I 
119TH CONGRESS 
1ST SESSION 
H. R. 940 
To amend the Federal Financial Institutions Examination Council Act of 
1978 to improve the examination of depository institutions, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 4, 2025 
Mr. HILL of Arkansas (for himself, Mr. MEUSER, Mrs. WAGNER, Mr. 
HUIZENGA, Mr. TIMMONS, Mr. MOORE of North Carolina, and Mr. WIL-
LIAMS of Texas) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Federal Financial Institutions Examination 
Council Act of 1978 to improve the examination of de-
pository institutions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair Audits and In-
spections for Regulators’ Exams Act’’ or the ‘‘FAIR 
Exams Act’’. 
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SEC. 2. TIMELINESS OF EXAMINATION REPORTS. 
The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 1012. TIMELINESS OF EXAMINATION REPORTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) FINAL EXAMINATION REPORT.—A Federal 
financial institutions regulatory agency shall provide 
a final examination report to a financial institution 
not later than 60 days after the later of— 
‘‘(A) the exit interview for an examination 
of the institution; or 
‘‘(B) the provision of additional material 
information by the institution relating to the 
examination. 
‘‘(2) EXIT INTERVIEW.—If a financial institu-
tion is not subject to a resident examiner program, 
the exit interview shall occur not later than the end 
of the 9-month period beginning on the commence-
ment of the examination, except that such period 
may be extended by the Federal financial institu-
tions regulatory agency by providing written notice 
to the institution and the Director describing with 
particularity the reasons that a longer period is 
needed to complete the examination. 
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‘‘(b) EXAMINATION MATERIALS.—Upon the request 
of a financial institution, the Federal financial institutions 
regulatory agency shall include with the final report an 
appendix listing all examination or other factual informa-
tion relied upon by the agency in support of a material 
supervisory determination.’’. 
SEC. 3. INDEPENDENT EXAMINATION REVIEW DIRECTOR. 
(a) IN GENERAL.—The Federal Financial Institu-
tions Examination Council Act of 1978 (12 U.S.C. 3301 
et seq.), as amended by section 2 of this Act, is further 
amended by adding at the end the following: 
‘‘SEC. 1013. OFFICE OF INDEPENDENT EXAMINATION RE-
VIEW. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Council an Office of Independent Examination Review. 
‘‘(b) HEAD OF OFFICE.—There is established the po-
sition of the Independent Examination Review Director, 
as the head of the Office of Independent Examination Re-
view. The Director shall be appointed by the President, 
by and with the advice and consent of the Senate. 
‘‘(c) STAFFING.—The Director is authorized to hire 
staff to support the activities of the Office of Independent 
Examination Review. One-fifth of the costs and expenses 
of the Office, including the salaries of its employees, shall 
be paid by each of the Federal financial institutions regu-
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latory agencies. Annual assessments for such share shall 
be levied by the Council based upon its projected budget 
for the year, and additional assessments may be made dur-
ing the year if necessary. 
‘‘(d) DUTIES.—The Director shall— 
‘‘(1) receive and, at the discretion of the Direc-
tor, investigate complaints from financial institu-
tions, their representatives, or another entity acting 
on behalf of such institutions, concerning examina-
tions, examination practices, or examination reports; 
‘‘(2) hold meetings, at least once every three 
months and in locations designed to encourage par-
ticipation from all sections of the United States, 
with financial institutions, their representatives, or 
another entity acting on behalf of such institutions, 
to discuss examination procedures, examination 
practices, or examination policies; 
‘‘(3) review examination procedures of the Fed-
eral financial institutions regulatory agencies to en-
sure that the written examination policies of those 
agencies are being followed in practice and adhere to 
the standards for consistency, which shall be estab-
lished, after notice and opportunity for comment, by 
the Council not later than 90 days after the date of 
enactment of this section; 
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‘‘(4) conduct a continuing and regular program 
of examination quality assurance for all examination 
types conducted by the Federal financial institutions 
regulatory agencies; 
‘‘(5) carry out an independent review of any su-
pervisory appeal initiated under section 1014; and 
‘‘(6) report annually to the Committee on Fi-
nancial Services of the House of Representatives, the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Council, on the reviews car-
ried out pursuant to paragraphs (3) and (5), includ-
ing compliance with the requirements set forth in 
section 1012 regarding timeliness of examination re-
ports, and the Council’s recommendations for im-
provements in examination procedures, practices, 
and policies. 
‘‘(e) CONFIDENTIALITY.—The Director shall keep 
confidential all meetings, discussions, and information 
provided by financial institutions. The Council shall keep 
confidential all information and communications ex-
changed by a financial institution and the Office of Inde-
pendent Examination Review.’’. 
(b) DEFINITION.—Section 1003 of the Federal Fi-
nancial Institutions Examination Council Act of 1978 (12 
U.S.C. 3302) is amended— 
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tor within 60 days after receiving the final report of 
examination that is the subject of such review. 
‘‘(2) IDENTIFICATION
OF
DETERMINATION.— 
The written notice shall identify the material super-
visory determination that is the subject of the inde-
pendent examination review, and a statement of the 
reasons why the institution believes that the deter-
mination is incorrect or should otherwise be modi-
fied. 
‘‘(3) INFORMATION TO BE PROVIDED TO INSTI-
TUTION.—Any information relied upon by the agen-
cy in the final report that is not in the possession 
of the financial institution may be requested by the 
financial institution and shall be delivered promptly 
by the agency to the financial institution. 
‘‘(c) RIGHT TO HEARING.— 
‘‘(1) IN GENERAL.—The Director shall— 
‘‘(A) determine the merits of the appeal on 
the record; or 
‘‘(B) at the election of the financial institu-
tion, refer the appeal to an administrative law 
judge appointed by the Director to conduct a 
hearing pursuant to the procedures set forth 
under sections 556 and 557 of title 5, United 
States Code, which shall take place not later 
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than 60 days after the petition for review is re-
ceived by the Director. 
‘‘(2) TIMING OF DECISION.—An administrative 
law judge conducting a hearing under paragraph 
(1)(B) shall issue a proposed decision to the Direc-
tor based upon the record established at the hearing. 
‘‘(3) STANDARD OF REVIEW.—In any hearing 
under this subsection, neither the administrative law 
judge nor the Director shall defer to the opinions of 
the examiner or agency, but shall independently de-
termine the appropriateness of the agency’s decision 
based upon the relevant statutes, regulations, other 
appropriate guidance, and evidence presented at the 
hearing. 
‘‘(d) FINAL RECOMMENDATION.—With respect to an 
independent review under this section, the Director shall 
make a final recommendation to the head of the agency 
whose supervisory determination was the subject of the re-
view not later than 60 days after the record has been 
closed. 
‘‘(e) FINAL AGENCY DETERMINATION.—Upon re-
ceipt of a final recommendation of the Director under sub-
section (d), the head of an agency shall make a final deter-
mination of the agency with respect to the material super-
visory determination not later than the 60 days after re-
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ceiving the recommendation of the Director. In making 
such final determination, the head of the agency shall give 
deference to the recommendation of the Director. 
‘‘(f) RIGHT TO JUDICIAL REVIEW.—A financial insti-
tution shall have the right to petition for review of a final 
agency determination made under subsection (e) by filing 
a petition for review not later than 60 days after the date 
on which the decision is made in the United States Court 
of Appeals for the District of Columbia Circuit or the Cir-
cuit in which the financial institution is located. 
‘‘(g) REPORT.—The Director shall report annually to 
the Committee on Financial Services of the House of Rep-
resentatives, the Committee on Banking, Housing, and 
Urban Affairs of the Senate, and the Council on actions 
taken under this section, including the types of issues that 
the Director has reviewed and the results of those reviews. 
In no case shall such a report contain information about 
individual financial institutions or any confidential or priv-
ileged information shared by financial institutions. 
‘‘(h) RETALIATION PROHIBITED.— 
‘‘(1) IN GENERAL.—A Federal financial institu-
tions regulatory agency may not— 
‘‘(A) retaliate against a financial institu-
tion, including service providers, or any institu-
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tion-affiliated party, for exercising appellate 
rights under this section; or 
‘‘(B) delay or deny any agency action that 
would benefit a financial institution or any in-
stitution-affiliated party on the basis that an 
appeal under this section is pending under this 
section. 
‘‘(2) RETALIATION.—For purposes of this sub-
section, retaliation includes delaying consideration 
of, or withholding approval of, any request, notice, 
or application that otherwise would have been ap-
proved, but for the exercise of a financial institu-
tion’s rights under this section.’’. 
SEC. 5. ADDITIONAL AMENDMENTS. 
(a) REGULATOR APPEALS PROCESS, OMBUDSMAN, 
AND ALTERNATIVE DISPUTE RESOLUTION.— 
(1) IN GENERAL.—Section 309 of the Riegle 
Community Development and Regulatory Improve-
ment Act of 1994 (12 U.S.C. 4806) is amended— 
(A) in the heading, by striking ‘‘REGU-
LATORY
APPEALS
PROCESS, 
OMBUDS-
MAN,’’ and inserting ‘‘OMBUDSMAN’’; 
(B) by striking subsections (a), (b), and 
(c); 
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(C) by redesignating subsections (d), (e), 
(f), and (g) as subsections (a), (b), (c), and (d), 
respectively; and 
(D) in subsection (b), as so redesignated— 
(i) in paragraph (2)— 
(I) in subparagraph (B), by 
striking ‘‘and’’ at the end; 
(II) in subparagraph (C), by 
striking the period and inserting ‘‘; 
and’’; and 
(III) by adding at the end the 
following: 
‘‘(D) ensure that appropriate safeguards 
exist for protecting any party from retaliation 
by any agency for exercising rights under this 
subsection.’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(6) RETALIATION.—For purposes of this sub-
section, retaliation includes delaying consideration 
of, or withholding approval of, any request, notice, 
or application that otherwise would have been ap-
proved, but for the exercise of a financial institu-
tion’s rights under this section.’’. 
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(E) in paragraph (1)(A) of subsection (c), 
as so redesignated— 
(i) in clause (ii), by striking ‘‘; and’’ 
and inserting a semicolon; 
(ii) in clause (iii), by striking ‘‘; and’’ 
and inserting a semicolon; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(iv) any issue specifically listed in an 
exam report as a matter requiring atten-
tion by the institution’s management or 
board of directors; and 
‘‘(v) any suspension or removal of an 
institution’s status as eligible for expedited 
processing of applications, requests, no-
tices, or filings on the grounds of a super-
visory or compliance concern, regardless of 
whether that concern has been cited as a 
basis for a material supervisory determina-
tion or matter requiring attention in an ex-
amination report, provided that the con-
duct at issue did not involve violation of 
any criminal law; and’’. 
(2) EFFECT.—Nothing in this subsection af-
fects the authority of an appropriate Federal bank-
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ing agency or the National Credit Union Adminis-
tration Board to take enforcement or other super-
visory action. 
(b) FEDERAL CREDIT UNION ACT.—Section 205(j) 
of the Federal Credit Union Act (12 U.S.C. 1785(j)) is 
amended by inserting ‘‘the Bureau of Consumer Financial 
Protection,’’ before ‘‘the Administration’’ each place that 
term appears. 
(c) FEDERAL FINANCIAL INSTITUTIONS EXAMINA-
TION COUNCIL ACT.—The Federal Financial Institutions 
Examination Council Act of 1978 (12 U.S.C. 3301 et 
seq.), as amended by sections 2 through 4 of this Act, 
is further amended— 
(1) in section 1003 (12 U.S.C. 3302) by strik-
ing paragraph (1) and inserting the following: 
‘‘(1) the term ‘Federal financial institutions 
regulatory agencies’— 
‘‘(A) means the Office of the Comptroller 
of the Currency, the Board of Governors of the 
Federal Reserve System, the Federal Deposit 
Insurance Corporation, and the National Credit 
Union Administration; and 
‘‘(B) includes the Bureau of Consumer Fi-
nancial Protection for purposes of sections 
1012 through 1014;’’; 
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(2) in section 1004(a)(4) (12 U.S.C. 3303), by 
striking ‘‘Consumer Financial Protection Bureau’’ 
and inserting ‘‘Bureau of Consumer Financial Pro-
tection’’; and 
(3) in section 1005 (12 U.S.C. 3304)— 
(A) by striking ‘‘One-fifth’’ and inserting 
‘‘One-fourth’’; and 
(B) by inserting ‘‘described under section 
1003(1)(A)’’ after ‘‘agencies’’. 
Æ 
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