99–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–107 

RESPONSIBLE CONSUMER FINANCIAL PROTECTION 

REGULATIONS ACT OF 2011 

JUNE 16, 2011.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BACHUS, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 1121] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1121) to replace the Director of the Bureau of Consumer 

Financial Protection with a five person Commission, having considered the same, report favorably thereon with an amendment and 

recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Responsible Consumer Financial Protection Regula- tions Act of 2011’’. 

SEC. 2. ESTABLISHMENT OF THE COMMISSION. 

Section 1011 of the Consumer Financial Protection Act of 2010 is amended— 

(1) by striking subsections (b), (c), and (d); 

(2) by redesignating subsection (e) as subsection (j); and 

(3) by inserting after subsection (a) the following new subsections: ‘‘(b) ESTABLISHMENT OF THE COMMISSION.— 

‘‘(1) IN GENERAL.—There is hereby established a commission (hereinafter referred to in this section as the ‘Commission’) that shall serve as the head of the 

Bureau. 

‘‘(2) AUTHORITY TO PRESCRIBE REGULATIONS.—The Commission may prescribe 

such regulations and issue such orders in accordance with this title as the Commission may determine to be necessary for carrying out this title and all other 

laws within the Commission’s jurisdiction and shall exercise any authorities 

granted under this title and all other laws within the Commission’s jurisdiction. 


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‘‘(c) COMPOSITION OF THE COMMISSION.— ‘‘(1) IN GENERAL.—The Commission shall be composed of the Vice Chairman 

for Supervision of the Federal Reserve System and 4 additional members who 

shall be appointed by the President, by and with the advice and consent of the 

Senate, from among individuals who— ‘‘(A) are citizens of the United States; 

‘‘(B) have strong competencies and experiences related to consumer finan- cial protection; and ‘‘(C) should want to protect service members and their families who are 

sacrificing their lives for this country from abusive financial practices. ‘‘(2) STAGGERING.—The members of the Commission appointed under para- graph (1) shall serve staggered terms, which initially shall be established by the 

President for terms of 1, 2, 4, and 5 years, respectively. ‘‘(3) TERMS.— ‘‘(A) IN GENERAL.—Each member of the Commission appointed under paragraph (1), including the Chair, shall serve for a term of 5 years. ‘‘(B) REMOVAL FOR CAUSE.—The President may remove any member of the Commission appointed under paragraph (1) only for inefficiency, neglect 

of duty, or malfeasance in office. ‘‘(C) VACANCIES.—Any member of the Commission appointed under para- graph (1) appointed to fill a vacancy occurring before the expiration of the 

term to which that member’s predecessor was appointed (including the 

Chair) shall be appointed only for the remainder of the term. 

‘‘(D) CONTINUATION OF SERVICE.—Each member of the Commission appointed under paragraph (1) may continue to serve after the expiration of 

the term of office to which that member was appointed until a successor 

has been appointed by the President and confirmed by the Senate, except 

that a member may not continue to serve more than 1 year after the date 

on which that member’s term would otherwise expire. 

‘‘(E) OTHER EMPLOYMENT PROHIBITED.—No member of the Commission 

appointed under paragraph (1) shall engage in any other business, vocation, 

or employment. 

‘‘(4) ROLES AND RESPONSIBILITIES OF COMMISSIONERS.—One member of the 

Commission shall have as their primary responsibility the oversight of the Bureau’s activities pertaining to protecting consumers, with a focus on consumers 

who are older, minorities, youth, or veterans, from unfair, deceptive, and abusive lending practices. The designated commissioner shall be responsible for— 

‘‘(A) ensuring the Bureau conducts regular outreach to consumers regarding industry lending activities; 

‘‘(B) researching and reporting to the full Commission, on a regular basis, 

the impact of new loan and credit products and services on consumers; and 

‘‘(C) ensuring the Bureau coordinates with State-level consumer protection agencies on enforcement measures that protect consumers from unfair, 

deceptive, and abusive lending practices. 

‘‘(d) AFFILIATION.—With respect to members appointed pursuant to subsection 

(c)(1), not more than 2 shall be members of any one political party. 

‘‘(e) CHAIR OF THE COMMISSION.— 

‘‘(1) APPOINTMENT.—The Chair of the Commission shall be appointed by the 

President from among the members of the Commission appointed under paragraph (1). 

‘‘(2) AUTHORITY.—The Chair shall be the principal executive officer of the Bureau, and shall exercise all of the executive and administrative functions of the 

Bureau, including with respect to— 

‘‘(A) the appointment and supervision of personnel employed under the 

Bureau (other than personnel employed regularly and full time in the immediate offices of members of the Commission other than the Chair); 

‘‘(B) the distribution of business among personnel appointed and supervised by the Chair and among administrative units of the Bureau; and 

‘‘(C) the use and expenditure of funds. 

‘‘(3) LIMITATION.—In carrying out any of the Chair’s functions under the provisions of this subsection the Chair shall be governed by general policies of the 

Commission and by such regulatory decisions, findings, and determinations as 

the Commission may by law be authorized to make. 

‘‘(4) REQUESTS OR ESTIMATES RELATED TO APPROPRIATIONS.—Requests or estimates for regular, supplemental, or deficiency appropriations on behalf of the 

Commission may not be submitted by the Chair without the prior approval of 

the Commission. 

‘‘(f) NO IMPAIRMENT BY REASON OF VACANCIES.—No vacancy in the members of 

the Commission shall impair the right of the remaining members of the Commission 


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to exercise all the powers of the Commission. Three members of the Commission 

shall constitute a quorum for the transaction of business, except that if there are 

only 3 members serving on the Commission because of vacancies in the Commission, 

2 members of the Commission shall constitute a quorum for the transaction of business. If there are only 2 members serving on the Commission because of vacancies 

in the Commission, 2 members shall constitute a quorum for the 6-month period beginning on the date of the vacancy which caused the number of Commission members to decline to 2. 

‘‘(g) SEAL.—The Commission shall have an official seal. 

‘‘(h) COMPENSATION.— 

‘‘(1) CHAIR.—The Chair shall receive compensation at the rate prescribed for 

level I of the Executive Schedule under section 5313 of title 5, United States 

Code. 

‘‘(2) OTHER MEMBERS OF THE COMMISSION.—The 3 other members of the Commission appointed under subsection (c)(1) shall each receive compensation at 

the rate prescribed for level II of the Executive Schedule under section 5314 of 

title 5, United States Code. 

‘‘(i) INITIAL QUORUM ESTABLISHED.—During any time period prior to the confirmation of at least two members of the Commission, one member of the Commission 

shall constitute a quorum for the transaction of business. Following the confirmation of at least 2 additional commissioners, the quorum requirements of subsection 

(f) shall apply.’’. 

SEC. 3. CONFORMING AMENDMENTS. 

(a) CONSUMER FINANCIAL PROTECTION ACT OF 2010.— 

(1) IN GENERAL.—The Consumer Financial Protection Act of 2010 is amended— 

(A) in section 1002, by striking paragraph (10); 

(B) in section 1012(c)(4), by striking ‘‘Director’’ each place such term appears and inserting ‘‘Commission of the Bureau’’; 

(C) in section 1013(c)(3)— 

(i) by striking ‘‘Assistant Director of the Bureau for’’ and inserting 

‘‘Head of the Office of’’; and 

(ii) in subparagraph (B), by striking ‘‘Assistant Director’’ and inserting ‘‘Head of the Office’’; 

(D) in section 1013(g)(2)— 

(i) by striking ‘‘ASSISTANT DIRECTOR’’ and inserting ‘‘HEAD OF THE OFFICE’’; and 

(ii) by striking ‘‘an assistant director’’ and inserting ‘‘a Head of the 

Office of Financial Protection for Older Americans’’; 

(E) in section 1016(a), by striking ‘‘Director of the Bureau’’ and inserting 

‘‘Chair of the Commission’’; 

(F) in section 1017(c)(1), by striking ‘‘Director and other employees’’ and 

inserting ‘‘members of the Commission and other employees’’; 

(G) in section 1027(l)(1), by striking ‘‘Director and the’’; and 

(H) in section 1066(a), by striking ‘‘Director of the Bureau is’’ and inserting ‘‘first member of the Commission is’’. 

(2) GLOBAL AMENDMENTS.—The Consumer Financial Protection Act of 2010 is 

amended— 

(A) by striking ‘‘Director of the’’ each place such term appears, other than 

in— 

(i) subparagraphs (A) and (E) of section 1017(4); 

(ii) section 1043; 

(iii) section 1061(b)(3); 

(iv) section 1062; 

(v) section 1063(f); 

(vi) subparagraphs (E) and (G) of section 1064(i)(2); and 

(vii) section 1065(a); and 

(B) by striking ‘‘Director’’ each place such term appears and inserting 

‘‘Bureau’’, other than in— 

(i) section 1063(f)(2); and 

(ii) section 1065(a). 

(b) DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT.—The 

Dodd-Frank Wall Street Reform and Consumer Protection Act is amended— 

(1) in section 111(b)(1)(D), by striking ‘‘Director’’ and inserting ‘‘Chair of the 

Commission’’; and 

(2) in section 1447, by striking ‘‘Director of the Bureau’’ each place such term 

appears and inserting ‘‘Bureau’’. 


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(c) ELECTRONIC FUND TRANSFER ACT.—Section 921(a)(4)(C) of the Electronic Fund 

Transfer Act, as added by section 1075(a)(2) of the Consumer Financial Protection 

Act of 2010, is amended by striking ‘‘Director of the Bureau of Consumer Financial 

Protection’’ and inserting ‘‘Bureau of Consumer Financial Protection’’. (d) EXPEDITED FUNDS AVAILABILITY ACT.—The Expedited Funds Availability Act, as amended by section 1086 of the Consumer Financial Protection Act of 2010, is 

amended by striking ‘‘Director of the Bureau’’ each place such term appears and inserting ‘‘Bureau’’. (e) FEDERAL DEPOSIT INSURANCE ACT.—Section 2 of the Federal Deposit Insur- ance Act, as amended by section 336(a) of the Dodd-Frank Wall Street Reform and 

Consumer Protection Act, is amended by striking ‘‘Director of the Consumer Financial Protection Bureau’’ each place such term appears and inserting ‘‘Chair of the 

Commission of the Bureau of Consumer Financial Protection’’. 

(f) FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978.—Section 1004(a)(4) of the Federal Financial Institutions Examination Council Act of 

1978 (12 U.S.C. 3303(a)(4)), as amended by section 1091 of the Consumer Financial 

Protection Act of 2010, is amended by striking ‘‘Director of the Consumer Financial 

Protection Bureau’’ and inserting ‘‘Chair of the Commission of the Bureau of Consumer Financial Protection’’. 

(g) FINANCIAL LITERACY AND EDUCATION IMPROVEMENT ACT.—Section 513 of the 

Financial Literacy and Education Improvement Act, as amended by section 1013(d) 

of the Consumer Financial Protection Act of 2010, is amended by striking ‘‘Director’’ 

each place such term appears and inserting ‘‘Chair of the Commission’’. (h) HOME MORTGAGE DISCLOSURE ACT OF 1975.—Section 307 of the Home Mortgage Disclosure Act of 1975, as amended by section 1094(6) of the Consumer Financial Protection Act of 2010, is amended by striking ‘‘Director of the Bureau of Consumer Financial Protection’’ each place such term appears and inserting ‘‘Bureau of 

Consumer Financial Protection’’. 

(i) INTERSTATE LAND SALES FULL DISCLOSURE ACT.—The Interstate Land Sales 

Full Disclosure Act, as amended by section 1098A of the Consumer Financial Protection Act of 2010, is amended— 

(1) by amending section 1402(1) to read as follows: ‘‘(1) ‘Chair’ means the Chair of the Commission of the Bureau of Consumer Financial Protection;’’; 

(2) in section 1416(a), by striking ‘‘Director of the Bureau of Consumer Finan- cial Protection’’ and inserting ‘‘Chair’’; and (3) by striking ‘‘Director’’ each place such term appears and inserting ‘‘Bureau’’. 

(j) REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974.—Section 5 of the Real 

Estate Settlement Procedures Act of 1974, as amended by section 1450 of the DoddFrank Wall Street Reform and Consumer Protection Act, is amended— 

(1) by striking ‘‘The Director of the Bureau of Consumer Financial Protection 

(hereafter in this section referred to as the ‘Director’)’’ and inserting ‘‘The Bureau of Consumer Financial Protection’’; and 

(2) by striking ‘‘Director’’ each place such term appears and inserting ‘‘Bureau’’. 

(k) S.A.F.E. MORTGAGE LICENSING ACT OF 2008.—The S.A.F.E. Mortgage Licensing Act of 2008, as amended by section 1100 of the Consumer Financial Protection 

Act of 2010, is amended— 

(1) by striking ‘‘Director’’ each place such term appears in headings and text 

and inserting ‘‘Bureau’’; and 

(2) in section 1503, by striking paragraph (10). 

(l) TITLE 44, UNITED STATES CODE.—Section 3513(c) of title 44, United States 

Code, as amended by section 1100D(b) of the Consumer Financial Protection Act of 

2010, is amended by striking ‘‘Director of the Bureau’’ and inserting ‘‘Bureau’’. 

PURPOSE AND SUMMARY

H.R. 1121, the Responsible Consumer Financial Protection Regulations Act of 2011, would amend Section 1011 of the Dodd-Frank 

Act Wall Street Reform and Consumer Protection Act (Dodd-Frank 

Act) (P.L. 111–203), by replacing the Director of the Consumer Financial Protection Bureau (CFPB) with a five-person Commission. 

The bill would make the leadership structure of the CFPB a collegial body, like that of other federal agencies charged with consumer 

or investor protection, such as the Federal Trade Commission, the 

Securities and Exchange Commission, and the Federal Deposit InVerDate Mar 15 2010 06:07 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR107.XXX HR107

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surance Corporation. Like the collegial boards that head these 

agencies, the CFPB Commission would be empowered to prescribe 

regulations and issue orders to implement laws within its jurisdiction. One of the five seats on the CFPB Commission would be filled 

by the Vice Chairman for Supervision of the Federal Reserve System. The President would appoint the remaining four Commissioners: no more than two of the four may be from the same political party; and each of the four must have strong competencies and 

experiences related to consumer financial protection. In addition, 

one Commissioner is required to have as his or her primary responsibility the oversight of the Bureau’s activities pertaining to the 

protection of older consumers, minorities, youth, and veterans. Although the Chair of the Commission would fulfill the executive and 

administrative functions of the CFPB, the Chair’s discretion would 

be bounded by policies set by the whole Commission. 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 1121 was introduced by Chairman Bachus to replace the Director of the CFPB with a five-person Commission. The CFPB was 

created under Title X of the Dodd-Frank Act. The Dodd-Frank Act 

effectively places the CFPB under the control of a single person— 

its Director. Under the statute, the CFPB’s Director is appointed 

by the President and confirmed by the Senate. Once appointed and 

confirmed, the Director is given broad discretion to identify and 

ban financial products and services that he or she finds to be ‘‘unfair, deceptive, or abusive.’’ The Director has complete authority to 

adopt policies for carrying out the CFPB’s functions. Among other 

things, the Director may set policies on adopting rules and issuing 

orders and guidance; enter into contracts; establish the CFPB’s internal organization; and hire and supervise personnel. 

H.R. 1121 would amend the CFPB’s organizational structure to 

promote sound, stable policymaking at the Bureau. Consideration 

of CFPB’s rules, policies, and enforcement actions by a Commission 

ensures that multiple perspectives are brought to bear on decisions 

made by the CFPB, and that different points of view will be considered by the CFPB. As illustrated in other federal financial agencies—such as the Federal Deposit Insurance Corporation or the 

Federal Reserve Board—the commission structure offers more stability, ensures continuity in knowledge, provides for the continuous 

presence of experienced members at all times, and prevents gaps 

in agency effectiveness. Moreover, a commission structure promotes 

predictability in rulemaking by preventing a new CFPB Director 

from unilaterally and abruptly reversing the decisions made by a 

previous Director. 

H.R. 1121 also requires four of the Commission’s appointees to 

have strong competencies and experiences related to consumer financial protection. The fifth Commissioner will be the Vice Chairman for Supervision of the Federal Reserve System—a prudential 

regulator. By making one member of the Commission a prudential 

regulator, the legislation will ensure that the CFPB’s rules and 

regulations are rational and balanced and that the Commissioners 

consider the effect of the rules on the safe and sound operations of 

regulated financial institutions. The structure of the CFPB Commission will discourage the Bureau from implementing hastily proVerDate Mar 15 2010 06:07 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR107.XXX HR107

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mulgated rules that could reduce the availability or drive up the 

cost of credit. 

HEARINGS

The Subcommittee on Financial Institutions and Consumer Credit held a hearing on March 16, 2011 entitled ‘‘Oversight of the Consumer Financial Protection Bureau.’’ There was one witness: • Ms. Elizabeth Warren, Special Advisor to the Secretary of the Treasury for the Consumer Financial Protection Bureau, 

Department of the Treasury The Subcommittee on Financial Institutions and Consumer Credit held a legislative hearing on April 6, 2011 entitled, ‘‘Legislative 

Proposals to Improve the Structure of the Consumer Financial Protection Bureau.’’ The following witnesses testified: • Ms. Leslie R. Andersen, President and Chief Executive Officer, Bank of Bennington on behalf of the American Bankers 

Association • Ms. Lynette W. Smith, President and Chief Executive Offi- cer, Washington Gas Light FCU on behalf of the National Association of Federal Credit Unions • Mr. Jess Sharp, Executive Director, Center for Capital 

Markets Competitiveness, U.S. Chamber of Commerce 

• Mr. Hilary Shelton, Director, NAACP Washington Bureau 

and Senior VP for Advocacy and Policy, NAACP • Mr. Noah H. Wilcox, President and Chief Executive Officer, Grand Rapids State Bank on behalf of the Independent 

Community Bankers of America • Mr. Rod Staatz, President and Chief Executive Officer, 

SECU of Maryland on behalf of the Credit Union National Association • Mr. Richard Hunt, President, Consumer Bankers Association • Prof. Adam J. Levitin, Georgetown University Law Center 

COMMITTEE CONSIDERATION

The Subcommittee on Financial Institutions and Consumer Credit met in open session on May 4, 2011 and ordered H.R. 1121, the 

Responsible Consumer Financial Protection Regulations Act of 

2011, favorably reported to the Full Committee by a record vote of 

13 yeas and 7 nays (Record vote no. FI–5). 

The Committee on Financial Services met in open session on 

May 12, 2011 and ordered H.R. 1121, the Responsible Consumer 

Financial Protection Regulations Act of 2011, as amended, favorably reported to the House by a record vote of 33 yeas and 24 nays 

(Record vote no. FC–32). 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. A motion by Chairman Bachus to report the bill, as amended, to the House with a 

favorable recommendation was agreed to by a record vote of 33 

yeas and 24 nays (Record vote no. FC–32). The names of Members 

voting for and against follow: 


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RECORD VOTE NO. FC–32 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. X ........... ............. Ms. Vela

 ́

zquez ...................... ........... X .............

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Ackerman ....................... ........... X .............

Mr. Jones ............................... X ........... ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... X .............

Mr. Gary G. Miller (CA) ......... X ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Hinojosa ......................... ........... X .............

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... X ........... ............. Mr. Baca .............................. ........... X .............

Mr. Campbell ........................ X ........... ............. Mr. Lynch ............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCarthy (CA) ................ X ........... ............. Mr. Al Green (TX) ................. ........... X .............

Mr. Pearce ............................. X ........... ............. Mr. Cleaver ........................... ........... X .............

Mr. Posey .............................. X ........... ............. Ms. Moore ............................. ........... X .............

Mr. Fitzpatrick ....................... X ........... ............. Mr. Ellison ............................ ........... ........... .............

Mr. Westmoreland ................. X ........... ............. Mr. Perlmutter ...................... ........... X .............

Mr. Luetkemeyer .................... X ........... ............. Mr. Donnelly ......................... ........... X .............

Mr. Huizenga ......................... X ........... ............. Mr. Carson ........................... ........... X .............

Mr. Duffy ............................... X ........... ............. Mr. Himes ............................. ........... X .............

Ms. Hayworth ........................ X ........... ............. Mr. Peters ............................. ........... X .............

Mr. Renacci ........................... X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. X ........... .............

Mr. Canseco .......................... X ........... .............

Mr. Stivers ............................ X ........... .............

Mr. Fincher ............................ X ........... .............

During consideration of H.R. 1121, the following amendments 

were considered: 

1. An amendment offered by Mr. Royce, no. 1, to make the Fed’s 

Vice-Chairman for Supervision a permanent member of the CFPB 

Commission, was agreed to by a record vote of 32 yeas and 22 nays 

(Record vote no. FC–29). 

RECORD VOTE NO. FC–29 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. X ........... ............. Ms. Vela

 ́

zquez ...................... ........... X .............

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Ackerman ....................... ........... ........... .............

Mr. Jones ............................... ........... X ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... ........... .............

Mr. Gary G. Miller (CA) ......... X ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Hinojosa ......................... ........... X .............

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... X ........... ............. Mr. Baca .............................. ........... ........... .............

Mr. Campbell ........................ X ........... ............. Mr. Lynch ............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCarthy (CA) ................ X ........... ............. Mr. Al Green (TX) ................. ........... X .............


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RECORD VOTE NO. FC–29—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Pearce ............................. X ........... ............. Mr. Cleaver ........................... ........... X .............

Mr. Posey .............................. X ........... ............. Ms. Moore ............................. ........... X .............

Mr. Fitzpatrick ....................... X ........... ............. Mr. Ellison ............................ ........... ........... .............

Mr. Westmoreland ................. X ........... ............. Mr. Perlmutter ...................... ........... X .............

Mr. Luetkemeyer .................... X ........... ............. Mr. Donnelly ......................... ........... X .............

Mr. Huizenga ......................... X ........... ............. Mr. Carson ........................... ........... X .............

Mr. Duffy ............................... X ........... ............. Mr. Himes ............................. ........... X .............

Ms. Hayworth ........................ X ........... ............. Mr. Peters ............................. ........... X .............

Mr. Renacci ........................... X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. X ........... .............

Mr. Canseco .......................... X ........... .............

Mr. Stivers ............................ X ........... .............

Mr. Fincher ............................ X ........... .............

2. An amendment offered by Mr. Duffy, no. 2a, as amended by 

an amendment offered by Mr. Miller of North Carolina, no. 2b, to 

an amendment offered by Ms. Velazquez, no. 2, to add that the criteria of minorities or youth also be considered by one Commissioner 

as his or her responsibility oversight of the Bureau’s activities pertaining to consumer protection, was agreed to by a record vote of 

30 yeas and 25 nays (Record vote no. FC–30). 

RECORD VOTE NO. FC–30 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. X ........... ............. Ms. Vela

 ́

zquez ...................... ........... X .............

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Ackerman ....................... ........... ........... .............

Mr. Jones ............................... ........... X ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... ........... .............

Mr. Gary G. Miller (CA) ......... X ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Hinojosa ......................... ........... X .............

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... X ........... ............. Mr. Baca .............................. ........... X .............

Mr. Campbell ........................ ........... X ............. Mr. Lynch ............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCarthy (CA) ................ X ........... ............. Mr. Al Green (TX) ................. ........... X .............

Mr. Pearce ............................. X ........... ............. Mr. Cleaver ........................... ........... X .............

Mr. Posey .............................. X ........... ............. Ms. Moore ............................. ........... X .............

Mr. Fitzpatrick ....................... X ........... ............. Mr. Ellison ............................ ........... ........... .............

Mr. Westmoreland ................. X ........... ............. Mr. Perlmutter ...................... ........... X .............

Mr. Luetkemeyer .................... X ........... ............. Mr. Donnelly ......................... ........... X .............

Mr. Huizenga ......................... X ........... ............. Mr. Carson ........................... ........... X .............

Mr. Duffy ............................... X ........... ............. Mr. Himes ............................. ........... X .............

Ms. Hayworth ........................ ........... X ............. Mr. Peters ............................. ........... X .............

Mr. Renacci ........................... X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. X ........... .............

Mr. Canseco .......................... X ........... .............

Mr. Stivers ............................ X ........... .............

Mr. Fincher ............................ X ........... .............


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9 

3. An amendment offered by Mrs. Maloney, no. 3, as amended by 

an amendment offered by Mr. Watt, no. 3a, to require that the 

Chair of the Bureau be a person who is credited with originating 

the idea for the Bureau, who advocated for its creation, who is currently standing up the Bureau, and who wants to make prices clear 

and protect service members, was not agreed to by a record vote 

of 15 yeas, 38 nays and 3 present (Record vote no. FC–31). 

RECORD VOTE NO. FC–31 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... ........... X ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... ........... X ............. Ms. Waters ........................... X ........... .............

Mr. King (NY) ........................ ........... X ............. Mrs. Maloney ........................ X ........... .............

Mr. Royce .............................. ........... X ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. ........... X ............. Ms. Vela

 ́

zquez ...................... X ........... .............

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... X ........... .............

Mr. Manzullo ......................... ........... X ............. Mr. Ackerman ....................... ........... ........... .............

Mr. Jones ............................... ........... X ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... ........... X ............. Mr. Meeks ............................. X ........... .............

Mr. Gary G. Miller (CA) ......... ........... X ............. Mr. Capuano ........................ X ........... .............

Mrs. Capito ........................... ........... X ............. Mr. Hinojosa ......................... X ........... .............

Mr. Garrett ............................ ........... X ............. Mr. Clay ................................ X ........... .............

Mr. Neugebauer .................... ........... X ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... ........... X ............. Mr. Baca .............................. X ........... .............

Mr. Campbell ........................ ........... X ............. Mr. Lynch ............................. X ........... .............

Mrs. Bachmann .................... ........... X ............. Mr. Miller (NC) ..................... ........... ........... X 

Mr. McCotter ......................... ........... X ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCarthy (CA) ................ ........... X ............. Mr. Al Green (TX) ................. ........... ........... X 

Mr. Pearce ............................. ........... X ............. Mr. Cleaver ........................... ........... ........... X 

Mr. Posey .............................. ........... X ............. Ms. Moore ............................. ........... X .............

Mr. Fitzpatrick ....................... ........... X ............. Mr. Ellison ............................ ........... ........... .............

Mr. Westmoreland ................. ........... X ............. Mr. Perlmutter ...................... X ........... .............

Mr. Luetkemeyer .................... ........... X ............. Mr. Donnelly ......................... ........... X .............

Mr. Huizenga ......................... ........... X ............. Mr. Carson ........................... X ........... .............

Mr. Duffy ............................... ........... X ............. Mr. Himes ............................. X ........... .............

Ms. Hayworth ........................ ........... X ............. Mr. Peters ............................. X ........... .............

Mr. Renacci ........................... ........... X ............. Mr. Carney ............................ X ........... .............

Mr. Hurt ................................ ........... X .............

Mr. Dold ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Mr. Grimm ............................. ........... X .............

Mr. Canseco .......................... ........... X .............

Mr. Stivers ............................ ........... X .............

Mr. Fincher ............................ ........... X .............

The following amendments and motion were also considered by 

the Committee: 

1. An amendment offered by Mr. Miller of North Carolina, no. 2b, 

to an amendment offered by Mr. Duffy, no. 2a, to delete ‘‘and’’ and 

add ‘‘, or’’ after youth was agreed to by Unanimous Consent. 

2. An amendment offered by Ms. Velazquez, no. 2, as amended 

by an amendment offered by Mr. Duffy, no. 2a, as amended, to require that one Commissioner shall have as his or her primary responsibility the oversight of the Bureau’s activities pertaining to 

consumer protection focusing on older consumers, veterans, minorities, or youth was agreed to by voice vote. 

3. An amendment offered by Mr. Watt, no. 3a, to an amendment 

offered by Mrs. Maloney, no. 3, to add ‘‘first’’ before ‘‘Chair’’ on line 

1, was agreed to by Unanimous Consent. 

4. An amendment offered by Mr. Ellison, no. 4a, to an amendment offered by Mr. Ellison, no. 4, to change the location of the 


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10 

amendment text from page 4, line 15 to page 3 after line 3, was 

agreed to by Unanimous Consent. 

5. An amendment offered by Mr. Ellison, no. 4, as amended by 

an amendment offered by Mr. Ellison, no. 4a, to require that members of the Commission should want to protect service members 

and their families, was agreed to by voice vote. 

6. An amendment offered by Mr. Ellison, no. 5, to require Senate 

confirmation votes within 90 days of a nomination being submitted 

by the President, was not agreed to by voice vote. 

7. A motion offered by Mr. Hensarling, to move the previous 

question on H.R. 1121, was agreed to by voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has held a hearing and made 

findings that are reflected in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

The purpose of H.R. 1121 is to amend the CFPB’s organizational 

structure to promote sound, stable policymaking at the Bureau. 

The bill makes the leadership structure of the CFPB a collegial 

body, like that of other Federal agencies charged with consumer or 

investor protection, such as the FTC, the SEC, and the FDIC. Specifically, H.R. 1121 replaces the Director of the CFPB with a fiveperson Commission with one member of the Commission to be the 

Vice Chairman for Supervision of the Federal Reserve System. In 

addition, H.R. 1121 requires four of the appointees to the Commission to have strong competencies and experiences related to consumer financial protection. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 


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11 

MAY 24, 2011. 

Hon. SPENCER BACHUS, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1121, the Responsible 

Consumer Financial Protection Regulations Act of 2011. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 1121—Responsible Consumer Financial Protection Regulations 

Act of 2011 

Summary: H.R. 1121 would replace the Director of the Consumer 

Financial Protection Bureau (CFPB) with a commission made up of 

a chairman and four additional members appointed by the President and confirmed by the Senate. The commission would be responsible for developing regulations to carry out the laws that fall 

within the jurisdiction of the CFPB. The CFPB is permanently authorized to spend amounts transferred from the Federal Reserve. 

Because that activity is not subject to appropriation, CFPB expenditures constitute direct spending. 

Based on information from the CFPB, CBO estimates that enacting H.R. 1121 would increase direct spending by $71 million over 

the 2012–2021 period. Because the bill would affect direct spending, pay-as-you-go procedures apply. CBO estimates that the bill 

would not affect revenues or spending subject to appropriation. 

H.R. 1121 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would not affect the budgets of state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 1121 is shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). 

By fiscal year, in millions of dollars— 

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012– 

2016 

2012– 

2021 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority .................. 5 7 7 7 7 7 7 8 9 9 34 73 

Estimated Outlays ................................. 4 6 7 7 7 7 7 8 9 9 31 71 

Note: Components may not sum to totals because of rounding. 

Basis of estimate: CBO assumes that the bill will be enacted 

near the end of fiscal year 2011, that the new commissioners will 

be hired by the end of the first quarter of fiscal year 2012, and that 

spending will follow historical patterns for similar activities. 

H.R. 1121 would replace the director and deputy director of the 

CFPB with a five-member commission. Based on information from 

the CFPB, CBO estimates that the agency would hire an additional 

20 employees in fiscal year 2012 to provide legal, research, and administrative support to the commissioners; currently, the CFPB 


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12 

projects that the director’s office would be supported by a staff of 

10 employees that would provide similar services. The agency plans to reach full staffing levels (about 1,500 em- ployees) over the next several years; of that total, approximately 

300 positions are expected to transfer from other regulatory agencies near the end of fiscal year 2011. The new staff will carry out 

the authority that will be transferred to the bureau in July to enforce federal laws related to consumer financial protection and to 

establish a number of new offices that will focus on fair lending, 

financial education, and financial protection for older Americans 

and servicemembers. To carry out those authorities, CBO estimates 

that the bureau will spend $114 million in 2011 and an average of 

about $420 million per year over the 2011–2021 period. 

Based on information from the CFPB and other agencies with 

similar organizational structures, CBO estimates that enacting 

H.R. 1121 would increase direct spending by $71 million over the 

2012–2021 period (about 2 percent of CBO’s estimate of the 11-year 

costs for the bureau). Those additional costs represent expenses for 

salaries, benefits, and overhead for new positions that would not be 

created under current law. 

Pay-as-you-go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 

By Fiscal Year, in Millions of Dollars 

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011– 

2016 

2011– 

2021 

NET INCREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Impact 0 4 6 7 7 7 7 7 8 9 9 31 71 

Intergovernmental and private-sector impact: H.R. 1121 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

Estimate prepared by: Federal Costs: Susan Willie; Impact on 

State, Local, and Tribal Governments: Elizabeth Cove Delisle; Impact on the Private Sector: Paige Piper/Bach. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 


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13 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 1121 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This Act may be cited as the ‘‘Responsible Consumer Financial 

Protection Regulations Act of 2011.’’ 

Section 2. Establishment of the commission 

Section Two amends Section 1011 of the Dodd-Frank Act. Subsections (b), (c), and (d) of Section 1011, which provide for the 

CFPB to be headed by a Director, are stricken. Instead, a Commission, with responsibility for exercising the Bureau’s authorities, is 

established to run the CFPB. 

The Commission will be composed of four members appointed by 

the President, with the advice and consent of the Senate, plus the 

Vice Chairman for Supervision of the Federal Reserve System. The 

appointed members of the Commission shall serve five-year, staggered terms. One member of the Commission will focus on protecting consumers who are older, minorities, youth, or veterans 

from unfair, deceptive, and abusive practices. Not more than two 

appointed Commission members shall be members of any one political party. 

The Chair of the Commission will be appointed by the President 

from among the four appointed Commission members. The Chair 

‘‘should want to protect service members and their families from 

abusive financial practices.’’ The Chair will exercise all the CFPB’s 

executive and administrative functions. The Chair will, however, be 

governed by the general policies, findings, and determinations of 

the Commission in carrying out his or her duties. 

Section 3. Conforming amendments 

Section Three makes conforming amendments to the following 

laws: Consumer Financial Protection Act of 2010, Dodd-Frank Wall 

Street Reform and Consumer Protection Act of 2010, Electronic 

Funds Transfer Act, Expedited Funds Availability Act, Federal Deposit Insurance Act, Federal Financial Institutions Examination 

Council Act of 1978, Financial Literacy and Education Improvement Act, Home Mortgage Disclosure Act of 1975, Interstate Land 

Sales Full Disclosure Act, Real Estate Settlement Procedures Act 

of 1974, and S.A.F.E. Mortgage Licensing Act of 2008. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

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


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CONSUMER FINANCIAL PROTECTION ACT OF 2010 

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) * * * 

* * * * * * * 

¿(10) DIRECTOR.—The term ‘‘Director’’ means the Director of 

the Bureau.

* * * * * * * 

Subtitle A—Bureau of Consumer Financial 

Protection 

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

(a) * * * 

¿(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 


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15 

bank, Federal home loan bank, covered person, or service provider 

during the period of service of such person as Director or Deputy 

Director.

(b) ESTABLISHMENT OF THE COMMISSION.— 

(1) IN GENERAL.—There is hereby established a commission 

(hereinafter referred to in this section as the ‘‘Commission’’) that 

shall serve as the head of the Bureau. 

(2) AUTHORITY TO PRESCRIBE REGULATIONS.—The Commission may prescribe such regulations and issue such orders in 

accordance with this title as the Commission may determine to 

be necessary for carrying out this title and all other laws within 

the Commission’s jurisdiction and shall exercise any authorities 

granted under this title and all other laws within the Commission’s jurisdiction. 

(c) COMPOSITION OF THE COMMISSION.— 

(1) IN GENERAL.—The Commission shall be composed of the 

Vice Chairman for Supervision of the Federal Reserve System 

and 4 additional members who shall be appointed by the President, by and with the advice and consent of the Senate, from 

among individuals who— 

(A) are citizens of the United States; 

(B) have strong competencies and experiences related to 

consumer financial protection; and 

(C) should want to protect service members and their 

families who are sacrificing their lives for this country from 

abusive financial practices. 

(2) STAGGERING.—The members of the Commission appointed 

under paragraph (1) shall serve staggered terms, which initially 

shall be established by the President for terms of 1, 2, 4, and 

5 years, respectively. 

(3) TERMS.— 

(A) IN GENERAL.—Each member of the Commission appointed under paragraph (1), including the Chair, shall 

serve for a term of 5 years. 

(B) REMOVAL FOR CAUSE.—The President may remove 

any member of the Commission appointed under paragraph 

(1) only for inefficiency, neglect of duty, or malfeasance in 

office. 

(C) VACANCIES.—Any member of the Commission appointed under paragraph (1) appointed to fill a vacancy occurring before the expiration of the term to which that 

member’s predecessor was appointed (including the Chair) 

shall be appointed only for the remainder of the term. 

(D) CONTINUATION OF SERVICE.—Each member of the 

Commission appointed under paragraph (1) may continue 

to serve after the expiration of the term of office to which 

that member was appointed until a successor has been appointed by the President and confirmed by the Senate, except that a member may not continue to serve more than 1 

year after the date on which that member’s term would otherwise expire. 

(E) OTHER EMPLOYMENT PROHIBITED.—No member of the 

Commission appointed under paragraph (1) shall engage in 

any other business, vocation, or employment. 


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16 

(4) ROLES AND RESPONSIBILITIES OF COMMISSIONERS.—One 

member of the Commission shall have as their primary responsibility the oversight of the Bureau’s activities pertaining to protecting consumers, with a focus on consumers who are older, 

minorities, youth, or veterans, from unfair, deceptive, and abusive lending practices. The designated commissioner shall be responsible for— 

(A) ensuring the Bureau conducts regular outreach to 

consumers regarding industry lending activities; (B) researching and reporting to the full Commission, on 

a regular basis, the impact of new loan and credit products 

and services on consumers; and 

(C) ensuring the Bureau coordinates with State-level consumer protection agencies on enforcement measures that 

protect consumers from unfair, deceptive, and abusive lending practices. (d) AFFILIATION.—With respect to members appointed pursuant to 

subsection (c)(1), not more than 2 shall be members of any one political party. (e) CHAIR OF THE COMMISSION.— (1) APPOINTMENT.—The Chair of the Commission shall be appointed by the President from among the members of the Commission appointed under paragraph (1). (2) AUTHORITY.—The Chair shall be the principal executive 

officer of the Bureau, and shall exercise all of the executive and 

administrative functions of the Bureau, including with respect 

to— 

(A) the appointment and supervision of personnel employed under the Bureau (other than personnel employed 

regularly and full time in the immediate offices of members 

of the Commission other than the Chair); 

(B) the distribution of business among personnel appointed and supervised by the Chair and among administrative units of the Bureau; and 

(C) the use and expenditure of funds. 

(3) LIMITATION.—In carrying out any of the Chair’s functions 

under the provisions of this subsection the Chair shall be governed by general policies of the Commission and by such regulatory decisions, findings, and determinations as the Commission may by law be authorized to make. (4) REQUESTS OR ESTIMATES RELATED TO APPROPRIATIONS.— 

Requests or estimates for regular, supplemental, or deficiency 

appropriations on behalf of the Commission may not be submitted by the Chair without the prior approval of the Commission. 

(f) NO IMPAIRMENT BY REASON OF VACANCIES.—No vacancy in the 

members of the Commission shall impair the right of the remaining 

members of the Commission to exercise all the powers of the Commission. Three members of the Commission shall constitute a 

quorum for the transaction of business, except that if there are only 

3 members serving on the Commission because of vacancies in the 

Commission, 2 members of the Commission shall constitute a 

quorum for the transaction of business. If there are only 2 members 

serving on the Commission because of vacancies in the Commission, 

2 members shall constitute a quorum for the 6-month period beginVerDate Mar 15 2010 06:07 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00016 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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17 

ning on the date of the vacancy which caused the number of Commission members to decline to 2. 

(g) SEAL.—The Commission shall have an official seal. 

(h) COMPENSATION.— (1) CHAIR.—The Chair shall receive compensation at the rate 

prescribed for level I of the Executive Schedule under section 

5313 of title 5, United States Code. 

(2) OTHER MEMBERS OF THE COMMISSION.—The 3 other members of the Commission appointed under subsection (c)(1) shall 

each receive compensation at the rate prescribed for level II of 

the Executive Schedule under section 5314 of title 5, United 

States Code. 

(i) INITIAL QUORUM ESTABLISHED.—During any time period prior 

to the confirmation of at least two members of the Commission, one 

member of the Commission shall constitute a quorum for the transaction of business. Following the confirmation of at least 2 additional commissioners, the quorum requirements of subsection (f) 

shall apply. 

¿(e) (j) OFFICES.—The principal office of the Bureau shall be in 

the District of Columbia. The ¿Director Bureau 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) * * * 

* * * * * * * 

(8) the distribution of business among personnel appointed 

and supervised by the ¿Director Bureau and among administrative units of the Bureau; 

* * * * * * * 

(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) * * * 

(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 Bureau, including examinations or enforcement 

actions, unless otherwise specifically provided by law; 

* * * * * * * 

(4) RECOMMENDATIONS AND TESTIMONY.—No officer or agency 

of the United States shall have any authority to require the 

¿Director Commission of the Bureau 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 comVerDate Mar 15 2010 06:07 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00017 Fmt 6659 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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18 

ments 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 Commission of the Bureau 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 Bureau may fix the 

number of, and appoint and direct, all employees of the 

Bureau, in accordance with the applicable provisions of 

title 5, United States Code. 

(B) EMPLOYEES OF THE BUREAU.—The ¿Director Bureau 

is authorized to employ attorneys, compliance examiners, 

compliance supervision analysts, economists, statisticians, 

and other employees as may be deemed necessary to conduct the business of the Bureau. Unless otherwise provided expressly by law, any individual appointed under 

this section shall be an employee as defined in section 

2105 of title 5, United States Code, and subject to the provisions of such title and other laws generally applicable to 

the employees of an Executive agency. 

(C) WAIVER AUTHORITY.— 

(i) IN GENERAL.—In making any appointment under 

subparagraph (A), the ¿Director Bureau may waive 

the requirements of chapter 33 of title 5, United 

States Code, and the regulations implementing such 

chapter, to the extent necessary to appoint employees 

on terms and conditions that are consistent with those 

set forth in section 11(1) of the Federal Reserve Act 

(12 U.S.C. 248(1)), while providing for— 

(I) * * * 

* * * * * * * 

(ii) VETERANS PREFERENCES.—In implementing this 

subparagraph, the ¿Director Bureau shall comply 

with the provisions of section 2302(b)(11), regarding 

veterans’ preference requirements, in a manner consistent with that in which such provisions are applied 

under chapter 33 of title 5, United States Code. The 

authority under this subparagraph to waive the requirements of that chapter 33 shall expire 5 years 

after the date of enactment of this Act. 

(2) COMPENSATION.—Notwithstanding any otherwise applicable provision of title 5, United States Code, concerning compensation, including the provisions of chapter 51 and chapter 

53, the following provisions shall apply with respect to employees of the Bureau: 

(A) The rates of basic pay for all employees of the Bureau may be set and adjusted by the ¿Director Bureau. 

(B) The ¿Director Bureau shall at all times provide 

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tion and benefits then being provided by the Board of Governors for the corresponding class of employees. 

* * * * * * * 

(b) SPECIFIC FUNCTIONAL UNITS.— 

(1) RESEARCH.—The ¿Director Bureau shall establish a unit 

whose functions shall include researching, analyzing, and reporting on— 

(A) * * * 

* * * * * * * 

(2) COMMUNITY AFFAIRS.—The ¿Director Bureau 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 Bureau shall establish 

a unit whose functions shall include establishing a single, 

toll-free telephone number, a website, and a database or 

utilizing an existing database to facilitate the centralized 

collection of, monitoring of, and response to consumer complaints regarding consumer financial products or services. 

The ¿Director Bureau shall coordinate with the Federal 

Trade Commission or other Federal agencies to route complaints to such agencies, where appropriate. 

* * * * * * * 

(C) REPORTS TO THE CONGRESS.—The ¿Director Bureau 

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. 

* * * * * * * 

(c) OFFICE OF FAIR LENDING AND EQUAL OPPORTUNITY.— 

(1) * * * 

(2) FUNCTIONS.—The Office of Fair Lending and Equal Opportunity shall have such powers and duties as the ¿Director

Bureau may delegate to the Office, including— 

(A) * * * 

* * * * * * * 

(3) ADMINISTRATION OF OFFICE.—There is established the position of ¿Assistant Director of the Bureau for Head of the Office of Fair Lending and Equal Opportunity, who— 

(A) * * * 

(B) shall carry out such duties as the ¿Director Bureau 

may delegate to such ¿Assistant Director Head of the Office. 

(d) OFFICE OF FINANCIAL EDUCATION.— 

(1) ESTABLISHMENT.—The ¿Director Bureau shall establish 

an Office of Financial Education, which shall be responsible for 

developing and implementing initiatives intended to educate 


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and empower consumers to make better informed financial decisions. 

* * * * * * * 

(3) COORDINATION.—The Office of Financial Education shall 

coordinate with other units within the Bureau in carrying out 

its functions, including— 

(A) * * * 

(B) working with the research unit established by the 

¿Director Bureau 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 Bureau 

shall submit a report on its financial literacy activities and 

strategy to improve financial literacy of consumers to— 

(A) * * * 

* * * * * * * 

(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) * * * 

* * * * * * * 

(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.’’. 

* * * * * * * 

(e) OFFICE OF SERVICE MEMBER AFFAIRS.— 

(1) IN GENERAL.—The ¿Director Bureau shall establish an 

Office of Service Member Affairs, which shall be responsible for 

developing and implementing initiatives for service members 

and their families intended to— 

(A) * * * 

* * * * * * * 

(2) COORDINATION.— 

(A) REGIONAL SERVICES.—The ¿Director Bureau is authorized to assign employees of the Bureau as may be 

deemed necessary to conduct the business of the Office of 

Service Member Affairs, including by establishing and 

maintaining the functions of the Office in regional offices 

of the Bureau located near military bases, military treatment facilities, or other similar military facilities. (B) AGREEMENTS.—The ¿Director Bureau is authorized 

to enter into memoranda of understanding and similar 

agreements with the Department of Defense, including any 

branch or agency as authorized by the department, in 


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order to carry out the business of the Office of Service 

Member Affairs. 

* * * * * * * 

(g) OFFICE OF FINANCIAL PROTECTION FOR OLDER AMERICANS.— (1) ESTABLISHMENT.—Before the end of the 180-day period beginning on the designated transfer date, the ¿Director Bureau shall establish the Office of Financial Protection for Older 

Americans, the functions of which shall include activities designed to facilitate the financial literacy of individuals who 

have attained the age of 62 years or more (in this subsection, 

referred to as ‘‘seniors’’) on protection from unfair, deceptive, 

and abusive practices and on current and future financial 

choices, including through the dissemination of materials to 

seniors on such topics. (2) ¿ASSISTANT DIRECTOR HEAD OF THE OFFICE.—The Office 

of Financial Protection for Older Americans (in this subsection 

referred to as the ‘‘Office’’) shall be headed by ¿an assistant director a Head of the Office of Financial Protection for Older 

Americans. 

* * * * * * * 

SEC. 1014. CONSUMER ADVISORY BOARD. 

(a) ESTABLISHMENT REQUIRED.—The ¿Director Bureau 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 Bureau shall seek to assemble experts in consumer protection, financial services, community development, fair lending and civil rights, and consumer financial products or services and representatives of depository institutions that 

primarily serve underserved communities, and representatives of 

communities that have been significantly impacted by higherpriced mortgage loans, and seek representation of the interests of 

covered persons and consumers, without regard to party affiliation. 

Not fewer than 6 members shall be appointed upon the recommendation of the regional Federal Reserve Bank Presidents, on 

a rotating basis. (c) MEETINGS.—The Consumer Advisory Board shall meet from 

time to time at the call of the ¿Director Bureau, 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 Bureau while attending meetings of the Consumer 

Advisory Board, including travel time; and 

* * * * * * * 

SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS. 

(a) APPEARANCES BEFORE CONGRESS.—The ¿Director of the Bureau Chair of the Commission shall appear before the Committee 

on Banking, Housing, and Urban Affairs of the Senate and the 


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Committee on Financial Services and the Committee on Energy 

and Commerce of the House of Representatives at semi-annual 

hearings regarding the reports required under subsection (b). 

* * * * * * * 

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 Bureau 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). 

* * * * * * * 

(4) BUDGET AND FINANCIAL MANAGEMENT.— 

(A) FINANCIAL OPERATING PLANS AND FORECASTS.—The 

¿Director Bureau shall provide to the Director of the Office of Management and Budget copies of the financial operating plans and forecasts of the ¿Director Bureau, as 

prepared by the ¿Director Bureau 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 Bureau in 

the ordinary course of the operations of the Bureau. 

* * * * * * * 

(D) ASSERTION OF INTERNAL CONTROLS.—The ¿Director

Bureau 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 Bureau 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) * * * 

* * * * * * * 

(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 purVerDate Mar 15 2010 06:07 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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poses. 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. 

* * * * * * * 

(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 Bureau, 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 members 

of the Commission and other employees of the Bureau and all 

other expenses thereof may be paid from, obtained by, transferred to, or credited to the Bureau Fund under this section. 

* * * * * * * 

(e) AUTHORIZATION OF APPROPRIATIONS; ANNUAL REPORT.— (1) DETERMINATION REGARDING NEED FOR APPROPRIATED

FUNDS.— 

(A) IN GENERAL.—The ¿Director Bureau is authorized 

to determine that sums available to the Bureau under this 

section will not be sufficient to carry out the authorities of 

the Bureau under Federal consumer financial law for the 

upcoming year. (B) REPORT REQUIRED.—When making a determination under subparagraph (A), the ¿Director Bureau shall prepare a report regarding the funding of the Bureau, including the assets and liabilities of the Bureau, and the extent 

to which the funding needs of the Bureau are anticipated 

to exceed the level of the amount set forth in subsection 

(a)(2). The ¿Director Bureau shall submit the report to 

the President and to the Committee on Appropriations of 

the Senate and the Committee on Appropriations of the 

House of Representatives. 

(2) AUTHORIZATION OF APPROPRIATIONS.—If the ¿Director

Bureau makes the determination and submits the report pursuant to paragraph (1), there are hereby authorized to be appropriated to the Bureau, for the purposes of carrying out the 

authorities granted in Federal consumer financial law, 

$200,000,000 for each of fiscal years 2010, 2011, 2012, 2013, 

and 2014. 

* * * * * * * 

(4) ANNUAL REPORT.—The ¿Director Bureau shall prepare 

and submit a report, on an annual basis, to the Committee on 

Appropriations of the Senate and the Committee on Appropriations of the House of Representatives regarding the financial 

operating plans and forecasts of the ¿Director Bureau, the fiVerDate Mar 15 2010 06:07 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00023 Fmt 6659 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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nancial condition and results of operations of the Bureau, and 

the sources and application of funds of the Bureau, including 

any funds appropriated in accordance with this subsection. 

* * * * * * * 

Subtitle B—General Powers of the Bureau 

* * * * * * * 

SEC. 1022. RULEMAKING AUTHORITY. 

(a) * * * 

(b) RULEMAKING, ORDERS, AND GUIDANCE.— (1) GENERAL AUTHORITY.—The ¿Director Bureau 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. 

* * * * * * * 

SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED PERSONS. 

(a) * * * 

(b) SUPERVISION.— 

(1) * * * 

* * * * * * * 

(5) PRESERVATION OF AUTHORITY.—Nothing in this title may 

be construed as limiting the authority of the ¿Director Bureau 

to require reports from persons described in subsection (a)(1), 

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. 

* * * * * * * 

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

(a) * * * 

(b) SUPERVISION.— 

(1) * * * 

* * * * * * * 

(4) PRESERVATION OF AUTHORITY.—Nothing in this title may 

be construed as limiting the authority of the ¿Director Bureau 

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. 

* * * * * * * 

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

UNIONS. 

(a) * * * 

(b) REPORTS.—The ¿Director Bureau may require reports from 

a person described in subsection (a), as necessary to support the 

role of the Bureau in implementing Federal consumer financial 


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law, to support its examination activities under subsection (c), and 

to assess and detect risks to consumers and consumer financial 

markets. 

(1) * * * 

(2) PRESERVATION OF AUTHORITY.—Nothing in this subsection 

may be construed as limiting the authority of the ¿Director

Bureau 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. 

* * * * * * * 

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

(a) * * * 

* * * * * * * 

(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. 

* * * * * * * 

Subtitle C—Specific Bureau Authorities 

* * * * * * * 

SEC. 1035. PRIVATE EDUCATION LOAN OMBUDSMAN. 

(a) ESTABLISHMENT.—The Secretary, in consultation with the 

¿Director Bureau, shall designate a Private Education Loan Om- budsman (in this section referred to as the ‘‘Ombudsman’’) within 

the Bureau, to provide timely assistance to borrowers of private 

education loans. 

(b) PUBLIC INFORMATION.—The Secretary and the ¿Director Bureau 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 Bureau, receive, review, and attempt to resolve informally complaints 

from borrowers of loans described in subsection (a), including, 

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ration with the Department of Education and with institutions 

of higher education, lenders, guaranty agencies, loan servicers, 

and other participants in private education loan programs; 

* * * * * * * 

(4) make appropriate recommendations to the ¿Director Bureau, 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. 

* * * * * * * 

Subtitle F—Transfer of Functions and 

Personnel; Transitional Provisions 

* * * * * * * 

SEC. 1066. INTERIM AUTHORITY OF THE SECRETARY. 

(a) IN GENERAL.—The Secretary is authorized to perform the 

functions of the Bureau under this subtitle until the ¿Director of 

the Bureau is first member of the Commission is confirmed by the 

Senate in accordance with section 1011. 

* * * * * * * 

Subtitle G—Regulatory Improvements 

* * * * * * * 

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

(a) REVIEW.—The ¿Director Bureau shall review all Federal 

laws and regulations relating to the protection of consumers who 

use exchange facilitators for transactions primarily for personal, 

family, or household purposes. 

(b) REPORT.—Not later than 1 year after the designated transfer 

date, the ¿Director Bureau shall submit to Congress a report describing— 

(1) * * * 

* * * * * * * 

DODD-FRANK WALL STREET REFORM AND CONSUMER 

PROTECTION ACT 

* * * * * * * 

TITLE I—FINANCIAL STABILITY 

* * * * * * * 


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Subtitle A—Financial Stability Oversight 

Council 

SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED. 

(a) * * * 

(b) MEMBERSHIP.—The Council shall consist of the following 

members: 

(1) VOTING MEMBERS.—The voting members, who shall each 

have 1 vote on the Council shall be— 

(A) * * * 

* * * * * * * 

(D) the ¿Director Chair of the Commission of the Bureau; 

* * * * * * * 

TITLE XIV—MORTGAGE REFORM AND 

ANTI-PREDATORY LENDING ACT 

* * * * * * * 

Subtitle D—Office of Housing Counseling 

* * * * * * * 

SEC. 1447. DEFAULT AND FORECLOSURE DATABASE. 

(a) ESTABLISHMENT.—The Secretary of Housing and Urban Development and the ¿Director of the Bureau Bureau, in consultation with the Federal agencies responsible for regulation of banking 

and financial institutions involved in residential mortgage lending 

and servicing, shall establish and maintain a database of information on foreclosures and defaults on mortgage loans for one- to fourunit residential properties and shall make such information publicly available, subject to subsection (e). 

* * * * * * * 

(c) REQUIREMENTS.—Information collected and made available 

through the database shall include— 

(1) * * * 

* * * * * * * 

(6) such other information as the Secretary of Housing and 

Urban Development and the ¿Director of the Bureau Bureau 

consider appropriate. 

* * * * * * * 

(e) PRIVACY AND CONFIDENTIALITY.—In establishing and main- taining the database described in subsection (a), the Secretary of 

Housing and Urban Development and the ¿Director of the Bureau

Bureau shall— 

(1) * * * 

* * * * * * * 


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SECTION 921 OF THE ELECTRONIC FUND TRANSFER 

ACT 

SEC. 921. REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS. 

(a) REASONABLE INTERCHANGE TRANSACTION FEES FOR ELECTRONIC DEBIT TRANSACTIONS.— 

(1) * * * 

* * * * * * * 

(4) CONSIDERATIONS; CONSULTATION.—In prescribing regula- tions under paragraph (3)(A), the Board shall— (A) * * * 

* * * * * * * 

(C) consult, as appropriate, with the Comptroller of the 

Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift 

Supervision, the National Credit Union Administration 

Board, the Administrator of the Small Business Administration, and the ¿Director of the Bureau of Consumer Financial Protection Bureau of Consumer Financial Protection. 

* * * * * * * 

EXPEDITED FUNDS AVAILABILITY ACT 

[Section 3(d) of H.R. 1121 provides for an amendment to the Expedited Funds Availability Act. Effective on the designated transfer date (as determined under section 

1062 of Public Law 111–203), such Act (as amended by such Public Law and the 

bill), reads as follows:] 

TITLE VI—EXPEDITED FUNDS 

AVAILABILITY 

SEC. 601. SHORT TITLE. 

This title may be cited as the ‘‘Expedited Funds Availability Act’’. 

* * * * * * * 

SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES. 

(a) * * * 

* * * * * * * 

(d) TIME PERIOD ADJUSTMENTS.— 

(1) REDUCTION GENERALLY.—Notwithstanding any other provision of law, the Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection, shall, by regulation, reduce the time periods established under subsections (b), (c), 

and (e) to as short a time as possible and equal to the period 

of time achievable under the improved check clearing system 

for a receiving depository institution to reasonably expect to 

learn of the nonpayment of most items for each category of 

checks. 

* * * * * * * 


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SEC. 604 SAFEGUARD EXCEPTIONS. 

(a) NEW ACCOUNTS.—Notwithstanding section 603, in the case of 

any account established at a depository institution by a new depositor, the following provisions shall apply with respect to any deposit 

in such account during the 30-day period (or such shorter period 

as the Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection, may establish) beginning on the date 

such account is established— 

(1) * * * 

* * * * * * * 

(b) LARGE OR REDEPOSITED CHECKS; REPEATED OVERDRAFTS.— 

The Board, jointly with the ¿Director of the Bureau of Consumer 

Financial Protection, may, by regulation, establish reasonable exceptions to any time limitation established under subsection (a)(2), 

(b), (c), or (e) of section 603 for— 

(1) * * * 

* * * * * * * 

(c) REASONABLE CAUSE EXCEPTION.— (1) IN GENERAL.—In accordance with regulations which the 

Board, jointly with the ¿Director of the Bureau of Consumer 

Financial Protection, shall prescribe, subsections (a)(2), (b), (c), 

and (e) of section 603 shall not apply with respect to any check 

deposited in an account at a depository institution if the receiving depository institution has reasonable cause to believe that 

the check is uncollectible from the originating depository institution. For purposes of the preceding sentence, reasonable 

cause to believe requires the existence of facts which would 

cause a well-grounded belief in the mind of a reasonable person. Such reasons shall be included in the notice required 

under sub-section (f). 

* * * * * * * 

(d) EMERGENCY CONDITIONS.—Subject to such regulations as the 

Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection, may prescribe, subsections (a)(2), (b), (c), and (e) 

of section 603 shall not apply to funds deposited by check in any 

receiving depository institution in the case of— 

(1) * * * 

* * * * * * * 

(e) PREVENTION OF FRAUD LOSSES.— 

(1) IN GENERAL.—The Board, jointly with the ¿Director of 

the Bureau of Consumer Financial Protection, may, by regulation or order, suspend the applicability of this title, or any portion thereof, to any classification of checks if the Board, jointly 

with the ¿Director of the Bureau of Consumer Financial Protection, determines that— 

(A) * * * 

* * * * * * * 

(3) REPORT TO CONGRESS.— 

(A) NOTICE OF EACH SUSPENSION.—Within 10 days of 

prescribing any regulation or issuing any order under 

paragraph (1), the Board, jointly with the ¿Director of the

Bureau of Consumer Financial Protection, shall transmit a 


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report of such action to the Committee on Banking, Finance and Urban Affairs of the House of Representatives 

and the Committee on Banking, Housing, and Urban Affairs of the Senate. 

(B) CONTENTS OF REPORT.—Each report under subparagraph (A) shall contain— (i) * * * 

(ii) evidence considered by the Board, jointly with 

the ¿Director of the Bureau of Consumer Financial 

Protection, in making the determination under paragraph (1) with respect to such regulation or order; and 

* * * * * * * 

(f) NOTICE OF EXCEPTION; AVAILABILITY WITHIN REASONABLE

TIME.— 

(1) IN GENERAL.—If any exception contained in this section 

(other than subsection (a)) applies with respect to funds deposited in an account at a depository institution— 

(A) * * * 

(B) except where other time periods are specifically provided in this title, the availability of the funds deposited 

shall be governed by the policy of the receiving depository 

institution, but shall not exceed a reasonable period of 

time as determined by the Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection. 

* * * * * * * 

(2) TIME FOR NOTICE.—The notice required under paragraph 

(1)(A) with respect to a deposit to which an exception contained 

in this section applies shall be made by the time provided in 

the following subparagraphs: 

(A) * * * 

* * * * * * * 

(C) In the case of a deposit to which subsection (d) or (e) 

applies, notice shall be provided by the depository institution in accordance with regulations of the Board, jointly 

with the ¿Director of the Bureau of Consumer Financial 

Protection. 

* * * * * * * 

SEC. 605. DISCLOSURE OF FUNDS AVAILABILITY POLICIES. 

(a) * * * 

(b) PREPRINTED DEPOSIT SLIPS.—All preprinted deposit slips that 

a depository institution furnishes to its customers shall contain a 

summary notice, as prescribed by the Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection, in regulations, that deposited items may not be available for immediate 

withdrawal. 

* * * * * * * 

(d) POSTING OF NOTICE.— (1) * * * 

(2) GENERAL NOTICE AT AUTOMATED TELLER MACHINES.—In 

the case of any automated teller machine at which any funds 

are received for deposit in an account at any depository institution, the Board, jointly with the ¿Director of the Bureau of 


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Consumer Financial Protection, shall prescribe, by regulations, 

that the owner or operator of such automated teller machine 

shall post or provide a general notice that funds deposited in 

such machine may not be immediately available for withdrawal. 

* * * * * * * 

(f) MODEL DISCLOSURE FORMS.— 

(1) PREPARED BY BOARD AND BUREAU.—The Board, jointly 

with the ¿Director of the Bureau of Consumer Financial Protection, shall publish model disclosure forms and clauses for 

common transactions to facilitate compliance with the disclosure requirements of this section and to aid customers by utilizing readily understandable language. 

(2) USE OF FORMS TO ACHIEVE COMPLIANCE.—A depository institution shall be deemed to be in compliance with the requirements of this section if such institution— 

(A) uses any appropriate model form or clause as published by the Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection, or 

* * * * * * * 

(3) VOLUNTARY USE.—Nothing in this title requires the use 

of any such model form or clause prescribed by the Board, 

jointly with the ¿Director of the Bureau of Consumer Financial Protection, under this subsection. 

(4) NOTICE AND COMMENT.—Model disclosure forms and 

clauses shall be adopted by the Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection, only 

after notice duly given in the Federal Register and an opportunity for public comment in accordance with section 553 of 

title 5, United States Code. 

* * * * * * * 

SEC. 609. REGULATIONS AND REPORTS BY BOARD. 

(a) IN GENERAL.—After notice and opportunity to submit comment in accordance with section 553(c) of title 5, United States 

Code, the Board, jointly with the ¿Director of the Bureau of Consumer Financial Protection, shall prescribe regulations— 

(1) * * * 

* * * * * * * 

(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. 

* * * * * * * 


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FEDERAL DEPOSIT INSURANCE ACT 

[Section 3(e) of H.R. 1121 provides for an amendment to section 2 of the Federal 

Deposit Insurance Act. Effective on the designated transfer date (as determined 

under section 1062 of Public Law 111–203), such Act (as amended by such Public 

Law and the bill), reads as follows:] 

* * * * * * * 

SEC. 2. MANAGEMENT. 

(a) BOARD OF DIRECTORS.— (1) IN GENERAL.—The management of the Corporation shall 

be vested in a Board of Directors consisting of 5 members— (A) * * * 

(B) 1 of whom shall be the ¿Director of the Consumer Financial Protection Bureau Chair of the Commission of the 

Bureau of Consumer Financial Protection; and 

* * * * * * * 

(d) VACANCY.— 

(1) * * * 

(2) ACTING OFFICIALS MAY SERVE.—In the event of a vacancy 

in the office of the Comptroller of the Currency or the office of 

¿Director of the Consumer Financial Protection Bureau Chair 

of the Commission of the Bureau of Consumer Financial Protection and pending the appointment of a successor, or during the 

absence or disability of the Comptroller of the Currency or the 

¿Director of the Consumer Financial Protection Bureau Chair 

of the Commission of the Bureau of Consumer Financial Protection, the acting Comptroller of the Currency or the acting ¿Director of the Consumer Financial Protection Bureau Chair of 

the Commission of the Bureau of Consumer Financial Protection, as the case may be, shall be a member of the Board of 

Directors in the place of the Comptroller or Director. 

* * * * * * * 

SECTION 1004 OF THE FEDERAL FINANCIAL 

INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978 

[Section 3(f) of H.R. 1121 provides for an amendment to section 1004(a)(4) of the 

Federal Financial Institutions Examination Council Act of 1978. Effective on the 

designated transfer date (as determined under section 1062 of Public Law 111– 

203), such Act (as amended by such Public Law and the bill), reads as follows:] 

ESTABLISHMENT OF THE COUNCIL

SEC. 1004. (a) There is established the Financial Institutions Examination Council which shall consist of— 

(1) * * * 

* * * * * * * 

(4) the ¿Director of the Consumer Financial Protection Bureau Chair of the Commission of the Bureau of Consumer Financial Protection, 

* * * * * * * 


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SECTION 513 OF THE FINANCIAL LITERACY AND 

EDUCATION IMPROVEMENT ACT 

SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION 

COMMISSION. 

(a) * * * 

* * * * * * * 

(c) MEMBERSHIP.— (1) COMPOSITION.—The Commission shall be composed of— 

(A) * * * 

* * * * * * * 

(C) the ¿Director Chair of the Commission of the Bureau of Consumer Financial Protection; and 

* * * * * * * 

(d) CHAIRPERSON.—The Secretary of the Treasury shall serve as 

the Chairperson. The ¿Director Chair of the Commission of the 

Bureau of Consumer Financial Protection shall serve as the Vice 

Chairman. 

* * * * * * * 

HOME MORTGAGE DISCLOSURE ACT OF 1975 

[Section 3(h) of H.R. 1121 provides for an amendment to section 307 of the Home 

Mortgage Disclosure Act of 1975. Effective on the designated transfer date (as determined under section 1062 of Public Law 111–203), such Act (as amended by 

such Public Law and the bill), reads as follows:] 

TITLE III—HOME MORTGAGE DISCLOSURE 

* * * * * * * 

SEC. 307. COMPLIANCE IMPROVEMENT METHODS. 

(a) IN GENERAL.— 

(1) CONSULTATION REQUIRED.—The ¿Director of the Bureau 

of Consumer Financial Protection 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. 

* * * * * * * 

(3) CONTRACTING AUTHORITY.—The ¿Director of the Bureau 

of Consumer Financial Protection 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 Bureau of Consumer Financial Protection shall recommend to the Committee on Banking, 

Housing, and Urban Affairs of the Senate and the Committee on 


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34 

Financial Services of the House of Representatives, such additional 

legislation as the ¿Director of the Bureau of Consumer Financial 

Protection Bureau of Consumer Financial Protection deems appropriate to carry out the purpose of this title. 

* * * * * * * 

INTERSTATE LAND SALES FULL DISCLOSURE ACT 

[Section 3(i) of H.R. 1121 provides for amendments to the Interstate Land Sales Full 

Disclosure Act. Effective on the designated transfer date (as determined under 

section 1062 of Public Law 111–203), such Act (as amended by such Public Law 

and the bill), reads as follows:] 

TITLE XIV—INTERSTATE LAND SALES 

SHORT TITLE

SEC. 1401. This title may be cited as the ‘‘Interstate Land 

Sales Full Disclosure Act.’’ 

DEFINITIONS

SEC. 1402. For the purposes of this title, the term— 

¿(1) ‘‘Secretary’’ means the Secretary of Housing and Urban 

Development;

(1) ‘‘Chair’’ means the Chair of the Commission of the Bureau 

of Consumer Financial Protection; 

* * * * * * * 

EXEMPTIONS

SEC. 1403. (a) * * * 

(b) Unless the method of disposition is adopted for the purpose 

of evasion of this title, the provisions requiring registration and 

disclosure (as specified in section 1404(a)(1) and sections 1405 

through 1408) shall not apply to— 

(1) * * * 

(2) the sale or lease of lots in a subdivision if, within the 

twelve-month period commencing on the date of the first sale 

or lease of a lot in such subdivision after the effective date of 

this subsection or on such other date within that twelve-month 

period as the ¿Director Bureau may prescribe, not more than 

twelve lots are sold or leased, and the sale or lease of the first 

twelve lots in such subdivision in any subsequent twelvemonth period, if not more than twelve lots have been sold or 

leased in any preceding twelve-month period after the effective 

date of this subsection; 

* * * * * * * 

(8) the sale or lease of a lot in a subdivision containing fewer 

than three hundred lots if— 

(A) * * * 

(B) the lot is free and clear of liens (such as mortgages, 

deeds of trust, tax liens, mechanics liens, or judgments) at 

the time of the signing of the contract or agreement and 

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pires. As used in this subparagraph, the term ‘‘liens’’ does 

not include (i) United States land patents and similar Federal grants or reservations, (ii) property reservations 

which lands developers commonly convey or dedicate to 

local bodies or public utilities for the purpose of bringing 

public services to the land being developed, (iii) taxes and 

assessments imposed by a State, by any other public body 

having authority to assess and tax property, or by a property owners’ association, which, under applicable State or 

local law, constitute liens on the property before they are 

due and payable or beneficial property restrictions which 

would be enforceable by other lot owners or lessees in the 

subdivision, or (iv) other interests described in regulations 

prescribed by the ¿Director Bureau; 

* * * * * * * 

(G) the developer executes a written affirmation to the 

effect that he has complied with the provisions of this 

paragraph, such affirmation to be given on a form provided 

by the ¿Director Bureau, which shall include the following: the name and address of the developer; the name 

and address of the purchaser or lessee; a legal description 

of the lot; and affirmation that the provisions of this paragraph have been complied with; a statement that the developer submits to the jurisdiction of this title with regard 

to the sale of lease; and the signature of the developer. (c) The ¿Director Bureau may from time to time, pursuant to rules and regulations issued by him, exempt from any of the provisions of this title any subdivision or any lots in a subdivision, if he 

finds that the enforcement of this title with respect to such subdivision or lots is not necessary in the public interest and for the protection of purchasers by reason of the small amount involved or the 

limited character of the public offering. 

* * * * * * * 

REGISTRATION OF SUBDIVISIONS

SEC. 1405. (a) A subdivision may be registered by filing with the 

¿Director Bureau a statement of record, meeting the requirements of this title and such rules and regulations as may be prescribed 

by the ¿Director Bureau in furtherance of the provisions of this 

title. A statement of record shall be deemed effective only as to the 

lots specified therein. (b) At the time of filing a statement of record, or any amendment thereto, the developer shall pay to the ¿Director Bureau a fee, not 

in excess of $1,000, in accordance with a schedule to be fixed by 

the regulations of the ¿Director Bureau, which fees may be used by the ¿Director Bureau to cover all or part of the cost of rendering services under this title, and such expenses as are paid from 

such fees shall be considered non-administrative. 

(c) The filing with the ¿Director Bureau of a statement of 

record, or of an amendment thereto, shall be deemed to have taken 

place upon the receipt thereof, accompanied by payment of the fee 

required by subsection (b). (d) The information contained in or filed with any statement of 

record shall be made available to the public under such regulations 


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as the ¿Director Bureau may prescribe and copies thereof shall be furnished to every applicant at such reasonable charge as the ¿Director Bureau may prescribe. 

INFORMATION REQUIRED IN STATEMENT OF RECORD

SEC. 1406. The statement of record shall contain the information 

and be accompanied by the documents specified hereinafter in this 

section— 

(1) * * * 

* * * * * * * 

(11) such certified and uncertified financial statements of the 

developer as the ¿Director Bureau may require; and (12) such other information and such other documents and 

certifications as the ¿Director Bureau may require as being reasonably necessary or appropriate for the protection of purchasers. 

TAKING EFFECT OF STATEMENTS OF RECORD AND AMENDMENTS

THERETO

SEC. 1407. (a) Except as hereinafter provided, the effective date 

of a statement of record, or any amendment thereto, shall be the 

thirtieth day after the filing thereof or such earlier date as the ¿Director Bureau may determine, having due regard to the public in- terest and the protection of purchaser. If any amendment to any 

such statement is filed prior to the effective date of the statement, 

the statement shall be deemed to have been filed when such 

amendment was filed; except that such an amendment filed with 

the consent of the Secertary, or filed pursuant to an order of the 

¿Director Bureau, shall be treated as being filed as of the date of the filing of the statement of record. When a developer records additional lands to be offered for disposition, he may consolidate the 

subsequent statement of record with any earlier recording offering 

subdivided land for disposition under the same promotional plan. 

At the time of consolidation the developer shall include in the consolidated statement of record any material changes in the information contained in the earlier statement. 

(b) If it appears to the ¿Director Bureau that a statement of 

record, or any amendment thereto, is on its face incomplete or inaccurate in any material respect, the ¿Director Bureau shall so advise the developer within a reasonable time after the filing of the 

statement or the amendment, but prior to the date the statement 

or amendment would otherwise be effective. Such notification shall 

serve to suspend the effective date of the statement or the amendment until thirty days after the developer files such additional information as the ¿Director Bureau shall require. Any developer, 

upon receipt of such notice, may request a hearing, and such hearing shall be held within twenty days of receipt of such request by 

the ¿Director Bureau. (c) If, at any time subsequent to the effective date of a statement 

or record, a change shall occur affecting any material fact required 

to be contained in the statement, the developer shall promptly file 

an amendment thereto. Upon receipt of any such amendment, the 

¿Director Bureau may, if he determines such action to be necessary or appropriate in the public interest or for the protection of 


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purchasers, suspend the statement of record until the amendment 

becomes effective. 

(d) If it appears to the ¿Director Bureau at any time that a 

statement of record, which is in effect, includes any untrue statement of a material fact or omits to state any material fact required 

to be stated therein or necessary to make the statements therein 

not misleading, the ¿Director Bureau may, after notice, and after 

opportunity for hearing (at a time fixed by the ¿Director Bureau) 

within fifteen days after such notice, issue an order suspending the 

statement of record. When such statement has been amended in accordance with such order, the ¿Director Bureau shall so declare 

and thereupon the order shall cease to be effective. 

(e) The ¿Director Bureau is hereby empowered to make an examination in any case to determine whether an order should issue 

under subsection (d). In making such examination, the ¿Director

Bureau or anyone designated by him shall have access to and may 

demand the production of any books and papers of, and many administer oaths and affirmations to and examine, the developer, any 

agents, or any other person, in respect of any matter relevant to 

the examination. If the developer or any agents shall fail to cooperate, or shall obstruct or refuse to permit the making of an examination, such conduct shall be proper ground for the issuance of an 

order suspending the statement of record. 

* * * * * * * 

INFORMATION REQUIRED IN PROPERTY REPORT

SEC. 1408. (a) A property report relating to the lots in a subdivision shall contain such of the information contained in the statement of record, and any amendments thereto, as the ¿Director

Bureau may deem necessary, but need not include the documents 

referred to in paragraphs (7) to (11), inclusive, of section 1406. A 

property report shall also contain such other information as the 

¿Director Bureau may by rules or regulations require as being 

necessary or appropriate in the public interest or for the protection 

of purchasers. 

(b) The property report shall not be used for any promotional 

purposes before the statement of record becomes effective and then 

only if it is used in its entirety. No person may advertise or represent that the ¿Director Bureau approves or recommends the 

subdivision or the sale or lease of lots therein. No portion of the 

property report shall be underscored, italicized, or printed in larger, or bolder type than the balance of the statement unless the ¿Director Bureau requires or permits it. 

CERTIFICATION OF SUBSTANTIALLY EQUIVALENT STATE LAW

SEC. 1409. (a)(1) A State shall be certified if the ¿Director Bureau determines— 

(A) * * * 

* * * * * * * 

(2) In the case of any State which is not certified under paragraph (1), such State shall be certified if the ¿Director Bureau determines— 


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(A) * * * 

* * * * * * * 

(b) After the ¿Director Bureau has certified a State under subsection (a), the ¿Director Bureau shall accept for filing under sec- tions 1405 through 1408 (and declare effective as the Federal statement of record and property report which shall be used in all 

States in which the lots are offered for sale or lease) disclosure materials found acceptable, and any related documentation required, 

by State authorities in connection with the sale or lease of lots located within the State. The ¿Director Bureau may accept for such filing, and declare effective as the Federal statement of record and 

property report, such materials and documentation found acceptable by the State in connection with the sale or lease of lots located 

outside that State. Nothing in this subsection shall preclude the 

¿Director Bureau from exercising the authority conferred by sub- sections (d) and (e) of section 1407. 

(c) If a State fails to meet the standards for certification pursu- ant to subsection (a), the ¿Director Bureau shall notify the State in writing of the changes in State law, regulation, or administration that are needed in order to obtain certification. 

(d) The ¿Director Bureau shall periodically review the laws and regulations, and the administration thereof, of States certified 

under subsection (a), and may withdraw such certification upon a 

determination that such laws, regulations, and the administration 

thereof, taken as a whole, no longer meet the requirements of subsection (a). 

(e) Nothing in this title may be construed to prevent or limit the authority of any State or local government to enact and enforce 

with regard to the sale of land any law, ordinance, or code not in 

conflict with this title. In administering this title, the ¿Director

Bureau shall cooperate with State authorities charged with the re- sponsibility of regulating the sale or lease of lots which are subject 

to this title. 

* * * * * * * 

COURT REVIEW OF ORDERS

SEC. 1411. (a) Any person, aggrieved by an order or determina- tion of the ¿Director Bureau issued after a hearing, may obtain a review of such order or determination in the court of appeals of 

the United States, within any circuit wherein such person resides 

or has his principal place of business, or in the United States Court 

of Appeals for the District of Columbia, by filing in such court, 

within sixty days after the entry of such order or determination, a 

written petition praying that the order or determination of the ¿Director Bureau be modified or be set aside in whole or in part. A 

copy of such petition shall be forthwith transmitted by the clerk of 

the court to the ¿Director Bureau, and thereupon the ¿Director

Bureau shall file in the court the record upon which the order or 

determination complained of was entered, as provided in section 

2112 of title 28, United States Code. No objection to an order or 

determination of the ¿Director Bureau shall be considered by the 

court unless such objection shall have been urged before the ¿Director Bureau. The finding of the ¿Director Bureau as to the 

facts, if supported by substantial evidence, shall be conclusive. If 


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either party shall apply to the court for leave to adduce additional 

evidence, and shall show to the satisfaction of the court that such 

additional evidence is material and that there were reasonable 

grounds for failure to adduce such evidence in the hearing before 

the ¿Director Bureau, the court may order such additional evidence to be taken before the ¿Director Bureau and to be adduced 

upon a hearing in such manner and upon such terms and conditions as to the court may seem proper. The ¿Director Bureau may 

modify his findings as to the facts by reason of the additional evidence so taken, and shall file such modified or new findings, which, 

if supported by substantial evidence, shall be conclusive, and his 

recommendation, if any, for the modification or setting aside of the 

original order. Upon the filing of such petition, the jurisdiction of 

the court shall be exclusive and its judgment and decree, affirming, 

modifying, or setting aside, in whole or in part, any order of the 

¿Director Bureau, shall be final, subject to review by the Supreme 

Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. 

* * * * * * * 

CONTRARY STIPULATION VOID

SEC. 1413. Any condition, stipulation, or provision binding any 

person acquiring any lot in a subdivision to waive compliance with 

any provision of this title of the rules and regulations of the ¿Director Bureau shall be void. 

* * * * * * * 

INVESTIGATIONS, INJUNCTIONS, AND PROSECUTION OF OFFENSES

SEC. 1415. (a) Whenever it shall appear to the ¿Director Bureau 

that any person is engaged or about to engage in any acts or practices which constitute or will constitute a violation of the provisions 

of this title, or of any rule or regulation prescribed pursuant thereto, he may, in his discretion, bring an action in any district court 

of the United States, or the United States District Court for the 

District of Columbia to enjoin such acts or practices, and, upon a 

proper showing, a permanent or temporary injunction or restraining order shall be granted without bond. The ¿Director Bureau 

may transmit such evidence as may be available concerning such 

acts or practices to the Attorney General who may, in his discretion, institute the appropriate criminal proceedings under this title. 

(b) The ¿Director Bureau may, in his discretion, make such investigations as he deems necessary to determine whether any person has violated or is about to violate any provision of this title or 

any rule or regulation prescribed pursuant thereto, and may require or permit any person to file with him a statement in writing, 

under oath or otherwise as the ¿Director Bureau shall determine, 

as to all the facts and circumstances concerning the matter to be 

investigated. The ¿Director Bureau is authorized, in his discretion, to publish information concerning any such violations, and to 

investigate any facts, conditions, practices, or matters whcih he 

may deem necessary or proper to aid in the enforcement of the provisions of this title, in the prescribing of rules and regulations 

thereunder or in securing information to service as a basis for recVerDate Mar 15 2010 07:02 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00039 Fmt 6659 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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ommending further legislation concerning the matters to which this 

title relates. 

(c) For the purpose of any such investigation, or any other proceeding under this title, the ¿Director Bureau, or any officer designated by him, is empowered to administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, 

and require the production of any books, papers, correspondence, 

memorandums, or other records which the ¿Director Bureau 

deems relevant or material to the inquiry. Such attendance of witnesses and the production of any such records may be required 

from any place in the United States or any State at any designated 

place of hearing. 

(d) In case of contumacy by, or refusal to obey a subpena issued 

to, any person, the ¿Director Bureau may invoke the aid of any 

court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memorandums, and other records and documents. And such 

court may issue an order requiring such person to appear before 

the ¿Director Bureau or any officer designated by the ¿Director

Bureau, there to produce records, if so ordered, or to give testimony 

touching the matter under investigation or in question; and any 

failure to obey such order of the court may be punished by such 

court as a contempt thereof. All process in any such case may be 

served in the judicial district whereof such person is an inhabitant 

or wherever he may be found. 

ADMINISTRATION

SEC. 1416. (a) The authority and responsibility for administering 

this title shall be in the ¿Director of the Bureau of Consumer Financial Protection Chair who may delegate any of his functions, 

duties, and powers to employees of the Bureau of Consumer Financial Protection or to boards of such employees including functions, 

duties, and powers with respect to investigating, hearing, determining, ordering, or otherwise acting as to any work, business, or 

matter under this title. The persons to whom such delegations are 

made with respect to hearing functions, duties, and powers shall be 

appointed and shall serve in the Bureau in compliance with sections 3105, 3344, 5372, and 7521 of title 5 of the United States 

Code. The ¿Director Bureau shall by rule prescribed such rights 

of appeal from the decisions of his administrative law judges to 

other administrative law judges or to other officers in the Bureau, 

to boards of officers or to himself, as shall be apropriate and in accordance with law. 

* * * * * * * 

(c) The ¿Director Bureau shall conduct all actions with respect 

to rulemaking or adjudication under this title in accordance with 

the provisions of chapter 5 of title 5, United States Code. Notice 

shall be given of any adverse action or final disposition and such 

notice and the entry of any order shall be accompanied by a written 

statement of supporting facts and legal authority. 


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UNLAWFUL REPRESENTATIONS

SEC. 1417. The fact that a statement of record with respect to a 

subdivision has been filed or is in effect shall not be deemed a finding by the ¿Director Bureau that the statement of record is true 

and accurate on its face, or be held to mean the ¿Director Bureau 

has in any way passed upon the merits of, or given approval to, 

such subdivision. It shall be unlawful to make, or cause to be 

made, to any prospective purchaser any representation contrary to 

the foregoing. 

* * * * * * * 

CIVIL MONEY PENALTIES

SEC. 1418a. (a) IN GENERAL.— (1) AUTHORITY.—Whenever any person knowingly and mate- rially violates any of the provisions of this title or any rule, 

regulation, or order issued under this title, the ¿Director Bureau may impose a civil money penalty on such person in ac- cordance with the provisions of this section. The penalty shall 

be in addition to any other available civil remedy or any available criminal penalty, and may be imposed whether or not the 

¿Director Bureau imposes other administrative sanctions. (2) AMOUNT OF PENALTY.—The amount of the penalty, as de- termined by the ¿Director Bureau, may not exceed $1,000 for each violation, except that the maximum penalty for all violations by a particular person during any 1–year period shall not 

exceed $1,000,000. Each violation of this title, or any rule, regulation, or order issued under this title, shall constitute a separate violation with respect to each sale or lease or offer to sell 

or lease. In the case of a continuing violation, as determined 

by the ¿Director Bureau, each day shall constitute a separate violation. 

(b) AGENCY PROCEDURES.— (1) ESTABLISHMENT.—The ¿Director Bureau shall establish 

standards and procedures governing the imposition of civil 

money penalties under subsection (a). The standards and procedures— 

(A) * * * 

(B) may provide for review by the ¿Director Bureau of 

any determination or order, or interlocutory ruling, arising 

from a hearing. 

(2) FINAL ORDERS.—If no hearing is requested within 15 days 

of receipt of the notice of opportunity for hearing, the imposition of the penalty shall constitute a final and unappealable 

determination. If the ¿Director Bureau reviews the determination or order, the ¿Director Bureau may affirm, modify, 

or reverse that determination or order. If the ¿Director Bureau does not review the determination or order within 90 days 

of the issuance of the determination or order, the determination or order shall be final. 

(3) FACTORS IN DETERMINING AMOUNT OF PENALTY.—In determining the amount of a penalty under subsection (a), consideration shall be given to such factors as the gravity of the offense, any history of prior offenses (including offenses occurring before enactment of this section), ability to pay the penVerDate Mar 15 2010 07:02 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00041 Fmt 6659 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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alty, injury to the public, benefits received, deterrence of future 

violations, and such other factors as the ¿Director Bureau 

may determine in regulations to be appropriate. 

* * * * * * * 

(c) JUDICIAL REVIEW OF AGENCY DETERMINATION.— (1) IN GENERAL.—After exhausting all administrative rem- edies established by the ¿Director Bureau under subsection 

(b)(1), a person aggrieved by a final order of the ¿Director Bureau assessing a penalty under this section may seek judicial 

review pursuant to section 1411. (2) ORDER TO PAY PENALTY.—Notwithstanding any other pro- vision of law, in any such review, the court shall have the 

power to order payment of the penalty imposed by the ¿Director Bureau. (d) ACTION TO COLLECT PENALTY.—If any person fails to comply with the determination or order of the ¿Director Bureau imposing a civil money penalty under subsection (a), after the determination 

or order is no longer subject to review as provided by subsections 

(b) and (c), the ¿Director Bureau may request the Attorney Gen- eral of the United States to bring an action in any appropriate 

United States district court to obtain a monetary judgment against 

the person and such other relief as may be available. The monetary 

judgment may, in the discretion of the court, include any attorneys 

fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the Secretary’s determination or order 

imposing the penalty shall not be subject to review. (e) SETTLEMENT BY SECRETARY.—The ¿Director Bureau may compromise, modify, or remit any civil money penalty which may 

be, or has been, imposed under this section. 

* * * * * * * 

(g) REGULATIONS.—The ¿Director Bureau shall issue such regu- lations as the ¿Director Bureau deems appropriate to implement 

this section. 

(h) USE OF PENALTIES FOR ADMINISTRATION.—Civil money pen- alties collected under this section shall be paid to the Secretary 

and, upon approval in an appropriation Act, may be used by the 

¿Director Bureau to cover all or part of the cost of rendering serv- ices under this title. 

SEC. 1419. The ¿Director Bureau shall have authority from time to time to make, issue, amend, and rescind such rules and regulations and such orders as are necessary or appropriate to the exercise of the functions and powers conferred upon him elsewhere in 

this title. For the purpose of his rules and regulations, the ¿Director Bureau may classify persons and matters within his jurisdic- tion and prescribe different requirements for different classes of 

persons or matters. 

JURISDICTION OF OFFENSES AND SUITS

SEC. 1420. The district courts of the United States, the United 

States courts of any territory, and the United States District Court 

for the District of Columbia shall have jurisdiction of offenses and 

violations under this title and under the this title and under the 

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ant thereto, and concurrent with State courts, of all suits in equity 

and actions at law brought to enforce any liability or duty created 

by this title. Any such suit or action may be brought to enforce any 

liability or duty created by this title. Any such suit or action may 

be brought in the district where the defendant is found or is an inhabitant or transacts business, or in the district where the offer or 

sale took place, if the defendant participated therein, and process 

in such cases may be served in any other district of which the defendant is an inhabitant or wherever the defendant may be found. 

Judgments and decrees so rendered shall be subject to review as 

provided in sections 1254 and 1291 of title 28, United State Code. 

No case arising under this title and brought in any State court of 

competent jurisdiction shall be removed to any court of the United 

States, except where the United States or any officer or employee 

of the United States in his official capacity is a party. No costs 

shall be assessed for or against the ¿Director Bureau in any pro- ceeding under this title brought by or against him in the Supreme 

Court or such other courts. 

* * * * * * * 

REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 

[Section 3(j) of H.R. 1121 provides for amendments to section 5 of the Real Estate Settlement Procedures Act of 1974. Effective on the designated transfer date (as 

determined under section 1062 of Public Law 111–203), such Act (as amended by 

such Public Law and the bill), reads as follows:] 

* * * * * * * 

HOME BUYING INFORMATION BOOKLETS

SEC. 5. (a) PREPARATION AND DISTRIBUTION.—¿The Director of 

the Bureau of Consumer Financial Protection (hereafter in this section referred to as the ‘‘Director’’) The Bureau of Consumer Financial Protection shall prepare, at least once every 5 years, a booklet to help consumers applying for federally related mortgage loans to 

understand the nature and costs of real estate settlement services. 

The ¿Director Bureau shall prepare the booklet in various languages and cultural styles, as the ¿Director Bureau determines to 

be appropriate, so that the booklet is understandable and accessible to homebuyers of different ethnic and cultural backgrounds. 

The ¿Director Bureau shall distribute such booklets to all lenders 

that make federally related mortgage loans. The ¿Director Bureau 

shall also distribute to such lenders lists, organized by location, of 

homeownership counselors certified under section 106(e) of the 

Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)) 

for use in complying with the requirement under subsection (c) of 

this section. 

(b) CONTENTS.—Each booklet shall be in such form and detail as 

the ¿Director Bureau shall prescribe and, in addition to such 

other information as the ¿Director Bureau may provide, shall include in plain and understandable language the following information: 

(1) * * * 

* * * * * * * 


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(6) A brief explanation of the nature of a variable rate mortgage and a reference to the booklet entitled ‘‘Consumer Handbook on Adjustable Rate Mortgages’’, published by the ¿Director Bureau, or to any suitable substitute of such booklet that 

the ¿Director Bureau may subsequently adopt pursuant to 

such section. 

* * * * * * * 

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

[Section 3(k) of H.R. 1121 provides for an amendments to the S.A.F.E. Mortgage Licensing Act of 2008. Effective on the designated transfer date (as determined 

under section 1062 of Public Law 111–203), such Act (as amended by such Public 

Law and the bill), reads as follows:] 

TITLE V—S.A.F.E. MORTGAGE 

LICENSING ACT 

SEC. 1501. SHORT TITLE. 

This title may be cited as the ‘‘Secure and Fair Enforcement for 

Mortgage Licensing Act of 2008’’ or ‘‘S.A.F.E. Mortgage Licensing 

Act of 2008’’. 

* * * * * * * 

SEC. 1503. DEFINITIONS. 

For purposes of this title, the following definitions shall apply: 

(1) * * * 

* * * * * * * 

(6) NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY.—The term ‘‘Nationwide Mortgage Licensing System and 

Registry’’ means a mortgage licensing system developed and 

maintained by the Conference of State Bank Supervisors and 

the American Association of Residential Mortgage Regulators 

for the State licensing and registration of State-licensed loan 

originators and the registration of registered loan originators 

or any system established by the ¿Director Bureau under section 1509. 

* * * * * * * 

¿(10) DIRECTOR.—The term ‘‘Director’’ means the Director of 

the Bureau of Consumer Financial Protection.

* * * * * * * 

(12) STATE-LICENSED LOAN ORIGINATOR.—The term ‘‘State-licensed loan originator’’ means any individual who— 

(A) * * * 

* * * * * * * 

(C) is licensed by a State or by the ¿Director Bureau 

under section 1508 and registered as a loan originator 

with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry. 

* * * * * * * 


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SEC. 1508. BUREAU OF CONSUMER FINANCIAL PROTECTION BACKUP 

AUTHORITY TO ESTABLISH LOAN ORIGINATOR LICENSING SYSTEM. 

(a) BACKUP LICENSING SYSTEM.—If, by the end of the 1-year pe- riod, or the 2-year period in the case of a State whose legislature 

meets only biennially, beginning on the date of the enactment of 

this title or at any time thereafter, the ¿Director Bureau determines that a State does not have in place by law or regulation a 

system for licensing and registering loan originators that meets the 

requirements of sections 1505 and 1506 and subsection (d) of this 

section, or does not participate in the Nationwide Mortgage Licensing System and Registry, the ¿Director Bureau shall provide for 

the establishment and maintenance of a system for the licensing 

and registration by the ¿Director Bureau of loan originators oper- ating in such State as State-licensed loan originators. (b) LICENSING AND REGISTRATION REQUIREMENTS.—The system established by the ¿Director Bureau under subsection (a) for any State shall meet the requirements of sections 1505 and 1506 for 

State-licensed loan originators. (c) UNIQUE IDENTIFIER.—The ¿Director Bureau shall coordinate 

with the Nationwide Mortgage Licensing System and Registry to 

establish protocols for assigning a unique identifier to each loan 

originator licensed by the ¿Director Bureau as a State-licensed 

loan originator that will facilitate electronic tracking and uniform 

identification of, and public access to, the employment history of 

and the publicly adjudicated disciplinary and enforcement actions 

against loan originators. 

(d) STATE LICENSING LAW REQUIREMENTS.—For purposes of this 

section, the law in effect in a State meets the requirements of this 

subsection if the ¿Director Bureau determines the law satisfies 

the following minimum requirements: 

(1) * * * 

* * * * * * * 

(e) TEMPORARY EXTENSION OF PERIOD.—The ¿Director Bureau 

may extend, by not more than 24 months, the 1-year or 2-year period, as the case may be, referred to in subsection (a) for the licensing of loan originators in any State under a State licensing law 

that meets the requirements of sections 1505 and 1506 and subsection (d) if the ¿Director Bureau determines that such State is 

making a good faith effort to establish a State licensing law that 

meets such requirements, license mortgage originators under such 

law, and register such originators with the Nationwide Mortgage 

Licensing System and Registry. 

* * * * * * * 

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

If at any time the ¿Director Bureau determines that the Nationwide Mortgage Licensing System and Registry is failing to meet 

the requirements and purposes of this title for a comprehensive licensing, supervisory, and tracking system for loan originators, the 

¿Director Bureau shall establish and maintain such a system to 

carry out the purposes of this title and the effective registration 

and regulation of loan originators. 

* * * * * * * 


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SEC. 1512. CONFIDENTIALITY OF INFORMATION. 

(a) SYSTEM CONFIDENTIALITY.—Except as otherwise provided in 

this section, any requirement under Federal or State law regarding 

the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry 

or a system established by the ¿Director Bureau under section 

1509, and any privilege arising under Federal or State law (including the rules of any Federal or State court) with respect to such 

information or material, shall continue to apply to such information 

or material after the information or material has been disclosed to 

the system. Such information and material may be shared with all 

State and Federal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by Federal and State laws. 

* * * * * * * 

(b) NONAPPLICABILITY OF CERTAIN REQUIREMENTS.—Information 

or material that is subject to a privilege or confidentiality under 

subsection (a) shall not be subject to— 

(1) * * * 

(2) subpoena or discovery, or admission into evidence, in any 

private civil action or administrative process, unless with respect to any privilege held by the Nationwide Mortgage Licensing System and Registry or the ¿Director Bureau with respect 

to such information or material, the person to whom such information or material pertains waives, in whole or in part, in 

the discretion of such person, that privilege. 

* * * * * * * 

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 Bureau under section 1509, or any officer or employee of any such entity, shall not be subject to any civil action or proceeding for monetary damages by reason of the good faith action or omission of any 

officer or employee of any such entity, while acting within the 

scope of office or employment, relating to the collection, furnishing, 

or dissemination of information concerning persons who are loan 

originators or are applying for licensing or registration as loan 

originators. 

SEC. 1514. ENFORCEMENT UNDER HUD BACKUP LICENSING SYSTEM. 

(a) SUMMONS AUTHORITY.—The ¿Director Bureau may— 

(1) examine any books, papers, records, or other data of any 

loan originator operating in any State which is subject to a licensing system established by the ¿Director Bureau under 

section 1508; and 

(2) summon any loan originator referred to in paragraph (1) 

or any person having possession, custody, or care of the reports 

and records relating to such loan originator, to appear before 

the ¿Director Bureau or any delegate of the ¿Director Bureau at a time and place named in the summons and to 

produce such books, papers, records, or other data, and to give 

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vestigation of such loan originator for compliance with the requirements of this title. 

(b) EXAMINATION AUTHORITY.— (1) IN GENERAL.—If the ¿Director Bureau establishes a licensing system under section 1508 for any State, the ¿Director Bureau shall appoint examiners for the purposes of administering such section. (2) POWER TO EXAMINE.—Any examiner appointed under paragraph (1) shall have power, on behalf of the ¿Director

Bureau, to make any examination of any loan originator operating in any State which is subject to a licensing system established by the ¿Director Bureau under section 1508 whenever 

the ¿Director Bureau determines an examination of any loan 

originator is necessary to determine the compliance by the 

originator with this title. (3) REPORT OF EXAMINATION.—Each examiner appointed 

under paragraph (1) shall make a full and detailed report of 

examination of any loan originator examined to the ¿Director

Bureau. (4) ADMINISTRATION OF OATHS AND AFFIRMATIONS; EVI- DENCE.—In connection with examinations of loan originators 

operating in any State which is subject to a licensing system 

established by the ¿Director Bureau under section 1508, or 

with other types of investigations to determine compliance 

with applicable law and regulations, the ¿Director Bureau 

and examiners appointed by the ¿Director Bureau may administer oaths and affirmations and examine and take and 

preserve testimony under oath as to any matter in respect to 

the affairs of any such loan originator. (5) ASSESSMENTS.—The cost of conducting any examination 

of any loan originator operating in any State which is subject 

to a licensing system established by the ¿Director Bureau 

under section 1508 shall be assessed by the ¿Director Bureau 

against the loan originator to meet the Secretary’s expenses in 

carrying out such examination. 

(c) CEASE AND DESIST PROCEEDING.— (1) AUTHORITY OF SECRETARY.—If the ¿Director Bureau 

finds, after notice and opportunity for hearing, that any person 

is violating, has violated, or is about to violate any provision 

of this title, or any regulation thereunder, with respect to a 

State which is subject to a licensing system established by the 

¿Director Bureau under section 1508, the ¿Director Bureau 

may publish such findings and enter an order requiring such 

person, and any other person that is, was, or would be a cause 

of the violation, due to an act or omission the person knew or 

should have known would contribute to such violation, to cease 

and desist from committing or causing such violation and any 

future violation of the same provision, rule, or regulation. Such 

order may, in addition to requiring a person to cease and desist 

from committing or causing a violation, require such person to 

comply, or to take steps to effect compliance, with such provision or regulation, upon such terms and conditions and within 

such time as the ¿Director Bureau may specify in such order. 

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pliance, either permanently or for such period of time as the 

¿Director Bureau may specify, with such provision or regulation with respect to any loan originator. (2) HEARING.—The notice instituting proceedings pursuant to paragraph (1) shall fix a hearing date not earlier than 30 days 

nor later than 60 days after service of the notice unless an earlier or a later date is set by the ¿Director Bureau with the 

consent of any respondent so served. (3) TEMPORARY ORDER.—Whenever the ¿Director Bureau 

determines that the alleged violation or threatened violation 

specified in the notice instituting proceedings pursuant to 

paragraph (1), or the continuation thereof, is likely to result in 

significant dissipation or conversion of assets, significant harm 

to consumers, or substantial harm to the public interest prior 

to the completion of the proceedings, the ¿Director Bureau 

may enter a temporary order requiring the respondent to cease 

and desist from the violation or threatened violation and to 

take such action to prevent the violation or threatened violation and to prevent dissipation or conversion of assets, significant harm to consumers, or substantial harm to the public interest as the ¿Director Bureau deems appropriate pending 

completion of such proceedings. Such an order shall be entered 

only after notice and opportunity for a hearing, unless the ¿Director Bureau determines that notice and hearing prior to 

entry would be impracticable or contrary to the public interest. 

A temporary order shall become effective upon service upon the 

respondent and, unless set aside, limited, or suspended by the 

¿Director Bureau or a court of competent jurisdiction, shall 

remain effective and enforceable pending the completion of the 

proceedings. (4) REVIEW OF TEMPORARY ORDERS.— (A) REVIEW BY SECRETARY.—At any time after the respondent has been served with a temporary cease and desist order pursuant to paragraph (3), the respondent may 

apply to the ¿Director Bureau to have the order set aside, 

limited, or suspended. If the respondent has been served 

with a temporary cease and desist order entered without 

a prior hearing before the ¿Director Bureau, the respondent may, within 10 days after the date on which the order 

was served, request a hearing on such application and the 

shall hold a hearing and render a decision on such application at the earliest possible time. 

(B) JUDICIAL REVIEW.—Within— 

(i) 10 days after the date the respondent was served 

with a temporary cease and desist order entered with 

a prior hearing before the ¿Director Bureau; or 

(ii) 10 days after the ¿Director Bureau renders a 

decision on an application and hearing under paragraph (1), with respect to any temporary cease and desist order entered without a prior hearing before the 

¿Director Bureau, the respondent may apply to the United States district 

court for the district in which the respondent resides or 

has its principal place of business, or for the District of Columbia, for an order setting aside, limiting, or suspending 


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the effectiveness or enforcement of the order, and the court 

shall have jurisdiction to enter such an order. A respondent served with a temporary cease and desist order entered without a prior hearing before the ¿Director Bureau 

may not apply to the court except after hearing and decision by the ¿Director Bureau on the respondent’s application under subparagraph (A). 

* * * * * * * 

(5) AUTHORITY OF THE SECRETARY TO PROHIBIT PERSONS

FROM SERVING AS LOAN ORIGINATORS.—In any cease and desist 

proceeding under paragraph (1), the ¿Director Bureau may 

issue an order to prohibit, conditionally or unconditionally, and 

permanently or for such period of time as the ¿Director Bureau shall determine, any person who has violated this title or 

regulations thereunder, from acting as a loan originator if the 

conduct of that person demonstrates unfitness to serve as a 

loan originator. 

(d) AUTHORITY OF THE ¿DIRECTOR BUREAU TO ASSESS MONEY

PENALTIES.— 

(1) IN GENERAL.—The ¿Director Bureau may impose a civil 

penalty on a loan originator operating in any State which is 

subject to a licensing system established by the ¿Director Bureau under section 1508, if the ¿Director Bureau finds, on the 

record after notice and opportunity for hearing, that such loan 

originator has violated or failed to comply with any requirement of this title or any regulation prescribed by the ¿Director Bureau under this title or order issued under subsection 

(c). 

* * * * * * * 

SEC. 1516. REPORTS AND RECOMMENDATIONS TO CONGRESS. 

(a) ANNUAL REPORTS.—Not later than 1 year after the date of enactment of this title, and annually thereafter, the ¿Director Bureau shall submit a report to Congress on the effectiveness of the 

provisions of this title, including legislative recommendations, if 

any, for strengthening consumer protections, enhancing examination standards, streamlining communication between all stakeholders involved in residential mortgage loan origination and processing, and establishing performance based bonding requirements 

for mortgage originators or institutions that employ such brokers. 

(b) LEGISLATIVE RECOMMENDATIONS.—Not later than 6 months 

after the date of enactment of this title, the ¿Director Bureau 

shall make recommendations to Congress on legislative reforms to 

the Real Estate Settlement Procedures Act of 1974, that the ¿Director Bureau deems appropriate to promote more transparent 

disclosures, allowing consumers to better shop and compare mortgage loan terms and settlement costs. 

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

(a) STUDY REQUIRED.—The ¿Director Bureau shall conduct an 

extensive study of the root causes of default and foreclosure of 

home loans, using as much empirical data as is available. (b) PRELIMINARY REPORT TO CONGRESS.—Not later than 6 

months after the date of enactment of this title, the ¿Director BuVerDate Mar 15 2010 07:02 Jun 17, 2011 Jkt 099006 PO 00000 Frm 00049 Fmt 6659 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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reau shall submit to Congress a preliminary report regarding the 

study required by this section. (c) FINAL REPORT TO CONGRESS.—Not later than 12 months after 

the date of enactment of this title, the ¿Director Bureau shall submit to Congress a final report regarding the results of the study required by this section, which shall include any recommended legislation relating to the study, and recommendations for best practices 

and for a process to provide targeted assistance to populations with 

the highest risk of potential default or foreclosure. 

* * * * * * * 

TITLE 44, UNITED STATES CODE 

[Section 3(l) of H.R. 1121 provides for an amendment to section 3513 of title 44, 

United States Code. Effective on the designated transfer date (as determined 

under section 1062 of Public Law 111–203), such Act (as amended by such Public 

Law and the bill), reads as follows:] 

* * * * * * * 

CHAPTER 35—COORDINATION OF FEDERAL 

INFORMATION POLICY 

* * * * * * * 

SUBCHAPTER I—FEDERAL INFORMATION POLICY 

* * * * * * * 

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

(a) * * * 

* * * * * * * 

(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 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. 

* * * * * * * 


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(51) 

MINORITY VIEWS 

The Consumer Financial Protection Bureau (CFPB) is a very important part of the Wall Street Reform and Consumer Protection 

Act, as the title of the bill makes clear. Until passage of that Act, 

consumer protection in financial matters was in the hands of regulators who consistently treated consumer protection as a second 

class concern. Creating an independent bureau was intended to ensure that consumer interests are fully considered on the merits and 

not relegated to an afterthought. 

H.R. 1121 proposes to alter fundamentally the structure of the 

CFPB, replacing the single Director with a 5-member commission. 

This formulation was considered and rejected by House conferees 

who recognized the need for a strong consumer protection regulator 

that could act decisively to protect consumers and support a wellinformed, efficient market for consumer financial products. One of 

the primary responsibilities of the CFPB is to regulate the shadow 

banking system that often harms both consumers and responsible 

financial institutions. H.R. 1121 would lead to gridlock, exacerbate 

the regulatory disparity between banks and credit union and their 

less-regulated competitors, and leave consumers without crucial 

protections. We strongly oppose this legislation. 

BARNEY FRANK. 

LUIS V. GUTIERREZ. 

GARY G. PETERS. 

ANDRE

 ́

CARSON. 

WM. LACY CLAY. 

EMANUEL CLEAVER. 

GARY L. ACKERMAN. 

CAROLYN MCCARTHY. 

JOE BACA. 

JOE DONNELLY. 

BRAD SHERMAN. 

MICHAEL CAPUANO. 

MELVIN L. WATT. 

MAXINE WATERS. 

KEITH ELLISON. 

CAROLYN B. MALONEY. 

BRAD MILLER. 

GREGORY W. MEEKS. 

AL GREEN. 

STEPHEN F. LYNCH. 

RUBE

 ́

N HINOJOSA. 

fi 


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