Community Financial Institution Exemption Act

To provide an exemption from rules and regulations of the Bureau of Consumer Financial protection for community financial institutions, and for other purposes. 1. Short title This Act may be cited as the Community Financial Institution Exemption Act 2. Exemption for certain financial institutions Section 1022(b) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5512(b) (1) in paragraph (3), by amending the heading to read as follows: General exemptions (2) by redesignating paragraph (4) as paragraph (5); and (3) by inserting after paragraph (3) the following: (4) Specific exemption for certain financial institutions (A) In general An insured depository institution or credit union with less than $50,000,000,000 in consolidated assets shall be exempt from all rules and regulations issued by the Bureau. (B) Exception The Bureau may revoke an exemption provided under subparagraph (A) with respect to a specific rule or regulation and a specific class of insured depository institutions or credit unions described in subparagraph (A) if— (i) the Bureau makes a detailed, written finding that such class of insured depository institutions or credit unions described in subparagraph (A) has engaged in a pattern or practice of activities that have been detrimental to the interests of consumers and are of a type that the specific rule or regulation is intended to address; (ii) the Bureau consults with the Federal banking agencies with respect to such revocation; and (iii) each Federal banking agency provides the Bureau with a written notice stating that the Federal banking agency agrees with such revocation. (C) Effective date; effect on prior rules (i) Effective date This paragraph shall take effect with respect to rules and regulations issued or modified after the date of enactment of this paragraph. (ii) Effect on prior rules This paragraph shall not prohibit the Bureau from modifying a rule or regulation issued prior to the date of enactment of this paragraph with respect to insured depository institutions or credit unions described in subparagraph (A) if the effect of such modification is to expand a current exemption or to reduce the costs and the regulatory burden associated with complying with such rule or regulation. (D) Federal banking agency defined For purposes of this paragraph, the term Federal banking agency . Amend the title so as to read: A bill to provide an exemption from rules and regulations of the Bureau of Consumer Financial Protection for certain financial institutions, and for other purposes. August 3, 2018 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Community Financial Institution Exemption Act This bill amends the Consumer Financial Protection Act of 2010 to exempt certain financial institutions from all rules and regulations issued by the Consumer Financial Protection Bureau (CFPB). Specifically, the bill exempts from regulation an insured depository institution or credit union with less than $50 billion in consolidated assets. Under specified circumstances, and with the written agreement of the Federal Reserve Board and other specified federal banking agencies, the CFPB may revoke such an exemption with respect to a certain rule or regulation and a specific class of institutions.