S.Amdt. 3831

SA 3831. Mr. SHELBY submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

Strike title X and insert the following:

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 (13) 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 (13)(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) Enumerated consumer laws.--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.);
(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 (c) 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);
(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.); and
(P) the Truth in Savings Act (12 U.S.C. 4301 et seq.).
(12) 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.
(13) Financial product or service.--The term ``financial
product or service''--
(A) means--
(i) extending credit and servicing loans, including
acquiring, purchasing, selling,

[[Page S3229]]

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 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) unknowingly or incidentally processes, stores, or
transmits over the Internet, telephone line, mobile network,
or any other mode of transmission, as part of a stream of
other types of data, financial data in a manner that such
data is undifferentiated from other types of data of the same
form that the person processes, stores, or transmits;
(II) 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
(III) 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 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; or
(bb) provides the information described in item (aa) to an
affiliate of such person; 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; and

(B) does not include the business of insurance.
(14) 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.
(15) 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).
(16) 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).
(17) Person.--The term ``person'' means an individual,
partnership, company, corporation, association (incorporated
or unincorporated), trust, estate, cooperative organization,
or other entity.
(18) 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.
(19) 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.
(20) 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.
(21) 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.
(22) Prudential regulator.--The term ``prudential
regulator'' means--
(A) in the case of an insured depository institution, 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.
(23) 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,

[[Page S3230]]

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.

(24) 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.
(25) 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)).
(26) Stored value.--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.
(27) 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.

(a) Bureau Established.--There is established in the
Federal Reserve System the Bureau of Consumer Financial
Protection, which shall regulate the offering and provision
of consumer financial products or services under the Federal
consumer financial laws.
(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.
(e) Offices.--The principal office of the Bureau shall be
in the District of Columbia. The Director may establish
regional offices of the Bureau, 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 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 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
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 section 18 of the Federal Trade Commission
Act (15 U.S.C. 57a) and 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.

SEC. 1013. ADMINISTRATION.

(a) Personnel.--
(1) Appointment.--
(A) In general.--The Director may fix the number of, and
appoint and direct, all employees of the Bureau.
(B) Employees of the bureau.--The Director 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. Notwithstanding any other provision of law,
all such employees shall be appointed and compensated 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)).
(2) Compensation.--The Director shall at all times provide
compensation and benefits to each class of employees that, at
a minimum, are equivalent to the compensation and benefits
then being provided by the Board of Governors for the
corresponding class of employees.
(b) Specific Functional Units.--
(1) Research.--The Director 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;

[[Page S3231]]

(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; and
(E) consumer behavior with respect to consumer financial
products or services.
(2) Community affairs.--The Director 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 shall establish a unit whose
functions shall include establishing a single, toll-free
telephone number, a website, and a database to facilitate the
centralized collection of, monitoring of, and response to
consumer complaints regarding consumer financial products or
services. The Director shall coordinate with other Federal
agencies to route complaints to other Federal regulators,
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; and
(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.
(C) Reports to the congress.--The Director 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, other Federal agencies, and State agencies,
consistent with Federal law applicable to personally
identifiable information. The prudential regulators and other
Federal agencies shall share data relating to consumer
complaints regarding consumer financial products and services
with the Bureau, consistent with Federal law applicable to
personally identifiable information.
(c) Office of Fair Lending and Equal Opportunity.--
(1) Establishment.--The Director 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
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 and fair housing 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 Fair Lending
and Equal Opportunity, who--
(A) shall be appointed by the Director; and
(B) shall carry out such duties as the Director may
delegate to such Assistant Director.
(d) Office of Financial Literacy.--
(1) Establishment.--The Director shall establish an Office
of Financial Literacy, 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 Literacy 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 Education, through activities including
providing opportunities for consumers to access--
(A) financial counseling;
(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 Literacy 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 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 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 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 of Consumer Financial Protection shall serve as
the Vice Chairman.''.

SEC. 1014. CONSUMER ADVISORY BOARD.

(a) Establishment Required.--The Director 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 shall seek to assemble experts
in consumer protection, financial services, community
development, fair lending, and consumer financial products or
services 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, 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 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.

SEC. 1015. COORDINATION.

The Bureau shall coordinate with the Commission, the
Commodity Futures Trading Commission, and other Federal
agencies and State regulators, as appropriate, to promote
consistent regulatory treatment of consumer financial and
investment products and services.

SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

(a) Appearances Before Congress.--The Director of the
Bureau shall appear before the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services 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 of the House of
Representatives, a report, beginning with the session
following the designated transfer date.
(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;

[[Page S3232]]

(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; and
(8) an analysis of the efforts of the Bureau to fulfill the
fair lending mission of the Bureau.

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 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) Amount adjusted for inflation.--The dollar amount
referred to in subparagraph (A)(iii) shall be adjusted
annually, using the percent by which the average urban
consumer price index for the quarter preceding the date of
the payment differs from the average of that index for the
same quarter in the prior year.
(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
shall provide to the Director of the Office of Management and
Budget copies of the financial operating plans and forecasts
of the Director, as prepared by the Director 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 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 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 to consult with or obtain the consent or approval of
the Director 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.
(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 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 board established.--
There is established in the Federal Reserve Board a separate
fund, to be known as the ``Consumer Financial Protection
Fund'' (referred to in this section as the ``Bureau Fund'').
(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 invest 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 by the Board of Governors 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, 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 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 Board a fund to be known
as the ``Consumer Financial Protection Civil Penalty Fund''
(referred to in this subsection as the ``Civil Penalty
Fund''). 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 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.

[[Page S3233]]

SEC. 1018. EFFECTIVE DATE.

This subtitle shall become effective on the date of
enactment of this Act.

Subtitle B--General Powers of the Bureau

SEC. 1021. PURPOSE, OBJECTIVES, AND FUNCTIONS.

(a) Purpose.--The Bureau shall seek to implement and, where
applicable, enforce Federal consumer financial law
consistently for the purpose of ensuring that markets for
consumer financial products and services are fair,
transparent, and competitive.
(b) Objectives.--The Bureau is authorized to exercise its
authorities under Federal consumer financial law for the
purposes of ensuring that, with respect to consumer financial
products and services--
(1) consumers are provided with timely and understandable
information to make responsible decisions about financial
transactions;
(2) consumers are protected from unfair, deceptive, or
abusive acts and practices and from discrimination;
(3) outdated, unnecessary, or unduly burdensome regulations
are regularly identified and addressed in order to reduce
unwarranted regulatory burdens;
(4) Federal consumer financial law is enforced
consistently, without regard to the status of a person as a
depository institution, in order to promote fair competition;
and
(5) markets for consumer financial products and services
operate transparently and efficiently to facilitate access
and innovation.
(c) Functions.--The primary functions of the Bureau are--
(1) conducting financial education programs;
(2) collecting, investigating, and responding to consumer
complaints;
(3) collecting, researching, monitoring, and publishing
information relevant to the functioning of markets for
consumer financial products and services to identify risks to
consumers and the proper functioning of such markets;
(4) subject to sections 1024 through 1026, supervising
covered persons for compliance with Federal consumer
financial law, and taking appropriate enforcement action to
address violations of Federal consumer financial law;
(5) issuing rules, orders, and guidance implementing
Federal consumer financial law; and
(6) performing such support activities as may be necessary
or useful to facilitate the other functions of the Bureau.

SEC. 1022. RULEMAKING AUTHORITY.

(a) In General.--The Bureau is authorized to exercise its
authorities under Federal consumer financial law to
administer, enforce, and otherwise implement the provisions
of Federal consumer financial law.
(b) Rulemaking, Orders, and Guidance.--
(1) General authority.--The Director may prescribe rules
and issue orders and guidance, as may be necessary or
appropriate to enable the Bureau to administer and carry out
the purposes and objectives of the Federal consumer financial
laws, and to prevent evasions thereof.
(2) Standards for rulemaking.--In prescribing a rule under
the Federal consumer financial laws--
(A) the Bureau shall consider the potential benefits and
costs to consumers and covered persons, including the
potential reduction of access by consumers to consumer
financial products or services resulting from such rule;
(B) the Bureau shall consult with the appropriate
prudential regulators or other Federal agencies prior to
proposing a rule and during the comment process regarding
consistency with prudential, market, or systemic objectives
administered by such agencies; and
(C) if, during the consultation process described in
subparagraph (B), a prudential regulator provides the Bureau
with a written objection to the proposed rule of the Bureau
or a portion thereof, the Bureau shall include in the
adopting release a description of the objection and the basis
for the Bureau decision, if any, regarding such objection,
except that nothing in this clause shall be construed as
altering or limiting the procedures under section 1023 that
may apply to any rule prescribed by the Bureau.
(3) Exemptions.--
(A) In general.--The Bureau, by rule, may conditionally or
unconditionally exempt any class of covered persons, service
providers, or consumer financial products or services, from
any provision of this title, or from any rule issued under
this title, as the Bureau determines necessary or appropriate
to carry out the purposes and objectives of this title,
taking into consideration the factors in subparagraph (B).
(B) Factors.--In issuing an exemption, as permitted under
subparagraph (A), the Bureau shall, as appropriate, take into
consideration--
(i) the total assets of the class of covered persons;
(ii) the volume of transactions involving consumer
financial products or services in which the class of covered
persons engages; and
(iii) existing provisions of law which are applicable to
the consumer financial product or service and the extent to
which such provisions provide consumers with adequate
protections.
(4) Exclusive rulemaking authority.--Notwithstanding any
other provisions of Federal law, to the extent that a
provision of Federal consumer financial law authorizes the
Bureau and another Federal agency to issue regulations under
that provision of law for purposes of assuring compliance
with Federal consumer financial law and any regulations
thereunder, the Bureau shall have the exclusive authority to
prescribe rules subject to those provisions of law.
(c) Monitoring.--
(1) In general.--In order to support its rulemaking and
other functions, the Bureau shall monitor for risks to
consumers in the offering or provision of consumer financial
products or services, including developments in markets for
such products or services.
(2) Considerations.--In allocating its resources to perform
the monitoring required by this section, the Bureau may
consider, among other factors--
(A) likely risks and costs to consumers associated with
buying or using a type of consumer financial product or
service;
(B) understanding by consumers of the risks of a type of
consumer financial product or service;
(C) the legal protections applicable to the offering or
provision of a consumer financial product or service,
including the extent to which the law is likely to adequately
protect consumers;
(D) rates of growth in the offering or provision of a
consumer financial product or service;
(E) the extent, if any, to which the risks of a consumer
financial product or service may disproportionately affect
traditionally underserved consumers; or
(F) the types, number, and other pertinent characteristics
of covered persons that offer or provide the consumer
financial product or service.
(3) Reports.--The Bureau shall publish not fewer than 1
report of significant findings of its monitoring required by
this subsection in each calendar year, beginning with the
first calendar year that begins at least 1 year after the
designated transfer date.
(4) Confidentiality rules.--The Bureau shall prescribe
rules regarding the confidential treatment of information
obtained from persons in connection with the exercise of its
authorities under Federal consumer financial law.
(A) Access by the bureau to reports of other regulators.--
(i) Examination and financial condition reports.--Upon
providing reasonable assurances of confidentiality, the
Bureau shall have access to any report of examination or
financial condition made by a prudential regulator or other
Federal agency having jurisdiction over a covered person or
service provider, and to all revisions made to any such
report.
(ii) Provision of other reports to the bureau.--In addition
to the reports described in clause (i), a prudential
regulator or other Federal agency having jurisdiction over a
covered person or service provider may, in its discretion,
furnish to the Bureau any other report or other confidential
supervisory information concerning any insured depository
institution, credit union, or other entity examined by such
agency under authority of any provision of Federal law.
(B) Access by other regulators to reports of the bureau.--
(i) Examination reports.--Upon providing reasonable
assurances of confidentiality, a prudential regulator, a
State regulator, or any other Federal agency having
jurisdiction over a covered person or service provider shall
have access to any report of examination made by the Bureau
with respect to such person, and to all revisions made to any
such report.
(ii) Provision of other reports to other regulators.--In
addition to the reports described in clause (i), the Bureau
may, in its discretion, furnish to a prudential regulator or
other agency having jurisdiction over a covered person or
service provider any other report or other confidential
supervisory information concerning such person examined by
the Bureau under the authority of any other provision of
Federal law.
(5) Privacy considerations.--In collecting information from
any person, publicly releasing information held by the
Bureau, or requiring covered persons to publicly report
information, the Bureau shall take steps to ensure that
proprietary, personal, or confidential consumer information
that is protected from public disclosure under section 552(b)
or 552a of title 5, United States Code, or any other
provision of law, is not made public under this title.
(d) Assessment of Significant Rules.--
(1) In general.--The Bureau shall conduct an assessment of
each significant rule or order adopted by the Bureau under
Federal consumer financial law. The assessment shall address,
among other relevant factors, the effectiveness of the rule
or order in meeting the purposes and objectives of this title
and the specific goals stated by the Bureau. The assessment
shall reflect available evidence and any data that the Bureau
reasonably may collect.
(2) Reports.--The Bureau shall publish a report of its
assessment under this subsection not later than 5 years after
the effective date of the subject rule or order.
(3) Public comment required.--Before publishing a report of
its assessment, the Bureau shall invite public comment on
recommendations for modifying, expanding, or eliminating the
newly adopted significant rule or order.

[[Page S3234]]

SEC. 1023. REVIEW OF BUREAU REGULATIONS.

(a) Review of Bureau Regulations.--On the petition of a
member agency of the Council, the Council may set aside a
final regulation prescribed by the Bureau, or any provision
thereof, if the Council decides, in accordance with
subsection (c), that the regulation or provision would put
the safety and soundness of the United States banking system
or the stability of the financial system of the United States
at risk.
(b) Petition.--
(1) Procedure.--An agency represented by a member of the
Council may petition the Council, in writing, and in
accordance with rules prescribed pursuant to subsection (f),
to stay the effectiveness of, or set aside, a regulation if
the member agency filing the petition--
(A) has in good faith attempted to work with the Bureau to
resolve concerns regarding the effect of the rule on the
safety and soundness of the United States banking system or
the stability of the financial system of the United States;
and
(B) files the petition with the Council not later than 10
days after the date on which the regulation has been
(C) published in the Federal Register.
(2) Publication.--Any petition filed with the Council under
this section shall be published in the Federal Register and
transmitted contemporaneously with filing to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives.
(c) Stays and Set Asides.--
(1) Stay.--
(A) In general.--Upon the request of any member agency, the
Chairperson of the Council may stay the effectiveness of a
regulation for the purpose of allowing appropriate
consideration of the petition by the Council.
(B) Expiration.--A stay issued under this paragraph shall
expire on the earlier of--
(i) 90 days after the date of filing of the petition under
subsection (b); or
(ii) the date on which the Council makes a decision under
paragraph (3).
(2) No adverse inference.--After the expiration of any stay
imposed under this section, no inference shall be drawn
regarding the validity or enforceability of a regulation
which was the subject of the petition.
(3) Vote.--
(A) In general.--The decision to issue a stay of, or set
aside, any regulation under this section shall be made only
with the affirmative vote in accordance with subparagraph (B)
of \2/3\ of the members of the Council then serving.
(B) Authorization to vote.--A member of the Council may
vote to stay the effectiveness of, or set aside, a final
regulation prescribed by the Bureau only if the agency or
department represented by that member has--
(i) considered any relevant information provided by the
agency submitting the petition and by the Bureau; and
(ii) made an official determination, at a public meeting
where applicable, that the regulation which is the subject of
the petition would put the safety and soundness of the United
States banking system or the stability of the financial
system of the United States at risk.
(4) Decisions to set aside.--
(A) Effect of decision.--A decision by the Council to set
aside a regulation prescribed by the Bureau, or provision
thereof, shall render such regulation, or provision thereof,
unenforceable.
(B) Timely action required.--The Council may not issue a
decision to set aside a regulation, or provision thereof,
which is the subject of a petition under this section after
the expiration of the later of--
(i) 45 days following the date of filing of the petition,
unless a stay is issued under paragraph (1); or
(ii) the expiration of a stay issued by the Council under
this section.
(C) Separate authority.--The issuance of a stay under this
section does not affect the authority of the Council to set
aside a regulation.
(5) Dismissal due to inaction.--A petition under this
section shall be deemed dismissed if the Council has not
issued a decision to set aside a regulation, or provision
thereof, within the period for timely action under paragraph
(4)(B).
(6) Publication of decision.--Any decision under this
subsection to issue a stay of, or set aside, a regulation or
provision thereof shall be published by the Council in the
Federal Register as soon as practicable after the decision is
made, with an explanation of the reasons for the decision.
(7) Rulemaking procedures inapplicable.--The notice and
comment procedures under section 553 of title 5, United
States Code, shall not apply to any decision under this
section of the Council to issue a stay of, or set aside, a
regulation.
(8) Judicial review of decisions by the council.--A
decision by the Council to set aside a regulation prescribed
by the Bureau, or provision thereof, shall be subject to
review under chapter 7 of title 5, United States Code.
(d) Application of Other Law.--Nothing in this section
shall be construed as altering, limiting, or restricting the
application of any other provision of law, except as
otherwise specifically provided in this section, including
chapter 5 and chapter 7 of title 5, United States Code, to a
regulation which is the subject of a petition filed under
this section.
(e) Savings Clause.--Nothing in this section shall be
construed as limiting or restricting the Bureau from engaging
in a rulemaking in accordance with applicable law.
(f) Implementing Rules.--The Council shall prescribe
procedural rules to implement this section.

SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED PERSONS.

(a) Scope of Coverage.--
(1) Applicability.--Notwithstanding any other provision of
this title, and except as provided in paragraph (3), this
section shall apply to any covered person who--
(A) offers or provides origination, brokerage, or servicing
of loans secured by real estate for use by consumers
primarily for personal, family, or household purposes, or
loan modification or foreclosure relief services in
connection with such loans; or
(B) is a larger participant of a market for other consumer
financial products or services, as defined by rule in
accordance with paragraph (2).
(2) Rulemaking to define covered persons subject to this
section.--The Bureau shall consult with the Federal Trade
Commission prior to issuing a rule to define covered persons
subject to this section, in accordance with paragraph (1)(B).
The Bureau shall issue its initial rule within 1 year of the
designated transfer date.
(3) Rules of construction.--
(A) Certain persons excluded.--This section shall not apply
to persons described in section 1025(a) or 1026(a).
(B) Activity levels.--For purposes of computing activity
levels under paragraph (1) or rules issued thereunder,
activities of affiliated companies (other than insured
depository institutions or insured credit unions) shall be
aggregated.
(b) Supervision.--
(1) In general.--The Bureau shall 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 law;
(B) obtaining information about the activities and
compliance systems or procedures of such person; and
(C) detecting and assessing risks to consumers and to
markets for consumer financial products and services.
(2) Risk-based supervision program.--The Bureau shall
exercise its authority under paragraph (1) in a manner
designed to ensure that such exercise, with respect to
persons described in subsection (a), is based on the
assessment by the Bureau of the risks posed to consumers in
the relevant product markets and geographic markets, and
taking into consideration, as applicable--
(A) the asset size of the covered person;
(B) the volume of transactions involving consumer financial
products or services in which the covered person engages;
(C) the risks to consumers created by the provision of such
consumer financial products or services;
(D) the extent to which such institutions are subject to
oversight by State authorities for consumer protection; and
(E) any other factors that the Bureau determines to be
relevant to a class of covered persons.
(3) 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 establishing
their respective schedules for examining persons described in
subsection (a) and requirements regarding reports to be
submitted by such persons.
(4) Use of existing reports.--The Bureau shall, to the
fullest extent possible, use--
(A) reports pertaining to persons 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.
(5) Preservation of authority.--Nothing in this title may
be construed as limiting the authority of the Director to
require reports from persons 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.
(6) 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.
(7) Registration, recordkeeping, and other requirements for
certain persons.--
(A) In general.--The Bureau shall prescribe rules to
facilitate supervision of persons described in subsection (a)
and assessment and detection of risks to consumers.
(B) Registration.--
(i) In general.--The Bureau shall prescribe rules regarding
registration requirements for persons described in subsection
(a).
(ii) Exception for related persons.--The Bureau may not
impose requirements under this section regarding the
registration of a related person.
(iii) Registration information.--Subject to rules
prescribed by the Bureau, the Bureau shall publicly disclose
the registration information about persons described in
subsection (a) to facilitate the ability of consumers to
identify persons described in subsection (a) registered with
the Bureau.
(C) Recordkeeping.--The Bureau may require a person
described in subsection (a), to

[[Page S3235]]

generate, provide, or retain records for the purposes of
facilitating supervision of such persons and assessing and
detecting risks to consumers.
(D) Requirements concerning obligations.--The Bureau may
prescribe rules regarding a person described in subsection
(a), to ensure that such persons are legitimate entities and
are able to perform their obligations to consumers. Such
requirements may include background checks for principals,
officers, directors, or key personnel and bonding or other
appropriate financial requirements.
(E) Consultation with state agencies.--In developing and
implementing requirements under this paragraph, the Bureau
shall consult with State agencies regarding requirements or
systems (including coordinated or combined systems for
registration), where appropriate.
(c) Exclusive Enforcement Authority.--
(1) The bureau to have exclusive enforcement authority.--To
the extent that Federal law authorizes the Bureau and another
Federal agency to enforce Federal consumer financial law, the
Bureau shall have exclusive authority to enforce that Federal
consumer financial law with respect to any person described
in subsection (a)(1)(B).
(2) Referral.--Any Federal agency authorized to enforce a
Federal consumer financial law described in paragraph (1) may
recommend in writing to the Bureau that the Bureau initiate
an enforcement proceeding, as the Bureau is authorized by
that Federal law or by this title.
(3) Coordination with the federal trade commission.--
(A) In general.--The Bureau and the Federal Trade
Commission shall coordinate enforcement actions for
violations of Federal law regarding the offering or provision
of consumer financial products or services by any covered
person that is described in subsection (a)(1)(A), or service
providers thereto. In carrying out this subparagraph, the
agencies shall negotiate an agreement to establish procedures
for such coordination, including procedures for notice to the
other agency, where feasible, prior to initiating a civil
action to enforce a Federal law regarding the offering or
provision of consumer financial products or services.
(B) Civil actions.--Whenever a civil action has been filed
by, or on behalf of, the Bureau or the Federal Trade
Commission for any violation of any provision of Federal law
described in subparagraph (A), or any regulation prescribed
under such provision of law--
(i) the other agency may not, during the pendency of that
action, institute a civil action under such provision of law
against any defendant named in the complaint in such pending
action for any violation alleged in the complaint; and
(ii) the Bureau or the Federal Trade Commission may
intervene as a party in any such action brought by the other
agency, and, upon intervening--

(I) be heard on all matters arising in such enforcement
action; and
(II) file petitions for appeal in such actions.

(C) Agreement terms.--The terms of any agreement negotiated
under subparagraph (A) may modify or supersede the provisions
of subparagraph (B).
(D) Deadline.--The agencies shall reach the agreement
required under subparagraph (A) not later than 6 months after
the designated transfer date.
(d) Exclusive Rulemaking and Examination Authority.--
Notwithstanding any other provision of Federal law, to the
extent that Federal law authorizes the Bureau and another
Federal agency to issue regulations or guidance, conduct
examinations, or require reports from a person described in
subsection (a) under such law for purposes of assuring
compliance with Federal consumer financial law and any
regulations thereunder, the Bureau shall have the exclusive
authority to prescribe rules, issue guidance, conduct
examinations, require reports, or issue exemptions with
regard to a person described in subsection (a), subject to
those provisions of law.
(e) 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
such service provider were engaged in a service relationship
with a bank, and 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, as applicable.
(f) Preservation of Farm Credit Administration Authority.--
No provision of this title may be construed as modifying,
limiting, or otherwise affecting the authority of the Farm
Credit Administration.

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

(a) Scope of Coverage.--
(1) Applicability.--This section shall apply to any covered
person that is--
(A) an insured depository institution with total assets of
more than $10,000,000,000 and any affiliate thereof; or
(B) an insured credit union with total assets of more than
$10,000,000,000 and any affiliate thereof.
(2) Rule of construction.--For purposes of determining
total assets under this section and section 1026, the Bureau
shall rely on the same regulations and interim methodologies
specified in section 312(e).
(b) Supervision.--
(1) In general.--The Bureau shall 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 and
compliance systems or procedures of such persons; and
(C) detecting and assessing 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 establishing
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, as permitted by the
subject provision of Federal law.
(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, insured credit union, or other
covered person described in subsection (a), 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.

[[Page S3236]]

(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.

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 or less; or
(2) an insured credit union with total assets of
$10,000,000,000 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 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 shall have exclusive
authority to enforce compliance with respect to a person
described in subsection (a).
(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.

SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU;
PRESERVATION OF AUTHORITIES.

(a) Exclusion for Merchants, Retailers, and Other Sellers
of Nonfinancial Goods or Services.--
(1) Sale or brokerage of nonfinancial good or service.--The
Bureau may not exercise any rulemaking, supervisory,
enforcement or other authority under this title with respect
to a person who is a merchant, retailer, or seller of any
nonfinancial good or service and is engaged in the sale or
brokerage of such nonfinancial good or service, except to the
extent that such person is engaged in offering or providing
any consumer financial product or service, or is otherwise
subject to any enumerated consumer law or any law for which
authorities are transferred under subtitle F or H.
(2) Offering or provision of certain consumer financial
products or services in connection with the sale or brokerage
of nonfinancial good or service.--
(A) In general.--Except as provided in subparagraph (B),
and subject to subparagraph (C), the Bureau may not exercise
any rulemaking, supervisory, enforcement, or other authority
under this title with respect to a merchant, retailer, or
seller of nonfinancial goods or services who--
(i) extends credit directly to a consumer, in a case in
which the good or service being provided is not itself a
consumer financial product or service (other than credit
described in this subparagraph), exclusively for the purpose
of enabling that consumer to purchase such nonfinancial good
or service directly from the merchant, retailer, or seller;
(ii) directly, or through an agreement with another person,
collects debt arising from credit extended as described in
clause (i); or
(iii) sells or conveys debt described in clause (i) that is
delinquent or otherwise in default.
(B) Applicability.--Subparagraph (A) does not apply to any
credit transaction or collection of debt, other than as
described in subparagraph (C), arising from a transaction
described in subparagraph (A)--
(i) in which the merchant, retailer, or seller of
nonfinancial goods or services assigns, sells or otherwise
conveys to another person such debt owed by the consumer
(except for a sale of debt that is delinquent or otherwise in
default, as described in subparagraph (A)(iii));
(ii) in which the credit extended exceeds the market value
of the nonfinancial good or service provided, or the Bureau
otherwise finds that the sale of the nonfinancial good or
service is done as a subterfuge, so as to evade or circumvent
the provisions of this title; or
(iii) in which the merchant, retailer, or seller of
nonfinancial goods or services regularly extends credit and
the credit is--

(I) subject to a finance charge; or
(II) payable by written agreement in more than 4
installments.

(C) Limitation.--Notwithstanding subparagraph (B), the
Bureau may not exercise any rulemaking, supervisory,
enforcement, or

[[Page S3237]]

other authority under this title with respect to a merchant,
retailer, or seller of nonfinancial goods or services that is
not engaged significantly in offering or providing consumer
financial products or services.
(D) Rule of construction.--No provision of this title may
be construed as modifying, limiting, or superseding the
supervisory or enforcement authority of the Federal Trade
Commission or any other agency (other than the Bureau) with
respect to credit extended, or the collection of debt arising
from such extension, directly by a merchant or retailer to a
consumer exclusively for the purpose of enabling that
consumer to purchase nonfinancial goods or services directly
from the merchant or retailer.
(b) Exclusion for Real Estate Brokerage Activities.--
(1) Real estate brokerage activities excluded.--Without
limiting subsection (a), and except as permitted in paragraph
(2), the Bureau may not exercise any rulemaking, supervisory,
enforcement, or other authority under this title with respect
to a person that is licensed or registered as a real estate
broker or real estate agent, in accordance with State law, to
the extent that such person--
(A) acts as a real estate agent or broker for a buyer,
seller, lessor, or lessee of real property;
(B) brings together parties interested in the sale,
purchase, lease, rental, or exchange of real property;
(C) negotiates, 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 the
provision of financing with respect to any such transaction);
or
(D) offers to engage in any activity, or act in any
capacity, described in subparagraph (A), (B), or (C).
(2) Description of activities.--Paragraph (1) shall not
apply to any person to the extent that such person is engaged
in the offering or provision of any consumer financial
product or service or is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred
under subtitle F or H.
(c) Exclusion for Manufactured Home Retailers and Modular
Home Retailers.--
(1) In general.--The Director may not exercise any
rulemaking, supervisory, enforcement, or other authority over
a person to the extent that--
(A) such person is not described in paragraph (2); and
(B) such person--
(i) acts as an agent or broker for a buyer or seller of a
manufactured home or a modular home;
(ii) facilitates the purchase by a consumer of a
manufactured home or modular home, by negotiating the
purchase price or terms of the sales contract (other than
providing financing with respect to such transaction); or
(iii) offers to engage in any activity described in clause
(i) or (ii).
(2) Description of activities.--A person is described in
this paragraph to the extent that such person is engaged in
the offering or provision of any consumer financial product
or service or is otherwise subject to any enumerated consumer
law or any law for which authorities are transferred under
subtitle F or H.
(3) Definitions.--For purposes of this subsection, the
following definitions shall apply:
(A) Manufactured home.--The term ``manufactured home'' has
the same meaning as in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402).
(B) Modular home.--The term ``modular home'' means a house
built in a factory in 2 or more modules that meet the State
or local building codes where the house will be located, and
where such modules are transported to the building site,
installed on foundations, and completed.
(d) Exclusion for Accountants and Tax Preparers.--
(1) In general.--Except as permitted in paragraph (2), the
Bureau may not exercise any rulemaking, supervisory,
enforcement, or other authority over--
(A) any person that is a certified public accountant,
permitted to practice as a certified public accounting firm,
or certified or licensed for such purpose by a State, or any
individual who is employed by or holds an ownership interest
with respect to a person described in this subparagraph, when
such person is performing or offering to perform--
(i) customary and usual accounting activities, including
the provision of accounting, tax, advisory, or other services
that are subject to the regulatory authority of a State board
of accountancy or a Federal authority; or
(ii) other services that are incidental to such customary
and usual accounting activities, to the extent that such
incidental services are not offered or provided--

(I) by the person separate and apart from such customary
and usual accounting activities; or
(II) to consumers who are not receiving such customary and
usual accounting activities; or

(B) any person, other than a person described in
subparagraph (A) that performs income tax preparation
activities for consumers.
(2) Description of activities.--
(A) In general.--Paragraph (1) shall not apply to any
person described in paragraph (1)(A) or (1)(B) to the extent
that such person is engaged in any activity which is not a
customary and usual accounting activity described in
paragraph (1)(A) or incidental thereto but which is the
offering or provision of any consumer financial product or
service, except to the extent that a person described in
paragraph (1)(A) is engaged in an activity which is a
customary and usual accounting activity described in
paragraph (1)(A), or incidental thereto.
(B) Not a customary and usual accounting activity.--For
purposes of this subsection, extending or brokering credit is
not a customary and usual accounting activity, or incidental
thereto.
(C) Rule of construction.--For purposes of subparagraphs
(A) and (B), a person described in paragraph (1)(A) shall not
be deemed to be extending credit, if such person is only
extending credit directly to a consumer, exclusively for the
purpose of enabling such consumer to purchase services
described in clause (i) or (ii) of paragraph (1)(A) directly
from such person, and such credit is--
(i) not subject to a finance charge; and
(ii) not payable by written agreement in more than 4
installments.
(D) Other limitations.--Paragraph (1) does not apply to any
person described in paragraph (1)(A) or (1)(B) that is
otherwise subject to any enumerated consumer law or any law
for which authorities are transferred under subtitle F or H.
(e) Exclusion for Attorneys.--
(1) In general.--The Bureau may not exercise any authority
to conduct examinations of an attorney licensed by a State,
to the extent that the attorney is engaged in the practice of
law under the laws of such State.
(2) Exception for enumerated consumer laws and transferred
authorities.--Paragraph (1) shall not apply to an attorney
who is engaged in the offering or provision of any consumer
financial product or service, or is otherwise subject to any
enumerated consumer law or any law for which authorities are
transferred under subtitle F or H.
(f) Exclusion for Persons Regulated by a State Insurance
Regulator.--
(1) In general.--No provision of this title shall be
construed as altering, amending, or affecting the authority
of any State insurance regulator to adopt rules, initiate
enforcement proceedings, or take any other action with
respect to a person regulated by a State insurance regulator.
Except as provided in paragraph (2), the Bureau shall have no
authority to exercise any power to enforce this title with
respect to a person regulated by a State insurance regulator.
(2) Description of activities.--Paragraph (1) does not
apply to any person described in such paragraph to the extent
that such person is engaged in the offering or provision of
any consumer financial product or service or is otherwise
subject to any enumerated consumer law or any law for which
authorities are transferred under subtitle F or H.
(g) Exclusion for Employee Benefit and Compensation Plans
and Certain Other Arrangements Under the Internal Revenue
Code of 1986.--
(1) Preservation of authority of other agencies.--No
provision of this title shall be construed as altering,
amending, or affecting the authority of the Secretary of the
Treasury, the Secretary of Labor, or the Commissioner of
Internal Revenue to adopt regulations, initiate enforcement
proceedings, or take any actions with respect to any
specified plan or arrangement.
(2) Activities not constituting the offering or provision
of any consumer financial product or service.--For purposes
of this title, a person shall not be treated as having
engaged in the offering or provision of any consumer
financial product or service solely because such person is a
specified plan or arrangement, or is engaged in the activity
of establishing or maintaining, for the benefit of employees
of such person (or for members of an employee organization),
any specified plan or arrangement.
(3) Limitation on bureau authority.--
(A) In general.--Except as provided under subparagraphs (B)
and (C), the Bureau may not exercise any rulemaking or
enforcement authority with respect to products or services
that relate to any specified plan or arrangement.
(B) Bureau action only pursuant to agency request.--The
Secretary and the Secretary of Labor may jointly issue a
written request to the Bureau regarding implementation of
appropriate consumer protection standards under this title
with respect to the provision of services relating to any
specified plan or arrangement. Subject to a request made
under this subparagraph, the Bureau may exercise rulemaking
authority, and may act to enforce a rule prescribed pursuant
to such request, in accordance with the provisions of this
title. A request made by the Secretary and the Secretary of
Labor under this subparagraph shall describe the basis for,
and scope of, appropriate consumer protection standards to be
implemented under this title with respect to the provision of
services relating to any specified plan or arrangement.
(C) Description of products or services.--To the extent
that a person engaged in providing products or services
relating to any specified plan or arrangement is subject to
any enumerated consumer law or any law for which authorities
are transferred under subtitle F or H, subparagraph (A) shall
not apply with respect to that law.
(4) Specified plan or arrangement.--For purposes of this
subsection, the term ``specified plan or arrangement'' means
any plan, account, or arrangement described in section

[[Page S3238]]

220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, or 530 of
the Internal Revenue Code of 1986, or any employee benefit or
compensation plan or arrangement, including a plan that is
subject to title I of the Employee Retirement Income Security
Act of 1974.
(h) Persons Regulated by a State Securities Commission.--
(1) In general.--No provision of this title shall be
construed as altering, amending, or affecting the authority
of any securities commission (or any agency or office
performing like functions) of any State to adopt rules,
initiate enforcement proceedings, or take any other action
with respect to a person regulated by any securities
commission (or any agency or office performing like
functions) of any State. Except as permitted in paragraph (2)
and subsection (f), the Bureau shall have no authority to
exercise any power to enforce this title with respect to a
person regulated by any securities commission (or any agency
or office performing like functions) of any State, but only
to the extent that the person acts in such regulated
capacity.
(2) Description of activities.--Paragraph (1) shall not
apply to any person to the extent such person is engaged in
the offering or provision of any consumer financial product
or service, or is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred
under subtitle F or H.
(i) Exclusion for Persons Regulated by the Commission.--
(1) In general.--No provision of this title may be
construed as altering, amending, or affecting the authority
of the Commission to adopt rules, initiate enforcement
proceedings, or take any other action with respect to a
person regulated by the Commission. The Bureau shall have no
authority to exercise any power to enforce this title with
respect to a person regulated by the Commission.
(2) Consultation and coordination.--Notwithstanding
paragraph (1), the Commission shall consult and coordinate,
where feasible, with the Bureau with respect to any rule
(including any advance notice of proposed rulemaking)
regarding an investment product or service that is the same
type of product as, or that competes directly with, a
consumer financial product or service that is subject to the
jurisdiction of the Bureau under this title or under any
other law. In carrying out this paragraph, the agencies shall
negotiate an agreement to establish procedures for such
coordination, including procedures for providing advance
notice to the Bureau when the Commission is initiating a
rulemaking.
(j) Exclusion for Persons Regulated by the Commodity
Futures Trading Commission.--
(1) In general.--No provision of this title shall be
construed as altering, amending, or affecting the authority
of the Commodity Futures Trading Commission to adopt rules,
initiate enforcement proceedings, or take any other action
with respect to a person regulated by the Commodity Futures
Trading Commission. The Bureau shall have no authority to
exercise any power to enforce this title with respect to a
person regulated by the Commodity Futures Trading Commission.
(2) Consultation and coordination.--Notwithstanding
paragraph (1), the Commodity Futures Trading Commission shall
consult and coordinate with the Bureau with respect to any
rule (including any advance notice of proposed rulemaking)
regarding a product or service that is the same type of
product as, or that competes directly with, a consumer
financial product or service that is subject to the
jurisdiction of the Bureau under this title or under any
other law.
(k) Exclusion for Persons Regulated by the Farm Credit
Administration.--
(1) In general.--No provision of this title shall be
construed as altering, amending, or affecting the authority
of the Farm Credit Administration to adopt rules, initiate
enforcement proceedings, or take any other action with
respect to a person regulated by the Farm Credit
Administration. The Bureau shall have no authority to
exercise any power to enforce this title with respect to a
person regulated by the Farm Credit Administration.
(2) Definition.--For purposes of this subsection, the term
``person regulated by the Farm Credit Administration'' means
any Farm Credit System institution that is chartered and
subject to the provisions of the Farm Credit Act of 1971 (12
U.S.C. 2001 et seq.).
(l) Exclusion for Activities Relating to Charitable
Contributions.--
(1) In general.--The Director and the Bureau may not
exercise any rulemaking, supervisory, enforcement, or other
authority, including authority to order penalties, over any
activities related to the solicitation or making of voluntary
contributions to a tax-exempt organization as recognized by
the Internal Revenue Service, by any agent, volunteer, or
representative of such organizations to the extent the
organization, agent, volunteer, or representative thereof is
soliciting or providing advice, information, education, or
instruction to any donor or potential donor relating to a
contribution to the organization.
(2) Limitation.--The exclusion in paragraph (1) does not
apply to other activities not described in paragraph (1) that
are the offering or provision of any consumer financial
product or service, or are otherwise subject to any
enumerated consumer law or any law for which authorities are
transferred under subtitle F or H.
(m) Insurance.--The Bureau may not define as a financial
product or service, by regulation or otherwise, engaging in
the business of insurance.
(n) Limited Authority of the Bureau.--Notwithstanding
subsections (a) through (h) and (l), a person subject to or
described in one or more of such subsections--
(1) may be a service provider; and
(2) may be subject to requests from, or requirements
imposed by, the Bureau regarding information in order to
carry out the responsibilities and functions of the Bureau
and in accordance with section 1022, 1052, or 1053.
(o) No Authority To Impose Usury Limit.--No provision of
this title shall be construed as conferring authority on the
Bureau to establish a usury limit applicable to an extension
of credit offered or made by a covered person to a consumer,
unless explicitly authorized by law.
(p) Attorney General.--No provision of this title,
including section 1024(c)(1), shall affect the authorities of
the Attorney General under otherwise applicable provisions of
law.
(q) Secretary of the Treasury.--No provision of this title
shall affect the authorities of the Secretary, including with
respect to prescribing rules, initiating enforcement
proceedings, or taking other actions with respect to a person
that performs income tax preparation activities for
consumers.
(r) Deposit Insurance and Share Insurance.--Nothing in this
title shall affect the authority of the Corporation under the
Federal Deposit Insurance Act or the National Credit Union
Administration Board under the Federal Credit Union Act as to
matters related to deposit insurance and share insurance,
respectively.

SEC. 1028. AUTHORITY TO RESTRICT MANDATORY PRE-DISPUTE
ARBITRATION.

(a) Study and Report.--The Bureau shall conduct a study of,
and shall provide a report to Congress concerning, the use of
agreements providing for arbitration of any future dispute
between covered persons and consumers in connection with the
offering or providing of consumer financial products or
services.
(b) Further Authority.--The Bureau, by regulation, may
prohibit or impose conditions or limitations on the use of an
agreement between a covered person and a consumer for a
consumer financial product or service providing for
arbitration of any future dispute between the parties, if the
Bureau finds that such a prohibition or imposition of
conditions or limitations is in the public interest and for
the protection of consumers. The findings in such rule shall
be consistent with the study conducted under subsection (a).
(c) Limitation.--The authority described in subsection (b)
may not be construed to prohibit or restrict a consumer from
entering into a voluntary arbitration agreement with a
covered person after a dispute has arisen.
(d) Effective Date.--Notwithstanding any other provision of
law, any regulation prescribed by the Bureau under subsection
(a) shall apply, consistent with the terms of the regulation,
to any agreement between a consumer and a covered person
entered into after the end of the 180-day period beginning on
the effective date of the regulation, as established by the
Bureau.

SEC. 1029. EFFECTIVE DATE.

This subtitle shall become effective on the designated
transfer date.

Subtitle C--Specific Bureau Authorities

SEC. 1031. PROHIBITING UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR
PRACTICES.

(a) In General.--The Bureau may take any action authorized
under subtitle E to prevent a covered person or service
provider from committing or engaging in an unfair, deceptive,
or abusive act or practice under Federal law in connection
with any transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial
product or service.
(b) Rulemaking.--The Bureau may prescribe rules applicable
to a covered person or service provider identifying as
unlawful unfair, deceptive, or abusive acts or practices in
connection with any transaction with a consumer for a
consumer financial product or service, or the offering of a
consumer financial product or service. Rules under this
section may include requirements for the purpose of
preventing such acts or practices.
(c) Unfairness.--
(1) In general.--The Bureau shall have no authority under
this section to declare an act or practice in connection with
a transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial
product or service, to be unlawful on the grounds that such
act or practice is unfair, unless the Bureau has a reasonable
basis to conclude that--
(A) the act or practice causes or is likely to cause
substantial injury to consumers which is not reasonably
avoidable by consumers; and
(B) such substantial injury is not outweighed by
countervailing benefits to consumers or to competition.
(2) Consideration of public policies.--In determining
whether an act or practice is unfair, the Bureau may consider
established public policies as evidence to be considered with
all other evidence. Such public policy considerations may not
serve as a primary basis for such determination.
(d) Abusive.--The Bureau shall have no authority under this
section to declare an act

[[Page S3239]]

or practice abusive in connection with the provision of a
consumer financial product or service, unless the act or
practice--
(1) materially interferes with the ability of a consumer to
understand a term or condition of a consumer financial
product or service; or
(2) takes unreasonable advantage of--
(A) a lack of understanding on the part of the consumer of
the material risks, costs, or conditions of the product or
service;
(B) the inability of the consumer to protect the interests
of the consumer in selecting or using a consumer financial
product or service; or
(C) the reasonable reliance by the consumer on a covered
person to act in the interests of the consumer.
(e) Consultation.--In prescribing rules under this section,
the Bureau shall consult with the Federal banking agencies,
or other Federal agencies, as appropriate, concerning the
consistency of the proposed rule with prudential, market, or
systemic objectives administered by such agencies.

SEC. 1032. DISCLOSURES.

(a) In General.--The Bureau may prescribe rules to ensure
that the features of any consumer financial product or
service, both initially and over the term of the product or
service, are fully, accurately, and effectively disclosed to
consumers in a manner that permits consumers to understand
the costs, benefits, and risks associated with the product or
service, in light of the facts and circumstances.
(b) Model Disclosures.--
(1) In general.--Any final rule prescribed by the Bureau
under this section requiring disclosures may include a model
form that may be used at the option of the covered person for
provision of the required disclosures.
(2) Format.--A model form issued pursuant to paragraph (1)
shall contain a clear and conspicuous disclosure that, at a
minimum--
(A) uses plain language comprehensible to consumers;
(B) contains a clear format and design, such as an easily
readable type font; and
(C) succinctly explains the information that must be
communicated to the consumer.
(3) Consumer testing.--Any model form issued pursuant to
this subsection shall be validated through consumer testing.
(c) Basis for Rulemaking.--In prescribing rules under this
section, the Bureau shall consider available evidence about
consumer awareness, understanding of, and responses to
disclosures or communications about the risks, costs, and
benefits of consumer financial products or services.
(d) Safe Harbor.--Any covered person that uses a model form
included with a rule issued under this section shall be
deemed to be in compliance with the disclosure requirements
of this section with respect to such model form.
(e) Trial Disclosure Programs.--
(1) In general.--The Bureau may permit a covered person to
conduct a trial program that is limited in time and scope,
subject to specified standards and procedures, for the
purpose of providing trial disclosures to consumers that are
designed to improve upon any model form issued pursuant to
subsection (b)(1), or any other model form issued to
implement an enumerated statute, as applicable.
(2) Safe harbor.--The standards and procedures issued by
the Bureau shall be designed to encourage covered persons to
conduct trial disclosure programs. For the purposes of
administering this subsection, the Bureau may establish a
limited period during which a covered person conducting a
trial disclosure program shall be deemed to be in compliance
with, or may be exempted from, a requirement of a rule or an
enumerated consumer law.
(3) Public disclosure.--The rules of the Bureau shall
provide for public disclosure of trial disclosure programs,
which public disclosure may be limited, to the extent
necessary to encourage covered persons to conduct effective
trials.
(f) Combined Mortgage Loan Disclosure.--Not later than 1
year after the designated transfer date, the Bureau shall
propose for public comment rules and model disclosures that
combine the disclosures required under the Truth in Lending
Act and the Real Estate Settlement Procedures Act of 1974,
into a single, integrated disclosure for mortgage loan
transactions covered by those laws, unless the Bureau
determines that any proposal issued by the Board of Governors
and the Secretary of Housing and Urban Development carries
out the same purpose.

SEC. 1033. CONSUMER RIGHTS TO ACCESS INFORMATION.

(a) In General.--Subject to rules prescribed by the Bureau,
a covered person shall make available to a consumer, upon
request, information in the control or possession of the
covered person concerning the consumer financial product or
service that the consumer obtained from such covered person,
including information relating to any transaction, series of
transactions, or to the account including costs, charges and
usage data. The information shall be made available in an
electronic form usable by consumers.
(b) Exceptions.--A covered person may not be required by
this section to make available to the consumer--
(1) any confidential commercial information, including an
algorithm used to derive credit scores or other risk scores
or predictors;
(2) any information collected by the covered person for the
purpose of preventing fraud or money laundering, or
detecting, or making any report regarding other unlawful or
potentially unlawful conduct;
(3) any information required to be kept confidential by any
other provision of law; or
(4) any information that the covered person cannot retrieve
in the ordinary course of its business with respect to that
information.
(c) No Duty To Maintain Records.--Nothing in this section
shall be construed to impose any duty on a covered person to
maintain or keep any information about a consumer.
(d) Standardized Formats for Data.--The Bureau, by rule,
shall prescribe standards applicable to covered persons to
promote the development and use of standardized formats for
information, including through the use of machine readable
files, to be made available to consumers under this section.
(e) Consultation.--The Bureau shall, when prescribing any
rule under this section, consult with the Federal banking
agencies and the Federal Trade Commission to ensure that the
rules--
(1) impose substantively similar requirements on covered
persons;
(2) take into account conditions under which covered
persons do business both in the United States and in other
countries; and
(3) do not require or promote the use of any particular
technology in order to develop systems for compliance.

SEC. 1034. RESPONSE TO CONSUMER COMPLAINTS AND INQUIRIES.

(a) Timely Regulator Response to Consumers.--The Bureau
shall establish, in consultation with the appropriate Federal
regulatory agencies, reasonable procedures to provide a
timely response to consumers, in writing where appropriate,
to complaints against, or inquiries concerning, a covered
person, including--
(1) all steps that have been taken by the regulator in
response to the complaint or inquiry of the consumer;
(2) any responses received by the regulator from the
covered person; and
(3) any follow-up actions or planned follow-up actions by
the regulator in response to the complaint or inquiry of the
consumer.
(b) Timely Response to Regulator by Covered Person.--A
covered person subject to supervision and primary enforcement
by the Bureau pursuant to section 1025 shall provide a timely
response, in writing where appropriate, to the Bureau, the
prudential regulators, and any other agency having
jurisdiction over such covered person concerning a consumer
complaint or inquiry, including--
(1) steps that have been taken by the covered person to
respond to the complaint or inquiry of the consumer;
(2) responses received by the covered person from the
consumer; and
(3) follow-up actions or planned follow-up actions by the
covered person to respond to the complaint or inquiry of the
consumer.
(c) Provision of Information to Consumers.--
(1) In general.--A covered person subject to supervision
and primary enforcement by the Bureau pursuant to section
1025 shall, in a timely manner, comply with a consumer
request for information in the control or possession of such
covered person concerning the consumer financial product or
service that the consumer obtained from such covered person,
including supporting written documentation, concerning the
account of the consumer.
(2) Exceptions.--A covered person subject to supervision
and primary enforcement by the Bureau pursuant to section
1025, a prudential regulator, and any other agency having
jurisdiction over a covered person subject to supervision and
primary enforcement by the Bureau pursuant to section 1025
may not be required by this section to make available to the
consumer--
(A) any confidential commercial information, including an
algorithm used to derive credit scores or other risk scores
or predictors;
(B) any information collected by the covered person for the
purpose of preventing fraud or money laundering, or detecting
or making any report regarding other unlawful or potentially
unlawful conduct;
(C) any information required to be kept confidential by any
other provision of law; or
(D) any nonpublic or confidential information, including
confidential supervisory information.
(d) Agreements With Other Agencies.--The Bureau shall enter
into a memorandum of understanding with any affected Federal
regulatory agency to establish procedures by which any
covered person, and the prudential regulators, and any other
agency having jurisdiction over a covered person, including
the Secretary of the Department of Housing and Urban
Development and the Secretary of Education, shall comply with
this section.

SEC. 1035. PRIVATE EDUCATION LOAN OMBUDSMAN.

(a) Establishment.--The Secretary, in consultation with the
Director, 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.

[[Page S3240]]

(b) Public Information.--The Secretary and the Director
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,
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, 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).

SEC. 1036. EFFECTIVE DATE.

This subtitle shall take effect on the designated transfer
date.

Subtitle D--Preservation of State Law

SEC. 1041. RELATION TO STATE LAW.

(a) In General.--
(1) Rule of construction.--This title, other than sections
1044 through 1048, may not be construed as annulling,
altering, or affecting, or exempting any person subject to
the provisions of this title from complying with, the
statutes, regulations, orders, or interpretations in effect
in any State, except to the extent that any such provision of
law is inconsistent with the provisions of this title, and
then only to the extent of the inconsistency.
(2) Greater protection under state law.--For purposes of
this subsection, a statute, regulation, order, or
interpretation in effect in any State is not inconsistent
with the provisions of this title if the protection that such
statute, regulation, order, or interpretation affords to
consumers is greater than the protection provided under this
title. A determination regarding whether a statute,
regulation, order, or interpretation in effect in any State
is inconsistent with the provisions of this title may be made
by the Bureau on its own motion or in response to a
nonfrivolous petition initiated by any interested person.
(b) Relation to Other Provisions of Enumerated Consumer
Laws That Relate to State Law.--No provision of this title,
except as provided in section 1083, shall be construed as
modifying, limiting, or superseding the operation of any
provision of an enumerated consumer law that relates to the
application of a law in effect in any State with respect to
such Federal law.
(c) Additional Consumer Protection Regulations in Response
to State Action.--
(1) Notice of proposed rule required.--The Bureau shall
issue a notice of proposed rulemaking whenever a majority of
the States has enacted a resolution in support of the
establishment or modification of a consumer protection
regulation by the Bureau.
(2) Bureau considerations required for issuance of final
regulation.--Before prescribing a final regulation based upon
a notice issued pursuant to paragraph (1), the Bureau shall
take into account whether--
(A) the proposed regulation would afford greater protection
to consumers than any existing regulation;
(B) the intended benefits of the proposed regulation for
consumers would outweigh any increased costs or
inconveniences for consumers, and would not discriminate
unfairly against any category or class of consumers; and
(C) a Federal banking agency has advised that the proposed
regulation is likely to present an unacceptable safety and
soundness risk to insured depository institutions.
(3) Explanation of considerations.--The Bureau--
(A) shall include a discussion of the considerations
required in paragraph (2) in the Federal Register notice of a
final regulation prescribed pursuant to this subsection; and
(B) whenever the Bureau determines not to prescribe a final
regulation, shall publish an explanation of such
determination in the Federal Register, and provide a copy of
such explanation to each State that enacted a resolution in
support of the proposed regulation, the Committee on
Financial Services of the House of Representatives, and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
(4) Reservation of authority.--No provision of this
subsection shall be construed as limiting or restricting the
authority of the Bureau to enhance consumer protection
standards established pursuant to this title in response to
its own motion or in response to a request by any other
interested person.
(5) Rule of construction.--No provision of this subsection
shall be construed as exempting the Bureau from complying
with subchapter II of chapter 5 of title 5, United States
Code.
(6) Definition.--For purposes of this subsection, the term
``consumer protection regulation'' means a regulation that
the Bureau is authorized to prescribe under the Federal
consumer financial laws.

SEC. 1042. PRESERVATION OF ENFORCEMENT POWERS OF STATES.

(a) In General.--
(1) Action by state.--The attorney general (or the
equivalent thereof) of any State may bring a civil action in
the name of such State, as parens patriae on behalf of
natural persons residing in such State, in any district court
of the United States in that State or in State court having
jurisdiction over the defendant, to enforce provisions of
this title or regulations issued thereunder and to secure
remedies under provisions of this title or remedies otherwise
provided under other law. A State regulator may bring a civil
action or other appropriate proceeding to enforce the
provisions of this title or regulations issued thereunder
with respect to any entity that is State-chartered,
incorporated, licensed, or otherwise authorized to do
business under State law, and to secure remedies under
provisions of this title or remedies otherwise provided under
other provisions of law with respect to a State-chartered
entity.
(2) Rule of construction.--No provision of this title shall
be construed as modifying, limiting, or superseding the
operation of any provision of an enumerated consumer law that
relates to the authority of a State attorney general or State
regulator to enforce such Federal law.
(b) Consultation Required.--
(1) Notice.--
(A) In general.--Before initiating any action in a court or
other administrative or regulatory proceeding against any
covered person to enforce any provision of this title,
including any regulation prescribed by the Director under
this title, a State attorney general or State regulator shall
timely provide a copy of the complete complaint to be filed
and written notice describing such action or proceeding to
the Bureau and the prudential regulator, if any, or the
designee thereof.
(B) Emergency action.--If prior notice is not practicable,
the State attorney general or State regulator shall provide a
copy of the complete complaint and the notice to the Bureau
and the prudential regulator, if any, immediately upon
instituting the action or proceeding.
(C) Contents of notice.--The notification required under
this paragraph shall, at a minimum, describe--
(i) the identity of the parties;
(ii) the alleged facts underlying the proceeding; and
(iii) whether there may be a need to coordinate the
prosecution of the proceeding so as not to interfere with any
action, including any rulemaking, undertaken by the Director,
a prudential regulator, or another Federal agency.
(2) Bureau response.--In any action described in paragraph
(1), the Bureau may--
(A) intervene in the action as a party;
(B) upon intervening--
(i) remove the action to the appropriate United States
district court, if the action was not originally brought
there; and
(ii) be heard on all matters arising in the action; and
(C) appeal any order or judgment, to the same extent as any
other party in the proceeding may.
(c) Regulations.--The Director shall prescribe regulations
to implement the requirements of this section and, from time
to time, provide guidance in order to further coordinate
actions with the State attorneys general and other
regulators.
(d) Preservation of State Authority.--
(1) State claims.--No provision of this section shall be
construed as altering, limiting, or affecting the authority
of a State attorney general or any other regulatory or
enforcement agency or authority to bring an action or other
regulatory proceeding arising solely under the law in effect
in that State.
(2) State securities regulators.--No provision of this
title shall be construed as altering, limiting, or affecting
the authority of a State securities commission (or any agency
or office performing like functions) under State law to adopt
rules, initiate enforcement proceedings, or take any other
action with respect to a person regulated by such commission
or authority.

[[Page S3241]]

(3) State insurance regulators.--No provision of this title
shall be construed as altering, limiting, or affecting the
authority of a State insurance commission or State insurance
regulator under State law to adopt rules, initiate
enforcement proceedings, or take any other action with
respect to a person regulated by such commission or
regulator.

SEC. 1043. PRESERVATION OF EXISTING CONTRACTS.

This title, and regulations, orders, guidance, and
interpretations prescribed, issued, or established by the
Bureau, shall not be construed to alter or affect the
applicability of any regulation, order, guidance, or
interpretation prescribed, issued, and established by the
Comptroller of the Currency or the Director of the Office of
Thrift Supervision regarding the applicability of State law
under Federal banking law to any contract entered into on or
before the date of the enactment of this title, by national
banks, Federal savings associations, or subsidiaries thereof
that are regulated and supervised by the Comptroller of the
Currency or the Director of the Office of Thrift Supervision,
respectively.

SEC. 1044. STATE LAW PREEMPTION STANDARDS FOR NATIONAL BANKS
AND SUBSIDIARIES CLARIFIED.

(a) In General.--Chapter one of title LXII of the Revised
Statutes of the United States (12 U.S.C. 21 et seq.) is
amended by inserting after section 5136B the following new
section:

``SEC. 5136C. STATE LAW PREEMPTION STANDARDS FOR NATIONAL
BANKS AND SUBSIDIARIES CLARIFIED.

``(a) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) National bank.--The term `national bank' includes--
``(A) any bank organized under the laws of the United
States; and
``(B) any Federal branch established in accordance with the
International Banking Act of 1978.
``(2) State consumer financial laws.--The term `State
consumer financial law' means a State law that does not
directly or indirectly discriminate against national banks
and that directly and specifically regulates the manner,
content, or terms and conditions of any financial transaction
(as may be authorized for national banks to engage in), or
any account related thereto, with respect to a consumer.
``(3) Other definitions.--The terms `affiliate',
`subsidiary', `includes', and `including' have the same
meanings as in section 3 of the Federal Deposit Insurance
Act.
``(b) Preemption Standard.--
``(1) In general.--State consumer financial laws are
preempted, only if--
``(A) application of a State consumer financial law would
have a discriminatory effect on national banks, in comparison
with the effect of the law on a bank chartered by that State;
``(B) the preemption of the State consumer financial law is
in accordance with the legal standard of the decision of the
Supreme Court of the United States in Barnett Bank of Marion
County, N.A. v. Nelson, Florida Insurance Commissioner, et
al, 517 U.S. 25 (1996), and a preemption determination under
this subparagraph may be made by a court or by regulation or
order of the Comptroller of the Currency, in accordance with
applicable law, on a case-by-case basis, and any such
determination by a court shall comply with the standards set
forth in subsection (d), with the court making the finding
under subsection (d), de novo; or
``(C) the State consumer financial law is preempted by a
provision of Federal law other than this title.
``(2) Savings clause.--This title does not preempt, annul,
or affect the applicability of any State law to any
subsidiary or affiliate of a national bank (other than a
subsidiary or affiliate that is chartered as a national
bank).
``(3) Case-by-case basis.--
``(A) Definition.--As used in this section the term `case-
by-case basis' refers to a determination pursuant to this
section made by the Comptroller concerning the impact of a
particular State consumer financial law on any national bank
that is subject to that law, or the law of any other State
with substantively equivalent terms.
``(B) Consultation.--When making a determination on a case-
by-case basis that a State consumer financial law of another
State has substantively equivalent terms as one that the
Comptroller is preempting, the Comptroller shall first
consult with the Bureau of Consumer Financial Protection and
shall take the views of the Bureau into account when making
the determination.
``(4) Rule of construction.--This title does not occupy the
field in any area of State law.
``(5) Standards of review.--
``(A) Preemption.--A court reviewing any determinations
made by the Comptroller regarding preemption of a State law
by this title shall assess the validity of such
determinations, depending upon the thoroughness evident in
the consideration of the agency, the validity of the
reasoning of the agency, the consistency with other valid
determinations made by the agency, and other factors which
the court finds persuasive and relevant to its decision.
``(B) Savings clause.--Except as provided in subparagraph
(A), nothing in this section shall affect the deference that
a court may afford to the Comptroller in making
determinations regarding the meaning or interpretation of
title LXII of the Revised Statutes of the United States or
other Federal laws.
``(6) Comptroller determination not delegable.--Any
regulation, order, or determination made by the Comptroller
of the Currency under paragraph (1)(B) shall be made by the
Comptroller, and shall not be delegable to another officer or
employee of the Comptroller of the Currency.
``(c) Substantial Evidence.--No regulation or order of the
Comptroller of the Currency prescribed under subsection
(b)(1)(B), shall be interpreted or applied so as to
invalidate, or otherwise declare inapplicable to a national
bank, the provision of the State consumer financial law,
unless substantial evidence, made on the record of the
proceeding, supports the specific finding regarding the
preemption of such provision in accordance with the legal
standard of the decision of the Supreme Court of the United
States in Barnett Bank of Marion County, N.A. v. Nelson,
Florida Insurance Commissioner, et al., 517 U.S. 25 (1996).
``(d) Other Federal Laws.--Notwithstanding any other
provision of law, the Comptroller of the Currency may not
prescribe a regulation or order pursuant to subsection
(b)(1)(B) until the Comptroller of the Currency, after
consultation with the Director of the Bureau of Consumer
Financial Protection, makes a finding, in writing, that a
Federal law provides a substantive standard, applicable to a
national bank, which regulates the particular conduct,
activity, or authority that is subject to such provision of
the State consumer financial law.
``(e) Periodic Review of Preemption Determinations.--
``(1) In general.--The Comptroller of the Currency shall
periodically conduct a review, through notice and public
comment, of each determination that a provision of Federal
law preempts a State consumer financial law. The agency shall
conduct such review within the 5-year period after
prescribing or otherwise issuing such determination, and at
least once during each 5-year period thereafter. After
conducting the review of, and inspecting the comments made
on, the determination, the agency shall publish a notice in
the Federal Register announcing the decision to continue or
rescind the determination or a proposal to amend the
determination. Any such notice of a proposal to amend a
determination and the subsequent resolution of such proposal
shall comply with the procedures set forth in subsections (a)
and (b) of section 5244 of the Revised Statutes of the United
States (12 U.S.C. 43 (a), (b)).
``(2) Reports to congress.--At the time of issuing a review
conducted under paragraph (1), the Comptroller of the
Currency shall submit a report regarding such review to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate. The report submitted to the
respective committees shall address whether the agency
intends to continue, rescind, or propose to amend any
determination that a provision of Federal law preempts a
State consumer financial law, and the reasons therefor.
``(f) Application of State Consumer Financial Law to
Subsidiaries and Affiliates.--Notwithstanding any provision
of this title, a State consumer financial law shall apply to
a subsidiary or affiliate of a national bank (other than a
subsidiary or affiliate that is chartered as a national bank)
to the same extent that the State consumer financial law
applies to any person, corporation, or other entity subject
to such State law.
``(g) Preservation of Powers Related to Charging
Interest.--No provision of this title shall be construed as
altering or otherwise affecting the authority conferred by
section 5197 of the Revised Statutes of the United States (12
U.S.C. 85) for the charging of interest by a national bank at
the rate allowed by the laws of the State, territory, or
district where the bank is located, including with respect to
the meaning of `interest' under such provision.
``(h) Transparency of OCC Preemption Determinations.--The
Comptroller of the Currency shall publish and update no less
frequently than quarterly, a list of preemption
determinations by the Comptroller of the Currency then in
effect that identifies the activities and practices covered
by each determination and the requirements and constraints
determined to be preempted.''.
(b) Clerical Amendment.--The table of sections for chapter
one of title LXII of the Revised Statutes of the United
States is amended by inserting after the item relating to
section 5136B the following new item:

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

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

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

[[Page S3242]]

a subsidiary, affiliate, or agent that is chartered as a
national bank).''.

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

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

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

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

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

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

(a) National Banks.--Section 5136C of the Revised Statutes
of the United States (as added by this subtitle) is amended
by adding at the end the following:
``(j) Visitorial Powers.--
``(1) In general.--No provision of this title which relates
to visitorial powers to which any national bank is subject
shall be construed as limiting or restricting the authority
of any attorney general (or other chief law enforcement
officer) of any State to bring any action in any court of
appropriate jurisdiction, as authorized under section
5240(a)--
``(A) to enforce any applicable provision of Federal or
State law, as authorized by such law; or
``(B) on behalf of residents of such State, to enforce any
applicable provision of any Federal or nonpreempted State law
against a national bank, as authorized by such law, or to
seek relief for such residents from any violation of any such
law by any national bank.
``(2) Prior consultation with occ required.--The attorney
general (or other chief law enforcement officer) of any State
shall consult with the Comptroller of the Currency before
acting under paragraph (1).
``(k) Enforcement Actions.--The ability of the Comptroller
of the Currency to bring an enforcement action under this
title or section 5 of the Federal Trade Commission Act does
not preclude any private party from enforcing rights granted
under Federal or State law in the courts.''.
(b) Savings Associations.--Section 6 of the Home Owners'
Loan Act (as added by this title) is amended by adding at the
end the following:
``(c) Visitorial Powers.--
``(1) In general.--No provision of this Act shall be
construed as limiting or restricting the authority of any
attorney general (or other chief law enforcement officer) of
any State to bring any action in any court of appropriate
jurisdiction--
``(A) to enforce any applicable provision of Federal or
State law, as authorized by such law; or
``(B) on behalf of residents of such State, to enforce any
applicable provision of any Federal or nonpreempted State law
against a Federal savings association, as authorized by such
law, or to seek relief for such residents from any violation
of any such law by any Federal savings association.
``(2) Prior consultation with occ required.--The attorney
general (or other chief law enforcement officer) of any State
shall consult with the Comptroller of the Currency before
acting under paragraph (1).
``(d) Enforcement Actions.--The ability of the Comptroller
of the Currency to bring an enforcement action under this Act
or section 5 of the Federal Trade Commission Act does not
preclude any private party from enforcing rights granted
under Federal or State law in the courts.''.

SEC. 1048. EFFECTIVE DATE.

This subtitle shall become effective on the designated
transfer date.

Subtitle E--Enforcement Powers

SEC. 1051. DEFINITIONS.

For purposes of this subtitle, the following definitions
shall apply:
(1) Bureau investigation.--The term ``Bureau
investigation'' means any inquiry conducted by a Bureau
investigator for the purpose of ascertaining whether any
person is or has been engaged in any conduct that is a
violation, as defined in this section.
(2) Bureau investigator.--The term ``Bureau investigator''
means any attorney or investigator employed by the Bureau who
is charged with the duty of enforcing or carrying into effect
any Federal consumer financial law.
(3) Civil investigative demand and demand.--The terms
``civil investigative demand'' and ``demand'' mean any demand
issued by the Bureau.
(4) Custodian.--The term ``custodian'' means the custodian
or any deputy custodian designated by the Bureau.
(5) Documentary material.--The term ``documentary
material'' includes the original or any copy of any book,
document, record, report, memorandum, paper, communication,
tabulation, chart, logs, electronic files, or other data or
data compilations stored in any medium.
(6) Violation.--The term ``violation'' means any act or
omission that, if proved, would constitute a violation of any
provision of Federal consumer financial law.

SEC. 1052. INVESTIGATIONS AND ADMINISTRATIVE DISCOVERY.

(a) Joint Investigations.--
(1) In general.--The Bureau or, where appropriate, a Bureau
investigator, may engage in joint investigations and requests
for information, as authorized under this title.
(2) Fair lending.--The authority under paragraph (1)
includes matters relating to fair lending, and where
appropriate, joint investigations with, and requests for
information from, the Secretary of Housing and Urban
Development, the Attorney General of the United States, or
both.
(b) Subpoenas.--
(1) In general.--The Bureau or a Bureau investigator may
issue subpoenas for the attendance and testimony of witnesses
and the production of relevant papers, books, documents, or
other material in connection with hearings under this title.
(2) Failure to obey.--In the case of contumacy or refusal
to obey a subpoena issued pursuant to this paragraph and
served upon any person, the district court of the United
States for any district in which such person is found,
resides, or transacts business, upon application by the
Bureau or a Bureau investigator and after notice to such
person, may issue an order requiring such person to appear
and give testimony or to appear and produce documents or
other material.
(3) Contempt.--Any failure to obey an order of the court
under this subsection may be punished by the court as a
contempt thereof.
(c) Demands.--
(1) In general.--Whenever the Bureau has reason to believe
that any person may be in possession, custody, or control of
any documentary material or tangible things, or may have any
information, relevant to a violation, the Bureau may, before
the institution of any proceedings under the Federal consumer
financial law, issue in writing, and cause to be served upon
such person, a civil investigative demand requiring such
person to--
(A) produce such documentary material for inspection and
copying or reproduction in the form or medium requested by
the Bureau;
(B) submit such tangible things;
(C) file written reports or answers to questions;
(D) give oral testimony concerning documentary material,
tangible things, or other information; or
(E) furnish any combination of such material, answers, or
testimony.
(2) Requirements.--Each civil investigative demand shall
state the nature of the conduct constituting the alleged
violation which is under investigation and the provision of
law applicable to such violation.
(3) Production of documents.--Each civil investigative
demand for the production of documentary material shall--
(A) describe each class of documentary material to be
produced under the demand with such definiteness and
certainty as to permit such material to be fairly identified;
(B) prescribe a return date or dates which will provide a
reasonable period of time within which the material so
demanded may be assembled and made available for inspection
and copying or reproduction; and
(C) identify the custodian to whom such material shall be
made available.
(4) Production of things.--Each civil investigative demand
for the submission of tangible things shall--
(A) describe each class of tangible things to be submitted
under the demand with such definiteness and certainty as to
permit such things to be fairly identified;
(B) prescribe a return date or dates which will provide a
reasonable period of time within which the things so demanded
may be assembled and submitted; and
(C) identify the custodian to whom such things shall be
submitted.
(5) Demand for written reports or answers.--Each civil
investigative demand for written reports or answers to
questions shall--
(A) propound with definiteness and certainty the reports to
be produced or the questions to be answered;
(B) prescribe a date or dates at which time written reports
or answers to questions shall be submitted; and
(C) identify the custodian to whom such reports or answers
shall be submitted.
(6) Oral testimony.--Each civil investigative demand for
the giving of oral testimony shall--
(A) prescribe a date, time, and place at which oral
testimony shall be commenced; and
(B) identify a Bureau investigator who shall conduct the
investigation and the custodian to whom the transcript of
such investigation shall be submitted.
(7) Service.--Any civil investigative demand and any
enforcement petition filed under this section may be served--
(A) by any Bureau investigator at any place within the
territorial jurisdiction of any court of the United States;
and

[[Page S3243]]

(B) upon any person who is not found within the territorial
jurisdiction of any court of the United States--
(i) in such manner as the Federal Rules of Civil Procedure
prescribe for service in a foreign nation; and
(ii) to the extent that the courts of the United States
have authority to assert jurisdiction over such person,
consistent with due process, the United States District Court
for the District of Columbia shall have the same jurisdiction
to take any action respecting compliance with this section by
such person that such district court would have if such
person were personally within the jurisdiction of such
district court.
(8) Method of service.--Service of any civil investigative
demand or any enforcement petition filed under this section
may be made upon a person, including any legal entity, by--
(A) delivering a duly executed copy of such demand or
petition to the individual or to any partner, executive
officer, managing agent, or general agent of such person, or
to any agent of such person authorized by appointment or by
law to receive service of process on behalf of such person;
(B) delivering a duly executed copy of such demand or
petition to the principal office or place of business of the
person to be served; or
(C) depositing a duly executed copy in the United States
mails, by registered or certified mail, return receipt
requested, duly addressed to such person at the principal
office or place of business of such person.
(9) Proof of service.--
(A) In general.--A verified return by the individual
serving any civil investigative demand or any enforcement
petition filed under this section setting forth the manner of
such service shall be proof of such service.
(B) Return receipts.--In the case of service by registered
or certified mail, such return shall be accompanied by the
return post office receipt of delivery of such demand or
enforcement petition.
(10) Production of documentary material.--The production of
documentary material in response to a civil investigative
demand shall be made under a sworn certificate, in such form
as the demand designates, by the person, if a natural person,
to whom the demand is directed or, if not a natural person,
by any person having knowledge of the facts and circumstances
relating to such production, to the effect that all of the
documentary material required by the demand and in the
possession, custody, or control of the person to whom the
demand is directed has been produced and made available to
the custodian.
(11) Submission of tangible things.--The submission of
tangible things in response to a civil investigative demand
shall be made under a sworn certificate, in such form as the
demand designates, by the person to whom the demand is
directed or, if not a natural person, by any person having
knowledge of the facts and circumstances relating to such
production, to the effect that all of the tangible things
required by the demand and in the possession, custody, or
control of the person to whom the demand is directed have
been submitted to the custodian.
(12) Separate answers.--Each reporting requirement or
question in a civil investigative demand shall be answered
separately and fully in writing under oath, unless it is
objected to, in which event the reasons for the objection
shall be stated in lieu of an answer, and it shall be
submitted under a sworn certificate, in such form as the
demand designates, by the person, if a natural person, to
whom the demand is directed or, if not a natural person, by
any person responsible for answering each reporting
requirement or question, to the effect that all information
required by the demand and in the possession, custody,
control, or knowledge of the person to whom the demand is
directed has been submitted.
(13) Testimony.--
(A) In general.--
(i) Oath or affirmation.--Any Bureau investigator before
whom oral testimony is to be taken shall put the witness
under oath or affirmation, and shall personally, or by any
individual acting under the direction of and in the presence
of the Bureau investigator, record the testimony of the
witness.
(ii) Transcription.--The testimony shall be taken
stenographically and transcribed.
(iii) Transmission to custodian.--After the testimony is
fully transcribed, the Bureau investigator before whom the
testimony is taken shall promptly transmit a copy of the
transcript of the testimony to the custodian.
(B) Parties present.--Any Bureau investigator before whom
oral testimony is to be taken shall exclude from the place
where the testimony is to be taken all other persons, except
the person giving the testimony, the attorney of that person,
the officer before whom the testimony is to be taken, and any
stenographer taking such testimony.
(C) Location.--The oral testimony of any person taken
pursuant to a civil investigative demand shall be taken in
the judicial district of the United States in which such
person resides, is found, or transacts business, or in such
other place as may be agreed upon by the Bureau investigator
before whom the oral testimony of such person is to be taken
and such person.
(D) Attorney representation.--
(i) In general.--Any person compelled to appear under a
civil investigative demand for oral testimony pursuant to
this section may be accompanied, represented, and advised by
an attorney.
(ii) Authority.--The attorney may advise a person described
in clause (i), in confidence, either upon the request of such
person or upon the initiative of the attorney, with respect
to any question asked of such person.
(iii) Objections.--A person described in clause (i), or the
attorney for that person, may object on the record to any
question, in whole or in part, and such person shall briefly
state for the record the reason for the objection. An
objection may properly be made, received, and entered upon
the record when it is claimed that such person is entitled to
refuse to answer the question on grounds of any
constitutional or other legal right or privilege, including
the privilege against self-incrimination, but such person
shall not otherwise object to or refuse to answer any
question, and such person or attorney shall not otherwise
interrupt the oral examination.
(iv) Refusal to answer.--If a person described in clause
(i) refuses to answer any question--

(I) the Bureau may petition the district court of the
United States pursuant to this section for an order
compelling such person to answer such question; and
(II) on grounds of the privilege against self-
incrimination, the testimony of such person may be compelled
in accordance with the provisions of section 6004 of title
18, United States Code.

(E) Transcripts.--For purposes of this subsection--
(i) after the testimony of any witness is fully
transcribed, the Bureau investigator shall afford the witness
(who may be accompanied by an attorney) a reasonable
opportunity to examine the transcript;
(ii) the transcript shall be read to or by the witness,
unless such examination and reading are waived by the
witness;
(iii) any changes in form or substance which the witness
desires to make shall be entered and identified upon the
transcript by the Bureau investigator, with a statement of
the reasons given by the witness for making such changes;
(iv) the transcript shall be signed by the witness, unless
the witness in writing waives the signing, is ill, cannot be
found, or refuses to sign; and
(v) if the transcript is not signed by the witness during
the 30-day period following the date on which the witness is
first afforded a reasonable opportunity to examine the
transcript, the Bureau investigator shall sign the transcript
and state on the record the fact of the waiver, illness,
absence of the witness, or the refusal to sign, together with
any reasons given for the failure to sign.
(F) Certification by investigator.--The Bureau investigator
shall certify on the transcript that the witness was duly
sworn by him or her and that the transcript is a true record
of the testimony given by the witness, and the Bureau
investigator shall promptly deliver the transcript or send it
by registered or certified mail to the custodian.
(G) Copy of transcript.--The Bureau investigator shall
furnish a copy of the transcript (upon payment of reasonable
charges for the transcript) to the witness only, except that
the Bureau may for good cause limit such witness to
inspection of the official transcript of his testimony.
(H) Witness fees.--Any witness appearing for the taking of
oral testimony pursuant to a civil investigative demand shall
be entitled to the same fees and mileage which are paid to
witnesses in the district courts of the United States.
(d) Confidential Treatment of Demand Material.--
(1) In general.--Documentary materials and tangible things
received as a result of a civil investigative demand shall be
subject to requirements and procedures regarding
confidentiality, in accordance with rules established by the
Bureau.
(2) Disclosure to congress.--No rule established by the
Bureau regarding the confidentiality of materials submitted
to, or otherwise obtained by, the Bureau shall be intended to
prevent disclosure to either House of Congress or to an
appropriate committee of the Congress, except that the Bureau
is permitted to adopt rules allowing prior notice to any
party that owns or otherwise provided the material to the
Bureau and had designated such material as confidential.
(e) Petition for Enforcement.--
(1) In general.--Whenever any person fails to comply with
any civil investigative demand duly served upon him under
this section, or whenever satisfactory copying or
reproduction of material requested pursuant to the demand
cannot be accomplished and such person refuses to surrender
such material, the Bureau, through such officers or attorneys
as it may designate, may file, in the district court of the
United States for any judicial district in which such person
resides, is found, or transacts business, and serve upon such
person, a petition for an order of such court for the
enforcement of this section.
(2) Service of process.--All process of any court to which
application may be made as provided in this subsection may be
served in any judicial district.
(f) Petition for Order Modifying or Setting Aside Demand.--
(1) In general.--Not later than 20 days after the service
of any civil investigative demand upon any person under
subsection

[[Page S3244]]

(b), or at any time before the return date specified in the
demand, whichever period is shorter, or within such period
exceeding 20 days after service or in excess of such return
date as may be prescribed in writing, subsequent to service,
by any Bureau investigator named in the demand, such person
may file with the Bureau a petition for an order by the
Bureau modifying or setting aside the demand.
(2) Compliance during pendency.--The time permitted for
compliance with the demand in whole or in part, as determined
proper and ordered by the Bureau, shall not run during the
pendency of a petition under paragraph (1) at the Bureau,
except that such person shall comply with any portions of the
demand not sought to be modified or set aside.
(3) Specific grounds.--A petition under paragraph (1) shall
specify each ground upon which the petitioner relies in
seeking relief, and may be based upon any failure of the
demand to comply with the provisions of this section, or upon
any constitutional or other legal right or privilege of such
person.
(g) Custodial Control.--At any time during which any
custodian is in custody or control of any documentary
material, tangible things, reports, answers to questions, or
transcripts of oral testimony given by any person in
compliance with any civil investigative demand, such person
may file, in the district court of the United States for the
judicial district within which the office of such custodian
is situated, and serve upon such custodian, a petition for an
order of such court requiring the performance by such
custodian of any duty imposed upon him by this section or
rule promulgated by the Bureau.
(h) Jurisdiction of Court.--
(1) In general.--Whenever any petition is filed in any
district court of the United States under this section, such
court shall have jurisdiction to hear and determine the
matter so presented, and to enter such order or orders as may
be required to carry out the provisions of this section.
(2) Appeal.--Any final order entered as described in
paragraph (1) shall be subject to appeal pursuant to section
1291 of title 28, United States Code.

SEC. 1053. HEARINGS AND ADJUDICATION PROCEEDINGS.

(a) In General.--The Bureau is authorized to conduct
hearings and adjudication proceedings with respect to any
person in the manner prescribed by chapter 5 of title 5,
United States Code in order to ensure or enforce compliance
with--
(1) the provisions of this title, including any rules
prescribed by the Bureau under this title; and
(2) any other Federal law that the Bureau is authorized to
enforce, including an enumerated consumer law, and any
regulations or order prescribed thereunder, unless such
Federal law specifically limits the Bureau from conducting a
hearing or adjudication proceeding and only to the extent of
such limitation.
(b) Special Rules for Cease-and-Desist Proceedings.--
(1) Orders authorized.--
(A) In general.--If, in the opinion of the Bureau, any
covered person or service provider is engaging or has engaged
in an activity that violates a law, rule, or any condition
imposed in writing on the person by the Bureau, the Bureau
may, subject to sections 1024, 1025, and 1026, issue and
serve upon the covered person or service provider a notice of
charges in respect thereof.
(B) Content of notice.--The notice under subparagraph (A)
shall contain a statement of the facts constituting the
alleged violation or violations, and shall fix a time and
place at which a hearing will be held to determine whether an
order to cease and desist should issue against the covered
person or service provider, such hearing to be held not
earlier than 30 days nor later than 60 days after the date of
service of such notice, unless an earlier or a later date is
set by the Bureau, at the request of any party so served.
(C) Consent.--Unless the party or parties served under
subparagraph (B) appear at the hearing personally or by a
duly authorized representative, such person shall be deemed
to have consented to the issuance of the cease-and-desist
order.
(D) Procedure.--In the event of consent under subparagraph
(C), or if, upon the record, made at any such hearing, the
Bureau finds that any violation specified in the notice of
charges has been established, the Bureau may issue and serve
upon the covered person or service provider an order to cease
and desist from the violation or practice. Such order may, by
provisions which may be mandatory or otherwise, require the
covered person or service provider to cease and desist from
the subject activity, and to take affirmative action to
correct the conditions resulting from any such violation.
(2) Effectiveness of order.--A cease-and-desist order shall
become effective at the expiration of 30 days after the date
of service of an order under paragraph (1) upon the covered
person or service provider concerned (except in the case of a
cease-and-desist order issued upon consent, which shall
become effective at the time specified therein), and shall
remain effective and enforceable as provided therein, except
to such extent as the order is stayed, modified, terminated,
or set aside by action of the Bureau or a reviewing court.
(3) Decision and appeal.--Any hearing provided for in this
subsection shall be held in the Federal judicial district or
in the territory in which the residence or principal office
or place of business of the person is located unless the
person consents to another place, and shall be conducted in
accordance with the provisions of chapter 5 of title 5 of the
United States Code. After such hearing, and within 90 days
after the Bureau has notified the parties that the case has
been submitted to the Bureau for final decision, the Bureau
shall render its decision (which shall include findings of
fact upon which its decision is predicated) and shall issue
and serve upon each party to the proceeding an order or
orders consistent with the provisions of this section.
Judicial review of any such order shall be exclusively as
provided in this subsection. Unless a petition for review is
timely filed in a court of appeals of the United States, as
provided in paragraph (4), and thereafter until the record in
the proceeding has been filed as provided in paragraph (4),
the Bureau may at any time, upon such notice and in such
manner as the Bureau shall determine proper, modify,
terminate, or set aside any such order. Upon filing of the
record as provided, the Bureau may modify, terminate, or set
aside any such order with permission of the court.
(4) Appeal to court of appeals.--Any party to any
proceeding under this subsection may obtain a review of any
order served pursuant to this subsection (other than an order
issued with the consent of the person concerned) by the
filing in the court of appeals of the United States for the
circuit in which the principal office of the covered person
is located, or in the United States Court of Appeals for the
District of Columbia Circuit, within 30 days after the date
of service of such order, a written petition praying that the
order of the Bureau be modified, terminated, or set aside. A
copy of such petition shall be forthwith transmitted by the
clerk of the court to the Bureau, and thereupon the Bureau
shall file in the court the record in the proceeding, as
provided in section 2112 of title 28 of the United States
Code. Upon the filing of such petition, such court shall have
jurisdiction, which upon the filing of the record shall
except as provided in the last sentence of paragraph (3) be
exclusive, to affirm, modify, terminate, or set aside, in
whole or in part, the order of the Bureau. Review of such
proceedings shall be had as provided in chapter 7 of title 5
of the United States Code. The judgment and decree of the
court shall be final, except that the same shall be subject
to review by the Supreme Court of the United States, upon
certiorari, as provided in section 1254 of title 28 of the
United States Code.
(5) No stay.--The commencement of proceedings for judicial
review under paragraph (4) shall not, unless specifically
ordered by the court, operate as a stay of any order issued
by the Bureau.
(c) Special Rules for Temporary Cease-and-Desist
Proceedings.--
(1) In general.--Whenever the Bureau determines that the
violation specified in the notice of charges served upon a
person, including a service provider, pursuant to subsection
(b), or the continuation thereof, is likely to cause the
person to be insolvent or otherwise prejudice the interests
of consumers before the completion of the proceedings
conducted pursuant to subsection (b), the Bureau may issue a
temporary order requiring the person to cease and desist from
any such violation or practice and to take affirmative action
to prevent or remedy such insolvency or other condition
pending completion of such proceedings. Such order may
include any requirement authorized under this subtitle. Such
order shall become effective upon service upon the person
and, unless set aside, limited, or suspended by a court in
proceedings authorized by paragraph (2), shall remain
effective and enforceable pending the completion of the
administrative proceedings pursuant to such notice and until
such time as the Bureau shall dismiss the charges specified
in such notice, or if a cease-and-desist order is issued
against the person, until the effective date of such order.
(2) Appeal.--Not later than 10 days after the covered
person or service provider concerned has been served with a
temporary cease-and-desist order, the person may apply to the
United States district court for the judicial district in
which the residence or principal office or place of business
of the person is located, or the United States District Court
for the District of Columbia, for an injunction setting
aside, limiting, or suspending the enforcement, operation, or
effectiveness of such order pending the completion of the
administrative proceedings pursuant to the notice of charges
served upon the person under subsection (b), and such court
shall have jurisdiction to issue such injunction.
(3) Incomplete or inaccurate records.--
(A) Temporary order.--If a notice of charges served under
subsection (b) specifies, on the basis of particular facts
and circumstances, that the books and records of a covered
person or service provider are so incomplete or inaccurate
that the Bureau is unable to determine the financial
condition of that person or the details or purpose of any
transaction or transactions that may have a material effect
on the financial condition of that person, the Bureau may
issue a temporary order requiring--
(i) the cessation of any activity or practice which gave
rise, whether in whole or in part, to the incomplete or
inaccurate state of the books or records; or
(ii) affirmative action to restore such books or records to
a complete and accurate

[[Page S3245]]

state, until the completion of the proceedings under
subsection (b)(1).
(B) Effective period.--Any temporary order issued under
subparagraph (A)--
(i) shall become effective upon service; and
(ii) unless set aside, limited, or suspended by a court in
proceedings under paragraph (2), shall remain in effect and
enforceable until the earlier of--

(I) the completion of the proceeding initiated under
subsection (b) in connection with the notice of charges; or
(II) the date the Bureau determines, by examination or
otherwise, that the books and records of the covered person
or service provider are accurate and reflect the financial
condition thereof.

(d) Special Rules for Enforcement of Orders.--
(1) In general.--The Bureau may in its discretion apply to
the United States district court within the jurisdiction of
which the principal office or place of business of the person
is located, for the enforcement of any effective and
outstanding notice or order issued under this section, and
such court shall have jurisdiction and power to order and
require compliance herewith.
(2) Exception.--Except as otherwise provided in this
subsection, no court shall have jurisdiction to affect by
injunction or otherwise the issuance or enforcement of any
notice or order or to review, modify, suspend, terminate, or
set aside any such notice or order.
(e) Rules.--The Bureau shall prescribe rules establishing
such procedures as may be necessary to carry out this
section.

SEC. 1054. LITIGATION AUTHORITY.

(a) In General.--If any person violates a Federal consumer
financial law, the Bureau may, subject to sections 1024,
1025, and 1026, commence a civil action against such person
to impose a civil penalty or to seek all appropriate legal
and equitable relief including a permanent or temporary
injunction as permitted by law.
(b) Representation.--The Bureau may act in its own name and
through its own attorneys in enforcing any provision of this
title, rules thereunder, or any other law or regulation, or
in any action, suit, or proceeding to which the Bureau is a
party.
(c) Compromise of Actions.--The Bureau may compromise or
settle any action if such compromise is approved by the
court.
(d) Notice to the Attorney General.--When commencing a
civil action under Federal consumer financial law, or any
rule thereunder, the Bureau shall notify the Attorney General
and, with respect to a civil action against an insured
depository institution or insured credit union, the
appropriate prudential regulator.
(e) Appearance Before the Supreme Court.--The Bureau may
represent itself in its own name before the Supreme Court of
the United States, provided that the Bureau makes a written
request to the Attorney General within the 10-day period
which begins on the date of entry of the judgment which would
permit any party to file a petition for writ of certiorari,
and the Attorney General concurs with such request or fails
to take action within 60 days of the request of the Bureau.
(f) Forum.--Any civil action brought under this title may
be brought in a United States district court or in any court
of competent jurisdiction of a state in a district in which
the defendant is located or resides or is doing business, and
such court shall have jurisdiction to enjoin such person and
to require compliance with any Federal consumer financial
law.
(g) Time for Bringing Action.--
(1) In general.--Except as otherwise permitted by law or
equity, no action may be brought under this title more than 3
years after the date of discovery of the violation to which
an action relates.
(2) Limitations under other federal laws.--
(A) In general.--For purposes of this subsection, an action
arising under this title does not include claims arising
solely under enumerated consumer laws.
(B) Bureau authority.--In any action arising solely under
an enumerated consumer law, the Bureau may commence, defend,
or intervene in the action in accordance with the
requirements of that provision of law, as applicable.
(C) Transferred authority.--In any action arising solely
under laws for which authorities were transferred under
subtitles F and H, the Bureau may commence, defend, or
intervene in the action in accordance with the requirements
of that provision of law, as applicable.

SEC. 1055. RELIEF AVAILABLE.

(a) Administrative Proceedings or Court Actions.--
(1) Jurisdiction.--The court (or the Bureau, as the case
may be) in an action or adjudication proceeding brought under
Federal consumer financial law, shall have jurisdiction to
grant any appropriate legal or equitable relief with respect
to a violation of Federal consumer financial law, including a
violation of a rule or order prescribed under a Federal
consumer financial law.
(2) Relief.--Relief under this section may include, without
limitation--
(A) rescission or reformation of contracts;
(B) refund of moneys or return of real property;
(C) restitution;
(D) disgorgement or compensation for unjust enrichment;
(E) payment of damages or other monetary relief;
(F) public notification regarding the violation, including
the costs of notification;
(G) limits on the activities or functions of the person;
and
(H) civil money penalties, as set forth more fully in
subsection (c).
(3) No exemplary or punitive damages.--Nothing in this
subsection shall be construed as authorizing the imposition
of exemplary or punitive damages.
(b) Recovery of Costs.--In any action brought by the
Bureau, a State attorney general, or any State regulator to
enforce any Federal consumer financial law, the Bureau, the
State attorney general, or the State regulator may recover
its costs in connection with prosecuting such action if the
Bureau, the State attorney general, or the State regulator is
the prevailing party in the action.
(c) Civil Money Penalty in Court and Administrative
Actions.--
(1) In general.--Any person that violates, through any act
or omission, any provision of Federal consumer financial law
shall forfeit and pay a civil penalty pursuant to this
subsection.
(2) Penalty amounts.--
(A) First tier.--For any violation of a law, rule, or final
order or condition imposed in writing by the Bureau, a civil
penalty may not exceed $5,000 for each day during which such
violation or failure to pay continues.
(B) Second tier.--Notwithstanding paragraph (A), for any
person that recklessly engages in a violation of a Federal
consumer financial law, a civil penalty may not exceed
$25,000 for each day during which such violation continues.
(C) Third tier.--Notwithstanding subparagraphs (A) and (B),
for any person that knowingly violates a Federal consumer
financial law, a civil penalty may not exceed $1,000,000 for
each day during which such violation continues.
(3) Mitigating factors.--In determining the amount of any
penalty assessed under paragraph (2), the Bureau or the court
shall take into account the appropriateness of the penalty
with respect to--
(A) the size of financial resources and good faith of the
person charged;
(B) the gravity of the violation or failure to pay;
(C) the severity of the risks to or losses of the consumer,
which may take into account the number of products or
services sold or provided;
(D) the history of previous violations; and
(E) such other matters as justice may require.
(4) Authority to modify or remit penalty.--The Bureau may
compromise, modify, or remit any penalty which may be
assessed or had already been assessed under paragraph (2).
The amount of such penalty, when finally determined, shall be
exclusive of any sums owed by the person to the United States
in connection with the costs of the proceeding, and may be
deducted from any sums owing by the United States to the
person charged.
(5) Notice and hearing.--No civil penalty may be assessed
under this subsection with respect to a violation of any
Federal consumer financial law, unless--
(A) the Bureau gives notice and an opportunity for a
hearing to the person accused of the violation; or
(B) the appropriate court has ordered such assessment and
entered judgment in favor of the Bureau.

SEC. 1056. REFERRALS FOR CRIMINAL PROCEEDINGS.

If the Bureau obtains evidence that any person, domestic or
foreign, has engaged in conduct that may constitute a
violation of Federal criminal law, the Bureau shall have the
power to transmit such evidence to the Attorney General of
the United States, who may institute criminal proceedings
under appropriate law. Nothing in this section affects any
other authority of the Bureau to disclose information.

SEC. 1057. EMPLOYEE PROTECTION.

(a) In General.--No covered person or service provider
shall terminate or in any other way discriminate against, or
cause to be terminated or discriminated against, any covered
employee or any authorized representative of covered
employees by reason of the fact that such employee or
representative, whether at the initiative of the employee or
in the ordinary course of the duties of the employee (or any
person acting pursuant to a request of the employee), has--
(1) provided, caused to be provided, or is about to provide
or cause to be provided, information to the employer, the
Bureau, or any other State, local, or Federal, government
authority or law enforcement agency relating to any violation
of, or any act or omission that the employee reasonably
believes to be a violation of, any provision of this title or
any other provision of law that is subject to the
jurisdiction of the Bureau, or any rule, order, standard, or
prohibition prescribed by the Bureau;
(2) testified or will testify in any proceeding resulting
from the administration or enforcement of any provision of
this title or any other provision of law that is subject to
the jurisdiction of the Bureau, or any rule, order, standard,
or prohibition prescribed by the Bureau;
(3) filed, instituted, or caused to be filed or instituted
any proceeding under any Federal consumer financial law; or
(4) objected to, or refused to participate in, any
activity, policy, practice, or assigned task that the
employee (or other such person) reasonably believed to be in
violation of

[[Page S3246]]

any law, rule, order, standard, or prohibition, subject to
the jurisdiction of, or enforceable by, the Bureau.
(b) Definition of Covered Employee.--For the purposes of
this section, the term ``covered employee'' means any
individual performing tasks related to the offering or
provision of a consumer financial product or service.
(c) Procedures and Timetables.--
(1) Complaint.--
(A) In general.--A person who believes that he or she has
been discharged or otherwise discriminated against by any
person in violation of subsection (a) may, not later than 180
days after the date on which such alleged violation occurs,
file (or have any person file on his or her behalf) a
complaint with the Secretary of Labor alleging such discharge
or discrimination and identifying the person responsible for
such act.
(B) Actions of secretary of labor.--Upon receipt of such a
complaint, the Secretary of Labor shall notify, in writing,
the person named in the complaint who is alleged to have
committed the violation, of --
(i) the filing of the complaint;
(ii) the allegations contained in the complaint;
(iii) the substance of evidence supporting the complaint;
and
(iv) opportunities that will be afforded to such person
under paragraph (2).
(2) Investigation by secretary of labor.--
(A) In general.--Not later than 60 days after the date of
receipt of a complaint filed under paragraph (1), and after
affording the complainant and the person named in the
complaint who is alleged to have committed the violation that
is the basis for the complaint an opportunity to submit to
the Secretary of Labor a written response to the complaint
and an opportunity to meet with a representative of the
Secretary of Labor to present statements from witnesses, the
Secretary of Labor shall--
(i) initiate an investigation and determine whether there
is reasonable cause to believe that the complaint has merit;
and
(ii) notify the complainant and the person alleged to have
committed the violation of subsection (a), in writing, of
such determination.
(B) Notice of relief available.--If the Secretary of Labor
concludes that there is reasonable cause to believe that a
violation of subsection (a) has occurred, the Secretary of
Labor shall, together with the notice under subparagraph
(A)(ii), issue a preliminary order providing the relief
prescribed by paragraph (4)(B).
(C) Request for hearing.--Not later than 30 days after the
date of receipt of notification of a determination of the
Secretary of Labor under this paragraph, either the person
alleged to have committed the violation or the complainant
may file objections to the findings or preliminary order, or
both, and request a hearing on the record. The filing of such
objections shall not operate to stay any reinstatement remedy
contained in the preliminary order. Any such hearing shall be
conducted expeditiously, and if a hearing is not requested in
such 30-day period, the preliminary order shall be deemed a
final order that is not subject to judicial review.
(3) Grounds for determination of complaints.--
(A) In general.--The Secretary of Labor shall dismiss a
complaint filed under this subsection, and shall not conduct
an investigation otherwise required under paragraph (2),
unless the complainant makes a prima facie showing that any
behavior described in paragraphs (1) through (4) of
subsection (a) was a contributing factor in the unfavorable
personnel action alleged in the complaint.
(B) Rebuttal evidence.--Notwithstanding a finding by the
Secretary of Labor that the complainant has made the showing
required under subparagraph (A), no investigation otherwise
required under paragraph (2) shall be conducted, if the
employer demonstrates, by clear and convincing evidence, that
the employer would have taken the same unfavorable personnel
action in the absence of that behavior.
(C) Evidentiary standards.--The Secretary of Labor may
determine that a violation of subsection (a) has occurred
only if the complainant demonstrates that any behavior
described in paragraphs (1) through (4) of subsection (a) was
a contributing factor in the unfavorable personnel action
alleged in the complaint. Relief may not be ordered under
subparagraph (A) if the employer demonstrates by clear and
convincing evidence that the employer would have taken the
same unfavorable personnel action in the absence of that
behavior.
(4) Issuance of final orders; review procedures.--
(A) Timing.--Not later than 120 days after the date of
conclusion of any hearing under paragraph (2), the Secretary
of Labor shall issue a final order providing the relief
prescribed by this paragraph or denying the complaint. At any
time before issuance of a final order, a proceeding under
this subsection may be terminated on the basis of a
settlement agreement entered into by the Secretary of Labor,
the complainant, and the person alleged to have committed the
violation.
(B) Penalties.--
(i) Order of secretary of labor.--If, in response to a
complaint filed under paragraph (1), the Secretary of Labor
determines that a violation of subsection (a) has occurred,
the Secretary of Labor shall order the person who committed
such violation--

(I) to take affirmative action to abate the violation;
(II) to reinstate the complainant to his or her former
position, together with compensation (including back pay) and
restore the terms, conditions, and privileges associated with
his or her employment; and
(III) to provide compensatory damages to the complainant.

(ii) Penalty.--If an order is issued under clause (i), the
Secretary of Labor, at the request of the complainant, shall
assess against the person against whom the order is issued, a
sum equal to the aggregate amount of all costs and expenses
(including attorney fees and expert witness fees) reasonably
incurred, as determined by the Secretary of Labor, by the
complainant for, or in connection with, the bringing of the
complaint upon which the order was issued.
(C) Penalty for frivolous claims.--If the Secretary of
Labor finds that a complaint under paragraph (1) is frivolous
or has been brought in bad faith, the Secretary of Labor may
award to the prevailing employer a reasonable attorney fee,
not exceeding $1,000, to be paid by the complainant.
(D) De novo review.--
(i) Failure of the secretary to act.--If the Secretary of
Labor has not issued a final order within 210 days after the
date of filing of a complaint under this subsection, or
within 90 days after the date of receipt of a written
determination, the complainant may bring an action at law or
equity for de novo review in the appropriate district court
of the United States having jurisdiction, which shall have
jurisdiction over such an action without regard to the amount
in controversy, and which action shall, at the request of
either party to such action, be tried by the court with a
jury.
(ii) Procedures.--A proceeding under clause (i) shall be
governed by the same legal burdens of proof specified in
paragraph (3). The court shall have jurisdiction to grant all
relief necessary to make the employee whole, including
injunctive relief and compensatory damages, including--

(I) reinstatement with the same seniority status that the
employee would have had, but for the discharge or
discrimination;
(II) the amount of back pay, with interest; and
(III) compensation for any special damages sustained as a
result of the discharge or discrimination, including
litigation costs, expert witness fees, and reasonable
attorney fees.

(E) Other appeals.--Unless the complainant brings an action
under subparagraph (D), any person adversely affected or
aggrieved by a final order issued under subparagraph (A) may
file a petition for review of the order in the United States
Court of Appeals for the circuit in which the violation with
respect to which the order was issued, allegedly occurred or
the circuit in which the complainant resided on the date of
such violation, not later than 60 days after the date of the
issuance of the final order of the Secretary of Labor under
subparagraph (A). Review shall conform to chapter 7 of title
5, United States Code. The commencement of proceedings under
this subparagraph shall not, unless ordered by the court,
operate as a stay of the order. An order of the Secretary of
Labor with respect to which review could have been obtained
under this subparagraph shall not be subject to judicial
review in any criminal or other civil proceeding.
(5) Failure to comply with order.--
(A) Actions by the secretary.--If any person has failed to
comply with a final order issued under paragraph (4), the
Secretary of Labor may file a civil action in the United
States district court for the district in which the violation
was found to have occurred, or in the United States district
court for the District of Columbia, to enforce such order. In
actions brought under this paragraph, the district courts
shall have jurisdiction to grant all appropriate relief
including injunctive relief and compensatory damages.
(B) Civil actions to compel compliance.--A person on whose
behalf an order was issued under paragraph (4) may commence a
civil action against the person to whom such order was issued
to require compliance with such order. The appropriate United
States district court shall have jurisdiction, without regard
to the amount in controversy or the citizenship of the
parties, to enforce such order.
(C) Award of costs authorized.--The court, in issuing any
final order under this paragraph, may award costs of
litigation (including reasonable attorney and expert witness
fees) to any party, whenever the court determines such award
is appropriate.
(D) Mandamus proceedings.--Any nondiscretionary duty
imposed by this section shall be enforceable in a mandamus
proceeding brought under section 1361 of title 28, United
States Code.
(d) Unenforceability of Certain Agreements.--
(1) No waiver of rights and remedies.--Except as provided
under paragraph (3), and notwithstanding any other provision
of law, the rights and remedies provided for in this section
may not be waived by any agreement, policy, form, or
condition of employment, including by any predispute
arbitration agreement.
(2) No predispute arbitration agreements.--Except as
provided under paragraph (3), and notwithstanding any other
provision of law, no predispute arbitration agreement shall
be valid or enforceable to the extent

[[Page S3247]]

that it requires arbitration of a dispute arising under this
section.
(3) Exception.--Notwithstanding paragraphs (1) and (2), an
arbitration provision in a collective bargaining agreement
shall be enforceable as to disputes arising under subsection
(a)(4), unless the Bureau determines, by rule, that such
provision is inconsistent with the purposes of this title.

SEC. 1058. EFFECTIVE DATE.

This subtitle shall become effective on the designated
transfer date.

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

SEC. 1061. TRANSFER OF CONSUMER FINANCIAL PROTECTION
FUNCTIONS.

(a) Defined Terms.--For purposes of this subtitle--
(1) the term ``consumer financial protection functions''
means research, rulemaking, issuance of orders or guidance,
supervision, examination, and enforcement activities, powers,
and duties relating to the offering or provision of consumer
financial products or services; and
(2) the terms ``transferor agency'' and ``transferor
agencies'' mean, respectively--
(A) the Board of Governors (and any Federal reserve bank,
as the context requires), the Federal Deposit Insurance
Corporation, the Federal Trade Commission, the National
Credit Union Administration, the Office of the Comptroller of
the Currency, the Office of Thrift Supervision, and the
Department of Housing and Urban Development, and the heads of
those agencies; and
(B) the agencies listed in subparagraph (A), collectively.
(b) In General.--Except as provided in subsection (c),
consumer financial protection functions are transferred as
follows:
(1) Board of governors.--
(A) Transfer of functions.--All consumer financial
protection functions of the Board of Governors are
transferred to the Bureau.
(B) Board of governors authority.--The Bureau shall have
all powers and duties that were vested in the Board of
Governors, relating to consumer financial protection
functions, on the day before the designated transfer date.
(2) Comptroller of the currency.--
(A) Transfer of functions.--All consumer financial
protection functions of the Comptroller of the Currency are
transferred to the Bureau.
(B) Comptroller authority.--The Bureau shall have all
powers and duties that were vested in the Comptroller of the
Currency, relating to consumer financial protection
functions, on the day before the designated transfer date.
(3) Director of the office of thrift supervision.--
(A) Transfer of functions.--All consumer financial
protection functions of the Director of the Office of Thrift
Supervision are transferred to the Bureau.
(B) Director authority.--The Bureau shall have all powers
and duties that were vested in the Director of the Office of
Thrift Supervision, relating to consumer financial protection
functions, on the day before the designated transfer date.
(4) Federal deposit insurance corporation.--
(A) Transfer of functions.--All consumer financial
protection functions of the Federal Deposit Insurance
Corporation are transferred to the Bureau.
(B) Corporation authority.--The Bureau shall have all
powers and duties that were vested in the Federal Deposit
Insurance Corporation, relating to consumer financial
protection functions, on the day before the designated
transfer date.
(5) Federal trade commission.--
(A) Transfer of functions.--Except as provided in
subparagraph (C), all consumer financial protection functions
of the Federal Trade Commission are transferred to the
Bureau.
(B) Commission authority.--Except as provided in
subparagraph (C), the Bureau shall have all powers and duties
that were vested in the Federal Trade Commission relating to
consumer financial protection functions on the day before the
designated transfer date.
(C) Continuation of certain commission authorities.--
Notwithstanding subparagraphs (A) and (B), the Federal Trade
Commission shall continue to have authority to enforce, and
issue rules with respect to--
(i) the Credit Repair Organizations Act (15 U.S.C. 1679 et
seq.);
(ii) section 5 of the Federal Trade Commission Act (15
U.S.C. 45); and
(iii) the Telemarketing and Consumer Fraud and Abuse
Prevention Act (15 U.S.C. 6101 et seq.).
(6) National credit union administration.--
(A) Transfer of functions.--All consumer financial
protection functions of the National Credit Union
Administration are transferred to the Bureau.
(B) National credit union administration authority.--The
Bureau shall have all powers and duties that were vested in
the National Credit Union Administration, relating to
consumer financial protection functions, on the day before
the designated transfer date.
(7) Department of housing and urban development.--
(A) Transfer of functions.--All consumer protection
functions of the Secretary of the Department of Housing and
Urban Development relating to the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) and the
Secure and Fair Enforcement for Mortgage Licensing Act of
2008 (12 U.S.C. 5102 et seq.) are transferred to the Bureau.
(B) Authority of the department of housing and urban
development.--The Bureau shall have all powers and duties
that were vested in the Secretary of the Department of
Housing and Urban Development relating to the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.),
and the Secure and Fair Enforcement for Mortgage Licensing
Act of 2008 (12 U.S.C. 5101 et seq.), on the day before the
designated transfer date.
(c) Transfers of Functions Subject to Examination and
Enforcement Authority Remaining With Transferor Agencies.--
The transfers of functions in subsection (b) do not affect
the authority of the agencies identified in subsection (b)
from conducting examinations or initiating and maintaining
enforcement proceedings, including performing appropriate
supervisory and support functions relating thereto, in
accordance with sections 1024, 1025, and 1026.
(d) Effective Date.--Subsections (b) and (c) shall become
effective on the designated transfer date.

SEC. 1062. DESIGNATED TRANSFER DATE.

(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall--
(1) in consultation with the Chairman of the Board of
Governors, the Chairperson of the Corporation, the Chairman
of the Federal Trade Commission, the Chairman of the National
Credit Union Administration Board, the Comptroller of the
Currency, the Director of the Office of Thrift Supervision,
the Secretary of the Department of Housing and Urban
Development, and the Director of the Office of Management and
Budget, designate a single calendar date for the transfer of
functions to the Bureau under section 1061; and
(2) publish notice of that designated date in the Federal
Register.
(b) Changing Designation.--The Secretary--
(1) may, in consultation with the Chairman of the Board of
Governors, the Chairperson of the Federal Deposit Insurance
Corporation, the Chairman of the Federal Trade Commission,
the Chairman of the National Credit Union Administration
Board, the Comptroller of the Currency, the Director of the
Office of Thrift Supervision, the Secretary of the Department
of Housing and Urban Development, and the Director of the
Office of Management and Budget, change the date designated
under subsection (a); and
(2) shall publish notice of any changed designated date in
the Federal Register.
(c) Permissible Dates.--
(1) In general.--Except as provided in paragraph (2), any
date designated under this section shall be not earlier than
180 days, nor later than 18 months, after the date of
enactment of this Act.
(2) Extension of time.--The Secretary may designate a date
that is later than 18 months after the date of enactment of
this Act if the Secretary transmits to appropriate committees
of Congress--
(A) a written determination that orderly implementation of
this title is not feasible before the date that is 18 months
after the date of enactment of this Act;
(B) an explanation of why an extension is necessary for the
orderly implementation of this title; and
(C) a description of the steps that will be taken to effect
an orderly and timely implementation of this title within the
extended time period.
(3) Extension limited.--In no case may any date designated
under this section be later than 24 months after the date of
enactment of this Act.

SEC. 1063. SAVINGS PROVISIONS.

(a) Board of Governors.--
(1) Existing rights, duties, and obligations not
affected.--Section 1061(b)(1) does not affect the validity of
any right, duty, or obligation of the United States, the
Board of Governors (or any Federal reserve bank), or any
other person that--
(A) arises under any provision of law relating to any
consumer financial protection function of the Board of
Governors transferred to the Bureau by this title; and
(B) existed on the day before the designated transfer date.
(2) Continuation of suits.--No provision of this Act shall
abate any proceeding commenced by or against the Board of
Governors (or any Federal reserve bank) before the designated
transfer date with respect to any consumer financial
protection function of the Board of Governors (or any Federal
reserve bank) transferred to the Bureau by this title, except
that the Bureau, subject to sections 1024, 1025, and 1026,
shall be substituted for the Board of Governors (or Federal
reserve bank) as a party to any such proceeding as of the
designated transfer date.
(b) Federal Deposit Insurance Corporation.--
(1) Existing rights, duties, and obligations not
affected.--Section 1061(b)(4) does not affect the validity of
any right, duty, or obligation of the United States, the
Federal Deposit Insurance Corporation, the Board of Directors
of that Corporation, or any other person, that--
(A) arises under any provision of law relating to any
consumer financial protection function of the Federal Deposit
Insurance Corporation transferred to the Bureau by this
title; and
(B) existed on the day before the designated transfer date.

[[Page S3248]]

(2) Continuation of suits.--No provision of this Act shall
abate any proceeding commenced by or against the Federal
Deposit Insurance Corporation (or the Board of Directors of
that Corporation) before the designated transfer date with
respect to any consumer financial protection function of the
Federal Deposit Insurance Corporation transferred to the
Bureau by this title, except that the Bureau, subject to
sections 1024, 1025, and 1026, shall be substituted for the
Federal Deposit Insurance Corporation (or Board of Directors)
as a party to any such proceeding as of the designated
transfer date.
(c) Federal Trade Commission.--
(1) Existing rights, duties, and obligations not
affected.--Section 1061(b)(5) does not affect the validity of
any right, duty, or obligation of the United States, the
Federal Trade Commission, or any other person, that--
(A) arises under any provision of law relating to any
consumer financial protection function of the Federal Trade
Commission transferred to the Bureau by this title; and
(B) existed on the day before the designated transfer date.
(2) Continuation of suits.--No provision of this Act shall
abate any proceeding commenced by or against the Federal
Trade Commission before the designated transfer date with
respect to any consumer financial protection function of the
Federal Trade Commission transferred to the Bureau by this
title, except that the Bureau, subject to sections 1024,
1025, and 1026, shall be substituted for the Federal Trade
Commission as a party to any such proceeding as of the
designated transfer date.
(d) National Credit Union Administration.--
(1) Existing rights, duties, and obligations not
affected.--Section 1061(b)(6) does not affect the validity of
any right, duty, or obligation of the United States, the
National Credit Union Administration, the National Credit
Union Administration Board, or any other person, that--
(A) arises under any provision of law relating to any
consumer financial protection function of the National Credit
Union Administration transferred to the Bureau by this title;
and
(B) existed on the day before the designated transfer date.
(2) Continuation of suits.--No provision of this Act shall
abate any proceeding commenced by or against the National
Credit Union Administration (or the National Credit Union
Administration Board) before the designated transfer date
with respect to any consumer financial protection function of
the National Credit Union Administration transferred to the
Bureau by this title, except that the Bureau, subject to
sections 1024, 1025, and 1026, shall be substituted for the
National Credit Union Administration (or National Credit
Union Administration Board) as a party to any such proceeding
as of the designated transfer date.
(e) Office of the Comptroller of the Currency.--
(1) Existing rights, duties, and obligations not
affected.--Section 1061(b)(2) does not affect the validity of
any right, duty, or obligation of the United States, the
Comptroller of the Currency, the Office of the Comptroller of
the Currency, or any other person, that--
(A) arises under any provision of law relating to any
consumer financial protection function of the Comptroller of
the Currency transferred to the Bureau by this title; and
(B) existed on the day before the designated transfer date.
(2) Continuation of suits.--No provision of this Act shall
abate any proceeding commenced by or against the Comptroller
of the Currency (or the Office of the Comptroller of the
Currency) with respect to any consumer financial protection
function of the Comptroller of the Currency transferred to
the Bureau by this title before the designated transfer date,
except that the Bureau, subject to sections 1024, 1025, and
1026, shall be substituted for the Comptroller of the
Currency (or the Office of the Comptroller of the Currency)
as a party to any such proceeding as of the designated
transfer date.
(f) Office of Thrift Supervision.--
(1) Existing rights, duties, and obligations not
affected.--Section 1061(b)(3) does not affect the validity of
any right, duty, or obligation of the United States, the
Director of the Office of Thrift Supervision, the Office of
Thrift Supervision, or any other person, that--
(A) arises under any provision of law relating to any
consumer financial protection function of the Director of the
Office of Thrift Supervision transferred to the Bureau by
this title; and
(B) that existed on the day before the designated transfer
date.
(2) Continuation of suits.--No provision of this Act shall
abate any proceeding commenced by or against the Director of
the Office of Thrift Supervision (or the Office of Thrift
Supervision) with respect to any consumer financial
protection function of the Director of the Office of Thrift
Supervision transferred to the Bureau by this title before
the designated transfer date, except that the Bureau, subject
to sections 1024, 1025, and 1026, shall be substituted for
the Director (or the Office of Thrift Supervision) as a party
to any such proceeding as of the designated transfer date.
(g) Department of Housing and Urban Development.--
(1) Existing rights, duties, and obligations not
affected.--Section 1061(b)(7) shall not affect the validity
of any right, duty, or obligation of the United States, the
Secretary of the Department of Housing and Urban Development
(or the Department of Housing and Urban Development), or any
other person, that--
(A) arises under any provision of law relating to any
function of the Secretary of the Department of Housing and
Urban Development with respect to the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) or the Secure
and Fair Enforcement for Mortgage Licensing Act of 2008 (12
U.S.C. 5102 et seq.) transferred to the Bureau by this title;
and
(B) existed on the day before the designated transfer date.
(2) Continuation of suits.--This title shall not abate any
proceeding commenced by or against the Secretary of the
Department of Housing and Urban Development (or the
Department of Housing and Urban Development) with respect to
any consumer financial protection function of the Secretary
of the Department of Housing and Urban Development
transferred to the Bureau by this title before the designated
transfer date, except that the Bureau, subject to sections
1024, 1025, and 1026, shall be substituted for the Secretary
of the Department of Housing and Urban Development (or the
Department of Housing and Urban Development) as a party to
any such proceeding as of the designated transfer date.
(h) Continuation of Existing Orders, Rules, Determinations,
Agreements, and Resolutions.--All orders, resolutions,
determinations, agreements, and rules that have been issued,
made, prescribed, or allowed to become effective by any
transferor agency or by a court of competent jurisdiction, in
the performance of consumer financial protection functions
that are transferred by this title and that are in effect on
the day before the designated transfer date, shall continue
in effect according to the terms of those orders,
resolutions, determinations, agreements, and rules, and shall
not be enforceable by or against the Bureau.
(i) Identification of Rules Continued.--Not later than the
designated transfer date, the Bureau--
(1) shall, after consultation with the head of each
transferor agency, identify the rules continued under
subsection (h) that will be enforced by the Bureau; and
(2) shall publish a list of such rules in the Federal
Register.
(j) Status of Rules Proposed or Not Yet Effective.--
(1) Proposed rules.--Any proposed rule of a transferor
agency which that agency, in performing consumer financial
protection functions transferred by this title, has proposed
before the designated transfer date, but has not been
published as a final rule before that date, shall be deemed
to be a proposed rule of the Bureau.
(2) Rules not yet effective.--Any interim or final rule of
a transferor agency which that agency, in performing consumer
financial protection functions transferred by this title, has
published before the designated transfer date, but which has
not become effective before that date, shall become effective
as a rule of the Bureau according to its terms.

SEC. 1064. TRANSFER OF CERTAIN PERSONNEL.

(a) In General.--
(1) Certain federal reserve system employees transferred.--
(A) Identifying employees for transfer.--The Bureau and the
Board of Governors shall--
(i) jointly determine the number of employees of the Board
of Governors necessary to perform or support the consumer
financial protection functions of the Board of Governors that
are transferred to the Bureau by this title; and
(ii) consistent with the number determined under clause
(i), jointly identify employees of the Board of Governors for
transfer to the Bureau, in a manner that the Bureau and the
Board of Governors, in their sole discretion, determine
equitable.
(B) Identified employees transferred.--All employees of the
Board of Governors identified under subparagraph (A)(ii)
shall be transferred to the Bureau for employment.
(C) Federal reserve bank employees.--Employees of any
Federal reserve bank who, on the day before the designated
transfer date, are performing consumer financial protection
functions on behalf of the Board of Governors shall be
treated as employees of the Board of Governors for purposes
of subparagraphs (A) and (B).
(2) Certain fdic employees transferred.--
(A) Identifying employees for transfer.--The Bureau and the
Board of Directors of the Federal Deposit Insurance
Corporation shall--
(i) jointly determine the number of employees of that
Corporation necessary to perform or support the consumer
financial protection functions of the Corporation that are
transferred to the Bureau by this title; and
(ii) consistent with the number determined under clause
(i), jointly identify employees of the Corporation for
transfer to the Bureau, in a manner that the Bureau and the
Board of Directors of the Corporation, in their sole
discretion, determine equitable.
(B) Identified employees transferred.--All employees of the
Corporation identified under subparagraph (A)(ii) shall be
transferred to the Bureau for employment.
(3) Certain ncua employees transferred.--

[[Page S3249]]

(A) Identifying employees for transfer.--The Bureau and the
National Credit Union Administration Board shall--
(i) jointly determine the number of employees of the
National Credit Union Administration necessary to perform or
support the consumer financial protection functions of the
National Credit Union Administration that are transferred to
the Bureau by this title; and
(ii) consistent with the number determined under clause
(i), jointly identify employees of the National Credit Union
Administration for transfer to the Bureau, in a manner that
the Bureau and the National Credit Union Administration
Board, in their sole discretion, determine equitable.
(B) Identified employees transferred.--All employees of the
National Credit Union Administration identified under
subparagraph (A)(ii) shall be transferred to the Bureau for
employment.
(4) Certain office of the comptroller of the currency
employees transferred.--
(A) Identifying employees for transfer.--The Bureau and the
Comptroller of the Currency shall--
(i) jointly determine the number of employees of the Office
of the Comptroller of the Currency necessary to perform or
support the consumer financial protection functions of the
Office of the Comptroller of the Currency that are
transferred to the Bureau by this title; and
(ii) consistent with the number determined under clause
(i), jointly identify employees of the Office of the
Comptroller of the Currency for transfer to the Bureau, in a
manner that the Bureau and the Office of the Comptroller of
the Currency, in their sole discretion, determine equitable.
(B) Identified employees transferred.--All employees of the
Office of the Comptroller of the Currency identified under
subparagraph (A)(ii) shall be transferred to the Bureau for
employment.
(5) Certain office of thrift supervision employees
transferred.--
(A) Identifying employees for transfer.--The Bureau and the
Director of the Office of Thrift Supervision shall--
(i) jointly determine the number of employees of the Office
of Thrift Supervision necessary to perform or support the
consumer financial protection functions of the Office of
Thrift Supervision that are transferred to the Bureau by this
title; and
(ii) consistent with the number determined under clause
(i), jointly identify employees of the Office of Thrift
Supervision for transfer to the Bureau, in a manner that the
Bureau and the Office of Thrift Supervision, in their sole
discretion, determine equitable.
(B) Identified employees transferred.--All employees of the
Office of Thrift Supervision identified under subparagraph
(A)(ii) shall be transferred to the Bureau for employment.
(6) Certain employees of department of housing and urban
development transferred.--
(A) Identifying employees for transfer.--The Bureau and the
Secretary of the Department of Housing and Urban Development
shall--
(i) jointly determine the number of employees of the
Department of Housing and Urban Development necessary to
perform or support the consumer protection functions of the
Department that are transferred to the Bureau by this title;
and
(ii) consistent with the number determined under clause
(i), jointly identify employees of the Department of Housing
and Urban Development for transfer to the Bureau in a manner
that the Bureau and the Secretary of the Department of
Housing and Urban Development, in their sole discretion, deem
equitable.
(B) Identified employees transferred.--All employees of the
Department of Housing and Urban Development identified under
subparagraph (A)(ii) shall be transferred to the Bureau for
employment.
(7) Appointment authority for excepted service and senior
executive service transferred.--
(A) In general.--In the case of an employee occupying a
position in the excepted service or the Senior Executive
Service, any appointment authority established pursuant to
law or regulations of the Office of Personnel Management for
filling such positions shall be transferred, subject to
subparagraph (B).
(B) Declining transfers allowed.--An agency or entity may
decline to make a transfer of authority under subparagraph
(A) (and the employees appointed pursuant thereto) to the
extent that such authority relates to positions excepted from
the competitive service because of their confidential,
policy-making, policy-determining, or policy-advocating
character, and non-career positions in the Senior Executive
Service (within the meaning of section 3132(a)(7) of title 5,
United States Code).
(b) Timing of Transfers and Position Assignments.--Each
employee to be transferred under this section shall--
(1) be transferred not later than 90 days after the
designated transfer date; and
(2) receive notice of a position assignment not later than
120 days after the effective date of his or her transfer.
(c) Transfer of Function.--
(1) In general.--Notwithstanding any other provision of
law, the transfer of employees shall be deemed a transfer of
functions for the purpose of section 3503 of title 5, United
States Code.
(2) Priority of this title.--If any provisions of this
title conflict with any protection provided to transferred
employees under section 3503 of title 5, United States Code,
the provisions of this title shall control.
(d) Equal Status and Tenure Positions.--
(1) Employees transferred from fdic, ftc, hud, ncua, occ,
and ots.--Each employee transferred from the Federal Deposit
Insurance Corporation, the Federal Trade Commission, the
National Credit Union Administration, the Office of the
Comptroller of the Currency, the Office of Thrift
Supervision, or the Department of Housing and Urban
Development shall be placed in a position at the Bureau with
the same status and tenure as that employee held on the day
before the designated transfer date.
(2) Employees transferred from the federal reserve
system.--
(A) Comparability.--Each employee transferred from the
Board of Governors or from a Federal reserve bank shall be
placed in a position with the same status and tenure as that
of an employee transferring to the Bureau from the Office of
the Comptroller of the Currency who perform similar functions
and have similar periods of service.
(B) Service periods credited.--For purposes of this
paragraph, periods of service with the Board of Governors or
a Federal reserve bank shall be credited as periods of
service with a Federal agency.
(e) Additional Certification Requirements Limited.--
Examiners transferred to the Bureau are not subject to any
additional certification requirements before being placed in
a comparable examiner position at the Bureau examining the
same types of institutions as they examined before they were
transferred.
(f) Personnel Actions Limited.--
(1) 2-Year protection.--Except as provided in paragraph
(2), each transferred employee holding a permanent position
on the day before the designated transfer date may not,
during the 2-year period beginning on the designated transfer
date, be involuntarily separated, or involuntarily reassigned
outside his or her locality pay area, as defined by the
Office of Personnel Management.
(2) Exceptions.--Paragraph (1) does not limit the right of
the Bureau--
(A) to separate an employee for cause or for unacceptable
performance;
(B) to terminate an appointment to a position excepted from
the competitive service because of its confidential policy-
making, policy-determining, or policy-advocating character;
or
(C) to reassign a supervisory employee outside his or her
locality pay area, as defined by the Office of Personnel
Management, when the Bureau determines that the reassignment
is necessary for the efficient operation of the Bureau.
(g) Pay.--
(1) 2-Year protection.--Except as provided in paragraph
(2), each transferred employee shall, during the 2-year
period beginning on the designated transfer date, receive pay
at a rate equal to not less than the basic rate of pay
(including any geographic differential) that the employee
received during the pay period immediately preceding the date
of transfer.
(2) Exceptions.--Paragraph (1) does not limit the right of
the Bureau to reduce the rate of basic pay of a transferred
employee--
(A) for cause;
(B) for unacceptable performance; or
(C) with the consent of the employee.
(3) Protection only while employed.--Paragraph (1) applies
to a transferred employee only while that employee remains
employed by the Bureau.
(4) Pay increases permitted.--Paragraph (1) does not limit
the authority of the Bureau to increase the pay of a
transferred employee.
(h) Reorganization.--
(1) Between 1st and 3rd year.--
(A) In general.--If the Bureau determines, during the 2-
year period beginning 1 year after the designated transfer
date, that a reorganization of the staff of the Bureau is
required--
(i) that reorganization shall be deemed a ``major
reorganization'' for purposes of affording affected employees
retirement under section 8336(d)(2) or 8414(b)(1)(B) of title
5, United States Code;
(ii) before the reorganization occurs, all employees in the
same locality pay area as defined by the Office of Personnel
Management shall be placed in a uniform position
classification system; and
(iii) any resulting reduction in force shall be governed by
the provisions of chapter 35 of title 5, United States Code,
except that the Bureau shall--

(I) establish competitive areas (as that term is defined in
regulations issued by the Office of Personnel Management) to
include at a minimum all employees in the same locality pay
area as defined by the Office of Personnel Management;
(II) establish competitive levels (as that term is defined
in regulations issued by the Office of Personnel Management)
without regard to whether the particular employees have been
appointed to positions in the competitive service or the
excepted service; and
(III) afford employees appointed to positions in the
excepted service (other than to a position excepted from the
competitive service because of its confidential policy-
making, policy-determining, or policy-advocating character)
the same assignment rights to positions within the Bureau as
employees appointed to positions in the competitive service.

[[Page S3250]]

(B) Service credit for reductions in force.--For purposes
of this paragraph, periods of service with a Federal home
loan bank, a joint office of the Federal home loan banks, the
Board of Governors, a Federal reserve bank, the Federal
Deposit Insurance Corporation, or the National Credit Union
Administration shall be credited as periods of service with a
Federal agency.
(2) After 3rd year.--
(A) In general.--If the Bureau determines, at any time
after the 3-year period beginning on the designated transfer
date, that a reorganization of the staff of the Bureau is
required, any resulting reduction in force shall be governed
by the provisions of chapter 35 of title 5, United States
Code, except that the Bureau shall establish competitive
levels (as that term is defined in regulations issued by the
Office of Personnel Management) without regard to types of
appointment held by particular employees transferred under
this section.
(B) Service credit for reductions in force.--For purposes
of this paragraph, periods of service with a Federal home
loan bank, a joint office of the Federal home loan banks, the
Board of Governors, a Federal reserve bank, the Federal
Deposit Insurance Corporation, or the National Credit Union
Administration shall be credited as periods of service with a
Federal agency.
(i) Benefits.--
(1) Retirement benefits for transferred employees.--
(A) In general.--
(i) Continuation of existing retirement plan.--Except as
provided in subparagraph (B), each transferred employee shall
remain enrolled in his or her existing retirement plan,
through any period of continuous employment with the Bureau.
(ii) Employer contribution.--The Bureau shall pay any
employer contributions to the existing retirement plan of
each transferred employee, as required under that plan.
(B) Option for employees transferred from federal reserve
system to be subject to federal employee retirement
program.--
(i) Election.--Any transferred employee who was enrolled in
a Federal Reserve System retirement plan on the day before
his or her transfer to the Bureau may, during the 1-year
period beginning 6 months after the designated transfer date,
elect to be subject to the Federal employee retirement
program.
(ii) Effective date of coverage.--For any employee making
an election under clause (i), coverage by the Federal
employee retirement program shall begin 1 year after the
designated transfer date.
(C) Bureau participation in federal reserve system
retirement plan.--
(i) Separate account in federal reserve system retirement
plan established.--Notwithstanding any other provision of
law, and subject to the terms and conditions of this section,
a separate account in the Federal Reserve System retirement
plan shall be established for Bureau employees who do not
make the election under subparagraph (B).
(ii) Funds attributable to transferred employees remaining
in federal reserve system retirement plan transferred.--The
proportionate share of funds in the Federal Reserve System
retirement plan, including the proportionate share of any
funding surplus in that plan, attributable to a transferred
employee who does not make the election under subparagraph
(B), shall be transferred to the account established under
clause (i).
(iii) Employer contributions deposited.--The Bureau shall
deposit into the account established under clause (i) the
employer contributions that the Bureau makes on behalf of
employees who do not make the election under subparagraph
(B).
(iv) Account administration.--The Bureau shall administer
the account established under clause (i) as a participating
employer in the Federal Reserve System retirement plan.
(D) Definitions.--For purposes of this paragraph--
(i) the term ``existing retirement plan'' means, with
respect to any employee transferred under this section, the
particular retirement plan (including the Financial
Institutions Retirement Fund) and any associated thrift
savings plan of the agency or Federal reserve bank from which
the employee was transferred, in which the employee was
enrolled on the day before the designated transfer date; and
(ii) the term ``Federal employee retirement program'' means
the retirement program for Federal employees established by
chapter 84 of title 5, United States Code.
(2) Benefits other than retirement benefits for transferred
employees.--
(A) During 1st year.--
(i) Existing plans continue.--Each transferred employee
may, for 1 year after the designated transfer date, retain
membership in any other employee benefit program of the
agency or bank from which the employee transferred, including
a dental, vision, long term care, or life insurance program,
to which the employee belonged on the day before the
designated transfer date.
(ii) Employer contribution.--The Bureau shall reimburse the
agency or bank from which an employee was transferred for any
cost incurred by that agency or bank in continuing to extend
coverage in the benefit program to the employee, as required
under that program or negotiated agreements.
(B) Dental, vision, or life insurance after 1st year.--If,
after the 1-year period beginning on the designated transfer
date, the Bureau decides not to continue participation in any
dental, vision, or life insurance program of an agency or
bank from which an employee transferred, a transferred
employee who is a member of such a program may, before the
decision of the Bureau takes effect, elect to enroll, without
regard to any regularly scheduled open season, in--
(i) the enhanced dental benefits established by chapter 89A
of title 5, United States Code;
(ii) the enhanced vision benefits established by chapter
89B of title 5, United States Code; or
(iii) the Federal Employees Group Life Insurance Program
established by chapter 87 of title 5, United States Code,
without regard to any requirement of insurability.
(C) Long term care insurance after 1st year.--If, after the
1-year period beginning on the designated transfer date, the
Bureau decides not to continue participation in any long term
care insurance program of an agency or bank from which an
employee transferred, a transferred employee who is a member
of such a program may, before the decision of the Bureau
takes effect, elect to apply for coverage under the Federal
Long Term Care Insurance Program established by chapter 90 of
title 5, United States Code, under the underwriting
requirements applicable to a new active workforce member (as
defined in part 875, title 5, Code of Federal Regulations).
(D) Employee contribution.--An individual enrolled in the
Federal Employees Health Benefits program shall pay any
employee contribution required by the plan.
(E) Additional funding.--The Bureau shall transfer to the
Federal Employees Health Benefits Fund established under
section 8909 of title 5, United States Code, an amount
determined by the Director of the Office of Personnel
Management, after consultation with the Bureau and the Office
of Management and Budget, to be necessary to reimburse the
Fund for the cost to the Fund of providing benefits under
this paragraph.
(F) Credit for time enrolled in other plans.--For employees
transferred under this title, enrollment in a health benefits
plan administered by a transferor agency or a Federal reserve
bank, as the case may be, immediately before enrollment in a
health benefits plan under chapter 89 of title 5, United
States Code, shall be considered as enrollment in a health
benefits plan under that chapter for purposes of section
8905(b)(1)(A) of title 5, United States Code.
(G) Special provisions to ensure continuation of life
insurance benefits.--
(i) In general.--An annuitant (as defined in section
8901(3) of title 5, United States Code) who is enrolled in a
life insurance plan administered by a transferor agency on
the day before the designated transfer date shall be eligible
for coverage by a life insurance plan under sections 8706(b),
8714a, 8714b, and 8714c of title 5, United States Code, or in
a life insurance plan established by the Bureau, without
regard to any regularly scheduled open season and requirement
of insurability.
(ii) Employee contribution.--An individual enrolled in a
life insurance plan under this subparagraph shall pay any
employee contribution required by the plan.
(iii) Additional funding.--The Bureau shall transfer to the
Employees' Life Insurance Fund established under section 8714
of title 5, United States Code, an amount determined by the
Director of the Office of Personnel Management, after
consultation with the Bureau and the Office of Management and
Budget, to be necessary to reimburse the Fund for the cost to
the Fund of providing benefits under this subparagraph not
otherwise paid for by the employee under clause (ii).
(iv) Credit for time enrolled in other plans.--For
employees transferred under this title, enrollment in a life
insurance plan administered by a transferor agency
immediately before enrollment in a life insurance plan under
chapter 87 of title 5, United States Code, shall be
considered as enrollment in a life insurance plan under that
chapter for purposes of section 8706(b)(1)(A) of title 5,
United States Code.
(3) OPM rules.--The Office of Personnel Management shall
issue such rules as are necessary to carry out this
subsection.
(j) Implementation of Uniform Pay and Classification
System.--Not later than 2 years after the designated transfer
date, the Bureau shall implement a uniform pay and
classification system for all employees transferred under
this title.
(k) Equitable Treatment.--In administering the provisions
of this section, the Bureau--
(1) shall take no action that would unfairly disadvantage
transferred employees relative to each other based on their
prior employment by the Board of Governors, the Federal
Deposit Insurance Corporation, the Federal Trade Commission,
the National Credit Union Administration, the Office of the
Comptroller of the Currency, the Office of Thrift
Supervision, a Federal reserve bank, a Federal home loan
bank, or a joint office of the Federal home loan banks; and
(2) may take such action as is appropriate in individual
cases so that employees transferred under this section
receive equitable treatment, with respect to the status,
tenure, pay, benefits (other than benefits under programs
administered by the Office of Personnel Management), and
accrued leave or vacation time of those employees, for prior
periods of service with any Federal agency,

[[Page S3251]]

including the Board of Governors, the Corporation, the
Federal Trade Commission, the National Credit Union
Administration, the Office of the Comptroller of the
Currency, the Office of Thrift Supervision, a Federal reserve
bank, a Federal home loan bank, or a joint office of the
Federal home loan banks.
(l) Implementation.--In implementing the provisions of this
section, the Bureau shall coordinate with the Office of
Personnel Management and other entities having expertise in
matters related to employment to ensure a fair and orderly
transition for affected employees.

SEC. 1065. INCIDENTAL TRANSFERS.

(a) Incidental Transfers Authorized.--The Director of the
Office of Management and Budget, in consultation with the
Secretary, shall make such additional incidental transfers
and dispositions of assets and liabilities held, used,
arising from, available, or to be made available, in
connection with the functions transferred by this title, as
the Director may determine necessary to accomplish the
purposes of this title.
(b) Sunset.--The authority provided in this section shall
terminate 5 years after the date of enactment of this Act.

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 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.

SEC. 1067. TRANSITION OVERSIGHT.

(a) Purpose.--The purpose of this section is to ensure that
the Bureau--
(1) has an orderly and organized startup;
(2) attracts and retains a qualified workforce; and
(3) establishes comprehensive employee training and
benefits programs.
(b) Reporting Requirement.--
(1) In general.--The Bureau shall submit an annual report
to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the
House of Representatives that includes the plans described in
paragraph (2).
(2) Plans.--The plans described in this paragraph are as
follows:
(A) Training and workforce development plan.--The Bureau
shall submit a training and workforce development plan that
includes, to the extent practicable--
(i) identification of skill and technical expertise needs
and actions taken to meet those requirements;
(ii) steps taken to foster innovation and creativity;
(iii) leadership development and succession planning; and
(iv) effective use of technology by employees.
(B) Workplace flexibilities plan.--The Bureau shall submit
a workforce flexibility plan that includes, to the extent
practicable--
(i) telework;
(ii) flexible work schedules;
(iii) phased retirement;
(iv) reemployed annuitants;
(v) part-time work;
(vi) job sharing;
(vii) parental leave benefits and childcare assistance;
(viii) domestic partner benefits;
(ix) other workplace flexibilities; or
(x) any combination of the items described in clauses (i)
through (ix).
(C) Recruitment and retention plan.--The Bureau shall
submit a recruitment and retention plan that includes, to the
extent practicable, provisions relating to--
(i) the steps necessary to target highly qualified
applicant pools with diverse backgrounds;
(ii) streamlined employment application processes;
(iii) the provision of timely notification of the status of
employment applications to applicants; and
(iv) the collection of information to measure indicators of
hiring effectiveness.
(c) Expiration.--The reporting requirement under subsection
(b) shall terminate 5 years after the date of enactment of
this Act.
(d) Rule of Construction.--Nothing in this section may be
construed to affect--
(1) a collective bargaining agreement, as that term is
defined in section 7103(a)(8) of title 5, United States Code,
that is in effect on the date of enactment of this Act; or
(2) the rights of employees under chapter 71 of title 5,
United States Code.

Subtitle G--Regulatory Improvements

SEC. 1071. GAO STUDY ON THE EFFECTIVENESS AND IMPACT OF
VARIOUS APPRAISAL METHODS.

(a) In General.--The Government Accountability Office shall
conduct a study on the effectiveness and impact of various
appraisal methods, including the cost approach, the
comparative sales approach, the income approach, and others
that may be available.
(b) Study.--Not later than--
(1) 1 year after the date of enactment of this Act, the
Government Accountability Office shall submit a study to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives;
(2) 90 days after the date of enactment of this Act, the
Government Accountability Office shall provide a report on
the status of the study and any preliminary findings to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives.
(c) Content of Study.--The study required by this section
shall include an examination of--
(1) the prevalence, alone or in combination, of these
approaches in purchase-money and refinance mortgage
transactions;
(2) the accuracy of the various approaches in assessing the
property as collateral;
(3) whether and how the approaches contributed to price
speculation in the previous cycle;
(4) the costs to consumers of these approaches;
(5) the disclosure of fees to consumers in the appraisal
process;
(6) to what extent such approaches may be influenced by a
conflict of interest between the mortgage lender and the
appraiser and the mechanism by which the lender selects and
compensates the appraiser; and
(7) the suitability of appraisal approaches in rural versus
urban areas.

SEC. 1072. PROHIBITION ON CERTAIN PREPAYMENT PENALTIES.

(a) In General.--Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section
129A (15 U.S.C. 1639a) the following new section:

``SEC. 129B. PROHIBITION ON CERTAIN PREPAYMENT PENALTIES.

``(a) Prohibited on Certain Loans.--A residential mortgage
loan that is not a qualified mortgage may not contain terms
under which a consumer is required to pay a prepayment
penalty for paying all or part of the principal after the
loan is consummated.
``(b) Phased-Out Penalties on Qualified Mortgages.--
``(1) In general.--A qualified mortgage may not contain
terms under which a consumer is required to pay a prepayment
penalty for paying all or part of the principal after the
loan is consummated in excess of--
``(A) during the 1-year period beginning on the date on
which the loan is consummated, an amount equal to 3 percent
of the outstanding balance on the loan;
``(B) during the 1-year period beginning immediately after
the end of the period described in subparagraph (A), an
amount equal to 2 percent of the outstanding balance on the
loan; and
``(C) during the 1-year period beginning immediately after
the end of the 1-year period described in subparagraph (B),
an amount equal to 1 percent of the outstanding balance on
the loan.
``(2) Prohibition.--After the end of the 3-year period
beginning on the date on which the loan is consummated, no
prepayment penalty may be imposed on a qualified mortgage.
``(c) Option for No Prepayment Penalty Required.--A
creditor may not offer a consumer a residential mortgage loan
product that has a prepayment penalty for paying all or part
of the principal after the loan is consummated as a term of
the loan, without offering to the consumer a residential
mortgage loan product that does not have a prepayment penalty
as a term of the loan.
``(d) Prohibitions on Evasions, Structuring of
Transactions, and Reciprocal Arrangements.--A creditor may
not take any action in connection with a residential mortgage
loan--
``(1) to structure a loan transaction as an open end
consumer credit plan or another form of loan for the purpose
and with the intent of evading the provisions of this
section; or
``(2) to divide any loan transaction into separate parts
for the purpose and with the intent of evading provisions of
this section.
``(e) Publication of Average Prime Offer Rate and APR
Thresholds.--The Board--
``(1) shall publish, and update at least weekly, average
prime offer rates;
``(2) may publish multiple rates based on varying types of
mortgage transactions; and
``(3) shall adjust the thresholds of 1.50 percentage points
in subsection (g)(3)(A)(v)(I), 2.50 percentage points in
subsection (g)(3)(A)(v)(II), and 3.50 percentage points in
subsection (g)(3)(A)(v)(III), as necessary to reflect
significant changes in market conditions and to effectuate
the purposes of this section.
``(f) Regulations.--
``(1) In general.--The Bureau shall prescribe regulations
to carry out this section.
``(2) Revision of safe harbor criteria.--The Bureau may
prescribe regulations that revise, add to, or subtract from
the criteria that define a qualified mortgage, upon a finding
that such regulations are necessary or appropriate--
``(A) to ensure that responsible, affordable mortgage
credit remains available to consumers in a manner consistent
with the purposes of this section;
``(B) to effectuate the purposes of this section;
``(C) to prevent circumvention or evasion thereof; or
``(D) to facilitate compliance with this section.
``(3) Interagency harmonization.--
``(A) Determination of qualifying mortgage treatment.--The
agencies and officials described in subparagraph (B) shall,
in consultation with the Bureau, prescribe rules defining the
types of loans they insure, guarantee, or administer, as the
case may be,

[[Page S3252]]

that are qualified mortgages for purposes of this section,
upon a finding that such rules are consistent with the
purposes of this section or are appropriate to prevent
circumvention or evasion thereof or to facilitate compliance
with this section.
``(B) Agencies and officials.--The agencies and officials
described in this subparagraph are--
``(i) the Secretary of the Department of Housing and Urban
Development, with regard to mortgages insured under title II
of the National Housing Act (12 U.S.C. 1707 et seq.);
``(ii) the Secretary of Veterans Affairs, with regard to a
loan made or guaranteed by the Secretary of Veterans Affairs;
``(iii) the Secretary of Agriculture, with regard to loans
guaranteed by the Secretary of Agriculture pursuant to
section 502 of the Housing Act of 1949 (42 U.S.C. 1472(h));
``(iv) the Federal Housing Finance Agency, with regard to
loans meeting the conforming loan standards of the Federal
National Mortgage Association or the Federal Home Loan
Mortgage Corporation; and
``(v) the Rural Housing Service, with regard to loans
insured by the Rural Housing Service.
``(4) Implementation.--Regulations required or authorized
to be prescribed under this subsection--
``(A) shall be prescribed in final form before the end of
the 12-month period beginning on the date of enactment of
this section; and
``(B) shall take effect not later than 18 months after the
date of enactment of this section.
``(g) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Average prime offer rate.--The term `average prime
offer rate' means an annual percentage rate that is derived
from average interest rates, points, and other loan pricing
terms currently offered to consumers by a representative
sample of creditors for mortgage transactions that have low-
risk pricing characteristics.
``(2) Prepayment penalty.--The term `prepayment penalty'
means any penalty for paying all or part of the principal on
an extension of credit before the date on which the principal
is due, including a computation of a refund of unearned
interest by a method that is less favorable to the consumer
than the actuarial method, as defined in section 933(d) of
the Housing and Community Development Act of 1992 (15 U.S.C.
1615(d)).
``(3) Qualified mortgage.--The term `qualified mortgage'
means--
``(A) any residential mortgage loan--
``(i) that does not have an adjustable rate;
``(ii) that does not allow a consumer to defer repayment of
principal or interest, or is not otherwise deemed a `non-
traditional mortgage' under guidance, advisories, or
regulations prescribed by the Bureau;
``(iii) that does not provide for a repayment schedule that
results in negative amortization at any time;
``(iv) for which the terms are fully amortizing and which
does not result in a balloon payment, where a `balloon
payment' is a scheduled payment that is more than twice as
large as the average of earlier scheduled payments;
``(v) which has an annual percentage rate that does not
exceed the average prime offer rate for a comparable
transaction, as of the date on which the interest rate is
set--

``(I) by 1.5 or more percentage points, in the case of a
first lien residential mortgage loan having an original
principal obligation amount that is equal to or less than the
amount of the maximum limitation on the original principal
obligation of a mortgage in effect for a residence of the
applicable size, as of the date on which such interest rate
is set, pursuant to the sixth sentence of section 305(a)(2)
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2));
``(II) by 2.5 or more percentage points, in the case of a
first lien residential mortgage loan having an original
principal obligation amount that is more than the amount of
the maximum limitation on the original principal obligation
of a mortgage in effect for a residence of the applicable
size, as of the date on which such interest rate is set,
pursuant to the sixth sentence of section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)); or
``(III) by 3.5 or more percentage points, in the case of a
subordinate lien residential mortgage loan;

``(vi) for which the income and financial resources relied
upon to qualify the obligors on the loan are verified and
documented;
``(vii) for which the underwriting process is based on a
payment schedule that fully amortizes the loan over the loan
term and takes into account all applicable taxes, insurance,
and assessments;
``(viii) that does not cause the total monthly debts of the
consumer, including amounts under the loan, to exceed a
percentage established by regulation of the monthly gross
income of the consumer, or such other maximum percentage of
such income, as may be prescribed by regulation under
subsection (g), which rules shall take into consideration the
income of the consumer available to pay regular expenses
after payment of all installment and revolving debt;
``(ix) for which the total points and fees payable in
connection with the loan do not exceed 2 percent of the total
loan amount, where the term `points and fees' means points
and fees as defined by Section 103(aa)(4) of the Truth in
Lending Act (15 U.S.C. 1602(aa)(4)); and
``(x) for which the term of the loan does not exceed 30
years, except as such term may be extended under subsection
(g); and
``(B) any reverse mortgage that is insured by the Federal
Housing Administration or complies with the condition
established in subparagraph (A)(v).
``(4) Residential mortgage loan.--The term `residential
mortgage loan' means any consumer credit transaction that is
secured by a mortgage, deed of trust, or other equivalent
consensual security interest on a dwelling or on residential
real property that includes a dwelling, other than a consumer
credit transaction under an open end credit plan or an
extension of credit relating to a plan described in section
101(53D) of title 11, United States Code.''.
(b) Conforming Amendments.--Section 129(c) of the Truth in
Lending Act (15 U.S.C. 1639(c)) is amended--
(1) by striking paragraph (2);
(2) by striking ``(1) In general.--''; and
(3) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively.

SEC. 1073. ASSISTANCE FOR ECONOMICALLY VULNERABLE INDIVIDUALS
AND FAMILIES.

(a) HERA Amendments.--Section 1132 of the Housing and
Economic Recovery Act of 2008 (12 U.S.C. 1701x note) is
amended--
(1) in subsection (a), by inserting in each of paragraphs
(1), (2), (3), and (4) ``or economically vulnerable
individuals and families'' after ``homebuyers'' each place
that term appears;
(2) in subsection (b)(1), by inserting ``or economically
vulnerable individuals and families'' after ``homebuyers'';
(3) in subsection (c)(1)--
(A) in subparagraph (A), by striking ``or'' at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(C) a nonprofit corporation that--
``(i) is exempt from taxation under section 501(c)(3) of
the Internal Revenue Code of 1986; and
``(ii) specializes or has expertise in working with
economically vulnerable individuals and families, but whose
primary purpose is not provision of credit counseling
services.''; and
(4) in subsection (d)(1), by striking ``not more than 5''.
(b) Applicability.--Amendments made by subsection (a) shall
not apply to programs authorized by section 1132 of the
Housing and Economic Recovery Act of 2008 (12 U.S.C. 1701x
note) that are funded with appropriations prior to fiscal
year 2011.

SEC. 1074. REMITTANCE TRANSFERS.

(a) Treatment of Remittance Transfers.--The Electronic Fund
Transfer Act (15 U.S.C. 1693 et seq.) is amended--
(1) in section 902(b) (15 U.S.C. 1693(b)), by inserting
``and remittance'' after ``electronic fund'';
(2) by redesignating sections 919, 920, 921, and 922 as
sections 920, 921, 922, and 923, respectively; and
(3) by inserting after section 918 the following:

``SEC. 919. REMITTANCE TRANSFERS.

``(a) Disclosures Required for Remittance Transfers.--
``(1) In general.--Each remittance transfer provider shall
make disclosures as required under this section and in
accordance with rules prescribed by the Board.
``(2) Storefront disclosures.--
``(A) In general.--At every physical storefront location
owned or controlled by a remittance transfer provider (with
respect to remittance transfer activities), the remittance
transfer provider shall prominently post, and update daily, a
notice describing a model transfer for the amounts of $100
and $200 (in United States dollars) showing the amount of
currency that will be received by the designated recipient,
using the values of the currency into which the funds will be
exchanged for the 3 currencies to which that particular
storefront sends the greatest number of remittance transfer
payments, measured irrespective of the value of such
payments. The values shall include all fees charged by the
remittance transfer provider, taken out of the $100 and $200
amounts.
``(B) Electronic disclosure.--Subject to the rules
prescribed by the Board, a remittance transfer provider shall
prominently post, and update daily, a notice describing a
model transfer, as described in subparagraph (A), on the
Internet site owned or controlled by the remittance transfer
provider which senders use to electronically conduct
remittance transfer transactions.
``(3) Specific disclosures.--In addition to any other
disclosures applicable under this title, and subject to
paragraph (4), a remittance transfer provider shall provide,
in writing and in a form that the sender may keep, to each
sender requesting a remittance transfer, as applicable to the
transaction--
``(A) at the time at which the sender requests a remittance
transfer to be initiated, and prior to the sender making any
payment in connection with the remittance transfer, a
disclosure describing the amount of currency that will be
sent to the designated recipient, using the values of the
currency into which the funds will be exchanged; and
``(B) at the time at which the sender makes payment in
connection with the remittance transfer--
``(i) a receipt showing--

``(I) the information described in subparagraph (A);

[[Page S3253]]

``(II) the promised date of delivery to the designated
recipient; and
``(III) the name and either the telephone number or the
address of the designated recipient; and

``(ii) a statement containing--

``(I) information about the rights of the sender under this
section regarding the resolution of errors; and
``(II) appropriate contact information for--

``(aa) the remittance transfer provider; and
``(bb) each State or Federal agency supervising the
remittance transfer provider, including its State licensing
authority or Federal regulator, as applicable.
``(4) Requirements relating to disclosures.--With respect
to each disclosure required to be provided under paragraph
(3), and subject to paragraph (5), a remittance transfer
provider shall--
``(A) provide an initial notice and receipt, as required by
subparagraphs (A) and (B) of paragraph (3), and an error
resolution statement, as required by subsection (c), that
clearly and conspicuously describe the information required
to be disclosed therein; and
``(B) with respect to any transaction that a sender
conducts electronically, comply with the Electronic
Signatures in Global and National Commerce Act (15 U.S.C.
7001 et seq.).
``(5) Exemption authority.--The Board may, by rule, permit
a remittance transfer provider to satisfy the requirements
of--
``(A) paragraph (3)(A) orally, if the transaction is
conducted entirely by telephone;
``(B) paragraph (3)(B), by mailing the documents required
under such subparagraph to the sender, not later than 1
business day after the date on which the transaction is
conducted, if the transaction is conducted entirely by
telephone;
``(C) subparagraphs (A) and (B) of paragraph (3) together
in one written disclosure, but only to the extent that the
information provided in accordance with paragraph (3)(A) is
accurate at the time at which payment is made in connection
with the subject remittance transfer;
``(D) paragraph (3)(A), if a sender initiates a transaction
to one of those countries displayed, in the exact amount of
the transfers displayed pursuant to paragraph (2), if the
Board finds it to be appropriate; and
``(E) paragraph (3)(A), without compliance with section
101(c) of the Electronic Signatures in Global Commerce Act,
if a sender initiates the transaction electronically and the
information is displayed electronically in a manner that the
sender can keep.
``(b) Foreign Language Disclosures.--
``(1) In general.--The disclosures required under this
section shall be made in English and in each of the same
foreign languages principally used by the remittance transfer
provider, or any of its agents, to advertise, solicit, or
market, either orally or in writing, at that office.
``(2) Accounts.--In the case of a sender who holds a demand
deposit, savings deposit, or other asset account with the
remittance transfer provider (other than an occasional or
incidental credit balance under an open end credit plan, as
defined in section 103(i) of the Truth in Lending Act), the
disclosures required under this section shall be made in the
language or languages principally used by the remittance
transfer provider to communicate to the sender with respect
to the account.
``(c) Remittance Transfer Errors.--
``(1) Error resolution.--
``(A) In general.--If a remittance transfer provider
receives oral or written notice from the sender within 180
days of the promised date of delivery that an error occurred
with respect to a remittance transfer, including the amount
of currency designated in subsection (a)(3)(A) that was to be
sent to the designated recipient of the remittance transfer,
using the values of the currency into which the funds should
have been exchanged, but was not made available to the
designated recipient in the foreign country, the remittance
transfer provider shall resolve the error pursuant to this
subsection and investigate the reason for the error.
``(B) Remedies.--Not later than 90 days after the date of
receipt of a notice from the sender pursuant to subparagraph
(A), the remittance transfer provider shall, as applicable to
the error and as designated by the sender--
``(i) refund to the sender the total amount of funds
tendered by the sender in connection with the remittance
transfer which was not properly transmitted;
``(ii) make available to the designated recipient, without
additional cost to the designated recipient or to the sender,
the amount appropriate to resolve the error;
``(iii) provide such other remedy, as determined
appropriate by rule of the Board for the protection of
senders; or
``(iv) provide written notice to the sender that there was
no error with an explanation responding to the specific
complaint of the sender.
``(2) Rules.--The Board shall establish, by rule issued not
later than 1 calendar year after the date of enactment of the
Restoring American Financial Stability Act of 2010, clear and
appropriate standards for remittance transfer providers with
respect to error resolution relating to remittance transfers,
to protect senders from such errors. Standards prescribed
under this paragraph shall include appropriate standards
regarding record keeping, as required, including
documentation--
``(A) of the complaint of the sender;
``(B) that the sender provides the remittance transfer
provider with respect to the alleged error; and
``(C) of the findings of the remittance transfer provider
regarding the investigation of the alleged error that the
sender brought to their attention.
``(d) Applicability of This Title.--
``(1) In general.--A remittance transfer that is not an
electronic fund transfer, as defined in section 903, shall
not be subject to any of the provisions of sections 905
through 913. A remittance transfer that is an electronic fund
transfer, as defined in section 903, shall be subject to all
provisions of this title, except for section 908, that are
otherwise applicable to electronic fund transfers under this
title.
``(2) Rule of construction.--Nothing in this section shall
be construed--
``(A) to affect the application to any transaction, to any
remittance provider, or to any other person of any of the
provisions of subchapter II of chapter 53 of title 31, United
States Code, section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b), or chapter 2 of title I of Public Law 91-
508 (12 U.S.C. 1951-1959), or any regulations promulgated
thereunder; or
``(B) to cause any fund transfer that would not otherwise
be treated as such under paragraph (1) to be treated as an
electronic fund transfer, or as otherwise subject to this
title, for the purposes of any of the provisions referred to
in subparagraph (A) or any regulations promulgated
thereunder.
``(e) Acts of Agents.--A remittance transfer provider shall
be liable for any violation of this section by any agent,
authorized delegate, or person affiliated with such provider,
when such agent, authorized delegate, or affiliate acts for
that remittance transfer provider.
``(f) Definitions.--As used in this section--
``(1) the term `designated recipient' means any person
located in a foreign country and identified by the sender as
the authorized recipient of a remittance transfer to be made
by a remittance transfer provider, except that a designated
recipient shall not be deemed to be a consumer for purposes
of this Act;
``(2) the term `remittance transfer' means the electronic
(as defined in section 106(2) of the Electronic Signatures in
Global and National Commerce Act (15 U.S.C. 7006(2)))
transfer of funds requested by a sender located in any State
to a designated recipient that is initiated by a remittance
transfer provider, whether or not the sender holds an account
with the remittance transfer provider or whether or not the
remittance transfer is also an electronic fund transfer, as
defined in section 903;
``(3) the term `remittance transfer provider' means any
person or financial institution that provides remittance
transfers for a consumer in the normal course of its
business, whether or not the consumer holds an account with
such person or financial institution; and
``(4) the term `sender' means a consumer who requests a
remittance provider to send a remittance transfer for the
consumer to a designated recipient.''.
(b) Automated Clearinghouse System.--
(1) Expansion of system.--The Board of Governors shall work
with the Federal reserve banks to expand the use of the
automated clearinghouse system for remittance transfers to
foreign countries, with a focus on countries that receive
significant remittance transfers from the United States,
based on--
(A) the number, volume, and size of such transfers;
(B) the significance of the volume of such transfers
relative to the external financial flows of the receiving
country, including--
(i) the total amount transferred; and
(ii) the total volume of payments made by United States
Government agencies to beneficiaries and retirees living
abroad;
(C) the feasibility of such an expansion; and
(D) the ability of the Federal Reserve System to establish
payment gateways in different geographic regions and currency
zones to receive remittance transfers and route them through
the payments systems in the destination countries.
(2) Report to congress.--Not later than one calendar year
after the date of enactment of this Act, and on April 30
biennially thereafter during the 10-year period beginning on
that date of enactment, the Board of Governors shall submit a
report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives on the status of the
automated clearinghouse system and its progress in complying
with the requirements of this subsection. The report shall
include an analysis of adoption rates of International ACH
Transactions rules and formats, the efficacy of increasing
adoption rates, and potential recommendations to increase
adoption.
(c) Expansion of Financial Institution Provision of
Remittance Transfers.--
(1) Provision of guidelines to institutions.--Each of the
Federal banking agencies and the National Credit Union
Administration shall provide guidelines to financial
institutions under the jurisdiction of the agency regarding
the offering of low-cost remittance transfers and no-cost or
low-cost basic consumer accounts, as well as agency services
to remittance transfer providers.
(2) Assistance to financial literacy commission.--As part
of its duties as members of the Financial Literacy and
Education Commission, the Bureau, the Federal banking

[[Page S3254]]

agencies, and the National Credit Union Administration shall
assist the Financial Literacy and Education Commission in
executing the Strategy for Assuring Financial Empowerment (or
the ``SAFE Strategy''), as it relates to remittances.
(d) Federal Credit Union Act Conforming Amendment.--
Paragraph (12) of section 107 of the Federal Credit Union Act
(12 U.S.C. 1757) is amended to read as follows:
``(12) in accordance with regulations prescribed by the
Board--
``(A) to sell, to persons in the field of membership,
negotiable checks (including travelers checks), money orders,
and other similar money transfer instruments (including
international and domestic electronic fund transfers);
``(B) to provide remittance transfers, as defined in
section 919 of the Electronic Fund Transfer Act, to persons
in the field of membership; and
``(C) to cash checks and money orders for persons in the
field of membership for a fee;''.

Subtitle H--Conforming Amendments

SEC. 1081. AMENDMENTS TO THE INSPECTOR GENERAL ACT.

Effective on the date of enactment of this Act, the
Inspector General Act of 1978 (5 U.S.C. App. 3) is amended--
(1) in section 8G(a)(2), by inserting ``and the Bureau of
Consumer Financial Protection'' after ``Board of Governors of
the Federal Reserve System'';
(2) in section 8G(c), by adding at the end the following:
``For purposes of implementing this section, the Chairman of
the Board of Governors of the Federal Reserve System shall
appoint the Inspector General of the Board of Governors of
the Federal Reserve System and the Bureau of Consumer
Financial Protection. The Inspector General of the Board of
Governors of the Federal Reserve System and the Bureau of
Consumer Financial Protection shall have all of the
authorities and responsibilities provided by this Act with
respect to the Bureau of Consumer Financial Protection, as if
the Bureau were part of the Board of Governors of the Federal
Reserve System.''; and
(3) in section 8G(g)(3), by inserting ``and the Bureau of
Consumer Financial Protection'' after ``Board of Governors of
the Federal Reserve System'' the first place that term
appears.

SEC. 1082. AMENDMENTS TO THE PRIVACY ACT OF 1974.

Effective on the date of enactment of this Act, section
552a of title 5, United States Code, is amended by adding at
the end the following:
``(w) Applicability to Bureau of Consumer Financial
Protection.--Except as provided in the Consumer Financial
Protection Act of 2010, this section shall apply with respect
to the Bureau of Consumer Financial Protection.''.

SEC. 1083. AMENDMENTS TO THE ALTERNATIVE MORTGAGE TRANSACTION
PARITY ACT OF 1982.

(a) In General.--The Alternative Mortgage Transaction
Parity Act of 1982 (12 U.S.C. 3801 et seq.) is amended--
(1) in section 803 (12 U.S.C. 3802(1)), by striking
``1974'' and all that follows through ``described and
defined'' and inserting the following: ``1974), in which the
interest rate or finance charge may be adjusted or
renegotiated, described and defined''; and
(2) in section 804 (12 U.S.C. 3803)--
(A) in subsection (a)--
(i) in each of paragraphs (1), (2), and (3), by inserting
after ``transactions made'' each place that term appears ``on
or before the designated transfer date, as determined under
section 1062 of the Consumer Financial Protection Act of
2010,'';
(ii) in paragraph (2), by striking ``and'' at the end;
(iii) in paragraph (3), by striking the period at the end
and inserting ``; and''; and
(iv) by adding at the end the following new paragraph:
``(4) with respect to transactions made after the
designated transfer date, only in accordance with regulations
governing alternative mortgage transactions, as issued by the
Bureau of Consumer Financial Protection for federally
chartered housing creditors, in accordance with the
rulemaking authority granted to the Bureau of Consumer
Financial Protection with regard to federally chartered
housing creditors under provisions of law other than this
section.'';
(B) by striking subsection (c) and inserting the following:
``(c) Preemption of State Law.--An alternative mortgage
transaction may be made by a housing creditor in accordance
with this section, notwithstanding any State constitution,
law, or regulation that prohibits an alternative mortgage
transaction. For purposes of this subsection, a State
constitution, law, or regulation that prohibits an
alternative mortgage transaction does not include any State
constitution, law, or regulation that regulates mortgage
transactions generally, including any restriction on
prepayment penalties or late charges.''; and
(C) by adding at the end the following:
``(d) Bureau Actions.--The Bureau of Consumer Financial
Protection shall--
``(1) review the regulations identified by the Comptroller
of the Currency and the National Credit Union Administration,
(as those rules exist on the designated transfer date), as
applicable under paragraphs (1) through (3) of subsection
(a);
``(2) determine whether such regulations are fair and not
deceptive and otherwise meet the objectives of the Consumer
Financial Protection Act of 2010; and
``(3) promulgate regulations under subsection (a)(4) after
the designated transfer date.
``(e) Designated Transfer Date.--As used in this section,
the term `designated transfer date' means the date determined
under section 1062 of the Consumer Financial Protection Act
of 2010.''.
(b) Effective Date.--This section and the amendments made
by this section shall become effective on the designated
transfer date.
(c) Rule of Construction.--The amendments made by
subsection (a) shall not affect any transaction covered by
the Alternative Mortgage Transaction Parity Act of l982 (12
U.S.C. 3801 et seq.) and entered into on or before the
designated transfer date.

SEC. 1084. AMENDMENTS TO THE ELECTRONIC FUND TRANSFER ACT.

The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.)
is amended--
(1) by striking ``Board'' each place that term appears and
inserting ``Bureau'', except in section 918 (as so designated
by the Credit Card Act of 2009) (15 U.S.C. 1693o);
(2) in section 903 (15 U.S.C. 1693a), by striking paragraph
(3) and inserting the following:
``(3) the term `Bureau' means the Bureau of Consumer
Financial Protection;'';
(3) in section 916(d) (as so designated by section 401 of
the Credit CARD Act of 2009) (15 U.S.C. 1693m)--
(A) by striking ``Federal Reserve System'' and inserting
``Bureau of Consumer Financial Protection''; and
(B) by striking ``Federal Reserve System'' and inserting
``Bureau of Consumer Financial Protection''; and
(4) in section 918 (as so designated by the Credit CARD Act
of 2009) (15 U.S.C. 1693o)--
(A) in subsection (a)--
(i) by striking ``Compliance'' and inserting ``Except as
otherwise provided by subtitle B of the Consumer Financial
Protection Act of 2010, compliance''; and
(ii) by striking paragraph (2) and inserting the following:
``(2) subtitle E of the Consumer Financial Protection Act
of 2010, by the Bureau;''; and
(B) by striking subsection (c) and inserting the following:
``(c) Overall Enforcement Authority of the Federal Trade
Commission.--Except to the extent that enforcement of the
requirements imposed under this title is specifically
committed to some other Government agency under subsection
(a), and subject to subtitle B of the Consumer Financial
Protection Act of 2010, the Federal Trade Commission shall
enforce such requirements. For the purpose of the exercise by
the Federal Trade Commission of its functions and powers
under the Federal Trade Commission Act, a violation of any
requirement imposed under this title shall be deemed a
violation of a requirement imposed under that Act. All of the
functions and powers of the Federal Trade Commission under
the Federal Trade Commission Act are available to the Federal
Trade Commission to enforce compliance by any person subject
to the jurisdiction of the Federal Trade Commission with the
requirements imposed under this title, irrespective of
whether that person is engaged in commerce or meets any other
jurisdictional tests under the Federal Trade Commission
Act.''.

SEC. 1085. AMENDMENTS TO THE EQUAL CREDIT OPPORTUNITY ACT.

The Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.)
is amended--
(1) by striking ``Board'' each place that term appears and
inserting ``Bureau'';
(2) in section 702 (15 U.S.C. 1691a), by striking
subsection (c) and inserting the following:
``(c) The term `Bureau' means the Bureau of Consumer
Financial Protection.'';
(3) in section 703 (15 U.S.C. 1691b)--
(A) by striking the section heading and inserting the
following:

``SEC. 703. PROMULGATION OF REGULATIONS BY THE BUREAU.'';

(B) by striking ``(a) Regulations.--'';
(C) by striking subsection (b);
(D) by redesignating paragraphs (1) through (5) as
subsections (a) through (e), respectively; and
(E) in subsection (c), as so redesignated, by striking
``paragraph (2)'' and inserting ``subsection (b)'';
(4) in section 704 (15 U.S.C. 1691c)--
(A) in subsection (a)--
(i) by striking ``Compliance'' and inserting ``Except as
otherwise provided by subtitle B of the Consumer Protection
Financial Protection Act of 2010''; and
(ii) by striking paragraph (2) and inserting the following:
``(2) Subtitle E of the Consumer Financial Protection Act
of 2010, by the Bureau.'';
(B) by striking subsection (c) and inserting the following:
``(c) Overall Enforcement Authority of Federal Trade
Commission.--Except to the extent that enforcement of the
requirements imposed under this title is specifically
committed to some other Government agency under subsection
(a), and subject to subtitle B of the Consumer Financial
Protection Act of 2010, the Federal Trade Commission shall
enforce such requirements. For the purpose of the exercise by
the Federal Trade Commission of its functions and powers
under the Federal Trade Commission Act (15 U.S.C. 41 et
seq.), a violation of any requirement imposed under this
subchapter shall be deemed a violation of a requirement
imposed under that Act. All of the functions and powers of
the Federal Trade Commission under

[[Page S3255]]

the Federal Trade Commission Act are available to the Federal
Trade Commission to enforce compliance by any person with the
requirements imposed under this title, irrespective of
whether that person is engaged in commerce or meets any other
jurisdictional tests under the Federal Trade Commission Act,
including the power to enforce any rule prescribed by the
Bureau under this title in the same manner as if the
violation had been a violation of a Federal Trade Commission
trade regulation rule.''; and
(C) in subsection (d), by striking ``Board'' and inserting
``Bureau''; and
(5) in section 706(e) (15 U.S.C. 1691e(e))--
(A) in the subsection heading--
(i) by striking ``Board'' each place that term appears and
inserting ``Bureau''; and
(ii) by striking ``Federal Reserve System'' and inserting
``Bureau of Consumer Financial Protection''; and
(B) by striking ``Federal Reserve System'' and inserting
``Bureau of Consumer Financial Protection''.

SEC. 1086. AMENDMENTS TO THE EXPEDITED FUNDS AVAILABILITY
ACT.

(a) Amendment to Section 603.--Section 603(d)(1) of the
Expedited Funds Availability Act (12 U.S.C. 4002) is amended
by inserting after ``Board'' the following ``, jointly with
the Director of the Bureau of Consumer Financial
Protection,''.
(b) Amendments to Section 604.--Section 604 of the
Expedited Funds Availability Act (12 U.S.C. 4003) is
amended--
(1) by inserting after ``Board'' each place that term
appears, other than in subsection (f), the following: ``,
jointly with the Director of the Bureau of Consumer Financial
Protection,''; and
(2) in subsection (f), by striking ``Board.'' each place
that term appears and inserting the following: ``Board,
jointly with the Director of the Bureau of Consumer Financial
Protection.''.
(c) Amendments to Section 605.--Section 605 of the
Expedited Funds Availability Act (12 U.S.C. 4004) is
amended--
(1) by inserting after ``Board'' each place that term
appears, other than in the heading for section 605(f)(1), the
following: ``, jointly with the Director of the Bureau of
Consumer Financial Protection,''; and
(2) in subsection (f)(1), in the paragraph heading, by
inserting ``and bureau'' after ``board''.
(d) Amendments to Section 609.--Section 609 of the
Expedited Funds Availability Act (12 U.S.C. 4008) is amended:
(1) in subsection (a), by inserting after ``Board'' the
following ``, jointly with the Director of the Bureau of
Consumer Financial Protection,''; and
(2) by striking subsection (e) and inserting the following:
``(e) Consultations.--In prescribing regulations under
subsections (a) and (b), the Board and the Director of the
Bureau 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.''.
(e) Expedited Funds Availability Improvements.--Section 603
of the Expedited Funds Availability Act (12 U.S.C. 4002) is
amended--
(1) in subsection (a)(2)(D), by striking ``$100'' and
inserting ``$200''; and
(2) in subsection (b)(3)(C), in the subparagraph heading,
by striking ``$100'' and inserting ``$200''; and
(3) in subsection (c)(1)(B)(iii), in the clause heading, by
striking ``$100'' and inserting ``$200''.
(f) Regular Adjustments for Inflation.--Section 607 of the
Expedited Funds Availability Act (12 U.S.C. 4006) is amended
by adding at the end the following:
``(f) Adjustments to Dollar Amounts for Inflation.--The
dollar amounts under this title shall be adjusted every 5
years after December 31, 2011, by the annual percentage
increase in the Consumer Price Index for Urban Wage Earners
and Clerical Workers, as published by the Bureau of Labor
Statistics, rounded to the nearest multiple of $25.''.

SEC. 1087. AMENDMENTS TO THE FAIR CREDIT BILLING ACT.

The Fair Credit Billing Act (15 U.S.C. 1666-1666j) is
amended by striking ``Board'' each place that term appears
and inserting ``Bureau''.

SEC. 1088. AMENDMENTS TO THE FAIR CREDIT REPORTING ACT AND
THE FAIR AND ACCURATE CREDIT TRANSACTIONS ACT.

(a) Fair Credit Reporting Act.--The Fair Credit Reporting
Act (15 U.S.C. 1681 et seq.) is amended--
(1) in section 603 (15 U.S.C. 1681a)--
(A) by redesignating subsections (w) and (x) as subsections
(x) and (y), respectively; and
(B) by inserting after subsection (v) the following:
``(w) The term `Bureau' means the Bureau of Consumer
Financial Protection.''; and
(2) except as otherwise specifically provided in this
subsection--
(A) by striking ``Federal Trade Commission'' each place
that term appears and inserting ``Bureau'';
(B) by striking ``FTC'' each place that term appears and
inserting ``Bureau'';
(C) by striking ``the Commission'' each place that term
appears and inserting ``the Bureau''; and
(D) by striking ``The Federal banking agencies, the
National Credit Union Administration, and the Commission
shall jointly'' each place that term appears and inserting
``The Bureau shall'';
(3) in section 603(k)(2) (15 U.S.C. 1681a(k)(2)), by
striking ``Board of Governors of the Federal Reserve System''
and inserting ``Bureau'';
(4) in section 604(g) (15 U.S.C. 1681b(g))--
(A) in paragraph (3), by striking subparagraph (C) and
inserting the following:
``(C) as otherwise determined to be necessary and
appropriate, by regulation or order, by the Bureau
(consistent with the enforcement authorities prescribed under
section 621(b)), or the applicable State insurance authority
(with respect to any person engaged in providing insurance or
annuities).'';
(B) by striking paragraph (5) and inserting the following:
``(5) Regulations and effective date for paragraph (2).--
``(A) Regulations required.--The Bureau may, after notice
and opportunity for comment, prescribe regulations that
permit transactions under paragraph (2) that are determined
to be necessary and appropriate to protect legitimate
operational, transactional, risk, consumer, and other needs
(and which shall include permitting actions necessary for
administrative verification purposes), consistent with the
intent of paragraph (2) to restrict the use of medical
information for inappropriate purposes.''; and
(C) by striking paragraph (6);
(5) in section 611(e)(2) (15 U.S.C. 1681i(e)), by striking
paragraph (2) and inserting the following:
``(2) Exclusion.--Complaints received or obtained by the
Bureau pursuant to its investigative authority under the
Consumer Financial Protection Act of 2010 shall not be
subject to paragraph (1).'';
(6) in section 615(h)(6) (15 U.S.C. 1681m(h)(6)), by
striking subparagraph (A) and inserting the following:
``(A) Rules required.--The Bureau shall prescribe rules to
carry out this subsection.'';
(7) in section 621 (15 U.S.C. 1681s)--
(A) by striking subsection (a) and inserting the following:
``(a) Enforcement by Federal Trade Commission.--
``(1) In general.--Except as otherwise provided by subtitle
B of the Consumer Financial Protection Act of 2010,
compliance with the requirements imposed under this title
shall be enforced under the Federal Trade Commission Act (15
U.S.C. 41 et seq.) by the Federal Trade Commission, with
respect to consumer reporting agencies and all other persons
subject thereto, except to the extent that enforcement of the
requirements imposed under this title is specifically
committed to some other Government agency under subsection
(b). For the purpose of the exercise by the Federal Trade
Commission of its functions and powers under the Federal
Trade Commission Act, a violation of any requirement or
prohibition imposed under this title shall constitute an
unfair or deceptive act or practice in commerce, in violation
of section 5(a) of the Federal Trade Commission Act (15
U.S.C. 45(a)), and shall be subject to enforcement by the
Federal Trade Commission under section 5(b) of that Act with
respect to any consumer reporting agency or person that is
subject to enforcement by the Federal Trade Commission
pursuant to this subsection, irrespective of whether that
person is engaged in commerce or meets any other
jurisdictional tests under the Federal Trade Commission Act.
The Federal Trade Commission shall have such procedural,
investigative, and enforcement powers (except as otherwise
provided by subtitle B of the Consumer Financial Protection
Act of 2010), including the power to issue procedural rules
in enforcing compliance with the requirements imposed under
this title and to require the filing of reports, the
production of documents, and the appearance of witnesses, as
though the applicable terms and conditions of the Federal
Trade Commission Act were part of this title. Any person
violating any of the provisions of this title shall be
subject to the penalties and entitled to the privileges and
immunities provided in the Federal Trade Commission Act as
though the applicable terms and provisions of such Act are
part of this title.
``(2) Penalties.--
``(A) Knowing violations.--Except as otherwise provided by
subtitle B of the Consumer Financial Protection Act of 2010,
in the event of a knowing violation, which constitutes a
pattern or practice of violations of this title, the Federal
Trade Commission may commence a civil action to recover a
civil penalty in a district court of the United States
against any person that violates this title. In such action,
such person shall be liable for a civil penalty of not more
than $2,500 per violation.
``(B) Determining penalty amount.--In determining the
amount of a civil penalty under subparagraph (A), the court
shall take into account the degree of culpability, any
history of such prior conduct, ability to pay, effect on
ability to continue to do business, and such other matters as
justice may require.
``(C) Limitation.--Notwithstanding paragraph (2), a court
may not impose any civil penalty on a person for a violation
of section 623(a)(1), unless the person has been enjoined
from committing the violation, or ordered not to commit the
violation, in an action or proceeding brought by or on behalf
of the Federal Trade Commission, and has violated the
injunction or order, and the court may

[[Page S3256]]

not impose any civil penalty for any violation occurring
before the date of the violation of the injunction or
order.'';
(8) by striking subsection (b) and inserting the following:
``(b) Enforcement by Other Agencies.--
``(1) In general.--Except as otherwise provided by subtitle
B of the Consumer Financial Protection Act of 2010,
compliance with the requirements imposed under this title
with respect to consumer reporting agencies, persons who use
consumer reports from such agencies, persons who furnish
information to such agencies, and users of information that
are subject to section 615(d) shall be enforced under--
``(A) section 8 of the Federal Deposit Insurance Act (12
U.S.C. 1818), in the case of--
``(i) any national bank, and any Federal branch or Federal
agency of a foreign bank, by the Office of the Comptroller of
the Currency;
``(ii) any member bank of the Federal Reserve System (other
than a national bank), a branch or agency of a foreign bank
(other than a Federal branch, Federal agency, or insured
State branch of a foreign bank), a commercial lending company
owned or controlled by a foreign bank, and any organization
operating under section 25 or 25A of the Federal Reserve Act,
by the Board of Governors of the Federal Reserve System; and
``(iii) any bank insured by the Federal Deposit Insurance
Corporation (other than a member of the Federal Reserve
System) and any insured State branch of a foreign bank, by
the Board of Directors of the Federal Deposit Insurance
Corporation;
``(B) subtitle E of the Consumer Financial Protection Act
of 2010, by the Bureau;
``(C) the Federal Credit Union Act (12 U.S.C. 1751 et
seq.), by the Administrator of the National Credit Union
Administration with respect to any Federal credit union;
``(D) subtitle IV of title 49, United States Code, by the
Secretary of Transportation, with respect to all carriers
subject to the jurisdiction of the Surface Transportation
Board;
``(E) the Federal Aviation Act of 1958 (49 U.S.C. App. 1301
et seq.), by the Secretary of Transportation, with respect to
any air carrier or foreign air carrier subject to that Act;
``(F) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et
seq.) (except as provided in section 406 of that Act), by the
Secretary of Agriculture, with respect to any activities
subject to that Act;
``(G) the Commodity Exchange Act, with respect to a person
subject to the jurisdiction of the Commodity Futures Trading
Commission; and
``(H) the Federal securities laws, and any other laws that
are subject to the jurisdiction of the Securities and
Exchange Commission, with respect to a person that is subject
to the jurisdiction of the Securities and Exchange
Commission.
``(2) Incorporated definitions.--The terms used in
paragraph (1) that are not defined in this title or otherwise
defined in section 3(s) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(s)) have the same meanings as in section 1(b)
of the International Banking Act of 1978 (12 U.S.C. 3101).'';
(9) by striking subsection (e) and inserting the following:
``(e) Regulatory Authority.--The Bureau shall prescribe
such regulations as are necessary to carry out the purposes
of this Act. The regulations prescribed by the Bureau under
this subsection shall apply to any person that is subject to
this Act, notwithstanding the enforcement authorities granted
to other agencies under this section.''; and
(10) in section 623 (15 U.S.C. 1681s-2)--
(A) in subsection (a)(7), by striking subparagraph (D) and
inserting the following:
``(D) Model disclosure.--
``(i) Duty of bureau.--The Bureau shall prescribe a brief
model disclosure that a financial institution may use to
comply with subparagraph (A), which shall not exceed 30
words.
``(ii) Use of model not required.--No provision of this
paragraph may be construed to require a financial institution
to use any such model form prescribed by the Bureau.
``(iii) Compliance using model.--A financial institution
shall be deemed to be in compliance with subparagraph (A) if
the financial institution uses any model form prescribed by
the Bureau under this subparagraph, or the financial
institution uses any such model form and rearranges its
format.''; and
(B) by striking subsection (e) and inserting the following:
``(e) Accuracy Guidelines and Regulations Required.--
``(1) Guidelines.--The Bureau shall, with respect to
persons or entities that are subject to the enforcement
authority of the Bureau under section 621--
``(A) establish and maintain guidelines for use by each
person that furnishes information to a consumer reporting
agency regarding the accuracy and integrity of the
information relating to consumers that such entities furnish
to consumer reporting agencies, and update such guidelines as
often as necessary; and
``(B) prescribe regulations requiring each person that
furnishes information to a consumer reporting agency to
establish reasonable policies and procedures for implementing
the guidelines established pursuant to subparagraph (A).
``(2) Criteria.--In developing the guidelines required by
paragraph (1)(A), the Bureau shall--
``(A) identify patterns, practices, and specific forms of
activity that can compromise the accuracy and integrity of
information furnished to consumer reporting agencies;
``(B) review the methods (including technological means)
used to furnish information relating to consumers to consumer
reporting agencies;
``(C) determine whether persons that furnish information to
consumer reporting agencies maintain and enforce policies to
ensure the accuracy and integrity of information furnished to
consumer reporting agencies; and
``(D) examine the policies and processes that persons that
furnish information to consumer reporting agencies employ to
conduct reinvestigations and correct inaccurate information
relating to consumers that has been furnished to consumer
reporting agencies.''.
(b) Fair and Accurate Credit Transactions Act of 2003.--
Section 214(b)(1) of the Fair and Accurate Credit
Transactions Act of 2003 (15 U.S.C. 1681s-3 note) is amended
by striking paragraph (1) and inserting the following:
``(1) In general.--Regulations to carry out section 624 of
the Fair Credit Reporting Act (15 U.S.C. 1681s-3), shall be
prescribed, as described in paragraph (2), by--
``(A) the Commodity Futures Trading Commission, with
respect to entities subject to its enforcement authorities;
``(B) the Securities and Exchange Commission, with respect
to entities subject to its enforcement authorities; and
``(C) the Bureau, with respect to other entities subject to
this Act.''.

SEC. 1089. AMENDMENTS TO THE FAIR DEBT COLLECTION PRACTICES
ACT.

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et
seq.) is amended--
(1) by striking ``Commission'' each place that term appears
and inserting ``Bureau'';
(2) in section 803 (15 U.S.C. 1692a)--
(A) by striking paragraph (1) and inserting the following:
``(1) The term `Bureau' means the Bureau of Consumer
Financial Protection.'';
(3) in section 814 (15 U.S.C. 1692l)--
(A) by striking subsection (a) and inserting the following:
``(a) Federal Trade Commission.--Except as otherwise
provided by subtitle B of the Consumer Financial Protection
Act of 2010, compliance with this title shall be enforced by
the Federal Trade Commission, except to the extent that
enforcement of the requirements imposed under this title is
specifically committed to another Government agency under
subsection (b). For purpose of the exercise by the Federal
Trade Commission of its functions and powers under the
Federal Trade Commission Act (15 U.S.C. 41 et seq.), a
violation of this title shall be deemed an unfair or
deceptive act or practice in violation of that Act. All of
the functions and powers of the Federal Trade Commission
under the Federal Trade Commission Act are available to the
Federal Trade Commission to enforce compliance by any person
with this title, irrespective of whether that person is
engaged in commerce or meets any other jurisdictional tests
under the Federal Trade Commission Act, including the power
to enforce the provisions of this title, in the same manner
as if the violation had been a violation of a Federal Trade
Commission trade regulation rule.''; and
(B) in subsection (b)--
(i) by striking ``Compliance'' and inserting ``Except as
otherwise provided by subtitle B of the Consumer Financial
Protection Act of 2010, compliance''; and
(ii) by striking paragraph (2) and inserting the following:
``(2) subtitle E of the Consumer Financial Protection Act
of 2010, by the Bureau;''; and
(4) in subsection (d), by striking ``Neither the
Commission'' and all that follows through the end of the
subsection and inserting the following: ``The Bureau may
prescribe rules with respect to the collection of debts by
debt collectors, as defined in this Act.''.

SEC. 1090. AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT.

The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.)
is amended--
(1) in section 8(t) (12 U.S.C. 1818(t)), by adding at the
end the following:
``(6) Referral to bureau of consumer financial
protection.--Subject to subtitle B of the Consumer Financial
Protection Act of 2010, each appropriate Federal banking
agency shall make a referral to the Bureau of Consumer
Financial Protection when the Federal banking agency has a
reasonable belief that a violation of an enumerated consumer
law, as defined in the Consumer Financial Protection Act of
2010, has been committed by any insured depository
institution or institution-affiliated party within the
jurisdiction of that appropriate Federal banking agency.'';
and
(2) in section 43 (12 U.S.C. 1831t)--
(A) in subsection (c), by striking ``Federal Trade
Commission'' and inserting ``Bureau'';
(B) in subsection (d), by striking ``Federal Trade
Commission'' and inserting ``Bureau'';
(C) in subsection (e)--
(i) in paragraph (2), by striking ``Federal Trade
Commission'' and inserting ``Bureau''; and
(ii) by adding at the end the following new paragraph:
``(5) Bureau.--The term `Bureau' means the Bureau of
Consumer Financial Protection.''; and
(D) in subsection (f)--

[[Page S3257]]

(i) by striking paragraph (1) and inserting the following:
``(1) Limited enforcement authority.--Compliance with the
requirements of subsections (b), (c), and (e), and any
regulation prescribed or order issued under such subsection,
shall be enforced under the Consumer Financial Protection Act
of 2010, by the Bureau, subject to subtitle B of the Consumer
Financial Protection Act of 2010, and under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) by the Federal Trade
Commission.''; and
(ii) in paragraph (2), by striking subparagraph (C) and
inserting the following:
``(C) Limitation on state action while federal action
pending.--If the Bureau or Federal Trade Commission has
instituted an enforcement action for a violation of this
section, no appropriate State supervisory agency may, during
the pendency of such action, bring an action under this
section against any defendant named in the complaint of the
Bureau or Federal Trade Commission for any violation of this
section that is alleged in that complaint.''.

SEC. 1091. AMENDMENTS TO THE GRAMM-LEACH-BLILEY ACT.

Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et
seq.) is amended--
(1) in section 504(a)(1) (15 U.S.C. 6804(a)(1))--
(A) by striking ``The Federal banking agencies, the
National Credit Union Administration, the Secretary of the
Treasury,'' and inserting ``The Bureau of Consumer Financial
Protection and''; and
(B) by striking ``, and the Federal Trade Commission'';
(2) in section 505(a) (15 U.S.C. 6805(a))--
(A) by striking ``This subtitle'' and all that follows
through ``as follows:'' and inserting ``Except as otherwise
provided by subtitle B of the Consumer Financial Protection
Act of 2010, this subtitle and the regulations prescribed
thereunder shall be enforced by the Bureau of Consumer
Financial Protection, the Federal functional regulators, the
State insurance authorities, and the Federal Trade Commission
with respect to financial institutions and other persons
subject to their jurisdiction under applicable law, as
follows:'';
(B) in paragraph (1)--
(i) in subparagraph (B), by inserting ``and'' after the
semicolon;
(ii) in subparagraph (C), by striking ``; and'' and
inserting a period; and
(iii) by striking subparagraph (D); and
(C) by adding at the end the following:
``(8) Under the Consumer Financial Protection Act of 2010,
by the Bureau of Consumer Financial Protection, in the case
of any financial institution and other covered person or
service provider that is subject to the jurisdiction of the
Bureau under that Act, but not with respect to the standards
under section 501.''; and
(3) in section 505(b)(1) (15 U.S.C. 6805(b)(1)), by
inserting ``, other than the Bureau of Consumer Financial
Protection,'' after ``subsection (a)''.

SEC. 1092. AMENDMENTS TO THE HOME MORTGAGE DISCLOSURE ACT.

The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et
seq.) is amended--
(1) except as otherwise specifically provided in this
section, by striking ``Board'' each place that term appears
and inserting ``Bureau'';
(2) in section 303 (12 U.S.C. 2802)--
(A) by redesignating paragraphs (1) through (6) as
paragraphs (2) through (7), respectively; and
(B) by inserting before paragraph (2) the following:
``(1) the term `Bureau' means the Bureau of Consumer
Financial Protection;'';
(3) in section 304 (12 U.S.C. 2803)--
(A) in subsection (b)--
(i) in paragraph (4), by inserting ``age,'' before ``and
gender'';
(ii) in paragraph (3), by striking ``and'' at the end;
(iii) in paragraph (4), by striking the period at the end
and inserting a semicolon; and
(iv) by adding at the end the following:
``(5) the number and dollar amount of mortgage loans
grouped according to measurements of--
``(A) the total points and fees payable at origination in
connection with the mortgage as determined by the Bureau,
taking into account 15 U.S.C. 1602(aa)(4);
``(B) the difference between the annual percentage rate
associated with the loan and a benchmark rate or rates for
all loans;
``(C) the term in months of any prepayment penalty or other
fee or charge payable on repayment of some portion of
principal or the entire principal in advance of scheduled
payments; and
``(D) such other information as the Bureau may require; and
``(6) the number and dollar amount of mortgage loans and
completed applications grouped according to measurements of--
``(A) the value of the real property pledged or proposed to
be pledged as collateral;
``(B) the actual or proposed term in months of any
introductory period after which the rate of interest may
change;
``(C) the presence of contractual terms or proposed
contractual terms that would allow the mortgagor or applicant
to make payments other than fully amortizing payments during
any portion of the loan term;
``(D) the actual or proposed term in months of the mortgage
loan;
``(E) the channel through which application was made,
including retail, broker, and other relevant categories;
``(F) as the Bureau may determine to be appropriate, a
unique identifier that identifies the loan originator as set
forth in section 1503 of the S.A.F.E. Mortgage Licensing Act
of 2008;
``(G) as the Bureau may determine to be appropriate, a
universal loan identifier;
``(H) as the Bureau may determine to be appropriate, the
parcel number that corresponds to the real property pledged
or proposed to be pledged as collateral;
``(I) the credit score of mortgage applicants and
mortgagors, in such form as the Bureau may prescribe, except
that the Bureau shall modify or require modification of
credit score data that is or will be available to the public
to protect the compelling privacy interest of the mortgage
applicant or mortgagors; and
``(J) such other information as the Bureau may require.'';
(B) in subsection (i), by striking ``subsection (b)(4)''
and inserting ``subsections (b)(4), (b)(5), and (b)(6)'';
(C) in subsection (j)--
(i) in paragraph (1), by striking ``(as'' and inserting
``(containing loan-level and application-level information
relating to disclosures required under subsections (a) and
(b) and as otherwise'';
(ii) by striking paragraph (3) and inserting the following:
``(3) Change of form not required.--A depository
institution meets the disclosure requirement of paragraph (1)
if the institution provides the information required under
such paragraph in such formats as the Bureau may require'';
and
(iii) in paragraph (2)(A), by striking ``in the format in
which such information is maintained by the institution'' and
inserting ``in such formats as the Bureau may require'';
(D) in subsection (m), by striking paragraph (2) and
inserting the following:
``(2) Form of information.--In complying with paragraph
(1), a depository institution shall provide the person
requesting the information with a copy of the information
requested in such formats as the Bureau may require'';
(E) by striking subsection (h) and inserting the following:
``(h) Submission to Agencies.--
``(1) In general.--The data required to be disclosed under
subsection (b) shall be submitted to the Bureau or to the
appropriate agency for the institution reporting under this
title, in accordance with rules prescribed by the Bureau.
Notwithstanding the requirement of subsection (a)(2)(A) for
disclosure by census tract, the Bureau, in cooperation with
other appropriate regulators described in paragraph (2),
shall develop regulations that--
``(A) prescribe the format for such disclosures, the method
for submission of the data to the appropriate regulatory
agency, and the procedures for disclosing the information to
the public;
``(B) require the collection of data required to be
disclosed under subsection (b) with respect to loans sold by
each institution reporting under this title;
``(C) require disclosure of the class of the purchaser of
such loans; and
``(D) permit any reporting institution to submit in writing
to the Bureau or to the appropriate agency such additional
data or explanations as it deems relevant to the decision to
originate or purchase mortgage loans.
``(2) Other appropriate agencies.--The appropriate
regulators described in this paragraph are--
``(A) the Office of the Comptroller of the Currency
(hereafter referred to in this Act as `Comptroller') for
national banks and Federal branches, Federal agencies of
foreign banks, and savings associations;
``(B) the Federal Deposit Insurance Corporation for banks
insured by the Federal Deposit Insurance Corporation (other
than members of the Federal Reserve System), mutual savings
banks, insured State branches of foreign banks, and any other
depository institution described in section 303(2)(A) which
is not otherwise referred to in this paragraph;
``(C) the National Credit Union Administration Board for
credit unions; and
``(D) the Secretary of Housing and Urban Development for
other lending institutions not regulated by the agencies
referred to in subparagraphs (A) through (C).''; and
(F) by adding at the end the following:
``(n) Timing of Certain Disclosures.--The data required to
be disclosed under subsection (b) shall be submitted to the
Bureau or to the appropriate agency for any institution
reporting under this title, in accordance with regulations
prescribed by the Bureau. Institutions shall not be required
to report new data under paragraph (5) or (6) of subsection
(b) before the first January 1 that occurs after the end of
the 9-month period beginning on the date on which regulations
are issued by the Bureau in final form with respect to such
disclosures.'';
(4) in section 305 (12 U.S.C. 2804)--
(A) by striking subsection (b) and inserting the following:
``(b) Powers of Certain Other Agencies.--
``(1) In general.--Except as otherwise provided by subtitle
B of the Consumer Financial Protection Act of 2010,
compliance with the requirements of this title shall be
enforced--
``(A) under section 8 of the Federal Deposit Insurance Act,
in the case of--
``(i) any national bank, and any Federal branch or Federal
agency of a foreign bank,

[[Page S3258]]

by the Office of the Comptroller of the Currency;
``(ii) any member bank of the Federal Reserve System (other
than a national bank), branch or agency of a foreign bank
(other than a Federal branch, Federal agency, and insured
State branch of a foreign bank), commercial lending company
owned or controlled by a foreign bank, and any organization
operating under section 25 or 25(a) of the Federal Reserve
Act, by the Board; and
``(iii) any bank insured by the Federal Deposit Insurance
Corporation (other than a member of the Federal Reserve
System), any mutual savings bank as, defined in section 3(f)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(f)), any
insured State branch of a foreign bank, and any other
depository institution not referred to in this paragraph or
subparagraph (B) or (C), by the Federal Deposit Insurance
Corporation;
``(B) under subtitle E of the Consumer Financial Protection
Act of 2010, by the Bureau;
``(C) under the Federal Credit Union Act, by the
Administrator of the National Credit Union Administration
with respect to any insured credit union; and
``(D) with respect to other lending institutions, by the
Secretary of Housing and Urban Development.
``(2) Incorporated definitions.--The terms used in
paragraph (1) that are not defined in this title or otherwise
defined in section 3(s) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(s)) shall have the same meanings as in
section 1(b) of the International Banking Act of 1978 (12
U.S.C. 3101).''; and
(B) by adding at the end the following:
``(d) Overall Enforcement Authority of the Bureau of
Consumer Financial Protection.--Subject to subtitle B of the
Consumer Financial Protection Act of 2010, enforcement of the
requirements imposed under this title is committed to each of
the agencies under subsection (b). The Bureau may exercise
its authorities under the Consumer Financial Protection Act
of 2010 to exercise principal authority to examine and
enforce compliance by any person with the requirements of
this title.'';
(5) in section 306 (12 U.S.C. 2805(b)), by striking
subsection (b) and inserting the following:
``(b) Exemption Authority.--The Bureau may, by regulation,
exempt from the requirements of this title any State-
chartered depository institution within any State or
subdivision thereof, if the agency determines that, under the
law of such State or subdivision, that institution is subject
to requirements that are substantially similar to those
imposed under this title, and that such law contains adequate
provisions for enforcement. Notwithstanding any other
provision of this subsection, compliance with the
requirements imposed under this subsection shall be enforced
by the Office of the Comptroller of the Currency under
section 8 of the Federal Deposit Insurance Act, in the case
of national banks and savings associations, the deposits of
which are insured by the Federal Deposit Insurance
Corporation.''; and
(6) by striking section 307 (12 U.S.C. 2806) and inserting
the following:

``SEC. 307. COMPLIANCE IMPROVEMENT METHODS.

``(a) In General.--
``(1) Consultation required.--The Director of the Bureau of
Consumer Financial Protection, 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 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 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 deems
appropriate to carry out the purpose of this title.''.

SEC. 1093. AMENDMENTS TO THE HOMEOWNERS PROTECTION ACT OF
1998.

Section 10 of the Homeowners Protection Act of 1998 (12
U.S.C. 4909) is amended--
(1) in subsection (a)--
(A) by striking ``Compliance'' and inserting ``Except as
otherwise provided by subtitle B of the Consumer Financial
Protection Act of 2010, compliance'';
(B) in paragraph (2), by striking ``and'' at the end;
(C) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(4) subtitle E of the Consumer Financial Protection Act
of 2010, by the Bureau of Consumer Financial Protection.'';
and
(2) in subsection (b)(2), by inserting before the period at
the end the following: ``, subject to subtitle B of the
Consumer Financial Protection Act of 2010''.

SEC. 1094. AMENDMENTS TO THE HOME OWNERSHIP AND EQUITY
PROTECTION ACT OF 1994.

The Home Ownership and Equity Protection Act of 1994 (15
U.S.C. 1601 note) is amended--
(1) in section 158(a), by striking ``Consumer Advisory
Council of the Board'' and inserting ``Advisory Board to the
Bureau''; and
(2) by striking ``Board'' each place that term appears and
inserting ``Bureau''.

SEC. 1095. AMENDMENTS TO THE OMNIBUS APPROPRIATIONS ACT,
2009.

Section 626 of the Omnibus Appropriations Act, 2009 (15
U.S.C. 1638 note) is amended--
(1) by striking subsection (a) and inserting the following:
``(a)(1) The Bureau of Consumer Financial Protection shall
have authority to prescribe rules with respect to mortgage
loans in accordance with section 553 of title 5, United
States Code. Such rulemaking shall relate to unfair or
deceptive acts or practices regarding mortgage loans, which
may include unfair or deceptive acts or practices involving
loan modification and foreclosure rescue services. Any
violation of a rule prescribed under this paragraph shall be
treated as a violation of a rule prohibiting unfair,
deceptive, or abusive acts or practices under the Consumer
Financial Protection Act of 2010 and a violation of a rule
under section 18 of the Federal Trade Commission Act (15
U.S.C. 57a) regarding unfair or deceptive acts or practices.
``(2) The Bureau of Consumer Financial Protection shall
enforce the rules issued under paragraph (1) in the same
manner, by the same means, and with the same jurisdiction,
powers, and duties, as though all applicable terms and
provisions of the Consumer Financial Protection Act of 2010
were incorporated into and made part of this subsection.'';
and
(2) in subsection (b)--
(A) by striking paragraph (1) and inserting the following:
``(1) Except as provided in paragraph (6), in any case in
which the attorney general of a State has reason to believe
that an interest of the residents of the State has been or is
threatened or adversely affected by the engagement of any
person subject to a rule prescribed under subsection (a) in
practices that violate such rule, the State, as parens
patriae, may bring a civil action on behalf of its residents
in an appropriate district court of the United States or
other court of competent jurisdiction--
``(A) to enjoin that practice;
``(B) to enforce compliance with the rule;
``(C) to obtain damages, restitution, or other compensation
on behalf of the residents of the State; or
``(D) to obtain penalties and relief provided under the
Consumer Financial Protection Act of 2010, the Federal Trade
Commission Act, and such other relief as the court deems
appropriate.'';
(B) in paragraphs (2) and (3), by striking ``the primary
Federal regulator'' each time the term appears and inserting
``the Bureau of Consumer Financial Protection or the
Commission, as appropriate'';
(C) in paragraph (3), by inserting ``and subject to
subtitle B of the Consumer Financial Protection Act of
2010,'' after ``paragraph (2),''; and
(D) in paragraph (6), by striking ``the primary Federal
regulator'' each place that term appears and inserting ``the
Bureau of Consumer Financial Protection or the Commission''.

SEC. 1096. AMENDMENTS TO THE REAL ESTATE SETTLEMENT
PROCEDURES ACT.

The Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2601 et seq.) is amended--
(1) in section 3 (12 U.S.C. 2602)--
(A) in paragraph (7), by striking ``and'' at the end;
(B) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(9) the term `Bureau' means the Bureau of Consumer
Financial Protection.'';
(2) in section 4 (12 U.S.C. 2603)--
(A) in subsection (a), by striking the first sentence and
inserting the following: ``The Bureau shall publish a single,
integrated disclosure for mortgage loan transactions
(including real estate settlement cost statements) which
includes the disclosure requirements of this title, in
conjunction with the disclosure requirements of the Truth in
Lending Act that, taken together, may apply to a transaction
that is subject to both or either provisions of law. The
purpose of such model disclosure shall be to facilitate
compliance with the disclosure requirements of this title and
the Truth in Lending Act, and to aid the borrower or lessee
in understanding the transaction by utilizing readily
understandable language to simplify the technical nature of
the disclosures.'';
(B) by striking ``Secretary'' each place that term appears
and inserting ``Bureau''; and
(C) by striking ``form'' each place that term appears and
inserting ``forms'';
(3) in section 5 (12 U.S.C. 2604)--
(A) by striking ``Secretary'' each place that term appears
and inserting ``Bureau''; and
(B) in subsection (a), by striking the first sentence and
inserting the following: ``The Bureau shall prepare and
distribute booklets jointly addressing compliance with the
requirements of the Truth in Lending Act and the provisions
of this title, in order to help

[[Page S3259]]

persons borrowing money to finance the purchase of
residential real estate better to understand the nature and
costs of real estate settlement services.'';
(4) in section 6(j)(3) (12 U.S.C. 2605(j)(3))--
(A) by striking ``Secretary'' and inserting ``Bureau''; and
(B) by striking ``, by regulations that shall take effect
not later than April 20, 1991,'';
(5) in section 7(b) (12 U.S.C. 2606(b)) by striking
``Secretary'' and inserting ``Bureau'';
(6) in section 8(d) (12 U.S.C. 2607(d))--
(A) in the subsection heading, by inserting ``Bureau and''
before ``Secretary''; and
(B) by striking paragraph (4), and inserting the following:
``(4) The Bureau, the Secretary, or the attorney general or
the insurance commissioner of any State may bring an action
to enjoin violations of this section. Except, to the extent
that a person is subject to the jurisdiction of the Bureau,
the Secretary, or the attorney general or the insurance
commissioner of any State, the Bureau shall have primary
authority to enforce or administer this section, subject to
subtitle B of the Consumer Financial Protection Act of
2010.''.
(7) in section 10(c) (12 U.S.C. 2609(c) and (d)), by
striking ``Secretary'' and inserting ``Bureau'';
(8) in section 16 (12 U.S.C. 2614), by inserting ``the
Bureau,'' before ``the Secretary'';
(9) in section 18 (12 U.S.C. 2616), by striking
``Secretary'' each place that term appears and inserting
``Bureau''; and
(10) in section 19 (12 U.S.C. 2617)--
(A) in the section heading by striking ``SECRETARY'' and
inserting ``BUREAU'';
(B) by striking ``Secretary'' each place that term appears
and inserting ``Bureau'';
(C) in subsection (b), by inserting ``the Bureau'' before
``the Secretary''; and
(D) in subsection (c), by inserting ``or the Bureau'' after
``the Secretary'' each time that term appears.

SEC. 1097. AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT
OF 1978.

The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401
et seq.) is amended--
(1) in section 1101--
(A) in paragraph (6)--
(i) in subparagraph (A), by inserting ``and'' after the
semicolon;
(ii) in subparagraph (B), by striking ``and'' at the end;
and
(iii) by striking subparagraph (C); and
(B) in paragraph (7), by striking subparagraph (E), and
inserting the following:
``(E) the Bureau of Consumer Financial Protection;'';
(2) in section 1112(e) (12 U.S.C. 3412(e)), by striking
``and the Commodity Futures Trading Commission is permitted''
and inserting ``the Commodity Futures Trading Commission, and
the Bureau of Consumer Financial Protection is permitted'';
and
(3) in section 1113 (12 U.S.C. 3413), by adding at the end
the following new subsection:
``(r) Disclosure to the Bureau of Consumer Financial
Protection.--Nothing in this title shall apply to the
examination by or disclosure to the Bureau of Consumer
Financial Protection of financial records or information in
the exercise of its authority with respect to a financial
institution.''.

SEC. 1098. AMENDMENTS TO THE SECURE AND FAIR ENFORCEMENT FOR
MORTGAGE LICENSING ACT OF 2008.

The S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101
et seq.) is amended--
(1) by striking ``a Federal banking agency'' each place
that term appears, other than in paragraphs (7) and (11) of
section 1503 and section 1507(a)(1), and inserting ``the
Bureau'';
(2) by striking ``Federal banking agencies'' each place
that term appears and inserting ``Bureau''; and
(3) by striking ``Secretary'' each place that term appears
and inserting ``Director'';
(4) in section 1503 (12 U.S.C. 5102)--
(A) by redesignating paragraphs (2) through (12) as (3)
through (13), respectively;
(B) by striking paragraph (1) and inserting the following:
``(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.''; and
(C) by striking paragraph (10), as so designated by this
section, and inserting the following:
``(10) Director.--The term `Director' means the Director of
the Bureau of Consumer Financial Protection.''; and
(5) in section 1507 (12 U.S.C. 5106)--
(A) in subsection (a)--
(i) by striking paragraph (1) and inserting the following:
``(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.''; and
(ii) in paragraph (2)--

(I) by striking ``appropriate Federal banking agency and
the Farm Credit Administration'' and inserting ``Bureau'';
and
(II) by striking ``employees's identity'' and inserting
``identity of the employee''; and

(B) in subsection (b), by striking ``through the Financial
Institutions Examination Council, and the Farm Credit
Administration'', and inserting ``and the Bureau of Consumer
Financial Protection'';
(6) in section 1508 (12 U.S.C. 5107)--
(A) by striking the section heading and inserting the
following: ``SEC. 1508. BUREAU OF CONSUMER FINANCIAL
PROTECTION BACKUP AUTHORITY TO ESTABLISH LOAN ORIGINATOR
LICENSING SYSTEM.''; and
(B) by adding at the end the following:
``(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.'';
(7) by striking section 1510 (12 U.S.C. 5109) and inserting
the following:

``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.'';
(8) by striking section 1513 (12 U.S.C. 5112) and inserting
the following:

``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 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.''; and
(9) in section 1514 (12 U.S.C. 5113) in the section
heading, by striking ``UNDER HUD BACKUP LICENSING SYSTEM''
and inserting ``BY THE BUREAU''.

SEC. 1099. AMENDMENTS TO THE TRUTH IN LENDING ACT.

The Truth in Lending Act (15 U.S.C. 1601 et seq.) is
amended--
(1) in section 103 (5 U.S.C. 1602)--
(A) by redesignating subsections (b) through (bb) as
subsections (c) through (cc), respectively; and
(B) by inserting after subsection (a) the following:
``(b) Bureau.--The term `Bureau' means the Bureau of
Consumer Financial Protection.'';
(2) by striking ``Board'' each place that term appears,
other than in section 140(d) and section 108(a), as amended
by this section, and inserting ``Bureau'';
(3) by striking ``Federal Trade Commission'' each place
that term appears, other than in section 108(c) and section
129(m), as amended by this Act, and other than in the context
of a reference to the Federal Trade Commission Act, and
inserting ``Bureau'';
(4) in section 105(a) (15 U.S.C. 1604(a)), in the second
sentence--
(A) by striking ``Except in the case of a mortgage referred
to in section 103(aa), these regulations may contain such''
and inserting ``Except with respect to the provisions of
section 129 that apply to a mortgage referred to in section
103(aa), such regulations may contain such additional
requirements,''; and
(B) by inserting ``all or'' after ``exceptions for'';
(5) in section 105(b) (15 U.S.C. 1604(b)), by striking the
first sentence and inserting the following: ``The Bureau
shall publish a single, integrated disclosure for mortgage
loan transactions (including real estate settlement cost
statements) which includes the disclosure requirements of
this title in conjunction with the disclosure requirements of
the Real Estate Settlement Procedures Act of 1974 that, taken
together, may apply to a transaction that is subject to both
or either provisions of law. The purpose of such model
disclosure shall be to facilitate compliance with the
disclosure requirements of this title and the Real Estate
Settlement Procedures Act of 1974, and to aid the borrower or
lessee in understanding the transaction by utilizing readily
understandable language to simplify the technical nature of
the disclosures.'';
(6) in section 105(f)(1) (15 U.S.C. 1604(f)(1)), by
inserting ``all or'' after ``from all or part of this
title'';
(7) in section 108 (15 U.S.C. 1607)--
(A) by striking subsection (a) and inserting the following:

[[Page S3260]]

``(a) Enforcing Agencies.--Except as otherwise provided in
subtitle B of the Consumer Financial Protection Act of 2010,
compliance with the requirements imposed under this title
shall be enforced under--
``(1) section 8 of the Federal Deposit Insurance Act, in
the case of--
``(A) any national bank, and Federal branch or Federal
agency of a foreign bank, by the Office of the Comptroller of
the Currency;
``(B) any member bank of the Federal Reserve System (other
than a national bank), any branch or agency of a foreign bank
(other than a Federal branch, Federal agency, or insured
State branch of a foreign bank), any commercial lending
company owned or controlled by a foreign bank, and
organizations operating under section 25 or 25(a) of the
Federal Reserve Act, by the Board; and
``(C) any bank insured by the Federal Deposit Insurance
Corporation (other than a member of the Federal Reserve
System) and an insured State branch of a foreign bank, by the
Board of Directors of the Federal Deposit Insurance
Corporation;
``(2) subtitle E of the Consumer Financial Protection Act
of 2010, by the Bureau;
``(3) the Federal Credit Union Act, by the Director of the
National Credit Union Administration, with respect to any
Federal credit union;
``(4) the Federal Aviation Act of 1958, by the Secretary of
Transportation, with respect to any air carrier or foreign
air carrier subject to that Act;
``(5) the Packers and Stockyards Act, 1921 (except as
provided in section 406 of that Act), by the Secretary of
Agriculture, with respect to any activities subject to that
Act; and
``(6) the Farm Credit Act of 1971, by the Farm Credit
Administration with respect to any Federal land bank, Federal
land bank association, Federal intermediate credit bank, or
production credit association.''; and
(B) by striking subsection (c) and inserting the following:
``(c) Overall Enforcement Authority of the Federal Trade
Commission.--Except to the extent that enforcement of the
requirements imposed under this title is specifically
committed to some other Government agency under subsection
(a), and subject to subtitle B of the Consumer Financial
Protection Act of 2010, the Federal Trade Commission shall
enforce such requirements. For the purpose of the exercise by
the Federal Trade Commission of its functions and powers
under the Federal Trade Commission Act, a violation of any
requirement imposed under this title shall be deemed a
violation of a requirement imposed under that Act. All of the
functions and powers of the Federal Trade Commission under
the Federal Trade Commission Act are available to the Federal
Trade Commission to enforce compliance by any person with the
requirements under this title, irrespective of whether that
person is engaged in commerce or meets any other
jurisdictional tests under the Federal Trade Commission
Act.'';
(8) in section 129 (15 U.S.C. 1639), by striking subsection
(m) and inserting the following:
``(m) Civil Penalties in Federal Trade Commission
Enforcement Actions.--For purposes of enforcement by the
Federal Trade Commission, any violation of a regulation
issued by the Bureau pursuant to subsection (l)(2) shall be
treated as a violation of a rule promulgated under section 18
of the Federal Trade Commission Act (15 U.S.C. 57a) regarding
unfair or deceptive acts or practices.''; and
(9) in chapter 5 (15 U.S.C. 1667 et seq.)--
(A) by striking ``the Board'' each place that term appears
and inserting ``the Bureau''; and
(B) by striking ``The Board'' each place that term appears
and inserting ``The Bureau''.

SEC. 1100. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

The Truth in Savings Act (12 U.S.C. 4301 et seq.) is
amended--
(1) by striking ``Board'' each place that term appears and
inserting ``Bureau'';
(2) in section 270(a) (12 U.S.C. 4309)--
(A) by striking ``Compliance'' and inserting ``Except as
otherwise provided in subtitle B of the Consumer Financial
Protection Act of 2010, compliance'';
(B) in paragraph (1)--
(i) in subparagraph (B), by striking ``and'' at the end;
and
(ii) by striking subparagraph (C);
(C) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(3) subtitle E of the Consumer Financial Protection Act
of 2010, by the Bureau.'';
(3) in section 272(b) (12 U.S.C. 4311(b)), by striking
``regulation prescribed by the Board'' each place that term
appears and inserting ``regulation prescribed by the
Bureau''; and
(4) in section 274 (12 U.S.C. 4313), by striking paragraph
(4) and inserting the following:
``(4) Bureau.--The term `Bureau' means the Bureau of
Consumer Financial Protection.''.

SEC. 1101. AMENDMENTS TO THE TELEMARKETING AND CONSUMER FRAUD
AND ABUSE PREVENTION ACT.

(a) Amendments to Section 3.--Section 3 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15
U.S.C. 6102) is amended by striking subsections (b) and (c)
and inserting the following:
``(b) Rulemaking Authority.--The Commission shall have
authority to prescribe rules under subsection (a), in
accordance with section 553 of title 5, United States Code.
In prescribing a rule under this section that relates to the
provision of a consumer financial product or service that is
subject to the Consumer Financial Protection Act of 2010,
including any enumerated consumer law thereunder, the
Commission shall consult with the Bureau of Consumer
Financial Protection regarding the consistency of a proposed
rule with standards, purposes, or objectives administered by
the Bureau of Consumer Financial Protection.
``(c) Violations.--Any violation of any rule prescribed
under subsection (a)--
``(1) shall be treated as a violation of a rule under
section 18 of the Federal Trade Commission Act regarding
unfair or deceptive acts or practices; and
``(2) that is committed by a person subject to the Consumer
Financial Protection Act of 2010 shall be treated as a
violation of a rule under section 1031 of that Act regarding
unfair, deceptive, or abusive acts or practices.''.
(b) Amendments to Section 4.--Section 4(d) of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15
U.S.C. 6103(d)) is amended by inserting after ``Commission''
each place that term appears the following: ``or the Bureau
of Consumer Financial Protection''.
(c) Amendments to Section 5.--Section 5(c) of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15
U.S.C. 6104(c)) is amended by inserting after ``Commission''
each place that term appears the following: ``or the Bureau
of Consumer Financial Protection''.
(d) Amendment to Section 6.--Section 6 of the Telemarketing
and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6105)
is amended by adding at the end the following:
``(d) Enforcement by Bureau of Consumer Financial
Protection.--Except as otherwise provided in sections 3(d),
3(e), 4, and 5, and subject to subtitle B of the Consumer
Financial Protection Act of 2010, this Act shall be enforced
by the Bureau of Consumer Financial Protection under subtitle
E of the Consumer Financial Protection Act of 2010.''.

SEC. 1102. AMENDMENTS TO THE PAPERWORK REDUCTION ACT.

(a) Designation as an Independent Agency.--Section 2(5) of
the Paperwork Reduction Act (44 U.S.C. 3502(5)) is amended by
inserting ``the Bureau of Consumer Financial Protection, the
Office of Financial Research,'' after ``the Securities and
Exchange Commission,''.
(b) Comparable Treatment.--Section 3513 of title 44, United
States Code, is amended by adding at the end the following:
``(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
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.''.

SEC. 1103. ADJUSTMENTS FOR INFLATION IN THE TRUTH IN LENDING
ACT.

(a) Caps.--
(1) Credit transactions.--Section 104(3) of the Truth in
Lending Act (15 U.S.C. 1603(3)) is amended by striking
``$25,000'' and inserting ``$50,000''.
(2) Consumer leases.--Section 181(1) of the Truth in
Lending Act (15 U.S.C. 1667(1)) is amended by striking
``$25,000'' and inserting ``$50,000''.
(b) Adjustments for Inflation.--On and after December 31,
2011, the Bureau may adjust annually the dollar amounts
described in sections 104(3) and 181(1) of the Truth in
Lending Act (as amended by this section), by the annual
percentage increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers, as published by the Bureau
of Labor Statistics, rounded to the nearest multiple of $100,
or $1,000, as applicable.

SEC. 1104. EFFECTIVE DATE.

Except as otherwise provided in this subtitle and the
amendments made by this subtitle, this subtitle and the
amendments made by this subtitle, other than sections 1081
and 1082, shall become effective on the designated transfer
date.
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