[House Report 115-420]
[From the U.S. Government Publishing Office]


115th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                    {       115-420

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



 
   BUREAU OF CONSUMER FINANCIAL PROTECTION EXAMINATION AND REPORTING 
                         THRESHOLD ACT OF 2017

                                _______
                                

 November 21, 2017.--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. 3072]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3072) to increase from $10,000,000,000 to 
$50,000,000,000 the threshold figure at which regulated 
depository institutions are subject to direct examination and 
reporting requirements of the Bureau of Consumer Financial 
Protection, and for other purposes, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                          Purpose and Summary

    Introduced by Representative William Lacy Clay on June 27, 
2017, H.R. 3072, the ``Bureau of Consumer Financial Protection 
Examination and Reporting Threshold Act of 2017'', amends 
Section 1025 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act to increase from $10 to $50 billion the 
threshold at which depository institutions are subject to 
direct examination by and reporting requirements of the 
Consumer Financial Protection Bureau (CFPB).

                  Background and Need for Legislation

    Title X of the Dodd-Frank Act authorizes the CPFB to act as 
the exclusive supervisory authority over banks, insured credit 
union and other insured depository institutions with total 
assets of more than $10 billion for compliance with eighteen 
enumerated consumer protection laws. The CFPB also supervises 
nonbanks, regardless of size, including consumer mortgage 
companies (originators, brokers, servicers, and providers of 
loan modification or foreclosure relief services), payday 
lenders, and private education lenders. In certain specific 
markets, ``larger participants'' upon a CFPB rulemaking 
defining larger participants of that market, are also subject 
to the CFPB's supervisory authority. As of November 27, 2017, 
the CFPB has issued larger participant rules for the following 
markets: consumer reporting, consumer debt collection, student 
loan servicing, international money transfer, and automobile 
financing.
    For insured credit unions, and other insured depository 
institutions with total assets of less than $10 billion, the 
federal prudential regulators, including the Federal Deposit 
Insurance Corporation (FDIC), the Office of the Comptroller of 
the Currency (OCC), the Federal Reserve, and the National 
Credit Union Administration (NCUA) perform examinations to 
ensure compliance with the consumer financial laws. The CFPB 
may issue rules that apply to smaller institutions from 
authorities granted under the federal enumerated consumer 
financial protection laws. The CFPB also has the authority to 
include its examiners, on a sampling basis, at examinations of 
smaller institutions to assess compliance with the requirements 
of federal consumer financial laws.
    Title X of the Dodd-Frank Act gave the CFPB broad and 
unchecked authority to punish companies for unspecified acts or 
practices under its ``Unfair, Deceptive, and Abusive Acts and 
Practices'', or ``UDAAP'' authorities. Rather than use its 
rulemaking authority to define ``abusive'' so that supervised 
entities may conform their behavior accordingly, the CFPB 
defines ``unfair,'' ``deceptive'' and ``abusive'' practices 
through enforcement activity. As such, there is no clear 
standard to follow for an entity under the CFPB's authority to 
determine whether it is in violation of the law.
    The CFPB's examination and enforcement authority allows it 
to conduct investigations to determine whether any person has 
engaged in conduct that violates federal consumer financial 
law. Under these broad authorities, the CFPB can require 
institutions provide it with vast amounts and types of 
information. The CFPB's published examination manuals detail 
burdensome procedures that require institutions to locate and 
produce vast tranches of documents and records that touch 
nearly evert part of the business, which in turn force 
regulated entities to devote human and financial resources to 
respond to examiners' interrogations. In some instances, 
financial institutions must submit to ongoing scrutiny of its 
entire regime of policies and procedures.
    As a result, the CFPB's investigative findings often lead 
to public enforcement actions. The CFPB has a number of 
enforcement tools at its disposal when it completes an 
examination, including the power to investigate covered persons 
and service providers, to issue administrative subpoenas and 
compel testimony, issue cease-and-desist orders; and initiate 
actions in Federal court in order to obtain monetary relief for 
consumers and civil money penalties.
    The CFBP's regulatory, examination and supervisory regime 
particularly burdens smaller community financial institutions 
relative to their large competitors that are better able to 
absorb the associated costs. The weight and complexity of 
regulation for community financial institutions affects their 
ability to provide financial products and services necessary to 
allow small businesses to grow and consumers to access credit 
to realize their financial and personal goals.
    H.R. 3072 raises the asset threshold for the CFPB's 
regulatory authority over financial institutions from $10 
billion to $50 billion. As a result, the federal prudential 
regulators would resume the role as the primary supervisor and 
enforcement authority over financial institutions under $50 
billion in assets. While this legislative change will not cause 
any financial institution to undergo any less supervision for 
compliance with consumer protection laws, it will result in 
continued protection for consumers and will simultaneously 
reduce burdensome regulations for community financial 
institutions and increase access to financial products and 
services, as smaller institutions will not be subject to yet 
another regulatory authority with it must maintain policies and 
procedures.
    In a statement in support for H.R. 3072 dated October 10, 
2017, the Credit Union National Association wrote:

          One key reason that the CFPB is not focusing on 
        problem actors is because they are spread thin as a 
        result of requirements to supervise credit unions and 
        small banks with more than $10 billion in assets. These 
        institutions have been sufficiently supervised for 
        consumer protection regulation by their prudential 
        regulators in the past and can be again.

                                Hearings

    The Committee on Financial Services held a hearing 
examining matters relating to H.R. 3072 on July 12, 2017.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
October 11 and 12, 2017 and ordered H.R. 3072 to be reported 
favorably to the House by a recorded vote of 39 yeas to 21 nays 
(Record vote no. FC-80), 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 39 yeas to 21 nays (Record 
vote no. FC-80), a quorum being present.


                      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. 3072 
will reduce the regulatory burden on smaller financial 
institutions whereby only institutions with $50 billion or more 
in assets are subject to additional CFPB supervisory 
requirements.

   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.

                 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, November 13, 2017.
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. 3072, the Bureau 
of Consumer Financial Protection Examination and Reporting 
Threshold Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Stephen 
Rabent.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 3072--Bureau of Consumer Financial Protection Examination and 
        Reporting Threshold Act of 2017

    Under current law, in order to assess and enforce 
compliance with federal consumer financial laws, the Consumer 
Financial Protection Bureau (CFPB) conducts examinations of and 
requires reporting from insured depository institutions and 
insured credit unions with total assets of more than $10 
billion. For financial institutions with assets below $10 
billion, compliance with consumer financial laws is performed 
by other financial regulators: the Federal Deposit Insurance 
Corporation (FDIC), the National Credit Union Administration 
(NCUA), the Office of the Comptroller of the Currency (OCC), 
and the Federal Reserve. H.R. 3027 would raise the asset 
threshold for CFPB's regulatory authority over financial 
institutions from $10 billion to $50 billion.
    Because enacting H.R. 3072 would affect direct spending and 
revenues, pay-as-you-go procedures apply. However, CBO 
estimates that enacting H.R. 3072 would have an insignificant 
effect on deficits over the 2018-2027 period.
    CBO estimates that enacting H.R. 3072 would not increase 
net direct spending or significantly increase on-budget 
deficits in any of the four consecutive 10-year periods 
beginning in 2028.
    Moving responsibilities from the CFPB to the other 
financial regulators would decrease costs for the CFPB and 
increase costs to the FDIC, NCUA, OCC, and Federal Reserve to 
take on additional enforcement responsibilities. CBO estimates 
that on net, implementing H.R. 3072 would have an insignificant 
effect on the federal deficit over the 2018-2027 period.
    Based on information from the CFPB, CBO expects that staff 
currently allocated to enforcing consumer financial laws for 
banks with assets between $10 billion and $50 billion would be 
reallocated to examination and enforcement responsibilities for 
other financial institutions. However, CBO estimates travel and 
administrative costs for the agency would decline by about $8 
million over the 2018-2017 period.
    CBO estimates that gross costs for the FDIC, OCC, and NCUA 
would increase by about $8 million over the 2018-2027 period. 
However, those agencies are authorized to collect fees and 
assessments from regulated institutions to cover administrative 
expenses. CBO expects that only half of those costs would be 
recovered within the 2018-2027 period, with the remaining 
amount would be collected after 2027. As a result, CBO 
estimates that, on net, enacting H.R. 3072 would increase 
direct spending by $4 million over the 2018-2027 period.
    Increased administrative costs of the Federal Reserve are 
reflected in the budget as a reduction in revenue. CBO 
estimates that implementing H.R. 3072 would decrease revenues 
by $4 million over the 2018-2027 period.
    H.R. 3072 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA).
    If the OCC and the NCUA increase fees to offset the costs 
associated with implementing the bill, H.R. 3072 would increase 
the cost of an existing mandate on private entities required to 
pay those assessments. CBO estimates that the incremental cost 
of the mandate would be small and would fall well below the 
annual threshold for private-sector mandates established in 
UMRA ($156 million in 2017, adjusted annually for inflation).
    The CBO staff contacts for this estimate are Stephen Rabent 
(for federal costs), Nathaniel Frentz (for revenues), and Logan 
Smith (for mandates). The estimate was approved by H. Samuel 
Papenfuss, Deputy Director for Budget Analysis.

                       Federal Mandates Statement

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995.
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                      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

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, (115th Congress), 
the following statement is made concerning directed 
rulemakings: The Committee estimates that the bill requires no 
directed rulemakings within the meaning of such section.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 3072 as the ``Bureau of Consumer 
Financial Protection Examination and Reporting Threshold Act of 
2017.''

Section 2. Increase in the examination threshold

    This section amends section 1025(a) of the Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5515(a)) to 
increase the scope of coverage for covered persons with total 
assets of more than $10,000,000,000 to $50,000,000,000.

Section 3. Increase in the reporting threshold

    This section amends section 1026(a) of the Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5516(a)) to 
increase the scope of coverage for covered persons with total 
assets of less than $10,000,000,000 to $50,000,000,000.

Section 4. Effective date

    This section makes effective date upon which the act shall 
take effect as 45 days after the date of enactment.

         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 italics, and existing law in which no 
change is proposed is shown in roman):

         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 italics, and existing law in which no 
change is proposed is shown in roman):

CONSUMER FINANCIAL PROTECTION ACT OF 2010

           *       *       *       *       *       *       *



TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

           *       *       *       *       *       *       *


Subtitle B--General Powers of the Bureau

           *       *       *       *       *       *       *


SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS ASSOCIATIONS, AND 
                    CREDIT UNIONS.

  (a) Scope of Coverage.--This section shall apply to any 
covered person that is--
          (1) an insured depository institution with total 
        assets of more than [$10,000,000,000] $50,000,000,000 
        and any affiliate thereof; or
          (2) an insured credit union with total assets of more 
        than [$10,000,000,000] $50,000,000,000 and any 
        affiliate thereof.
  (b) Supervision.--
          (1) In general.--The Bureau shall have exclusive 
        authority to require reports and conduct examinations 
        on a periodic basis of persons described in subsection 
        (a) for purposes of--
                  (A) assessing compliance with the 
                requirements of Federal consumer financial 
                laws;
                  (B) obtaining information about the 
                activities subject to such laws and the 
                associated compliance systems or procedures of 
                such persons; and
                  (C) detecting and assessing associated risks 
                to consumers and to markets for consumer 
                financial products and services.
          (2) Coordination.--To minimize regulatory burden, the 
        Bureau shall coordinate its supervisory activities with 
        the supervisory activities conducted by prudential 
        regulators and the State bank regulatory authorities, 
        including consultation regarding their respective 
        schedules for examining such persons described in 
        subsection (a) and requirements regarding reports to be 
        submitted by such persons.
          (3) Use of existing reports.--The Bureau shall, to 
        the fullest extent possible, use--
                  (A) reports pertaining to a person described 
                in subsection (a) that have been provided or 
                required to have been provided to a Federal or 
                State agency; and
                  (B) information that has been reported 
                publicly.
          (4) Preservation of authority.--Nothing in this title 
        may be construed as limiting the authority of the 
        Director to require reports from a person described in 
        subsection (a), as permitted under paragraph (1), 
        regarding information owned or under the control of 
        such person, regardless of whether such information is 
        maintained, stored, or processed by another person.
          (5) Reports of tax law noncompliance.--The Bureau 
        shall provide the Commissioner of Internal Revenue with 
        any report of examination or related information 
        identifying possible tax law noncompliance.
  (c) Primary Enforcement Authority.--
          (1) The bureau to have primary enforcement 
        authority.--To the extent that the Bureau and another 
        Federal agency are authorized to enforce a Federal 
        consumer financial law, the Bureau shall have primary 
        authority to enforce that Federal consumer financial 
        law with respect to any person described in subsection 
        (a).
          (2) Referral.--Any Federal agency, other than the 
        Federal Trade Commission, that is authorized to enforce 
        a Federal consumer financial law may recommend, in 
        writing, to the Bureau that the Bureau initiate an 
        enforcement proceeding with respect to a person 
        described in subsection (a), as the Bureau is 
        authorized to do by that Federal consumer financial 
        law.
          (3) Backup enforcement authority of other federal 
        agency.--If the Bureau does not, before the end of the 
        120-day period beginning on the date on which the 
        Bureau receives a recommendation under paragraph (2), 
        initiate an enforcement proceeding, the other agency 
        referred to in paragraph (2) may initiate an 
        enforcement proceeding, including performing follow up 
        supervisory and support functions incidental thereto, 
        to assure compliance with such proceeding.
  (d) Service Providers.--A service provider to a person 
described in subsection (a) shall be subject to the authority 
of the Bureau under this section, to the same extent as if the 
Bureau were an appropriate Federal banking agency under section 
7(c) of the Bank Service Company Act 12 U.S.C. 1867(c). In 
conducting any examination or requiring any report from a 
service provider subject to this subsection, the Bureau shall 
coordinate with the appropriate prudential regulator.
  (e) Simultaneous and Coordinated Supervisory Action.--
          (1) Examinations.--A prudential regulator and the 
        Bureau shall, with respect to each insured depository 
        institution, insured credit union, or other covered 
        person described in subsection (a) that is supervised 
        by the prudential regulator and the Bureau, 
        respectively--
                  (A) coordinate the scheduling of examinations 
                of the insured depository institution, insured 
                credit union, or other covered person described 
                in subsection (a);
                  (B) conduct simultaneous examinations of each 
                insured depository institution or insured 
                credit union, unless such institution requests 
                examinations to be conducted separately;
                  (C) share each draft report of examination 
                with the other agency and permit the receiving 
                agency a reasonable opportunity (which shall 
                not be less than a period of 30 days after the 
                date of receipt) to comment on the draft report 
                before such report is made final; and
                  (D) prior to issuing a final report of 
                examination or taking supervisory action, take 
                into consideration concerns, if any, raised in 
                the comments made by the other agency.
          (2) Coordination with state bank supervisors.--The 
        Bureau shall pursue arrangements and agreements with 
        State bank supervisors to coordinate examinations, 
        consistent with paragraph (1).
          (3) Avoidance of conflict in supervision.--
                  (A) Request.--If the proposed supervisory 
                determinations of the Bureau and a prudential 
                regulator (in this section referred to 
                collectively as the ``agencies'') are 
                conflicting, an insured depository institution, 
                insured credit union, or other covered person 
                described in subsection (a) may request the 
                agencies to coordinate and present a joint 
                statement of coordinated supervisory action.
                  (B) Joint statement.--The agencies shall 
                provide a joint statement under subparagraph 
                (A), not later than 30 days after the date of 
                receipt of the request of the insured 
                depository institution, credit union, or 
                covered person described in subsection (a).
          (4) Appeals to governing panel.--
                  (A) In general.--If the agencies do not 
                resolve the conflict or issue a joint statement 
                required by subparagraph (B), or if either of 
                the agencies takes or attempts to take any 
                supervisory action relating to the request for 
                the joint statement without the consent of the 
                other agency, an insured depository 
                institution, insured credit union, or other 
                covered person described in subsection (a) may 
                institute an appeal to a governing panel, as 
                provided in this subsection, not later than 30 
                days after the expiration of the period during 
                which a joint statement is required to be filed 
                under paragraph (3)(B).
                  (B) Composition of governing panel.--The 
                governing panel for an appeal under this 
                paragraph shall be composed of--
                          (i) a representative from the Bureau 
                        and a representative of the prudential 
                        regulator, both of whom--
                                  (I) have not participated in 
                                the material supervisory 
                                determinations under appeal; 
                                and
                                  (II) do not directly or 
                                indirectly report to the person 
                                who participated materially in 
                                the supervisory determinations 
                                under appeal; and
                          (ii) one individual representative, 
                        to be determined on a rotating basis, 
                        from among the Board of Governors, the 
                        Corporation, the National Credit Union 
                        Administration, and the Office of the 
                        Comptroller of the Currency, other than 
                        any agency involved in the subject 
                        dispute.
                  (C) Conduct of appeal.--In an appeal under 
                this paragraph--
                          (i) the insured depository 
                        institution, insured credit union, or 
                        other covered person described in 
                        subsection (a)--
                                  (I) shall include in its 
                                appeal all the facts and legal 
                                arguments pertaining to the 
                                matter; and
                                  (II) may, through counsel, 
                                employees, or representatives, 
                                appear before the governing 
                                panel in person or by 
                                telephone; and
                          (ii) the governing panel--
                                  (I) may request the insured 
                                depository institution, insured 
                                credit union, or other covered 
                                person described in subsection 
                                (a), the Bureau, or the 
                                prudential regulator to produce 
                                additional information relevant 
                                to the appeal; and
                                  (II) by a majority vote of 
                                its members, shall provide a 
                                final determination, in 
                                writing, not later than 30 days 
                                after the date of filing of an 
                                informationally complete 
                                appeal, or such longer period 
                                as the panel and the insured 
                                depository institution, insured 
                                credit union, or other covered 
                                person described in subsection 
                                (a) may jointly agree.
                  (D) Public availability of determinations.--A 
                governing panel shall publish all information 
                contained in a determination by the governing 
                panel, with appropriate redactions of 
                information that would be subject to an 
                exemption from disclosure under section 552 of 
                title 5, United States Code.
                  (E) Prohibition against retaliation.--The 
                Bureau and the prudential regulators shall 
                prescribe rules to provide safeguards from 
                retaliation against the insured depository 
                institution, insured credit union, or other 
                covered person described in subsection (a) 
                instituting an appeal under this paragraph, as 
                well as their officers and employees.
                  (F) Limitation.--The process provided in this 
                paragraph shall not apply to a determination by 
                a prudential regulator to appoint a conservator 
                or receiver for an insured depository 
                institution or a liquidating agent for an 
                insured credit union, as the case may be, or a 
                decision to take action pursuant to section 38 
                of the Federal Deposit Insurance Act (12 U.S.C. 
                1831o) or section 212 of the Federal Credit 
                Union Act (112 U.S.C. 1790a), as applicable.
                  (G) Effect on other authority.--Nothing in 
                this section shall modify or limit the 
                authority of the Bureau to interpret, or take 
                enforcement action under, any Federal consumer 
                financial law, or the authority of a prudential 
                regulator to interpret or take enforcement 
                action under any other provision of Federal law 
                for safety and soundness purposes.

SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND CREDIT UNIONS.

  (a) Scope of Coverage.--This section shall apply to any 
covered person that is--
          (1) an insured depository institution with total 
        assets of [$10,000,000,000] $50,000,000,000 or less; or
          (2) an insured credit union with total assets of 
        [$10,000,000,000] $50,000,000,000 or less.
  (b) Reports.--The Director may require reports from a person 
described in subsection (a), as necessary to support the role 
of the Bureau in implementing Federal consumer financial law, 
to support its examination activities under subsection (c), and 
to assess and detect risks to consumers and consumer financial 
markets.
          (1) Use of existing reports.--The Bureau shall, to 
        the fullest extent possible, use--
                  (A) reports pertaining to a person described 
                in subsection (a) that have been provided or 
                required to have been provided to a Federal or 
                State agency; and
                  (B) information that has been reported 
                publicly.
          (2) Preservation of authority.--Nothing in this 
        subsection may be construed as limiting the authority 
        of the Director from requiring from a person described 
        in subsection (a), as permitted under paragraph (1), 
        information owned or under the control of such person, 
        regardless of whether such information is maintained, 
        stored, or processed by another person.
          (3) Reports of tax law noncompliance.--The Bureau 
        shall provide the Commissioner of Internal Revenue with 
        any report of examination or related information 
        identifying possible tax law noncompliance.
  (c) Examinations.--
          (1) In general.--The Bureau may, at its discretion, 
        include examiners on a sampling basis of the 
        examinations performed by the prudential regulator to 
        assess compliance with the requirements of Federal 
        consumer financial law of persons described in 
        subsection (a).
          (2) Agency coordination.--The prudential regulator 
        shall--
                  (A) provide all reports, records, and 
                documentation related to the examination 
                process for any institution included in the 
                sample referred to in paragraph (1) to the 
                Bureau on a timely and continual basis;
                  (B) involve such Bureau examiner in the 
                entire examination process for such person; and
                  (C) consider input of the Bureau concerning 
                the scope of an examination, conduct of the 
                examination, the contents of the examination 
                report, the designation of matters requiring 
                attention, and examination ratings.
  (d) Enforcement.--
          (1) In general.--Except for requiring reports under 
        subsection (b), the prudential regulator is authorized 
        to enforce the requirements of Federal consumer 
        financial laws and, with respect to a covered person 
        described in subsection (a), shall have exclusive 
        authority (relative to the Bureau) to enforce such 
        laws.
          (2) Coordination with prudential regulator.--
                  (A) Referral.--When the Bureau has reason to 
                believe that a person described in subsection 
                (a) has engaged in a material violation of a 
                Federal consumer financial law, the Bureau 
                shall notify the prudential regulator in 
                writing and recommend appropriate action to 
                respond.
                  (B) Response.--Upon receiving a 
                recommendation under subparagraph (A), the 
                prudential regulator shall provide a written 
                response to the Bureau not later than 60 days 
                thereafter.
  (e) Service Providers.--A service provider to a substantial 
number of persons described in subsection (a) shall be subject 
to the authority of the Bureau under section 1025 to the same 
extent as if the Bureau were an appropriate Federal bank agency 
under section 7(c) of the Bank Service Company Act (12 U.S.C. 
1867(c)). When conducting any examination or requiring any 
report from a service provider subject to this subsection, the 
Bureau shall coordinate with the appropriate prudential 
regulator.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 3072, ``the Bureau of Consumer Financial Protection 
Examination and Reporting Threshold Act,'' would significantly 
undermine a key authority of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act of 2010 (Dodd-Frank), by preventing 
the Consumer Bureau from supervising, and enforcing its rules 
against large banks and credit unions with assets between $10 
billion and $50 billion.
    Congress passed the Dodd-Frank Act in response to the worst 
financial crisis since the Great Depression. During this 
crisis, shoddy mortgage lending practices that ripped off 
millions of Americans led to dramatic failures on Wall Street 
and economic pain for Main Street. Notably, the costliest bank 
failure for the government during the financial crisis was not 
that of a megabank, but of IndyMac Bank, which had total 
consolidated assets of $30 billion but caused $12 billion in 
losses to the Federal Deposit Insurance Corporation's Deposit 
Insurance Fund. IndyMac's failure was a direct result of its 
predatory loan portfolio, as well as an unwillingness of its 
regulator, the Office of Thrift Supervision, to stop this 
activity.
    As part of Dodd-Frank, Congress consolidated the disparate 
consumer protection laws into one agency: the Consumer Bureau. 
Congress also authorized the Consumer Bureau with supervisory 
and enforcement authority against only the very largest banks 
and credit unions, those with more than $10 billion in assets, 
such as IndyMac Bank, as well as non-bank financial 
institutions. As of June 30, 2017, the Consumer Bureau 
supervised 124 insured depository institutions out of a total 
of 11,483, representing only one percent of financial 
institutions. Nevertheless, these institutions represent about 
81 percent of all industry assets, ensuring that the Consumer 
Bureau's supervision and enforcement is appropriately targeted.
    H.R. 3072, however, would revoke the Consumer Bureau's 
supervision and enforcement authority for nearly \2/3\ of 
depository institutions subject to Consumer Bureau supervision 
and enforcement by raising the threshold to $50 billion. If 
this bill was enacted two years ago, it would have precluded 
the Consumer Bureau from identifying and stopping institutions 
that were harming consumers. For example, the Consumer Bureau 
stopped a $49 billion bank and its affiliate from 
discriminating against consumers by providing individuals 
living in Puerto Rico and the Virgin Islands with inferior 
credit and charge cards, and required the institutions to pay 
back the 200,000 consumers harmed. The Consumer Bureau also 
ordered another institution with $18 billion in assets to pay 
$27.5 million to nearly 257,000 consumers who were harmed by 
the deceptive marketing the bank used to lure consumers into 
certain costly products. Both of these institutions would have 
been exempt under H.R. 3072, and could still be harming 
consumers if not for the efforts of the Consumer Bureau.
    The Consumer Bureau's authority is a crucial part of its 
ability to conduct rulemaking and bring enforcement actions 
against financial institutions that engage in unfair, 
deceptive, or abusive acts or practices. Limiting the Consumer 
Bureau's supervisory and enforcement authority to only the 
megabanks with more than $50 billion, would only end up harming 
hardworking Americans.
    For these reasons, we oppose H.R. 3072.

                                   Maxine Waters.
                                   Keith Ellison.
                                   Michael E. Capuano.
                                   Denny Heck.
                                   Carolyn B. Maloney.
                                   Al Green.
                                   Stephen F. Lynch.
                                   Brad Sherman.
                                   Ruben J. Kihuen.
                                   Gregory W. Meeks.
                                   Nydia M. Velazquez.
                                   Gwen Moore.
                                   Juan Vargas.

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