; or
                  (C) the receipt of funds or the equivalent 
                thereof, as the Bureau may determine by rule or 
                order, received or held by a covered person (or 
                an agent for a covered person) for the purpose 
                of facilitating a payment or transferring funds 
                or value of funds between a consumer and a 
                third party.
          (9) Designated transfer date.--The term ``designated 
        transfer date'' means the date established under 
        section 1062.
          [(10) Director.--The term ``Director'' means the 
        Director of the Bureau.]
          (11) Electronic conduit services.--The term 
        ``electronic conduit services''--
                  (A) means the provision, by a person, of 
                electronic data transmission, routing, 
                intermediate or transient storage, or 
                connections to a telecommunications system or 
                network; and
                  (B) does not include a person that provides 
                electronic conduit services if, when providing 
                such services, the person--
                          (i) selects or modifies the content 
                        of the electronic data;
                          (ii) transmits, routes, stores, or 
                        provides connections for electronic 
                        data, including financial data, in a 
                        manner that such financial data is 
                        differentiated from other types of data 
                        of the same form that such person 
                        transmits, routes, or stores, or with 
                        respect to which, provides connections; 
                        or
                          (iii) is a payee, payor, 
                        correspondent, or similar party to a 
                        payment transaction with a consumer.
          (12) Enumerated consumer laws.--Except as otherwise 
        specifically provided in section 1029, subtitle G or 
        subtitle H, the term ``enumerated consumer laws'' 
        means--
                  (A) the Alternative Mortgage Transaction 
                Parity Act of 1982 (12 U.S.C. 3801 et seq.);
                  (B) the Consumer Leasing Act of 1976 (15 
                U.S.C. 1667 et seq.);
                  (C) the Electronic Fund Transfer Act (15 
                U.S.C. 1693 et seq.), except with respect to 
                section 920 of that Act;
                  (D) the Equal Credit Opportunity Act (15 
                U.S.C. 1691 et seq.);
                  (E) the Fair Credit Billing Act (15 U.S.C. 
                1666 et seq.);
                  (F) the Fair Credit Reporting Act (15 U.S.C. 
                1681 et seq.), except with respect to sections 
                615(e) and 628 of that Act (15 U.S.C. 1681m(e), 
                1681w);
                  (G) the Home Owners Protection Act of 1998 
                (12 U.S.C. 4901 et seq.);
                  (H) the Fair Debt Collection Practices Act 
                (15 U.S.C. 1692 et seq.);
                  (I) subsections (b) through (f) of section 43 
                of the Federal Deposit Insurance Act (12 U.S.C. 
                1831t(c)-(f));
                  (J) sections 502 through 509 of the Gramm-
                Leach-Bliley Act (15 U.S.C. 6802-6809) except 
                for section 505 as it applies to section 
                501(b);
                  (K) the Home Mortgage Disclosure Act of 1975 
                (12 U.S.C. 2801 et seq.);
                  (L) the Home Ownership and Equity Protection 
                Act of 1994 (15 U.S.C. 1601 note);
                  (M) the Real Estate Settlement Procedures Act 
                of 1974 (12 U.S.C. 2601 et seq.);
                  (N) the S.A.F.E. Mortgage Licensing Act of 
                2008 (12 U.S.C. 5101 et seq.);
                  (O) the Truth in Lending Act (15 U.S.C. 1601 
                et seq.);
                  (P) the Truth in Savings Act (12 U.S.C. 4301 
                et seq.);
                  (Q) section 626 of the Omnibus Appropriations 
                Act, 2009 (Public Law 111-8); and
                  (R) the Interstate Land Sales Full Disclosure 
                Act (15 U.S.C. 1701).
          (13) Fair lending.--The term ``fair lending'' means 
        fair, equitable, and nondiscriminatory access to credit 
        for consumers.
          (14) Federal consumer financial law.--The term 
        ``Federal consumer financial law'' means the provisions 
        of this title, the enumerated consumer laws, the laws 
        for which authorities are transferred under subtitles F 
        and H, and any rule or order prescribed by the Bureau 
        under this title, an enumerated consumer law, or 
        pursuant to the authorities transferred under subtitles 
        F and H. The term does not include the Federal Trade 
        Commission Act.
          (15) Financial product or service.--
                  (A) In general.--The term ``financial product 
                or service'' means--
                          (i) extending credit and servicing 
                        loans, including acquiring, purchasing, 
                        selling, brokering, or other extensions 
                        of credit (other than solely extending 
                        commercial credit to a person who 
                        originates consumer credit 
                        transactions);
                          (ii) extending or brokering leases of 
                        personal or real property that are the 
                        functional equivalent of purchase 
                        finance arrangements, if--
                                  (I) the lease is on a non-
                                operating basis;
                                  (II) the initial term of the 
                                lease is at least 90 days; and
                                  (III) in the case of a lease 
                                involving real property, at the 
                                inception of the initial lease, 
                                the transaction is intended to 
                                result in ownership of the 
                                leased property to be 
                                transferred to the lessee, 
                                subject to standards prescribed 
                                by the Bureau;
                          (iii) providing real estate 
                        settlement services, except such 
                        services excluded under subparagraph 
                        (C), or performing appraisals of real 
                        estate or personal property;
                          (iv) engaging in deposit-taking 
                        activities, transmitting or exchanging 
                        funds, or otherwise acting as a 
                        custodian of funds or any financial 
                        instrument for use by or on behalf of a 
                        consumer;
                          (v) selling, providing, or issuing 
                        stored value or payment instruments, 
                        except that, in the case of a sale of, 
                        or transaction to reload, stored value, 
                        only if the seller exercises 
                        substantial control over the terms or 
                        conditions of the stored value provided 
                        to the consumer where, for purposes of 
                        this clause--
                                  (I) a seller shall not be 
                                found to exercise substantial 
                                control over the terms or 
                                conditions of the stored value 
                                if the seller is not a party to 
                                the contract with the consumer 
                                for the stored value product, 
                                and another person is 
                                principally responsible for 
                                establishing the terms or 
                                conditions of the stored value; 
                                and
                                  (II) advertising the 
                                nonfinancial goods or services 
                                of the seller on the stored 
                                value card or device is not in 
                                itself an exercise of 
                                substantial control over the 
                                terms or conditions;
                          (vi) providing check cashing, check 
                        collection, or check guaranty services;
                          (vii) providing payments or other 
                        financial data processing products or 
                        services to a consumer by any 
                        technological means, including 
                        processing or storing financial or 
                        banking data for any payment 
                        instrument, or through any payments 
                        systems or network used for processing 
                        payments data, including payments made 
                        through an online banking system or 
                        mobile telecommunications network, 
                        except that a person shall not be 
                        deemed to be a covered person with 
                        respect to financial data processing 
                        solely because the person--
                                  (I) is a merchant, retailer, 
                                or seller of any nonfinancial 
                                good or service who engages in 
                                financial data processing by 
                                transmitting or storing 
                                payments data about a consumer 
                                exclusively for purpose of 
                                initiating payments 
                                instructions by the consumer to 
                                pay such person for the 
                                purchase of, or to complete a 
                                commercial transaction for, 
                                such nonfinancial good or 
                                service sold directly by such 
                                person to the consumer; or
                                  (II) provides access to a 
                                host server to a person for 
                                purposes of enabling that 
                                person to establish and 
                                maintain a website;
                          (viii) providing financial advisory 
                        services (other than services relating 
                        to securities provided by a person 
                        regulated by the Commission or a person 
                        regulated by a State securities 
                        Commission, but only to the extent that 
                        such person acts in a regulated 
                        capacity) to consumers on individual 
                        financial matters or relating to 
                        proprietary financial products or 
                        services (other than by publishing any 
                        bona fide newspaper, news magazine, or 
                        business or financial publication of 
                        general and regular circulation, 
                        including publishing market data, news, 
                        or data analytics or investment 
                        information or recommendations that are 
                        not tailored to the individual needs of 
                        a particular consumer), including--
                                  (I) providing credit 
                                counseling to any consumer; and
                                  (II) providing services to 
                                assist a consumer with debt 
                                management or debt settlement, 
                                modifying the terms of any 
                                extension of credit, or 
                                avoiding foreclosure;
                          (ix) collecting, analyzing, 
                        maintaining, or providing consumer 
                        report information or other account 
                        information, including information 
                        relating to the credit history of 
                        consumers, used or expected to be used 
                        in connection with any decision 
                        regarding the offering or provision of 
                        a consumer financial product or 
                        service, except to the extent that--
                                  (I) a person--
                                          (aa) collects, 
                                        analyzes, or maintains 
                                        information that 
                                        relates solely to the 
                                        transactions between a 
                                        consumer and such 
                                        person;
                                          (bb) provides the 
                                        information described 
                                        in item (aa) to an 
                                        affiliate of such 
                                        person; or
                                          (cc) provides 
                                        information that is 
                                        used or expected to be 
                                        used solely in any 
                                        decision regarding the 
                                        offering or provision 
                                        of a product or service 
                                        that is not a consumer 
                                        financial product or 
                                        service, including a 
                                        decision for 
                                        employment, government 
                                        licensing, or a 
                                        residential lease or 
                                        tenancy involving a 
                                        consumer; and
                                  (II) the information 
                                described in subclause (I)(aa) 
                                is not used by such person or 
                                affiliate in connection with 
                                any decision regarding the 
                                offering or provision of a 
                                consumer financial product or 
                                service to the consumer, other 
                                than credit described in 
                                section 1027(a)(2)(A);
                          (x) collecting debt related to any 
                        consumer financial product or service; 
                        and
                          (xi) such other financial product or 
                        service as may be defined by the 
                        Bureau, by regulation, for purposes of 
                        this title, if the Bureau finds that 
                        such financial product or service is--
                                  (I) entered into or conducted 
                                as a subterfuge or with a 
                                purpose to evade any Federal 
                                consumer financial law; or
                                  (II) permissible for a bank 
                                or for a financial holding 
                                company to offer or to provide 
                                under any provision of a 
                                Federal law or regulation 
                                applicable to a bank or a 
                                financial holding company, and 
                                has, or likely will have, a 
                                material impact on consumers.
                  (B) Rule of construction.--
                          (i) In general.--For purposes of 
                        subparagraph (A)(xi)(II), and subject 
                        to clause (ii) of this subparagraph, 
                        the following activities provided to a 
                        covered person shall not, for purposes 
                        of this title, be considered incidental 
                        or complementary to a financial 
                        activity permissible for a financial 
                        holding company to engage in under any 
                        provision of a Federal law or 
                        regulation applicable to a financial 
                        holding company:
                                  (I) Providing information 
                                products or services to a 
                                covered person for identity 
                                authentication.
                                  (II) Providing information 
                                products or services for fraud 
                                or identify theft detection, 
                                prevention, or investigation.
                                  (III) Providing document 
                                retrieval or delivery services.
                                  (IV) Providing public records 
                                information retrieval.
                                  (V) Providing information 
                                products or services for anti-
                                money laundering activities.
                          (ii) Limitation.--Nothing in clause 
                        (i) may be construed as modifying or 
                        limiting the authority of the Bureau to 
                        exercise any--
                                  (I) examination or 
                                enforcement powers authority 
                                under this title with respect 
                                to a covered person or service 
                                provider engaging in an 
                                activity described in 
                                subparagraph (A)(ix); or
                                  (II) powers authorized by 
                                this title to prescribe rules, 
                                issue orders, or take other 
                                actions under any enumerated 
                                consumer law or law for which 
                                the authorities are transferred 
                                under subtitle F or H.
                  (C) Exclusions.--The term ``financial product 
                or service'' does not include--
                          (i) the business of insurance; or
                          (ii) electronic conduit services.
          (16) Foreign exchange.--The term ``foreign exchange'' 
        means the exchange, for compensation, of currency of 
        the United States or of a foreign government for 
        currency of another government.
          (17) Insured credit union.--The term ``insured credit 
        union'' has the same meaning as in section 101 of the 
        Federal Credit Union Act (12 U.S.C. 1752).
          (18) Payment instrument.--The term ``payment 
        instrument'' means a check, draft, warrant, money 
        order, traveler's check, electronic instrument, or 
        other instrument, payment of funds, or monetary value 
        (other than currency).
          (19) Person.--The term ``person'' means an 
        individual, partnership, company, corporation, 
        association (incorporated or unincorporated), trust, 
        estate, cooperative organization, or other entity.
          (20) Person regulated by the commodity futures 
        trading commission.--The term ``person regulated by the 
        Commodity Futures Trading Commission'' means any person 
        that is registered, or required by statute or 
        regulation to be registered, with the Commodity Futures 
        Trading Commission, but only to the extent that the 
        activities of such person are subject to the 
        jurisdiction of the Commodity Futures Trading 
        Commission under the Commodity Exchange Act.
          (21) Person regulated by the commission.--The term 
        ``person regulated by the Commission'' means a person 
        who is--
                  (A) a broker or dealer that is required to be 
                registered under the Securities Exchange Act of 
                1934;
                  (B) an investment adviser that is registered 
                under the Investment Advisers Act of 1940;
                  (C) an investment company that is required to 
                be registered under the Investment Company Act 
                of 1940, and any company that has elected to be 
                regulated as a business development company 
                under that Act;
                  (D) a national securities exchange that is 
                required to be registered under the Securities 
                Exchange Act of 1934;
                  (E) a transfer agent that is required to be 
                registered under the Securities Exchange Act of 
                1934;
                  (F) a clearing corporation that is required 
                to be registered under the Securities Exchange 
                Act of 1934;
                  (G) any self-regulatory organization that is 
                required to be registered with the Commission;
                  (H) any nationally recognized statistical 
                rating organization that is required to be 
                registered with the Commission;
                  (I) any securities information processor that 
                is required to be registered with the 
                Commission;
                  (J) any municipal securities dealer that is 
                required to be registered with the Commission;
                  (K) any other person that is required to be 
                registered with the Commission under the 
                Securities Exchange Act of 1934; and
                  (L) any employee, agent, or contractor acting 
                on behalf of, registered with, or providing 
                services to, any person described in any of 
                subparagraphs (A) through (K), but only to the 
                extent that any person described in any of 
                subparagraphs (A) through (K), or the employee, 
                agent, or contractor of such person, acts in a 
                regulated capacity.
          (22) Person regulated by a state insurance 
        regulator.--The term ``person regulated by a State 
        insurance regulator'' means any person that is engaged 
        in the business of insurance and subject to regulation 
        by any State insurance regulator, but only to the 
        extent that such person acts in such capacity.
          (23) Person that performs income tax preparation 
        activities for consumers.--The term ``person that 
        performs income tax preparation activities for 
        consumers'' means--
                  (A) any tax return preparer (as defined in 
                section 7701(a)(36) of the Internal Revenue 
                Code of 1986), regardless of whether 
                compensated, but only to the extent that the 
                person acts in such capacity;
                  (B) any person regulated by the Secretary 
                under section 330 of title 31, United States 
                Code, but only to the extent that the person 
                acts in such capacity; and
                  (C) any authorized IRS e-file Providers (as 
                defined for purposes of section 7216 of the 
                Internal Revenue Code of 1986), but only to the 
                extent that the person acts in such capacity.
          (24) Prudential regulator.--The term ``prudential 
        regulator'' means--
                  (A) in the case of an insured depository 
                institution or depository institution holding 
                company (as defined in section 3 of the Federal 
                Deposit Insurance Act), or subsidiary of such 
                institution or company, the appropriate Federal 
                banking agency, as that term is defined in 
                section 3 of the Federal Deposit Insurance Act; 
                and
                  (B) in the case of an insured credit union, 
                the National Credit Union Administration.
          (25) Related person.--The term ``related person''--
                  (A) shall apply only with respect to a 
                covered person that is not a bank holding 
                company (as that term is defined in section 2 
                of the Bank Holding Company Act of 1956), 
                credit union, or depository institution;
                  (B) shall be deemed to mean a covered person 
                for all purposes of any provision of Federal 
                consumer financial law; and
                  (C) means--
                          (i) any director, officer, or 
                        employee charged with managerial 
                        responsibility for, or controlling 
                        shareholder of, or agent for, such 
                        covered person;
                          (ii) any shareholder, consultant, 
                        joint venture partner, or other person, 
                        as determined by the Bureau (by rule or 
                        on a case-by-case basis) who materially 
                        participates in the conduct of the 
                        affairs of such covered person; and
                          (iii) any independent contractor 
                        (including any attorney, appraiser, or 
                        accountant) who knowingly or recklessly 
                        participates in any--
                                  (I) violation of any 
                                provision of law or regulation; 
                                or
                                  (II) breach of a fiduciary 
                                duty.
          (26) Service provider.--
                  (A) In general.--The term ``service 
                provider'' means any person that provides a 
                material service to a covered person in 
                connection with the offering or provision by 
                such covered person of a consumer financial 
                product or service, including a person that--
                          (i) participates in designing, 
                        operating, or maintaining the consumer 
                        financial product or service; or
                          (ii) processes transactions relating 
                        to the consumer financial product or 
                        service (other than unknowingly or 
                        incidentally transmitting or processing 
                        financial data in a manner that such 
                        data is undifferentiated from other 
                        types of data of the same form as the 
                        person transmits or processes).
                  (B) Exceptions.--The term ``service 
                provider'' does not include a person solely by 
                virtue of such person offering or providing to 
                a covered person--
                          (i) a support service of a type 
                        provided to businesses generally or a 
                        similar ministerial service; or
                          (ii) time or space for an 
                        advertisement for a consumer financial 
                        product or service through print, 
                        newspaper, or electronic media.
                  (C) Rule of construction.--A person that is a 
                service provider shall be deemed to be a 
                covered person to the extent that such person 
                engages in the offering or provision of its own 
                consumer financial product or service.
          (27) State.--The term ``State'' means any State, 
        territory, or possession of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        the Commonwealth of the Northern Mariana Islands, Guam, 
        American Samoa, or the United States Virgin Islands or 
        any federally recognized Indian tribe, as defined by 
        the Secretary of the Interior under section 104(a) of 
        the Federally Recognized Indian Tribe List Act of 1994 
        (25 U.S.C. 479a-1(a)).
          (28) Stored value.--
                  (A) In general.--The term ``stored value'' 
                means funds or monetary value represented in 
                any electronic format, whether or not specially 
                encrypted, and stored or capable of storage on 
                electronic media in such a way as to be 
                retrievable and transferred electronically, and 
                includes a prepaid debit card or product, or 
                any other similar product, regardless of 
                whether the amount of the funds or monetary 
                value may be increased or reloaded.
                  (B) Exclusion.--Notwithstanding subparagraph 
                (A), the term ``stored value'' does not include 
                a special purpose card or certificate, which 
                shall be defined for purposes of this paragraph 
                as funds or monetary value represented in any 
                electronic format, whether or not specially 
                encrypted, that is--
                          (i) issued by a merchant, retailer, 
                        or other seller of nonfinancial goods 
                        or services;
                          (ii) redeemable only for transactions 
                        with the merchant, retailer, or seller 
                        of nonfinancial goods or services or 
                        with an affiliate of such person, which 
                        affiliate itself is a merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services;
                          (iii) issued in a specified amount 
                        that, except in the case of a card or 
                        product used solely for telephone 
                        services, may not be increased or 
                        reloaded;
                          (iv) purchased on a prepaid basis in 
                        exchange for payment; and
                          (v) honored upon presentation to such 
                        merchant, retailer, or seller of 
                        nonfinancial goods or services or an 
                        affiliate of such person, which 
                        affiliate itself is a merchant, 
                        retailer, or seller of nonfinancial 
                        goods or services, only for any 
                        nonfinancial goods or services.
          (29) Transmitting or exchanging funds.--The term 
        ``transmitting or exchanging funds'' means receiving 
        currency, monetary value, or payment instruments from a 
        consumer for the purpose of exchanging or transmitting 
        the same by any means, including transmission by wire, 
        facsimile, electronic transfer, courier, the Internet, 
        or through bill payment services or through other 
        businesses that facilitate third-party transfers within 
        the United States or to or from the United States.

           *       *       *       *       *       *       *


          Subtitle A--Bureau of Consumer Financial Protection

SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINANCIAL 
                    PROTECTION.

  (a) Bureau Established.--There is established [in the Federal 
Reserve System,] an [independent bureau] independent commission 
to be known as the ``[Bureau of Consumer Financial Protection] 
Financial Product Safety Commission (hereinafter in this 
section referred to as the ``Commission'')'', which shall 
regulate the offering and provision of consumer financial 
products or services under the Federal consumer financial laws. 
The [Bureau] Commission shall be considered an Executive 
agency, as defined in section 105 of title 5, United States 
Code. Except as otherwise provided expressly by law, all 
Federal laws dealing with public or Federal contracts, 
property, works, officers, employees, budgets, or funds, 
including the provisions of chapters 5 and 7 of title 5, shall 
apply to the exercise of the powers of the [Bureau] Commission.
  [(b) Director and Deputy Director.--
          [(1) In general.--There is established the position 
        of the Director, who shall serve as the head of the 
        Bureau.
          [(2) Appointment.--Subject to paragraph (3), the 
        Director shall be appointed by the President, by and 
        with the advice and consent of the Senate.
          [(3) Qualification.--The President shall nominate the 
        Director from among individuals who are citizens of the 
        United States.
          [(4) Compensation.--The Director shall be compensated 
        at the rate prescribed for level II of the Executive 
        Schedule under section 5313 of title 5, United States 
        Code.
          [(5) Deputy director.--There is established the 
        position of Deputy Director, who shall--
                  [(A) be appointed by the Director; and
                  [(B) serve as acting Director in the absence 
                or unavailability of the Director.
  [(c) Term.--
          [(1) In general.--The Director shall serve for a term 
        of 5 years.
          [(2) Expiration of term.--An individual may serve as 
        Director after the expiration of the term for which 
        appointed, until a successor has been appointed and 
        qualified.
          [(3) Removal for cause.--The President may remove the 
        Director for inefficiency, neglect of duty, or 
        malfeasance in office.
  [(d) Service Restriction.--No Director or Deputy Director may 
hold any office, position, or employment in any Federal reserve 
bank, Federal home loan bank, covered person, or service 
provider during the period of service of such person as 
Director or Deputy Director.]
  (b) Authority to Prescribe Regulations.--The Commission may 
prescribe such regulations and issue such orders in accordance 
with this title as the Commission may determine to be necessary 
for carrying out this title and all other laws within the 
Commission's jurisdiction and shall exercise any authorities 
granted under this title and all other laws within the 
Commission's jurisdiction.
  (c) Composition of the Commission.--
          (1) In general.--The Commission shall be composed of 
        5 members who shall be appointed by the President, by 
        and with the advice and consent of the Senate, from 
        among individuals who--
                  (A) are citizens of the United States; and
                  (B) have strong competencies and experiences 
                related to consumer financial products and 
                services.
          (2) Staggering.--The members of the Commission shall 
        serve staggered terms, which initially shall be 
        established by the President for terms of 1, 2, 3, 4, 
        and 5 years, respectively.
          (3) Terms.--
                  (A) In general.--Each member of the 
                Commission, including the Chair, shall serve 
                for a term of 5 years.
                  (B) Removal.--The President may remove any 
                member of the Commission for inefficiency, 
                neglect of duty, or malfeasance in office.
                  (C) Vacancies.--Any member of the Commission 
                appointed to fill a vacancy occurring before 
                the expiration of the term to which that 
                member's predecessor was appointed (including 
                the Chair) shall be appointed only for the 
                remainder of the term.
                  (D) Continuation of service.--Each member of 
                the Commission may continue to serve after the 
                expiration of the term of office to which that 
                member was appointed until a successor has been 
                appointed by the President and confirmed by the 
                Senate, except that a member may not continue 
                to serve more than 1 year after the date on 
                which that member's term would otherwise 
                expire.
                  (E) Other employment prohibited.--No member 
                of the Commission shall engage in any other 
                business, vocation, or employment.
  (d) Affiliation.--Not more than 3 members of the Commission 
shall be members of any one political party.
  (e) Chair of the Commission.--
          (1) Appointment.--The Chair of the Commission shall 
        be appointed by the President from among the members of 
        the Commission.
          (2) Authority.--The Chair shall be the principal 
        executive officer of the Commission, and shall exercise 
        all of the executive and administrative functions of 
        the Commission, including with respect to--
                  (A) the appointment and supervision of 
                personnel employed under the Commission (other 
                than personnel employed regularly and full time 
                in the immediate offices of members of the 
                Commission other than the Chair);
                  (B) the distribution of business among 
                personnel appointed and supervised by the Chair 
                and among administrative units of the 
                Commission; and
                  (C) the use and expenditure of funds.
          (3) Limitation.--In carrying out any of the Chair's 
        functions under the provisions of this subsection the 
        Chair shall be governed by general policies of the 
        Commission and by such regulatory decisions, findings, 
        and determinations as the Commission may by law be 
        authorized to make.
          (4) Requests or estimates related to 
        appropriations.--Requests or estimates for regular, 
        supplemental, or deficiency appropriations on behalf of 
        the Commission may not be submitted by the Chair 
        without the prior approval of the Commission.
  (f) No Impairment by Reason of Vacancies.--No vacancy in the 
members of the Commission shall impair the right of the 
remaining members of the Commission to exercise all the powers 
of the Commission. Three members of the Commission shall 
constitute a quorum for the transaction of business, except 
that if there are only 3 members serving on the Commission 
because of vacancies in the Commission, 2 members of the 
Commission shall constitute a quorum for the transaction of 
business. If there are only 2 members serving on the Commission 
because of vacancies in the Commission, 2 members shall 
constitute a quorum for the 6-month period beginning on the 
date of the vacancy which caused the number of Commission 
members to decline to 2.
  (g) Seal.--The Commission shall have an official seal.
  (h) Compensation.--
          (1) Chair.--The Chair shall receive compensation at 
        the rate prescribed for level I of the Executive 
        Schedule under section 5313 of title 5, United States 
        Code.
          (2) Other members of the commission.--The 4 other 
        members of the Commission shall each receive 
        compensation at the rate prescribed for level II of the 
        Executive Schedule under section 5314 of title 5, 
        United States Code.
  [(e)] (i) Offices.--The principal office of the [Bureau] 
Commission shall be in the District of Columbia. The [Director] 
Financial Product Safety Commission may establish regional 
offices of the [Bureau] Commission [, including in cities in 
which the Federal reserve banks, or branches of such banks, are 
located,] in order to carry out the responsibilities assigned 
to the [Bureau] Commission under the Federal consumer financial 
laws.

SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS.

  (a) Powers of the Bureau.--The Bureau is authorized to 
establish the general policies of the Bureau with respect to 
all executive and administrative functions, including--
          (1) the establishment of rules for conducting the 
        general business of the Bureau, in a manner not 
        inconsistent with this title;
          (2) to bind the Bureau and enter into contracts;
          (3) directing the establishment and maintenance of 
        divisions or other offices within the Bureau, in order 
        to carry out the responsibilities under the Federal 
        consumer financial laws, and to satisfy the 
        requirements of other applicable law;
          (4) to coordinate and oversee the operation of all 
        administrative, enforcement, and research activities of 
        the Bureau;
          (5) to adopt and use a seal;
          (6) to determine the character of and the necessity 
        for the obligations and expenditures of the Bureau;
          (7) the appointment and supervision of personnel 
        employed by the Bureau;
          (8) the distribution of business among personnel 
        appointed and supervised by the [Director] Financial 
        Product Safety Commission and among administrative 
        units of the Bureau;
          (9) the use and expenditure of funds;
          (10) implementing the Federal consumer financial laws 
        through rules, orders, guidance, interpretations, 
        statements of policy, examinations, and enforcement 
        actions; and
          (11) performing such other functions as may be 
        authorized or required by law.
  (b) Delegation of Authority.--The [Director of the Bureau] 
Financial Product Safety Commission may delegate to any duly 
authorized employee, representative, or agent any power vested 
in the Bureau by law.
  (c) Autonomy of the Bureau.--
          (1) Coordination with the board of governors.--
        Notwithstanding any other provision of law applicable 
        to the supervision or examination of persons with 
        respect to Federal consumer financial laws, the Board 
        of Governors may delegate to the Bureau the authorities 
        to examine persons subject to the jurisdiction of the 
        Board of Governors for compliance with the Federal 
        consumer financial laws.
          [(2) Autonomy.--Notwithstanding the authorities 
        granted to the Board of Governors under the Federal 
        Reserve Act, the Board of Governors may not--
                  [(A) intervene in any matter or proceeding 
                before the Director, including examinations or 
                enforcement actions, unless otherwise 
                specifically provided by law;
                  [(B) appoint, direct, or remove any officer 
                or employee of the Bureau; or
                  [(C) merge or consolidate the Bureau, or any 
                of the functions or responsibilities of the 
                Bureau, with any division or office of the 
                Board of Governors or the Federal reserve 
                banks.
          [(3) Rules and orders.--No rule or order of the 
        Bureau shall be subject to approval or review by the 
        Board of Governors. The Board of Governors may not 
        delay or prevent the issuance of any rule or order of 
        the Bureau.
          [(4) Recommendations and testimony.--No officer or 
        agency of the United States shall have any authority to 
        require the Director or any other officer of the Bureau 
        to submit legislative recommendations, or testimony or 
        comments on legislation, to any officer or agency of 
        the United States for approval, comments, or review 
        prior to the submission of such recommendations, 
        testimony, or comments to the Congress, if such 
        recommendations, testimony, or comments to the Congress 
        include a statement indicating that the views expressed 
        therein are those of the Director or such officer, and 
        do not necessarily reflect the views of the Board of 
        Governors or the President.
          [(5) Clarification of autonomy of the bureau in legal 
        proceedings.--The Bureau shall not be liable under any 
        provision of law for any action or inaction of the 
        Board of Governors, and the Board of Governors shall 
        not be liable under any provision of law for any action 
        or inaction of the Bureau.]

SEC. 1013. ADMINISTRATION.

  (a) Personnel.--
          (1) Appointment.--
                  (A) In general.--The [Director] Financial 
                Product Safety Commission may fix the number 
                of, and appoint and direct, all employees of 
                the Bureau, in accordance with the applicable 
                provisions of title 5, United States Code.
                  (B) Employees of the bureau.--The [Director] 
                Financial Product Safety Commission is 
                authorized to employ attorneys, compliance 
                examiners, compliance supervision analysts, 
                economists, statisticians, and other employees 
                as may be deemed necessary to conduct the 
                business of the Bureau. Unless otherwise 
                provided expressly by law, any individual 
                appointed under this section shall be an 
                employee as defined in section 2105 of title 5, 
                United States Code, and subject to the 
                provisions of such title and other laws 
                generally applicable to the employees of an 
                Executive agency.
                  (C) Waiver authority.--
                          (i) In general.--In making any 
                        appointment under subparagraph (A), the 
                        [Director] Financial Product Safety 
                        Commission may waive the requirements 
                        of chapter 33 of title 5, United States 
                        Code, and the regulations implementing 
                        such chapter, to the extent necessary 
                        to appoint employees on terms and 
                        conditions that are consistent with 
                        those set forth in section 11(1) of the 
                        Federal Reserve Act (12 U.S.C. 248(1)), 
                        while providing for--
                                  (I) fair, credible, and 
                                transparent methods of 
                                establishing qualification 
                                requirements for, recruitment 
                                for, and appointments to 
                                positions;
                                  (II) fair and open 
                                competition and equitable 
                                treatment in the consideration 
                                and selection of individuals to 
                                positions;
                                  (III) fair, credible, and 
                                transparent methods of 
                                assigning, reassigning, 
                                detailing, transferring, and 
                                promoting employees.
                          (ii) Veterans preferences.--In 
                        implementing this subparagraph, the 
                        [Director] Financial Product Safety 
                        Commission shall comply with the 
                        provisions of section 2302(b)(11), 
                        regarding veterans' preference 
                        requirements, in a manner consistent 
                        with that in which such provisions are 
                        applied under chapter 33 of title 5, 
                        United States Code. The authority under 
                        this subparagraph to waive the 
                        requirements of that chapter 33 shall 
                        expire 5 years after the date of 
                        enactment of this Act.
          (2) Compensation.--Notwithstanding any otherwise 
        applicable provision of title 5, United States Code, 
        concerning compensation, including the provisions of 
        chapter 51 and chapter 53, the following provisions 
        shall apply with respect to employees of the Bureau:
                  (A) The rates of basic pay for all employees 
                of the Bureau may be set and adjusted by the 
                [Director] Financial Product Safety Commission.
                  (B) The [Director] Financial Product Safety 
                Commission shall at all times provide 
                compensation (including benefits) to each class 
                of employees that, at a minimum, are comparable 
                to the compensation and benefits then being 
                provided by the Board of Governors for the 
                corresponding class of employees.
                  (C) All such employees shall be compensated 
                (including benefits) on terms and conditions 
                that are consistent with the terms and 
                conditions set forth in section 11(l) of the 
                Federal Reserve Act (12 U.S.C. 248(l)).
          (3) Bureau participation in federal reserve system 
        retirement plan and federal reserve system thrift 
        plan.--
                  (A) Employee election.--Employees appointed 
                to the Bureau may elect to participate in 
                either--
                          (i) both the Federal Reserve System 
                        Retirement Plan and the Federal Reserve 
                        System Thrift Plan, under the same 
                        terms on which such participation is 
                        offered to employees of the Board of 
                        Governors who participate in such plans 
                        and under the terms and conditions 
                        specified under section 1064(i)(1)(C); 
                        or
                          (ii) the Civil Service Retirement 
                        System under chapter 83 of title 5, 
                        United States Code, or the Federal 
                        Employees Retirement System under 
                        chapter 84 of title 5, United States 
                        Code, if previously covered under one 
                        of those Federal employee retirement 
                        systems.
                  (B) Election period.--Bureau employees shall 
                make an election under this paragraph not later 
                than 1 year after the date of appointment by, 
                or transfer under subtitle F to, the Bureau. 
                Participation in, and benefit accruals under, 
                any other retirement plan established or 
                maintained by the Federal Government shall end 
                not later than the date on which participation 
                in, and benefit accruals under, the Federal 
                Reserve System Retirement Plan and Federal 
                Reserve System Thrift Plan begin.
                  (C) Employer contribution.--The Bureau shall 
                pay an employer contribution to the Federal 
                Reserve System Retirement Plan, in the amount 
                established as an employer contribution under 
                the Federal Employees Retirement System, as 
                established under chapter 84 of title 5, United 
                States Code, for each Bureau employee who 
                elects to participate in the Federal Reserve 
                System Retirement Plan. The Bureau shall pay an 
                employer contribution to the Federal Reserve 
                System Thrift Plan for each Bureau employee who 
                elects to participate in such plan, as required 
                under the terms of such plan.
                  (D) Controlled group status.--The Bureau is 
                the same employer as the Federal Reserve System 
                (as comprised of the Board of Governors and 
                each of the 12 Federal reserve banks prior to 
                the date of enactment of this Act) for purposes 
                of subsections (b), (c), (m), and (o) of 
                section 414 of the Internal Revenue Code of 
                1986, (26 U.S.C. 414).
          (4) Labor-management relations.--Chapter 71 of title 
        5, United States Code, shall apply to the Bureau and 
        the employees of the Bureau.
          (5) Agency ombudsman.--
                  (A) Establishment required.--Not later than 
                180 days after the designated transfer date, 
                the Bureau shall appoint an ombudsman.
                  (B) Duties of ombudsman.--The ombudsman 
                appointed in accordance with subparagraph (A) 
                shall--
                          (i) act as a liaison between the 
                        Bureau and any affected person with 
                        respect to any problem that such party 
                        may have in dealing with the Bureau, 
                        resulting from the regulatory 
                        activities of the Bureau; and
                          (ii) assure that safeguards exist to 
                        encourage complainants to come forward 
                        and preserve confidentiality.
  (b) Specific Functional Units.--
          (1) Research.--The [Director] Financial Product 
        Safety Commission shall establish a unit whose 
        functions shall include researching, analyzing, and 
        reporting on--
                  (A) developments in markets for consumer 
                financial products or services, including 
                market areas of alternative consumer financial 
                products or services with high growth rates and 
                areas of risk to consumers;
                  (B) access to fair and affordable credit for 
                traditionally underserved communities;
                  (C) consumer awareness, understanding, and 
                use of disclosures and communications regarding 
                consumer financial products or services;
                  (D) consumer awareness and understanding of 
                costs, risks, and benefits of consumer 
                financial products or services;
                  (E) consumer behavior with respect to 
                consumer financial products or services, 
                including performance on mortgage loans; and
                  (F) experiences of traditionally underserved 
                consumers, including un-banked and under-banked 
                consumers.
          (2) Community affairs.--The [Director] Financial 
        Product Safety Commission shall establish a unit whose 
        functions shall include providing information, 
        guidance, and technical assistance regarding the 
        offering and provision of consumer financial products 
        or services to traditionally underserved consumers and 
        communities.
          (3) Collecting and tracking complaints.--
                  (A) In general.--The [Director] Financial 
                Product Safety Commission shall establish a 
                unit whose functions shall include establishing 
                a single, toll-free telephone number, a 
                website, and a database or utilizing an 
                existing database to facilitate the centralized 
                collection of, monitoring of, and response to 
                consumer complaints regarding consumer 
                financial products or services. The [Director] 
                Financial Product Safety Commission shall 
                coordinate with the Federal Trade Commission or 
                other Federal agencies to route complaints to 
                such agencies, where appropriate.
                  (B) Routing calls to states.--To the extent 
                practicable, State agencies may receive 
                appropriate complaints from the systems 
                established under subparagraph (A), if--
                          (i) the State agency system has the 
                        functional capacity to receive calls or 
                        electronic reports routed by the Bureau 
                        systems;
                          (ii) the State agency has satisfied 
                        any conditions of participation in the 
                        system that the Bureau may establish, 
                        including treatment of personally 
                        identifiable information and sharing of 
                        information on complaint resolution or 
                        related compliance procedures and 
                        resources; and
                          (iii) participation by the State 
                        agency includes measures necessary to 
                        provide for protection of personally 
                        identifiable information that conform 
                        to the standards for protection of the 
                        confidentiality of personally 
                        identifiable information and for data 
                        integrity and security that apply to 
                        the Federal agencies described in 
                        subparagraph (D).
                  (C) Reports to the congress.--The [Director] 
                Financial Product Safety Commission shall 
                present an annual report to Congress not later 
                than March 31 of each year on the complaints 
                received by the Bureau in the prior year 
                regarding consumer financial products and 
                services. Such report shall include information 
                and analysis about complaint numbers, complaint 
                types, and, where applicable, information about 
                resolution of complaints.
                  (D) Data sharing required.--To facilitate 
                preparation of the reports required under 
                subparagraph (C), supervision and enforcement 
                activities, and monitoring of the market for 
                consumer financial products and services, the 
                Bureau shall share consumer complaint 
                information with prudential regulators, the 
                Federal Trade Commission, other Federal 
                agencies, and State agencies, subject to the 
                standards applicable to Federal agencies for 
                protection of the confidentiality of personally 
                identifiable information and for data security 
                and integrity. The prudential regulators, the 
                Federal Trade Commission, and other Federal 
                agencies shall share data relating to consumer 
                complaints regarding consumer financial 
                products and services with the Bureau, subject 
                to the standards applicable to Federal agencies 
                for protection of confidentiality of personally 
                identifiable information and for data security 
                and integrity.
  (c) Office of Fair Lending and Equal Opportunity.--
          (1) Establishment.--The [Director] Financial Product 
        Safety Commission shall establish within the Bureau the 
        Office of Fair Lending and Equal Opportunity.
          (2) Functions.--The Office of Fair Lending and Equal 
        Opportunity shall have such powers and duties as the 
        [Director] Financial Product Safety Commission may 
        delegate to the Office, including--
                  (A) providing oversight and enforcement of 
                Federal laws intended to ensure the fair, 
                equitable, and nondiscriminatory access to 
                credit for both individuals and communities 
                that are enforced by the Bureau, including the 
                Equal Credit Opportunity Act and the Home 
                Mortgage Disclosure Act;
                  (B) coordinating fair lending efforts of the 
                Bureau with other Federal agencies and State 
                regulators, as appropriate, to promote 
                consistent, efficient, and effective 
                enforcement of Federal fair lending laws;
                  (C) working with private industry, fair 
                lending, civil rights, consumer and community 
                advocates on the promotion of fair lending 
                compliance and education; and
                  (D) providing annual reports to Congress on 
                the efforts of the Bureau to fulfill its fair 
                lending mandate.
          (3) Administration of office.--There is established 
        the position of [Assistant Director of the Bureau for] 
        Head of the Office of Fair Lending and Equal 
        Opportunity, who--
                  (A) shall be appointed by the [Director] 
                Financial Product Safety Commission; and
                  (B) shall carry out such duties as the 
                [Director] Financial Product Safety Commission 
                may delegate to such [Assistant Director] Head 
                of the Office.
  (d) Office of Financial Education.--
          (1) Establishment.--The [Director] Financial Product 
        Safety Commission shall establish an Office of 
        Financial Education, which shall be responsible for 
        developing and implementing initiatives intended to 
        educate and empower consumers to make better informed 
        financial decisions.
          (2) Other duties.--The Office of Financial Education 
        shall develop and implement a strategy to improve the 
        financial literacy of consumers that includes 
        measurable goals and objectives, in consultation with 
        the Financial Literacy and Education Commission, 
        consistent with the National Strategy for Financial 
        Literacy, through activities including providing 
        opportunities for consumers to access--
                  (A) financial counseling, including 
                community-based financial counseling, where 
                practicable;
                  (B) information to assist with the evaluation 
                of credit products and the understanding of 
                credit histories and scores;
                  (C) savings, borrowing, and other services 
                found at mainstream financial institutions;
                  (D) activities intended to--
                          (i) prepare the consumer for 
                        educational expenses and the submission 
                        of financial aid applications, and 
                        other major purchases;
                          (ii) reduce debt; and
                          (iii) improve the financial situation 
                        of the consumer;
                  (E) assistance in developing long-term 
                savings strategies; and
                  (F) wealth building and financial services 
                during the preparation process to claim earned 
                income tax credits and Federal benefits.
          (3) Coordination.--The Office of Financial Education 
        shall coordinate with other units within the Bureau in 
        carrying out its functions, including--
                  (A) working with the Community Affairs Office 
                to implement the strategy to improve financial 
                literacy of consumers; and
                  (B) working with the research unit 
                established by the [Director] Financial Product 
                Safety Commission to conduct research related 
                to consumer financial education and counseling.
          (4) Report.--Not later than 24 months after the 
        designated transfer date, and annually thereafter, the 
        [Director] Financial Product Safety Commission shall 
        submit a report on its financial literacy activities 
        and strategy to improve financial literacy of consumers 
        to--
                  (A) the Committee on Banking, Housing, and 
                Urban Affairs of the Senate; and
                  (B) the Committee on Financial Services of 
                the House of Representatives.
          (5) Membership in financial literacy and education 
        commission.--Section 513(c)(1) of the Financial 
        Literacy and Education Improvement Act (20 U.S.C. 
        9702(c)(1)) is amended--
                  (A) in subparagraph (B), by striking ``and'' 
                at the end;
                  (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                  (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                  ``(C) the [Director of the Bureau] Financial 
                Product Safety Commission of Consumer Financial 
                Protection; and''.
          (6) Conforming amendment.--Section 513(d) of the 
        Financial Literacy and Education Improvement Act (20 
        U.S.C. 9702(d)) is amended by adding at the end the 
        following: ``The [Director of the Bureau] Financial 
        Product Safety Commission of Consumer Financial 
        Protection shall serve as the Vice Chairman.''.
          (7) Study and report on financial literacy program.--
                  (A) In general.--The Comptroller General of 
                the United States shall conduct a study to 
                identify--
                          (i) the feasibility of certification 
                        of persons providing the programs or 
                        performing the activities described in 
                        paragraph (2), including recognizing 
                        outstanding programs, and developing 
                        guidelines and resources for community-
                        based practitioners, including--
                                  (I) a potential certification 
                                process and standards for 
                                certification;
                                  (II) appropriate certifying 
                                entities;
                                  (III) resources required for 
                                funding such a process; and
                                  (IV) a cost-benefit analysis 
                                of such certification;
                          (ii) technological resources intended 
                        to collect, analyze, evaluate, or 
                        promote financial literacy and 
                        counseling programs;
                          (iii) effective methods, tools, and 
                        strategies intended to educate and 
                        empower consumers about personal 
                        finance management; and
                          (iv) recommendations intended to 
                        encourage the development of programs 
                        that effectively improve financial 
                        education outcomes and empower 
                        consumers to make better informed 
                        financial decisions based on findings.
                  (B) Report.--Not later than 1 year after the 
                date of enactment of this Act, the Comptroller 
                General of the United States shall submit a 
                report on the results of the study conducted 
                under this paragraph to the Committee on 
                Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on Financial Services 
                of the House of Representatives.
  (e) Office of Service Member Affairs.--
          (1) In general.--The [Director] Financial Product 
        Safety Commission 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] 
                Financial Product Safety Commission 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] Financial 
                Product Safety Commission 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.
  (f) Timing.--The Office of Fair Lending and Equal 
Opportunity, the Office of Financial Education, and the Office 
of Service Member Affairs shall each be established not later 
than 1 year after the designated transfer date.
  (g) Office of Financial Protection for Older Americans.--
          (1) Establishment.--Before the end of the 180-day 
        period beginning on the designated transfer date, the 
        [Director] Financial Product Safety Commission shall 
        establish the Office of Financial Protection for Older 
        Americans, the functions of which shall include 
        activities designed to facilitate the financial 
        literacy of individuals who have attained the age of 62 
        years or more (in this subsection, referred to as 
        ``seniors'') on protection from unfair, deceptive, and 
        abusive practices and on current and future financial 
        choices, including through the dissemination of 
        materials to seniors on such topics.
          (2)  [Assistant director]  Head of the office.--The 
        Office of Financial Protection for Older Americans (in 
        this subsection referred to as the ``Office'') shall be 
        headed by [an assistant director] a Head of the Office 
        of Financial Protection for Older Americans.
          (3) Duties.--The Office shall--
                  (A) develop goals for programs that provide 
                seniors financial literacy and counseling, 
                including programs that--
                          (i) help seniors recognize warning 
                        signs of unfair, deceptive, or abusive 
                        practices, protect themselves from such 
                        practices;
                          (ii) provide one-on-one financial 
                        counseling on issues including long-
                        term savings and later-life economic 
                        security; and
                          (iii) provide personal consumer 
                        credit advocacy to respond to consumer 
                        problems caused by unfair, deceptive, 
                        or abusive practices;
                  (B) monitor certifications or designations of 
                financial advisors who advise seniors and alert 
                the Commission and State regulators of 
                certifications or designations that are 
                identified as unfair, deceptive, or abusive;
                  (C) not later than 18 months after the date 
                of the establishment of the Office, submit to 
                Congress and the Commission any legislative and 
                regulatory recommendations on the best 
                practices for--
                          (i) disseminating information 
                        regarding the legitimacy of 
                        certifications of financial advisers 
                        who advise seniors;
                          (ii) methods in which a senior can 
                        identify the financial advisor most 
                        appropriate for the senior's needs; and
                          (iii) methods in which a senior can 
                        verify a financial advisor's 
                        credentials;
                  (D) conduct research to identify best 
                practices and effective methods, tools, 
                technology and strategies to educate and 
                counsel seniors about personal finance 
                management with a focus on--
                          (i) protecting themselves from 
                        unfair, deceptive, and abusive 
                        practices;
                          (ii) long-term savings; and
                          (iii) planning for retirement and 
                        long-term care;
                  (E) coordinate consumer protection efforts of 
                seniors with other Federal agencies and State 
                regulators, as appropriate, to promote 
                consistent, effective, and efficient 
                enforcement; and
                  (F) work with community organizations, non-
                profit organizations, and other entities that 
                are involved with educating or assisting 
                seniors (including the National Education and 
                Resource Center on Women and Retirement 
                Planning).

SEC. 1014. CONSUMER ADVISORY BOARD.

  (a) Establishment Required.--The [Director] Financial Product 
Safety Commission shall establish a Consumer Advisory Board to 
advise and consult with the Bureau in the exercise of its 
functions under the Federal consumer financial laws, and to 
provide information on emerging practices in the consumer 
financial products or services industry, including regional 
trends, concerns, and other relevant information.
  (b) Membership.--In appointing the members of the Consumer 
Advisory Board, the [Director] Financial Product Safety 
Commission shall seek to assemble experts in consumer 
protection, financial services, community development, fair 
lending and civil rights, and consumer financial products or 
services and representatives of depository institutions that 
primarily serve underserved communities, and representatives of 
communities that have been significantly impacted by higher-
priced mortgage loans, and seek representation of the interests 
of covered persons and consumers, without regard to party 
affiliation. [Not fewer than 6 members shall be appointed upon 
the recommendation of the regional Federal Reserve Bank 
Presidents, on a rotating basis.]
  (c) Meetings.--The Consumer Advisory Board shall meet from 
time to time at the call of the [Director] Financial Product 
Safety Commission, but, at a minimum, shall meet at least twice 
in each year.
  (d) Compensation and Travel Expenses.--Members of the 
Consumer Advisory Board who are not full-time employees of the 
United States shall--
          (1) be entitled to receive compensation at a rate 
        fixed by the [Director] Financial Product Safety 
        Commission while attending meetings of the Consumer 
        Advisory Board, including travel time; and
          (2) be allowed travel expenses, including 
        transportation and subsistence, while away from their 
        homes or regular places of business.

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SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

  (a) Appearances Before Congress.--The [Director of the 
Bureau] Chair of the Financial Product Safety Commission shall 
appear before the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services 
and the Committee on Energy and Commerce of the House of 
Representatives at semi-annual hearings regarding the reports 
required under subsection (b).
  (b) Reports Required.--The Bureau shall, concurrent with each 
semi-annual hearing referred to in subsection (a), prepare and 
submit to the President and to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services and the Committee on Energy and Commerce of 
the House of Representatives, a report, beginning with the 
session following the designated transfer date. The Bureau may 
also submit such report to the Committee on Commerce, Science, 
and Transportation of the Senate.
  (c) Contents.--The reports required by subsection (b) shall 
include--
          (1) a discussion of the significant problems faced by 
        consumers in shopping for or obtaining consumer 
        financial products or services;
          (2) a justification of the budget request of the 
        previous year;
          (3) a list of the significant rules and orders 
        adopted by the Bureau, as well as other significant 
        initiatives conducted by the Bureau, during the 
        preceding year and the plan of the Bureau for rules, 
        orders, or other initiatives to be undertaken during 
        the upcoming period;
          (4) an analysis of complaints about consumer 
        financial products or services that the Bureau has 
        received and collected in its central database on 
        complaints during the preceding year;
          (5) a list, with a brief statement of the issues, of 
        the public supervisory and enforcement actions to which 
        the Bureau was a party during the preceding year;
          (6) the actions taken regarding rules, orders, and 
        supervisory actions with respect to covered persons 
        which are not credit unions or depository institutions;
          (7) an assessment of significant actions by State 
        attorneys general or State regulators relating to 
        Federal consumer financial law;
          (8) an analysis of the efforts of the Bureau to 
        fulfill the fair lending mission of the Bureau; and
          (9) an analysis of the efforts of the Bureau to 
        increase workforce and contracting diversity consistent 
        with the procedures established by the Office of 
        Minority and Women Inclusion.

           *       *       *       *       *       *       *


SEC. 1017. FUNDING; PENALTIES AND FINES.

  (a) Transfer of Funds From Board Of Governors.--
          (1) In general.--Each year (or quarter of such year), 
        beginning on the designated transfer date, and each 
        quarter thereafter, the Board of Governors shall 
        transfer to the Bureau from the combined earnings of 
        the Federal Reserve System, the amount determined by 
        the [Director] Financial Product Safety Commission to 
        be reasonably necessary to carry out the authorities of 
        the Bureau under Federal consumer financial law, taking 
        into account such other sums made available to the 
        Bureau from the preceding year (or quarter of such 
        year).
          (2) Funding cap.--
                  (A) In general.--Notwithstanding paragraph 
                (1), and in accordance with this paragraph, the 
                amount that shall be transferred to the Bureau 
                in each fiscal year shall not exceed a fixed 
                percentage of the total operating expenses of 
                the Federal Reserve System, as reported in the 
                Annual Report, 2009, of the Board of Governors, 
                equal to--
                          (i) 10 percent of such expenses in 
                        fiscal year 2011;
                          (ii) 11 percent of such expenses in 
                        fiscal year 2012; and
                          (iii) 12 percent of such expenses in 
                        fiscal year 2013, and in each year 
                        thereafter.
                  (B) Adjustment of amount.--The dollar amount 
                referred to in subparagraph (A)(iii) shall be 
                adjusted annually, using the percent increase, 
                if any, in the employment cost index for total 
                compensation for State and local government 
                workers published by the Federal Government, or 
                the successor index thereto, for the 12-month 
                period ending on September 30 of the year 
                preceding the transfer.
                  (C) Reviewability.--Notwithstanding any other 
                provision in this title, the funds derived from 
                the Federal Reserve System pursuant to this 
                subsection shall not be subject to review by 
                the Committees on Appropriations of the House 
                of Representatives and the Senate.
          (3) Transition period.--Beginning on the date of 
        enactment of this Act and until the designated transfer 
        date, the Board of Governors shall transfer to the 
        Bureau the amount estimated by the Secretary needed to 
        carry out the authorities granted to the Bureau under 
        Federal consumer financial law, from the date of 
        enactment of this Act until the designated transfer 
        date.
          (4) Budget and financial management.--
                  (A) Financial operating plans and 
                forecasts.--The [Director] Financial Product 
                Safety Commission shall provide to the 
                [Director] Financial Product Safety Commission 
                of the Office of Management and Budget copies 
                of the financial operating plans and forecasts 
                of the [Director] Financial Product Safety 
                Commission, as prepared by the [Director] 
                Financial Product Safety Commission in the 
                ordinary course of the operations of the 
                Bureau, and copies of the quarterly reports of 
                the financial condition and results of 
                operations of the Bureau, as prepared by the 
                [Director] Financial Product Safety Commission 
                in the ordinary course of the operations of the 
                Bureau.
                  (B) Financial statements.--The Bureau shall 
                prepare annually a statement of--
                          (i) assets and liabilities and 
                        surplus or deficit;
                          (ii) income and expenses; and
                          (iii) sources and application of 
                        funds.
                  (C) Financial management systems.--The Bureau 
                shall implement and maintain financial 
                management systems that comply substantially 
                with Federal financial management systems 
                requirements and applicable Federal accounting 
                standards.
                  (D) Assertion of internal controls.--The 
                [Director] Financial Product Safety Commission 
                shall provide to the Comptroller General of the 
                United States an assertion as to the 
                effectiveness of the internal controls that 
                apply to financial reporting by the Bureau, 
                using the standards established in section 
                3512(c) of title 31, United States Code.
                  (E) Rule of construction.--This subsection 
                may not be construed as implying any obligation 
                on the part of the [Director] Financial Product 
                Safety Commission to consult with or obtain the 
                consent or approval of the [Director] Financial 
                Product Safety Commission of the Office of 
                Management and Budget with respect to any 
                report, plan, forecast, or other information 
                referred to in subparagraph (A) or any 
                jurisdiction or oversight over the affairs or 
                operations of the Bureau.
                  (F) Financial statements.--The financial 
                statements of the Bureau shall not be 
                consolidated with the financial statements of 
                either the Board of Governors or the Federal 
                Reserve System.
          (5) Audit of the bureau.--
                  (A) In general.--The Comptroller General 
                shall annually audit the financial transactions 
                of the Bureau in accordance with the United 
                States generally accepted government auditing 
                standards, as may be prescribed by the 
                Comptroller General of the United States. The 
                audit shall be conducted at the place or places 
                where accounts of the Bureau are normally kept. 
                The representatives of the Government 
                Accountability Office shall have access to the 
                personnel and to all books, accounts, 
                documents, papers, records (including 
                electronic records), reports, files, and all 
                other papers, automated data, things, or 
                property belonging to or under the control of 
                or used or employed by the Bureau pertaining to 
                its financial transactions and necessary to 
                facilitate the audit, and such representatives 
                shall be afforded full facilities for verifying 
                transactions with the balances or securities 
                held by depositories, fiscal agents, and 
                custodians. All such books, accounts, 
                documents, records, reports, files, papers, and 
                property of the Bureau shall remain in 
                possession and custody of the Bureau. The 
                Comptroller General may obtain and duplicate 
                any such books, accounts, documents, records, 
                working papers, automated data and files, or 
                other information relevant to such audit 
                without cost to the Comptroller General, and 
                the right of access of the Comptroller General 
                to such information shall be enforceable 
                pursuant to section 716(c) of title 31, United 
                States Code.
                  (B) Report.--The Comptroller General shall 
                submit to the Congress a report of each annual 
                audit conducted under this subsection. The 
                report to the Congress shall set forth the 
                scope of the audit and shall include the 
                statement of assets and liabilities and surplus 
                or deficit, the statement of income and 
                expenses, the statement of sources and 
                application of funds, and such comments and 
                information as may be deemed necessary to 
                inform Congress of the financial operations and 
                condition of the Bureau, together with such 
                recommendations with respect thereto as the 
                Comptroller General may deem advisable. A copy 
                of each report shall be furnished to the 
                President and to the Bureau at the time 
                submitted to the Congress.
                  (C) Assistance and costs.--For the purpose of 
                conducting an audit under this subsection, the 
                Comptroller General may, in the discretion of 
                the Comptroller General, employ by contract, 
                without regard to section 3709 of the Revised 
                Statutes of the United States (41 U.S.C. 5), 
                professional services of firms and 
                organizations of certified public accountants 
                for temporary periods or for special purposes. 
                Upon the request of the Comptroller General, 
                the [Director of the Bureau] Financial Product 
                Safety Commission shall transfer to the 
                Government Accountability Office from funds 
                available, the amount requested by the 
                Comptroller General to cover the full costs of 
                any audit and report conducted by the 
                Comptroller General. The Comptroller General 
                shall credit funds transferred to the account 
                established for salaries and expenses of the 
                Government Accountability Office, and such 
                amount shall be available upon receipt and 
                without fiscal year limitation to cover the 
                full costs of the audit and report.
  (b) Consumer Financial Protection Fund.--
          (1) Separate fund in federal reserve established.--
        There is established in the Federal Reserve a separate 
        fund, to be known as the ``Bureau of Consumer Financial 
        Protection Fund'' (referred to in this section as the 
        ``Bureau Fund''). The Bureau Fund shall be maintained 
        and established at a Federal reserve bank, in 
        accordance with such requirements as the Board of 
        Governors may impose.
          (2) Fund receipts.--All amounts transferred to the 
        Bureau under subsection (a) shall be deposited into the 
        Bureau Fund.
          (3) Investment authority.--
                  (A) Amounts in bureau fund may be invested.--
                The Bureau may request the Board of Governors 
                to direct the investment of the portion of the 
                Bureau Fund that is not, in the judgment of the 
                Bureau, required to meet the current needs of 
                the Bureau.
                  (B) Eligible investments.--Investments 
                authorized by this paragraph shall be made in 
                obligations of the United States or obligations 
                that are guaranteed as to principal and 
                interest by the United States, with maturities 
                suitable to the needs of the Bureau Fund, as 
                determined by the Bureau.
                  (C) Interest and proceeds credited.--The 
                interest on, and the proceeds from the sale or 
                redemption of, any obligations held in the 
                Bureau Fund shall be credited to the Bureau 
                Fund.
  (c) Use of Funds.--
          (1) In general.--Funds obtained by, transferred to, 
        or credited to the Bureau Fund shall be immediately 
        available to the Bureau and under the control of the 
        [Director] Financial Product Safety Commission, and 
        shall remain available until expended, to pay the 
        expenses of the Bureau in carrying out its duties and 
        responsibilities. The compensation of the [Director] 
        Financial Product Safety Commission and other employees 
        of the Bureau and all other expenses thereof may be 
        paid from, obtained by, transferred to, or credited to 
        the Bureau Fund under this section.
          (2) Funds that are not government funds.--Funds 
        obtained by or transferred to the Bureau Fund shall not 
        be construed to be Government funds or appropriated 
        monies.
          (3) Amounts not subject to apportionment.--
        Notwithstanding any other provision of law, amounts in 
        the Bureau Fund and in the Civil Penalty Fund 
        established under subsection (d) shall not be subject 
        to apportionment for purposes of chapter 15 of title 
        31, United States Code, or under any other authority.
  (d) Penalties and Fines.--
          (1) Establishment of victims relief fund.--There is 
        established in the Federal Reserve a separate fund, to 
        be known as the ``Consumer Financial Civil Penalty 
        Fund'' (referred to in this section as the ``Civil 
        Penalty Fund''). The Civil Penalty Fund shall be 
        maintained and established at a Federal reserve bank, 
        in accordance with such requirements as the Board of 
        Governors may impose. If the Bureau obtains a civil 
        penalty against any person in any judicial or 
        administrative action under Federal consumer financial 
        laws, the Bureau shall deposit into the Civil Penalty 
        Fund, the amount of the penalty collected.
          (2) Payment to victims.--Amounts in the Civil Penalty 
        Fund shall be available to the Bureau, without fiscal 
        year limitation, for payments to the victims of 
        activities for which civil penalties have been imposed 
        under the Federal consumer financial laws. To the 
        extent that such victims cannot be located or such 
        payments are otherwise not practicable, the Bureau may 
        use such funds for the purpose of consumer education 
        and financial literacy programs.
  (e) Authorization of Appropriations; Annual Report.--
          (1) Determination regarding need for appropriated 
        funds.--
                  (A) In general.--The [Director] Financial 
                Product Safety Commission is authorized to 
                determine that sums available to the Bureau 
                under this section will not be sufficient to 
                carry out the authorities of the Bureau under 
                Federal consumer financial law for the upcoming 
                year.
                  (B) Report required.--When making a 
                determination under subparagraph (A), the 
                [Director] Financial Product Safety Commission 
                shall prepare a report regarding the funding of 
                the Bureau, including the assets and 
                liabilities of the Bureau, and the extent to 
                which the funding needs of the Bureau are 
                anticipated to exceed the level of the amount 
                set forth in subsection (a)(2). The [Director] 
                Financial Product Safety Commission shall 
                submit the report to the President and to the 
                Committee on Appropriations of the Senate and 
                the Committee on Appropriations of the House of 
                Representatives.
          (2) Authorization of appropriations.--If the 
        [Director] Financial Product Safety Commission makes 
        the determination and submits the report pursuant to 
        paragraph (1), there are hereby authorized to be 
        appropriated to the Bureau, for the purposes of 
        carrying out the authorities granted in Federal 
        consumer financial law, $200,000,000 for each of fiscal 
        years 2010, 2011, 2012, 2013, and 2014.
          (3) Apportionment.--Notwithstanding any other 
        provision of law, the amounts in paragraph (2) shall be 
        subject to apportionment under section 1517 of title 
        31, United States Code, and restrictions that generally 
        apply to the use of appropriated funds in title 31, 
        United States Code, and other laws.
          (4) Annual report.--The [Director] Financial Product 
        Safety Commission shall prepare and submit a report, on 
        an annual basis, to the Committee on Appropriations of 
        the Senate and the Committee on Appropriations of the 
        House of Representatives regarding the financial 
        operating plans and forecasts of the [Director] 
        Financial Product Safety Commission, the financial 
        condition and results of operations of the Bureau, and 
        the sources and application of funds of the Bureau, 
        including any funds appropriated in accordance with 
        this subsection.

           *       *       *       *       *       *       *


Subtitle C--Specific Bureau Authorities

           *       *       *       *       *       *       *


SEC. 1035. PRIVATE EDUCATION LOAN OMBUDSMAN.

  (a) Establishment.--The Secretary, in consultation with the 
[Director] Financial Product Safety Commission, shall designate 
a Private Education Loan Ombudsman (in this section referred to 
as the ``Ombudsman'') within the Bureau, to provide timely 
assistance to borrowers of private education loans.
  (b) Public Information.--The Secretary and the [Director] 
Financial Product Safety Commission shall disseminate 
information about the availability and functions of the 
Ombudsman to borrowers and potential borrowers, as well as 
institutions of higher education, lenders, guaranty agencies, 
loan servicers, and other participants in private education 
student loan programs.
  (c) Functions of Ombudsman.--The Ombudsman designated under 
this subsection shall--
          (1) in accordance with regulations of the [Director] 
        Financial Product Safety Commission, receive, review, 
        and attempt to resolve informally complaints from 
        borrowers of loans described in subsection (a), 
        including, as appropriate, attempts to resolve such 
        complaints in collaboration with the Department of 
        Education and with institutions of higher education, 
        lenders, guaranty agencies, loan servicers, and other 
        participants in private education loan programs;
          (2) not later than 90 days after the designated 
        transfer date, establish a memorandum of understanding 
        with the student loan ombudsman established under 
        section 141(f) of the Higher Education Act of 1965 (20 
        U.S.C. 1018(f)), to ensure coordination in providing 
        assistance to and serving borrowers seeking to resolve 
        complaints related to their private education or 
        Federal student loans;
          (3) compile and analyze data on borrower complaints 
        regarding private education loans; and
          (4) make appropriate recommendations to the 
        [Director] Financial Product Safety Commission, the 
        Secretary, the Secretary of Education, the Committee on 
        Banking, Housing, and Urban Affairs and the Committee 
        on Health, Education, Labor, and Pensions of the Senate 
        and the Committee on Financial Services and the 
        Committee on Education and Labor of the House of 
        Representatives.
  (d) Annual Reports.--
          (1) In general.--The Ombudsman shall prepare an 
        annual report that describes the activities, and 
        evaluates the effectiveness of the Ombudsman during the 
        preceding year.
          (2) Submission.--The report required by paragraph (1) 
        shall be submitted on the same date annually to the 
        Secretary, the Secretary of Education, the Committee on 
        Banking, Housing, and Urban Affairs and the Committee 
        on Health, Education, Labor, and Pensions of the Senate 
        and the Committee on Financial Services and the 
        Committee on Education and Labor of the House of 
        Representatives.
  (e) Definitions.--For purposes of this section, the terms 
``private education loan'' and ``institution of higher 
education'' have the same meanings as in section 140 of the 
Truth in Lending Act (15 U.S.C. 1650).

           *       *       *       *       *       *       *


     Subtitle F--Transfer of Functions and Personnel; Transitional 
Provisions

           *       *       *       *       *       *       *


SEC. 1066. INTERIM AUTHORITY OF THE SECRETARY.

  (a) In General.--The Secretary is authorized to perform the 
functions of the Bureau under this subtitle until the [Director 
of the Bureau is] first member of the Commission is confirmed 
by the Senate in accordance with section 1011.
  (b) Interim Administrative Services by the Department of the 
Treasury.--The Department of the Treasury may provide 
administrative services necessary to support the Bureau before 
the designated transfer date.

           *       *       *       *       *       *       *


Subtitle G--Regulatory Improvements

           *       *       *       *       *       *       *


SEC. 1079. REVIEW, REPORT, AND PROGRAM WITH RESPECT TO EXCHANGE 
                    FACILITATORS.

  (a) Review.--The [Director] Financial Product Safety 
Commission shall review all Federal laws and regulations 
relating to the protection of consumers who use exchange 
facilitators for transactions primarily for personal, family, 
or household purposes.
  (b) Report.--Not later than 1 year after the designated 
transfer date, the [Director] Financial Product Safety 
Commission shall submit to Congress a report describing--
          (1) recommendations for legislation to ensure the 
        appropriate protection of consumers who use exchange 
        facilitators for transactions primarily for personal, 
        family, or household purposes;
          (2) recommendations for updating the regulations of 
        Federal departments and agencies to ensure the 
        appropriate protection of such consumers; and
          (3) recommendations for regulations to ensure the 
        appropriate protection of such consumers.
  (c) Program.--Not later than 2 years after the date of the 
submission of the report under subsection (b), the Bureau 
shall, consistent with subtitle B, propose regulations or 
otherwise establish a program to protect consumers who use 
exchange facilitators.
  (d) Exchange Facilitator Defined.--In this section, the term 
``exchange facilitator'' means a person that--
          (1) facilitates, for a fee, an exchange of like kind 
        property by entering into an agreement with a taxpayer 
        by which the exchange facilitator acquires from the 
        taxpayer the contractual rights to sell the taxpayer's 
        relinquished property and transfers a replacement 
        property to the taxpayer as a qualified intermediary 
        (within the meaning of Treasury Regulations section 
        1.1031(k)-1(g)(4)) or enters into an agreement with the 
        taxpayer to take title to a property as an exchange 
        accommodation titleholder (within the meaning of 
        Revenue Procedure 2000-37) or enters into an agreement 
        with a taxpayer to act as a qualified trustee or 
        qualified escrow holder (within the meaning of Treasury 
        Regulations section 1.1031(k)-1(g)(3));
          (2) maintains an office for the purpose of soliciting 
        business to perform the services described in paragraph 
        (1); or
          (3) advertises any of the services described in 
        paragraph (1) or solicits clients in printed 
        publications, direct mail, television or radio 
        advertisements, telephone calls, facsimile 
        transmissions, or other electronic communications 
        directed to the general public for purposes of 
        providing any such services.

           *       *       *       *       *       *       *


TITLE XIV--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

           *       *       *       *       *       *       *


Subtitle D--Office of Housing Counseling

           *       *       *       *       *       *       *


SEC. 1447. DEFAULT AND FORECLOSURE DATABASE.

  (a) Establishment.--The Secretary of Housing and Urban 
Development and the [Director of the Bureau] Financial Product 
Safety Commission, in consultation with the Federal agencies 
responsible for regulation of banking and financial 
institutions involved in residential mortgage lending and 
servicing, shall establish and maintain a database of 
information on foreclosures and defaults on mortgage loans for 
one- to four-unit residential properties and shall make such 
information publicly available, subject to subsection (e).
  (b) Census Tract Data.--Information in the database may be 
collected, aggregated, and made available on a census tract 
basis.
  (c) Requirements.--Information collected and made available 
through the database shall include--
          (1) the number and percentage of such mortgage loans 
        that are delinquent by more than 30 days;
          (2) the number and percentage of such mortgage loans 
        that are delinquent by more than 90 days;
          (3) the number and percentage of such properties that 
        are real estate-owned;
          (4) number and percentage of such mortgage loans that 
        are in the foreclosure process;
          (5) the number and percentage of such mortgage loans 
        that have an outstanding principal obligation amount 
        that is greater than the value of the property for 
        which the loan was made; and
          (6) such other information as the Secretary of 
        Housing and Urban Development and the [Director of the 
        Bureau] Financial Product Safety Commission consider 
        appropriate.
  (d) Rule of Construction.--Nothing in this section shall be 
construed to encourage discriminatory or unsound allocation of 
credit or lending policies or practices.
  (e) Privacy and Confidentiality.--In establishing and 
maintaining the database described in subsection (a), the 
Secretary of Housing and Urban Development and the [Director of 
the Bureau] Financial Product Safety Commission shall--
          (1) be subject to the standards applicable to Federal 
        agencies for the protection of the confidentiality of 
        personally identifiable information and for data 
        security and integrity;
          (2) implement the necessary measures to conform to 
        the standards for data integrity and security described 
        in paragraph (1); and
          (3) collect and make available information under this 
        section, in accordance with paragraphs (5) and (6) of 
        section 1022(c) and the rules prescribed under such 
        paragraphs, in order to protect privacy and 
        confidentiality.

           *       *       *       *       *       *       *

                              ----------                              


FEDERAL RESERVE ACT

           *       *       *       *       *       *       *


                         division of earnings.

  Sec. 7. (a) Dividends and Surplus Funds of Reserve Banks.--
          (1) Stockholder dividends.--
                  (A) In general.--After all necessary expenses 
                of a Federal reserve bank have been paid or 
                provided for, the stockholders of the bank 
                shall be entitled to receive an annual dividend 
                of 6 percent on paid-in capital stock.
                  (B) Dividend cumulative.--The entitlement to 
                dividends under subparagraph (A) shall be 
                cumulative.
          (2) Deposit of net earnings in surplus fund.--That 
        portion of net earnings of each Federal reserve bank 
        which remains after dividend claims under paragraph 
        (1)(A) have been fully met shall be deposited in the 
        surplus fund of the bank.
  (b) Transfer For Fiscal Year 2000.--
          (1) In general.--The Federal reserve banks shall 
        transfer from the surplus funds of such banks to the 
        Board of Governors of the Federal Reserve System for 
        transfer to the Secretary of the Treasury for deposit 
        in the general fund of the Treasury, a total amount of 
        $3,752,000,000 in fiscal year 2000.
          (2) Allocated by fed.--Of the total amount required 
        to be paid by the Federal reserve banks under paragraph 
        (1) for fiscal year 2000, the Board shall determine the 
        amount each such bank shall pay in such fiscal year.
          (3) Replenishment of surplus fund prohibited.--During 
        fiscal year 2000, no Federal reserve bank may replenish 
        such bank's surplus fund by the amount of any transfer 
        by such bank under paragraph (1).
  (b) Use of Earnings Transferred to the Treasury.--The net 
earnings derived by the United States from Federal reserve 
banks shall, in the discretion of the Secretary, be used to 
supplement the gold reserve held against outstanding United 
States notes, or shall be applied to the reduction of the 
outstanding bonded indebtedness of the United States under 
regulations to be prescribed by the Secretary of the Treasury. 
Should a Federal reserve bank be dissolved or go into 
liquidation, any surplus remaining, after the payment of all 
debts, dividend requirements as hereinbefore provided, and the 
par value of the stock, shall be paid to and become the 
property of the United States and shall be similarly applied.
  (c) Exemption From Taxation.--Federal reserve banks, 
including the capital stock and surplus therein, and the income 
derived therefrom shall be exempt from Federal, State, and 
local taxation, except taxes upon real estate.
  (d) Transfer for Fiscal Year 2016.--
          (1) In general.--The Federal reserve banks shall 
        transfer from the surplus funds of such banks to the 
        Board of Governors of the Federal Reserve System for 
        transfer to the Secretary of the Treasury for deposit 
        in the general fund of the Treasury, a total amount of 
        $75,000,000 in fiscal year 2016.
          (2) Allocated by fed.--Of the total amount required 
        to be paid by the Federal reserve banks under paragraph 
        (1) for fiscal year 2016, the Board of Governors of the 
        Federal Reserve System shall determine the amount each 
        such bank shall pay in such fiscal year.
          (3) Replenishment of surplus fund prohibited.--During 
        fiscal years 2016 through 2026, no Federal reserve bank 
        may replenish such bank's surplus fund by the amount of 
        any transfer by such bank under paragraph (1).

           *       *       *       *       *       *       *

                              ----------                              


SECTION 920 OF THE ELECTRONIC FUND TRANSFER ACT

           *       *       *       *       *       *       *


SEC. 920. REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS.

  (a) Reasonable Interchange Transaction Fees for Electronic 
Debit Transactions.--
          (1) Regulatory authority over interchange transaction 
        fees.--The Board may prescribe regulations, pursuant to 
        section 553 of title 5, United States Code, regarding 
        any interchange transaction fee that an issuer may 
        receive or charge with respect to an electronic debit 
        transaction, to implement this subsection (including 
        related definitions), and to prevent circumvention or 
        evasion of this subsection.
          (2) Reasonable interchange transaction fees.--The 
        amount of any interchange transaction fee that an 
        issuer may receive or charge with respect to an 
        electronic debit transaction shall be reasonable and 
        proportional to the cost incurred by the issuer with 
        respect to the transaction.
          (3) Rulemaking required.--
                  (A) In general.--The Board shall prescribe 
                regulations in final form not later than 9 
                months after the date of enactment of the 
                Consumer Financial Protection Act of 2010, to 
                establish standards for assessing whether the 
                amount of any interchange transaction fee 
                described in paragraph (2) is reasonable and 
                proportional to the cost incurred by the issuer 
                with respect to the transaction.
                  (B) Information collection.--The Board may 
                require any issuer (or agent of an issuer) or 
                payment card network to provide the Board with 
                such information as may be necessary to carry 
                out the provisions of this subsection and the 
                Board, in issuing rules under subparagraph (A) 
                and on at least a bi-annual basis thereafter, 
                shall disclose such aggregate or summary 
                information concerning the costs incurred, and 
                interchange transaction fees charged or 
                received, by issuers or payment card networks 
                in connection with the authorization, clearance 
                or settlement of electronic debit transactions 
                as the Board considers appropriate and in the 
                public interest.
          (4) Considerations; consultation.--In prescribing 
        regulations under paragraph (3)(A), the Board shall--
                  (A) consider the functional similarity 
                between--
                          (i) electronic debit transactions; 
                        and
                          (ii) checking transactions that are 
                        required within the Federal Reserve 
                        bank system to clear at par;
                  (B) distinguish between--
                          (i) the incremental cost incurred by 
                        an issuer for the role of the issuer in 
                        the authorization, clearance, or 
                        settlement of a particular electronic 
                        debit transaction, which cost shall be 
                        considered under paragraph (2); and
                          (ii) other costs incurred by an 
                        issuer which are not specific to a 
                        particular electronic debit 
                        transaction, which costs shall not be 
                        considered under paragraph (2); and
                  (C) consult, as appropriate, with the 
                Comptroller of the Currency, the Board of 
                Directors of the Federal Deposit Insurance 
                Corporation, the Director of the Office of 
                Thrift Supervision, the National Credit Union 
                Administration Board, the Administrator of the 
                Small Business Administration, and the[Director 
                of the Bureau of Consumer Financial Protection] 
                Financial Product Safety Commission.
          (5) Adjustments to interchange transaction fees for 
        fraud prevention costs.--
                  (A) Adjustments.--The Board may allow for an 
                adjustment to the fee amount received or 
                charged by an issuer under paragraph (2), if--
                          (i) such adjustment is reasonably 
                        necessary to make allowance for costs 
                        incurred by the issuer in preventing 
                        fraud in relation to electronic debit 
                        transactions involving that issuer; and
                          (ii) the issuer complies with the 
                        fraud-related standards established by 
                        the Board under subparagraph (B), which 
                        standards shall--
                                  (I) be designed to ensure 
                                that any fraud-related 
                                adjustment of the issuer is 
                                limited to the amount described 
                                in clause (i) and takes into 
                                account any fraud-related 
                                reimbursements (including 
                                amounts from charge-backs) 
                                received from consumers, 
                                merchants, or payment card 
                                networks in relation to 
                                electronic debit transactions 
                                involving the issuer; and
                                  (II) require issuers to take 
                                effective steps to reduce the 
                                occurrence of, and costs from, 
                                fraud in relation to electronic 
                                debit transactions, including 
                                through the development and 
                                implementation of cost-
                                effective fraud prevention 
                                technology.
                  (B) Rulemaking required.--
                          (i) In general.--The Board shall 
                        prescribe regulations in final form not 
                        later than 9 months after the date of 
                        enactment of the Consumer Financial 
                        Protection Act of 2010, to establish 
                        standards for making adjustments under 
                        this paragraph.
                          (ii) Factors for consideration.--In 
                        issuing the standards and prescribing 
                        regulations under this paragraph, the 
                        Board shall consider--
                                  (I) the nature, type, and 
                                occurrence of fraud in 
                                electronic debit transactions;
                                  (II) the extent to which the 
                                occurrence of fraud depends on 
                                whether authorization in an 
                                electronic debit transaction is 
                                based on signature, PIN, or 
                                other means;
                                  (III) the available and 
                                economical means by which fraud 
                                on electronic debit 
                                transactions may be reduced;
                                  (IV) the fraud prevention and 
                                data security costs expended by 
                                each party involved in 
                                electronic debit transactions 
                                (including consumers, persons 
                                who accept debit cards as a 
                                form of payment, financial 
                                institutions, retailers and 
                                payment card networks);
                                  (V) the costs of fraudulent 
                                transactions absorbed by each 
                                party involved in such 
                                transactions (including 
                                consumers, persons who accept 
                                debit cards as a form of 
                                payment, financial 
                                institutions, retailers and 
                                payment card networks);
                                  (VI) the extent to which 
                                interchange transaction fees 
                                have in the past reduced or 
                                increased incentives for 
                                parties involved in electronic 
                                debit transactions to reduce 
                                fraud on such transactions; and
                                  (VII) such other factors as 
                                the Board considers 
                                appropriate.
          (6) Exemption for small issuers.--
                  (A) In general.--This subsection shall not 
                apply to any issuer that, together with its 
                affiliates, has assets of less than 
                $10,000,000,000, and the Board shall exempt 
                such issuers from regulations prescribed under 
                paragraph (3)(A).
                  (B) Definition.--For purposes of this 
                paragraph, the term ``issuer'' shall be limited 
                to the person holding the asset account that is 
                debited through an electronic debit 
                transaction.
          (7) Exemption for government-administered payment 
        programs and reloadable prepaid cards.--
                  (A) In general.--This subsection shall not 
                apply to an interchange transaction fee charged 
                or received with respect to an electronic debit 
                transaction in which a person uses--
                          (i) a debit card or general-use 
                        prepaid card that has been provided to 
                        a person pursuant to a Federal, State 
                        or local government-administered 
                        payment program, in which the person 
                        may only use the debit card or general-
                        use prepaid card to transfer or debit 
                        funds, monetary value, or other assets 
                        that have been provided pursuant to 
                        such program; or
                          (ii) a plastic card, payment code, or 
                        device that is--
                                  (I) linked to funds, monetary 
                                value, or assets which are 
                                purchased or loaded on a 
                                prepaid basis;
                                  (II) not issued or approved 
                                for use to access or debit any 
                                account held by or for the 
                                benefit of the card holder 
                                (other than a subaccount or 
                                other method of recording or 
                                tracking funds purchased or 
                                loaded on the card on a prepaid 
                                basis);
                                  (III) redeemable at multiple, 
                                unaffiliated merchants or 
                                service providers, or automated 
                                teller machines;
                                  (IV) used to transfer or 
                                debit funds, monetary value, or 
                                other assets; and
                                  (V) reloadable and not 
                                marketed or labeled as a gift 
                                card or gift certificate.
                  (B) Exception.--Notwithstanding subparagraph 
                (A), after the end of the 1-year period 
                beginning on the effective date provided in 
                paragraph (9), this subsection shall apply to 
                an interchange transaction fee charged or 
                received with respect to an electronic debit 
                transaction described in subparagraph (A)(i) in 
                which a person uses a general-use prepaid card, 
                or an electronic debit transaction described in 
                subparagraph (A)(ii), if any of the following 
                fees may be charged to a person with respect to 
                the card:
                          (i) A fee for an overdraft, including 
                        a shortage of funds or a transaction 
                        processed for an amount exceeding the 
                        account balance.
                          (ii) A fee imposed by the issuer for 
                        the first withdrawal per month from an 
                        automated teller machine that is part 
                        of the issuer's designated automated 
                        teller machine network.
                  (C) Definition.--For purposes of subparagraph 
                (B), the term ``designated automated teller 
                machine network'' means either--
                          (i) all automated teller machines 
                        identified in the name of the issuer; 
                        or
                          (ii) any network of automated teller 
                        machines identified by the issuer that 
                        provides reasonable and convenient 
                        access to the issuer's customers.
                  (D) Reporting.--Beginning 12 months after the 
                date of enactment of the Consumer Financial 
                Protection Act of 2010, the Board shall 
                annually provide a report to the Congress 
                regarding --
                          (i) the prevalence of the use of 
                        general-use prepaid cards in Federal, 
                        State or local government-administered 
                        payment programs; and
                          (ii) the interchange transaction fees 
                        and cardholder fees charged with 
                        respect to the use of such general-use 
                        prepaid cards.
          (8) Regulatory authority over network fees.--
                  (A) In general.--The Board may prescribe 
                regulations, pursuant to section 553 of title 
                5, United States Code, regarding any network 
                fee.
                  (B) Limitation.--The authority under 
                subparagraph (A) to prescribe regulations shall 
                be limited to regulations to ensure that--
                          (i) a network fee is not used to 
                        directly or indirectly compensate an 
                        issuer with respect to an electronic 
                        debit transaction; and
                          (ii) a network fee is not used to 
                        circumvent or evade the restrictions of 
                        this subsection and regulations 
                        prescribed under such subsection.
                  (C) Rulemaking required.--The Board shall 
                prescribe regulations in final form before the 
                end of the 9-month period beginning on the date 
                of the enactment of the Consumer Financial 
                Protection Act of 2010, to carry out the 
                authorities provided under subparagraph (A).
          (9) Effective date.--This subsection shall take 
        effect at the end of the 12-month period beginning on 
        the date of the enactment of the Consumer Financial 
        Protection Act of 2010.
  (b) Limitation on Payment Card Network Restrictions.--
          (1) Prohibitions against exclusivity arrangements.--
                  (A) No exclusive network.--The Board shall, 
                before the end of the 1-year period beginning 
                on the date of the enactment of the Consumer 
                Financial Protection Act of 2010, prescribe 
                regulations providing that an issuer or payment 
                card network shall not directly or through any 
                agent, processor, or licensed member of a 
                payment card network, by contract, requirement, 
                condition, penalty, or otherwise, restrict the 
                number of payment card networks on which an 
                electronic debit transaction may be processed 
                to--
                          (i) 1 such network; or
                          (ii) 2 or more such networks which 
                        are owned, controlled, or otherwise 
                        operated by --
                                  (I) affiliated persons; or
                                  (II) networks affiliated with 
                                such issuer.
                  (B) No routing restrictions.--The Board 
                shall, before the end of the 1-year period 
                beginning on the date of the enactment of the 
                Consumer Financial Protection Act of 2010, 
                prescribe regulations providing that an issuer 
                or payment card network shall not, directly or 
                through any agent, processor, or licensed 
                member of the network, by contract, 
                requirement, condition, penalty, or otherwise, 
                inhibit the ability of any person who accepts 
                debit cards for payments to direct the routing 
                of electronic debit transactions for processing 
                over any payment card network that may process 
                such transactions.
          (2) Limitation on restrictions on offering discounts 
        for use of a form of payment.--
                  (A) In general.--A payment card network shall 
                not, directly or through any agent, processor, 
                or licensed member of the network, by contract, 
                requirement, condition, penalty, or otherwise, 
                inhibit the ability of any person to provide a 
                discount or in-kind incentive for payment by 
                the use of cash, checks, debit cards, or credit 
                cards to the extent that--
                          (i) in the case of a discount or in-
                        kind incentive for payment by the use 
                        of debit cards, the discount or in-kind 
                        incentive does not differentiate on the 
                        basis of the issuer or the payment card 
                        network;
                          (ii) in the case of a discount or in-
                        kind incentive for payment by the use 
                        of credit cards, the discount or in-
                        kind incentive does not differentiate 
                        on the basis of the issuer or the 
                        payment card network; and
                          (iii) to the extent required by 
                        Federal law and applicable State law, 
                        such discount or in-kind incentive is 
                        offered to all prospective buyers and 
                        disclosed clearly and conspicuously.
                  (B) Lawful discounts.--For purposes of this 
                paragraph, the network may not penalize any 
                person for the providing of a discount that is 
                in compliance with Federal law and applicable 
                State law.
          (3) Limitation on restrictions on setting transaction 
        minimums or maximums.--
                  (A) In general.--A payment card network shall 
                not, directly or through any agent, processor, 
                or licensed member of the network, by contract, 
                requirement, condition, penalty, or otherwise, 
                inhibit the ability--
                          (i) of any person to set a minimum 
                        dollar value for the acceptance by that 
                        person of credit cards, to the extent 
                        that --
                                  (I) such minimum dollar value 
                                does not differentiate between 
                                issuers or between payment card 
                                networks; and
                                  (II) such minimum dollar 
                                value does not exceed $10.00; 
                                or
                          (ii) of any Federal agency or 
                        institution of higher education to set 
                        a maximum dollar value for the 
                        acceptance by that Federal agency or 
                        institution of higher education of 
                        credit cards, to the extent that such 
                        maximum dollar value does not 
                        differentiate between issuers or 
                        between payment card networks.
                  (B) Increase in minimum dollar amount.--The 
                Board may, by regulation prescribed pursuant to 
                section 553 of title 5, United States Code, 
                increase the amount of the dollar value listed 
                in subparagraph (A)(i)(II).
          (4) Rule of construction:.--No provision of this 
        subsection shall be construed to authorize any person--
                  (A) to discriminate between debit cards 
                within a payment card network on the basis of 
                the issuer that issued the debit card; or
                  (B) to discriminate between credit cards 
                within a payment card network on the basis of 
                the issuer that issued the credit card.
  (c) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Affiliate.--The term ``affiliate'' means any 
        company that controls, is controlled by, or is under 
        common control with another company.
          (2) Debit card.--The term ``debit card''--
                  (A) means any card, or other payment code or 
                device, issued or approved for use through a 
                payment card network to debit an asset account 
                (regardless of the purpose for which the 
                account is established), whether authorization 
                is based on signature, PIN, or other means;
                  (B) includes a general-use prepaid card, as 
                that term is defined in section 915(a)(2)(A); 
                and
                  (C) does not include paper checks.
          (3) Credit card.--The term ``credit card'' has the 
        same meaning as in section 103 of the Truth in Lending 
        Act.
          (4) Discount.--The term ``discount''--
                  (A) means a reduction made from the price 
                that customers are informed is the regular 
                price; and
                  (B) does not include any means of increasing 
                the price that customers are informed is the 
                regular price.
          (5) Electronic debit transaction.--The term 
        ``electronic debit transaction'' means a transaction in 
        which a person uses a debit card.
          (6) Federal agency.--The term ``Federal agency'' 
        means--
                  (A) an agency (as defined in section 101 of 
                title 31, United States Code); and
                  (B) a Government corporation (as defined in 
                section 103 of title 5, United States Code).
          (7) Institution of higher education.--The term 
        ``institution of higher education'' has the same 
        meaning as in 101 and 102 of the Higher Education Act 
        of 1965 (20 U.S.C. 1001, 1002).
          (8) Interchange transaction fee.--The term 
        ``interchange transaction fee'' means any fee 
        established, charged or received by a payment card 
        network for the purpose of compensating an issuer for 
        its involvement in an electronic debit transaction.
          (9) Issuer.--The term ``issuer'' means any person who 
        issues a debit card, or credit card, or the agent of 
        such person with respect to such card.
          (10) Network fee.--The term ``network fee'' means any 
        fee charged and received by a payment card network with 
        respect to an electronic debit transaction, other than 
        an interchange transaction fee.
          (11) Payment card network.--The term ``payment card 
        network'' means an entity that directly, or through 
        licensed members, processors, or agents, provides the 
        proprietary services, infrastructure, and software that 
        route information and data to conduct debit card or 
        credit card transaction authorization, clearance, and 
        settlement, and that a person uses in order to accept 
        as a form of payment a brand of debit card, credit card 
        or other device that may be used to carry out debit or 
        credit transactions.
  (d) Enforcement.--
          (1) In general.--Compliance with the requirements 
        imposed under this section shall be enforced under 
        section 918.
          (2) Exception.--Sections 916 and 917 shall not apply 
        with respect to this section or the requirements 
        imposed pursuant to this section.
                              ----------                              


                    EXPEDITED FUNDS AVAILABILITY ACT

                 TITLE VI--EXPEDITED FUNDS AVAILABILITY

SEC. 601. SHORT TITLE.

  This title may be cited as the ``Expedited Funds Availability 
Act''.

           *       *       *       *       *       *       *


SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES.

  (a) Next Business Day Availability For Certain Deposits.--
          (1) Cash deposits; wire transfers.--Except as 
        provided in subsection (e) and in section 604, in any 
        case in which--
                  (A) any cash is deposited in an account at a 
                receiving depository institution staffed by 
                individuals employed by such institution, or
                  (B) funds are received by a depository 
                institution by wire transfer for deposit in an 
                account at such institution,
        such cash or funds shall be available for withdrawal 
        not later than the business day after the business day 
        on which such cash is deposited or such funds are 
        received for deposit.
          (2) Government checks; certain other checks.--Funds 
        deposited in an account at a depository institution by 
        check shall be available for withdrawal not later than 
        the business day after the business day on which such 
        funds are deposited in the case of--
                  (A) a check which--
                          (i) is drawn on the Treasury of the 
                        United States; and
                          (ii) is endorsed only by the person 
                        to whom it was issued.
                  (B) a check which--
                          (i) is drawn by a State;
                          (ii) is deposited in a receiving 
                        depository institution which is located 
                        in such State and is staffed by 
                        individuals employed by such 
                        institution;
                          (iii) is deposited with a special 
                        deposit slip which indicates it is a 
                        check drawn by a State; and
                          (iv) is endorsed only by the person 
                        to whom it was issued;
                  (C) a check which--
                          (i) is drawn by a unit of general 
                        local government;
                          (ii) is deposited in a receiving 
                        depository institution which is located 
                        in the same State as such unit of 
                        general local government and is staffed 
                        by individuals employed by such 
                        institution;
                          (iii) is deposited with a special 
                        deposit slip which indicates it is a 
                        check drawn by a unit of general local 
                        government; and
                          (iv) is endorsed only by the person 
                        to whom it was issued;
                  (D) the first $200 deposited by check or 
                checks on any one business day;
                  (E) a check deposited in a branch of a 
                depository institution and drawn on the same or 
                another branch of the same depository 
                institution if both such branches are located 
                in the same State or the same check processing 
                region;
                  (F) a cashier's check, certified check, 
                teller's check, or depository check which--
                          (i) is deposited in a receiving 
                        depository institution which is staffed 
                        by individuals employed by such 
                        institution;
                          (ii) is deposited with a special 
                        deposit slip which indicates it is a 
                        cashier's check, certified check, 
                        teller's check, or depository check, as 
                        the case may be; and
                          (iii) is endorsed only by the person 
                        to whom it was issued.
  (b) Permanent Schedule.--
          (1) Availability of funds deposited by local 
        checks.--Subject to paragraph (3) of this subsection, 
        subsections (a)(2), (d), and (e) of this section, and 
        section 604, not more than 1 business day shall 
        intervene between the business day on which funds are 
        deposited in an account at a depository institution by 
        a check drawn on a local originating depository 
        institution and the business day on which the funds 
        involved are available for withdrawal.
          (2) Availability of funds deposited by nonlocal 
        checks.--Subject to paragraph (3) of this subsection, 
        subsections (a)(2), (d), and (e) of this section, and 
        section 604, not more than 4 business days shall 
        intervene between the business day on which funds are 
        deposited in an account at a depository institution by 
        a check drawn on a nonlocal originating depository 
        institution and the business day on which such funds 
        are available for withdrawal.
          (3) Time period adjustments for cash withdrawal of 
        certain checks.--
                  (A) In general.--Except as provided in 
                subparagraph (B), funds deposited in an account 
                in a depository institution by check (other 
                than a check described in subsection (a)(2)) 
                shall be available for cash withdrawal not 
                later than the business day after the business 
                day on which such funds otherwise are available 
                under paragraph (1) or (2).
                  (B)  5 p.m. cash availability.--Not more than 
                $400 (or the maximum amount allowable in the 
                case of a withdrawal from an automated teller 
                machine but not more than $400) of funds 
                deposited by one or more checks to which this 
                paragraph applies shall be available for cash 
                withdrawal not later than 5 o'clock post 
                meridian of the business day on which such 
                funds are available under paragraph (1) or (2). 
                If funds deposited by checks described in both 
                paragraph (1) and paragraph (2) become 
                available for cash withdrawal under this 
                paragraph on the same business day, the 
                limitation contained in this subparagraph shall 
                apply to the aggregate amount of such funds.
                  (C)  $200 availability.--Any amount available 
                for withdrawal under this paragraph shall be in 
                addition to the amount available under 
                subsection (a)(2)(D).
          (4) Applicability.--This subsection shall apply with 
        respect to funds deposited by check in an account at a 
        depository institution on or after September 1, 1990, 
        except that the Board may, by regulation, make this 
        subsection or any part of this subsection applicable 
        earlier than September 1, 1990.
  (c) Temporary Schedule.--
          (1) Availability of local checks.--
                  (A) In general.--Subject to subparagraph (B) 
                of this paragraph, subsections (a)(2), (d), and 
                (e) of this section, and section 604, not more 
                than 2 business days shall intervene between 
                the business day on which funds are deposited 
                in an account at a depository institution by a 
                check drawn on a local originating depository 
                institution and the business day on which such 
                funds are available for withdrawal.
                  (B) Time period adjustment for cash 
                withdrawal of certain checks.--
                          (i) In general.--Except as provided 
                        in clause (ii), funds deposited in an 
                        account in a depository institution by 
                        check drawn on a local depository 
                        institution that is not a participant 
                        in the same check clearinghouse 
                        association as the receiving depository 
                        institution (other than a check 
                        described in subsection (a)(2)) shall 
                        be available for cash withdrawal not 
                        later than the business day after the 
                        business day on which such funds 
                        otherwise are available under 
                        subparagraph (A).
                          (ii)  5 p.m. cash availability.--Not 
                        more than $400 (or the maximum amount 
                        allowable in the case of a withdrawal 
                        from an automated teller machine but 
                        not more than $400) of funds deposited 
                        by one or more checks to which this 
                        subparagraph applies shall be available 
                        for cash withdrawal not later than 5 
                        o'clock post meridian of the business 
                        day on which such funds are available 
                        under subparagraph (A).
                  (iii)  $200 availability.--Any amount 
                available for withdrawal under this 
                subparagraph shall be in addition to the amount 
                available under subsection (a)(2)(D).
          (2) Availability of nonlocal checks.--Subject to 
        subsections (a)(2), (d), and (e) of this section and 
        section 604, not more than 6 business days shall 
        intervene between the business day on which funds are 
        deposited in an account at a depository institution by 
        a check drawn on a nonlocal originating depository 
        institution and the business day on which such funds 
        are available for withdrawal.
          (3) Applicability.--This subsection shall apply with 
        respect to funds deposited by check in an account at a 
        depository institution after August 31, 1988, and 
        before September 1, 1990, except as may be otherwise 
        provided under subsection (b)(4).
  (d) Time Period Adjustments.--
          (1) Reduction generally.--Notwithstanding any other 
        provision of law, the Board, jointly with the [Director 
        of the Bureau] Financial Product Safety Commission of 
        Consumer Financial Protection, shall, by regulation, 
        reduce the time periods established under subsections 
        (b), (c), and (e) to as short a time as possible and 
        equal to the period of time achievable under the 
        improved check clearing system for a receiving 
        depository institution to reasonably expect to learn of 
        the nonpayment of most items for each category of 
        checks.
          (2) Extension for certain deposits in noncontiguous 
        states or territories.--Notwithstanding any other 
        provision of law, any time period established under 
        subsection (b), (c), or (e) shall be extended by 1 
        business day in the case of any deposit which is both--
                  (A) deposited in an account at a depository 
                institution which is located in Alaska, Hawaii, 
                Puerto Rico, or the Virgin Islands; and
                  (B) deposited by a check drawn on an 
                originating depository institution which is not 
                located in the same State, commonwealth, or 
                territory as the receiving depository 
                institution.
  (e) Deposits at an ATM.--
          (1) Nonproprietary atm.--
                  (A) In general.--Not more than 4 business 
                days shall intervene between the business day a 
                deposit described in subparagraph (B) is made 
                at a nonproprietary automated teller machine 
                (for deposit in an account at a depository 
                institution) and the business day on which 
                funds from such deposit are available for 
                withdrawal.
                  (B) Deposits described in this paragraph.--A 
                deposit is described in this subparagraph if it 
                is--
                          (i) a cash deposit;
                          (ii) a deposit made by a check 
                        described in subsection (a)(2);
                          (iii) a deposit made by a check drawn 
                        on a local originating depository 
                        institution (other than a check 
                        described in subsection (a)(2)); or
                          (iv) a deposit made by a check drawn 
                        on a nonlocal originating depository 
                        institution (other than a check 
                        described in subsection (a)(2)).
          (2) Proprietary atm--temporary and permanent 
        schedules.--The provisions of subsections (a), (b), and 
        (c) shall apply with respect to any funds deposited at 
        a proprietary auto- mated teller machine for deposit in 
        an account at a depository institution.
          (3) Study and report on atm's.--The Board shall, 
        either directly or through the Consumer Advisory 
        Council, establish and maintain a dialogue with 
        depository institutions and their suppliers on the 
        computer software and hardware available for use by 
        automated teller machines, and shall, not later than 
        September 1 of each of the first 3 calendar years 
        beginning after the date of the enactment of this 
        title, report to the Congress regarding such software 
        and hardware and regarding the potential for improving 
        the processing of automated teller machine deposits.
  (f) Check Return; Notice of Nonpayment.--No provision of this 
section shall be construed as requiring that, with respect to 
all checks deposited in a receiving depository institution--
          (1) such checks be physically returned to such 
        depository institution; or
          (2) any notice of nonpayment of any such check be 
        given to such depository institution within the times 
        set forth in subsection (a), (b), (c), or (e) or in the 
        regulations issued under any such subsection.

SEC. 604. SAFEGUARD EXCEPTIONS.

  (a) New Accounts.--Notwithstanding section 603, in the case 
of any account established at a depository institution by a new 
depositor, the following provisions shall apply with respect to 
any deposit in such account during the 30-day period (or such 
shorter period as the Board, jointly with the [Director of the 
Bureau] Financial Product Safety Commission of Consumer 
Financial Protection, may establish) beginning on the date such 
account is established--
          (1) Next business day availability of cash and 
        certain items.--Except as provided in paragraph (3), in 
        the case of--
                  (A) any cash deposited in such account;
                  (B) any funds received by such depository 
                institution by wire transfer for deposit in 
                such account;
                  (C) any funds deposited in such account by 
                cashier's check, certified check, teller's 
                check, depository check, or traveler's check; 
                and
                  (D) any funds deposited by a government check 
                which is described in subparagraph (A), (B), or 
                (C) of section 603(a)(2),
        such cash or funds shall be available for withdrawal on 
        the business day after the business day on which such 
        cash or funds are deposited or, in the case of a wire 
        transfer, on the business day after the business day on 
        which such funds are received for deposit.
          (2) Availability of other items.--In the case of any 
        funds deposited in such account by a check (other than 
        a check described in subparagraph (C) or (D) of 
        paragraph (1)), the availability for withdrawal of such 
        funds shall not be subject to the provisions of section 
        603(b), 603(c), or paragraphs (1) of section 603(e).
          (3) Limitation relating to certain checks in excess 
        of $5,000.--In the case of funds deposited in such 
        account during such period by checks described in 
        subparagraph (C) or (D) of paragraph (1) the aggregate 
        amount of which exceeds $5,000--
                  (A) paragraph (1) shall apply only with 
                respect to the first $5,000 of such aggregate 
                amount; and
                  (B) not more than 8 business days shall 
                intervene between the business day on which any 
                such funds are deposited and the business day 
                on which such excess amount shall be available 
                for withdrawal.
  (b) Large or Redeposited Checks; Repeated Overdrafts.--The 
Board, jointly with the [Director of the Bureau] Financial 
Product Safety Commission of Consumer Financial Protection, 
may, by regulation, establish reasonable exceptions to any time 
limitation established under subsection (a)(2), (b), (c), or 
(e) of section 603 for--
          (1) the amount of deposits by one or more checks that 
        exceeds the amount of $5,000 in any one day;
          (2) checks that have been returned unpaid and 
        redeposited; and
          (3) deposit accounts which have been overdrawn 
        repeatedly.
  (c) Reasonable Cause Exception.--
          (1) In general.--In accordance with regulations which 
        the Board, jointly with the [Director of the Bureau] 
        Financial Product Safety Commission of Consumer 
        Financial Protection, shall prescribe, subsections 
        (a)(2), (b), (c), and (e) of section 603 shall not 
        apply with respect to any check deposited in an account 
        at a depository institution if the receiving depository 
        institution has reasonable cause to believe that the 
        check is uncollectible from the originating depository 
        institution. For purposes of the preceding sentence, 
        reasonable cause to believe requires the existence of 
        facts which would cause a well-grounded belief in the 
        mind of a reasonable person. Such reasons shall be 
        included in the notice required under sub- section (f).
          (2) Basis for determination.--No determination under 
        this subsection may be based on any class of checks or 
        persons.
          (3) Overdraft fees.--If the receiving depository 
        institution determines that a check deposited in an 
        account is a check described in paragraph (1), the 
        receiving depository institution shall not assess any 
        fee for any subsequent overdraft with respect to such 
        account, if--
                  (A) the depositor was not provided with the 
                written notice required under subsection (f) 
                (with respect to such determination) at the 
                time the deposit was made;
                  (B) the overdraft would not have occurred but 
                for the fact that the funds so deposited are 
                not available; and
                  (C) the amount of the check is collected from 
                the originating depository institution.
          (4) Compliance.--Each agency referred to in section 
        610(a) shall monitor compliance with the requirements 
        of this subsection in each regular examination of a 
        depository institution and shall describe in each 
        report to the Congress the extent to which this 
        subsection is being complied with. For the purpose of 
        this paragraph, each depository institution shall 
        retain a record of each notice provided under 
        subsection (f) as a result of the application of this 
        subsection.
  (d) Emergency Conditions.--Subject to such regulations as the 
Board, jointly with the [Director of the Bureau] Financial 
Product Safety Commission of Consumer Financial Protection, may 
prescribe, subsections (a)(2), (b), (c), and (e) of section 603 
shall not apply to funds deposited by check in any receiving 
depository institution in the case of--
          (1) any interruption of communication facilities;
          (2) suspension of payments by another depository 
        institution;
          (3) any war; or
          (4) any emergency condition beyond the control of the 
        receiving depository institution,
if the receiving depository institution exercises such 
diligence as the circumstances require.
  (e) Prevention of Fraud Losses.--
          (1) In general.--The Board, jointly with the 
        [Director of the Bureau] Financial Product Safety 
        Commission of Consumer Financial Protection, may, by 
        regulation or order, suspend the applicability of this 
        title, or any portion thereof, to any classification of 
        checks if the Board, jointly with the [Director of the 
        Bureau] Financial Product Safety Commission of Consumer 
        Financial Protection, determines that--
                  (A) depository institutions are experiencing 
                an unacceptable level of losses due to check-
                related fraud, and
                  (B) suspension of this title, or such portion 
                of this title, with regard to the 
                classification of checks involved in such fraud 
                is necessary to diminish the volume of such 
                fraud.
          (2) Sunset provision.--No regulation prescribed or 
        order issued under paragraph (1) shall remain in effect 
        for more than 45 days (excluding Saturdays, Sundays, 
        legal holidays, or any day either House of Congress is 
        not in session).
          (3) Report to congress.--
                  (A) Notice of each suspension.--Within 10 
                days of prescribing any regulation or issuing 
                any order under paragraph (1), the Board, 
                jointly with the [Director of the Bureau] 
                Financial Product Safety Commission of Consumer 
                Financial Protection, shall transmit a report 
                of such action to the Committee on Banking, 
                Finance and Urban Affairs of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate.
                  (B) Contents of report.--Each report under 
                subparagraph (A) shall contain--
                          (i) the specific reason for 
                        prescribing the regulation or issuing 
                        the order;
                          (ii) evidence considered by the 
                        Board, jointly with the [Director of 
                        the Bureau] Financial Product Safety 
                        Commission of Consumer Financial 
                        Protection, in making the determination 
                        under paragraph (1) with respect to 
                        such regulation or order; and
                          (iii) specific examples of the check-
                        related fraud giving rise to such 
                        regulation or order.
  (f) Notice of Exception; Availability Within Reasonable 
Time.--
          (1) In general.--If any exception contained in this 
        section (other than subsection (a)) applies with 
        respect to funds deposited in an account at a 
        depository institution--
                  (A) the depository institution shall provide 
                notice in the manner provided in paragraph (2) 
                of--
                          (i) the time period within which the 
                        funds shall be made available for 
                        withdrawal; and
                          (ii) the reason the exception was 
                        invoked; and
                  (B) except where other time periods are 
                specifically provided in this title, the 
                availability of the funds deposited shall be 
                governed by the policy of the receiving 
                depository institution, but shall not exceed a 
                reasonable period of time as determined by the 
                Board, jointly with the [Director of the 
                Bureau] Financial Product Safety Commission of 
                Consumer Financial Protection.
          (2) Time for notice.--The notice required under 
        paragraph (1)(A) with respect to a deposit to which an 
        exception contained in this section applies shall be 
        made by the time provided in the following 
        subparagraphs:
                  (A) In the case of a deposit made in person 
                by the depositor at the receiving depository 
                institution, the depository institution shall 
                immediately provide such notice in writing to 
                the depositor.
                  (B) In the case of any other deposit (other 
                than a deposit described in subparagraph (C)), 
                the receiving depository institution shall mail 
                the notice to the depositor not later than the 
                close of the next business day following the 
                business day on which the deposit is received.
                  (C) In the case of a deposit to which 
                subsection (d) or (e) applies, notice shall be 
                provided by the depository institution in 
                accordance with regulations of the Board, 
                jointly with the [Director of the Bureau] 
                Financial Product Safety Commission of Consumer 
                Financial Protection.
                  (D) In the case of a deposit to which 
                subsection (b)(1) or (b)(2) applies, the 
                depository institution may, for nonconsumer 
                accounts and other classes of accounts, as 
                defined by the Board, that generally have a 
                large number of such deposits, provide notice 
                at or before the time it first determines that 
                the subsection applies.
                  (E) In the case of a deposit to which 
                subsection (b)(3) applies, the depository 
                institution may, subject to regulations of the 
                Board, provide notice at the beginning of each 
                time period it determines that the subsection 
                applies. In addition to the requirements 
                contained in paragraph (1)(A), the notice shall 
                specify the time period for which the exception 
                will apply.
          (3) Subsequent determinations.--If the facts upon 
        which the determination of the applicability of an 
        exception contained in subsection (b) or (c) to any 
        deposit only become known to the receiving depository 
        institution after the time notice is required under 
        paragraph (2) with respect to such deposit, the 
        depository institution shall mail such notice to the 
        depositor as soon as practicable, but not later than 
        the first business day following the day such facts 
        become known to the depository institution.

SEC. 605. DISCLOSURE OF FUNDS AVAILABILITY 
                    POLICIES.

  (a) Notice for New Accounts.--Before an account is opened at 
a depository institution, the depository institution shall 
provide written notice to the potential customer of the 
specific policy of such depository institution with respect to 
when a customer may withdraw funds deposited into the 
customer's account.
  (b) Preprinted Deposit Slips.--All preprinted deposit slips 
that a depository institution furnishes to its customers shall 
contain a summary notice, as prescribed by the Board, jointly 
with the [Director of the Bureau] Financial Product Safety 
Commission of Consumer Financial Protection, in regulations, 
that deposited items may not be available for immediate 
withdrawal.
  (c) Mailing of Notice.--
          (1) First mailing after enactment.--In the first 
        regularly scheduled mailing to customers occurring 
        after the effective date of this section, but not more 
        than 60 days after such effective date, each depository 
        institution shall send a written notice containing the 
        specific policy of such depository institution with 
        respect to when a customer may withdraw funds deposited 
        into such customer's account, unless the depository 
        institution has provided a disclosure which meets the 
        requirements of this section before such effective 
        date.
          (2) Subsequent changes.--A depository institution 
        shall send a written notice to customers at least 30 
        days before implementing any change to the depository 
        institution's policy with respect to when customers may 
        withdraw funds deposited into consumer accounts, except 
        that any change which expedites the availability of 
        such funds shall be disclosed not later than 30 days 
        after implementation.
          (3) Upon request.--Upon the request of any person, a 
        depository institution shall provide or send such 
        person a written notice containing the specific policy 
        of such depository institution with respect to when a 
        customer may withdraw funds deposited into a customer's 
        account.
  (d) Posting of Notice.--
          (1) Specific notice at manned teller stations.--Each 
        depository institution shall post, in a conspicuous 
        place in each location where deposits are accepted by 
        individuals employed by such depository institution, a 
        specific notice which describes the time periods 
        applicable to the availability of funds deposited in a 
        consumer account.
          (2) General notice at automated teller machines.--In 
        the case of any automated teller machine at which any 
        funds are received for deposit in an account at any 
        depository institution, the Board, jointly with the 
        [Director of the Bureau] Financial Product Safety 
        Commission of Consumer Financial Protection, shall 
        prescribe, by regulations, that the owner or operator 
        of such automated teller machine shall post or provide 
        a general notice that funds deposited in such machine 
        may not be immediately available for withdrawal.
  (e) Notice of Interest Payment Policy.--If a depository 
institution described in section 606(b) begins the accrual of 
interest or dividends at a later date than the date described 
in section 606(a) with respect to all funds, including cash, 
deposited in an interest-bearing account at such depository 
institution, any notice required to be provided under 
subsections (a) and (c) shall contain a written description of 
the time at which such depository institution begins to accrue 
interest or dividends on such funds.
  (f) Model Disclosure Forms.--
          (1) Prepared by board and bureau.--The Board, jointly 
        with the [Director of the Bureau] Financial Product 
        Safety Commission of Consumer Financial Protection, 
        shall publish model disclosure forms and clauses for 
        common transactions to facilitate compliance with the 
        disclosure requirements of this section and to aid 
        customers by utilizing readily understandable language.
          (2) Use of forms to achieve compliance.--A depository 
        institution shall be deemed to be in compliance with 
        the requirements of this section if such institution--
                  (A) uses any appropriate model form or clause 
                as published by the Board, or
                  (B) uses any such model form or clause and 
                changes such form or clause by--
                          (i) deleting any information which is 
                        not required by this title; or
                          (ii) rearranging the format.
          (3) Voluntary use.--Nothing in this title requires 
        the use of any such model form or clause prescribed by 
        the Board, jointly with the [Director of the Bureau] 
        Financial Product Safety Commission of Consumer 
        Financial Protection, under this subsection.
          (4) Notice and comment.--Model disclosure forms and 
        clauses shall be adopted by the Board, jointly with the 
        [Director of the Bureau] Financial Product Safety 
        Commission of Consumer Financial Protection, only after 
        notice duly given in the Federal Register and an 
        opportunity for public comment in accordance with 
        section 553 of title 5, United States Code.

           *       *       *       *       *       *       *


SEC. 609. REGULATIONS AND REPORTS BY BOARD.

  (a) In General.--After notice and opportunity to submit 
comment in accordance with section 553(c) of title 5, United 
States Code, the Board, jointly with the [Director of the 
Bureau] Financial Product Safety Commission of Consumer 
Financial Protection, shall prescribe regulations--
          (1) to carry out the provisions of this title;
          (2) to prevent the circumvention or evasion of such 
        provisions; and
          (3) to facilitate compliance with such provisions.
  (b) Regulations Relating to Improvement of Check Processing 
System.--In order to improve the check processing system, the 
Board shall consider (among other proposals) requiring, by 
regulation, that--
          (1) depository institutions be charged based upon 
        notification that a check or similar instrument will be 
        presented for payment;
          (2) the Federal Reserve banks and depository 
        institutions provide for check truncation;
          (3) depository institutions be provided incentives to 
        return items promptly to the depository institution of 
        first deposit;
          (4) the Federal Reserve banks and depository 
        institutions take such actions as are necessary to 
        automate the process of returning unpaid checks,
          (5) each depository institution and Federal Reserve 
        bank--
                  (A) place its endorsement, and other 
                notations specified in regulations of the 
                Board, on checks in the positions specified in 
                such regulations; and
                  (B) take such actions as are necessary to--
                          (i) automate the process of reading 
                        endorsements; and
                          (ii) eliminate unnecessary 
                        endorsements;
          (6) within one business day after an originating 
        depository institution is presented a check (for more 
        than such minimum amount as the Board may prescribe)--
                  (A) such originating depository institution 
                determine whether it will pay such check; and
                  (B) if such originating depository 
                institution determines that it will not pay 
                such check, such originating depository 
                institution directly notify the receiving 
                depository institution of such determination;
          (7) regardless of where a check is cleared initially, 
        all returned checks be eligible to be returned through 
        the Federal Reserve System;
          (8) Federal Reserve banks and depository institutions 
        participate in the development and implementation of an 
        electronic clearinghouse process to the extent the 
        Board determines, pursuant to the study under 
        subsection (f), that such a process is feasible; and
          (9) originating depository institutions be permitted 
        to return unpaid checks directly to, and obtain 
        reimbursement for such checks directly from, the 
        receiving depository institution.
  (c) Regulatory Responsibility of Board for Payment System.--
          (1) Responsibility for payment system.--In order to 
        carry out the provisions of this title, the Board of 
        Governors of the Federal Reserve System shall have the 
        responsibility to regulate--
                  (A) any aspect of the payment system, 
                including the receipt, payment, collection, or 
                clearing of checks; and
                  (B) any related function of the payment 
                system with respect to checks.
          (2) Regulations.--The Board shall prescribe such 
        regulations as it may determine to be appropriate to 
        carry out its responsibility under paragraph (1).
  (d) Reports.--
          (1) Implementation progress reports.--
                  (A) Required reports.--The Board shall 
                transmit a report to both Houses of the 
                Congress not later than 18, 30, and 48 months 
                after the date of the enactment of this title.
                  (B) Contents of report.--Each such report 
                shall describe--
                          (i) the actions taken and progress 
                        made by the Board to implement the 
                        schedules established in section 603, 
                        and
                          (ii) the impact of this title on 
                        consumers and depository institutions.
          (2) Evaluation of temporary schedule report.--
                  (A) Report required.--The Board shall 
                transmit a report to both Houses of the 
                Congress not later than 2 years after the date 
                of the enactment of this title regarding the 
                effects the temporary schedule established 
                under section 603(c) have had on depository 
                institutions and the public.
                  (B) Contents of report.--Such report shall 
                also assess the potential impact the 
                implementation of the schedule established in 
                section 603(b) will have on depository 
                institutions and the public, including an 
                estimate of the risks to and losses of 
                depository institutions and the benefits to 
                consumers. Such report shall also contain such 
                recommendations for legislative or 
                administrative action as the Board may 
                determine to be necessary.
          (3) Comptroller general evaluation report.--Not later 
        than 6 months after section 603(b) takes effect, the 
        Comptroller General of the United States shall transmit 
        a report to the Congress evaluating the implementation 
        and administration of this title.
  (e) Consultations.--In prescribing regulations under 
subsections (a) and (b), the Board and the [Director of the 
Bureau] Financial Product Safety Commission of Consumer 
Financial Protection, in the case of subsection (a), and the 
Board, in the case of subsection (b), shall consult with the 
Comptroller of the Currency, the Board of Directors of the 
Federal Deposit Insurance Corporation, and the National Credit 
Union Administration Board.
  (f) Electronic Clearinghouse Study.--
          (1) Study required.--The Board shall study the 
        feasibility of modernizing and accelerating the check 
        payment system through the development of an electronic 
        clearinghouse process utilizing existing 
        telecommunications technology to avoid the necessity of 
        actual presentment of the paper instrument to a payor 
        institution before such institution is charged for the 
        item.
          (2) Consultation; factors to be studied.--In 
        connection with the study required under paragraph (1), 
        the Board shall--
                  (A) consult with appropriate experts in 
                telecommunications technology; and
                  (B) consider all practical and legal 
                impediments to the development of an electronic 
                clearinghouse process.
          (3) Report required.--The Board shall report its 
        conclusions to the Congress within 9 months of the date 
        of the enactment of this title.

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FEDERAL DEPOSIT INSURANCE ACT

           *       *       *       *       *       *       *


SEC. 2. MANAGEMENT.

  (a) Board of Directors.--
          (1) In general.--The management of the Corporation 
        shall be vested in a Board of Directors consisting of 5 
        members--
                  (A) 1 of whom shall be the Comptroller of the 
                Currency;
                  (B) 1 of whom shall be the [Director of the 
                Consumer Financial Protection Bureau] Chair of 
                the Financial Product Safety Commission; and
                  (C) 3 of whom shall be appointed by the 
                President, by and with the advice and consent 
                of the Senate, from among individuals who are 
                citizens of the United States, 1 of whom shall 
                have State bank supervisory experience.
          (2) Political affiliation.--After February 28, 1993, 
        not more than 3 of the members of the Board of 
        Directors may be members of the same political party.
  (b) Chairperson and Vice Chairperson.--
          (1) Chairperson.--1 of the appointed members shall be 
        designated by the President, by and with the advice and 
        consent of the Senate, to serve as Chairperson of the 
        Board of Directors for a term of 5 years.
          (2) Vice chairperson.--1 of the appointed members 
        shall be designated by the President, by and with the 
        advice and consent of the Senate, to serve as Vice 
        Chairperson of the Board of Directors.
          (3) Acting chairperson.--In the event of a vacancy in 
        the position of Chairperson of the Board of Directors 
        or during the absence or disability of the Chairperson, 
        the Vice Chairperson shall act as Chairperson.
  (c) Terms.--
          (1) Appointed members.--Each appointed member shall 
        be appointed for a term of 6 years.
          (2) Interim appointments.--Any member appointed to 
        fill a vacancy occurring before the expiration of the 
        term for which such member's predecessor was appointed 
        shall be appointed only for the remainder of such term.
          (3) Continuation of service.--The Chairperson, Vice 
        Chairperson, and each appointed member may continue to 
        serve after the expiration of the term of office to 
        which such member was appointed until a successor has 
        been appointed and qualified.
  (d) Vacancy.--
          (1) In general.--Any vacancy on the Board of 
        Directors shall be filled in the manner in which the 
        original appointment was made.
          (2) Acting officials may serve.--In the event of a 
        vacancy in the office of the Comptroller of the 
        Currency or the office of [Director of the Consumer 
        Financial Protection Bureau] Chair of the Financial 
        Product Safety Commission and pending the appointment 
        of a successor, or during the absence or disability of 
        the Comptroller of the Currency or the [Director of the 
        Consumer Financial Protection Bureau] Chair of the 
        Financial Product Safety Commission, the acting 
        Comptroller of the Currency or the acting [Director of 
        the Consumer Financial Protection Bureau] Chair of the 
        Financial Product Safety Commission, as the case may 
        be, shall be a member of the Board of Directors in the 
        place of the Comptroller or Director.
  (e) Ineligibility for Other Offices.--
          (1) Postservice restriction.--
                  (A) In general.--No member of the Board of 
                Directors may hold any office, position, or 
                employment in any insured depository 
                institution or any depository institution 
                holding company during--
                          (i) the time such member is in 
                        office; and
                          (ii) the 2-year period beginning on 
                        the date such member ceases to serve on 
                        the Board of Directors.
                  (B) Exception for members who serve full 
                term.--The limitation contained in subparagraph 
                (A)(ii) shall not apply to any member who has 
                ceased to serve on the Board of Directors after 
                serving the full term for which such member was 
                appointed.
          (2) Restriction during service.--No member of the 
        Board of Directors may--
                  (A) be an officer or director of any insured 
                depository institution, depository institution 
                holding company, Federal Reserve bank, or 
                Federal home loan bank; or
                  (B) hold stock in any insured depository 
                institution or depository institution holding 
                company.
          (3) Certification.--Upon taking office, each member 
        of the Board of Directors shall certify under oath that 
        such member has complied with this subsection and such 
        certification shall be filed with the secretary of the 
        Board of Directors.
  (f) Status of Employees.--
          (1) In general.--A director, member, officer, or 
        employee of the Corporation has no liability under the 
        Securities Act of 1933 with respect to any claim 
        arising out of or resulting from any act or omission by 
        such person within the scope of such person's 
        employment in connection with any transaction involving 
        the disposition of assets (or any interests in any 
        assets or any obligations backed by any assets) by the 
        Corporation. This subsection shall not be construed to 
        limit personal liability for criminal acts or 
        omissions, willful or malicious misconduct, acts or 
        omissions for private gain, or any other acts or 
        omissions outside the scope of such person's 
        employment.
          (2) Definition.--For purposes of this subsection, the 
        term ``employee of the Corporation'' includes any 
        employee of the Office of the Comptroller of the 
        Currency or of the Consumer Financial Protection Bureau 
        who serves as a deputy or assistant to a member of the 
        Board of Directors of the Corporation in connection 
        with activities of the Corporation.
          (3) Effect on other law.--This subsection does not 
        affect--
                  (A) any other immunities and protections that 
                may be available to such person under 
                applicable law with respect to such 
                transactions, or
                  (B) any other right or remedy against the 
                Corporation, against the United States under 
                applicable law, or against any person other 
                than a person described in paragraph (1) 
                participating in such transactions.
        This subsection shall not be construed to limit or 
        alter in any way the immunities that are available 
        under applicable law for Federal officials and 
        employees not described in this subsection.

           *       *       *       *       *       *       *

                              ----------                              


FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978

           *       *       *       *       *       *       *


TITLE X--FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

           *       *       *       *       *       *       *


                      establishment of the council

  Sec. 1004. (a) There is established the Financial 
Institutions Examination Council which shall consist of--
          (1) the Comptroller of the Currency,
          (2) the Chairman of the Board of Directors of the 
        Federal Deposit Insurance Corporation,
          (3) a Governor of the Board of Governors of the 
        Federal Reserve System designated by the Chairman of 
        the Board,
          (4) the [Director of the Consumer Financial 
        Protection Bureau] Chair of the Financial Product 
        Safety Commission,
          (5) the Chairman of the National Credit Union 
        Administration Board, and
          (6) the Chairman of the State Liaison Committee.
  (b) The members of the Council shall select the first 
chairman of the Council. Thereafter the chairmanship shall 
rotate among the members of the Council.
  (c) The term of the Chairman of the Council shall be two 
years.
  (d) The members of the Council may, from time to time, 
designate other officers or employees of their respective 
agencies to carry out their duties on the Council.
  (e) Each member of the Council shall serve without additional 
compensation but shall be entitled to reasonable expenses 
incurred in carrying out his official duties a such a member.

           *       *       *       *       *       *       *

                              ----------                              


  SECTION 513 OF THE FINANCIAL LITERACY AND EDUCATION IMPROVEMENT ACT

SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION

  (a) In General.--There is established a commission to be 
known as the ``Financial Literacy and Education Commission''.
  (b) Purpose.--The Commission shall serve to improve the 
financial literacy and education of persons in the United 
States through development of a national strategy to promote 
financial literacy and education.
  (c) Membership.--
          (1) Composition.--The Commission shall be composed 
        of--
                  (A) the Secretary of the Treasury;
                  (B) the respective head of each of the 
                Federal banking agencies (as defined in section 
                3 of the Federal Deposit Insurance Act), the 
                National Credit Union Administration, the 
                Securities and Exchange Commission, each of the 
                Departments of Education, Agriculture, Defense, 
                Health and Human Services, Housing and Urban 
                Development, Labor, and Veterans Affairs, the 
                Federal Trade Commission, the General Services 
                Administration, the Small Business 
                Administration, the Social Security 
                Administration, the Commodity Futures Trading 
                Commission, and the Office of Personnel 
                Management;
                  (C) the [Director] Chair of the Financial 
                Product Safety Commission of the Bureau of 
                Consumer Financial Protection; and
                  (D) at the discretion of the President, not 
                more than 5 individuals appointed by the 
                President from among the administrative heads 
                of any other Federal agencies, departments, or 
                other Federal Government entities, whom the 
                President determines to be engaged in a serious 
                effort to improve financial literacy and 
                education.
          (2) Alternates.--Each member of the Commission may 
        designate an alternate if the member is unable to 
        attend a meeting of the Commission. Such alternate 
        shall be an individual who exercises significant 
        decisionmaking authority.
  (d) Chairperson.--The Secretary of the Treasury shall serve 
as the Chairperson. The [Director] Chair of the Financial 
Product Safety Commission of the Bureau of Consumer Financial 
Protection shall serve as the Vice Chairman.
  (e) Meetings.--The Commission shall hold, at the call of the 
Chairperson, at least 1 meeting every 4 months. All such 
meetings shall be open to the public. The Commission may hold, 
at the call of the Chairperson, such other meetings as the 
Chairperson sees fit to carry out this title.
  (f) Quorum.--A majority of the members of the Commission 
shall constitute a quorum, but a lesser number of members may 
hold hearings.
  (g) Initial Meeting.--The Commission shall hold its first 
meeting not later than 60 days after the date of enactment of 
this Act.
                              ----------                              


                  HOME MORTGAGE DISCLOSURE ACT OF 1975

TITLE III--HOME MORTGAGE DISCLOSURE

           *       *       *       *       *       *       *


SEC. 307. COMPLIANCE IMPROVEMENT METHODS.

  (a) In General.--
          (1) Consultation required.--The [Director of the 
        Bureau of Consumer Financial Protection] Financial 
        Product Safety Commission, with the assistance of the 
        Secretary, the Director of the Bureau of the Census, 
        the Board of Governors of the Federal Reserve System, 
        the Federal Deposit Insurance Corporation, and such 
        other persons as the Bureau deems appropriate, shall 
        develop or assist in the improvement of, methods of 
        matching addresses and census tracts to facilitate 
        compliance by depository institutions in as economical 
        a manner as possible with the requirements of this 
        title.
          (2) Authorization of appropriations.--There are 
        authorized to be appropriated, such sums as may be 
        necessary to carry out this subsection.
          (3) Contracting authority.--The [Director of the 
        Bureau of Consumer Financial Protection] Financial 
        Product Safety Commission is authorized to utilize, 
        contract with, act through, or compensate any person or 
        agency in order to carry out this subsection.
  (b) Recommendations to Congress.--The [Director of the Bureau 
of Consumer Financial Protection] Financial Product Safety 
Commission shall recommend to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives, such 
additional legislation as the [Director of the Bureau of 
Consumer Financial Protection] Financial Product Safety 
Commission deems appropriate to carry out the purpose of this 
title.

           *       *       *       *       *       *       *

                              ----------                              


INTERSTATE LAND SALES FULL DISCLOSURE ACT

           *       *       *       *       *       *       *


TITLE XIV--INTERSTATE LAND SALES

           *       *       *       *       *       *       *


                              definitions

  Sec. 1402. For the purposes of this title, the term--
          [(1) ``Director'' means the Director of the Bureau of 
        Consumer Financial Protection;]
          (1) ``Chair'' means the Chair of the Financial 
        Product Safety Commission;
          (2) ``person'' means an individual, or an 
        unincorporated organization, partnership, association, 
        corporation, trust, or estate;
          (3) ``subdivision'' means any land which is located 
        in any State or in a foreign country and is divided or 
        is proposed to be divided into lots, whether contiguous 
        or not, for the purpose of sale or lease as part of a 
        common promotional plan;
          (4) ``common promotional plan'' means a plan, 
        undertaken by a single developer or a group of 
        developers acting in concert, to offer lots for sale or 
        lease; where such land is offered for sale by such a 
        developer or group of developers acting in concert, and 
        such land is contiguous or is known, designated, or 
        advertised as a common unit or by a common name, such 
        land shall be presumed, without regard to the number of 
        lots covered by each individual offering, as being 
        offered for sale or lease as part of a common 
        promotional plan;
          (5) ``developer'' means any person who, directly or 
        indirectly, sells or leases, or offers to sell or 
        lease, or advertises for sale or lease any lots in a 
        subdivision;
          (6) ``agent'' means any person who represents, or 
        acts for or on behalf of, a developer in selling or 
        leasing, or offering to sell or lease, any lot or lots 
        in a subdivision; but shall not include an attorney at 
        law whose representation or another person consists 
        solely of rendering legal services;
          (7) ``blanket encumbrance'' means a trust deed, 
        mortgage, judgment, or any other lien or encumbrance, 
        including an option or contract to sell or a trust 
        agreement, affecting a subdivision or affecting more 
        than one lot offered within a subdivision, except that 
        such term shall not include any lien or other 
        encumbrance arising as the result of the imposition of 
        any tax assessment by any public authority;
          (8) ``interstate commerce'' means trade or commerce 
        among the several states or between any foreign country 
        and any state;
          (9) ``State'' includes the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        and the territories and possessions of the United 
        States;
          (10) ``purchaser'' means an actual or prospective 
        purchaser or lessee of any lot in a subdivision;
          (11) ``offer'' includes any inducement, solicitation, 
        or attempt to encourage a person to acquire a lot in a 
        subdivision; and
          (12) ``Bureau'' means the Bureau of Consumer 
        Financial Protection.

           *       *       *       *       *       *       *


                             administration

  Sec. 1416. (a) The authority and responsibility for 
administering this title shall be in the [Director of the 
Bureau of Consumer Financial Protection] Chair who may delegate 
any of his functions, duties, and powers to employees of the 
Bureau of Consumer Financial Protection or to boards of such 
employees including functions, duties, and powers with respect 
to investigating, hearing, determining, ordering, or otherwise 
acting as to any work, business, or matter under this title. 
The persons to whom such delegations are made with respect to 
hearing functions, duties, and powers shall be appointed and 
shall serve in the Bureau in compliance with sections 3105, 
3344, 5372, and 7521 of title 5 of the United States Code. The 
Director shall by rule prescribed such rights of appeal from 
the decisions of his administrative law judges to other 
administrative law judges or to other officers in the Bureau, 
to boards of officers or to himself, as shall be apropriate and 
in accordance with law.
  (b) All hearings shall be public and appropriate records 
thereof shall be kept, and any order issued after such hearing 
shall be based on the record made in such hearing which shall 
be conducted in accordance with provisions of subchapter II of 
chapter 5, and chapter 7, of title 5, United States Code.
  (c) The Director shall conduct all actions with respect to 
rulemaking or adjudication under this title in accordance with 
the provisions of chapter 5 of title 5, United States Code. 
Notice shall be given of any adverse action or final 
disposition and such notice and the entry of any order shall be 
accompanied by a written statement of supporting facts and 
legal authority.

           *       *       *       *       *       *       *

                              ----------                              


REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974

           *       *       *       *       *       *       *


                    home buying information booklets

  Sec. 5. (a) Preparation and Distribution.--[The Director of 
the Bureau of Consumer Financial Protection (hereafter in this 
section referred to as the ``Director '')] The Financial 
Product Safety Commission shall prepare, at least once every 5 
years, a booklet to help consumers applying for federally 
related mortgage loans to understand the nature and costs of 
real estate settlement services. The [Director] Financial 
Product Safety Commission shall prepare the booklet in various 
languages and cultural styles, as the [Director] Financial 
Product Safety Commission determines to be appropriate, so that 
the booklet is understandable and accessible to homebuyers of 
different ethnic and cultural backgrounds. The [Director] 
Financial Product Safety Commission shall distribute such 
booklets to all lenders that make federally related mortgage 
loans. The [Director] Financial Product Safety Commission shall 
also distribute to such lenders lists, organized by location, 
of homeownership counselors certified under section 106(e) of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x(e)) for use in complying with the requirement under 
subsection (c) of this section.
  (b) Contents.--Each booklet shall be in such form and detail 
as the [Director] Financial Product Safety Commission shall 
prescribe and, in addition to such other information as the 
[Director] Financial Product Safety Commission may provide, 
shall include in plain and understandable language the 
following information:
          (1) A description and explanation of the nature and 
        purpose of the costs incident to a real estate 
        settlement or a federally related mortgage loan. The 
        description and explanation shall provide general 
        information about the mortgage process as well as 
        specific information concerning, at a minimum--
                  (A) balloon payments;
                  (B) prepayment penalties;
                  (C) the advantages of prepayment; and
                  (D) the trade-off between closing costs and 
                the interest rate over the life of the loan.
          (2) An explanation and sample of the uniform 
        settlement statement required by section 4.
          (3) A list and explanation of lending practices, 
        including those prohibited by the Truth in Lending Act 
        or other applicable Federal law, and of other unfair 
        practices and unreasonable or unnecessary charges to be 
        avoided by the prospective buyer with respect to a real 
        estate settlement.
          (4) A list and explanation of questions a consumer 
        obtaining a federally related mortgage loan should ask 
        regarding the loan, including whether the consumer will 
        have the ability to repay the loan, whether the 
        consumer sufficiently shopped for the loan, whether the 
        loan terms include prepayment penalties or balloon 
        payments, and whether the loan will benefit the 
        borrower.
          (5) An explanation of the right of rescission as to 
        certain transactions provided by sections 125 and 129 
        of the Truth in Lending Act.
          (6) A brief explanation of the nature of a variable 
        rate mortgage and a reference to the booklet entitled 
        ``Consumer Handbook on Adjustable Rate Mortgages'', 
        published by the [Director] Financial Product Safety 
        Commission, or to any suitable substitute of such 
        booklet that the [Director] Financial Product Safety 
        Commission may subsequently adopt pursuant to such 
        section.
          (7) A brief explanation of the nature of a home 
        equity line of credit and a reference to the pamphlet 
        required to be provided under section 127A of the Truth 
        in Lending Act.
          (8) Information about homeownership counseling 
        services made available pursuant to section 106(a)(4) 
        of the Housing and Urban Development Act of 1968 (12 
        U.S.C. 1701x(a)(4)), a recommendation that the consumer 
        use such services, and notification that a list of 
        certified providers of homeownership counseling in the 
        area, and their contact information, is available.
          (9) An explanation of the nature and purpose of 
        escrow accounts when used in connection with loans 
        secured by residential real estate and the requirements 
        under section 10 of this Act regarding such accounts.
          (10) An explanation of the choices available to 
        buyers of residential real estate in selecting persons 
        to provide necessary services incidental to a real 
        estate settlement.
          (11) An explanation of a consumer's responsibilities, 
        liabilities, and obligations in a mortgage transaction.
          (12) An explanation of the nature and purpose of real 
        estate appraisals, including the difference between an 
        appraisal and a home inspection.
          (13) Notice that the Office of Housing of the Bureau 
        of Consumer Financial Protection has made publicly 
        available a brochure regarding loan fraud and a World 
        Wide Web address and toll-free telephone number for 
        obtaining the brochure.
          (14) An explanation of flood insurance and the 
        availability of flood insurance under the National 
        Flood Insurance Program or from a private insurance 
        company, whether or not the real estate is located in 
        an area having special flood hazards, and the following 
        statement: ``Although you may not be required to 
        maintain flood insurance on all structures, you may 
        still wish to do so, and your mortgage lender may still 
        require you to do so to protect the collateral securing 
        the mortgage. If you choose to not maintain flood 
        insurance on a structure, and it floods, you are 
        responsible for all flood losses relating to that 
        structure.''.
The booklet prepared pursuant to this section shall take into 
consideration differences in real estate settlement procedures 
that may exist among the several States and territories of the 
United States and among separate political subdivisions within 
the same State and territory.
  (c) Each lender shall include with the booklet a good faith 
estimate of the amount or range of charges for specific 
settlement services the borrower is likely to incur in 
connection with the settlement as prescribed by the Bureau. 
Each lender shall also include with the booklet a reasonably 
complete or updated list of homeownership counselors who are 
certified pursuant to section 106(e) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701x(e)) and located in the 
area of the lender.
  (d) Each lender referred to in subsection (a) shall provide 
the booklet described in such subsection to each person from 
whom it receives or for whom it prepares a written application 
to borrow money to finance the purchase of residential real 
estate. The lender shall provide the booklet in the version 
that is most appropriate for the person receiving it. Such 
booklet shall be provided by delivering it or placing it in the 
mail not later than 3 business days after the lender receives 
the application, but no booklet need be provided if the lender 
denies the application for credit before the end of the 3-day 
period.
  (e) Booklets may be printed and distributed by lenders if 
their form and content are approved by the Bureau as meeting 
the requirements of subsection (b) of this section.

           *       *       *       *       *       *       *

                              ----------                              


                S.A.F.E. MORTGAGE LICENSING ACT OF 2008

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Housing and 
Economic Recovery Act of 2008''.

DIVISION A--HOUSING FINANCE REFORM

           *       *       *       *       *       *       *


                TITLE V--S.A.F.E. MORTGAGE LICENSING ACT

SEC. 1501. SHORT TITLE.

  This title may be cited as the ``Secure and Fair Enforcement 
for Mortgage Licensing Act of 2008'' or ``S.A.F.E. Mortgage 
Licensing Act of 2008''.

SEC. 1502. PURPOSES AND METHODS FOR ESTABLISHING A MORTGAGE LICENSING 
                    SYSTEM AND REGISTRY.

  In order to increase uniformity, reduce regulatory burden, 
enhance consumer protection, and reduce fraud, the States, 
through the Conference of State Bank Supervisors and the 
American Association of Residential Mortgage Regulators, are 
hereby encouraged to establish a Nationwide Mortgage Licensing 
System and Registry for the residential mortgage industry that 
accomplishes all of the following objectives:
          (1) Provides uniform license applications and 
        reporting requirements for State-licensed loan 
        originators.
          (2) Provides a comprehensive licensing and 
        supervisory database.
          (3) Aggregates and improves the flow of information 
        to and between regulators.
          (4) Provides increased accountability and tracking of 
        loan originators.
          (5) Streamlines the licensing process and reduces the 
        regulatory burden.
          (6) Enhances consumer protections and supports anti-
        fraud measures.
          (7) Provides consumers with easily accessible 
        information, offered at no charge, utilizing electronic 
        media, including the Internet, regarding the employment 
        history of, and publicly adjudicated disciplinary and 
        enforcement actions against, loan originators.
          (8) Establishes a means by which residential mortgage 
        loan originators would, to the greatest extent 
        possible, be required to act in the best interests of 
        the consumer.
          (9) Facilitates responsible behavior in the subprime 
        mortgage market place and provides comprehensive 
        training and examination requirements related to 
        subprime mortgage lending.
          (10) Facilitates the collection and disbursement of 
        consumer complaints on behalf of State and Federal 
        mortgage regulators.

SEC. 1503. DEFINITIONS.

  For purposes of this title, the following definitions shall 
apply:
          (1) Bureau.--The term ``Bureau'' means the Bureau of 
        Consumer Financial Protection.
          (2) Federal banking agency.--The term ``Federal 
        banking agency'' means the Board of Governors of the 
        Federal Reserve System, the Office of the Comptroller 
        of the Currency, the National Credit Union 
        Administration, and the Federal Deposit Insurance 
        Corporation.
          (3) Depository institution.--The term ``depository 
        institution'' has the same meaning as in section 3 of 
        the Federal Deposit Insurance Act, and includes any 
        credit union.
          (4) Loan originator.--
                  (A) In general.--The term ``loan 
                originator''--
                          (i) means an individual who--
                                  (I) takes a residential 
                                mortgage loan application; and
                                  (II) offers or negotiates 
                                terms of a residential mortgage 
                                loan for compensation or gain;
                          (ii) does not include any individual 
                        who is not otherwise described in 
                        clause (i) and who performs purely 
                        administrative or clerical tasks on 
                        behalf of a person who is described in 
                        any such clause;
                          (iii) does not include a person or 
                        entity that only performs real estate 
                        brokerage activities and is licensed or 
                        registered in accordance with 
                        applicable State law, unless the person 
                        or entity is compensated by a lender, a 
                        mortgage broker, or other loan 
                        originator or by any agent of such 
                        lender, mortgage broker, or other loan 
                        originator; and
                          (iv) does not include a person or 
                        entity solely involved in extensions of 
                        credit relating to timeshare plans, as 
                        that term is defined in section 
                        101(53D) of title 11, United States 
                        Code.
                  (B) Other definitions relating to loan 
                originator.--For purposes of this subsection, 
                an individual ``assists a consumer in obtaining 
                or applying to obtain a residential mortgage 
                loan'' by, among other things, advising on loan 
                terms (including rates, fees, other costs), 
                preparing loan packages, or collecting 
                information on behalf of the consumer with 
                regard to a residential mortgage loan.
                  (C) Administrative or clerical tasks.--The 
                term ``administrative or clerical tasks'' means 
                the receipt, collection, and distribution of 
                information common for the processing or 
                underwriting of a loan in the mortgage industry 
                and communication with a consumer to obtain 
                information necessary for the processing or 
                underwriting of a residential mortgage loan.
                  (D) Real estate brokerage activity defined.--
                The term ``real estate brokerage activity'' 
                means any activity that involves offering or 
                providing real estate brokerage services to the 
                public, including--
                          (i) acting as a real estate agent or 
                        real estate broker for a buyer, seller, 
                        lessor, or lessee of real property;
                          (ii) bringing together parties 
                        interested in the sale, purchase, 
                        lease, rental, or exchange of real 
                        property;
                          (iii) negotiating, on behalf of any 
                        party, any portion of a contract 
                        relating to the sale, purchase, lease, 
                        rental, or exchange of real property 
                        (other than in connection with 
                        providing financing with respect to any 
                        such transaction);
                          (iv) engaging in any activity for 
                        which a person engaged in the activity 
                        is required to be registered or 
                        licensed as a real estate agent or real 
                        estate broker under any applicable law; 
                        and
                          (v) offering to engage in any 
                        activity, or act in any capacity, 
                        described in clause (i), (ii), (iii), 
                        or (iv).
          (5) Loan processor or underwriter.--
                  (A) In general.--The term ``loan processor or 
                underwriter'' means an individual who performs 
                clerical or support duties at the direction of 
                and subject to the supervision and instruction 
                of--
                          (i) a State-licensed loan originator; 
                        or
                          (ii) a registered loan originator.
                  (B) Clerical or support duties.--For purposes 
                of subparagraph (A), the term ``clerical or 
                support duties'' may include--
                          (i) the receipt, collection, 
                        distribution, and analysis of 
                        information common for the processing 
                        or underwriting of a residential 
                        mortgage loan; and
                          (ii) communicating with a consumer to 
                        obtain the information necessary for 
                        the processing or underwriting of a 
                        loan, to the extent that such 
                        communication does not include offering 
                        or negotiating loan rates or terms, or 
                        counseling consumers about residential 
                        mortgage loan rates or terms.
          (6) Nationwide mortgage licensing system and 
        registry.--The term ``Nationwide Mortgage Licensing 
        System and Registry'' means a mortgage licensing system 
        developed and maintained by the Conference of State 
        Bank Supervisors and the American Association of 
        Residential Mortgage Regulators for the State licensing 
        and registration of State-licensed loan originators and 
        the registration of registered loan originators or any 
        system established by the [Director] Financial Product 
        Safety Commission under section 1509.
          (7) Nontraditional mortgage product.--The term 
        ``nontraditional mortgage product'' means any mortgage 
        product other than a 30-year fixed rate mortgage.
          (8) Registered loan originator.--The term 
        ``registered loan originator'' means any individual 
        who--
                  (A) meets the definition of loan originator 
                and is an employee of--
                          (i) a depository institution;
                          (ii) a subsidiary that is--
                                  (I) owned and controlled by a 
                                depository institution; and
                                  (II) regulated by a Federal 
                                banking agency; or
                          (iii) an institution regulated by the 
                        Farm Credit Administration; and
                  (B) is registered with, and maintains a 
                unique identifier through, the Nationwide 
                Mortgage Licensing System and Registry.
          (9) Residential mortgage loan.--The term 
        ``residential mortgage loan'' means any loan primarily 
        for personal, family, or household use that is secured 
        by a mortgage, deed of trust, or other equivalent 
        consensual security interest on a dwelling (as defined 
        in section 103(v) of the Truth in Lending Act) or 
        residential real estate upon which is constructed or 
        intended to be constructed a dwelling (as so defined).
          [(10) Director.--The term ``Director'' means the 
        Director of the Bureau of Consumer Financial 
        Protection.]
          (11) State.--The term ``State'' means any State of 
        the United States, the District of Columbia, any 
        territory of the United States, Puerto Rico, Guam, 
        American Samoa, the Trust Territory of the Pacific 
        Islands, the Virgin Islands, and the Northern Mariana 
        Islands.
          (12) State-licensed loan originator.--The term 
        ``State-licensed loan originator'' means any individual 
        who--
                  (A) is a loan originator;
                  (B) is not an employee of--
                          (i) a depository institution;
                          (ii) a subsidiary that is--
                                  (I) owned and controlled by a 
                                depository institution; and
                                  (II) regulated by a Federal 
                                banking agency; or
                          (iii) an institution regulated by the 
                        Farm Credit Administration; and
                  (C) is licensed by a State or by the 
                [Director] Financial Product Safety Commission 
                under section 1508 and registered as a loan 
                originator with, and maintains a unique 
                identifier through, the Nationwide Mortgage 
                Licensing System and Registry.
          (13) Unique identifier.--
                  (A) In general.--The term ``unique 
                identifier'' means a number or other identifier 
                that--
                          (i) permanently identifies a loan 
                        originator;
                          (ii) is assigned by protocols 
                        established by the Nationwide Mortgage 
                        Licensing System and Registry and the 
                        Bureau to facilitate electronic 
                        tracking of loan originators and 
                        uniform identification of, and public 
                        access to, the employment history of 
                        and the publicly adjudicated 
                        disciplinary and enforcement actions 
                        against loan originators; and
                          (iii) shall not be used for purposes 
                        other than those set forth under this 
                        title.
                  (B) Responsibility of states.--To the 
                greatest extent possible and to accomplish the 
                purpose of this title, States shall use unique 
                identifiers in lieu of social security numbers.

SEC. 1504. LICENSE OR REGISTRATION REQUIRED.

  (a) In General.--Subject to the existence of a licensing or 
registration regime, as the case may be, an individual may not 
engage in the business of a loan originator without first--
          (1) obtaining, and maintaining annually--
                  (A) a registration as a registered loan 
                originator; or
                  (B) a license and registration as a State-
                licensed loan originator; and
          (2) obtaining a unique identifier.
  (b) Loan Processors and Underwriters.--
          (1) Supervised loan processors and underwriters.--A 
        loan processor or underwriter who does not represent to 
        the public, through advertising or other means of 
        communicating or providing information (including the 
        use of business cards, stationery, brochures, signs, 
        rate lists, or other promotional items), that such 
        individual can or will perform any of the activities of 
        a loan originator shall not be required to be a State-
        licensed loan originator.
          (2) Independent contractors.--An independent 
        contractor may not engage in residential mortgage loan 
        origination activities as a loan processor or 
        underwriter unless such independent contractor is a 
        State-licensed loan originator.

SEC. 1505. STATE LICENSE AND REGISTRATION APPLICATION AND ISSUANCE.

  (a) Background Checks.--In connection with an application to 
any State for licensing and registration as a State-licensed 
loan originator, the applicant shall, at a minimum, furnish to 
the Nationwide Mortgage Licensing System and Registry 
information concerning the applicant's identity, including--
          (1) fingerprints for submission to the Federal Bureau 
        of Investigation, and any governmental agency or entity 
        authorized to receive such information for a State and 
        national criminal history background check; and
          (2) personal history and experience, including 
        authorization for the System to obtain--
                  (A) an independent credit report obtained 
                from a consumer reporting agency described in 
                section 603(p) of the Fair Credit Reporting 
                Act; and
                  (B) information related to any 
                administrative, civil or criminal findings by 
                any governmental jurisdiction.
  (b) Issuance of License.--The minimum standards for licensing 
and registration as a State-licensed loan originator shall 
include the following:
          (1) The applicant has never had a loan originator 
        license revoked in any governmental jurisdiction.
          (2) The applicant has not been convicted of, or pled 
        guilty or nolo contendere to, a felony in a domestic, 
        foreign, or military court--
                  (A) during the 7-year period preceding the 
                date of the application for licensing and 
                registration; or
                  (B) at any time preceding such date of 
                application, if such felony involved an act of 
                fraud, dishonesty, or a breach of trust, or 
                money laundering.
          (3) The applicant has demonstrated financial 
        responsibility, character, and general fitness such as 
        to command the confidence of the community and to 
        warrant a determination that the loan originator will 
        operate honestly, fairly, and efficiently within the 
        purposes of this title.
          (4) The applicant has completed the pre-licensing 
        education requirement described in subsection (c).
          (5) The applicant has passed a written test that 
        meets the test requirement described in subsection (d).
          (6) The applicant has met either a net worth or 
        surety bond requirement, or paid into a State fund, as 
        required by the State pursuant to section 1508(d)(6).
  (c) Pre-Licensing Education of Loan Originators.--
          (1) Minimum educational requirements.--In order to 
        meet the pre-licensing education requirement referred 
        to in subsection (b)(4), a person shall complete at 
        least 20 hours of education approved in accordance with 
        paragraph (2), which shall include at least--
                  (A) 3 hours of Federal law and regulations;
                  (B) 3 hours of ethics, which shall include 
                instruction on fraud, consumer protection, and 
                fair lending issues; and
                  (C) 2 hours of training related to lending 
                standards for the nontraditional mortgage 
                product marketplace.
          (2) Approved educational courses.--For purposes of 
        paragraph (1), pre-licensing education courses shall be 
        reviewed, and approved by the Nationwide Mortgage 
        Licensing System and Registry.
          (3) Limitation and standards.--
                  (A) Limitation.--To maintain the independence 
                of the approval process, the Nationwide 
                Mortgage Licensing System and Registry shall 
                not directly or indirectly offer pre-licensure 
                educational courses for loan originators.
                  (B) Standards.--In approving courses under 
                this section, the Nationwide Mortgage Licensing 
                System and Registry shall apply reasonable 
                standards in the review and approval of 
                courses.
  (d) Testing of Loan Originators.--
          (1) In general.--In order to meet the written test 
        requirement referred to in subsection (b)(5), an 
        individual shall pass, in accordance with the standards 
        established under this subsection, a qualified written 
        test developed by the Nationwide Mortgage Licensing 
        System and Registry and administered by an approved 
        test provider.
          (2) Qualified test.--A written test shall not be 
        treated as a qualified written test for purposes of 
        paragraph (1) unless the test adequately measures the 
        applicant's knowledge and comprehension in appropriate 
        subject areas, including--
                  (A) ethics;
                  (B) Federal law and regulation pertaining to 
                mortgage origination;
                  (C) State law and regulation pertaining to 
                mortgage origination;
                  (D) Federal and State law and regulation, 
                including instruction on fraud, consumer 
                protection, the nontraditional mortgage 
                marketplace, and fair lending issues.
          (3) Minimum competence.--
                  (A) Passing score.--An individual shall not 
                be considered to have passed a qualified 
                written test unless the individual achieves a 
                test score of not less than 75 percent correct 
                answers to questions.
                  (B) Initial retests.--An individual may 
                retake a test 3 consecutive times with each 
                consecutive taking occurring at least 30 days 
                after the preceding test.
                  (C) Subsequent retests.--After failing 3 
                consecutive tests, an individual shall wait at 
                least 6 months before taking the test again.
                  (D) Retest after lapse of license.--A State-
                licensed loan originator who fails to maintain 
                a valid license for a period of 5 years or 
                longer shall retake the test, not taking into 
                account any time during which such individual 
                is a registered loan originator.
  (e) Mortgage Call Reports.--Each mortgage licensee shall 
submit to the Nationwide Mortgage Licensing System and Registry 
reports of condition, which shall be in such form and shall 
contain such information as the Nationwide Mortgage Licensing 
System and Registry may require.

SEC. 1506. STANDARDS FOR STATE LICENSE RENEWAL.

  (a) In General.--The minimum standards for license renewal 
for State-licensed loan originators shall include the 
following:
          (1) The loan originator continues to meet the minimum 
        standards for license issuance.
          (2) The loan originator has satisfied the annual 
        continuing education requirements described in 
        subsection (b).
  (b) Continuing Education for State-Licensed Loan 
Originators.--
          (1) In general.--In order to meet the annual 
        continuing education requirements referred to in 
        subsection (a)(2), a State-licensed loan originator 
        shall complete at least 8 hours of education approved 
        in accordance with paragraph (2), which shall include 
        at least--
                  (A) 3 hours of Federal law and regulations;
                  (B) 2 hours of ethics, which shall include 
                instruction on fraud, consumer protection, and 
                fair lending issues; and
                  (C) 2 hours of training related to lending 
                standards for the nontraditional mortgage 
                product marketplace.
          (2) Approved educational courses.--For purposes of 
        paragraph (1), continuing education courses shall be 
        reviewed, and approved by the Nationwide Mortgage 
        Licensing System and Registry.
          (3) Calculation of continuing education credits.--A 
        State-licensed loan originator--
                  (A) may only receive credit for a continuing 
                education course in the year in which the 
                course is taken; and
                  (B) may not take the same approved course in 
                the same or successive years to meet the annual 
                requirements for continuing education.
          (4) Instructor credit.--A State-licensed loan 
        originator who is approved as an instructor of an 
        approved continuing education course may receive credit 
        for the originator's own annual continuing education 
        requirement at the rate of 2 hours credit for every 1 
        hour taught.
          (5) Limitation and standards.--
                  (A) Limitation.--To maintain the independence 
                of the approval process, the Nationwide 
                Mortgage Licensing System and Registry shall 
                not directly or indirectly offer any continuing 
                education courses for loan originators.
                  (B) Standards.--In approving courses under 
                this section, the Nationwide Mortgage Licensing 
                System and Registry shall apply reasonable 
                standards in the review and approval of 
                courses.

SEC. 1507. SYSTEM OF REGISTRATION ADMINISTRATION BY FEDERAL AGENCIES.

  (a) Development.--
          (1) In general.--The Bureau shall develop and 
        maintain a system for registering employees of a 
        depository institution, employees of a subsidiary that 
        is owned and controlled by a depository institution and 
        regulated by a Federal banking agency, or employees of 
        an institution regulated by the Farm Credit 
        Administration, as registered loan originators with the 
        Nationwide Mortgage Licensing System and Registry. The 
        system shall be implemented before the end of the 1-
        year period beginning on the date of enactment of the 
        Consumer Financial Protection Act of 2010.
          (2) Registration requirements.--In connection with 
        the registration of any loan originator under this 
        subsection, the Bureau shall, at a minimum, furnish or 
        cause to be furnished to the Nationwide Mortgage 
        Licensing System and Registry information concerning 
        the identity of the employee, including--
                  (A) fingerprints for submission to the 
                Federal Bureau of Investigation, and any 
                governmental agency or entity authorized to 
                receive such information for a State and 
                national criminal history background check; and
                  (B) personal history and experience, 
                including authorization for the Nationwide 
                Mortgage Licensing System and Registry to 
                obtain information related to any 
                administrative, civil or criminal findings by 
                any governmental jurisdiction.
  (b) Coordination.--
          (1) Unique identifier.--The Bureau, and the Bureau of 
        Consumer Financial Protection shall coordinate with the 
        Nationwide Mortgage Licensing System and Registry to 
        establish protocols for assigning a unique identifier 
        to each registered loan originator that will facilitate 
        electronic tracking and uniform identification of, and 
        public access to, the employment history of and 
        publicly adjudicated disciplinary and enforcement 
        actions against loan originators.
          (2) Nationwide mortgage licensing system and registry 
        development.--To facilitate the transfer of information 
        required by subsection (a)(2), the Nationwide Mortgage 
        Licensing System and Registry shall coordinate with the 
        Bureau, and the Bureau of Consumer Financial Protection 
        concerning the development and operation, by such 
        System and Registry, of the registration functionality 
        and data requirements for loan originators.
  (c) Consideration of Factors and Procedures.--In establishing 
the registration procedures under subsection (a) and the 
protocols for assigning a unique identifier to a registered 
loan originator, the Bureau shall make such de minimis 
exceptions as may be appropriate to paragraphs (1)(A) and (2) 
of section 1504(a), shall make reasonable efforts to utilize 
existing information to minimize the burden of registering loan 
originators, and shall consider methods for automating the 
process to the greatest extent practicable consistent with the 
purposes of this title.

SEC. 1508. BUREAU OF CONSUMER FINANCIAL PROTECTION BACKUP AUTHORITY TO 
                    ESTABLISH LOAN ORIGINATOR LICENSING SYSTEM.

  (a) Backup Licensing System.--If, by the end of the 1-year 
period, or the 2-year period in the case of a State whose 
legislature meets only biennially, beginning on the date of the 
enactment of this title or at any time thereafter, the 
[Director] Financial Product Safety Commission determines that 
a State does not have in place by law or regulation a system 
for licensing and registering loan originators that meets the 
requirements of sections 1505 and 1506 and subsection (d) of 
this section, or does not participate in the Nationwide 
Mortgage Licensing System and Registry, the [Director] 
Financial Product Safety Commission shall provide for the 
establishment and maintenance of a system for the licensing and 
registration by the [Director] Financial Product Safety 
Commission of loan originators operating in such State as 
State-licensed loan originators.
  (b) Licensing and Registration Requirements.--The system 
established by the [Director] Financial Product Safety 
Commission under subsection (a) for any State shall meet the 
requirements of sections 1505 and 1506 for State-licensed loan 
originators.
  (c) Unique Identifier.--The [Director] Financial Product 
Safety Commission shall coordinate with the Nationwide Mortgage 
Licensing System and Registry to establish protocols for 
assigning a unique identifier to each loan originator licensed 
by the [Director] Financial Product Safety Commission as a 
State-licensed loan originator that will facilitate electronic 
tracking and uniform identification of, and public access to, 
the employment history of and the publicly adjudicated 
disciplinary and enforcement actions against loan originators.
  (d) State Licensing Law Requirements.--For purposes of this 
section, the law in effect in a State meets the requirements of 
this subsection if the [Director] Financial Product Safety 
Commission determines the law satisfies the following minimum 
requirements:
          (1) A State loan originator supervisory authority is 
        maintained to provide effective supervision and 
        enforcement of such law, including the suspension, 
        termination, or nonrenewal of a license for a violation 
        of State or Federal law.
          (2) The State loan originator supervisory authority 
        ensures that all State-licensed loan originators 
        operating in the State are registered with Nationwide 
        Mortgage Licensing System and Registry.
          (3) The State loan originator supervisory authority 
        is required to regularly report violations of such law, 
        as well as enforcement actions and other relevant 
        information, to the Nationwide Mortgage Licensing 
        System and Registry.
          (4) The State loan originator supervisory authority 
        has a process in place for challenging information 
        contained in the Nationwide Mortgage Licensing System 
        and Registry.
          (5) The State loan originator supervisory authority 
        has established a mechanism to assess civil money 
        penalties for individuals acting as mortgage 
        originators in their State without a valid license or 
        registration.
          (6) The State loan originator supervisory authority 
        has established minimum net worth or surety bonding 
        requirements that reflect the dollar amount of loans 
        originated by a residential mortgage loan originator, 
        or has established a recovery fund paid into by the 
        loan originators.
  (e) Temporary Extension of Period.--The [Director] Financial 
Product Safety Commission may extend, by not more than 24 
months, the 1-year or 2-year period, as the case may be, 
referred to in subsection (a) for the licensing of loan 
originators in any State under a State licensing law that meets 
the requirements of sections 1505 and 1506 and subsection (d) 
if the [Director] Financial Product Safety Commission 
determines that such State is making a good faith effort to 
establish a State licensing law that meets such requirements, 
license mortgage originators under such law, and register such 
originators with the Nationwide Mortgage Licensing System and 
Registry.
  (f) Regulation Authority.--
          (1) In general.--The Bureau is authorized to 
        promulgate regulations setting minimum net worth or 
        surety bond requirements for residential mortgage loan 
        originators and minimum requirements for recovery funds 
        paid into by loan originators.
          (2) Considerations.--In issuing regulations under 
        paragraph (1), the Bureau shall take into account the 
        need to provide originators adequate incentives to 
        originate affordable and sustainable mortgage loans, as 
        well as the need to ensure a competitive origination 
        market that maximizes consumer access to affordable and 
        sustainable mortgage loans.

SEC. 1509. BACKUP AUTHORITY TO ESTABLISH A NATIONWIDE MORTGAGE 
                    LICENSING AND REGISTRY SYSTEM.

  If at any time the [Director] Financial Product Safety 
Commission determines that the Nationwide Mortgage Licensing 
System and Registry is failing to meet the requirements and 
purposes of this title for a comprehensive licensing, 
supervisory, and tracking system for loan originators, the 
[Director] Financial Product Safety Commission shall establish 
and maintain such a system to carry out the purposes of this 
title and the effective registration and regulation of loan 
originators.

SEC. 1510. FEES.

  The Bureau, the Farm Credit Administration, and the 
Nationwide Mortgage Licensing System and Registry may charge 
reasonable fees to cover the costs of maintaining and providing 
access to information from the Nationwide Mortgage Licensing 
System and Registry, to the extent that such fees are not 
charged to consumers for access to such system and registry.

SEC. 1511. BACKGROUND CHECKS OF LOAN ORIGINATORS.

  (a) Access to Records.--Notwithstanding any other provision 
of law, in providing identification and processing functions, 
the Attorney General shall provide access to all criminal 
history information to the appropriate State officials 
responsible for regulating State-licensed loan originators to 
the extent criminal history background checks are required 
under the laws of the State for the licensing of such loan 
originators.
  (b) Agent.--For the purposes of this section and in order to 
reduce the points of contact which the Federal Bureau of 
Investigation may have to maintain for purposes of subsection 
(a), the Conference of State Bank Supervisors or a wholly owned 
subsidiary may be used as a channeling agent of the States for 
requesting and distributing information between the Department 
of Justice and the appropriate State agencies.

SEC. 1512. CONFIDENTIALITY OF INFORMATION.

  (a) System Confidentiality.--Except as otherwise provided in 
this section, any requirement under Federal or State law 
regarding the privacy or confidentiality of any information or 
material provided to the Nationwide Mortgage Licensing System 
and Registry or a system established by the [Director] 
Financial Product Safety Commission under section 1509, and any 
privilege arising under Federal or State law (including the 
rules of any Federal or State court) with respect to such 
information or material, shall continue to apply to such 
information or material after the information or material has 
been disclosed to the system. Such information and material may 
be shared with all State and Federal regulatory officials with 
mortgage industry oversight authority without the loss of 
privilege or the loss of confidentiality protections provided 
by Federal and State laws.
  (b) Nonapplicability of Certain Requirements.--Information or 
material that is subject to a privilege or confidentiality 
under subsection (a) shall not be subject to--
          (1) disclosure under any Federal or State law 
        governing the disclosure to the public of information 
        held by an officer or an agency of the Federal 
        Government or the respective State; or
          (2) subpoena or discovery, or admission into 
        evidence, in any private civil action or administrative 
        process, unless with respect to any privilege held by 
        the Nationwide Mortgage Licensing System and Registry 
        or the [Director] Financial Product Safety Commission 
        with respect to such information or material, the 
        person to whom such information or material pertains 
        waives, in whole or in part, in the discretion of such 
        person, that privilege.
  (c) Coordination With Other Law.--Any State law, including 
any State open record law, relating to the disclosure of 
confidential supervisory information or any information or 
material described in subsection (a) that is inconsistent with 
subsection (a) shall be superseded by the requirements of such 
provision to the extent State law provides less confidentiality 
or a weaker privilege.
  (d) Public Access to Information.--This section shall not 
apply with respect to the information or material relating to 
the employment history of, and publicly adjudicated 
disciplinary and enforcement actions against, loan originators 
that is included in Nationwide Mortgage Licensing System and 
Registry for access by the public.

SEC. 1513. LIABILITY PROVISIONS.

  The Bureau, any State official or agency, or any organization 
serving as the administrator of the Nationwide Mortgage 
Licensing System and Registry or a system established by the 
[Director] Financial Product Safety Commission under section 
1509, or any officer or employee of any such entity, shall not 
be subject to any civil action or proceeding for monetary 
damages by reason of the good faith action or omission of any 
officer or employee of any such entity, while acting within the 
scope of office or employment, relating to the collection, 
furnishing, or dissemination of information concerning persons 
who are loan originators or are applying for licensing or 
registration as loan originators.

SEC. 1514. ENFORCEMENT BY THE BUREAU.

  (a) Summons Authority.--The [Director] Financial Product 
Safety Commission may--
          (1) examine any books, papers, records, or other data 
        of any loan originator operating in any State which is 
        subject to a licensing system established by the 
        [Director] Financial Product Safety Commission under 
        section 1508; and
          (2) summon any loan originator referred to in 
        paragraph (1) or any person having possession, custody, 
        or care of the reports and records relating to such 
        loan originator, to appear before the [Director] 
        Financial Product Safety Commission or any delegate of 
        the [Director] Financial Product Safety Commission at a 
        time and place named in the summons and to produce such 
        books, papers, records, or other data, and to give 
        testimony, under oath, as may be relevant or material 
        to an investigation of such loan originator for 
        compliance with the requirements of this title.
  (b) Examination Authority.--
          (1) In general.--If the [Director] Financial Product 
        Safety Commission establishes a licensing system under 
        section 1508 for any State, the [Director] Financial 
        Product Safety Commission shall appoint examiners for 
        the purposes of administering such section.
          (2) Power to examine.--Any examiner appointed under 
        paragraph (1) shall have power, on behalf of the 
        [Director] Financial Product Safety Commission, to make 
        any examination of any loan originator operating in any 
        State which is subject to a licensing system 
        established by the [Director] Financial Product Safety 
        Commission under section 1508 whenever the [Director] 
        Financial Product Safety Commission determines an 
        examination of any loan originator is necessary to 
        determine the compliance by the originator with this 
        title.
          (3) Report of examination.--Each examiner appointed 
        under paragraph (1) shall make a full and detailed 
        report of examination of any loan originator examined 
        to the [Director] Financial Product Safety Commission.
          (4) Administration of oaths and affirmations; 
        evidence.--In connection with examinations of loan 
        originators operating in any State which is subject to 
        a licensing system established by the [Director] 
        Financial Product Safety Commission under section 1508, 
        or with other types of investigations to determine 
        compliance with applicable law and regulations, the 
        [Director] Financial Product Safety Commission and 
        examiners appointed by the [Director] Financial Product 
        Safety Commission may administer oaths and affirmations 
        and examine and take and preserve testimony under oath 
        as to any matter in respect to the affairs of any such 
        loan originator.
          (5) Assessments.--The cost of conducting any 
        examination of any loan originator operating in any 
        State which is subject to a licensing system 
        established by the [Director] Financial Product Safety 
        Commission under section 1508 shall be assessed by the 
        [Director] Financial Product Safety Commission against 
        the loan originator to meet the Secretary's expenses in 
        carrying out such examination.
  (c) Cease and Desist Proceeding.--
          (1) Authority of secretary.--If the [Director] 
        Financial Product Safety Commission finds, after notice 
        and opportunity for hearing, that any person is 
        violating, has violated, or is about to violate any 
        provision of this title, or any regulation thereunder, 
        with respect to a State which is subject to a licensing 
        system established by the [Director] Financial Product 
        Safety Commission under section 1508, the [Director] 
        Financial Product Safety Commission may publish such 
        findings and enter an order requiring such person, and 
        any other person that is, was, or would be a cause of 
        the violation, due to an act or omission the person 
        knew or should have known would contribute to such 
        violation, to cease and desist from committing or 
        causing such violation and any future violation of the 
        same provision, rule, or regulation. Such order may, in 
        addition to requiring a person to cease and desist from 
        committing or causing a violation, require such person 
        to comply, or to take steps to effect compliance, with 
        such provision or regulation, upon such terms and 
        conditions and within such time as the [Director] 
        Financial Product Safety Commission may specify in such 
        order. Any such order may, as the [Director] Financial 
        Product Safety Commission deems appropriate, require 
        future compliance or steps to effect future compliance, 
        either permanently or for such period of time as the 
        [Director] Financial Product Safety Commission may 
        specify, with such provision or regulation with respect 
        to any loan originator.
          (2) Hearing.--The notice instituting proceedings 
        pursuant to paragraph (1) shall fix a hearing date not 
        earlier than 30 days nor later than 60 days after 
        service of the notice unless an earlier or a later date 
        is set by the [Director] Financial Product Safety 
        Commission with the consent of any respondent so 
        served.
          (3) Temporary order.--Whenever the [Director] 
        Financial Product Safety Commission determines that the 
        alleged violation or threatened violation specified in 
        the notice instituting proceedings pursuant to 
        paragraph (1), or the continuation thereof, is likely 
        to result in significant dissipation or conversion of 
        assets, significant harm to consumers, or substantial 
        harm to the public interest prior to the completion of 
        the proceedings, the [Director] Financial Product 
        Safety Commission may enter a temporary order requiring 
        the respondent to cease and desist from the violation 
        or threatened violation and to take such action to 
        prevent the violation or threatened violation and to 
        prevent dissipation or conversion of assets, 
        significant harm to consumers, or substantial harm to 
        the public interest as the [Director] Financial Product 
        Safety Commission deems appropriate pending completion 
        of such proceedings. Such an order shall be entered 
        only after notice and opportunity for a hearing, unless 
        the [Director] Financial Product Safety Commission 
        determines that notice and hearing prior to entry would 
        be impracticable or contrary to the public interest. A 
        temporary order shall become effective upon service 
        upon the respondent and, unless set aside, limited, or 
        suspended by the [Director] Financial Product Safety 
        Commission or a court of competent jurisdiction, shall 
        remain effective and enforceable pending the completion 
        of the proceedings.
          (4) Review of temporary orders.--
                  (A) Review by secretary.--At any time after 
                the respondent has been served with a temporary 
                cease and desist order pursuant to paragraph 
                (3), the respondent may apply to the [Director] 
                Financial Product Safety Commission to have the 
                order set aside, limited, or suspended. If the 
                respondent has been served with a temporary 
                cease and desist order entered without a prior 
                hearing before the [Director] Financial Product 
                Safety Commission, the respondent may, within 
                10 days after the date on which the order was 
                served, request a hearing on such application 
                and the [Director] Financial Product Safety 
                Commission shall hold a hearing and render a 
                decision on such application at the earliest 
                possible time.
                  (B) Judicial review.--Within--
                          (i) 10 days after the date the 
                        respondent was served with a temporary 
                        cease and desist order entered with a 
                        prior hearing before the [Director] 
                        Financial Product Safety Commission; or
                          (ii) 10 days after the [Director] 
                        Financial Product Safety Commission 
                        renders a decision on an application 
                        and hearing under paragraph (1), with 
                        respect to any temporary cease and 
                        desist order entered without a prior 
                        hearing before the [Director] Financial 
                        Product Safety Commission,
                the respondent may apply to the United States 
                district court for the district in which the 
                respondent resides or has its principal place 
                of business, or for the District of Columbia, 
                for an order setting aside, limiting, or 
                suspending the effectiveness or enforcement of 
                the order, and the court shall have 
                jurisdiction to enter such an order. A 
                respondent served with a temporary cease and 
                desist order entered without a prior hearing 
                before the [Director] Financial Product Safety 
                Commission may not apply to the court except 
                after hearing and decision by the [Director] 
                Financial Product Safety Commission on the 
                respondent's application under subparagraph 
                (A).
                  (C) No automatic stay of temporary order.--
                The commencement of proceedings under 
                subparagraph (B) shall not, unless specifically 
                ordered by the court, operate as a stay of the 
                Secretary's order.
          (5) Authority of the secretary to prohibit persons 
        from serving as loan originators.--In any cease and 
        desist proceeding under paragraph (1), the [Director] 
        Financial Product Safety Commission may issue an order 
        to prohibit, conditionally or unconditionally, and 
        permanently or for such period of time as the 
        [Director] Financial Product Safety Commission shall 
        determine, any person who has violated this title or 
        regulations thereunder, from acting as a loan 
        originator if the conduct of that person demonstrates 
        unfitness to serve as a loan originator.
  (d) Authority of the Secretary To Assess Money Penalties.--
          (1) In general.--The [Director] Financial Product 
        Safety Commission may impose a civil penalty on a loan 
        originator operating in any State which is subject to a 
        licensing system established by the [Director] 
        Financial Product Safety Commission under section 1508, 
        if the [Director] Financial Product Safety Commission 
        finds, on the record after notice and opportunity for 
        hearing, that such loan originator has violated or 
        failed to comply with any requirement of this title or 
        any regulation prescribed by the [Director] Financial 
        Product Safety Commission under this title or order 
        issued under subsection (c).
          (2) Maximum amount of penalty.--The maximum amount of 
        penalty for each act or omission described in paragraph 
        (1) shall be $25,000.

SEC. 1515. STATE EXAMINATION AUTHORITY.

  In addition to any authority allowed under State law a State 
licensing agency shall have the authority to conduct 
investigations and examinations as follows:
          (1) For the purposes of investigating violations or 
        complaints arising under this title, or for the 
        purposes of examination, the State licensing agency may 
        review, investigate, or examine any loan originator 
        licensed or required to be licensed under this title, 
        as often as necessary in order to carry out the 
        purposes of this title.
          (2) Each such loan originator shall make available 
        upon request to the State licensing agency the books 
        and records relating to the operations of such 
        originator. The State licensing agency may have access 
        to such books and records and interview the officers, 
        principals, loan originators, employees, independent 
        contractors, agents, and customers of the licensee 
        concerning their business.
          (3) The authority of this section shall remain in 
        effect, whether such a loan originator acts or claims 
        to act under any licensing or registration law of such 
        State, or claims to act without such authority.
          (4) No person subject to investigation or examination 
        under this section may knowingly withhold, abstract, 
        remove, mutilate, destroy, or secrete any books, 
        records, computer records, or other information.

SEC. 1516. REPORTS AND RECOMMENDATIONS TO CONGRESS.

  (a) Annual Reports.--Not later than 1 year after the date of 
enactment of this title, and annually thereafter, the 
[Director] Financial Product Safety Commission shall submit a 
report to Congress on the effectiveness of the provisions of 
this title, including legislative recommendations, if any, for 
strengthening consumer protections, enhancing examination 
standards, streamlining communication between all stakeholders 
involved in residential mortgage loan origination and 
processing, and establishing performance based bonding 
requirements for mortgage originators or institutions that 
employ such brokers.
  (b) Legislative Recommendations.--Not later than 6 months 
after the date of enactment of this title, the [Director] 
Financial Product Safety Commission shall make recommendations 
to Congress on legislative reforms to the Real Estate 
Settlement Procedures Act of 1974, that the [Director] 
Financial Product Safety Commission deems appropriate to 
promote more transparent disclosures, allowing consumers to 
better shop and compare mortgage loan terms and settlement 
costs.

SEC. 1517. STUDY AND REPORTS ON DEFAULTS AND FORECLOSURES.

  (a) Study Required.--The [Director] Financial Product Safety 
Commission shall conduct an extensive study of the root causes 
of default and foreclosure of home loans, using as much 
empirical data as is available.
  (b) Preliminary Report to Congress.--Not later than 6 months 
after the date of enactment of this title, the [Director] 
Financial Product Safety Commission shall submit to Congress a 
preliminary report regarding the study required by this 
section.
  (c) Final Report to Congress.--Not later than 12 months after 
the date of enactment of this title, the [Director] Financial 
Product Safety Commission shall submit to Congress a final 
report regarding the results of the study required by this 
section, which shall include any recommended legislation 
relating to the study, and recommendations for best practices 
and for a process to provide targeted assistance to populations 
with the highest risk of potential default or foreclosure.

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                              ----------                              


TITLE 44, UNITED STATES CODE

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         CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

SUBCHAPTER I--FEDERAL INFORMATION POLICY

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Sec. 3513. Director review of agency activities; reporting; agency 
                    response

  (a) In consultation with the Administrator of General 
Services, the Archivist of the United States, the Director of 
the National Institute of Standards and Technology, and the 
Director of the Office of Personnel Management, the Director 
shall periodically review selected agency information resources 
management activities to ascertain the efficiency and 
effectiveness of such activities to improve agency performance 
and the accomplishment of agency missions.
  (b) Each agency having an activity reviewed under subsection 
(a) shall, within 60 days after receipt of a report on the 
review, provide a written plan to the Director describing steps 
(including milestones) to--
          (1) be taken to address information resources 
        management problems identified in the report; and
          (2) improve agency performance and the accomplishment 
        of agency missions.
  (c) Comparable Treatment.--Notwithstanding any other 
provision of law, the Director shall treat or review a rule or 
order prescribed or proposed by the [Director of the Bureau] 
Financial Product Safety Commission of Consumer Financial 
Protection on the same terms and conditions as apply to any 
rule or order prescribed or proposed by the Board of Governors 
of the Federal Reserve System.

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                             MINORITY VIEWS

    H.R. 1266 would change the leadership structure of the 
Consumer Financial Protection Bureau (``CFPB'') from an 
effective single director to a partisan, gridlocked five member 
commission. The legislation is a direct attempt to stymie the 
functioning of this important, independent agency, prevent 
consumers from receiving the full scope of consumer protections 
envisioned by the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, and is an effort to empower the financial 
industry to exert more influence over CFPB decision making.
    This committee has often heard complaints that agencies run 
by multi-member commissions are slow to issue rules mandated by 
Congress or take enforcement actions. Replacing the Director of 
the Bureau with a multi-member commission would increase 
bureaucracy and could slow the Bureau's ability to respond 
quickly and effectively to stakeholder views or emerging 
challenges in the industry. Given the recent violations of 
consumer rights by the financial industry, including the 
potential opening of more than 2.5 million fraudulent accounts 
in consumers' names by Wells Fargo, the need to ensure that 
consumer protections are enforced by an independent agency, 
free from partisan politics and unnecessary bureaucratic 
delays, should be apparent to anyone committed to enforcing the 
laws designed to protect the consumers of financial products 
and services.
    In addition, the CFPB's Director already engages in a 
robust discussion of multiple views and incorporates these 
views into Bureau decision making under several provisions of 
the Dodd-Frank Act. Some of these requirements include 
mandating that the Bureau seek the input of affected parties, 
including small businesses under section 1100G, prudential bank 
regulators under section 1022(b)(2)(B), and a consumer advisory 
board composed of outside experts under section 1014.
    Finally, despite assertions from proponents of H.R. 1266 
that a commission structure would enhance the accountability of 
the Bureau, the reality is that commission governance would 
make the Bureau less accountable to Congress and all affected 
parties. A review by the non-partisan Government Accountability 
Office (GAO), in examining the structure of the Consumer 
Product Safety Commission (CPSC), found that the ``superior 
administrative effectiveness of a single-director structure 
would outweigh any potential benefits of collegial decision-
making within CPSC's multimember commission.'' GAO also found 
that high turnover, and divisions among commissioners led to 
delays in decision-making. Further, individuals involved in the 
legislative process leading to the Bureau's creation--including 
former Chairmen Barney Frank and Chris Dodd, as well as Senator 
Elizabeth Warren and the Obama Administration, all have noted 
that changing the Bureau's structure would interfere with its 
ability to make consumer financial markets operate more 
efficiently and effectively.
    The CFPB has a mission that is enshrined in statute and 
bound by the relevant consumer laws. Directors of independent 
agencies, as well as courts, should be trusted and expected to 
uphold those laws. History has shown that Directors of 
independent agencies often act in non-partisan ways when they 
are entrusted with an important public service role. In its 
current form, the CFPB's structure works as it should by 
striking a balance between the ability of an elected 
administration to influence the direction of the agency by 
choosing a Director and ensuring that, once chosen, that 
Director has the necessary independence to carry out the 
mission of the agency without undue political influence.
    For the foregoing reasons, the Minority opposes H.R. 1266.

                                   Maxine Waters.
                                   Wm. Lacy Clay.
                                   Ruben Hinojosa.
                                   Keith Ellison.
                                   Al Green.

                                  [all]