I 

113TH CONGRESS 

1ST SESSION H. R. 2572 

To improve the regulation of credit unions and depository institutions and 

to provide regulatory relief, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 28, 2013 

Mr. GARY G. MILLER of California introduced the following bill; which was 

referred to the Committee on Financial Services 

A BILL 

To improve the regulation of credit unions and depository 

institutions and to provide regulatory relief, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Regulatory Relief for 

5 Credit Unions Act of 2013’’. 

6 SEC. 2. ENHANCING THE AUTHORITY OF THE NATIONAL 

7 CREDIT UNION ADMINISTRATION. 

8 (a) REVIEW OF BUREAU REGULATIONS.— 


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1 (1) IN GENERAL.—Section 120 of the Federal 

2 Credit Union Act (12 U.S.C. 1766) is amended by 

3 adding at the end the following: 

4 ‘‘(k) REVIEW OF BUREAU REGULATIONS.—If the 

5 Board determines that a regulation issued by the Bureau 

6 would create an undue hardship when applied to credit 

7 unions, the Board may— 

8 ‘‘(1) delay the application of the regulation to 

9 credit unions until such time as the Board deter10 mines such application would not create an undue 

11 hardship; and 

12 ‘‘(2) modify such regulation, as applied to cred13 it unions, so long as the Board determines that such 

14 modification still meets the Bureau’s objective in 

15 issuing the regulation.’’. 

16 (2) BUREAU DEFINED.—Section 101 of the 

17 Federal Credit Union Act (12 U.S.C. 1752) is 

18 amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(10) The term ‘Bureau’ means the Bureau of 

21 Consumer Financial Protection.’’. 

22 (b) USE OF STATE REGULATIONS BY FEDERAL

23 CREDIT UNIONS.—Section 120 of the Federal Credit 

24 Union Act (12 U.S.C. 1766), as amended by subsection 

25 (a), is further amended by adding at the end the following: 


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1 ‘‘(l) USE OF STATE REGULATIONS.— 

2 ‘‘(1) APPLICATION.—With respect to a State 

3 law applicable to a State credit union, a Federal 

4 credit union may apply to the Board for permission 

5 to comply with such regulation in lieu of the applica6 ble Federal regulation (if any), for purposes of the 

7 credit union’s branches located in such State. Such 

8 permission shall only apply to the State for which 

9 the permission is given, and the Federal credit union 

10 may not comply with such regulation in any other 

11 State in lieu of the applicable Federal regulation. 

12 ‘‘(2) DETERMINATION.—The Board may ap13 prove an application received under paragraph (1) if 

14 the Board determines that having the Federal credit 

15 union’s branches in such State comply with the par16 ticular State law would— 

17 ‘‘(A) improve the credit unions’s ability to 

18 serve members and lend in that particular 

19 State; and 

20 ‘‘(B) not endanger the safety and sound21 ness of the credit union. 

22 ‘‘(3) EXCEPTION.—Notwithstanding paragraph 

23 (1), a Federal credit union may not apply to the 

24 Board for permission to comply with any provision 


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1 of a State law if such law would conflict with the re2 quirements of section 107A.’’. 

3 SEC. 3. IMPROVED CAPITAL STANDARDS AND LEVERAGE 

4 RATIOS FOR CREDIT UNIONS. 

5 (a) IN GENERAL.—Section 216 of the Federal Credit 

6 Union Act (12 U.S.C. 1790d) is amended— 

7 (1) by redesignating subsection (o) as sub8 section (p); 

9 (2) by inserting after subsection (n) the fol10 lowing: 

11 ‘‘(o) REVISED CAPITAL STANDARDS.— 

12 ‘‘(1) TWO-TIER SYSTEM.—The Board shall im13 plement a two-tier system of net worth ratios for 

14 credit unions, consisting of a risk-based net worth 

15 ratio and a net worth capital ratio. Net worth cat16 egories in this section shall take into account the 

17 simplicity or complexity of credit unions in terms of 

18 risk profile. 

19 ‘‘(2) USE OF LEVERAGE RATIOS.—The Board 

20 shall establish standards under this section with re21 spect to leverage ratios of a credit union to the same 

22 extent as are provided for net worth ratios of a cred23 it union. Such standards shall take into account the 

24 unique nature of credit unions and, to the extent 

25 practicable, be comparable to, but not necessarily 


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1 identical to, the leverage ratio standards under sec2 tion 38 of the Federal Deposit Insurance Act.’’; and 

3 (3) in subsection (p), as so redesignated, by 

4 amending paragraph (2) to read as follows: 

5 ‘‘(2) NET WORTH.—The term ‘net worth’— 

6 ‘‘(A) with respect to any insured credit 

7 union, means the retained earnings balance of 

8 the credit union, as determined under generally 

9 accepted accounting principles, together with— 

10 ‘‘(i) any amounts that were previously 

11 retained earnings of any other credit union 

12 with which the credit union has combined; 

13 and 

14 ‘‘(ii) components of equity under gen15 erally accepted accounting principles not 

16 included in retained earnings, as deter17 mined by the Board; 

18 ‘‘(B) with respect to any insured credit 

19 union, includes, at the Board’s discretion and 

20 subject to rules and regulations established by 

21 the Board, assistance provided under section 

22 208 of this title to facilitate a least-cost resolu23 tion consistent with the best interests of the 

24 credit union system; and 


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1 ‘‘(C) with respect to a low income credit 

2 union, includes secondary capital accounts, sub3 ject to limitations set by the Board to address 

4 the safe and sound use of secondary capital to 

5 carry out the purpose of this section, that are— 

6 ‘‘(i) uninsured; and 

7 ‘‘(ii) subordinate to all other claims 

8 against the credit union, including the 

9 claims of creditors, shareholders, and the 

10 Fund.’’. 

11 (b) AMENDMENTS TO NET WORTH CATEGORIES.— 

12 (1) Section 216(c)(1) of the Federal Credit 

13 Union Act is amended as follows: 

14 (A) WELL CAPITALIZED.—In subpara15 graph (A), by striking clauses (i) and (ii) and 

16 inserting the following: 

17 ‘‘(i) it has a risk-based net worth 

18 ratio of not less than 10 percent; or 

19 ‘‘(ii) is considered to be well capital20 ized by any other standard, as determined 

21 by the Board.’’. 

22 (B) ADEQUATELY CAPITALIZED.—In sub23 paragraph (B), by striking clauses (i) and (ii) 

24 and inserting the following: 


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1 ‘‘(i) it has a risk-based net worth 

2 ratio of not less than 8 percent; or 

3 ‘‘(ii) is considered to be adequately 

4 capitalized by any other standard, as de5 termined by the Board.’’. 

6 (C) UNDERCAPITALIZED.—In subpara7 graph (C), by striking clauses (i) and (ii) and 

8 inserting the following: 

9 ‘‘(i) it has a risk-based net worth 

10 ratio of not less than 6 percent; or 

11 ‘‘(ii) is considered to be undercapital12 ized by any other standard, as determined 

13 by the Board.’’. 

14 (D) SIGNIFICANTLY UNDERCAPITAL15 IZED.—Subparagraph (D) is amended to read 

16 as follows: 

17 ‘‘(D) SIGNIFICANTLY UNDERCAPITAL18 IZED.—An insured credit union is ‘significantly 

19 undercapitalized’ if— 

20 ‘‘(i) it has a net worth ratio of less 

21 than 3.25 percent; 

22 ‘‘(ii) it has a net worth ratio of less 

23 than 4.25 percent, and either— 


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1 ‘‘(I) fails to submit an acceptable 

2 net worth restoration plan within the 

3 time allowed under subsection (f); or 

4 ‘‘(II) materially fails to imple5 ment a net worth restoration plan ap6 proved by the Board; or 

7 ‘‘(iii) it has a risk-based net worth 

8 ratio of less than 6 percent.’’. 

9 (2) RELEVANT CAPITAL MEASURES.—Section 

10 216(c)(2) of the Federal Credit Union Act is amend11 ed— 

12 (A) by striking ‘‘, for purposes of section 

13 38(c) of the Federal Deposit Insurance Act,’’; 

14 (B) by striking ‘‘(as those terms are used 

15 in section 38),’’; and 

16 (C) by inserting ‘‘or relevant capital meas17 ures as defined by the Board’’ after ‘‘leverage 

18 limit’’ each place such term appears. 

19 (3) ADJUSTMENT OF LEVELS.—Section 

20 216(c)(2)(A) of the Federal Credit Union Act is 

21 amended— 

22 (A) by striking ‘‘Federal banking agencies 

23 increase or decrease’’ and inserting ‘‘Federal 

24 Deposit Insurance Corporation increases or de25 creases’’; and 


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1 (B) by striking ‘‘level for’’ and inserting 

2 ‘‘levels for’’. 

3 (4) ADJUSTING NET WORTH LEVELS.—Section 

4 216(c)(2)(A) of the Federal Credit Union Act is 

5 amended by striking ‘‘not more than the difference 

6 between the required minimum level most recently 

7 established by the Federal banking agencies and 4 

8 percent of total assets (with respect to institutions 

9 regulated by those agencies)’’ and inserting ‘‘the in10 crease or decrease made by the Federal Deposit In11 surance Corporation’’. 

12 (5) CONSULTATION WITH FEDERAL DEPOSIT

13 INSURANCE CORPORATION.—Section 216(c)(2)(B)(i) 

14 of the Federal Credit Union Act is amended by 

15 striking ‘‘Federal banking agencies’’ and inserting 

16 ‘‘Federal Deposit Insurance Corporation’’. 

17 (c) AMENDMENTS RELATING TO RISK-BASED NET

18 WORTH REQUIREMENTS.—Section 216(d) of the Federal 

19 Credit Union Act is amended— 

20 (1) in paragraph (1)— 

21 (A) by striking ‘‘that are complex, as de22 fined by the Board’’; and 

23 (B) by inserting ‘‘, as defined by the 

24 Board’’ before the period at the end; 


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1 (2) by amending paragraph (2) to read as fol2 lows: 

3 ‘‘(2) STANDARD.—The Board shall design the 

4 risk-based net worth requirement to take account of 

5 any material risks, as defined by the Board, applica6 ble to insured credit unions that are taken account 

7 of by comparable standards applicable to institutions 

8 insured by the Federal Deposit Insurance Corpora9 tion.’’; and 

10 (3) in the heading for such subsection, by strik11 ing ‘‘FOR COMPLEX CREDIT UNIONS’’. 

12 (d) TREATMENT BASED ON OTHER CRITERIA.—Sec13 tion 216(h)(1) of the Federal Credit Union Act is amend14 ed to read as follows: 

15 ‘‘(1) the Board may not reclassify an insured 

16 credit union into a lower net worth category due 

17 solely to interest rate risk, or treat an insured credit 

18 union as if it were in a lower net worth category, for 

19 reasons not pertaining to the safety and soundness 

20 of that credit union; and’’. 

21 (e) DEFINITIONS RELATING TO NET WORTH.— 

22 (1) NET WORTH RATIO.—Section 216(p) of the 

23 Federal Credit Union Act, as redesignated by sub24 section (a), is amended in paragraph (3)— 


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1 (A) by inserting ‘‘minus its deposit in the 

2 Fund,’’ after ‘‘net worth of credit union’’; and 

3 (B) by inserting ‘‘minus its deposit in the 

4 Fund’’ after ‘‘total assets of the credit union’’. 

5 (2) RISK-BASED NET WORTH RATIO.—Section 

6 216(p) of the Federal Credit Union Act, as redesig7 nated by subsection (a), is amended by inserting 

8 after paragraph (4) the following new paragraph: 

9 ‘‘(5) RISK-BASED NET WORTH RATIO.—The 

10 term ‘risk-based net worth ratio’ means, with respect 

11 to any credit union— 

12 ‘‘(A) the ratio of the net worth of the cred13 it union, plus any loan loss reserves (subject to 

14 limitations established by the Board), and 

15 minus the credit union’s deposit in the Fund, to 

16 ‘‘(B) the risk assets of the credit union, as 

17 defined by the Board.’’. 

18 (3) AMENDMENTS RELATING TO NET WORTH

19 RESTORATION PLANS.— 

20 (A) TEMPORARY WAIVER OF NET WORTH

21 RESTORATION PLAN REQUIREMENT IN RE22 SPONSE TO DISASTERS.—Subsection 216(f)(1) 

23 of the Federal Credit Union Act is amended by 

24 striking ‘‘Each insured credit union’’ and in25 serting ‘‘Except as determined by the Board in 


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1 the case of a credit union that becomes or re2 mains no less than undercapitalized due to the 

3 impact of a major natural or man-made dis4 aster, each insured credit union’’. 

5 (B) NET WORTH RESTORATION REQUIRE6 MENT FOR CREDIT UNIONS THAT ARE NOT

7 WELL CAPITALIZED.—Section 216(e) of the 

8 Federal Credit Union Act is amended to read 

9 as follows: 

10 ‘‘(e) NET WORTH RESTORATION PLAN REQUIRE11 MENT APPLICABLE TO CREDIT UNIONS THAT ARE NOT

12 WELL CAPITALIZED.—The Board may require an insured 

13 credit union that is not well capitalized to submit a net 

14 worth restoration plan, as required under subsection (f), 

15 if— 

16 ‘‘(1) material safety and soundness concerns 

17 caused the credit union to become less than well cap18 italized; and 

19 ‘‘(2) the safety and soundness concerns remain 

20 unresolved.’’. 

21 (C) BOARD ACTION MAY INCLUDE ORDER

22 TO CREDIT UNION.—Section 216(i)(1)(B) of the 

23 Federal Credit Union Act is amended— 


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1 (i) by inserting ‘‘order the credit 

2 union to’’ before ‘‘take such other action’’; 

3 and 

4 (ii) by inserting ‘‘, in the discretion of 

5 the Board,’’ after ‘‘as the Board’’. 

6 (D) SUBSTITUTION OF 90 CALENDAR

7 DAYS.—Section 216(i)(3)(A) of the Federal 

8 Credit Union Act is amended— 

9 (i) by striking ‘‘calendar quarter’’ and 

10 inserting ‘‘90 calendar days’’; and 

11 (ii) by inserting ‘‘first’’ after ‘‘the 

12 date on which the credit union’’. 

13 (E) CLARIFICATION OF COORDINATION RE14 QUIREMENT.—Section 216(l)(3)(A)(ii) of the 

15 Federal Credit Union Act is amended by insert16 ing before the semicolon the following: ‘‘, if the 

17 Board determines that such action by the offi18 cial will carry out the purpose of this section’’. 

19 (f) STUDY ON REFORM OF PROMPT CORRECTIVE AC20 TION.— 

21 (1) STUDY.—The National Credit Union Ad22 ministration Board shall carry out a study of prob23 lems associated with the current prompt corrective 

24 action regime. In carrying out such study, the Board 


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1 shall consult with qualified industry and National 

2 Credit Union Administration representatives. 

3 (2) REPORT.—Not later than the end of the 1- 

4 year period beginning on the date of the enactment 

5 of this Act, the Board shall issue a report to the 

6 Congress containing all findings and determinations 

7 made in carrying out the study required under para8 graph (1), including any specific legislative rec9 ommendations recommended by the Board. 

10 SEC. 4. REVIEW OF CREDIT UNION REGULATIONS. 

11 (a) COST-BENEFIT ANALYSIS.— 

12 (1) NATIONAL CREDIT UNION ADMINISTRA13 TION.—Section 120 of the Federal Credit Union Act 

14 (12 U.S.C. 1766), as amended by section 2, is fur15 ther amended by adding at the end the following: 

16 ‘‘(m) COST-BENEFIT ANALYSES.— 

17 ‘‘(1) PRE-ISSUANCE.—Each regulation issued 

18 by the Board shall include a thorough cost-benefit 

19 analysis that details the estimated cost to a credit 

20 union of complying with such regulation compared 

21 to the measurable benefit the regulation may have. 

22 Any information provided to the Board from credit 

23 unions for purposes of the Board’s analysis shall be 

24 on a voluntary basis. 


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1 ‘‘(2) 3-YEAR REVIEW.—At the end of the 3-year 

2 period following the date on which the Board issues 

3 a final regulation, the Board shall— 

4 ‘‘(A) carry out a review of the actual cost 

5 to a credit union of complying with the regula6 tion; and 

7 ‘‘(B) issue a report to the Congress con8 taining the results of such review. 

9 ‘‘(3) RULE REVISION.—If, in carrying out a re10 view under paragraph (2), the Board determines 

11 that the actual cost of complying with a regulation 

12 is more than 20 percent higher than the Board ini13 tially estimated, the Board shall revise the rule.’’. 

14 (2) BUREAU OF CONSUMER FINANCIAL PROTEC15 TION.—Section 1022 of the Consumer Financial 

16 Protection Act of 2010 (12 U.S.C. 5512) is amend17 ed by adding at the end the following: 

18 ‘‘(e) REGULATIONS APPLICABLE TO CREDIT

19 UNIONS.— 

20 ‘‘(1) COST-BENEFIT ANALYSES.— 

21 ‘‘(A) PRE-ISSUANCE.—Each regulation 

22 issued by the Bureau shall, to the extent the 

23 rule applies to a credit union, include a thor24 ough cost-benefit analysis that details the esti25 mated cost to a credit union of complying with 


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1 such regulation compared to the measurable 

2 benefit the regulation may have. Any informa3 tion provided to the Bureau from credit unions 

4 for purposes of its analysis shall be on a vol5 untary basis. 

6 ‘‘(B) 3-YEAR REVIEW.—At the end of the 

7 3-year period following the date on which the 

8 Bureau issues a final regulation that applies to 

9 a credit union, the Bureau shall— 

10 ‘‘(i) carry out a review of the actual 

11 cost to a credit union of complying with 

12 the regulation; and 

13 ‘‘(ii) issue a report to the Congress 

14 containing the results of such review. 

15 ‘‘(C) RULE REVISION.—If, in carrying out 

16 a review under subparagraph (B), the Bureau 

17 determines that the actual cost of complying 

18 with a regulation is more than 20 percent high19 er than the Bureau initially estimated, the Bu20 reau shall revise the rule. 

21 ‘‘(2) ADDITIONAL CONSIDERATIONS.—In pro22 posing any regulation that applies to credit unions, 

23 the Bureau shall— 

24 ‘‘(A) consider the impact of such regula25 tion on— 


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1 ‘‘(i) all federally insured credit unions; 

2 and 

3 ‘‘(ii) consumers in rural areas; and 

4 ‘‘(B) consult with the National Credit 

5 Union Administration and other appropriate 

6 Federal agencies, both prior to proposing such 

7 regulation and during the comment process for 

8 such regulation, regarding consistency with pru9 dential, market, and systemic objectives of such 

10 Administration and other agencies. 

11 ‘‘(3) OBJECTIONS.— 

12 ‘‘(A) IN GENERAL.—If, during the con13 sultation process described in paragraph (2)(B), 

14 the National Credit Union Administration or 

15 another agency provides the Bureau with a 

16 written objection to the proposed regulation, or 

17 a portion thereof, the Bureau shall include with 

18 the final regulation a description of the objec19 tion and the basis for the Bureau’s decision, if 

20 any, regarding such objection. 

21 ‘‘(B) CONSTRUCTION.—Nothing in this 

22 subsection shall be construed as altering or lim23 iting the procedures under section 1023 that 

24 may apply to any regulation prescribed by the 

25 Bureau.’’. 


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1 SEC. 5. MODERNIZING THE CENTRAL LIQUIDITY FACILITY. 

2 (a) STUDY.—The Comptroller General of the United 

3 States shall, in consultation with the National Credit 

4 Union Administration, carry out a study of the Central 

5 Liquidity Facility that examines the need for any improve6 ments or modernizing needed of such Facility. 

7 (b) REPORT.—Not later than the end of the 180-day 

8 period beginning on the date of the enactment of this Act, 

9 the Comptroller General shall issue a report to the Con10 gress containing all of the findings and determinations 

11 made in carrying out the study required under subsection 

12 (a), including any legislative recommendations the Comp13 troller General may have for modernizing the Central Li14 quidity Facility. 

15 SEC. 6. MODERNIZING CREDIT UNION INVESTMENT OP16 TIONS. 

17 (a) INVESTMENTS IN SECURITIES BY FEDERAL

18 CREDIT UNIONS.—Section 107 of the Federal Credit 

19 Union Act (12 U.S.C. 1757) is amended— 

20 (1) by striking ‘‘A Federal credit union’’ and 

21 inserting the following: 

22 ‘‘(a) IN GENERAL.—A Federal credit union’’; and 

23 (2) by adding at the end the following new sub24 section: 

25 ‘‘(b) INVESTMENT FOR THE CREDIT UNION’S OWN

26 ACCOUNT.— 


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1 ‘‘(1) IN GENERAL.—A Federal credit union may 

2 purchase and hold for its own account such invest3 ment securities of investment grade as the Board 

4 may authorize by regulation, subject to such limita5 tions and restrictions as the Board may prescribe. 

6 ‘‘(2) PERCENTAGE LIMITATIONS.— 

7 ‘‘(A) SINGLE PERSON.—The total amount 

8 of investment securities of any single person 

9 held by a Federal credit union for the credit 

10 union’s own account may not exceed 10 percent 

11 of the net worth of the credit union. 

12 ‘‘(B) AGGREGATE INVESTMENTS.—The ag13 gregate amount of investment securities held by 

14 a Federal credit union for the credit union’s 

15 own account may not exceed 10 percent of the 

16 total assets of the credit union. 

17 ‘‘(3) DEFINITIONS.—For purposes of this sub18 section: 

19 ‘‘(A) INVESTMENT GRADE.—The term ‘in20 vestment grade’ means, with respect to an in21 vestment security purchased by a credit union 

22 for its own account, an investment security that 

23 at the time of such purchase meets the credit 

24 criteria established by the Board and reflects 

25 the applicable market standards. 


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1 ‘‘(B) INVESTMENT SECURITY.— 

2 ‘‘(i) IN GENERAL.—The term ‘invest3 ment security’ means marketable obliga4 tions evidencing the indebtedness of any 

5 person in the form of bonds, notes, or de6 bentures and other instruments commonly 

7 referred to as investment securities. 

8 ‘‘(ii) FURTHER DEFINITION BY

9 BOARD.—The Board may further define 

10 the term ‘investment security’. 

11 ‘‘(4) CLARIFICATION OF PROHIBITION ON

12 STOCK OWNERSHIP.—No provision of this subsection 

13 shall be construed as authorizing a Federal credit 

14 union to purchase shares of stock of any corporation 

15 for the credit union’s own account, except as other16 wise permitted by law.’’. 

17 (b) MORTGAGE SERVICING RIGHTS.—Section 107(a) 

18 of the Federal Credit Union Act, as amended by this sec19 tion, is further amended by adding at the end the fol20 lowing: 

21 ‘‘(18) Federal credit unions may purchase 

22 mortgage servicing rights as an investment, includ23 ing purchases of mortgage servicing rights from 

24 other credit unions subject to limits established by 

25 the Board.’’. 


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1 SEC. 7. NATIONAL CREDIT UNION SHARE INSURANCE FUND 

2 PARITY WITH FEDERAL DEPOSIT INSURANCE 

3 CORPORATION. 

4 Section 207(k)(1) of the Federal Credit Union Act 

5 (12 U.S.C. 1787(k)(1)) is amended— 

6 (1) in subparagraph (A)— 

7 (A) by inserting after ‘‘deposits in the 

8 name of the member’’ the following: ‘‘or held in 

9 the member’s account on behalf of another per10 son’’; and 

11 (B) by striking ‘‘the member’’ and insert12 ing ‘‘the person’’; and 

13 (2) in subparagraph (C), by striking ‘‘or in 

14 joint tenancy.’’ and inserting the following: ‘‘in joint 

15 tenancy, or where a member holds funds for the use 

16 of a nonmember. Coverage for an account estab17 lished by a member shall be consistent with that of 

18 the Federal Deposit Insurance Corporation, regard19 less of the membership status of the owner of the 

20 funds that are deposited in an account established 

21 by a member.’’. 

22 SEC. 8. ENHANCING THE AUTHORITY OF THE APPRO23 PRIATE FEDERAL BANKING AGENCIES. 

24 (a) IN GENERAL.—The Consumer Financial Protec25 tion Act of 2010 (12 U.S.C. 5481 et seq.) is amended by 

26 inserting after section 1023 the following: 


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1 ‘‘SEC. 1023A. REVIEW OF BUREAU REGULATIONS ON DEPOS2 ITORY INSTITUTIONS. 

3 ‘‘If the appropriate Federal banking agency deter4 mines that a regulation issued by the Bureau would create 

5 an undue hardship when applied to a class of depository 

6 institutions regulated by such agency, the agency may— 

7 ‘‘(1) delay the application of the regulation to 

8 the class of depository institutions until such time as 

9 the agency determines such application would not 

10 create an undue hardship; and 

11 ‘‘(2) modify such regulation, as applied to the 

12 class of depository institutions, so long as the agency 

13 determines that such modification still meets the 

14 Bureau’s objective in issuing the regulation.’’. 

15 (b) TECHNICAL AMENDMENT.—The table of contents 

16 for the Dodd-Frank Wall Street Reform and Consumer 

17 Protection Act is amended by inserting after the item re18 lating to section 1023 the following new item: 

‘‘1023A. Review of Bureau regulations on depository institutions.’’. 

19 SEC. 9. REVIEW OF DEPOSITORY INSTITUTION REGULA20 TIONS. 

21 (a) COST-BENEFIT ANALYSIS.— 

22 (1) PRE-ISSUANCE.—Each regulation issued by 

23 an appropriate Federal banking agency shall include 

24 a thorough cost-benefit analysis that details the esti25 mated cost to a depository institution of complying 


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1 with such regulation compared to the measurable 

2 benefit the regulation may have. Any information 

3 provided to an agency from a depository institution 

4 for purposes of the agency’s analysis shall be on a 

5 voluntary basis. 

6 (2) 3-YEAR REVIEW.—At the end of the 3-year 

7 period following the date on which the agency issues 

8 a final regulation, the agency shall— 

9 (A) carry out a review of the actual cost to 

10 a depository institution of complying with the 

11 regulation; and 

12 (B) issue a report to the Congress con13 taining the results of such review. 

14 (3) RULE REVISION.—If, in carrying out a re15 view under paragraph (2), the agency determines 

16 that the actual cost of complying with a regulation 

17 is more than 20 percent higher than the agency ini18 tially estimated, the agency shall revise the rule. 

19 (4) DEFINITIONS.—For purposes of this sub20 section, the terms ‘‘appropriate Federal banking 

21 agency’’ and ‘‘depository institution’’ have the mean22 ing given such terms, respectively, under section 3 of 

23 the Federal Deposit Insurance Act (12 U.S.C. 

24 1813). 


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1 (b) BUREAU OF CONSUMER FINANCIAL PROTEC2 TION.—Section 1022 of the Consumer Financial Protec3 tion Act of 2010 (12 U.S.C. 5512), as amended by section 

4 4, is further amended by adding at the end the following: 

5 ‘‘(f) REGULATIONS APPLICABLE TO DEPOSITORY IN6 STITUTIONS.— 

7 ‘‘(1) COST-BENEFIT ANALYSES.— 

8 ‘‘(A) PRE-ISSUANCE.—Each regulation 

9 issued by the Bureau shall, to the extent the 

10 rule applies to a depository institution, include 

11 a thorough cost-benefit analysis that details the 

12 estimated cost to a depository institution of 

13 complying with such regulation compared to the 

14 measurable benefit the regulation may have. 

15 Any information provided to the Bureau from 

16 depository institutions for purposes of its anal17 ysis shall be on a voluntary basis. 

18 ‘‘(B) 3-YEAR REVIEW.—At the end of the 

19 3-year period following the date on which the 

20 Bureau issues a final regulation that applies to 

21 a credit union, the Bureau shall— 

22 ‘‘(i) carry out a review of the actual 

23 cost to a depository institution of com24 plying with the regulation; and 


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1 ‘‘(ii) issue a report to the Congress 

2 containing the results of such review. 

3 ‘‘(C) RULE REVISION.—If, in carrying out 

4 a review under subparagraph (B), the Bureau 

5 determines that the actual cost of complying 

6 with a regulation is more than 20 percent high7 er than the Bureau initially estimated, the Bu8 reau shall revise the rule. 

9 ‘‘(2) ADDITIONAL CONSIDERATIONS.—In pro10 posing any regulation that applies to depository in11 stitutions, the Bureau shall— 

12 ‘‘(A) consider the impact of such regula13 tion on— 

14 ‘‘(i) community-based depository insti15 tutions; and 

16 ‘‘(ii) consumers in rural areas; and 

17 ‘‘(B) consult with the appropriate Federal 

18 banking agencies, both prior to proposing such 

19 regulation and during the comment process for 

20 such regulation, regarding consistency with pru21 dential, market, and systemic objectives of such 

22 agencies. 

23 ‘‘(3) OBJECTIONS.— 

24 ‘‘(A) IN GENERAL.—If, during the con25 sultation process described in paragraph (2)(B), 


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1 an agency provides the Bureau with a written 

2 objection to the proposed regulation, or a por3 tion thereof, the Bureau shall include with the 

4 final regulation a description of the objection 

5 and the basis for the Bureau’s decision, if any, 

6 regarding such objection. 

7 ‘‘(B) CONSTRUCTION.—Nothing in this 

8 subsection shall be construed as altering or lim9 iting the procedures under section 1023 that 

10 may apply to any regulation prescribed by the 

11 Bureau.’’. 

Æ 


emcdonald on DSK67QTVN1PROD with BILLS