39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–345 

RESPONSIBLE CONSUMER FINANCIAL PROTECTION 

REGULATIONS ACT OF 2013 

FEBRUARY 6, 2014.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 2446] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 2446) 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 Regulations Act of 2013’’. 

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; and 

‘‘(B) have strong competencies and experiences related to consumer financial protection. 

‘‘(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.—The President may remove any member of the Commission appointed under paragraph (1). 

‘‘(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. 

‘‘(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 subsection (c)(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 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 


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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.—Except as provided under paragraph (2), the Consumer Financial Protection Act of 2010 is amended— 

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

where such term is used to refer to a Director other than the Director of 

the Bureau of Consumer Financial Protection; 

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

‘‘Bureau’’, other than where such term is used to refer to a Director other 

than the Director of the Bureau of Consumer Financial Protection; and 

(C) in section 1002, by striking paragraph (10). 

(2) EXCEPTIONS.—The Consumer Financial Protection Act of 2010 is amended— 

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

(B) 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’’; 

(C) 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’’; 

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

‘‘Chair of the Commission’’; and 

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

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

Dodd-Frank Wall Street Reform and Consumer Protection Act 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’’. 

(c) ELECTRONIC FUND TRANSFER ACT.—Section 920(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 Insurance 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)(5) 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 ConVerDate Mar 15 2010 05:18 Feb 11, 2014 Jkt 039006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6621 E:\HR\OC\HR345.XXX HR345

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sumer 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;’’; and 

(2) in section 1416(a), by striking ‘‘Director of the Bureau of Consumer Financial Protection’’ and inserting ‘‘Chair’’. 

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

Estate Settlement Procedures Act of 1974, 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, 

other than where such term is used in the context of the Director of the Office 

of Thrift Supervision, 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. 2446, the Responsible Consumer Financial Protection Regulations Act of 2013, amends the Dodd-Frank Wall Street Reform 

and Consumer Protection Act (the ‘‘Dodd-Frank Act’’) to promote 

greater accountability and transparency at the Consumer Financial 

Protection Bureau (CFPB). It achieves this objective by replacing 

the single director of the CFPB with a commission, similar to the 

structure of other federal agencies charged with consumer or investor protection. 

BACKGROUND AND NEED FOR LEGISLATION

The CFPB is currently governed by a single director in whom all 

the CFPB’s legal authority rests and on whose authority there are 

few, if any, meaningful checks and balances. Other financial regulatory agencies, in contrast, are typically governed by boards or 

commissions (among others, the Securities and Exchange Commission, the Federal Trade Commission, the Board of Governors of the 

Federal Reserve, and the Federal Deposit Insurance Corporation). 

Governance by a bipartisan board or commission is beneficial because it permits the discussion of various viewpoints and draws 

from the collective wisdom of the board rather than the edicts of 

a single director. 

Under this legislation, the single director who currently has sole 

authority for carrying out the CFPB’s mission would be replaced by 

a Commission comprised of the Fed’s Vice Chair for Supervision 

and four members appointed by the President, with the advice and 

consent of the Senate. Commission members must be U.S. citizens 

and have strong competencies and experiences related to consumer 

financial protection. The appointed members of the Commission 

shall serve five-year, staggered terms. Not more than two apVerDate Mar 15 2010 05:18 Feb 11, 2014 Jkt 039006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR345.XXX HR345

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pointed 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 

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. 

The Chair of the Commission shall be compensated at level I of the Executive Schedule ($199,700) and other appointed Commission members shall be compensated at level II of the Executive 

Schedule ($179,700). 

HEARINGS

The Committee on Financial Services’ Subcommittee on Financial Institutions and Consumer Credit held a hearing on H.R. 2446 

on October 29, 2013. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on November 20, 2013, and ordered H.R. 2446 to be reported favorably 

to the House with an amendment by a recorded vote of 31 yeas to 

21 nays (recorded vote no. FC–40), a quorum being present. 

COMMITTEE VOTES

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

to report legislation and amendments thereto. 

1. A motion by Chairman Hensarling to report the bill (H.R. 

2446) with an amendment to the House with a favorable recommendation was agreed to by a record vote of 31 yeas to 21 nays 

(recorded vote no. FC–40). 

RECORD VOTE NO. FC–40 

Representative Yea Nay Present Representative Yea Nay Present 

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

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

Mr. King (NY) ........................ X ........... ............. Ms. Vela ́zquez ...................... ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Watt ............................... ........... X .............

Mr. Lucas .............................. X ........... ............. Mr. Sherman ........................ ........... ........... .............

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

Mrs. Capito ........................... X ........... ............. Mr. Capuano ........................ ........... X .............

Mr. Garrett ............................ X ........... ............. Mr. Hinojosa ......................... ........... X .............

Mr. Neugebauer .................... X ........... ............. Mr. Clay ................................ ........... ........... .............

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

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

Mrs. Bachmann .................... X ........... ............. Mr. David Scott (GA) ............ ........... X .............

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

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

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

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

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

Mr. Luetkemeyer .................... X ........... ............. Mr. Himes ............................. ........... X .............

Mr. Huizenga (MI) ................. X ........... ............. Mr. Peters (MI) ..................... ........... X .............

Mr. Duffy ............................... X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Hurt ................................ X ........... ............. Ms. Sewell (AL) .................... ........... X .............

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

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


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RECORD VOTE NO. FC–40—Continued 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Fincher ............................ X ........... ............. Mr. Murphy (FL) ................... ........... X .............

Mr. Stutzman ........................ X ........... ............. Mr. Delaney .......................... ........... X .............

Mr. Mulvaney ........................ X ........... ............. Ms. Sinema .......................... ........... X .............

Mr. Hultgren .......................... X ........... ............. Mrs. Beatty ........................... ........... X .............

Mr. Ross ................................ X ........... ............. Mr. Heck (WA) ...................... ........... X .............

Mr. Pittenger ......................... X ........... .............

Mrs. Wagner .......................... X ........... .............

Mr. Barr ................................ X ........... .............

Mr. Cotton ............................. X ........... .............

Mr. Rothfus ........................... X ........... .............

COMMITTEE OVERSIGHT FINDINGS

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

of Representatives, the Committee has held hearings 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 states that H.R. 2446, among 

other things, replaces the single director of the CFPB with a commission structure of governance. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

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

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

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

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

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, February 6, 2014. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2446, the Responsible 

Consumer Financial Protection Regulations Act of 2013. 


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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. 2446—Responsible Consumer Financial Protection Regulations 

Act of 2013 

Summary: H.R. 2446 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. 

Based on information from the CFPB, CBO estimates that enacting H.R. 2446 would increase direct spending by $74 million over 

the 2014–2024 period. Because the bill would affect direct spending, pay-as-you-go procedures apply. CBO estimates that enacting 

the bill would not affect revenues and that implementing H.R. 2446 

would not affect spending subject to appropriation. 

H.R. 2446 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. 2446 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— 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014– 

2019 

2014– 

2024 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority ............ 2 7 7 7 7 7 7 8 8 8 8 37 75 

Estimated Outlays ........................... * 7 7 7 7 7 7 8 8 8 8 35 74 

Note: Components may not sum to totals because of rounding; * = less than $500,000. 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted near the middle of fiscal year 2014, that the new 

commissioners will be confirmed by the end of the fiscal year, and 

that spending will follow historical patterns for 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 are recorded in the budget as direct spending. 

H.R. 2446 would replace the director and deputy director of the 

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

the CFPB and agencies with similar organizational structures, 

CBO estimates that the agency would eventually hire an additional 

40 employees to provide legal, research, and administrative support 

to the five commissioners and dismiss the agency director and deputy director. CBO estimates that additional costs for salaries, benefits, and overhead for the new positions would total about $7 million a year. In the next few years, the CFBP will spend about $450 

million a year under current law to carry out all of its activities, 

CBO estimates. 


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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. 

CBO ESTIMATES OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2446, AS ORDERED BY THE HOUSE 

COMMITEE ON FINANCIAL SERVICES ON NOVEMBER 21, 2013 

By fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014– 

2019 

2014– 

2024 

NET INCREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Impact .... 0 7 7 7 7 7 7 8 8 8 8 35 74 

Intergovernmental and private-sector impact: H.R. 2446 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: Melissa Merrell; 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 

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

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 2446 does not contain any congressional earmarks, limited 

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

XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013), the 

Committee states that no provision of H.R. 2446 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included 

in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or a program 


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related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013), the 

Committee states that H.R. 2446 does not direct any rulemaking. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 2446 as the ‘‘Responsible Consumer Financial Protection Regulations Act of 2013.’’ 

Section 2. Establishment of the commission 

This section establishes a commission to serve as the head of the 

CFPB, endows the commission with authority to carry out its statutory mission, fixes the number and qualifications of members to 

serve on the commission, prescribes the appointment and authorities of the chair of the commission, and sets out other attendant 

characteristics and authorities of the commission. 

Section 3. Conforming amendments 

This section makes technical and conforming amendments to 

Federal law consistent with the substantive amendments made by 

section 2. 

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): 

DODD-FRANK WALL STREET REFORM AND CONSUMER 

PROTECTION ACT 

SEC. 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Dodd-Frank 

Wall Street Reform and Consumer Protection Act’’. 

* * * * * * * 

TITLE I—FINANCIAL STABILITY 

* * * * * * * 

Subtitle A—Financial Stability Oversight 

Council 

SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED. 

(a) * * * 

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

members: 


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

have 1 vote on the Council shall be— 

(A) * * * the Secretary of the Treasury, who shall serve 

as Chairperson of the Council; 

* * * * * * * 

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

* * * * * * * 

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) * * * 

* * * * * * * 

ø(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) * * * 

ø(b) DIRECTOR AND DEPUTY DIRECTOR.— 

ø(1) IN GENERAL.—There is established the position of the 

Director who shall serve as the head of the Bureau. 

ø(2) APPOINTMENT.—Subject to paragraph (3), the Director 

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

and consent of the Senate. 

ø(3) QUALIFICATION.—The President shall nominate the Director from among individuals who are citizens of the United 

States. 

ø(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. 

ø(5) DEPUTY DIRECTOR.—There is established the position of 

Deputy Director, who shall— 

ø(A) be appointed by the Director; and 

ø(B) serve as acting Director in the absence or unavailability of the Director. 

ø(c) TERM.— 

ø(1) IN GENERAL.—The Director shall serve for a term of 5 

years. 


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ø(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. 

ø(3) REMOVAL FOR CAUSE.—The President may remove the 

Director for inefficiency, neglect of duty, or malfeasance in office. 

ø(d) SERVICE RESTRICTION.—No Director or Deputy Director may 

hold any office, position, or employment in any Federal reserve 

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

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

Director.¿ 

(b) 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; and 

(B) have strong competencies and experiences related to 

consumer financial protection. 

(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.—The President may remove any member 

of the Commission appointed under paragraph (1). 

(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. 


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

Commission appointed under paragraph (1) shall engage in 

any other business, vocation, or employment. 

(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 subsection (c)(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 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. 


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(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. 

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

the District of Columbia. The øDirector¿ 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 øDirector¿ Bureau and among administrative units of the Bureau; 

* * * * * * * 

(b) DELEGATION OF AUTHORITY.—The øDirector 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 

øDirector¿ 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 

øDirector¿ 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 comments to the Congress, if such recommendations, testimony, or 

comments to the Congress include a statement indicating that 

the views expressed therein are those of the øDirector¿ 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 øDirector¿ Bureau may fix the 

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


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14 

Bureau, in accordance with the applicable provisions of 

title 5, United States Code. 

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

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

compensation (including benefits) to each class of employees that, at a minimum, are comparable to the compensation and benefits then being provided by the Board of Governors for the corresponding class of employees. 

* * * * * * * 

(b) SPECIFIC FUNCTIONAL UNITS.— 

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

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

(A) * * * 

* * * * * * * 

(2) COMMUNITY AFFAIRS.—The øDirector¿ Bureau shall establish a unit whose functions shall include providing informaVerDate Mar 15 2010 05:18 Feb 11, 2014 Jkt 039006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6601 E:\HR\OC\HR345.XXX HR345

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tion, 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 øDirector¿ 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 øDirector¿ 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 øDirector¿ 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) ESTABLISHMENT.—The øDirector¿ Bureau shall establish 

within the Bureau the Office of Fair Lending and Equal Opportunity. 

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

Bureau may delegate to the Office, including— 

(A) * * * 

* * * * * * * 

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

(A) shall be appointed by the øDirector¿ Bureau; and 

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

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

(d) OFFICE OF FINANCIAL EDUCATION.— (1) ESTABLISHMENT.—The øDirector¿ Bureau shall establish 

an Office of Financial Education, which shall be responsible for 

developing and implementing initiatives intended to educate 

and empower consumers to make better informed financial decisions. 

* * * * * * * 

(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 

øDirector¿ Bureau to conduct research related to consumer 

financial education and counseling. 


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(4) REPORT.—Not later than 24 months after the designated 

transfer date, and annually thereafter, the øDirector¿ Bureau 

shall submit a report on its financial literacy activities and 

strategy to improve financial literacy of consumers to— 

(A) * * * 

* * * * * * * 

(e) OFFICE OF SERVICE MEMBER AFFAIRS.— 

(1) IN GENERAL.—The øDirector¿ 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 øDirector¿ 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 øDirector¿ 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 

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 øDirector¿ 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) øASSISTANT 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 øan assistant director¿ a Head of the Office of Financial Protection for Older 

Americans. 

* * * * * * * 

SEC. 1014. CONSUMER ADVISORY BOARD. 

(a) ESTABLISHMENT REQUIRED.—The øDirector¿ 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. 


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(b) MEMBERSHIP.—In appointing the members of the Consumer 

Advisory Board, the øDirector¿ 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 øDirector¿ 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 

øDirector¿ 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 øDirector of the Bureau¿ Chair of the Commission shall appear before the Committee 

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

Committee on Financial Services and the Committee on Energy 

and Commerce of the House of Representatives at semi-annual 

hearings regarding the reports required under subsection (b). 

* * * * * * * 

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 øDirector¿ 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 

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

prepared by the øDirector¿ 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 


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of the Bureau, as prepared by the øDirector¿ Bureau in 

the ordinary course of the operations of the Bureau. 

* * * * * * * 

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

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 

øDirector¿ 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 purposes. Upon the request of the Comptroller General, the 

øDirector 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 øDirector¿ 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 øDirector¿ Bureau 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.— 


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(1) DETERMINATION REGARDING NEED FOR APPROPRIATED

FUNDS.— 

(A) IN GENERAL.—The øDirector¿ 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 øDirector¿ 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 øDirector¿ 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 øDirector¿ 

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 øDirector¿ 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 øDirector¿ Bureau, the financial condition and results of operations of the Bureau, and 

the sources and application of funds of the Bureau, including 

any funds appropriated in accordance with this subsection. 

* * * * * * * 

Subtitle B—General Powers of the Bureau 

SEC. 1022. RULEMAKING AUTHORITY. 

(a) * * * 

(b) RULEMAKING, ORDERS, AND GUIDANCE.— 

(1) GENERAL AUTHORITY.—The øDirector¿ 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) * * * 

* * * * * * * 


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

be construed as limiting the authority of the øDirector¿ 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 øDirector¿ 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 øDirector¿ 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 

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 øDirector¿ 

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) * * * 

* * * * * * * 

(c) EXCLUSION FOR MANUFACTURED HOME RETAILERS AND MODULAR HOME RETAILERS.— 

(1) IN GENERAL.—The øDirector¿ Bureau may not exercise 

any rulemaking, supervisory, enforcement, or other authority 

over a person to the extent that— 

(A) * * * 

* * * * * * * 


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(l) EXCLUSION FOR ACTIVITIES RELATING TO CHARITABLE CON- TRIBUTIONS.— (1) IN GENERAL.—The øDirector¿ Bureau 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 

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

the Bureau, to provide timely assistance to borrowers of private 

education loans. 

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

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

as appropriate, attempts to resolve such complaints in collaboration with the Department of Education and with institutions 

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

and other participants in private education loan programs; 

* * * * * * * 

(4) make appropriate recommendations to the øDirector¿ 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 

* * * * * * * 


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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 øDirector 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 øDirector¿ 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 øDirector¿ Bureau shall submit to Congress a report describing— 

(1) * * * 

* * * * * * * 

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 øDirector 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 øDirector of the Bureau¿ Bureau 

consider appropriate. 

* * * * * * * 

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


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Housing and Urban Development and the øDirector of the Bureau¿ 

Bureau shall— 

(1) * * * 

* * * * * * * 

SECTION 920 OF THE ELECTRONIC FUND TRANSFER 

ACT 

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

(a) REASONABLE INTERCHANGE TRANSACTION FEES FOR ELEC- TRONIC DEBIT TRANSACTIONS.— (1) * * * 

* * * * * * * 

(4) CONSIDERATIONS; CONSULTATION.—In prescribing regulations 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 øDirector of the Bureau of Consumer Financial Protection¿ Bureau of Consumer Financial Protection. 

* * * * * * * 

EXPEDITED FUNDS AVAILABILITY ACT 

* * * * * * * 

TITLE VI—EXPEDITED FUNDS 

AVAILABILITY 

SEC. 601. SHORT TITLE. 

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

* * * * * * * 

SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES. 

(a) * * * 

* * * * * * * 

(d) TIME PERIOD ADJUSTMENTS.— 

(1) REDUCTION GENERALLY.—Notwithstanding any other provision of law, the Board, jointly with the øDirector of the Bureau¿ 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 exVerDate Mar 15 2010 05:18 Feb 11, 2014 Jkt 039006 PO 00000 Frm 00023 Fmt 6659 Sfmt 6601 E:\HR\OC\HR345.XXX HR345

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pect to learn of the nonpayment of most items for each category of checks. 

* * * * * * * 

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 øDirector of the Bureau¿ 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 øDirector of the Bureau¿ 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 øDirector of the Bureau¿ 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 øDirector of the Bureau¿ 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) * * * 

* * * * * * * 

if the receiving depository institution exercises such diligence as 

the circumstances require. 

(e) PREVENTION OF FRAUD LOSSES.— (1) IN GENERAL.—The Board, jointly with the øDirector of the 

Bureau¿ 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 øDirector of the Bureau¿ Bureau of Consumer 

Financial Protection, determines that— 


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(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 øDirector of the 

Bureau¿ Bureau of Consumer Financial Protection, shall 

transmit a report of such action to the Committee on 

Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and 

Urban Affairs of the Senate. 

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

(i) * * * 

(ii) evidence considered by the Board, jointly with 

the øDirector of the Bureau¿ 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 øDirector of the Bureau¿ 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 øDirector of the Bureau¿ 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 øDirector of the Bureau¿ Bureau of Consumer Financial Protection, in 


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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 øDirector of the Bureau¿ Bureau of Consumer Financial Protection, shall prescribe, by regulations, that the owner or operator of such automated teller 

machine shall post or provide a general notice that funds deposited in such machine may not be immediately available for 

withdrawal. 

* * * * * * * 

(f) MODEL DISCLOSURE FORMS.— (1) PREPARED BY BOARD AND BUREAU.—The Board, jointly 

with the øDirector of the Bureau¿ 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. 

* * * * * * * 

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

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

jointly with the øDirector of the Bureau¿ 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 øDirector of the Bureau¿ 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 øDirector of the Bureau¿ Bureau 

of Consumer Financial Protection, shall prescribe regulations— 

(1) * * * 

* * * * * * * 

(e) CONSULTATIONS.—In prescribing regulations under subsections (a) and (b), the Board and the øDirector of the Bureau¿ 

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. 

* * * * * * * 

FEDERAL DEPOSIT INSURANCE ACT 

* * * * * * * 


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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 øDirector 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 

øDirector 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 

øDirector 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 øDirector 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. 

* * * * * * * 

FEDERAL FINANCIAL INSTITUTIONS EXAMINATION 

COUNCIL ACT OF 1978 

* * * * * * * 

TITLE X—FEDERAL FINANCIAL INSTITUTIONS 

EXAMINATION COUNCIL 

* * * * * * * 

ESTABLISHMENT OF THE COUNCIL

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

(1) * * * 

* * * * * * * 

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

* * * * * * * 

SECTION 513 OF THE FINANCIAL LITERACY AND 

EDUCATION IMPROVEMENT ACT 

* * * * * * * 


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TITLE V—FINANCIAL LITERACY AND 

EDUCATION IMPROVEMENT 

SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION 

COMMISSION. 

(a) * * * 

(c) MEMBERSHIP.— 

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

(A) * * * 

* * * * * * * 

(C) the øDirector¿ 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 øDirector¿ Chair of the Commission of the 

Bureau of Consumer Financial Protection shall serve as the Vice 

Chairman. 

* * * * * * * 

HOME MORTGAGE DISCLOSURE ACT OF 1975 

TITLE III—HOME MORTGAGE DISCLOSURE 

SHORT TITLE

SEC. 301. This title may be cited as the ‘‘Home Mortgage Disclosure Act of 1975’’. 

* * * * * * * 

SEC. 307. COMPLIANCE IMPROVEMENT METHODS. 

(a) IN GENERAL.— 

(1) CONSULTATION REQUIRED.—The øDirector 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 øDirector 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 øDirector 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 

Financial Services of the House of Representatives, such additional 


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legislation as the øDirector 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 

* * * * * * * 

TITLE XIV—INTERSTATE LAND SALES 

* * * * * * * 

DEFINITIONS

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

ø(1) ‘‘Director’’ means the Director of the Bureau of Consumer Financial Protection;¿ 

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

of Consumer Financial Protection; 

* * * * * * * 

ADMINISTRATION

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

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

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

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

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

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

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

Code. The Director shall by rule prescribed such rights of appeal 

from the decisions of his administrative law judges to other administrative law judges or to other officers in the Bureau, to boards of 

officers or to himself, as shall be apropriate and in accordance with 

law. 

* * * * * * * 

REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 

* * * * * * * 

HOME BUYING INFORMATION BOOKLETS

SEC. 5. (a) PREPARATION AND DISTRIBUTION.— øThe 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 øDirector¿ Bureau shall prepare the booklet in various lanVerDate Mar 15 2010 05:18 Feb 11, 2014 Jkt 039006 PO 00000 Frm 00029 Fmt 6659 Sfmt 6601 E:\HR\OC\HR345.XXX HR345

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guages and cultural styles, as the øDirector¿ Bureau determines to 

be appropriate, so that the booklet is understandable and accessible to homebuyers of different ethnic and cultural backgrounds. 

The øDirector¿ Bureau shall distribute such booklets to all lenders 

that make federally related mortgage loans. The øDirector¿ 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 øDirector¿ Bureau shall prescribe and, in addition to such 

other information as the øDirector¿ Bureau may provide, shall include in plain and understandable language the following information: 

(1) * * * 

* * * * * * * 

(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 øDirector¿ Bureau, or to any suitable substitute of such booklet that 

the øDirector¿ Bureau may subsequently adopt pursuant to 

such section. 

* * * * * * * 

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

DIVISION A—HOUSING FINANCE 

REFORM 

* * * * * * * 

TITLE V—S.A.F.E. MORTGAGE 

LICENSING ACT 

SEC. 1501. SHORT TITLE. 

This title may be cited as the ‘‘Secure and Fair Enforcement for 

Mortgage Licensing Act of 2008’’ or ‘‘S.A.F.E. Mortgage Licensing 

Act of 2008’’. 

SEC. 1503. DEFINITIONS. 

For purposes of this title, the following definitions shall apply: 

(1) * * * 

* * * * * * * 

(6) NATIONWIDE MORTGAGE LICENSING SYSTEM AND REG- ISTRY.—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 


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or any system established by the øDirector¿ Bureau under section 1509. 

* * * * * * * 

ø(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 øDirector¿ Bureau 

under section 1508 and registered as a loan originator 

with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry. 

* * * * * * * 

SEC. 1508. BUREAU OF CONSUMER FINANCIAL PROTECTION BACKUP 

AUTHORITY TO ESTABLISH LOAN ORIGINATOR LICENSING SYSTEM. 

(a) BACKUP LICENSING SYSTEM.—If, by the end of the 1-year period, or the 2-year period in the case of a State whose legislature 

meets only biennially, beginning on the date of the enactment of 

this title or at any time thereafter, the øDirector¿ 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 øDirector¿ Bureau shall provide for 

the establishment and maintenance of a system for the licensing 

and registration by the øDirector¿ Bureau of loan originators operating in such State as State-licensed loan originators. 

(b) LICENSING AND REGISTRATION REQUIREMENTS.—The system 

established by the øDirector¿ 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 øDirector¿ 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 øDirector¿ 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 øDirector¿ Bureau determines the law satisfies 

the following minimum requirements: 

(1) * * * 

* * * * * * * 

(e) TEMPORARY EXTENSION OF PERIOD.—The øDirector¿ 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 


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that meets the requirements of sections 1505 and 1506 and subsection (d) if the øDirector¿ 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 øDirector¿ 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 

øDirector¿ 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. 

* * * * * * * 

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 øDirector¿ 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 øDirector¿ 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 øDirector¿ 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, 


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or dissemination of information concerning persons who are loan 

originators or are applying for licensing or registration as loan 

originators. 

SEC. 1514. ENFORCEMENT BY THE BUREAU. 

(a) SUMMONS AUTHORITY.—The øDirector¿ 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 øDirector¿ 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 øDirector¿ Bureau or any delegate of the øDirector¿ Bureau at a time and place named in the summons and to 

produce such books, papers, records, or other data, and to give 

testimony, under oath, as may be relevant or material to an investigation of such loan originator for compliance with the requirements of this title. 

(b) EXAMINATION AUTHORITY.— (1) IN GENERAL.—If the øDirector¿ Bureau establishes a licensing system under section 1508 for any State, the øDirector¿ 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 øDirector¿ 

Bureau, to make any examination of any loan originator operating in any State which is subject to a licensing system established by the øDirector¿ Bureau under section 1508 whenever 

the øDirector¿ 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 øDirector¿ 

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 øDirector¿ Bureau under section 1508, or 

with other types of investigations to determine compliance 

with applicable law and regulations, the øDirector¿ Bureau 

and examiners appointed by the øDirector¿ 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 øDirector¿ Bureau 

under section 1508 shall be assessed by the øDirector¿ 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 øDirector¿ Bureau 

finds, after notice and opportunity for hearing, that any person 

is violating, has violated, or is about to violate any provision 


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of this title, or any regulation thereunder, with respect to a 

State which is subject to a licensing system established by the 

øDirector¿ Bureau under section 1508, the øDirector¿ 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 øDirector¿ Bureau may specify in such order. 

Any such order may, as the øDirector¿ Bureau deems appropriate, require future compliance or steps to effect future compliance, either permanently or for such period of time as the 

øDirector¿ 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 øDirector¿ Bureau with the 

consent of any respondent so served. 

(3) TEMPORARY ORDER.—Whenever the øDirector¿ 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 øDirector¿ 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 øDirector¿ Bureau deems appropriate pending 

completion of such proceedings. Such an order shall be entered 

only after notice and opportunity for a hearing, unless the øDirector¿ 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 

øDirector¿ 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 øDirector¿ 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 øDirector¿ Bureau, the respondent may, within 10 days after the date on which the order 


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was served, request a hearing on such application and the 

øDirector¿ Bureau 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 øDirector¿ Bureau; or 

(ii) 10 days after the øDirector¿ 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 

øDirector¿ 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 

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 øDirector¿ Bureau 

may not apply to the court except after hearing and decision by the øDirector¿ 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 øDirector¿ Bureau may 

issue an order to prohibit, conditionally or unconditionally, and 

permanently or for such period of time as the øDirector¿ 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 SECRETARY TO ASSESS MONEY PEN- ALTIES.— 

(1) IN GENERAL.—The øDirector¿ Bureau may impose a civil 

penalty on a loan originator operating in any State which is 

subject to a licensing system established by the øDirector¿ Bureau under section 1508, if the øDirector¿ 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 øDirector¿ 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 øDirector¿ 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 procVerDate Mar 15 2010 05:18 Feb 11, 2014 Jkt 039006 PO 00000 Frm 00035 Fmt 6659 Sfmt 6601 E:\HR\OC\HR345.XXX HR345

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essing, 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 øDirector¿ Bureau 

shall make recommendations to Congress on legislative reforms to 

the Real Estate Settlement Procedures Act of 1974, that the øDirector¿ 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 øDirector¿ 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 øDirector¿ Bureau 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 øDirector¿ 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. 

* * * * * * * 

SECTION 3513 OF TITLE 44, UNITED STATES CODE 

§ 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 øDirector 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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(37) 

MINORITY VIEWS 

Replacing the Director of the Consumer Financial Protection Bureau (CFPB or Bureau) with a five-member commission is a blatant 

attempt to stymie the functioning of the agency and empower regulated entities to exercise more influence over CFPB’s decision-making. A commission would make the Bureau less accountable to Congress and other stakeholders not enhance its accountability. By increasing bureaucracy, the bill would stall decision-making and 

could delay action on critical issues affecting consumers. 

The Dodd-Frank Wall Street Reform and Consumer Financial 

Protection (Dodd-Frank) Act already includes several provisions designed to ensure that myriad stakeholder views are incorporated 

into the Bureau’s decision making process. Specifically, Section 

1100G of the Dodd-Frank Act mandates the Bureau seek out input 

from small businesses, Section 1022(b)(2)(B) mandates that the Bureau consult with other prudential bank regulators and Section 

1014 requires the Bureau to solicit the views of a Consumer Advisory Board to ensure the Bureau is informed of emerging practices 

in the consumer financial products or services industry, including 

trends, concerns and other relevant information. 

In fact, the Bureau has already shown a willingness to incorporate stakeholder feedback into its decision-making process. Examples of this include the balanced approach the Bureau has taken 

in addressing concerns raised by industry participants in both its 

remittance and mortgage rules. 

Furthermore, replacing the Director of the Bureau with a fivemember commission would be inconsistent with the leadership 

structures of the Office of the Comptroller of the Currency (OCC) 

and Federal Housing Finance Agency (FHFA), both of which are 

run by single directors. While some, but not all, financial regulators are governed by multi-member commissions, these agencies 

lack many of the accountability and consultation requirements to 

which the CFPB must adhere. 

MAXINE WATERS. STEPHEN F. LYNCH. RUBE ́ N HINOJOSA. KEITH ELLISON. DAVID SCOTT. MICHAEL E. CAPUANO. CAROLYN B. MALONEY. KYSTEN SINEMA. JOYCE BEATTY. BILL FOSTER. DANIEL KILDEE. 

AL GREEN. 

JAMES A. HIMES. 

DENNY HECK. 


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38 

GREGORY W. MEEKS. GWEN MOORE. TERRI SWELL. WM. LACY CLAY. PATRICK MURPHY. ED PERLUTTER. EMANUEL CLEAVER. BRAD SHERMAN. 

Æ 


tjames on DSK6SPTVN1PROD with REPORTS