89–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–1095 

GIVE USEFUL INFORMATION TO DEFINE EFFECTIVE 

COMPLIANCE ACT 

DECEMBER 21, 2018.—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. 5534] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 5534) to amend the Consumer Financial Protection Act 

of 2010 to provide procedures for guidance issued by the Bureau of 

Consumer Financial Protection, and for other purposes, 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 ‘‘Give Useful Information to Define Effective Compliance Act’’ or the ‘‘GUIDE Compliance Act’’. 

SEC. 2. PROCEDURES FOR BUREAU GUIDANCE. 

Section 1022(b) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 

5512(b)) is amended by adding at the end the following: 

‘‘(5) PROCEDURES FOR BUREAU GUIDANCE.— 

‘‘(A) DEFINITIONS.—In this paragraph— 

‘‘(i) the term ‘Bureau’ means— 

‘‘(I) the Director of the Bureau; 

‘‘(II) the Deputy Director of the Bureau; and 

‘‘(III) any employee of the Bureau described in section 

1013(a)(1)(B); and 

‘‘(ii) the term ‘guidance’— 

‘‘(I) means— 


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‘‘(aa) an agency statement of general applicability and future 

effect, other than a regulatory action, that sets forth a policy 

on a statutory, regulatory, or technical issue or an interpretation of a statutory or regulatory issue; and 

‘‘(bb) any written interpretive rule, bulletin, statement of policy, letter, examination manual, frequently asked question, notice, directive, news release, blog post, small entity compliance 

guide, or other authoritative document issued by the Bureau 

regarding compliance with a Federal consumer financial law; 

and 

‘‘(II) does not include— 

‘‘(aa) a purely internal Bureau policy; 

‘‘(bb) a law enforcement communication such as a complaint, 

consent order, judgment, legal opinion, warning letter, investigatory letter, notice of hearing, civil investigative demand, 

subpoena, no-action letter, advisory opinion, or any request in 

lieu of the foregoing; 

‘‘(cc) an individualized supervisory communication such as a 

supervisory letter, report of examination, memorandum of understanding, board resolution, matter requiring attention, or 

individualized communication or agreement pursuant to the 

supervisory authority of the Bureau; or 

‘‘(dd) a decision issued under subtitle E. 

‘‘(B) GUIDANCE REQUIREMENTS.—The Director shall issue guidance that is 

necessary or appropriate to enable the Bureau to carry out Federal consumer financial law, including facilitating compliance with such law. 

‘‘(C) RULEMAKING.— 

‘‘(i) PROPOSED RULE.—Not later than 18 months after the date of enactment of this paragraph, the Bureau shall publish in the Federal 

Register and on the website of the Bureau a proposed rule defining— 

‘‘(I) each type of guidance the Bureau shall provide; 

‘‘(II) the criteria the Bureau shall use for selecting each type of 

guidance; 

‘‘(III) the process and timelines for requests for guidance; 

‘‘(IV) the time periods for the response of the Bureau to a request 

for each type of guidance; and 

‘‘(V) a process for amending or revoking guidance issued under 

the rule, including a process for public input on any proposal to 

amend or revoke guidance, unless the Bureau determines public 

input is not required due to public exigency. 

‘‘(ii) FINAL RULE.—Not later than 1 year after the date on which the 

proposed rule described in clause (i) is published, the Bureau shall publish a final rule based on the proposed rule. 

‘‘(D) RELIANCE ON BUREAU GUIDANCE.—No person shall be held liable for 

any act done or omitted in good faith in conformity with any applicable 

guidance from the Bureau or any predecessor agency that was in effect at 

the time of the act or omission, even if the guidance is later revoked, 

amended, or rendered inconsistent by guidance or action by the Bureau or 

a determination by a court of competent jurisdiction. 

‘‘(E) DEVELOPMENT OF A PENALTY MATRIX.— 

‘‘(i) PROPOSED RULE.—Not later than 18 months after the date of the 

enactment of this subparagraph, the Bureau shall publish in the Federal Register and on the website of the Bureau a proposed rule establishing guidelines for determining the size of any civil monetary penalties issued by the Bureau based on the severity of the actionable conduct in violation of a Federal consumer financial law and the level of 

culpability. The regulations prescribed under this paragraph shall, to 

the extent possible, align with any chart, matrix, rule, or guideline published by the Office of the Comptroller of the Currency, the Corporation, or the Board of Governors. 

‘‘(ii) FINAL RULE.—Not later than 1 year after the date on which the 

proposed rule described in clause (i) is published, the Bureau shall publish a final rule based on the proposed rule.’’. 

PURPOSE AND SUMMARY

Introduced by Representative Sean Duffy on April 17, 2018, H.R. 

5534, the ‘‘Give Useful Information to Define Effective (GUIDE) 


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1Gary Davis, ‘‘Why Reform is Necessary at the CFPB.’’ (Feb. 2017) Available at https:// 

www.forbes.com/sites/forbesfinancecouncil/2018/02/07/why-reform-is-necessary-at-the-cfpb/ 

#14a06ba747fa. 2https://www.mba.org/issues/residential-issues/cfpb-enforcement-concerns. 

3Michael Grunwald, ‘‘Trump Wants to Dismantle Elizabeth Warren’s Agency. Good Luck With 

That.’’ (Dec. 2017) Available at https://www.politico.com/magazine/story/2017/12/03/trump-cfpbelizabeth-warren-215997. 4 Id. 5 supra note 2. ‘‘The CFPB has published key consent orders and decisions-including under 

the Real Estate Settlement Procedures Act (RESPA)-that diverge from prior rules and interpretations of the Department of Housing and Urban Development (HUD) that the industry has relied on for decades.’’ 6See https://www.consumerfinancemonitor.com/wp-content/uploads/sites/14/2018/01/Mulvaneymemo.pdf. 

Compliance Act’’ amends the Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 (Dodd-Frank Act) [Pub. L. 111– 

203] to provide procedures for guidance issued by the Bureau of 

Consumer Financial Protection (BCFP), including guidance necessary to comply with the law, establishes clear standards for that 

guidance and how it is issued, and provides a safe harbor for good 

faith reliance on guidance issued by the Bureau. 

BACKGROUND AND NEED FOR LEGISLATION

Since its inception in 2010, the Bureau of Consumer Financial 

Protection has operated outside of the expected norms for a federal 

supervisory agency. Criticisms against the Bureau include rulemaking driven by political motivations 1, regulation through enforcement 2, and the tendency to stretch the Bureau’s statutory authority or use novel interpretations of existing law to support the 

Bureau’s enforcement and litigation.3 The Bureau’s former Director, Richard Cordray, stated: 

‘‘We wanted to send a message: There’s a new cop on the 

beat. Pushing the envelope is a loaded phrase, but that’s 

absolutely what we did.’’ 4

Under the previous Director’s watch this created an uneven playing field for financial services businesses. The Bureau’s consumer 

complaint portal, an unverified public complaint database of financial service providers and products, was not an accurate indicator 

of the Bureau’s next rulemaking initiative. Litigation and enforcement actions could not be relied upon to set an industry precedent 

on which businesses could rely. Previously accepted industry practices could be cause for future litigation from the Bureau.5 Ultimately, instead of fulfilling the BCFP’s mandate to protect consumers, its actions achieved the opposite result. Banks stopped offering certain products for fear of litigation and did not introduce 

new products because of compliance costs and potential legal liability. Credit availability then tightened for consumers and businesses, reduced access to mortgage credit for families looking to 

purchase a home and limited s options for businesses looking to expand. 

This approach to consumer protection has been reversed by 

BCFP Acting Director Mick Mulvaney, who in a memo to staff 

upon his arrival signaled that the Bureau would commit to enforcing the rule of law and no longer be ‘‘pushing the envelope.’’ 6 In 

his memo, Acting Director Mulvaney also promised to engage in 

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7 Id. 8 United States. Cong. House. Committee on Financial Services. Hearing on Improving Transparency and Accountability at the Bureau of Consumer Financial Protection Bureau. June 6, 

2018. 115th Cong. 2nd sess. (statement of Steven G. Day, American Land Title Association). 

Available at https://financialservices.house.gov/uploadedfiles/hhrg-115-ba15-wstate-sday20180606.pdf. 

making, and engage in more robust cost-benefit analysis. While 

this fresh perspective is welcome, it is necessary for Congress to 

ensure consumers and businesses remain protected should a subsequent Director choose to stray from this new direction. In the same 

memo to Bureau staff, Acting Director Mulvaney appropriately 

noted that: 

We are government employees, and we work for the people. That means everyone: those who use credit cards and 

those who provide the credit; those who take out loans and 

those who make them; those who buy cars and those who 

sell them. All of those people are part of what makes this 

country great, and all of them deserve to be treated fairly 

by their government.7

The new approach to consumer financial regulation by the BCFP 

demonstrates not only the intent of Congress but also fair and 

equal treatment for all market participants from the customer to 

the businesses that serve them. This fair, equal, and transparent 

system will help foster economic growth and ensure all Americans 

have equal access to the financial system and wide array of products to serve their individual and specific needs. 

FORMALIZING THE GUIDANCE PROCESS AT THE BCFP

Guidance can play an integral role in business decision making. 

Clear, reliable guidance can provide businesses with reliable information to form the basis for making decisions and investments 

without concern that their actions could lead to enforcement orders 

or fines in the future. Guidance can also improve the supervision 

process as examiners have an easier time determining compliance 

with additional reference points. Therefore, it is good policy to encourage regulators to share insights on how to comply with their 

rules. 

There are several examples of finalized rules from the BCFP that 

lack the necessary guidance to provide much needed clarity for 

businesses. For instance, during the Financial Institutions Subcommittee’s hearing examining reforms to improve transparency 

and accountability at the Bureau, the President of the American 

Land Title Association (ALTA), Steven Day, shared examples 

where Bureau guidance would have helped to clarify confusing 

rules. Specifically, Mr. Day referred to compliance hurdles associated with the BCFP’s TILA–RESPA Integrated Disclosure (TRID) 

rule, where the Bureau hosted webinars but did not provide written guidance, causing headaches in sharing this information with 

inquiring customers.8 In his testimony Mr. Day also compared the 

guidance shared by federal regulators concerning third-party service providers: 

‘‘Unlike similar guidance from prudential regulators, the 

Bureau’s bulletin provided little direction to banks and 

nonbanks. The Bulletin was two and a half pages long, 


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9 Id. at 11–12. 10Guidance can come in the form of advisory opinions, bulletins, no-action letters, statements 

of policy, and answers to Frequently Asked Questions (FAQs). 

compared with 16 pages of guidance from the Office of the 

Comptroller of the Currency (OCC) and the 14-page document from the Federal Reserve Board.’’ 9

To resolve this issue, the GUIDE Compliance Act creates a process for the BCFP to issue formal and reliable written guidance 10

on how to comply with its written regulations along with the creation of a civil money penalty matrix similar to those used by all 

other federal financial regulators. Guidance developed under the 

GUIDE Compliance Act is designed to interpret requirements of a 

regulation that was adopted as part of a formal Administrative 

Procedures Act (APA) process. 

HEARINGS

The Subcommittee on Financial Institutions held a hearing examining matters relating to H.R. 5534 on June 6, 2018. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

September 13, 2018, and ordered H.R. 5534 to be reported favorably to the House, as amended, by a recorded vote of 38 yeas to 

14 nays (recorded vote no. FC–206), a quorum being present. Before the motion to report was offered, the Committee adopted, by 

voice vote, an amendment in the nature of a substitute offered by 

Mr. Duffy. 

COMMITTEE VOTES

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

to report legislation and amendments thereto. The sole recorded 

vote was on a motion by Chairman Hensarling to report the bill favorably to the as amended. The motion was agreed to by a recorded 

vote of 38 yeas to 14 nays (Record vote no. FC–206), a quorum 

being present. 


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COMMITTEE OVERSIGHT FINDINGS

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

of Representatives, the findings and recommendations of the Committee based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

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

of Representatives, the Committee states that H.R. 5534 will help 

to clarify any new guidance issued by the BCFP in order to make 

guidance clear and succinct for implementation. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

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

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

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

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

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, December 19, 2018. 

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. 5534, the GUIDE Compliance Act. 

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

to provide them. The CBO staff contact is Stephen Rabent. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

H.R. 5534—GUIDE Compliance Act 

H.R. 5534 would require the Consumer Financial Protection Bureau (CFPB) to issue guidance to facilitate compliance with federal 

consumer financial laws. The agency would be required to issue 

rules that define various types of guidance; establish a procedure 

for issuing, amending, and revoking guidance; and develop a process for receiving public input on guidance. H.R. 5534 also would require the CFPB to establish guidelines to determine the size of civil 

monetary penalties imposed by the agency. 


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Using information from the CFPB, CBO estimates that enacting 

the bill would require the agency to hire four employees to handle 

the preparation of the additional guidance that the agency would 

be required to issue and to implement new procedures for issuing 

guidance. CBO estimates those efforts would cost $1 million annually, beginning in 2021. In addition, CBO estimates that it would 

cost the agency about $1 million to issue the required rules under 

the bill. (Spending by the CFPB is considered direct spending.) 

Over the 2019-2028 period, CBO estimates that implementing the 

bill would increase direct spending by $9 million. 

Under H.R. 5534, the CFPB also would be required to issue a 

rule to establish new guidelines for determining the size of the civil 

monetary penalties it issues and to align those guidelines with 

those published by other financial regulators. CBO estimates that 

amending current agency penalty guidelines would affect civil penalties collected by the CFPB (which are recorded in the budget as 

revenues) and the subsequent direct spending of those penalties. 

However, because any changes would be dependent on the outcome 

of future agency rules, CBO has no basis to determine whether future civil monetary penalties would be higher or lower than under 

current law. 

Because enacting H.R. 5534 would affect direct spending and revenues, pay-as-you-go procedures apply. 

CBO estimates that enacting H.R. 5534 would not increase net 

direct spending or on-budget deficits by more than $5 billion in any 

of the four consecutive 10-year periods beginning in 2029. 

H.R. 5534 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Stephen Rabent. The 

estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995. 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 

ADVISORY COMMITTEE STATEMENT

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

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

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

Congressional Accountability Act. 

EARMARK IDENTIFICATION

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the proVerDate Sep 11 2014 05:06 Dec 29, 2018 Jkt 089006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1095.XXX HR1095

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visions of the bill and states that the provisions of the bill do not 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

DUPLICATION OF FEDERAL PROGRAMS

In compliance with clause 3(c)(5) of rule XIII of the Rules of the 

House of Representatives, the Committee states that no provision 

of the bill establishes or reauthorizes: (1) a program of the Federal 

Government known to be duplicative of another Federal program; 

(2) a program included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139; or (3) a program related to a program identified in 

the most recent Catalog of Federal Domestic Assistance, published 

pursuant to the Federal Program Information Act (Pub. L. No. 95– 

220, as amended by Pub. L. No. 98–169). 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, (115th Congress), the following statement is made concerning directed rule makings: The 

Committee estimates that the bill requires directed rule makings 

within the meaning of such section. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 5534 as the ‘‘Give Useful Information to 

Define Effective Compliance Act’’ 

Section 2. Procedures for Bureau guidance 

This section cites the requirements to be carried out by the Director in issuing guidance that is necessary and appropriate to enable the Bureau to carry out Federal consumer financial law, including facilitating compliance with such law. This section also sets 

forward the definition for guidance as well as the proposed rule. 

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, 

and existing law in which no change is proposed is shown in 

roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

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

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

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 


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CONSUMER FINANCIAL PROTECTION ACT OF 2010 

TITLE X—BUREAU OF CONSUMER 

FINANCIAL PROTECTION 

* * * * * * * 

Subtitle B—General Powers of the Bureau 

* * * * * * * 

SEC. 1022. RULEMAKING AUTHORITY. 

(a) IN GENERAL.—The Bureau is authorized to exercise its authorities under Federal consumer financial law to administer, enforce, and otherwise implement the provisions of Federal consumer 

financial law. 

(b) RULEMAKING, ORDERS, AND GUIDANCE.— 

(1) GENERAL AUTHORITY.—The Director may prescribe rules 

and issue orders and guidance, as may be necessary or appropriate to enable the Bureau to administer and carry out the 

purposes and objectives of the Federal consumer financial 

laws, and to prevent evasions thereof. 

(2) STANDARDS FOR RULEMAKING.—In prescribing a rule 

under the Federal consumer financial laws— 

(A) the Bureau shall consider— 

(i) the potential benefits and costs to consumers and 

covered persons, including the potential reduction of 

access by consumers to consumer financial products or 

services resulting from such rule; and 

(ii) the impact of proposed rules on covered persons, 

as described in section 1026, and the impact on consumers in rural areas; 

(B) the Bureau shall consult with the appropriate prudential regulators or other Federal agencies prior to proposing a rule and during the comment process regarding 

consistency with prudential, market, or systemic objectives 

administered by such agencies; and 

(C) if, during the consultation process described in subparagraph (B), a prudential regulator provides the Bureau 

with a written objection to the proposed rule of the Bureau 

or a portion thereof, the Bureau shall include in the adopting release a description of the objection and the basis for 

the Bureau decision, if any, regarding such objection, except that nothing in this clause shall be construed as altering or limiting the procedures under section 1023 that may 

apply to any rule prescribed by the Bureau. 

(3) EXEMPTIONS.— 

(A) IN GENERAL.—The Bureau, by rule, may conditionally or unconditionally exempt any class of covered 

persons, service providers, or consumer financial products 

or services, from any provision of this title, or from any 

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tives of this title, taking into consideration the factors in 

subparagraph (B). 

(B) FACTORS.—In issuing an exemption, as permitted 

under subparagraph (A), the Bureau shall, as appropriate, 

take into consideration— 

(i) the total assets of the class of covered persons; 

(ii) the volume of transactions involving consumer financial products or services in which the class of covered persons engages; and 

(iii) existing provisions of law which are applicable 

to the consumer financial product or service and the 

extent to which such provisions provide consumers 

with adequate protections. 

(4) EXCLUSIVE RULEMAKING AUTHORITY.— (A) IN GENERAL.—Notwithstanding any other provisions 

of Federal law and except as provided in section 

1061(b)(5), to the extent that a provision of Federal consumer financial law authorizes the Bureau and another 

Federal agency to issue regulations under that provision of 

law for purposes of assuring compliance with Federal consumer financial law and any regulations thereunder, the 

Bureau shall have the exclusive authority to prescribe 

rules subject to those provisions of law. 

(B) DEFERENCE.—Notwithstanding any power granted to 

any Federal agency or to the Council under this title, and 

subject to section 1061(b)(5)(E), the deference that a court 

affords to the Bureau with respect to a determination by 

the Bureau regarding the meaning or interpretation of any 

provision of a Federal consumer financial law shall be applied as if the Bureau were the only agency authorized to 

apply, enforce, interpret, or administer the provisions of 

such Federal consumer financial law. 

(5) PROCEDURES FOR BUREAU GUIDANCE.— (A) DEFINITIONS.—In this paragraph— 

(i) the term ‘‘Bureau’’ means— 

(I) the Director of the Bureau; 

(II) the Deputy Director of the Bureau; and 

(III) any employee of the Bureau described in 

section 1013(a)(1)(B); and 

(ii) the term ‘‘guidance’’— 

(I) means— 

(aa) an agency statement of general applicability and future effect, other than a regulatory 

action, that sets forth a policy on a statutory, 

regulatory, or technical issue or an interpretation of a statutory or regulatory issue; and 

(bb) any written interpretive rule, bulletin, 

statement of policy, letter, examination manual, frequently asked question, notice, directive, news release, blog post, small entity compliance guide, or other authoritative document 

issued by the Bureau regarding compliance 

with a Federal consumer financial law; and 

(II) does not include— 

(aa) a purely internal Bureau policy; 


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(bb) a law enforcement communication such 

as a complaint, consent order, judgment, legal 

opinion, warning letter, investigatory letter, 

notice of hearing, civil investigative demand, 

subpoena, no-action letter, advisory opinion, or 

any request in lieu of the foregoing; 

(cc) an individualized supervisory communication such as a supervisory letter, report of 

examination, memorandum of understanding, 

board resolution, matter requiring attention, 

or individualized communication or agreement 

pursuant to the supervisory authority of the 

Bureau; or 

(dd) a decision issued under subtitle E. 

(B) GUIDANCE REQUIREMENTS.—The Director shall issue 

guidance that is necessary or appropriate to enable the Bureau to carry out Federal consumer financial law, including facilitating compliance with such law. 

(C) RULEMAKING.— (i) PROPOSED RULE.—Not later than 18 months after 

the date of enactment of this paragraph, the Bureau 

shall publish in the Federal Register and on the 

website of the Bureau a proposed rule defining— 

(I) each type of guidance the Bureau shall provide; 

(II) the criteria the Bureau shall use for selecting 

each type of guidance; 

(III) the process and timelines for requests for 

guidance; 

(IV) the time periods for the response of the Bureau to a request for each type of guidance; and 

(V) a process for amending or revoking guidance 

issued under the rule, including a process for public input on any proposal to amend or revoke guidance, unless the Bureau determines public input is 

not required due to public exigency. 

(ii) FINAL RULE.—Not later than 1 year after the date 

on which the proposed rule described in clause (i) is 

published, the Bureau shall publish a final rule based 

on the proposed rule. 

(D) RELIANCE ON BUREAU GUIDANCE.—No person shall be 

held liable for any act done or omitted in good faith in conformity with any applicable guidance from the Bureau or 

any predecessor agency that was in effect at the time of the 

act or omission, even if the guidance is later revoked, 

amended, or rendered inconsistent by guidance or action by 

the Bureau or a determination by a court of competent jurisdiction. 

(E) DEVELOPMENT OF A PENALTY MATRIX.— (i) PROPOSED RULE.—Not later than 18 months after 

the date of the enactment of this subparagraph, the Bureau shall publish in the Federal Register and on the 

website of the Bureau a proposed rule establishing 

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ity of the actionable conduct in violation of a Federal 

consumer financial law and the level of culpability. 

The regulations prescribed under this paragraph shall, 

to the extent possible, align with any chart, matrix, 

rule, or guideline published by the Office of the Comptroller of the Currency, the Corporation, or the Board 

of Governors. 

(ii) FINAL RULE.—Not later than 1 year after the date 

on which the proposed rule described in clause (i) is 

published, the Bureau shall publish a final rule based 

on the proposed rule. 

(c) MONITORING.— (1) IN GENERAL.—In order to support its rulemaking and 

other functions, the Bureau shall monitor for risks to consumers in the offering or provision of consumer financial products or services, including developments in markets for such 

products or services. 

(2) CONSIDERATIONS.—In allocating its resources to perform 

the monitoring required by this section, the Bureau may consider, among other factors— 

(A) likely risks and costs to consumers associated with 

buying or using a type of consumer financial product or 

service; 

(B) understanding by consumers of the risks of a type of 

consumer financial product or service; 

(C) the legal protections applicable to the offering or provision of a consumer financial product or service, including 

the extent to which the law is likely to adequately protect 

consumers; 

(D) rates of growth in the offering or provision of a consumer financial product or service; 

(E) the extent, if any, to which the risks of a consumer 

financial product or service may disproportionately affect 

traditionally underserved consumers; or 

(F) the types, number, and other pertinent characteristics of covered persons that offer or provide the consumer 

financial product or service. 

(3) SIGNIFICANT FINDINGS.— (A) IN GENERAL.—The Bureau shall publish not fewer 

than 1 report of significant findings of its monitoring required by this subsection in each calendar year, beginning 

with the first calendar year that begins at least 1 year 

after the designated transfer date. 

(B) CONFIDENTIAL INFORMATION.—The Bureau may 

make public such information obtained by the Bureau 

under this section as is in the public interest, through aggregated reports or other appropriate formats designed to 

protect confidential information in accordance with paragraphs (4), (6), (8), and (9). 

(4) COLLECTION OF INFORMATION.— (A) IN GENERAL.—In conducting any monitoring or assessment required by this section, the Bureau shall have 

the authority to gather information from time to time regarding the organization, business conduct, markets, and 

activities of covered persons and service providers. 


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(B) METHODOLOGY.—In order to gather information described in subparagraph (A), the Bureau may— 

(i) gather and compile information from a variety of 

sources, including examination reports concerning covered persons or service providers, consumer complaints, voluntary surveys and voluntary interviews of 

consumers, surveys and interviews with covered persons and service providers, and review of available 

databases; and 

(ii) require covered persons and service providers 

participating in consumer financial services markets 

to file with the Bureau, under oath or otherwise, in 

such form and within such reasonable period of time 

as the Bureau may prescribe by rule or order, annual 

or special reports, or answers in writing to specific 

questions, furnishing information described in paragraph (4), as necessary for the Bureau to fulfill the 

monitoring, assessment, and reporting responsibilities 

imposed by Congress. 

(C) LIMITATION.—The Bureau may not use its authorities under this paragraph to obtain records from covered 

persons and service providers participating in consumer financial services markets for purposes of gathering or analyzing the personally identifiable financial information of 

consumers. 

(5) LIMITED INFORMATION GATHERING.—In order to assess 

whether a nondepository is a covered person, as defined in section 1002, the Bureau may require such nondepository to file 

with the Bureau, under oath or otherwise, in such form and 

within such reasonable period of time as the Bureau may prescribe by rule or order, annual or special reports, or answers 

in writing to specific questions. 

(6) CONFIDENTIALITY RULES.— (A) RULEMAKING.—The Bureau shall prescribe rules regarding the confidential treatment of information obtained 

from persons in connection with the exercise of its authorities under Federal consumer financial law. 

(B) ACCESS BY THE BUREAU TO REPORTS OF OTHER REGU- LATORS.— 

(i) EXAMINATION AND FINANCIAL CONDITION REPORTS.—Upon providing reasonable assurances of confidentiality, the Bureau shall have access to any report 

of examination or financial condition made by a prudential regulator or other Federal agency having jurisdiction over a covered person or service provider, and 

to all revisions made to any such report. 

(ii) PROVISION OF OTHER REPORTS TO THE BUREAU.— 

In addition to the reports described in clause (i), a 

prudential regulator or other Federal agency having 

jurisdiction over a covered person or service provider 

may, in its discretion, furnish to the Bureau any other 

report or other confidential supervisory information 

concerning any insured depository institution, credit 

union, or other entity examined by such agency under 

authority of any provision of Federal law. 


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(C) ACCESS BY OTHER REGULATORS TO REPORTS OF THE

BUREAU.— 

(i) EXAMINATION REPORTS.—Upon providing reasonable assurances of confidentiality, a prudential regulator, a State regulator, or any other Federal agency 

having jurisdiction over a covered person or service 

provider shall have access to any report of examination made by the Bureau with respect to such person, 

and to all revisions made to any such report. 

(ii) PROVISION OF OTHER REPORTS TO OTHER REGU- LATORS.—In addition to the reports described in clause 

(i), the Bureau may, in its discretion, furnish to a prudential regulator or other agency having jurisdiction 

over a covered person or service provider any other report or other confidential supervisory information concerning such person examined by the Bureau under 

the authority of any other provision of Federal law. 

(7) REGISTRATION.— (A) IN GENERAL.—The Bureau may prescribe rules regarding registration requirements applicable to a covered 

person, other than an insured depository institution, insured credit union, or related person. 

(B) REGISTRATION INFORMATION.—Subject to rules prescribed by the Bureau, the Bureau may publicly disclose 

registration information to facilitate the ability of consumers to identify covered persons that are registered with 

the Bureau. 

(C) CONSULTATION WITH STATE AGENCIES.—In developing 

and implementing registration requirements under this 

paragraph, the Bureau shall consult with State agencies 

regarding requirements or systems (including coordinated 

or combined systems for registration), where appropriate. 

(8) PRIVACY CONSIDERATIONS.—In collecting information from 

any person, publicly releasing information held by the Bureau, 

or requiring covered persons to publicly report information, the 

Bureau shall take steps to ensure that proprietary, personal, 

or confidential consumer information that is protected from 

public disclosure under section 552(b) or 552a of title 5, United 

States Code, or any other provision of law, is not made public 

under this title. 

(9) CONSUMER PRIVACY.— 

(A) IN GENERAL.—The Bureau may not obtain from a 

covered person or service provider any personally identifiable financial information about a consumer from the financial records of the covered person or service provider, 

except— 

(i) if the financial records are reasonably described 

in a request by the Bureau and the consumer provides 

written permission for the disclosure of such information by the covered person or service provider to the 

Bureau; or 

(ii) as may be specifically permitted or required 

under other applicable provisions of law and in accordance with the Right to Financial Privacy Act of 1978 

(12 U.S.C. 3401 et seq.). 


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(B) TREATMENT OF COVERED PERSON OR SERVICE PRO- VIDER.—With respect to the application of any provision of 

the Right to Financial Privacy Act of 1978, to a disclosure 

by a covered person or service provider subject to this subsection, the covered person or service provider shall be 

treated as if it were a ‘‘financial institution’’, as defined in 

section 1101 of that Act (12 U.S.C. 3401). 

(d) ASSESSMENT OF SIGNIFICANT RULES.— (1) IN GENERAL.—The Bureau shall conduct an assessment of 

each significant rule or order adopted by the Bureau under 

Federal consumer financial law. The assessment shall address, 

among other relevant factors, the effectiveness of the rule or 

order in meeting the purposes and objectives of this title and 

the specific goals stated by the Bureau. The assessment shall 

reflect available evidence and any data that the Bureau reasonably may collect. 

(2) REPORTS.—The Bureau shall publish a report of its assessment under this subsection not later than 5 years after the 

effective date of the subject rule or order. 

(3) PUBLIC COMMENT REQUIRED.—Before publishing a report 

of its assessment, the Bureau shall invite public comment on 

recommendations for modifying, expanding, or eliminating the 

newly adopted significant rule or order. 

* * * * * * * 


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(17) 

1 Consumer Financial Protection Bureau, Docket No. CFPB–2018–0013, available at: https:// 

files.consumerfinance.gov/f/documents/cfpb_rfi_guidance-and-implementation_032018.pdf. 2 Id, at page 3. 3For example, see Nicholas R. Parrillo, ‘‘Federal Agency Guidance: An Institutional Perspective,’’ at 28 (Oct. 12, 2017) (Yale L. Sch.), available at: https://www.acus.gov/report/agency-guidance-final-report; and John F. Manning, ‘‘Nonlegislative Rules,’’ 72 Geo. Wash. L. Rev. 893, at 

914–15 (2004). 4 Hoctor v. USDA, 82 F.3d 165, 167 (7th Cir. 1996). 

MINORITY VIEWS 

H.R. 5534, the ‘‘Give Useful Information to Define Effective 

(‘‘GUIDE’’) Compliance Act,’’ would direct the Consumer Financial 

Protection Bureau (‘‘Consumer Bureau’’) to issue a formal rule in 

the Federal Register establishing a scheme for the issuance of guidance materials and activities to the general public, including regulated entities. Specifically, this rule would have to define: (1) each 

type of guidance that the Consumer Bureau will provide; (2) the 

criteria for selecting each of these types; (3) the time periods by 

which the Consumer Bureau will respond to requests for guidance; 

and (4) the process, including a public notice and comment, by 

which guidance can be revoked or rescinded, unless the Consumer 

Bureau determines that a comment period is not needed due to 

public exigency. 

We support considering ways that all Federal financial regulators, including the Consumer Bureau, could strengthen their 

guidance frameworks, and recognize this well-intended aim of H.R. 

5534. However, H.R. 5534 goes too far. 

The Consumer Bureau issues a wide variety of guidance, including interpretative rules, general statements of policy, and non-rule 

guidance. As underscored in the Consumer Bureau’s Request for 

Information (‘‘RFI’’) regarding its guidance implementation and 

support: 1

‘‘The Dodd-Frank Act transferred to the [Consumer] Bureau rulemaking authority that previously had been exercised by seven other Federal agencies. Those agencies used 

a variety of methods for providing guidance to industry on 

interpretive questions arising under the statutes and regulations they administered. Such guidance is ‘widely understood to be an essential instrument of [F]ederal administration’ and facilitates compliance with Federal law. In 

particular, it allows agencies to articulate their positions 

in a ‘relatively low cost and flexible’ way and facilitates 

stakeholders’ knowledge of agency positions and intentions 

ahead of enforcement or similar actions.’’ 2

In describing the importance of agencies’ flexible use of guidance 

materials in the RFI, the Consumer Bureau cited several sources,3

including Hoctor v. USDA,4 in which the Seventh Circuit Court of 

Appeals noted that ‘‘[i]t would be no favor to the public to discourVerDate Sep 11 2014 05:06 Dec 29, 2018 Jkt 089006 PO 00000 Frm 00017 Fmt 6604 Sfmt 6604 E:\HR\OC\HR1095.XXX HR1095

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5 Cmty. Nutrition Inst. v. Young, 818 F.2d. 943, 949 (D.C. Cir. 1987). 

age the announcement of agencies’ interpretations by burdening 

the interpretative process with cumbersome formalities’’. The RFI 

also pointed to Cmty. Nutrition Inst. v. Young,5 it which the D.C. 

Circuit Court of Appeals ‘‘[r]ecognize[d] that such guidelines have 

the not inconsiderate benefits of apprising the regulated community of the agencies’ interpretations as well as informing the exercise of discretion by agents and officers in the field.’’ 

We are concerned that the bill would mandate a complex and 

burdensome new scheme on the Consumer Bureau that would impose unprecedented administrative and operational constraints on 

the agency’s capacity to issue guidance. Limiting the agency’s use 

of guidance materials would unduly hamstring its ability to be nimble and responsive in communicating with the general public about 

how it interprets Federal consumer financial laws and force it to 

create a formal process for its guidance framework. We believe that 

H.R. 5534 would ultimately decrease, not promote, the overall effectiveness and accessibility of the Consumer Bureau’s guidance 

materials. 

We also are troubled with the broad liability shield created in the 

bill that would prohibit the Consumer Bureau from holding people 

who fail to comply with guidance, that has later been altered or rescinded, accountable for their misconduct, as long as they can assert that they have relied in good-faith on even outdated guidance 

materials. 

For these reasons, we oppose H.R. 5534. 

MAXINE WATERS. 

CAROLYN B. MALONEY. 

NYDIA M. VELA ́ ZQUEZ. 

WM. LACY CLAY. 

MICHAEL E. CAPUANO. 

CHARLIE CRIST. 

Æ 


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