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(d) COMPENSATION AND TRAVEL EXPENSES.—Mem-
bers of the Consumer Advisory Board who are not full-time 
employees of the United States shall— 
(1) be entitled to receive compensation at a rate 
fixed by the Director while attending meetings of the 
Consumer Advisory Board, including travel time; and 
(2) be allowed travel expenses, including trans-
portation and subsistence, while away from their 
homes or regular places of business. 
SEC. 1015. COORDINATION. 
The Bureau shall coordinate with the Commission, the 
Commodity Futures Trading Commission, the Federal 
Trade Commission, and other Federal agencies and State 
regulators, as appropriate, to promote consistent regulatory 
treatment of consumer financial and investment products 
and services. 
SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CON-
GRESS. 
(a) APPEARANCES BEFORE CONGRESS.—The Director 
of the Bureau shall appear before the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Represent-
atives at semi-annual hearings regarding the reports re-
quired under subsection (b).
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(b) REPORTS REQUIRED.—The Bureau shall, concur-
rent with each semi-annual hearing referred to in sub-
section (a), prepare and submit to the President and to the 
Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the 
House of Representatives, a report, beginning with the ses-
sion following the designated transfer date. 
(c) CONTENTS.—The reports required by subsection (b) 
shall include— 
(1) a discussion of the significant problems faced 
by consumers in shopping for or obtaining consumer 
financial products or services; 
(2) a justification of the budget request of the 
previous year; 
(3) a list of the significant rules and orders 
adopted by the Bureau, as well as other significant 
initiatives conducted by the Bureau, during the pre-
ceding year and the plan of the Bureau for rules, or-
ders, or other initiatives to be undertaken during the 
upcoming period; 
(4) an analysis of complaints about consumer fi-
nancial products or services that the Bureau has re-
ceived and collected in its central database on com-
plaints during the preceding year;
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(5) a list, with a brief statement of the issues, of 
the public supervisory and enforcement actions to 
which the Bureau was a party during the preceding 
year; 
(6) the actions taken regarding rules, orders, and 
supervisory actions with respect to covered persons 
which are not credit unions or depository institu-
tions; 
(7) an assessment of significant actions by State 
attorneys general or State regulators relating to Fed-
eral consumer financial law; and 
(8) an analysis of the efforts of the Bureau to 
fulfill the fair lending mission of the Bureau. 
SEC. 1017. FUNDING; PENALTIES AND FINES. 
(a) TRANSFER
OF FUNDS FROM BOARD OF GOV-
ERNORS.— 
(1) IN GENERAL.—Each year (or quarter of such 
year), beginning on the designated transfer date, and 
each quarter thereafter, the Board of Governors shall 
transfer to the Bureau from the combined earnings of 
the Federal Reserve System, the amount determined 
by the Director to be reasonably necessary to carry 
out the authorities of the Bureau under Federal con-
sumer financial law, taking into account such other
1241 
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sums made available to the Bureau from the pre-
ceding year (or quarter of such year). 
(2) FUNDING CAP.— 
(A) IN GENERAL.—Notwithstanding para-
graph (1), and in accordance with this para-
graph, the amount that shall be transferred to 
the Bureau in each fiscal year shall not exceed 
a fixed percentage of the total operating expenses 
of the Federal Reserve System, as reported in the 
Annual Report, 2009, of the Board of Governors, 
equal to— 
(i) 10 percent of such expenses in fiscal 
year 2011; 
(ii) 11 percent of such expenses in fis-
cal year 2012; and 
(iii) 12 percent of such expenses in fis-
cal year 2013, and in each year thereafter. 
(B) AMOUNT ADJUSTED FOR INFLATION.— 
The dollar amount referred to in subparagraph 
(A)(iii) shall be adjusted annually, using the 
percent by which the average urban consumer 
price index for the quarter preceding the date of 
the payment differs from the average of that 
index for the same quarter in the prior year.
1242 
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(3) TRANSITION PERIOD.—Beginning on the date 
of enactment of this Act and until the designated 
transfer date, the Board of Governors shall transfer to 
the Bureau the amount estimated by the Secretary 
needed to carry out the authorities granted to the Bu-
reau under Federal consumer financial law, from the 
date of enactment of this Act until the designated 
transfer date. 
(4) BUDGET AND FINANCIAL MANAGEMENT.— 
(A) FINANCIAL
OPERATING
PLANS
AND 
FORECASTS.—The Director shall provide to the 
Director of the Office of Management and Budget 
copies of the financial operating plans and fore-
casts of the Director, as prepared by the Director 
in the ordinary course of the operations of the 
Bureau, and copies of the quarterly reports of the 
financial condition and results of operations of 
the Bureau, as prepared by the Director in the 
ordinary course of the operations of the Bureau. 
(B) FINANCIAL STATEMENTS.—The Bureau 
shall prepare annually a statement of— 
(i) assets and liabilities and surplus or 
deficit; 
(ii) income and expenses; and 
(iii) sources and application of funds.
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(C) FINANCIAL
MANAGEMENT
SYSTEMS.— 
The Bureau shall implement and maintain fi-
nancial management systems that comply sub-
stantially with Federal financial management 
systems requirements and applicable Federal ac-
counting standards. 
(D) ASSERTION OF INTERNAL CONTROLS.— 
The Director 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 sub-
section may not be construed as implying any 
obligation on the part of the Director to consult 
with or obtain the consent or approval of the Di-
rector 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 af-
fairs or operations of the Bureau. 
(5) AUDIT OF THE BUREAU.— 
(A) IN GENERAL.—The Comptroller General 
shall annually audit the financial transactions
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of the Bureau in accordance with the United 
States generally accepted government auditing 
standards, as may be prescribed by the Comp-
troller General of the United States. The audit 
shall be conducted at the place or places where 
accounts of the Bureau are normally kept. The 
representatives of the Government Accountability 
Office shall have access to the personnel and to 
all books, accounts, documents, papers, records 
(including electronic records), reports, files, and 
all other papers, automated data, things, or 
property belonging to or under the control of or 
used or employed by the Bureau pertaining to its 
financial transactions and necessary to facilitate 
the audit, and such representatives shall be af-
forded full facilities for verifying transactions 
with the balances or securities held by deposi-
tories, fiscal agents, and custodians. All such 
books, accounts, documents, records, reports, files, 
papers, and property of the Bureau shall remain 
in possession and custody of the Bureau. The 
Comptroller General may obtain and duplicate 
any such books, accounts, documents, records, 
working papers, automated data and files, or 
other information relevant to such audit without
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cost to the Comptroller General, and the right of 
access of the Comptroller General to such infor-
mation shall be enforceable pursuant to section 
716(c) of title 31, United States Code. 
(B) REPORT.—The Comptroller General 
shall submit to the Congress a report of each an-
nual audit conducted under this subsection. The 
report to the Congress shall set forth the scope of 
the audit and shall include the statement of as-
sets and liabilities and surplus or deficit, the 
statement of income and expenses, the statement 
of sources and application of funds, and such 
comments and information as may be deemed 
necessary to inform Congress of the financial op-
erations and condition of the Bureau, together 
with such recommendations with respect thereto 
as the Comptroller General may deem advisable. 
A copy of each report shall be furnished to the 
President and to the Bureau at the time sub-
mitted to the Congress. 
(C) ASSISTANCE AND COSTS.—For the pur-
pose of conducting an audit under this sub-
section, the Comptroller General may, in the dis-
cretion of the Comptroller General, employ by 
contract, without regard to section 3709 of the
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Revised Statutes of the United States (41 U.S.C. 
5), professional services of firms and organiza-
tions of certified public accountants for tem-
porary periods or for special purposes. Upon the 
request of the Comptroller General, the Director 
of the Bureau shall transfer to the Government 
Accountability Office from funds available, the 
amount requested by the Comptroller General to 
cover the full costs of any audit and report con-
ducted by the Comptroller General. The Comp-
troller 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. 
(b) CONSUMER FINANCIAL PROTECTION FUND.— 
(1) SEPARATE
FUND
IN
FEDERAL
RESERVE 
BOARD
ESTABLISHED.—There is established in the 
Federal Reserve Board a separate fund, to be known 
as the ‘‘Consumer Financial Protection Fund’’ (re-
ferred to in this section as the ‘‘Bureau Fund’’). 
(2) FUND RECEIPTS.—All amounts transferred to 
the Bureau under subsection (a) shall be deposited 
into the Bureau Fund.
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(3) INVESTMENT AUTHORITY.— 
(A) AMOUNTS IN BUREAU FUND MAY BE IN-
VESTED.—The Bureau may request the Board of 
Governors to invest the portion of the Bureau 
Fund that is not, in the judgment of the Bureau, 
required to meet the current needs of the Bureau. 
(B) ELIGIBLE INVESTMENTS.—Investments 
authorized by this paragraph shall be made by 
the Board of Governors in obligations of the 
United States or obligations that are guaranteed 
as to principal and interest by the United 
States, with maturities suitable to the needs of 
the Bureau Fund, as determined by the Bureau. 
(C) INTEREST AND PROCEEDS CREDITED.— 
The interest on, and the proceeds from the sale 
or redemption of, any obligations held in the Bu-
reau Fund shall be credited to the Bureau Fund. 
(c) USE OF FUNDS.— 
(1) IN
GENERAL.—Funds obtained by, trans-
ferred to, or credited to the Bureau Fund shall be im-
mediately available to the Bureau and under the con-
trol of the Director, and shall remain available until 
expended, to pay the expenses of the Bureau in car-
rying out its duties and responsibilities. The com-
pensation of the Director and other employees of the
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Bureau and all other expenses thereof may be paid 
from, obtained by, transferred to, or credited to the 
Bureau Fund under this section. 
(2) 
FUNDS
THAT
ARE
NOT
GOVERNMENT 
FUNDS.—Funds obtained by or transferred to the Bu-
reau Fund shall not be construed to be Government 
funds or appropriated monies. 
(3) AMOUNTS
NOT
SUBJECT
TO
APPORTION-
MENT.—Notwithstanding any other provision of law, 
amounts in the Bureau Fund and in the Civil Pen-
alty Fund established under subsection (d) shall not 
be subject to apportionment for purposes of chapter 15 
of title 31, United States Code, or under any other 
authority. 
(d) PENALTIES AND FINES.— 
(1) 
ESTABLISHMENT
OF
VICTIMS
RELIEF 
FUND.—There is established in the Federal Reserve 
Board a fund to be known as the ‘‘Consumer Finan-
cial Protection Civil Penalty Fund’’ (referred to in 
this subsection as the ‘‘Civil Penalty Fund’’). If the 
Bureau obtains a civil penalty against any person in 
any judicial or administrative action under Federal 
consumer financial laws, the Bureau shall deposit 
into the Civil Penalty Fund, the amount of the pen-
alty collected.
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(2) PAYMENT TO VICTIMS.—Amounts in the Civil 
Penalty Fund shall be available to the Bureau, with-
out fiscal year limitation, for payments to the victims 
of activities for which civil penalties have been im-
posed under the Federal consumer financial laws. To 
the extent such victims cannot be located or such pay-
ments are otherwise not practicable, the Bureau may 
use such funds for the purpose of consumer education 
and financial literacy programs. 
SEC. 1018. EFFECTIVE DATE. 
This subtitle shall become effective on the date of enact-
ment of this Act. 
Subtitle B—General Powers of the 
Bureau 
SEC. 1021. PURPOSE, OBJECTIVES, AND FUNCTIONS. 
(a) PURPOSE.—The Bureau shall seek to implement 
and, where applicable, enforce Federal consumer financial 
law consistently for the purpose of ensuring that markets 
for consumer financial products and services are fair, 
transparent, and competitive. 
(b) OBJECTIVES.—The Bureau is authorized to exer-
cise its authorities under Federal consumer financial law 
for the purposes of ensuring that, with respect to consumer 
financial products and services—
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(1) consumers are provided with timely and un-
derstandable information to make responsible deci-
sions about financial transactions; 
(2) consumers are protected from unfair, decep-
tive, or abusive acts and practices and from discrimi-
nation; 
(3) outdated, unnecessary, or unduly burdensome 
regulations are regularly identified and addressed in 
order to reduce unwarranted regulatory burdens; 
(4) Federal consumer financial law is enforced 
consistently, without regard to the status of a person 
as a depository institution, in order to promote fair 
competition; and 
(5) markets for consumer financial products and 
services operate transparently and efficiently to facili-
tate access and innovation. 
(c) FUNCTIONS.—The primary functions of the Bureau 
are— 
(1) conducting financial education programs; 
(2) collecting, investigating, and responding to 
consumer complaints; 
(3) collecting, researching, monitoring, and pub-
lishing information relevant to the functioning of 
markets for consumer financial products and services
1251 
† HR 4173 PP
to identify risks to consumers and the proper func-
tioning of such markets; 
(4) subject to sections 1024 through 1026, super-
vising covered persons for compliance with Federal 
consumer financial law, and taking appropriate en-
forcement action to address violations of Federal con-
sumer financial law; 
(5) issuing rules, orders, and guidance imple-
menting Federal consumer financial law; and 
(6) performing such support activities as may be 
necessary or useful to facilitate the other functions of 
the Bureau. 
SEC. 1022. RULEMAKING AUTHORITY. 
(a) IN GENERAL.—The Bureau is authorized to exer-
cise its authorities under Federal consumer financial law 
to administer, enforce, and otherwise implement the provi-
sions 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 pre-
vent evasions thereof.
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(2) STANDARDS
FOR
RULEMAKING.—In pre-
scribing a rule under the Federal consumer financial 
laws— 
(A) the Bureau shall consider the potential 
benefits and costs to consumers and covered per-
sons, including the potential reduction of access 
by consumers to consumer financial products or 
services resulting from such rule; 
(B) the Bureau shall consult with the ap-
propriate prudential regulators or other Federal 
agencies prior to proposing a rule and during 
the comment process regarding consistency with 
prudential, market, or systemic objectives admin-
istered by such agencies; and 
(C) if, during the consultation process de-
scribed in subparagraph (B), a prudential regu-
lator provides the Bureau with a written objec-
tion to the proposed rule of the Bureau or a por-
tion thereof, the Bureau shall include in the 
adopting release a description of the objection 
and the basis for the Bureau decision, if any, re-
garding such objection, except that nothing in 
this clause shall be construed as altering or lim-
iting the procedures under section 1023 that may 
apply to any rule prescribed by the Bureau.
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† HR 4173 PP
(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 rule 
issued under this title, as the Bureau determines 
necessary or appropriate to carry out the pur-
poses and objectives of this title, taking into con-
sideration 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 cov-
ered persons; 
(ii) the volume of transactions involv-
ing consumer financial products or services 
in which the class of covered persons en-
gages; 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.
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(4) EXCLUSIVE RULEMAKING AUTHORITY.—Not-
withstanding 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 pur-
poses 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. 
(c) MONITORING.— 
(1) IN GENERAL.—In order to support its rule-
making and other functions, the Bureau shall monitor 
for risks to consumers in the offering or provision of 
consumer financial products or services, including de-
velopments in markets for such products or services. 
(2) CONSIDERATIONS.—In allocating its re-
sources to perform the monitoring required by this 
section, the Bureau may consider, among other fac-
tors— 
(A) likely risks and costs to consumers asso-
ciated with buying or using a type of consumer 
financial product or service;
1255 
† HR 4173 PP
(B) understanding by consumers of the risks 
of a type of consumer financial product or serv-
ice; 
(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 provi-
sion of a consumer financial product or service; 
(E) the extent, if any, to which the risks of 
a consumer financial product or service may dis-
proportionately 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 serv-
ice. 
(3) REPORTS.—The Bureau shall publish not 
fewer than 1 report of significant findings of its mon-
itoring required by this subsection in each calendar 
year, beginning with the first calendar year that be-
gins at least 1 year after the designated transfer date. 
(4) COLLECTION
OF
INFORMATION.—In con-
ducting research on the offering and provision of con-
sumer financial products or services, the Bureau shall
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† HR 4173 PP
have the authority to gather information from time to 
time regarding the organization, business conduct, 
markets, and activities of persons operating in con-
sumer financial services markets. In order to gather 
such information, the Bureau may— 
(A) gather and compile information from 
examination reports concerning covered persons 
or service providers, assessment of consumer com-
plaints, surveys, and interviews of covered per-
sons and consumers, and review of available 
databases; 
(B) require persons to file with the Bureau, 
under oath or otherwise, in such form and with-
in such reasonable period of time as the Bureau 
may prescribe, by rule or order, annual or spe-
cial reports, or answers in writing to specific 
questions, furnishing such information as the 
Bureau may require; and 
(C) make public such information obtained 
by the Bureau under this section, as is in the 
public interest in reports or otherwise in the 
manner best suited for public information and 
use. 
(5) CONFIDENTIALITY RULES.—The Bureau shall 
prescribe rules regarding the confidential treatment of
1257 
† HR 4173 PP
information obtained from persons in connection with 
the exercise of its authorities under Federal consumer 
financial law. 
(A) ACCESS BY THE BUREAU TO REPORTS 
OF OTHER REGULATORS.— 
(i) EXAMINATION AND FINANCIAL CON-
DITION REPORTS.—Upon providing reason-
able assurances of confidentiality, the Bu-
reau shall have access to any report of ex-
amination or financial condition made by a 
prudential regulator or other Federal agen-
cy 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 regu-
lator or other Federal agency having juris-
diction over a covered person or service pro-
vider may, in its discretion, furnish to the 
Bureau any other report or other confiden-
tial supervisory information concerning 
any insured depository institution, credit 
union, or other entity examined by such
1258 
† HR 4173 PP
agency under authority of any provision of 
Federal law. 
(B) ACCESS BY OTHER REGULATORS TO RE-
PORTS OF THE BUREAU.— 
(i) 
EXAMINATION
REPORTS.—Upon 
providing reasonable assurances of confiden-
tiality, a prudential regulator, a State reg-
ulator, 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 re-
spect to such person, and to all revisions 
made to any such report. 
(ii) PROVISION OF OTHER REPORTS TO 
OTHER REGULATORS.—In addition to the 
reports described in clause (i), the Bureau 
may, in its discretion, furnish to a pruden-
tial regulator or other agency having juris-
diction over a covered person or service pro-
vider 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.
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(6) PRIVACY CONSIDERATIONS.—In collecting in-
formation from any person, publicly releasing infor-
mation held by the Bureau, or requiring covered per-
sons 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. 
(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 meet-
ing 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 re-
port 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 pub-
lishing a report of its assessment, the Bureau shall in-
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† HR 4173 PP
vite public comment on recommendations for modi-
fying, expanding, or eliminating the newly adopted 
significant rule or order. 
(e) INFORMATION GATHERING.—In conducting any 
monitoring or assessment required by this section, the Bu-
reau may gather information through a variety of methods, 
including by conducting surveys or interviews of consumers. 
SEC. 1023. REVIEW OF BUREAU REGULATIONS. 
(a) REVIEW OF BUREAU REGULATIONS.—On the peti-
tion of a member agency of the Council, the Council may 
set aside a final regulation prescribed by the Bureau, or 
any provision thereof, if the Council decides, in accordance 
with subsection (c), that the regulation or provision would 
put the safety and soundness of the United States banking 
system or the stability of the financial system of the United 
States at risk. 
(b) PETITION.— 
(1) PROCEDURE.—An agency represented by a 
member of the Council may petition the Council, in 
writing, and in accordance with rules prescribed pur-
suant to subsection (f), to stay the effectiveness of, or 
set aside, a regulation if the member agency filing the 
petition— 
(A) has in good faith attempted to work 
with the Bureau to resolve concerns regarding
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† HR 4173 PP
the effect of the rule on the safety and soundness 
of the United States banking system or the sta-
bility of the financial system of the United 
States; and 
(B) files the petition with the Council not 
later than 10 days after the date on which the 
regulation has been published in the Federal 
Register. 
(2) PUBLICATION.—Any petition filed with the 
Council under this section shall be published in the 
Federal Register and transmitted contemporaneously 
with filing to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives. 
(c) STAYS AND SET ASIDES.— 
(1) STAY.— 
(A) IN GENERAL.—Upon the request of any 
member agency, the Chairperson of the Council 
may stay the effectiveness of a regulation for the 
purpose of allowing appropriate consideration of 
the petition by the Council. 
(B) EXPIRATION.—A stay issued under this 
paragraph shall expire on the earlier of— 
(i) 90 days after the date of filing of 
the petition under subsection (b); or
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† HR 4173 PP
(ii) the date on which the Council 
makes a decision under paragraph (3). 
(2) NO ADVERSE INFERENCE.—After the expira-
tion of any stay imposed under this section, no infer-
ence shall be drawn regarding the validity or enforce-
ability of a regulation which was the subject of the pe-
tition. 
(3) VOTE.— 
(A) IN GENERAL.—The decision to issue a 
stay of, or set aside, any regulation under this 
section shall be made only with the affirmative 
vote in accordance with subparagraph (B) of 2⁄3 
of the members of the Council then serving. 
(B) AUTHORIZATION TO VOTE.—A member 
of the Council may vote to stay the effectiveness 
of, or set aside, a final regulation prescribed by 
the Bureau only if the agency or department 
represented by that member has— 
(i) considered any relevant informa-
tion provided by the agency submitting the 
petition and by the Bureau; and 
(ii) made an official determination, at 
a public meeting where applicable, that the 
regulation which is the subject of the peti-
tion would put the safety and soundness of
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† HR 4173 PP
the United States banking system or the 
stability of the financial system of the 
United States at risk. 
(4) DECISIONS TO SET ASIDE.— 
(A) EFFECT OF DECISION.—A decision by 
the Council to set aside a regulation prescribed 
by the Bureau, or provision thereof, shall render 
such regulation, or provision thereof, unenforce-
able. 
(B) TIMELY ACTION REQUIRED.—The Coun-
cil may not issue a decision to set aside a regu-
lation, or provision thereof, which is the subject 
of a petition under this section after the expira-
tion of the later of— 
(i) 45 days following the date of filing 
of the petition, unless a stay is issued under 
paragraph (1); or 
(ii) the expiration of a stay issued by 
the Council under this section. 
(C) SEPARATE AUTHORITY.—The issuance 
of a stay under this section does not affect the 
authority of the Council to set aside a regula-
tion. 
(5) DISMISSAL DUE TO INACTION.—A petition 
under this section shall be deemed dismissed if the
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† HR 4173 PP
Council has not issued a decision to set aside a regu-
lation, or provision thereof, within the period for 
timely action under paragraph (4)(B). 
(6) PUBLICATION OF DECISION.—Any decision 
under this subsection to issue a stay of, or set aside, 
a regulation or provision thereof shall be published by 
the Council in the Federal Register as soon as prac-
ticable after the decision is made, with an expla-
nation of the reasons for the decision. 
(7) RULEMAKING PROCEDURES INAPPLICABLE.— 
The notice and comment procedures under section 553 
of title 5, United States Code, shall not apply to any 
decision under this section of the Council to issue a 
stay of, or set aside, a regulation. 
(8) JUDICIAL
REVIEW
OF
DECISIONS
BY
THE 
COUNCIL.—A decision by the Council to set aside a 
regulation prescribed by the Bureau, or provision 
thereof, shall be subject to review under chapter 7 of 
title 5, United States Code. 
(d) APPLICATION OF OTHER LAW.—Nothing in this 
section shall be construed as altering, limiting, or restrict-
ing the application of any other provision of law, except 
as otherwise specifically provided in this section, including 
chapter 5 and chapter 7 of title 5, United States Code, to
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† HR 4173 PP
a regulation which is the subject of a petition filed under 
this section. 
(e) SAVINGS CLAUSE.—Nothing in this section shall be 
construed as limiting or restricting the Bureau from engag-
ing in a rulemaking in accordance with applicable law. 
(f) IMPLEMENTING RULES.—The Council shall pre-
scribe procedural rules to implement this section. 
SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED 
PERSONS. 
(a) SCOPE OF COVERAGE.— 
(1) APPLICABILITY.—Notwithstanding any other 
provision of this title, and except as provided in 
paragraph (3), this section shall apply to any covered 
person who— 
(A) offers or provides origination, broker-
age, or servicing of loans secured by real estate 
for use by consumers primarily for personal, 
family, or household purposes, or loan modifica-
tion or foreclosure relief services in connection 
with such loans; or 
(B) is a larger participant of a market for 
other consumer financial products or services, as 
defined by rule in accordance with paragraph 
(2).
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(2) RULEMAKING TO DEFINE COVERED PERSONS 
SUBJECT TO THIS SECTION.—The Bureau shall con-
sult with the Federal Trade Commission prior to 
issuing a rule to define covered persons subject to this 
section, in accordance with paragraph (1)(B). The 
Bureau shall issue its initial rule within 1 year of the 
designated transfer date. 
(3) RULES OF CONSTRUCTION.— 
(A) CERTAIN
PERSONS
EXCLUDED.—This 
section shall not apply to persons described in 
section 1025(a) or 1026(a). 
(B) ACTIVITY
LEVELS.—For purposes of 
computing activity levels under paragraph (1) or 
rules issued thereunder, activities of affiliated 
companies (other than insured depository insti-
tutions or insured credit unions) shall be aggre-
gated. 
(b) SUPERVISION.— 
(1) IN GENERAL.—The Bureau shall require re-
ports and conduct examinations on a periodic basis 
of persons described in subsection (a)(1) for purposes 
of— 
(A) assessing compliance with the require-
ments of Federal consumer financial law;
1267 
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(B) obtaining information about the activi-
ties and compliance systems or procedures of 
such person; and 
(C) detecting and assessing risks to con-
sumers and to markets for consumer financial 
products and services. 
(2) RISK-BASED
SUPERVISION
PROGRAM.—The 
Bureau shall exercise its authority under paragraph 
(1) in a manner designed to ensure that such exercise, 
with respect to persons described in subsection (a)(1), 
is based on the assessment by the Bureau of the risks 
posed to consumers in the relevant product markets 
and geographic markets, and taking into consider-
ation, as applicable— 
(A) the asset size of the covered person; 
(B) the volume of transactions involving 
consumer financial products or services in which 
the covered person engages; 
(C) the risks to consumers created by the 
provision of such consumer financial products or 
services; 
(D) the extent to which such institutions are 
subject to oversight by State authorities for con-
sumer protection; and
1268 
† HR 4173 PP
(E) any other factors that the Bureau deter-
mines to be relevant to a class of covered persons. 
(3) COORDINATION.—To minimize regulatory 
burden, the Bureau shall coordinate its supervisory 
activities with the supervisory activities conducted by 
prudential regulators and the State bank regulatory 
authorities, including establishing their respective 
schedules for examining persons described in sub-
section (a)(1) and requirements regarding reports to 
be submitted by such persons. 
(4) USE OF EXISTING REPORTS.—The Bureau 
shall, to the fullest extent possible, use— 
(A) reports pertaining to persons described 
in subsection (a)(1) that have been provided or 
required to have been provided to a Federal or 
State agency; and 
(B) information that has been reported pub-
licly. 
(5) PRESERVATION OF AUTHORITY.—Nothing in 
this title may be construed as limiting the authority 
of the Director to require reports from persons de-
scribed in subsection (a)(1), as permitted under para-
graph (1), regarding information owned or under the 
control of such person, regardless of whether such in-
1269 
† HR 4173 PP
formation is maintained, stored, or processed by an-
other person. 
(6) REPORTS OF TAX LAW NONCOMPLIANCE.— 
The Bureau shall provide the Commissioner of Inter-
nal Revenue with any report of examination or re-
lated information identifying possible tax law non-
compliance. 
(7) 
REGISTRATION, 
RECORDKEEPING, 
AND 
OTHER REQUIREMENTS FOR CERTAIN PERSONS.— 
(A) IN GENERAL.—The Bureau shall pre-
scribe rules to facilitate supervision of persons 
described in subsection (a)(1) and assessment 
and detection of risks to consumers. 
(B) REGISTRATION.— 
(i) IN
GENERAL.—The Bureau shall 
prescribe rules regarding registration re-
quirements for persons described in sub-
section (a)(1). 
(ii) EXCEPTION
FOR
RELATED
PER-
SONS.—The Bureau may not impose re-
quirements under this section regarding the 
registration of a related person. 
(iii) REGISTRATION
INFORMATION.— 
Subject to rules prescribed by the Bureau, 
the Bureau shall publicly disclose the reg-
1270 
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istration information about persons de-
scribed in subsection (a)(1) to facilitate the 
ability of consumers to identify persons de-
scribed in subsection (a)(1) registered with 
the Bureau. 
(C) RECORDKEEPING.—The Bureau may 
require a person described in subsection (a)(1), 
to generate, provide, or retain records for the 
purposes of facilitating supervision of such per-
sons and assessing and detecting risks to con-
sumers. 
(D) REQUIREMENTS CONCERNING OBLIGA-
TIONS.—The Bureau may prescribe rules regard-
ing a person described in subsection (a)(1), to 
ensure that such persons are legitimate entities 
and are able to perform their obligations to con-
sumers. Such requirements may include back-
ground checks for principals, officers, directors, 
or key personnel and bonding or other appro-
priate financial requirements. 
(E) CONSULTATION
WITH
STATE
AGEN-
CIES.—In developing and implementing require-
ments under this paragraph, the Bureau shall 
consult with State agencies regarding require-
ments or systems (including coordinated or com-
1271 
† HR 4173 PP
bined systems for registration), where appro-
priate. 
(c) ENFORCEMENT AUTHORITY.— 
(1) THE BUREAU TO HAVE ENFORCEMENT AU-
THORITY.—Except as provided in paragraph (3) and 
section 1061(b)(5), with respect to any person de-
scribed in subsection (a)(1), to the extent that Federal 
law authorizes the Bureau and another Federal agen-
cy to enforce Federal consumer financial law, the Bu-
reau shall have exclusive authority to enforce that 
Federal consumer financial law. 
(2) REFERRAL.—Any Federal agency authorized 
to enforce a Federal consumer financial law described 
in paragraph (1) may recommend in writing to the 
Bureau that the Bureau initiate an enforcement pro-
ceeding, as the Bureau is authorized by that Federal 
law or by this title. 
(3) COORDINATION WITH THE FEDERAL TRADE 
COMMISSION.— 
(A) IN
GENERAL.—The Bureau and the 
Federal Trade Commission shall negotiate an 
agreement for coordinating with respect to en-
forcement actions by each agency regarding the 
offering or provision of consumer financial prod-
ucts or services by any covered person that is de-
1273 
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(II) file petitions for appeal in 
such actions. 
(C) AGREEMENT TERMS.—The terms of any 
agreement negotiated under subparagraph (A) 
may modify or supersede the provisions of sub-
paragraph (B). 
(D) DEADLINE.—The agencies shall reach 
the agreement required under subparagraph (A) 
not later than 6 months after the designated 
transfer date. 
(d) EXCLUSIVE RULEMAKING AND EXAMINATION AU-
THORITY.—Notwithstanding any other provision of Federal 
law and except as provided in section 1061(b)(5), to the 
extent that Federal law authorizes the Bureau and another 
Federal agency to issue regulations or guidance, conduct ex-
aminations, or require reports from a person described in 
subsection (a)(1) under such 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, issue guidance, conduct exami-
nations, require reports, or issue exemptions with regard 
to a person described in subsection (a)(1), subject to those 
provisions of law. 
(e) SERVICE PROVIDERS.—A service provider to a per-
son described in subsection (a)(1) shall be subject to the au-
1274 
† HR 4173 PP
thority of the Bureau under this section, to the same extent 
as if such service provider were engaged in a service rela-
tionship with a bank, and the Bureau were an appropriate 
Federal banking agency under section 7(c) of the Bank 
Service Company Act (12 U.S.C. 1867(c)). In conducting 
any examination or requiring any report from a service 
provider subject to this subsection, the Bureau shall coordi-
nate with the appropriate prudential regulator, as applica-
ble. 
(f) PRESERVATION OF FARM CREDIT ADMINISTRATION 
AUTHORITY.—No provision of this title may be construed 
as modifying, limiting, or otherwise affecting the authority 
of the Farm Credit Administration. 
SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS 
ASSOCIATIONS, AND CREDIT UNIONS. 
(a) SCOPE OF COVERAGE.— 
(1) APPLICABILITY.—This section shall apply to 
any covered person that is— 
(A) an insured depository institution with 
total assets of more than $10,000,000,000 and 
any affiliate thereof; or 
(B) an insured credit union with total as-
sets of more than $10,000,000,000 and any affil-
iate thereof.
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(2) RULE OF CONSTRUCTION.—For purposes of 
determining total assets under this section and section 
1026, the Bureau shall rely on the same regulations 
and interim methodologies specified in section 312(e). 
(b) SUPERVISION.— 
(1) IN GENERAL.—The Bureau shall require re-
ports and conduct examinations on a periodic basis 
of persons described in subsection (a) for purposes 
of— 
(A) assessing compliance with the require-
ments of Federal consumer financial laws; 
(B) obtaining information about the activi-
ties and compliance systems or procedures of 
such persons; and 
(C) detecting and assessing risks to con-
sumers and to markets for consumer financial 
products and services. 
(2) COORDINATION.—To minimize regulatory 
burden, the Bureau shall coordinate its supervisory 
activities with the supervisory activities conducted by 
prudential regulators and the State bank regulatory 
authorities, including establishing their respective 
schedules for examining such persons described in 
subsection (a) and requirements regarding reports to 
be submitted by such persons.
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(3) USE OF EXISTING REPORTS.—The Bureau 
shall, to the fullest extent possible, use— 
(A) reports pertaining to a person described 
in subsection (a) that have been provided or re-
quired to have been provided to a Federal or 
State agency; and 
(B) information that has been reported pub-
licly. 
(4) PRESERVATION OF AUTHORITY.—Nothing in 
this title may be construed as limiting the authority 
of the Director to require reports from a person de-
scribed in subsection (a), as permitted under para-
graph (1), regarding information owned or under the 
control of such person, regardless of whether such in-
formation is maintained, stored, or processed by an-
other person. 
(5) REPORTS OF TAX LAW NONCOMPLIANCE.— 
The Bureau shall provide the Commissioner of Inter-
nal Revenue with any report of examination or re-
lated information identifying possible tax law non-
compliance. 
(c) PRIMARY ENFORCEMENT AUTHORITY.— 
(1) THE BUREAU TO HAVE PRIMARY ENFORCE-
MENT AUTHORITY.—To the extent that the Bureau 
and another Federal agency are authorized to enforce
1277 
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a Federal consumer financial law, the Bureau shall 
have primary authority to enforce that Federal con-
sumer financial law with respect to any person de-
scribed in subsection (a). 
(2) REFERRAL.—Any Federal agency, other than 
the Federal Trade Commission, that is authorized to 
enforce a Federal consumer financial law may rec-
ommend, in writing, to the Bureau that the Bureau 
initiate an enforcement proceeding with respect to a 
person described in subsection (a), as the Bureau is 
authorized to do by that Federal consumer financial 
law. 
(3) BACKUP
ENFORCEMENT
AUTHORITY
OF 
OTHER FEDERAL AGENCY.—If the Bureau does not, 
before the end of the 120-day period beginning on the 
date on which the Bureau receives a recommendation 
under paragraph (2), initiate an enforcement pro-
ceeding, the other agency referred to in paragraph (2) 
may initiate an enforcement proceeding, as permitted 
by the subject provision of Federal law. 
(d) SERVICE PROVIDERS.—A service provider to a per-
son described in subsection (a) shall be subject to the author-
ity of the Bureau under this section, to the same extent as 
if the Bureau were an appropriate Federal banking agency 
under section 7(c) of the Bank Service Company Act 12
1278 
† HR 4173 PP
U.S.C. 1867(c). In conducting any examination or requir-
ing any report from a service provider subject to this sub-
section, the Bureau shall coordinate with the appropriate 
prudential regulator. 
(e) SIMULTANEOUS AND COORDINATED SUPERVISORY 
ACTION.— 
(1) EXAMINATIONS.—A prudential regulator and 
the Bureau shall, with respect to each insured deposi-
tory institution, insured credit union, or other cov-
ered person described in subsection (a) that is super-
vised by the prudential regulator and the Bureau, re-
spectively— 
(A) coordinate the scheduling of examina-
tions of the insured depository institution, in-
sured credit union, or other covered person de-
scribed in subsection (a); 
(B) conduct simultaneous examinations of 
each insured depository institution, insured cred-
it union, or other covered person described in 
subsection (a), unless such institution requests 
examinations to be conducted separately; 
(C) share each draft report of examination 
with the other agency and permit the receiving 
agency a reasonable opportunity (which shall not 
be less than a period of 30 days after the date
1279 
† HR 4173 PP
of receipt) to comment on the draft report before 
such report is made final; and 
(D) prior to issuing a final report of exam-
ination or taking supervisory action, take into 
consideration concerns, if any, raised in the 
comments made by the other agency. 
(2) COORDINATION WITH STATE BANK SUPER-
VISORS.—The Bureau shall pursue arrangements and 
agreements with State bank supervisors to coordinate 
examinations, consistent with paragraph (1). 
(3) AVOIDANCE OF CONFLICT IN SUPERVISION.— 
(A) REQUEST.—If the proposed supervisory 
determinations of the Bureau and a prudential 
regulator (in this section referred to collectively 
as the ‘‘agencies’’) are conflicting, an insured de-
pository institution, insured credit union, or 
other covered person described in subsection (a) 
may request the agencies to coordinate and 
present a joint statement of coordinated super-
visory action. 
(B) JOINT STATEMENT.—The agencies shall 
provide a joint statement under subparagraph 
(A), not later than 30 days after the date of re-
ceipt of the request of the insured depository in-
1280 
† HR 4173 PP
stitution, credit union, or covered person de-
scribed in subsection (a). 
(4) APPEALS TO GOVERNING PANEL.— 
(A) IN GENERAL.—If the agencies do not re-
solve the conflict or issue a joint statement re-
quired by subparagraph (B), or if either of the 
agencies takes or attempts to take any super-
visory action relating to the request for the joint 
statement without the consent of the other agen-
cy, an insured depository institution, insured 
credit union, or other covered person described in 
subsection (a) may institute an appeal to a gov-
erning panel, as provided in this subsection, not 
later than 30 days after the expiration of the pe-
riod during which a joint statement is required 
to be filed under paragraph (3)(B). 
(B) COMPOSITION OF GOVERNING PANEL.— 
The governing panel for an appeal under this 
paragraph shall be composed of— 
(i) a representative from the Bureau 
and a representative of the prudential regu-
lator, both of whom— 
(I) have not participated in the 
material supervisory determinations 
under appeal; and
1281 
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(II) do not directly or indirectly 
report to the person who participated 
materially in the supervisory deter-
minations under appeal; and 
(ii) one individual representative, to be 
determined on a rotating basis, from among 
the Board of Governors, the Corporation, 
the National Credit Union Administration, 
and the Office of the Comptroller of the Cur-
rency, other than any agency involved in 
the subject dispute. 
(C) CONDUCT OF APPEAL.—In an appeal 
under this paragraph— 
(i) the insured depository institution, 
insured credit union, or other covered per-
son described in subsection (a)— 
(I) shall include in its appeal all 
the facts and legal arguments per-
taining to the matter; and 
(II) may, through counsel, em-
ployees, or representatives, appear be-
fore the governing panel in person or 
by telephone; and 
(ii) the governing panel—
1282 
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(I) may request the insured depos-
itory institution, insured credit union, 
or other covered person described in 
subsection (a), the Bureau, or the pru-
dential regulator to produce additional 
information relevant to the appeal; 
and 
(II) by a majority vote of its 
members, shall provide a final deter-
mination, in writing, not later than 30 
days after the date of filing of an 
informationally complete appeal, or 
such longer period as the panel and the 
insured depository institution, insured 
credit union, or other covered person 
described in subsection (a) may jointly 
agree. 
(D) PUBLIC AVAILABILITY OF DETERMINA-
TIONS.—A governing panel shall publish all in-
formation contained in a determination by the 
governing panel, with appropriate redactions of 
information that would be subject to an exemp-
tion from disclosure under section 552 of title 5, 
United States Code.
1283 
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(E) PROHIBITION AGAINST RETALIATION.— 
The Bureau and the prudential regulators shall 
prescribe rules to provide safeguards from retal-
iation against the insured depository institution, 
insured credit union, or other covered person de-
scribed in subsection (a) instituting an appeal 
under this paragraph, as well as their officers 
and employees. 
(F) LIMITATION.—The process provided in 
this paragraph shall not apply to a determina-
tion by a prudential regulator to appoint a con-
servator or receiver for an insured depository in-
stitution or a liquidating agent for an insured 
credit union, as the case may be, or a decision 
to take action pursuant to section 38 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831o) or 
section 212 of the Federal Credit Union Act (112 
U.S.C. 1790a), as applicable. 
(G) EFFECT ON OTHER AUTHORITY.—Noth-
ing in this section shall modify or limit the au-
thority of the Bureau to interpret, or take en-
forcement action under, any Federal consumer 
financial law.
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SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND 
CREDIT UNIONS. 
(a) SCOPE OF COVERAGE.—This section shall apply 
to any covered person that is— 
(1) an insured depository institution with total 
assets of $10,000,000,000 or less; or 
(2) an insured credit union with total assets of 
$10,000,000,000 or less. 
(b) REPORTS.—The Director 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) USE OF EXISTING REPORTS.—The Bureau 
shall, to the fullest extent possible, use— 
(A) reports pertaining to a person described 
in subsection (a) that have been provided or re-
quired to have been provided to a Federal or 
State agency; and 
(B) information that has been reported pub-
licly. 
(2) PRESERVATION OF AUTHORITY.—Nothing in 
this subsection may be construed as limiting the au-
thority of the Director from requiring from a person 
described in subsection (a), as permitted under para-
1285 
† HR 4173 PP
graph (1), information owned or under the control of 
such person, regardless of whether such information is 
maintained, stored, or processed by another person. 
(3) REPORTS OF TAX LAW NONCOMPLIANCE.— 
The Bureau shall provide the Commissioner of Inter-
nal Revenue with any report of examination or re-
lated information identifying possible tax law non-
compliance. 
(c) EXAMINATIONS.— 
(1) IN GENERAL.—The Bureau may, at its dis-
cretion, include examiners on a sampling basis of the 
examinations performed by the prudential regulator 
of persons described in subsection (a). 
(2) AGENCY
COORDINATION.—The prudential 
regulator shall— 
(A) provide all reports, records, and docu-
mentation related to the examination process for 
any institution included in the sample referred 
to in paragraph (1) to the Bureau on a timely 
and continual basis; 
(B) involve such Bureau examiner in the 
entire examination process for such person; and 
(C) consider input of the Bureau concerning 
the scope of an examination, conduct of the ex-
amination, the contents of the examination re-
1286 
† HR 4173 PP
port, the designation of matters requiring atten-
tion, and examination ratings. 
(d) ENFORCEMENT.— 
(1) IN GENERAL.—Except for requiring reports 
under subsection (b), the prudential regulator shall 
have exclusive authority to enforce compliance with 
respect to a person described in subsection (a). 
(2) COORDINATION
WITH
PRUDENTIAL
REGU-
LATOR.— 
(A) REFERRAL.—When the Bureau has rea-
son to believe that a person described in sub-
section (a) has engaged in a material violation 
of a Federal consumer financial law, the Bureau 
shall notify the prudential regulator in writing 
and recommend appropriate action to respond. 
(B) RESPONSE.—Upon receiving a rec-
ommendation under subparagraph (A), the pru-
dential regulator shall provide a written re-
sponse to the Bureau not later than 60 days 
thereafter. 
(e) SERVICE PROVIDERS.—A service provider to a sub-
stantial number of persons described in subsection (a) shall 
be subject to the authority of the Bureau under section 1025 
to the same extent as if the Bureau were an appropriate 
Federal bank agency under section 7(c) of the Bank Service
1287 
† HR 4173 PP
Company Act (12 U.S.C. 1867(c)). When conducting any 
examination or requiring any report from a service pro-
vider subject to this subsection, the Bureau shall coordinate 
with the appropriate prudential regulator. 
SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU; 
PRESERVATION OF AUTHORITIES. 
(a) EXCLUSION FOR MERCHANTS, RETAILERS, AND 
OTHER SELLERS
OF NONFINANCIAL GOODS
OR SERV-
ICES.— 
(1) SALE
OR
BROKERAGE
OF
NONFINANCIAL 
GOOD OR SERVICE.—The Bureau may not exercise 
any rulemaking, supervisory, enforcement or other 
authority under this title with respect to a person 
who is a merchant, retailer, or seller of any non-
financial good or service and is engaged in the sale 
or brokerage of such nonfinancial good or service, ex-
cept to the extent that such person is engaged in offer-
ing or providing any consumer financial product or 
service, or is otherwise subject to any enumerated con-
sumer law or any law for which authorities are 
transferred under subtitle F or H. 
(2) OFFERING OR PROVISION OF CERTAIN CON-
SUMER FINANCIAL PRODUCTS OR SERVICES IN CON-
NECTION WITH THE SALE OR BROKERAGE OF NON-
FINANCIAL GOOD OR SERVICE.—
1288 
† HR 4173 PP
(A) IN GENERAL.—Except as provided in 
subparagraph (B), and subject to subparagraph 
(C), the Bureau may not exercise any rule-
making, supervisory, enforcement, or other au-
thority under this title with respect to a mer-
chant, retailer, or seller of nonfinancial goods or 
services, but only to the extent that such per-
son— 
(i) extends credit directly to a con-
sumer, in a case in which the good or serv-
ice being provided is not itself a consumer 
financial product or service (other than 
credit described in this subparagraph), ex-
clusively for the purpose of enabling that 
consumer to purchase such nonfinancial 
good or service directly from the merchant, 
retailer, or seller; 
(ii) directly, or through an agreement 
with another person, collects debt arising 
from credit extended as described in clause 
(i); or 
(iii) sells or conveys debt described in 
clause (i) that is delinquent or otherwise in 
default.
1289 
† HR 4173 PP
(B) 
APPLICABILITY.—Subparagraph 
(A) 
does not apply to any credit transaction or col-
lection of debt, other than as described in sub-
paragraph (C)(i), arising from a transaction de-
scribed in subparagraph (A)— 
(i) in which the merchant, retailer, or 
seller of nonfinancial goods or services as-
signs, sells or otherwise conveys to another 
person such debt owed by the consumer (ex-
cept for a sale of debt that is delinquent or 
otherwise in default, as described in sub-
paragraph (A)(iii)); 
(ii) in which the credit extended ex-
ceeds the market value of the nonfinancial 
good or service provided, or the Bureau oth-
erwise finds that the sale of the non-
financial good or service is done as a sub-
terfuge, so as to evade or circumvent the 
provisions of this title; or 
(iii) in which the merchant, retailer, or 
seller of nonfinancial goods or services regu-
larly extends credit and the credit is subject 
to a finance charge. 
(C) LIMITATIONS.—
1290 
† HR 4173 PP
(i) 
IN
GENERAL.—Notwithstanding 
subparagraph (B), and except as provided 
in clause (ii), the Bureau may not exercise 
any rulemaking, supervisory, enforcement, 
or other authority under this title with re-
spect to a merchant, retailer, or seller of 
nonfinancial goods or services that is not 
engaged significantly in offering or pro-
viding consumer financial products or serv-
ices. 
(ii) EXCEPTION.—Subparagraph (A) 
and clause (i) of this subparagraph do not 
apply to any merchant, retailer, or seller of 
nonfinancial goods or services, to the extent 
that such person is subject to any enumer-
ated consumer law or any law for which 
authorities are transferred under subtitle F 
or H. 
(D) RULES.— 
(i) AUTHORITY
OF
OTHER
AGEN-
CIES.—No provision of this title shall be 
construed as modifying, limiting, or super-
seding the supervisory or enforcement au-
thority of the Federal Trade Commission or 
any other agency (other than the Bureau)
1291 
† HR 4173 PP
with respect to credit extended, or the collec-
tion of debt arising from such extension, di-
rectly by a merchant or retailer to a con-
sumer exclusively for the purpose of ena-
bling that consumer to purchase non-
financial goods or services directly from the 
merchant or retailer. 
(ii) SMALL BUSINESSES.—A merchant, 
retailer, or seller of nonfinancial goods or 
services that would otherwise be subject to 
the authority of the Bureau solely by virtue 
of the application of subparagraph (B)(iii) 
shall be deemed not to be engaged signifi-
cantly in offering or providing consumer fi-
nancial products or services under subpara-
graph (C)(i), if such person— 
(I) only extends credit for the sale 
of nonfinancial goods or services, as 
described in subparagraph (A)(i); 
(II) retains such credit on its own 
accounts (except to sell or convey such 
debt that is delinquent or otherwise in 
default); and 
(III) meets the relevant industry 
size threshold to be a small business
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† HR 4173 PP
concern, based on annual receipts, pur-
suant to section 3 of the Small Busi-
ness Act (15 U.S.C. 632) and the im-
plementing rules thereunder. 
(iii) INITIAL YEAR.—A merchant, re-
tailer, or seller of nonfinancial goods or 
services shall be deemed to meet the relevant 
industry size threshold described in clause 
(ii)(III) during the first year of operations 
of that business concern if, during that 
year, the receipts of that business concern 
reasonably are expected to meet that size 
threshold. 
(E) EXCEPTION
FROM
STATE
ENFORCE-
MENT.—To the extent that the Bureau may not 
exercise authority under this subsection with re-
spect to a merchant, retailer, or seller of non-
financial goods or services, no action by a State 
attorney general or State regulator with respect 
to a claim made under this title may be brought 
under subsection 1042(a), with respect to an ac-
tivity described in any of clauses (i) through 
(iii) of subparagraph (A) by such merchant, re-
tailer, or seller of nonfinancial goods or services.
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† HR 4173 PP
(b) EXCLUSION FOR REAL ESTATE BROKERAGE AC-
TIVITIES.— 
(1) REAL ESTATE BROKERAGE ACTIVITIES EX-
CLUDED.—Without limiting subsection (a), and ex-
cept as permitted in paragraph (2), the Bureau may 
not exercise any rulemaking, supervisory, enforce-
ment, or other authority under this title with respect 
to a person that is licensed or registered as a real es-
tate broker or real estate agent, in accordance with 
State law, to the extent that such person— 
(A) acts as a real estate agent or broker for 
a buyer, seller, lessor, or lessee of real property; 
(B) brings together parties interested in the 
sale, purchase, lease, rental, or exchange of real 
property; 
(C) negotiates, on behalf of any party, any 
portion of a contract relating to the sale, pur-
chase, lease, rental, or exchange of real property 
(other than in connection with the provision of 
financing with respect to any such transaction); 
or 
(D) offers to engage in any activity, or act 
in any capacity, described in subparagraph (A), 
(B), or (C).
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(2) DESCRIPTION
OF
ACTIVITIES.—Paragraph 
(1) shall not apply to any person to the extent that 
such person is engaged in the offering or provision of 
any consumer financial product or service or is other-
wise subject to any enumerated consumer law or any 
law for which authorities are transferred under sub-
title F or H. 
(c) EXCLUSION FOR MANUFACTURED HOME RETAIL-
ERS AND MODULAR HOME RETAILERS.— 
(1) IN GENERAL.—The Director may not exercise 
any rulemaking, supervisory, enforcement, or other 
authority over a person to the extent that— 
(A) such person is not described in para-
graph (2); and 
(B) such person— 
(i) acts as an agent or broker for a 
buyer or seller of a manufactured home or 
a modular home; 
(ii) facilitates the purchase by a con-
sumer of a manufactured home or modular 
home, by negotiating the purchase price or 
terms of the sales contract (other than pro-
viding financing with respect to such trans-
action); or
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(iii) offers to engage in any activity 
described in clause (i) or (ii). 
(2) DESCRIPTION OF ACTIVITIES.—A person is 
described in this paragraph to the extent that such 
person is engaged in the offering or provision of any 
consumer financial product or service or is otherwise 
subject to any enumerated consumer law or any law 
for which authorities are transferred under subtitle F 
or H. 
(3) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
(A) 
MANUFACTURED
HOME.—The 
term 
‘‘manufactured home’’ has the same meaning as 
in section 603 of the National Manufactured 
Housing Construction and Safety Standards Act 
of 1974 (42 U.S.C. 5402). 
(B) MODULAR HOME.—The term ‘‘modular 
home’’ means a house built in a factory in 2 or 
more modules that meet the State or local build-
ing codes where the house will be located, and 
where such modules are transported to the build-
ing site, installed on foundations, and completed. 
(d) EXCLUSION FOR ACCOUNTANTS AND TAX PRE-
PARERS.—
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(1) IN GENERAL.—Except as permitted in para-
graph (2), the Bureau may not exercise any rule-
making, supervisory, enforcement, or other authority 
over— 
(A) any person that is a certified public ac-
countant, permitted to practice as a certified 
public accounting firm, or certified or licensed 
for such purpose by a State, or any individual 
who is employed by or holds an ownership inter-
est with respect to a person described in this sub-
paragraph, when such person is performing or 
offering to perform— 
(i) customary and usual accounting 
activities, including the provision of ac-
counting, tax, advisory, or other services 
that are subject to the regulatory authority 
of a State board of accountancy or a Fed-
eral authority; or 
(ii) other services that are incidental to 
such customary and usual accounting ac-
tivities, to the extent that such incidental 
services are not offered or provided— 
(I) by the person separate and 
apart from such customary and usual 
accounting activities; or
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(II) to consumers who are not re-
ceiving such customary and usual ac-
counting activities; or 
(B) any person, other than a person de-
scribed in subparagraph (A) that performs in-
come tax preparation activities for consumers. 
(2) DESCRIPTION OF ACTIVITIES.— 
(A) IN GENERAL.—Paragraph (1) shall not 
apply to any person described in paragraph 
(1)(A) or (1)(B) to the extent that such person 
is engaged in any activity which is not a cus-
tomary and usual accounting activity described 
in paragraph (1)(A) or incidental thereto but 
which is the offering or provision of any con-
sumer financial product or service, except to the 
extent that a person described in paragraph 
(1)(A) is engaged in an activity which is a cus-
tomary and usual accounting activity described 
in paragraph (1)(A), or incidental thereto. 
(B) NOT
A
CUSTOMARY
AND
USUAL
AC-
COUNTING ACTIVITY.—For purposes of this sub-
section, extending or brokering credit is not a 
customary and usual accounting activity, or in-
cidental thereto.
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(C) RULE
OF
CONSTRUCTION.—For pur-
poses of subparagraphs (A) and (B), a person de-
scribed in paragraph (1)(A) shall not be deemed 
to be extending credit, if such person is only ex-
tending credit directly to a consumer, exclusively 
for the purpose of enabling such consumer to 
purchase services described in clause (i) or (ii) 
of paragraph (1)(A) directly from such person, 
and such credit is— 
(i) not subject to a finance charge; and 
(ii) not payable by written agreement 
in more than 4 installments. 
(D) OTHER LIMITATIONS.—Paragraph (1) 
does not apply to any person described in para-
graph (1)(A) or (1)(B) that is otherwise subject 
to any enumerated consumer law or any law for 
which authorities are transferred under subtitle 
F or H. 
(e) EXCLUSION FOR ATTORNEYS.— 
(1) IN GENERAL.—The Bureau may not exercise 
any authority to conduct examinations of an attorney 
licensed by a State, to the extent that the attorney is 
engaged in the practice of law under the laws of such 
State.
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(2) EXCEPTION
FOR
ENUMERATED
CONSUMER 
LAWS AND TRANSFERRED AUTHORITIES.—Paragraph 
(1) shall not apply to an attorney who is engaged in 
the offering or provision of any consumer financial 
product or service, or is otherwise subject to any enu-
merated consumer law or any law for which authori-
ties are transferred under subtitle F or H. 
(f) EXCLUSION FOR PERSONS REGULATED BY A STATE 
INSURANCE REGULATOR.— 
(1) IN GENERAL.—No provision of this title shall 
be construed as altering, amending, or affecting the 
authority of any State insurance regulator to adopt 
rules, initiate enforcement proceedings, or take any 
other action with respect to a person regulated by a 
State insurance regulator. Except as provided in 
paragraph (2), the Bureau shall have no authority to 
exercise any power to enforce this title with respect to 
a person regulated by a State insurance regulator. 
(2) DESCRIPTION
OF
ACTIVITIES.—Paragraph 
(1) does not apply to any person described in such 
paragraph to the extent that such person is engaged 
in the offering or provision of any consumer financial 
product or service or is otherwise subject to any enu-
merated consumer law or any law for which authori-
ties are transferred under subtitle F or H.
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† HR 4173 PP
(g) EXCLUSION FOR EMPLOYEE BENEFIT AND COM-
PENSATION PLANS AND CERTAIN OTHER ARRANGEMENTS 
UNDER THE INTERNAL REVENUE CODE OF 1986.— 
(1) PRESERVATION
OF
AUTHORITY
OF
OTHER 
AGENCIES.—No provision of this title shall be con-
strued as altering, amending, or affecting the author-
ity of the Secretary of the Treasury, the Secretary of 
Labor, or the Commissioner of Internal Revenue to 
adopt regulations, initiate enforcement proceedings, 
or take any actions with respect to any specified plan 
or arrangement. 
(2) ACTIVITIES NOT CONSTITUTING THE OFFER-
ING
OR
PROVISION
OF
ANY
CONSUMER
FINANCIAL 
PRODUCT OR SERVICE.—For purposes of this title, a 
person shall not be treated as having engaged in the 
offering or provision of any consumer financial prod-
uct or service solely because such person is a specified 
plan or arrangement, or is engaged in the activity of 
establishing or maintaining, for the benefit of employ-
ees of such person (or for members of an employee or-
ganization), any specified plan or arrangement. 
(3) LIMITATION ON BUREAU AUTHORITY.— 
(A) IN
GENERAL.—Except as provided 
under subparagraphs (B) and (C), the Bureau 
may not exercise any rulemaking or enforcement
1301 
† HR 4173 PP
authority with respect to products or services 
that relate to any specified plan or arrangement. 
(B) BUREAU ACTION ONLY PURSUANT TO 
AGENCY REQUEST.—The Secretary and the Sec-
retary of Labor may jointly issue a written re-
quest to the Bureau regarding implementation of 
appropriate 
consumer 
protection 
standards 
under this title with respect to the provision of 
services relating to any specified plan or ar-
rangement. Subject to a request made under this 
subparagraph, the Bureau may exercise rule-
making authority, and may act to enforce a rule 
prescribed pursuant to such request, in accord-
ance with the provisions of this title. A request 
made by the Secretary and the Secretary of 
Labor under this subparagraph shall describe the 
basis for, and scope of, appropriate consumer 
protection standards to be implemented under 
this title with respect to the provision of services 
relating to any specified plan or arrangement. 
(C) DESCRIPTION OF PRODUCTS OR SERV-
ICES.—To the extent that a person engaged in 
providing products or services relating to any 
specified plan or arrangement is subject to any 
enumerated consumer law or any law for which
1302 
† HR 4173 PP
authorities are transferred under subtitle F or 
H, subparagraph (A) shall not apply with re-
spect to that law. 
(4) SPECIFIED
PLAN
OR
ARRANGEMENT.—For 
purposes of this subsection, the term ‘‘specified plan 
or arrangement’’ means any plan, account, or ar-
rangement described in section 220, 223, 401(a), 
403(a), 403(b), 408, 408A, 529, or 530 of the Internal 
Revenue Code of 1986, or any employee benefit or 
compensation plan or arrangement, including a plan 
that is subject to title I of the Employee Retirement 
Income Security Act of 1974. 
(h) PERSONS REGULATED BY A STATE SECURITIES 
COMMISSION.— 
(1) IN GENERAL.—No provision of this title shall 
be construed as altering, amending, or affecting the 
authority of any securities commission (or any agen-
cy or office performing like functions) of any State to 
adopt rules, initiate enforcement proceedings, or take 
any other action with respect to a person regulated by 
any securities commission (or any agency or office 
performing like functions) of any State. Except as 
permitted in paragraph (2) and subsection (f), the 
Bureau shall have no authority to exercise any power 
to enforce this title with respect to a person regulated
1303 
† HR 4173 PP
by any securities commission (or any agency or office 
performing like functions) of any State, but only to 
the extent that the person acts in such regulated ca-
pacity. 
(2) DESCRIPTION
OF
ACTIVITIES.—Paragraph 
(1) shall not apply to any person to the extent such 
person is engaged in the offering or provision of any 
consumer financial product or service, or is otherwise 
subject to any enumerated consumer law or any law 
for which authorities are transferred under subtitle F 
or H. 
(i) EXCLUSION FOR PERSONS REGULATED BY THE 
COMMISSION.— 
(1) IN GENERAL.—No provision of this title may 
be construed as altering, amending, or affecting the 
authority of the Commission to adopt rules, initiate 
enforcement proceedings, or take any other action 
with respect to a person regulated by the Commission. 
The Bureau shall have no authority to exercise any 
power to enforce this title with respect to a person 
regulated by the Commission. 
(2) CONSULTATION
AND
COORDINATION.—Not-
withstanding paragraph (1), the Commission shall 
consult and coordinate, where feasible, with the Bu-
reau with respect to any rule (including any advance
1310 
† HR 4173 PP
(b) RULEMAKING.—The Bureau may prescribe rules 
applicable to a covered person or service provider identi-
fying as unlawful unfair, deceptive, or abusive acts or prac-
tices in connection with any transaction with a consumer 
for a consumer financial product or service, or the offering 
of a consumer financial product or service. Rules under this 
section may include requirements for the purpose of pre-
venting such acts or practices. 
(c) UNFAIRNESS.— 
(1) IN GENERAL.—The Bureau shall have no au-
thority under this section to declare an act or practice 
in connection with a transaction with a consumer for 
a consumer financial product or service, or the offer-
ing of a consumer financial product or service, to be 
unlawful on the grounds that such act or practice is 
unfair, unless the Bureau has a reasonable basis to 
conclude that— 
(A) the act or practice causes or is likely to 
cause substantial injury to consumers which is 
not reasonably avoidable by consumers; and 
(B) such substantial injury is not out-
weighed by countervailing benefits to consumers 
or to competition. 
(2) CONSIDERATION
OF
PUBLIC
POLICIES.—In 
determining whether an act or practice is unfair, the