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Bureau may consider established public policies as 
evidence to be considered with all other evidence. Such 
public policy considerations may not serve as a pri-
mary basis for such determination. 
(d) ABUSIVE.—The Bureau shall have no authority 
under this section to declare an act or practice abusive in 
connection with the provision of a consumer financial prod-
uct or service, unless the act or practice— 
(1) materially interferes with the ability of a 
consumer to understand a term or condition of a con-
sumer financial product or service; or 
(2) takes unreasonable advantage of— 
(A) a lack of understanding on the part of 
the consumer of the material risks, costs, or con-
ditions of the product or service; 
(B) the inability of the consumer to protect 
the interests of the consumer in selecting or using 
a consumer financial product or service; or 
(C) the reasonable reliance by the consumer 
on a covered person to act in the interests of the 
consumer. 
(e) CONSULTATION.—In prescribing rules under this 
section, the Bureau shall consult with the Federal banking 
agencies, or other Federal agencies, as appropriate, con-
cerning the consistency of the proposed rule with pruden-
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tial, market, or systemic objectives administered by such 
agencies. 
(f) CONSIDERATION OF SEASONAL INCOME.—The rules 
of the Bureau under this section shall provide, with respect 
to an extension of credit secured by residential real estate 
or a dwelling, if documented income of the borrower, includ-
ing income from a small business, is a repayment source 
for an extension of credit secured by residential real estate 
or a dwelling, the creditor may consider the seasonality and 
irregularity of such income in the underwriting of and 
scheduling of payments for such credit. 
SEC. 1032. DISCLOSURES. 
(a) IN GENERAL.—The Bureau may prescribe rules to 
ensure that the features of any consumer financial product 
or service, both initially and over the term of the product 
or service, are fully, accurately, and effectively disclosed to 
consumers in a manner that permits consumers to under-
stand the costs, benefits, and risks associated with the prod-
uct or service, in light of the facts and circumstances. 
(b) MODEL DISCLOSURES.— 
(1) IN GENERAL.—Any final rule prescribed by 
the Bureau under this section requiring disclosures 
may include a model form that may be used at the 
option of the covered person for provision of the re-
quired disclosures.
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(2) FORMAT.—A model form issued pursuant to 
paragraph (1) shall contain a clear and conspicuous 
disclosure that, at a minimum— 
(A) uses plain language comprehensible to 
consumers; 
(B) contains a clear format and design, 
such as an easily readable type font; and 
(C) succinctly explains the information that 
must be communicated to the consumer. 
(3) CONSUMER
TESTING.—Any model form 
issued pursuant to this subsection shall be validated 
through consumer testing. 
(c) BASIS FOR RULEMAKING.—In prescribing rules 
under this section, the Bureau shall consider available evi-
dence about consumer awareness, understanding of, and re-
sponses to disclosures or communications about the risks, 
costs, and benefits of consumer financial products or serv-
ices. 
(d) SAFE HARBOR.—Any covered person that uses a 
model form included with a rule issued under this section 
shall be deemed to be in compliance with the disclosure re-
quirements of this section with respect to such model form. 
(e) TRIAL DISCLOSURE PROGRAMS.— 
(1) IN GENERAL.—The Bureau may permit a 
covered person to conduct a trial program that is lim-
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ited in time and scope, subject to specified standards 
and procedures, for the purpose of providing trial dis-
closures to consumers that are designed to improve 
upon any model form issued pursuant to subsection 
(b)(1), or any other model form issued to implement 
an enumerated statute, as applicable. 
(2) SAFE HARBOR.—The standards and proce-
dures issued by the Bureau shall be designed to en-
courage covered persons to conduct trial disclosure 
programs. For the purposes of administering this sub-
section, the Bureau may establish a limited period 
during which a covered person conducting a trial dis-
closure program shall be deemed to be in compliance 
with, or may be exempted from, a requirement of a 
rule or an enumerated consumer law. 
(3) PUBLIC DISCLOSURE.—The rules of the Bu-
reau shall provide for public disclosure of trial disclo-
sure programs, which public disclosure may be lim-
ited, to the extent necessary to encourage covered per-
sons to conduct effective trials. 
(f) COMBINED MORTGAGE LOAN DISCLOSURE.—Not 
later than 1 year after the designated transfer date, the Bu-
reau shall propose for public comment rules and model dis-
closures that combine the disclosures required under the 
Truth in Lending Act and the Real Estate Settlement Pro-
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cedures Act of 1974, into a single, integrated disclosure for 
mortgage loan transactions covered by those laws, unless the 
Bureau determines that any proposal issued by the Board 
of Governors and the Secretary of Housing and Urban De-
velopment carries out the same purpose. 
SEC. 1033. CONSUMER RIGHTS TO ACCESS INFORMATION. 
(a) IN GENERAL.—Subject to rules prescribed by the 
Bureau, a covered person shall make available to a con-
sumer, upon request, information in the control or posses-
sion of the covered person concerning the consumer finan-
cial product or service that the consumer obtained from such 
covered person, including information relating to any 
transaction, series of transactions, or to the account includ-
ing costs, charges and usage data. The information shall 
be made available in an electronic form usable by con-
sumers. 
(b) EXCEPTIONS.—A covered person may not be re-
quired by this section to make available to the consumer— 
(1) any confidential commercial information, in-
cluding an algorithm used to derive credit scores or 
other risk scores or predictors; 
(2) any information collected by the covered per-
son for the purpose of preventing fraud or money 
laundering, or detecting, or making any report re-
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garding other unlawful or potentially unlawful con-
duct; 
(3) any information required to be kept con-
fidential by any other provision of law; or 
(4) any information that the covered person can-
not retrieve in the ordinary course of its business with 
respect to that information. 
(c) NO DUTY TO MAINTAIN RECORDS.—Nothing in 
this section shall be construed to impose any duty on a cov-
ered person to maintain or keep any information about a 
consumer. 
(d) STANDARDIZED FORMATS FOR DATA.—The Bu-
reau, by rule, shall prescribe standards applicable to cov-
ered persons to promote the development and use of stand-
ardized formats for information, including through the use 
of machine readable files, to be made available to consumers 
under this section. 
(e) CONSULTATION.—The Bureau shall, when pre-
scribing any rule under this section, consult with the Fed-
eral banking agencies and the Federal Trade Commission 
to ensure, to the extent appropriate, that the rules— 
(1) impose substantively similar requirements on 
covered persons;
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(2) take into account conditions under which 
covered persons do business both in the United States 
and in other countries; and 
(3) do not require or promote the use of any par-
ticular technology in order to develop systems for 
compliance. 
SEC. 1034. RESPONSE TO CONSUMER COMPLAINTS AND IN-
QUIRIES. 
(a) 
TIMELY
REGULATOR
RESPONSE
TO
CON-
SUMERS.—The Bureau shall establish, in consultation with 
the appropriate Federal regulatory agencies, reasonable 
procedures to provide a timely response to consumers, in 
writing where appropriate, to complaints against, or in-
quiries concerning, a covered person, including— 
(1) steps that have been taken by the regulator 
in response to the complaint or inquiry of the con-
sumer; 
(2) any responses received by the regulator from 
the covered person; and 
(3) any follow-up actions or planned follow-up 
actions by the regulator in response to the complaint 
or inquiry of the consumer. 
(b) TIMELY RESPONSE TO REGULATOR BY COVERED 
PERSON.—A covered person subject to supervision and pri-
mary enforcement by the Bureau pursuant to section 1025
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shall provide a timely response, in writing where appro-
priate, to the Bureau, the prudential regulators, and any 
other agency having jurisdiction over such covered person 
concerning a consumer complaint or inquiry, including— 
(1) steps that have been taken by the covered per-
son to respond to the complaint or inquiry of the con-
sumer; 
(2) responses received by the covered person from 
the consumer; and 
(3) follow-up actions or planned follow-up ac-
tions by the covered person to respond to the com-
plaint or inquiry of the consumer. 
(c) PROVISION OF INFORMATION TO CONSUMERS.— 
(1) IN GENERAL.—A covered person subject to 
supervision and primary enforcement by the Bureau 
pursuant to section 1025 shall, in a timely manner, 
comply with a consumer request for information in 
the control or possession of such covered person con-
cerning the consumer financial product or service that 
the consumer obtained from such covered person, in-
cluding supporting written documentation, con-
cerning the account of the consumer. 
(2) EXCEPTIONS.—A covered person subject to 
supervision and primary enforcement by the Bureau 
pursuant to section 1025, a prudential regulator, and
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any other agency having jurisdiction over a covered 
person subject to supervision and primary enforce-
ment by the Bureau pursuant to section 1025 may 
not be required by this section to make available to 
the consumer— 
(A) any confidential commercial informa-
tion, including an algorithm used to derive cred-
it scores or other risk scores or predictors; 
(B) any information collected by the covered 
person for the purpose of preventing fraud or 
money laundering, or detecting or making any 
report regarding other unlawful or potentially 
unlawful conduct; 
(C) any information required to be kept 
confidential by any other provision of law; or 
(D) any nonpublic or confidential informa-
tion, including confidential supervisory informa-
tion. 
(d) AGREEMENTS WITH OTHER AGENCIES.—The Bu-
reau shall enter into a memorandum of understanding with 
any affected Federal regulatory agency regarding proce-
dures by which any covered person, and the prudential reg-
ulators, and any other agency having jurisdiction over a 
covered person, including the Secretary of the Department
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of Housing and Urban Development and the Secretary of 
Education, shall comply with this section. 
SEC. 1035. PRIVATE EDUCATION LOAN OMBUDSMAN. 
(a) ESTABLISHMENT.—The Secretary, in consultation 
with the Director, shall designate a Private Education Loan 
Ombudsman (in this section referred to as the ‘‘Ombuds-
man’’) within the Bureau, to provide timely assistance to 
borrowers of private education loans. 
(b) PUBLIC INFORMATION.—The Secretary and the Di-
rector shall disseminate information about the availability 
and functions of the Ombudsman to borrowers and poten-
tial borrowers, as well as institutions of higher education, 
lenders, guaranty agencies, loan servicers, and other par-
ticipants in private education student loan programs. 
(c) FUNCTIONS OF OMBUDSMAN.—The Ombudsman 
designated under this subsection shall— 
(1) in accordance with regulations of the Direc-
tor, receive, review, and attempt to resolve informally 
complaints from borrowers of loans described in sub-
section (a), including, as appropriate, attempts to re-
solve such complaints in collaboration with the De-
partment of Education and with institutions of high-
er education, lenders, guaranty agencies, loan 
servicers, and other participants in private education 
loan programs;
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(2) not later than 90 days after the designated 
transfer date, establish a memorandum of under-
standing with the student loan ombudsman estab-
lished under section 141(f) of the Higher Education 
Act of 1965 (20 U.S.C. 1018(f)), to ensure coordina-
tion in providing assistance to and serving borrowers 
seeking to resolve complaints related to their private 
education or Federal student loans; 
(3) compile and analyze data on borrower com-
plaints regarding private education loans; and 
(4) make appropriate recommendations to the 
Director, the Secretary, the Secretary of Education, 
the Committee on Banking, Housing, and Urban Af-
fairs and the Committee on Health, Education, 
Labor, and Pensions of the Senate and the Committee 
on Financial Services and the Committee on Edu-
cation and Labor of the House of Representatives. 
(d) ANNUAL REPORTS.— 
(1) IN GENERAL.—The Ombudsman shall pre-
pare an annual report that describes the activities, 
and evaluates the effectiveness of the Ombudsman 
during the preceding year. 
(2) SUBMISSION.—The report required by para-
graph (1) shall be submitted on the same date annu-
ally to the Secretary, the Secretary of Education, the
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Committee on Banking, Housing, and Urban Affairs 
and the Committee on Health, Education, Labor, and 
Pensions of the Senate and the Committee on Finan-
cial Services and the Committee on Education and 
Labor of the House of Representatives. 
(e) DEFINITIONS.—For purposes of this section, the 
terms ‘‘private education loan’’ and ‘‘institution of higher 
education’’ have the same meanings as in section 140 of 
the Truth in Lending Act (15 U.S.C. 1650). 
SEC. 1036. PROHIBITED ACTS. 
It shall be unlawful for any person— 
(1) to— 
(A) advertise, market, offer, or sell a con-
sumer financial product or service not in con-
formity with this title or applicable rules or or-
ders issued by the Bureau; 
(B) enforce, or attempt to enforce, any 
agreement with a consumer (including any term 
or change in terms in respect of such agreement), 
or impose, or attempt to impose, any fee or 
charge on a consumer in connection with a con-
sumer financial product or service that is not in 
conformity with this title or applicable rules or 
orders issued by the Bureau; or
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(C) engage in any unfair, deceptive, or abu-
sive act or practice, 
except that no person shall be held to have vio-
lated this paragraph solely by virtue of pro-
viding or selling time or space to a person plac-
ing an advertisement; 
(2) to fail or refuse, as required by Federal con-
sumer financial law, or any rule or order issued by 
the Bureau thereunder— 
(A) to permit access to or copying of 
records; 
(B) to establish or maintain records; or 
(C) to make reports or provide information 
to the Bureau; or 
(3) knowingly or recklessly to provide substantial 
assistance to another person in violation of the provi-
sions of section 1031, or any rule or order issued 
thereunder, and notwithstanding any provision of 
this title, the provider of such substantial assistance 
shall be deemed to be in violation of that section to 
the same extent as the person to whom such assistance 
is provided. 
SEC. 1037. EFFECTIVE DATE. 
This subtitle shall take effect on the designated transfer 
date.
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Subtitle D—Preservation of State 
Law 
SEC. 1041. RELATION TO STATE LAW. 
(a) IN GENERAL.— 
(1) RULE OF CONSTRUCTION.—This title, other 
than sections 1044 through 1048, may not be con-
strued as annulling, altering, or affecting, or exempt-
ing any person subject to the provisions of this title 
from complying with, the statutes, regulations, orders, 
or interpretations in effect in any State, except to the 
extent that any such provision of law is inconsistent 
with the provisions of this title, and then only to the 
extent of the inconsistency. 
(2) GREATER PROTECTION UNDER STATE LAW.— 
For purposes of this subsection, a statute, regulation, 
order, or interpretation in effect in any State is not 
inconsistent with the provisions of this title if the pro-
tection that such statute, regulation, order, or inter-
pretation affords to consumers is greater than the 
protection provided under this title. A determination 
regarding whether a statute, regulation, order, or in-
terpretation in effect in any State is inconsistent with 
the provisions of this title may be made by the Bu-
reau on its own motion or in response to a nonfrivo-
lous petition initiated by any interested person.
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(b) RELATION TO OTHER PROVISIONS OF ENUMER-
ATED CONSUMER LAWS THAT RELATE TO STATE LAW.— 
No provision of this title, except as provided in section 
1083, shall be construed as modifying, limiting, or super-
seding the operation of any provision of an enumerated con-
sumer law that relates to the application of a law in effect 
in any State with respect to such Federal law. 
(c) ADDITIONAL CONSUMER PROTECTION REGULA-
TIONS IN RESPONSE TO STATE ACTION.— 
(1) NOTICE OF PROPOSED RULE REQUIRED.— 
The Bureau shall issue a notice of proposed rule-
making whenever a majority of the States has enacted 
a resolution in support of the establishment or modi-
fication of a consumer protection regulation by the 
Bureau. 
(2) BUREAU
CONSIDERATIONS
REQUIRED
FOR 
ISSUANCE OF FINAL REGULATION.—Before prescribing 
a final regulation based upon a notice issued pursu-
ant to paragraph (1), the Bureau shall take into ac-
count whether— 
(A) the proposed regulation would afford 
greater protection to consumers than any exist-
ing regulation; 
(B) the intended benefits of the proposed 
regulation for consumers would outweigh any in-
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† HR 4173 PP
creased costs or inconveniences for consumers, 
and would not discriminate unfairly against 
any category or class of consumers; and 
(C) a Federal banking agency has advised 
that the proposed regulation is likely to present 
an unacceptable safety and soundness risk to in-
sured depository institutions. 
(3) EXPLANATION
OF
CONSIDERATIONS.—The 
Bureau— 
(A) shall include a discussion of the consid-
erations required in paragraph (2) in the Fed-
eral Register notice of a final regulation pre-
scribed pursuant to this subsection; and 
(B) whenever the Bureau determines not to 
prescribe a final regulation, shall publish an ex-
planation of such determination in the Federal 
Register, and provide a copy of such explanation 
to each State that enacted a resolution in sup-
port of the proposed regulation, the Committee 
on Financial Services of the House of Represent-
atives, and the Committee on Banking, Housing, 
and Urban Affairs of the Senate. 
(4) RESERVATION OF AUTHORITY.—No provision 
of this subsection shall be construed as limiting or re-
stricting the authority of the Bureau to enhance con-
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† HR 4173 PP
sumer protection standards established pursuant to 
this title in response to its own motion or in response 
to a request by any other interested person. 
(5) RULE OF CONSTRUCTION.—No provision of 
this subsection shall be construed as exempting the 
Bureau from complying with subchapter II of chapter 
5 of title 5, United States Code. 
(6) DEFINITION.—For purposes of this sub-
section, the term ‘‘consumer protection regulation’’ 
means a regulation that the Bureau is authorized to 
prescribe under the Federal consumer financial laws. 
SEC. 1042. PRESERVATION OF ENFORCEMENT POWERS OF 
STATES. 
(a) IN GENERAL.— 
(1) ACTION BY STATE.—Except as provided in 
paragraph (2), the attorney general (or the equivalent 
thereof) of any State may bring a civil action in the 
name of such State in any district court of the United 
States in that State or in State court that is located 
in that State and that has jurisdiction over the de-
fendant, to enforce provisions of this title or regula-
tions issued under this title, and to secure remedies 
under provisions of this title or remedies otherwise 
provided under other law. A State regulator may 
bring a civil action or other appropriate proceeding
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† HR 4173 PP
to enforce the provisions of this title or regulations 
issued under this title with respect to any entity that 
is State-chartered, incorporated, licensed, or otherwise 
authorized to do business under State law (except as 
provided in paragraph (2)), and to secure remedies 
under provisions of this title or remedies otherwise 
provided under other provisions of law with respect to 
such an entity. 
(2) ACTION BY STATE AGAINST NATIONAL BANK 
OR
FEDERAL
SAVINGS
ASSOCIATION
TO
ENFORCE 
RULES.— 
(A) IN
GENERAL.—Except as permitted 
under subparagraph (B), the attorney general 
(or equivalent thereof) of any State may not 
bring a civil action in the name of such State 
against a national bank or Federal savings asso-
ciation with respect to an act or omission that 
would be a violation of a provision of this title. 
(B) 
ENFORCEMENT
OF
RULES
PER-
MITTED.—The attorney general (or the equiva-
lent thereof) of any State may bring a civil ac-
tion in the name of such State against a na-
tional bank or Federal savings association in 
any district court of the United States in the 
State or in State court that is located in that
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† HR 4173 PP
State and that has jurisdiction over the defend-
ant to enforce a regulation prescribed by the Bu-
reau under a provision of this title and to secure 
remedies under provisions of this title or rem-
edies otherwise provided under other law. 
(3) RULE OF CONSTRUCTION.—No provision of 
this title shall be construed as modifying, limiting, or 
superseding the operation of any provision of an enu-
merated consumer law that relates to the authority of 
a State attorney general or State regulator to enforce 
such Federal law. 
(b) CONSULTATION REQUIRED.— 
(1) NOTICE.— 
(A) IN
GENERAL.—Before initiating any 
action in a court or other administrative or reg-
ulatory proceeding against any covered person as 
authorized by subsection (a) to enforce any pro-
vision of this title, including any regulation pre-
scribed by the Bureau under this title, a State 
attorney general or State regulator shall timely 
provide a copy of the complete complaint to be 
filed and written notice describing such action or 
proceeding to the Bureau and the prudential reg-
ulator, if any, or the designee thereof.
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(B) EMERGENCY ACTION.—If prior notice is 
not practicable, the State attorney general or 
State regulator shall provide a copy of the com-
plete complaint and the notice to the Bureau and 
the prudential regulator, if any, immediately 
upon instituting the action or proceeding. 
(C) CONTENTS OF NOTICE.—The notifica-
tion required under this paragraph shall, at a 
minimum, describe— 
(i) the identity of the parties; 
(ii) the alleged facts underlying the 
proceeding; and 
(iii) whether there may be a need to 
coordinate the prosecution of the proceeding 
so as not to interfere with any action, in-
cluding any rulemaking, undertaken by the 
Bureau, a prudential regulator, or another 
Federal agency. 
(2) BUREAU
RESPONSE.—In any action de-
scribed in paragraph (1), the Bureau may— 
(A) intervene in the action as a party; 
(B) upon intervening— 
(i) remove the action to the appro-
priate United States district court, if the 
action was not originally brought there; and
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† HR 4173 PP
(ii) be heard on all matters arising in 
the action; and 
(C) appeal any order or judgment, to the 
same extent as any other party in the proceeding 
may. 
(c) REGULATIONS.—The Bureau shall prescribe regu-
lations to implement the requirements of this section and, 
from time to time, provide guidance in order to further co-
ordinate actions with the State attorneys general and other 
regulators. 
(d) PRESERVATION OF STATE AUTHORITY.— 
(1) STATE CLAIMS.—No provision of this section 
shall be construed as altering, limiting, or affecting 
the authority of a State attorney general or any other 
regulatory or enforcement agency or authority to 
bring an action or other regulatory proceeding aris-
ing solely under the law in effect in that State. 
(2) STATE SECURITIES REGULATORS.—No provi-
sion of this title shall be construed as altering, lim-
iting, or affecting the authority of a State securities 
commission (or any agency or office performing like 
functions) under State law to adopt rules, initiate en-
forcement proceedings, or take any other action with 
respect to a person regulated by such commission or 
authority.
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(3) STATE INSURANCE REGULATORS.—No provi-
sion of this title shall be construed as altering, lim-
iting, or affecting the authority of a State insurance 
commission or State insurance regulator under State 
law to adopt rules, initiate enforcement proceedings, 
or take any other action with respect to a person reg-
ulated by such commission or regulator. 
SEC. 1043. PRESERVATION OF EXISTING CONTRACTS. 
This title, and regulations, orders, guidance, and in-
terpretations prescribed, issued, or established by the Bu-
reau, shall not be construed to alter or affect the applica-
bility of any regulation, order, guidance, or interpretation 
prescribed, issued, and established by the Comptroller of the 
Currency or the Director of the Office of Thrift Supervision 
regarding the applicability of State law under Federal 
banking law to any contract entered into on or before the 
date of enactment of this Act, by national banks, Federal 
savings associations, or subsidiaries thereof that are regu-
lated and supervised by the Comptroller of the Currency 
or the Director of the Office of Thrift Supervision, respec-
tively.
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SEC. 1044. STATE LAW PREEMPTION STANDARDS FOR NA-
TIONAL BANKS AND SUBSIDIARIES CLARI-
FIED. 
(a) IN GENERAL.—Chapter one of title LXII of the Re-
vised Statutes of the United States (12 U.S.C. 21 et seq.) 
is amended by inserting after section 5136B the following 
new section: 
‘‘SEC. 5136C. STATE LAW PREEMPTION STANDARDS FOR NA-
TIONAL BANKS AND SUBSIDIARIES CLARI-
FIED. 
‘‘(a) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) NATIONAL BANK.—The term ‘national bank’ 
includes— 
‘‘(A) any bank organized under the laws of 
the United States; and 
‘‘(B) any Federal branch established in ac-
cordance with the International Banking Act of 
1978. 
‘‘(2) STATE CONSUMER FINANCIAL LAWS.—The 
term ‘State consumer financial law’ means a State 
law that does not directly or indirectly discriminate 
against national banks and that directly and specifi-
cally regulates the manner, content, or terms and con-
ditions of any financial transaction (as may be au-
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† HR 4173 PP
thorized for national banks to engage in), or any ac-
count related thereto, with respect to a consumer. 
‘‘(3) OTHER DEFINITIONS.—The terms ‘affiliate’, 
‘subsidiary’, ‘includes’, and ‘including’ have the same 
meanings as in section 3 of the Federal Deposit In-
surance Act. 
‘‘(b) PREEMPTION STANDARD.— 
‘‘(1) IN
GENERAL.—State consumer financial 
laws are preempted, only if— 
‘‘(A) application of a State consumer finan-
cial law would have a discriminatory effect on 
national banks, in comparison with the effect of 
the law on a bank chartered by that State; 
‘‘(B) the State consumer financial law is 
preempted in accordance with the legal standard 
of the decision of the Supreme Court of the 
United States in Barnett Bank of Marion Coun-
ty, N.A. v. Nelson, Florida Insurance Commis-
sioner, et al., 517 U.S. 25 (1996), and any pre-
emption determination under this subparagraph 
may be made by a court, or by regulation or 
order of the Comptroller of the Currency on a 
case-by-case basis, in accordance with applicable 
law; or
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‘‘(C) the State consumer financial law is 
preempted by a provision of Federal law other 
than this title. 
‘‘(2) SAVINGS CLAUSE.—This title and section 24 
of the Federal Reserve Act (12 U.S.C. 371) do not 
preempt, annul, or affect the applicability of any 
State law to any subsidiary or affiliate of a national 
bank (other than a subsidiary or affiliate that is 
chartered as a national bank). 
‘‘(3) CASE-BY-CASE BASIS.— 
‘‘(A) DEFINITION.—As used in this section 
the term ‘case-by-case basis’ refers to a deter-
mination pursuant to this section made by the 
Comptroller concerning the impact of a par-
ticular State consumer financial law on any na-
tional bank that is subject to that law, or the law 
of any other State with substantively equivalent 
terms. 
‘‘(B) CONSULTATION.—When making a de-
termination on a case-by-case basis that a State 
consumer financial law of another State has sub-
stantively equivalent terms as one that the 
Comptroller is preempting, the Comptroller shall 
first consult with the Bureau of Consumer Fi-
nancial Protection and shall take the views of the
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† HR 4173 PP
Bureau into account when making the deter-
mination. 
‘‘(4) RULE OF CONSTRUCTION.—This title does 
not occupy the field in any area of State law. 
‘‘(5) STANDARDS OF REVIEW.— 
‘‘(A) PREEMPTION.—A court reviewing any 
determinations made by the Comptroller regard-
ing preemption of a State law by this title or 
section 24 of the Federal Reserve Act (12 U.S.C. 
371) shall assess the validity of such determina-
tions, depending upon the thoroughness evident 
in the consideration of the agency, the validity 
of the reasoning of the agency, the consistency 
with other valid determinations made by the 
agency, and other factors which the court finds 
persuasive and relevant to its decision. 
‘‘(B) SAVINGS CLAUSE.—Except as provided 
in subparagraph (A), nothing in this section 
shall affect the deference that a court may afford 
to the Comptroller in making determinations re-
garding the meaning or interpretation of title 
LXII of the Revised Statutes of the United States 
or other Federal laws. 
‘‘(6) COMPTROLLER DETERMINATION NOT DELE-
GABLE.—Any regulation, order, or determination
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† HR 4173 PP
made by the Comptroller of the Currency under para-
graph (1)(B) shall be made by the Comptroller, and 
shall not be delegable to another officer or employee 
of the Comptroller of the Currency. 
‘‘(c) SUBSTANTIAL EVIDENCE.—No regulation or order 
of the Comptroller of the Currency prescribed under sub-
section (b)(1)(B), shall be interpreted or applied so as to 
invalidate, or otherwise declare inapplicable to a national 
bank, the provision of the State consumer financial law, 
unless substantial evidence, made on the record of the pro-
ceeding, supports the specific finding regarding the preemp-
tion of such provision in accordance with the legal standard 
of the decision of the Supreme Court of the United States 
in Barnett Bank of Marion County, N.A. v. Nelson, Florida 
Insurance Commissioner, et al., 517 U.S. 25 (1996). 
‘‘(d) PERIODIC REVIEW OF PREEMPTION DETERMINA-
TIONS.— 
‘‘(1) IN GENERAL.—The Comptroller of the Cur-
rency shall periodically conduct a review, through no-
tice and public comment, of each determination that 
a provision of Federal law preempts a State consumer 
financial law. The agency shall conduct such review 
within the 5-year period after prescribing or other-
wise issuing such determination, and at least once 
during each 5-year period thereafter. After conducting
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the review of, and inspecting the comments made on, 
the determination, the agency shall publish a notice 
in the Federal Register announcing the decision to 
continue or rescind the determination or a proposal 
to amend the determination. Any such notice of a 
proposal to amend a determination and the subse-
quent resolution of such proposal shall comply with 
the procedures set forth in subsections (a) and (b) of 
section 5244 of the Revised Statutes of the United 
States (12 U.S.C. 43 (a), (b)). 
‘‘(2) REPORTS TO CONGRESS.—At the time of 
issuing a review conducted under paragraph (1), the 
Comptroller of the Currency shall submit a report re-
garding such review to the Committee on Financial 
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate. The report submitted to the respective 
committees shall address whether the agency intends 
to continue, rescind, or propose to amend any deter-
mination that a provision of Federal law preempts a 
State consumer financial law, and the reasons there-
for. 
‘‘(e) APPLICATION OF STATE CONSUMER FINANCIAL 
LAW TO SUBSIDIARIES AND AFFILIATES.—Notwithstanding 
any provision of this title or section 24 of Federal Reserve
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Act (12 U.S.C. 371), a State consumer financial law shall 
apply to a subsidiary or affiliate of a national bank (other 
than a subsidiary or affiliate that is chartered as a national 
bank) to the same extent that the State consumer financial 
law applies to any person, corporation, or other entity sub-
ject to such State law. 
‘‘(f) PRESERVATION OF POWERS RELATED TO CHARG-
ING INTEREST.—No provision of this title shall be construed 
as altering or otherwise affecting the authority conferred by 
section 5197 of the Revised Statutes of the United States 
(12 U.S.C. 85) for the charging of interest by a national 
bank at the rate allowed by the laws of the State, territory, 
or district where the bank is located, including with respect 
to the meaning of ‘interest’ under such provision. 
‘‘(g) TRANSPARENCY OF OCC PREEMPTION DETER-
MINATIONS.—The Comptroller of the Currency shall publish 
and update no less frequently than quarterly, a list of pre-
emption determinations by the Comptroller of the Currency 
then in effect that identifies the activities and practices cov-
ered by each determination and the requirements and con-
straints determined to be preempted.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter one of title LXII of the Revised Statutes of the 
United States is amended by inserting after the item relat-
ing to section 5136B the following new item:
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‘‘Sec. 5136C. State law preemption standards for national banks and subsidiaries 
clarified.’’. 
SEC. 1045. CLARIFICATION OF LAW APPLICABLE TO NON-
DEPOSITORY INSTITUTION SUBSIDIARIES. 
Section 5136C of the Revised Statutes of the United 
States (as added by this subtitle) is amended by adding 
at the end the following: 
‘‘(h) CLARIFICATION OF LAW APPLICABLE TO NON-
DEPOSITORY INSTITUTION SUBSIDIARIES AND AFFILIATES 
OF NATIONAL BANKS.— 
‘‘(1) DEFINITIONS.—For purposes of this sub-
section, the terms ‘depository institution’, ‘sub-
sidiary’, and ‘affiliate’ have the same meanings as in 
section 3 of the Federal Deposit Insurance Act. 
‘‘(2) RULE OF CONSTRUCTION.—No provision of 
this title or section 24 of the Federal Reserve Act (12 
U.S.C. 371) shall be construed as preempting, annul-
ling, or affecting the applicability of State law to any 
subsidiary, affiliate, or agent of a national bank 
(other than a subsidiary, affiliate, or agent that is 
chartered as a national bank).’’.
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SEC. 1046. STATE LAW PREEMPTION STANDARDS FOR FED-
ERAL SAVINGS ASSOCIATIONS AND SUBSIDI-
ARIES CLARIFIED. 
(a) IN GENERAL.—The Home Owners’ Loan Act (12 
U.S.C. 1461 et seq.) is amended by inserting after section 
5 the following new section: 
‘‘SEC. 6. STATE LAW PREEMPTION STANDARDS FOR FED-
ERAL SAVINGS ASSOCIATIONS CLARIFIED. 
‘‘(a) IN GENERAL.—Any determination by a court or 
by the Director or any successor officer or agency regarding 
the relation of State law to a provision of this Act or any 
regulation or order prescribed under this Act shall be made 
in accordance with the laws and legal standards applicable 
to national banks regarding the preemption of State law. 
‘‘(b) PRINCIPLES OF CONFLICT PREEMPTION APPLICA-
BLE.—Notwithstanding the authorities granted under sec-
tions 4 and 5, this Act does not occupy the field in any 
area of State law.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) is 
amended by striking the item relating to section 6 and in-
serting the following new item: 
‘‘Sec. 6. State law preemption standards for Federal savings associations and 
subsidiaries clarified.’’.
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SEC. 1047. VISITORIAL STANDARDS FOR NATIONAL BANKS 
AND SAVINGS ASSOCIATIONS. 
(a) NATIONAL BANKS.—Section 5136C of the Revised 
Statutes of the United States (as added by this subtitle) 
is amended by adding at the end the following: 
‘‘(i) VISITORIAL POWERS.— 
‘‘(1) IN GENERAL.—In accordance with the deci-
sion of the Supreme Court of the United States in 
Cuomo v. Clearing House Assn., L. L. C. (129 S. Ct. 
2710 (2009)), no provision of this title which relates 
to visitorial powers or otherwise limits or restricts the 
visitorial authority to which any national bank is 
subject shall be construed as limiting or restricting 
the authority of any attorney general (or other chief 
law enforcement officer) of any State to bring an ac-
tion against a national bank in a court of appro-
priate jurisdiction to enforce an applicable law and 
to seek relief as authorized by such law. 
‘‘(j) ENFORCEMENT ACTIONS.—The ability of the 
Comptroller of the Currency to bring an enforcement action 
under this title or section 5 of the Federal Trade Commis-
sion Act does not preclude any private party from enforcing 
rights granted under Federal or State law in the courts.’’. 
(b) SAVINGS ASSOCIATIONS.—Section 6 of the Home 
Owners’ Loan Act (as added by this title) is amended by 
adding at the end the following:
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‘‘(c) VISITORIAL POWERS.—The provisions of sections 
5136C(i) of the Revised Statutes of the United States shall 
apply to Federal savings associations, and any subsidiary 
thereof, to the same extent and in the same manner as if 
such savings associations, or subsidiaries thereof, were na-
tional banks or subsidiaries of national banks, respec-
tively.’’ 
‘‘(d) ENFORCEMENT ACTIONS.—The ability of the 
Comptroller of the Currency to bring an enforcement action 
under this Act or section 5 of the Federal Trade Commis-
sion Act does not preclude any private party from enforcing 
rights granted under Federal or State law in the courts.’’. 
SEC. 1048. EFFECTIVE DATE. 
This subtitle shall become effective on the designated 
transfer date. 
Subtitle E—Enforcement Powers 
SEC. 1051. DEFINITIONS. 
For purposes of this subtitle, the following definitions 
shall apply: 
(1) BUREAU INVESTIGATION.—The term ‘‘Bureau 
investigation’’ means any inquiry conducted by a Bu-
reau investigator for the purpose of ascertaining 
whether any person is or has been engaged in any 
conduct that is a violation, as defined in this section.
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(2) BUREAU INVESTIGATOR.—The term ‘‘Bureau 
investigator’’ means any attorney or investigator em-
ployed by the Bureau who is charged with the duty 
of enforcing or carrying into effect any Federal con-
sumer financial law. 
(3) CIVIL
INVESTIGATIVE
DEMAND
AND
DE-
MAND.—The terms ‘‘civil investigative demand’’ and 
‘‘demand’’ mean any demand issued by the Bureau. 
(4) CUSTODIAN.—The term ‘‘custodian’’ means 
the custodian or any deputy custodian designated by 
the Bureau. 
(5) DOCUMENTARY MATERIAL.—The term ‘‘docu-
mentary material’’ includes the original or any copy 
of any book, document, record, report, memorandum, 
paper, communication, tabulation, chart, logs, elec-
tronic files, or other data or data compilations stored 
in any medium. 
(6) VIOLATION.—The term ‘‘violation’’ means 
any act or omission that, if proved, would constitute 
a violation of any provision of Federal consumer fi-
nancial law. 
SEC. 1052. INVESTIGATIONS AND ADMINISTRATIVE DIS-
COVERY. 
(a) JOINT INVESTIGATIONS.—
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(1) IN GENERAL.—The Bureau or, where appro-
priate, a Bureau investigator, may engage in joint 
investigations and requests for information, as au-
thorized under this title. 
(2) FAIR LENDING.—The authority under para-
graph (1) includes matters relating to fair lending, 
and where appropriate, joint investigations with, and 
requests for information from, the Secretary of Hous-
ing and Urban Development, the Attorney General of 
the United States, or both. 
(b) SUBPOENAS.— 
(1) IN GENERAL.—The Bureau or a Bureau in-
vestigator may issue subpoenas for the attendance and 
testimony of witnesses and the production of relevant 
papers, books, documents, or other material in connec-
tion with hearings under this title. 
(2) FAILURE TO OBEY.—In the case of contu-
macy or refusal to obey a subpoena issued pursuant 
to this paragraph and served upon any person, the 
district court of the United States for any district in 
which such person is found, resides, or transacts busi-
ness, upon application by the Bureau or a Bureau in-
vestigator and after notice to such person, may issue 
an order requiring such person to appear and give
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testimony or to appear and produce documents or 
other material. 
(3) CONTEMPT.—Any failure to obey an order of 
the court under this subsection may be punished by 
the court as a contempt thereof. 
(c) DEMANDS.— 
(1) IN GENERAL.—Whenever the Bureau has rea-
son to believe that any person may be in possession, 
custody, or control of any documentary material or 
tangible things, or may have any information, rel-
evant to a violation, the Bureau may, before the insti-
tution of any proceedings under the Federal consumer 
financial law, issue in writing, and cause to be served 
upon such person, a civil investigative demand re-
quiring such person to— 
(A) produce such documentary material for 
inspection and copying or reproduction in the 
form or medium requested by the Bureau; 
(B) submit such tangible things; 
(C) file written reports or answers to ques-
tions; 
(D) give oral testimony concerning docu-
mentary material, tangible things, or other in-
formation; or
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(E) furnish any combination of such mate-
rial, answers, or testimony. 
(2) REQUIREMENTS.—Each civil investigative 
demand shall state the nature of the conduct consti-
tuting the alleged violation which is under investiga-
tion and the provision of law applicable to such viola-
tion. 
(3) PRODUCTION
OF
DOCUMENTS.—Each civil 
investigative demand for the production of documen-
tary material shall— 
(A) describe each class of documentary ma-
terial to be produced under the demand with 
such definiteness and certainty as to permit such 
material to be fairly identified; 
(B) prescribe a return date or dates which 
will provide a reasonable period of time within 
which the material so demanded may be assem-
bled and made available for inspection and copy-
ing or reproduction; and 
(C) identify the custodian to whom such 
material shall be made available. 
(4) PRODUCTION OF THINGS.—Each civil inves-
tigative demand for the submission of tangible things 
shall—
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(A) describe each class of tangible things to 
be submitted under the demand with such defi-
niteness and certainty as to permit such things 
to be fairly identified; 
(B) prescribe a return date or dates which 
will provide a reasonable period of time within 
which the things so demanded may be assembled 
and submitted; and 
(C) identify the custodian to whom such 
things shall be submitted. 
(5) DEMAND
FOR
WRITTEN
REPORTS
OR
AN-
SWERS.—Each civil investigative demand for written 
reports or answers to questions shall— 
(A) propound with definiteness and cer-
tainty the reports to be produced or the questions 
to be answered; 
(B) prescribe a date or dates at which time 
written reports or answers to questions shall be 
submitted; and 
(C) identify the custodian to whom such re-
ports or answers shall be submitted. 
(6) ORAL TESTIMONY.—Each civil investigative 
demand for the giving of oral testimony shall— 
(A) prescribe a date, time, and place at 
which oral testimony shall be commenced; and
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(B) identify a Bureau investigator who 
shall conduct the investigation and the custodian 
to whom the transcript of such investigation 
shall be submitted. 
(7) SERVICE.—Any civil investigative demand 
and any enforcement petition filed under this section 
may be served— 
(A) by any Bureau investigator at any 
place within the territorial jurisdiction of any 
court of the United States; and 
(B) upon any person who is not found 
within the territorial jurisdiction of any court of 
the United States— 
(i) in such manner as the Federal 
Rules of Civil Procedure prescribe for serv-
ice in a foreign nation; and 
(ii) to the extent that the courts of the 
United States have authority to assert juris-
diction over such person, consistent with 
due process, the United States District 
Court for the District of Columbia shall 
have the same jurisdiction to take any ac-
tion respecting compliance with this section 
by such person that such district court 
would have if such person were personally
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within the jurisdiction of such district 
court. 
(8) METHOD OF SERVICE.—Service of any civil 
investigative demand or any enforcement petition 
filed under this section may be made upon a person, 
including any legal entity, by— 
(A) delivering a duly executed copy of such 
demand or petition to the individual or to any 
partner, executive officer, managing agent, or 
general agent of such person, or to any agent of 
such person authorized by appointment or by 
law to receive service of process on behalf of such 
person; 
(B) delivering a duly executed copy of such 
demand or petition to the principal office or 
place of business of the person to be served; or 
(C) depositing a duly executed copy in the 
United States mails, by registered or certified 
mail, return receipt requested, duly addressed to 
such person at the principal office or place of 
business of such person. 
(9) PROOF OF SERVICE.— 
(A) IN GENERAL.—A verified return by the 
individual serving any civil investigative de-
mand or any enforcement petition filed under
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this section setting forth the manner of such serv-
ice shall be proof of such service. 
(B) RETURN
RECEIPTS.—In the case of 
service by registered or certified mail, such re-
turn shall be accompanied by the return post of-
fice receipt of delivery of such demand or en-
forcement petition. 
(10) PRODUCTION
OF
DOCUMENTARY
MATE-
RIAL.—The production of documentary material in 
response to a civil investigative demand shall be made 
under a sworn certificate, in such form as the demand 
designates, by the person, if a natural person, to 
whom the demand is directed or, if not a natural per-
son, by any person having knowledge of the facts and 
circumstances relating to such production, to the ef-
fect that all of the documentary material required by 
the demand and in the possession, custody, or control 
of the person to whom the demand is directed has 
been produced and made available to the custodian. 
(11) SUBMISSION
OF
TANGIBLE
THINGS.—The 
submission of tangible things in response to a civil 
investigative demand shall be made under a sworn 
certificate, in such form as the demand designates, by 
the person to whom the demand is directed or, if not 
a natural person, by any person having knowledge of
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the facts and circumstances relating to such produc-
tion, to the effect that all of the tangible things re-
quired by the demand and in the possession, custody, 
or control of the person to whom the demand is di-
rected have been submitted to the custodian. 
(12) SEPARATE ANSWERS.—Each reporting re-
quirement or question in a civil investigative demand 
shall be answered separately and fully in writing 
under oath, unless it is objected to, in which event the 
reasons for the objection shall be stated in lieu of an 
answer, and it shall be submitted under a sworn cer-
tificate, in such form as the demand designates, by 
the person, if a natural person, to whom the demand 
is directed or, if not a natural person, by any person 
responsible for answering each reporting requirement 
or question, to the effect that all information required 
by the demand and in the possession, custody, control, 
or knowledge of the person to whom the demand is di-
rected has been submitted. 
(13) TESTIMONY.— 
(A) IN GENERAL.— 
(i) OATH OR AFFIRMATION.—Any Bu-
reau investigator before whom oral testi-
mony is to be taken shall put the witness 
under oath or affirmation, and shall per-
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sonally, or by any individual acting under 
the direction of and in the presence of the 
Bureau investigator, record the testimony of 
the witness. 
(ii) TRANSCRIPTION.—The testimony 
shall be taken stenographically and tran-
scribed. 
(iii) TRANSMISSION TO CUSTODIAN.— 
After the testimony is fully transcribed, the 
Bureau investigator before whom the testi-
mony is taken shall promptly transmit a 
copy of the transcript of the testimony to 
the custodian. 
(B) PARTIES PRESENT.—Any Bureau in-
vestigator before whom oral testimony is to be 
taken shall exclude from the place where the tes-
timony is to be taken all other persons, except 
the person giving the testimony, the attorney of 
that person, the officer before whom the testi-
mony is to be taken, and any stenographer tak-
ing such testimony. 
(C) LOCATION.—The oral testimony of any 
person taken pursuant to a civil investigative de-
mand shall be taken in the judicial district of the 
United States in which such person resides, is
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† HR 4173 PP
found, or transacts business, or in such other 
place as may be agreed upon by the Bureau in-
vestigator before whom the oral testimony of such 
person is to be taken and such person. 
(D) ATTORNEY REPRESENTATION.— 
(i) IN
GENERAL.—Any person com-
pelled to appear under a civil investigative 
demand for oral testimony pursuant to this 
section may be accompanied, represented, 
and advised by an attorney. 
(ii) AUTHORITY.—The attorney may 
advise a person described in clause (i), in 
confidence, either upon the request of such 
person or upon the initiative of the attor-
ney, with respect to any question asked of 
such person. 
(iii) OBJECTIONS.—A person described 
in clause (i), or the attorney for that per-
son, may object on the record to any ques-
tion, in whole or in part, and such person 
shall briefly state for the record the reason 
for the objection. An objection may properly 
be made, received, and entered upon the 
record when it is claimed that such person 
is entitled to refuse to answer the question
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on grounds of any constitutional or other 
legal right or privilege, including the privi-
lege against self-incrimination, but such 
person shall not otherwise object to or refuse 
to answer any question, and such person or 
attorney shall not otherwise interrupt the 
oral examination. 
(iv) REFUSAL TO ANSWER.—If a per-
son described in clause (i) refuses to answer 
any question— 
(I) the Bureau may petition the 
district court of the United States pur-
suant to this section for an order com-
pelling such person to answer such 
question; and 
(II) on grounds of the privilege 
against self-incrimination, the testi-
mony of such person may be compelled 
in accordance with the provisions of 
section 6004 of title 18, United States 
Code. 
(E) TRANSCRIPTS.—For purposes of this 
subsection— 
(i) after the testimony of any witness 
is fully transcribed, the Bureau investigator
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shall afford the witness (who may be accom-
panied by an attorney) a reasonable oppor-
tunity to examine the transcript; 
(ii) the transcript shall be read to or 
by the witness, unless such examination and 
reading are waived by the witness; 
(iii) any changes in form or substance 
which the witness desires to make shall be 
entered and identified upon the transcript 
by the Bureau investigator, with a state-
ment of the reasons given by the witness for 
making such changes; 
(iv) the transcript shall be signed by 
the witness, unless the witness in writing 
waives the signing, is ill, cannot be found, 
or refuses to sign; and 
(v) if the transcript is not signed by 
the witness during the 30-day period fol-
lowing the date on which the witness is first 
afforded a reasonable opportunity to exam-
ine the transcript, the Bureau investigator 
shall sign the transcript and state on the 
record the fact of the waiver, illness, absence 
of the witness, or the refusal to sign, to-
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gether with any reasons given for the failure 
to sign. 
(F) CERTIFICATION BY INVESTIGATOR.—The 
Bureau investigator shall certify on the tran-
script that the witness was duly sworn by him 
or her and that the transcript is a true record 
of the testimony given by the witness, and the 
Bureau investigator shall promptly deliver the 
transcript or send it by registered or certified 
mail to the custodian. 
(G) COPY OF TRANSCRIPT.—The Bureau in-
vestigator shall furnish a copy of the transcript 
(upon payment of reasonable charges for the 
transcript) to the witness only, except that the 
Bureau may for good cause limit such witness to 
inspection of the official transcript of his testi-
mony. 
(H) WITNESS FEES.—Any witness appear-
ing for the taking of oral testimony pursuant to 
a civil investigative demand shall be entitled to 
the same fees and mileage which are paid to wit-
nesses in the district courts of the United States. 
(d) CONFIDENTIAL TREATMENT OF DEMAND MATE-
RIAL.—
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(1) IN GENERAL.—Documentary materials and 
tangible things received as a result of a civil inves-
tigative demand shall be subject to requirements and 
procedures regarding confidentiality, in accordance 
with rules established by the Bureau. 
(2) DISCLOSURE TO CONGRESS.—No rule estab-
lished by the Bureau regarding the confidentiality of 
materials submitted to, or otherwise obtained by, the 
Bureau shall be intended to prevent disclosure to ei-
ther House of Congress or to an appropriate com-
mittee of the Congress, except that the Bureau is per-
mitted to adopt rules allowing prior notice to any 
party that owns or otherwise provided the material to 
the Bureau and had designated such material as con-
fidential. 
(e) PETITION FOR ENFORCEMENT.— 
(1) IN GENERAL.—Whenever any person fails to 
comply with any civil investigative demand duly 
served upon him under this section, or whenever satis-
factory copying or reproduction of material requested 
pursuant to the demand cannot be accomplished and 
such person refuses to surrender such material, the 
Bureau, through such officers or attorneys as it may 
designate, may file, in the district court of the United 
States for any judicial district in which such person
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resides, is found, or transacts business, and serve 
upon such person, a petition for an order of such 
court for the enforcement of this section. 
(2) SERVICE OF PROCESS.—All process of any 
court to which application may be made as provided 
in this subsection may be served in any judicial dis-
trict. 
(f) PETITION FOR ORDER MODIFYING OR SETTING 
ASIDE DEMAND.— 
(1) IN GENERAL.—Not later than 20 days after 
the service of any civil investigative demand upon 
any person under subsection (b), or at any time be-
fore the return date specified in the demand, which-
ever period is shorter, or within such period exceeding 
20 days after service or in excess of such return date 
as may be prescribed in writing, subsequent to serv-
ice, by any Bureau investigator named in the de-
mand, such person may file with the Bureau a peti-
tion for an order by the Bureau modifying or setting 
aside the demand. 
(2) COMPLIANCE DURING PENDENCY.—The time 
permitted for compliance with the demand in whole 
or in part, as determined proper and ordered by the 
Bureau, shall not run during the pendency of a peti-
tion under paragraph (1) at the Bureau, except that
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such person shall comply with any portions of the de-
mand not sought to be modified or set aside. 
(3) SPECIFIC GROUNDS.—A petition under para-
graph (1) shall specify each ground upon which the 
petitioner relies in seeking relief, and may be based 
upon any failure of the demand to comply with the 
provisions of this section, or upon any constitutional 
or other legal right or privilege of such person. 
(g) CUSTODIAL CONTROL.—At any time during which 
any custodian is in custody or control of any documentary 
material, tangible things, reports, answers to questions, or 
transcripts of oral testimony given by any person in com-
pliance with any civil investigative demand, such person 
may file, in the district court of the United States for the 
judicial district within which the office of such custodian 
is situated, and serve upon such custodian, a petition for 
an order of such court requiring the performance by such 
custodian of any duty imposed upon him by this section 
or rule promulgated by the Bureau. 
(h) JURISDICTION OF COURT.— 
(1) IN GENERAL.—Whenever any petition is filed 
in any district court of the United States under this 
section, such court shall have jurisdiction to hear and 
determine the matter so presented, and to enter such
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order or orders as may be required to carry out the 
provisions of this section. 
(2) APPEAL.—Any final order entered as de-
scribed in paragraph (1) shall be subject to appeal 
pursuant to section 1291 of title 28, United States 
Code. 
SEC. 1053. HEARINGS AND ADJUDICATION PROCEEDINGS. 
(a) IN GENERAL.—The Bureau is authorized to con-
duct hearings and adjudication proceedings with respect to 
any person in the manner prescribed by chapter 5 of title 
5, United States Code in order to ensure or enforce compli-
ance with— 
(1) the provisions of this title, including any 
rules prescribed by the Bureau under this title; and 
(2) any other Federal law that the Bureau is au-
thorized to enforce, including an enumerated con-
sumer law, and any regulations or order prescribed 
thereunder, unless such Federal law specifically limits 
the Bureau from conducting a hearing or adjudica-
tion proceeding and only to the extent of such limita-
tion. 
(b) SPECIAL RULES
FOR CEASE-AND-DESIST PRO-
CEEDINGS.— 
(1) ORDERS AUTHORIZED.—
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(A) IN GENERAL.—If, in the opinion of the 
Bureau, any covered person or service provider 
is engaging or has engaged in an activity that 
violates a law, rule, or any condition imposed in 
writing on the person by the Bureau, the Bureau 
may, subject to sections 1024, 1025, and 1026, 
issue and serve upon the covered person or serv-
ice provider a notice of charges in respect thereof. 
(B) CONTENT
OF
NOTICE.—The notice 
under subparagraph (A) shall contain a state-
ment of the facts constituting the alleged viola-
tion or violations, and shall fix a time and place 
at which a hearing will be held to determine 
whether an order to cease and desist should issue 
against the covered person or service provider, 
such hearing to be held not earlier than 30 days 
nor later than 60 days after the date of service 
of such notice, unless an earlier or a later date 
is set by the Bureau, at the request of any party 
so served. 
(C) CONSENT.—Unless the party or parties 
served under subparagraph (B) appear at the 
hearing personally or by a duly authorized rep-
resentative, such person shall be deemed to have
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consented to the issuance of the cease-and-desist 
order. 
(D) PROCEDURE.—In the event of consent 
under subparagraph (C), or if, upon the record, 
made at any such hearing, the Bureau finds that 
any violation specified in the notice of charges 
has been established, the Bureau may issue and 
serve upon the covered person or service provider 
an order to cease and desist from the violation 
or practice. Such order may, by provisions which 
may be mandatory or otherwise, require the cov-
ered person or service provider to cease and de-
sist from the subject activity, and to take affirm-
ative action to correct the conditions resulting 
from any such violation. 
(2) EFFECTIVENESS OF ORDER.—A cease-and-de-
sist order shall become effective at the expiration of 30 
days after the date of service of an order under para-
graph (1) upon the covered person or service provider 
concerned (except in the case of a cease-and-desist 
order issued upon consent, which shall become effec-
tive at the time specified therein), and shall remain 
effective and enforceable as provided therein, except to 
such extent as the order is stayed, modified, termi-
1364 
† HR 4173 PP
nated, or set aside by action of the Bureau or a re-
viewing court. 
(3) DECISION AND APPEAL.—Any hearing pro-
vided for in this subsection shall be held in the Fed-
eral judicial district or in the territory in which the 
residence or principal office or place of business of the 
person is located unless the person consents to another 
place, and shall be conducted in accordance with the 
provisions of chapter 5 of title 5 of the United States 
Code. After such hearing, and within 90 days after 
the Bureau has notified the parties that the case has 
been submitted to the Bureau for final decision, the 
Bureau shall render its decision (which shall include 
findings of fact upon which its decision is predicated) 
and shall issue and serve upon each party to the pro-
ceeding an order or orders consistent with the provi-
sions of this section. Judicial review of any such 
order shall be exclusively as provided in this sub-
section. Unless a petition for review is timely filed in 
a court of appeals of the United States, as provided 
in paragraph (4), and thereafter until the record in 
the proceeding has been filed as provided in para-
graph (4), the Bureau may at any time, upon such 
notice and in such manner as the Bureau shall deter-
mine proper, modify, terminate, or set aside any such
1365 
† HR 4173 PP
order. Upon filing of the record as provided, the Bu-
reau may modify, terminate, or set aside any such 
order with permission of the court. 
(4) APPEAL TO COURT OF APPEALS.—Any party 
to any proceeding under this subsection may obtain 
a review of any order served pursuant to this sub-
section (other than an order issued with the consent 
of the person concerned) by the filing in the court of 
appeals of the United States for the circuit in which 
the principal office of the covered person is located, or 
in the United States Court of Appeals for the District 
of Columbia Circuit, within 30 days after the date of 
service of such order, a written petition praying that 
the order of the Bureau be modified, terminated, or 
set aside. A copy of such petition shall be forthwith 
transmitted by the clerk of the court to the Bureau, 
and thereupon the Bureau shall file in the court the 
record in the proceeding, as provided in section 2112 
of title 28 of the United States Code. Upon the filing 
of such petition, such court shall have jurisdiction, 
which upon the filing of the record shall except as 
provided in the last sentence of paragraph (3) be ex-
clusive, to affirm, modify, terminate, or set aside, in 
whole or in part, the order of the Bureau. Review of 
such proceedings shall be had as provided in chapter
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7 of title 5 of the United States Code. The judgment 
and decree of the court shall be final, except that the 
same shall be subject to review by the Supreme Court 
of the United States, upon certiorari, as provided in 
section 1254 of title 28 of the United States Code. 
(5) NO STAY.—The commencement of proceedings 
for judicial review under paragraph (4) shall not, un-
less specifically ordered by the court, operate as a 
stay of any order issued by the Bureau. 
(c) SPECIAL RULES FOR TEMPORARY CEASE-AND-DE-
SIST PROCEEDINGS.— 
(1) IN GENERAL.—Whenever the Bureau deter-
mines that the violation specified in the notice of 
charges served upon a person, including a service pro-
vider, pursuant to subsection (b), or the continuation 
thereof, is likely to cause the person to be insolvent or 
otherwise prejudice the interests of consumers before 
the completion of the proceedings conducted pursuant 
to subsection (b), the Bureau may issue a temporary 
order requiring the person to cease and desist from 
any such violation or practice and to take affirmative 
action to prevent or remedy such insolvency or other 
condition pending completion of such proceedings. 
Such order may include any requirement authorized 
under this subtitle. Such order shall become effective
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upon service upon the person and, unless set aside, 
limited, or suspended by a court in proceedings au-
thorized by paragraph (2), shall remain effective and 
enforceable pending the completion of the administra-
tive proceedings pursuant to such notice and until 
such time as the Bureau shall dismiss the charges 
specified in such notice, or if a cease-and-desist order 
is issued against the person, until the effective date of 
such order. 
(2) APPEAL.—Not later than 10 days after the 
covered person or service provider concerned has been 
served with a temporary cease-and-desist order, the 
person may apply to the United States district court 
for the judicial district in which the residence or 
principal office or place of business of the person is 
located, or the United States District Court for the 
District of Columbia, for an injunction setting aside, 
limiting, or suspending the enforcement, operation, or 
effectiveness of such order pending the completion of 
the administrative proceedings pursuant to the notice 
of charges served upon the person under subsection 
(b), and such court shall have jurisdiction to issue 
such injunction. 
(3) INCOMPLETE OR INACCURATE RECORDS.—
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(A) TEMPORARY
ORDER.—If a notice of 
charges served under subsection (b) specifies, on 
the basis of particular facts and circumstances, 
that the books and records of a covered person or 
service provider are so incomplete or inaccurate 
that the Bureau is unable to determine the fi-
nancial condition of that person or the details or 
purpose of any transaction or transactions that 
may have a material effect on the financial con-
dition of that person, the Bureau may issue a 
temporary order requiring— 
(i) the cessation of any activity or 
practice which gave rise, whether in whole 
or in part, to the incomplete or inaccurate 
state of the books or records; or 
(ii) affirmative action to restore such 
books or records to a complete and accurate 
state, until the completion of the pro-
ceedings under subsection (b)(1). 
(B) EFFECTIVE
PERIOD.—Any temporary 
order issued under subparagraph (A)— 
(i) shall become effective upon service; 
and 
(ii) unless set aside, limited, or sus-
pended by a court in proceedings under
1369 
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paragraph (2), shall remain in effect and 
enforceable until the earlier of— 
(I) the completion of the pro-
ceeding initiated under subsection (b) 
in connection with the notice of 
charges; or 
(II) the date the Bureau deter-
mines, by examination or otherwise, 
that the books and records of the cov-
ered person or service provider are ac-
curate and reflect the financial condi-
tion thereof. 
(d) SPECIAL RULES
FOR ENFORCEMENT
OF OR-
DERS.— 
(1) IN GENERAL.—The Bureau may in its dis-
cretion apply to the United States district court with-
in the jurisdiction of which the principal office or 
place of business of the person is located, for the en-
forcement of any effective and outstanding notice or 
order issued under this section, and such court shall 
have jurisdiction and power to order and require 
compliance herewith. 
(2) EXCEPTION.—Except as otherwise provided 
in this subsection, no court shall have jurisdiction to 
affect by injunction or otherwise the issuance or en-
1370 
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forcement of any notice or order or to review, modify, 
suspend, terminate, or set aside any such notice or 
order. 
(e) RULES.—The Bureau shall prescribe rules estab-
lishing such procedures as may be necessary to carry out 
this section. 
SEC. 1054. LITIGATION AUTHORITY. 
(a) IN GENERAL.—If any person violates a Federal 
consumer financial law, the Bureau may, subject to sections 
1024, 1025, and 1026, commence a civil action against such 
person to impose a civil penalty or to seek all appropriate 
legal and equitable relief including a permanent or tem-
porary injunction as permitted by law. 
(b) REPRESENTATION.—The Bureau may act in its 
own name and through its own attorneys in enforcing any 
provision of this title, rules thereunder, or any other law 
or regulation, or in any action, suit, or proceeding to which 
the Bureau is a party. 
(c) COMPROMISE OF ACTIONS.—The Bureau may com-
promise or settle any action if such compromise is approved 
by the court. 
(d) NOTICE
TO
THE ATTORNEY GENERAL.—When 
commencing a civil action under Federal consumer finan-
cial law, or any rule thereunder, the Bureau shall notify 
the Attorney General and, with respect to a civil action
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against an insured depository institution or insured credit 
union, the appropriate prudential regulator. 
(e) APPEARANCE BEFORE THE SUPREME COURT.— 
The Bureau may represent itself in its own name before 
the Supreme Court of the United States, provided that the 
Bureau makes a written request to the Attorney General 
within the 10-day period which begins on the date of entry 
of the judgment which would permit any party to file a 
petition for writ of certiorari, and the Attorney General 
concurs with such request or fails to take action within 60 
days of the request of the Bureau. 
(f) FORUM.—Any civil action brought under this title 
may be brought in a United States district court or in any 
court of competent jurisdiction of a state in a district in 
which the defendant is located or resides or is doing busi-
ness, and such court shall have jurisdiction to enjoin such 
person and to require compliance with any Federal con-
sumer financial law. 
(g) TIME FOR BRINGING ACTION.— 
(1) IN GENERAL.—Except as otherwise permitted 
by law or equity, no action may be brought under 
this title more than 3 years after the date of discovery 
of the violation to which an action relates. 
(2) 
LIMITATIONS
UNDER
OTHER
FEDERAL 
LAWS.—
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(A) IN GENERAL.—For purposes of this sub-
section, an action arising under this title does 
not include claims arising solely under enumer-
ated consumer laws. 
(B) BUREAU AUTHORITY.—In any action 
arising solely under an enumerated consumer 
law, the Bureau may commence, defend, or inter-
vene in the action in accordance with the re-
quirements of that provision of law, as applica-
ble. 
(C) TRANSFERRED
AUTHORITY.—In any 
action arising solely under laws for which au-
thorities were transferred under subtitles F and 
H, the Bureau may commence, defend, or inter-
vene in the action in accordance with the re-
quirements of that provision of law, as applica-
ble. 
SEC. 1055. RELIEF AVAILABLE. 
(a) ADMINISTRATIVE PROCEEDINGS OR COURT AC-
TIONS.— 
(1) JURISDICTION.—The court (or the Bureau, as 
the case may be) in an action or adjudication pro-
ceeding brought under Federal consumer financial 
law, shall have jurisdiction to grant any appropriate 
legal or equitable relief with respect to a violation of
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Federal consumer financial law, including a violation 
of a rule or order prescribed under a Federal con-
sumer financial law. 
(2) RELIEF.—Relief under this section may in-
clude, without limitation— 
(A) rescission or reformation of contracts; 
(B) refund of moneys or return of real 
property; 
(C) restitution; 
(D) disgorgement or compensation for un-
just enrichment; 
(E) payment of damages or other monetary 
relief; 
(F) public notification regarding the viola-
tion, including the costs of notification; 
(G) limits on the activities or functions of 
the person; and 
(H) civil money penalties, as set forth more 
fully in subsection (c). 
(3) NO EXEMPLARY OR PUNITIVE DAMAGES.— 
Nothing in this subsection shall be construed as au-
thorizing the imposition of exemplary or punitive 
damages. 
(b) RECOVERY OF COSTS.—In any action brought by 
the Bureau, a State attorney general, or any State regulator
1374 
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to enforce any Federal consumer financial law, the Bureau, 
the State attorney general, or the State regulator may re-
cover its costs in connection with prosecuting such action 
if the Bureau, the State attorney general, or the State regu-
lator is the prevailing party in the action. 
(c) CIVIL MONEY PENALTY IN COURT AND ADMINIS-
TRATIVE ACTIONS.— 
(1) IN
GENERAL.—Any person that violates, 
through any act or omission, any provision of Federal 
consumer financial law shall forfeit and pay a civil 
penalty pursuant to this subsection. 
(2) PENALTY AMOUNTS.— 
(A) FIRST TIER.—For any violation of a 
law, rule, or final order or condition imposed in 
writing by the Bureau, a civil penalty may not 
exceed $5,000 for each day during which such 
violation or failure to pay continues. 
(B) SECOND TIER.—Notwithstanding para-
graph (A), for any person that recklessly engages 
in a violation of a Federal consumer financial 
law, a civil penalty may not exceed $25,000 for 
each day during which such violation continues. 
(C) THIRD
TIER.—Notwithstanding sub-
paragraphs (A) and (B), for any person that 
knowingly violates a Federal consumer financial
1375 
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law, a civil penalty may not exceed $1,000,000 
for each day during which such violation con-
tinues. 
(3) MITIGATING FACTORS.—In determining the 
amount of any penalty assessed under paragraph (2), 
the Bureau or the court shall take into account the 
appropriateness of the penalty with respect to— 
(A) the size of financial resources and good 
faith of the person charged; 
(B) the gravity of the violation or failure to 
pay; 
(C) the severity of the risks to or losses of 
the consumer, which may take into account the 
number of products or services sold or provided; 
(D) the history of previous violations; and 
(E) such other matters as justice may re-
quire. 
(4) AUTHORITY
TO
MODIFY
OR
REMIT
PEN-
ALTY.—The Bureau may compromise, modify, or 
remit any penalty which may be assessed or had al-
ready been assessed under paragraph (2). The amount 
of such penalty, when finally determined, shall be ex-
clusive of any sums owed by the person to the United 
States in connection with the costs of the proceeding,
1376 
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and may be deducted from any sums owing by the 
United States to the person charged. 
(5) NOTICE
AND
HEARING.—No civil penalty 
may be assessed under this subsection with respect to 
a violation of any Federal consumer financial law, 
unless— 
(A) the Bureau gives notice and an oppor-
tunity for a hearing to the person accused of the 
violation; or 
(B) the appropriate court has ordered such 
assessment and entered judgment in favor of the 
Bureau. 
SEC. 1056. REFERRALS FOR CRIMINAL PROCEEDINGS. 
If the Bureau obtains evidence that any person, domes-
tic or foreign, has engaged in conduct that may constitute 
a violation of Federal criminal law, the Bureau shall have 
the power to transmit such evidence to the Attorney General 
of the United States, who may institute criminal pro-
ceedings under appropriate law. Nothing in this section af-
fects any other authority of the Bureau to disclose informa-
tion. 
SEC. 1057. EMPLOYEE PROTECTION. 
(a) IN GENERAL.—No covered person or service pro-
vider shall terminate or in any other way discriminate 
against, or cause to be terminated or discriminated against,
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any covered employee or any authorized representative of 
covered employees by reason of the fact that such employee 
or representative, whether at the initiative of the employee 
or in the ordinary course of the duties of the employee (or 
any person acting pursuant to a request of the employee), 
has— 
(1) provided, caused to be provided, or is about 
to provide or cause to be provided, information to the 
employer, the Bureau, or any other State, local, or 
Federal, government authority or law enforcement 
agency relating to any violation of, or any act or 
omission that the employee reasonably believes to be 
a violation of, any provision of this title or any other 
provision of law that is subject to the jurisdiction of 
the Bureau, or any rule, order, standard, or prohibi-
tion prescribed by the Bureau; 
(2) testified or will testify in any proceeding re-
sulting from the administration or enforcement of 
any provision of this title or any other provision of 
law that is subject to the jurisdiction of the Bureau, 
or any rule, order, standard, or prohibition prescribed 
by the Bureau; 
(3) filed, instituted, or caused to be filed or insti-
tuted any proceeding under any Federal consumer fi-
nancial law; or
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(4) objected to, or refused to participate in, any 
activity, policy, practice, or assigned task that the 
employee (or other such person) reasonably believed to 
be in violation of any law, rule, order, standard, or 
prohibition, subject to the jurisdiction of, or enforce-
able by, the Bureau. 
(b) DEFINITION OF COVERED EMPLOYEE.—For the 
purposes of this section, the term ‘‘covered employee’’ means 
any individual performing tasks related to the offering or 
provision of a consumer financial product or service. 
(c) PROCEDURES AND TIMETABLES.— 
(1) COMPLAINT.— 
(A) IN GENERAL.—A person who believes 
that he or she has been discharged or otherwise 
discriminated against by any person in viola-
tion of subsection (a) may, not later than 180 
days after the date on which such alleged viola-
tion occurs, file (or have any person file on his 
or her behalf) a complaint with the Secretary of 
Labor alleging such discharge or discrimination 
and identifying the person responsible for such 
act. 
(B) ACTIONS OF SECRETARY OF LABOR.— 
Upon receipt of such a complaint, the Secretary 
of Labor shall notify, in writing, the person
1379 
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named in the complaint who is alleged to have 
committed the violation, of— 
(i) the filing of the complaint; 
(ii) the allegations contained in the 
complaint; 
(iii) the substance of evidence sup-
porting the complaint; and 
(iv) opportunities that will be afforded 
to such person under paragraph (2). 
(2) INVESTIGATION BY SECRETARY OF LABOR.— 
(A) IN GENERAL.—Not later than 60 days 
after the date of receipt of a complaint filed 
under paragraph (1), and after affording the 
complainant and the person named in the com-
plaint who is alleged to have committed the vio-
lation that is the basis for the complaint an op-
portunity to submit to the Secretary of Labor a 
written response to the complaint and an oppor-
tunity to meet with a representative of the Sec-
retary of Labor to present statements from wit-
nesses, the Secretary of Labor shall— 
(i) initiate an investigation and deter-
mine whether there is reasonable cause to 
believe that the complaint has merit; and
1380 
† HR 4173 PP
(ii) notify the complainant and the 
person alleged to have committed the viola-
tion of subsection (a), in writing, of such 
determination. 
(B) NOTICE OF RELIEF AVAILABLE.—If the 
Secretary of Labor concludes that there is rea-
sonable cause to believe that a violation of sub-
section (a) has occurred, the Secretary of Labor 
shall, together with the notice under subpara-
graph (A)(ii), issue a preliminary order pro-
viding the relief prescribed by paragraph (4)(B). 
(C) REQUEST
FOR
HEARING.—Not later 
than 30 days after the date of receipt of notifica-
tion of a determination of the Secretary of Labor 
under this paragraph, either the person alleged 
to have committed the violation or the complain-
ant may file objections to the findings or pre-
liminary order, or both, and request a hearing 
on the record. The filing of such objections shall 
not operate to stay any reinstatement remedy 
contained in the preliminary order. Any such 
hearing shall be conducted expeditiously, and if 
a hearing is not requested in such 30-day period, 
the preliminary order shall be deemed a final 
order that is not subject to judicial review.
1381 
† HR 4173 PP
(3) GROUNDS
FOR
DETERMINATION
OF
COM-
PLAINTS.— 
(A) IN GENERAL.—The Secretary of Labor 
shall dismiss a complaint filed under this sub-
section, and shall not conduct an investigation 
otherwise required under paragraph (2), unless 
the complainant makes a prima facie showing 
that any behavior described in paragraphs (1) 
through (4) of subsection (a) was a contributing 
factor in the unfavorable personnel action alleged 
in the complaint. 
(B) 
REBUTTAL
EVIDENCE.—Notwith-
standing a finding by the Secretary of Labor 
that the complainant has made the showing re-
quired under subparagraph (A), no investigation 
otherwise required under paragraph (2) shall be 
conducted, if the employer demonstrates, by clear 
and convincing evidence, that the employer 
would have taken the same unfavorable personnel 
action in the absence of that behavior. 
(C) EVIDENTIARY
STANDARDS.—The Sec-
retary of Labor may determine that a violation 
of subsection (a) has occurred only if the com-
plainant demonstrates that any behavior de-
scribed in paragraphs (1) through (4) of sub-
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section (a) was a contributing factor in the unfa-
vorable personnel action alleged in the com-
plaint. Relief may not be ordered under subpara-
graph (A) if the employer demonstrates by clear 
and convincing evidence that the employer would 
have taken the same unfavorable personnel ac-
tion in the absence of that behavior. 
(4) ISSUANCE OF FINAL ORDERS; REVIEW PROCE-
DURES.— 
(A) TIMING.—Not later than 120 days after 
the date of conclusion of any hearing under 
paragraph (2), the Secretary of Labor shall issue 
a final order providing the relief prescribed by 
this paragraph or denying the complaint. At any 
time before issuance of a final order, a pro-
ceeding under this subsection may be terminated 
on the basis of a settlement agreement entered 
into by the Secretary of Labor, the complainant, 
and the person alleged to have committed the 
violation. 
(B) PENALTIES.— 
(i) 
ORDER
OF
SECRETARY
OF 
LABOR.—If, in response to a complaint filed 
under paragraph (1), the Secretary of 
Labor determines that a violation of sub-
1383 
† HR 4173 PP
section (a) has occurred, the Secretary of 
Labor shall order the person who committed 
such violation— 
(I) to take affirmative action to 
abate the violation; 
(II) to reinstate the complainant 
to his or her former position, together 
with compensation (including back 
pay) and restore the terms, conditions, 
and privileges associated with his or 
her employment; and 
(III) to provide compensatory 
damages to the complainant. 
(ii) PENALTY.—If an order is issued 
under clause (i), the Secretary of Labor, at 
the request of the complainant, shall assess 
against the person against whom the order 
is issued, a sum equal to the aggregate 
amount of all costs and expenses (including 
attorney fees and expert witness fees) rea-
sonably incurred, as determined by the Sec-
retary of Labor, by the complainant for, or 
in connection with, the bringing of the com-
plaint upon which the order was issued.
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(C) PENALTY FOR FRIVOLOUS CLAIMS.—If 
the Secretary of Labor finds that a complaint 
under paragraph (1) is frivolous or has been 
brought in bad faith, the Secretary of Labor may 
award to the prevailing employer a reasonable 
attorney fee, not exceeding $1,000, to be paid by 
the complainant. 
(D) DE NOVO REVIEW.— 
(i) FAILURE OF THE SECRETARY TO 
ACT.—If the Secretary of Labor has not 
issued a final order within 210 days after 
the date of filing of a complaint under this 
subsection, or within 90 days after the date 
of receipt of a written determination, the 
complainant may bring an action at law or 
equity for de novo review in the appropriate 
district court of the United States having 
jurisdiction, which shall have jurisdiction 
over such an action without regard to the 
amount in controversy, and which action 
shall, at the request of either party to such 
action, be tried by the court with a jury. 
(ii) 
PROCEDURES.—A 
proceeding 
under clause (i) shall be governed by the 
same legal burdens of proof specified in
1385 
† HR 4173 PP
paragraph (3). The court shall have juris-
diction to grant all relief necessary to make 
the employee whole, including injunctive re-
lief and compensatory damages, includ-
ing— 
(I) reinstatement with the same 
seniority status that the employee 
would have had, but for the discharge 
or discrimination; 
(II) the amount of back pay, with 
interest; and 
(III) compensation for any special 
damages sustained as a result of the 
discharge or discrimination, including 
litigation costs, expert witness fees, and 
reasonable attorney fees. 
(E) OTHER
APPEALS.—Unless the com-
plainant brings an action under subparagraph 
(D), any person adversely affected or aggrieved 
by a final order issued under subparagraph (A) 
may file a petition for review of the order in the 
United States Court of Appeals for the circuit in 
which the violation with respect to which the 
order was issued, allegedly occurred or the cir-
cuit in which the complainant resided on the
1386 
† HR 4173 PP
date of such violation, not later than 60 days 
after the date of the issuance of the final order 
of the Secretary of Labor under subparagraph 
(A). Review shall conform to chapter 7 of title 5, 
United States Code. The commencement of pro-
ceedings under this subparagraph shall not, un-
less ordered by the court, operate as a stay of the 
order. An order of the Secretary of Labor with 
respect to which review could have been obtained 
under this subparagraph shall not be subject to 
judicial review in any criminal or other civil 
proceeding. 
(5) FAILURE TO COMPLY WITH ORDER.— 
(A) ACTIONS BY THE SECRETARY.—If any 
person has failed to comply with a final order 
issued under paragraph (4), the Secretary of 
Labor may file a civil action in the United 
States district court for the district in which the 
violation was found to have occurred, or in the 
United States district court for the District of 
Columbia, to enforce such order. In actions 
brought under this paragraph, the district courts 
shall have jurisdiction to grant all appropriate 
relief including injunctive relief and compen-
satory damages.
1387 
† HR 4173 PP
(B) CIVIL
ACTIONS
TO
COMPEL
COMPLI-
ANCE.—A person on whose behalf an order was 
issued under paragraph (4) may commence a 
civil action against the person to whom such 
order was issued to require compliance with such 
order. The appropriate United States district 
court shall have jurisdiction, without regard to 
the amount in controversy or the citizenship of 
the parties, to enforce such order. 
(C) AWARD OF COSTS AUTHORIZED.—The 
court, in issuing any final order under this 
paragraph, may award costs of litigation (in-
cluding reasonable attorney and expert witness 
fees) to any party, whenever the court determines 
such award is appropriate. 
(D) MANDAMUS PROCEEDINGS.—Any non-
discretionary duty imposed by this section shall 
be enforceable in a mandamus proceeding 
brought under section 1361 of title 28, United 
States Code. 
(d) UNENFORCEABILITY OF CERTAIN AGREEMENTS.— 
(1) NO WAIVER OF RIGHTS AND REMEDIES.—Ex-
cept as provided under paragraph (3), and notwith-
standing any other provision of law, the rights and 
remedies provided for in this section may not be
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† HR 4173 PP
waived by any agreement, policy, form, or condition 
of employment, including by any predispute arbitra-
tion agreement. 
(2) 
NO
PREDISPUTE
ARBITRATION
AGREE-
MENTS.—Except as provided under paragraph (3), 
and notwithstanding any other provision of law, no 
predispute arbitration agreement shall be valid or en-
forceable to the extent that it requires arbitration of 
a dispute arising under this section. 
(3) EXCEPTION.—Notwithstanding paragraphs 
(1) and (2), an arbitration provision in a collective 
bargaining agreement shall be enforceable as to dis-
putes arising under subsection (a)(4), unless the Bu-
reau determines, by rule, that such provision is incon-
sistent with the purposes of this title. 
SEC. 1058. EFFECTIVE DATE. 
This subtitle shall become effective on the designated 
transfer date. 
Subtitle F—Transfer of Functions 
and 
Personnel; 
Transitional 
Provisions 
SEC. 1061. TRANSFER OF CONSUMER FINANCIAL PROTEC-
TION FUNCTIONS. 
(a) DEFINED TERMS.—For purposes of this subtitle—
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† HR 4173 PP
(1) the term ‘‘consumer financial protection 
functions’’ means research, rulemaking, issuance of 
orders or guidance, supervision, examination, and en-
forcement activities, powers, and duties relating to the 
offering or provision of consumer financial products 
or services; and 
(2) the terms ‘‘transferor agency’’ and ‘‘trans-
feror agencies’’ mean, respectively— 
(A) the Board of Governors (and any Fed-
eral reserve bank, as the context requires), the 
Federal Deposit Insurance Corporation, the Fed-
eral Trade Commission, the National Credit 
Union Administration, the Office of the Comp-
troller of the Currency, the Office of Thrift Su-
pervision, and the Department of Housing and 
Urban Development, and the heads of those agen-
cies; and 
(B) the agencies listed in subparagraph (A), 
collectively. 
(b) IN GENERAL.—Except as provided in subsection 
(c), consumer financial protection functions are transferred 
as follows: 
(1) BOARD OF GOVERNORS.— 
(A) TRANSFER
OF
FUNCTIONS.—All con-
sumer financial protection functions of the
1390 
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Board of Governors are transferred to the Bu-
reau. 
(B) BOARD OF GOVERNORS AUTHORITY.— 
The Bureau shall have all powers and duties 
that were vested in the Board of Governors, re-
lating to consumer financial protection func-
tions, on the day before the designated transfer 
date. 
(2) COMPTROLLER OF THE CURRENCY.— 
(A) TRANSFER
OF
FUNCTIONS.—All con-
sumer financial protection functions of the 
Comptroller of the Currency are transferred to 
the Bureau. 
(B) COMPTROLLER
AUTHORITY.—The Bu-
reau shall have all powers and duties that were 
vested in the Comptroller of the Currency, relat-
ing to consumer financial protection functions, 
on the day before the designated transfer date. 
(3) DIRECTOR OF THE OFFICE OF THRIFT SU-
PERVISION.— 
(A) TRANSFER
OF
FUNCTIONS.—All con-
sumer financial protection functions of the Di-
rector of the Office of Thrift Supervision are 
transferred to the Bureau.
1391 
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(B) DIRECTOR
AUTHORITY.—The Bureau 
shall have all powers and duties that were vested 
in the Director of the Office of Thrift Super-
vision, relating to consumer financial protection 
functions, on the day before the designated trans-
fer date. 
(4) FEDERAL
DEPOSIT
INSURANCE
CORPORA-
TION.— 
(A) TRANSFER
OF
FUNCTIONS.—All con-
sumer financial protection functions of the Fed-
eral Deposit Insurance Corporation are trans-
ferred to the Bureau. 
(B) CORPORATION
AUTHORITY.—The Bu-
reau shall have all powers and duties that were 
vested in the Federal Deposit Insurance Corpora-
tion, relating to consumer financial protection 
functions, on the day before the designated trans-
fer date. 
(5) FEDERAL TRADE COMMISSION.— 
(A) TRANSFER
OF
FUNCTIONS.—The au-
thority of the Federal Trade Commission under 
an enumerated consumer law to prescribe rules, 
issue guidelines, or conduct a study or issue a 
report mandated under such law shall be trans-
ferred to the Bureau on the designated transfer
1392 
† HR 4173 PP
date. Nothing in this title shall be construed to 
require a mandatory transfer of any employee of 
the Federal Trade Commission. 
(B) BUREAU AUTHORITY.— 
(i) IN
GENERAL.—The Bureau shall 
have all powers and duties under the enu-
merated consumer laws to prescribe rules, 
issue guidelines, or to conduct studies or 
issue reports mandated by such laws, that 
were vested in the Federal Trade Commis-
sion on the day before the designated trans-
fer date. 
(ii) 
FEDERAL
TRADE
COMMISSION 
ACT.—Subject to subtitle B, the Bureau 
may enforce a rule prescribed under the 
Federal Trade Commission Act by the Fed-
eral Trade Commission with respect to an 
unfair or deceptive act or practice to the ex-
tent that such rule applies to a covered per-
son or service provider with respect to the 
offering or provision of a consumer finan-
cial product or service as if it were a rule 
prescribed under section 1031 of this title. 
(C) AUTHORITY OF THE FEDERAL TRADE 
COMMISSION.—
1393 
† HR 4173 PP
(i) IN GENERAL.—No provision of this 
title shall be construed as modifying, lim-
iting, or otherwise affecting the authority of 
the Federal Trade Commission under the 
Federal Trade Commission Act or any other 
law, other than the authority under an enu-
merated consumer law to prescribe rules, 
issue official guidelines, or conduct a study 
or issue a report mandated under such law. 
(ii) COMMISSION AUTHORITY RELATING 
TO RULES PRESCRIBED BY THE BUREAU.— 
Subject to subtitle B, the Federal Trade 
Commission shall have authority to enforce 
under the Federal Trade Commission Act 
(15 U.S.C. 41 et seq.) a rule prescribed by 
the Bureau under this title with respect to 
a covered person subject to the jurisdiction 
of the Federal Trade Commission under 
that Act, and a violation of such a rule by 
such a person shall be treated as a violation 
of a rule issued under section 18 of that Act 
(15 U.S.C. 57a) with respect to unfair or 
deceptive acts or practices. 
(D) COORDINATION.—To avoid duplication 
of or conflict between rules prescribed by the Bu-
1394 
† HR 4173 PP
reau under section 1031 of this title and the Fed-
eral 
Trade 
Commission 
under 
section 
18(a)(1)(B) of the Federal Trade Commission 
Act that apply to a covered person or service 
provider with respect to the offering or provision 
of consumer financial products or services, the 
agencies shall negotiate an agreement with re-
spect to rulemaking by each agency, including 
consultation with the other agency prior to pro-
posing a rule and during the comment period. 
(E) DEFERENCE.—No provision of this title 
shall be construed as altering, limiting, expand-
ing, or otherwise affecting the deference that a 
court affords to the— 
(i) Federal Trade Commission in mak-
ing determinations regarding the meaning 
or interpretation of any provision of the 
Federal Trade Commission Act, or of any 
other Federal law for which the Commission 
has authority to prescribe rules; or 
(ii) Bureau in making determinations 
regarding the meaning or interpretation of 
any provision of a Federal consumer finan-
cial law (other than any law described in 
clause (i)).
1395 
† HR 4173 PP
(6) NATIONAL
CREDIT
UNION
ADMINISTRA-
TION.— 
(A) TRANSFER
OF
FUNCTIONS.—All con-
sumer financial protection functions of the Na-
tional Credit Union Administration are trans-
ferred to the Bureau. 
(B) NATIONAL CREDIT UNION ADMINISTRA-
TION
AUTHORITY.—The Bureau shall have all 
powers and duties that were vested in the Na-
tional Credit Union Administration, relating to 
consumer financial protection functions, on the 
day before the designated transfer date. 
(7) DEPARTMENT OF HOUSING AND URBAN DE-
VELOPMENT.— 
(A) TRANSFER
OF
FUNCTIONS.—All con-
sumer protection functions of the Secretary of the 
Department of Housing and Urban Development 
relating to the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2601 et seq.) and the Se-
cure and Fair Enforcement for Mortgage Licens-
ing Act of 2008 (12 U.S.C. 5102 et seq.) are 
transferred to the Bureau. 
(B) AUTHORITY OF THE DEPARTMENT OF 
HOUSING AND URBAN DEVELOPMENT.—The Bu-
reau shall have all powers and duties that were
1396 
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vested in the Secretary of the Department of 
Housing and Urban Development relating to the 
Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2601 et seq.), and the Secure and 
Fair Enforcement for Mortgage Licensing Act of 
2008 (12 U.S.C. 5101 et seq.), on the day before 
the designated transfer date. 
(c) TRANSFERS OF FUNCTIONS SUBJECT TO EXAMINA-
TION AND ENFORCEMENT AUTHORITY REMAINING WITH 
TRANSFEROR AGENCIES.—The transfers of functions in 
subsection (b) do not affect the authority of the agencies 
identified in subsection (b) from conducting examinations 
or initiating and maintaining enforcement proceedings, in-
cluding performing appropriate supervisory and support 
functions relating thereto, in accordance with sections 1024, 
1025, and 1026. 
(d) EFFECTIVE DATE.—Subsections (b) and (c) shall 
become effective on the designated transfer date. 
SEC. 1062. DESIGNATED TRANSFER DATE. 
(a) IN GENERAL.—Not later than 60 days after the 
date of enactment of this Act, the Secretary shall— 
(1) in consultation with the Chairman of the 
Board of Governors, the Chairperson of the Corpora-
tion, the Chairman of the Federal Trade Commission, 
the Chairman of the National Credit Union Adminis-
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† HR 4173 PP
tration Board, the Comptroller of the Currency, the 
Director of the Office of Thrift Supervision, the Sec-
retary of the Department of Housing and Urban De-
velopment, and the Director of the Office of Manage-
ment and Budget, designate a single calendar date for 
the transfer of functions to the Bureau under section 
1061; and 
(2) publish notice of that designated date in the 
Federal Register. 
(b) CHANGING DESIGNATION.—The Secretary— 
(1) may, in consultation with the Chairman of 
the Board of Governors, the Chairperson of the Fed-
eral Deposit Insurance Corporation, the Chairman of 
the Federal Trade Commission, the Chairman of the 
National Credit Union Administration Board, the 
Comptroller of the Currency, the Director of the Office 
of Thrift Supervision, the Secretary of the Depart-
ment of Housing and Urban Development, and the 
Director of the Office of Management and Budget, 
change the date designated under subsection (a); and 
(2) shall publish notice of any changed des-
ignated date in the Federal Register. 
(c) PERMISSIBLE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), any date designated under this section
1398 
† HR 4173 PP
shall be not earlier than 180 days, nor later than 18 
months, after the date of enactment of this Act. 
(2) EXTENSION OF TIME.—The Secretary may 
designate a date that is later than 18 months after the 
date of enactment of this Act if the Secretary trans-
mits to appropriate committees of Congress— 
(A) a written determination that orderly 
implementation of this title is not feasible before 
the date that is 18 months after the date of en-
actment of this Act; 
(B) an explanation of why an extension is 
necessary for the orderly implementation of this 
title; and 
(C) a description of the steps that will be 
taken to effect an orderly and timely implemen-
tation of this title within the extended time pe-
riod. 
(3) EXTENSION LIMITED.—In no case may any 
date designated under this section be later than 24 
months after the date of enactment of this Act. 
SEC. 1063. SAVINGS PROVISIONS. 
(a) BOARD OF GOVERNORS.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Section 1061(b)(1) does not 
affect the validity of any right, duty, or obligation of
1399 
† HR 4173 PP
the United States, the Board of Governors (or any 
Federal reserve bank), or any other person that— 
(A) arises under any provision of law relat-
ing to any consumer financial protection func-
tion of the Board of Governors transferred to the 
Bureau by this title; and 
(B) existed on the day before the designated 
transfer date. 
(2) CONTINUATION OF SUITS.—No provision of 
this Act shall abate any proceeding commenced by or 
against the Board of Governors (or any Federal re-
serve bank) before the designated transfer date with 
respect to any consumer financial protection function 
of the Board of Governors (or any Federal reserve 
bank) transferred to the Bureau by this title, except 
that the Bureau, subject to sections 1024, 1025, and 
1026, shall be substituted for the Board of Governors 
(or Federal reserve bank) as a party to any such pro-
ceeding as of the designated transfer date. 
(b) FEDERAL DEPOSIT INSURANCE CORPORATION.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Section 1061(b)(4) does not 
affect the validity of any right, duty, or obligation of 
the United States, the Federal Deposit Insurance Cor-
1400 
† HR 4173 PP
poration, the Board of Directors of that Corporation, 
or any other person, that— 
(A) arises under any provision of law relat-
ing to any consumer financial protection func-
tion of the Federal Deposit Insurance Corpora-
tion transferred to the Bureau by this title; and 
(B) existed on the day before the designated 
transfer date. 
(2) CONTINUATION OF SUITS.—No provision of 
this Act shall abate any proceeding commenced by or 
against the Federal Deposit Insurance Corporation 
(or the Board of Directors of that Corporation) before 
the designated transfer date with respect to any con-
sumer financial protection function of the Federal De-
posit Insurance Corporation transferred to the Bu-
reau by this title, except that the Bureau, subject to 
sections 1024, 1025, and 1026, shall be substituted for 
the Federal Deposit Insurance Corporation (or Board 
of Directors) as a party to any such proceeding as of 
the designated transfer date. 
(c) 
FEDERAL
TRADE
COMMISSION.—Section 
1061(b)(5) does not affect the validity of any right, duty, 
or obligation of the United States, the Federal Trade Com-
mission, or any other person, that—
1401 
† HR 4173 PP
(1) arises under any provision of law relating to 
any consumer financial protection function of the 
Federal Trade Commission transferred to the Bureau 
by this title; and 
(2) existed on the day before the designated 
transfer date. 
(d) NATIONAL CREDIT UNION ADMINISTRATION.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Section 1061(b)(6) does not 
affect the validity of any right, duty, or obligation of 
the United States, the National Credit Union Admin-
istration, the National Credit Union Administration 
Board, or any other person, that— 
(A) arises under any provision of law relat-
ing to any consumer financial protection func-
tion of the National Credit Union Administra-
tion transferred to the Bureau by this title; and 
(B) existed on the day before the designated 
transfer date. 
(2) CONTINUATION OF SUITS.—No provision of 
this Act shall abate any proceeding commenced by or 
against the National Credit Union Administration 
(or the National Credit Union Administration Board) 
before the designated transfer date with respect to any 
consumer financial protection function of the Na-
1402 
† HR 4173 PP
tional Credit Union Administration transferred to the 
Bureau by this title, except that the Bureau, subject 
to sections 1024, 1025, and 1026, shall be substituted 
for the National Credit Union Administration (or 
National Credit Union Administration Board) as a 
party to any such proceeding as of the designated 
transfer date. 
(e) OFFICE
OF
THE COMPTROLLER
OF
THE CUR-
RENCY.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Section 1061(b)(2) does not 
affect the validity of any right, duty, or obligation of 
the United States, the Comptroller of the Currency, 
the Office of the Comptroller of the Currency, or any 
other person, that— 
(A) arises under any provision of law relat-
ing to any consumer financial protection func-
tion of the Comptroller of the Currency trans-
ferred to the Bureau by this title; and 
(B) existed on the day before the designated 
transfer date. 
(2) CONTINUATION OF SUITS.—No provision of 
this Act shall abate any proceeding commenced by or 
against the Comptroller of the Currency (or the Office 
of the Comptroller of the Currency) with respect to
1403 
† HR 4173 PP
any consumer financial protection function of the 
Comptroller of the Currency transferred to the Bureau 
by this title before the designated transfer date, except 
that the Bureau, subject to sections 1024, 1025, and 
1026, shall be substituted for the Comptroller of the 
Currency (or the Office of the Comptroller of the Cur-
rency) as a party to any such proceeding as of the 
designated transfer date. 
(f) OFFICE OF THRIFT SUPERVISION.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Section 1061(b)(3) does not 
affect the validity of any right, duty, or obligation of 
the United States, the Director of the Office of Thrift 
Supervision, the Office of Thrift Supervision, or any 
other person, that— 
(A) arises under any provision of law relat-
ing to any consumer financial protection func-
tion of the Director of the Office of Thrift Super-
vision transferred to the Bureau by this title; 
and 
(B) that existed on the day before the des-
ignated transfer date. 
(2) CONTINUATION OF SUITS.—No provision of 
this Act shall abate any proceeding commenced by or 
against the Director of the Office of Thrift Super-
1404 
† HR 4173 PP
vision (or the Office of Thrift Supervision) with re-
spect to any consumer financial protection function of 
the Director of the Office of Thrift Supervision trans-
ferred to the Bureau by this title before the designated 
transfer date, except that the Bureau, subject to sec-
tions 1024, 1025, and 1026, shall be substituted for 
the Director (or the Office of Thrift Supervision) as 
a party to any such proceeding as of the designated 
transfer date. 
(g) DEPARTMENT OF HOUSING AND URBAN DEVELOP-
MENT.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Section 1061(b)(7) shall not 
affect the validity of any right, duty, or obligation of 
the United States, the Secretary of the Department of 
Housing and Urban Development (or the Department 
of Housing and Urban Development), or any other 
person, that— 
(A) arises under any provision of law relat-
ing to any function of the Secretary of the De-
partment of Housing and Urban Development 
with respect to the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2601 et seq.) or the 
Secure and Fair Enforcement for Mortgage Li-
1405 
† HR 4173 PP
censing Act of 2008 (12 U.S.C. 5102 et seq.) 
transferred to the Bureau by this title; and 
(B) existed on the day before the designated 
transfer date. 
(2) CONTINUATION OF SUITS.—This title shall 
not abate any proceeding commenced by or against 
the Secretary of the Department of Housing and 
Urban Development (or the Department of Housing 
and Urban Development) with respect to any con-
sumer financial protection function of the Secretary 
of the Department of Housing and Urban Develop-
ment transferred to the Bureau by this title before the 
designated transfer date, except that the Bureau, sub-
ject to sections 1024, 1025, and 1026, shall be sub-
stituted for the Secretary of the Department of Hous-
ing and Urban Development (or the Department of 
Housing and Urban Development) as a party to any 
such proceeding as of the designated transfer date. 
(h) CONTINUATION OF EXISTING ORDERS, RULES, DE-
TERMINATIONS, AGREEMENTS, AND RESOLUTIONS.—All or-
ders, resolutions, determinations, agreements, and rules that 
have been issued, made, prescribed, or allowed to become 
effective by any transferor agency or by a court of com-
petent jurisdiction, in the performance of consumer finan-
cial protection functions that are transferred by this title
1406 
† HR 4173 PP
and that are in effect on the day before the designated trans-
fer date, shall continue in effect according to the terms of 
those orders, resolutions, determinations, agreements, and 
rules, and shall not be enforceable by or against the Bureau. 
(i) IDENTIFICATION OF RULES CONTINUED.—Not later 
than the designated transfer date, the Bureau— 
(1) shall, after consultation with the head of each 
transferor agency, identify the rules continued under 
subsection (h) that will be enforced by the Bureau; 
and 
(2) shall publish a list of such rules in the Fed-
eral Register. 
(j) STATUS OF RULES PROPOSED OR NOT YET EFFEC-
TIVE.— 
(1) PROPOSED RULES.—Any proposed rule of a 
transferor agency which that agency, in performing 
consumer financial protection functions transferred 
by this title, has proposed before the designated trans-
fer date, but has not been published as a final rule 
before that date, shall be deemed to be a proposed rule 
of the Bureau. 
(2) RULES NOT YET EFFECTIVE.—Any interim 
or final rule of a transferor agency which that agen-
cy, in performing consumer financial protection func-
tions transferred by this title, has published before the
1407 
† HR 4173 PP
designated transfer date, but which has not become ef-
fective before that date, shall become effective as a rule 
of the Bureau according to its terms. 
SEC. 1064. TRANSFER OF CERTAIN PERSONNEL. 
(a) IN GENERAL.— 
(1) CERTAIN
FEDERAL
RESERVE
SYSTEM
EM-
PLOYEES TRANSFERRED.— 
(A) IDENTIFYING EMPLOYEES FOR TRANS-
FER.—The Bureau and the Board of Governors 
shall— 
(i) jointly determine the number of em-
ployees of the Board of Governors necessary 
to perform or support the consumer finan-
cial protection functions of the Board of 
Governors that are transferred to the Bu-
reau by this title; and 
(ii) consistent with the number deter-
mined under clause (i), jointly identify em-
ployees of the Board of Governors for trans-
fer to the Bureau, in a manner that the Bu-
reau and the Board of Governors, in their 
sole discretion, determine equitable. 
(B) 
IDENTIFIED
EMPLOYEES
TRANS-
FERRED.—All employees of the Board of Gov-
ernors identified under subparagraph (A)(ii)
1408 
† HR 4173 PP
shall be transferred to the Bureau for employ-
ment. 
(C) FEDERAL
RESERVE
BANK
EMPLOY-
EES.—Employees of any Federal reserve bank 
who, on the day before the designated transfer 
date, are performing consumer financial protec-
tion functions on behalf of the Board of Gov-
ernors shall be treated as employees of the Board 
of Governors for purposes of subparagraphs (A) 
and (B). 
(2) CERTAIN FDIC EMPLOYEES TRANSFERRED.— 
(A) IDENTIFYING EMPLOYEES FOR TRANS-
FER.—The Bureau and the Board of Directors of 
the Federal Deposit Insurance Corporation 
shall— 
(i) jointly determine the number of em-
ployees of that Corporation necessary to 
perform or support the consumer financial 
protection functions of the Corporation that 
are transferred to the Bureau by this title; 
and 
(ii) consistent with the number deter-
mined under clause (i), jointly identify em-
ployees of the Corporation for transfer to the 
Bureau, in a manner that the Bureau and
1409 
† HR 4173 PP
the Board of Directors of the Corporation, 
in their sole discretion, determine equitable. 
(B) 
IDENTIFIED
EMPLOYEES
TRANS-
FERRED.—All employees of the Corporation 
identified under subparagraph (A)(ii) shall be 
transferred to the Bureau for employment. 
(3) CERTAIN NCUA EMPLOYEES TRANSFERRED.— 
(A) IDENTIFYING EMPLOYEES FOR TRANS-
FER.—The Bureau and the National Credit 
Union Administration Board shall— 
(i) jointly determine the number of em-
ployees of the National Credit Union Ad-
ministration necessary to perform or sup-
port the consumer financial protection func-
tions of the National Credit Union Admin-
istration that are transferred to the Bureau 
by this title; and 
(ii) consistent with the number deter-
mined under clause (i), jointly identify em-
ployees of the National Credit Union Ad-
ministration for transfer to the Bureau, in 
a manner that the Bureau and the National 
Credit Union Administration Board, in 
their sole discretion, determine equitable.
1410 
† HR 4173 PP
(B) 
IDENTIFIED
EMPLOYEES
TRANS-
FERRED.—All employees of the National Credit 
Union Administration identified under subpara-
graph (A)(ii) shall be transferred to the Bureau 
for employment. 
(4) CERTAIN OFFICE OF THE COMPTROLLER OF 
THE CURRENCY EMPLOYEES TRANSFERRED.— 
(A) IDENTIFYING EMPLOYEES FOR TRANS-
FER.—The Bureau and the Comptroller of the 
Currency shall— 
(i) jointly determine the number of em-
ployees of the Office of the Comptroller of 
the Currency necessary to perform or sup-
port the consumer financial protection func-
tions of the Office of the Comptroller of the 
Currency that are transferred to the Bureau 
by this title; and 
(ii) consistent with the number deter-
mined under clause (i), jointly identify em-
ployees of the Office of the Comptroller of 
the Currency for transfer to the Bureau, in 
a manner that the Bureau and the Office of 
the Comptroller of the Currency, in their 
sole discretion, determine equitable.
1411 
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(B) 
IDENTIFIED
EMPLOYEES
TRANS-
FERRED.—All employees of the Office of the 
Comptroller of the Currency identified under 
subparagraph (A)(ii) shall be transferred to the 
Bureau for employment. 
(5) CERTAIN OFFICE OF THRIFT SUPERVISION 
EMPLOYEES TRANSFERRED.— 
(A) IDENTIFYING EMPLOYEES FOR TRANS-
FER.—The Bureau and the Director of the Office 
of Thrift Supervision shall— 
(i) jointly determine the number of em-
ployees of the Office of Thrift Supervision 
necessary to perform or support the con-
sumer financial protection functions of the 
Office of Thrift Supervision that are trans-
ferred to the Bureau by this title; and 
(ii) consistent with the number deter-
mined under clause (i), jointly identify em-
ployees of the Office of Thrift Supervision 
for transfer to the Bureau, in a manner 
that the Bureau and the Office of Thrift Su-
pervision, in their sole discretion, determine 
equitable. 
(B) 
IDENTIFIED
EMPLOYEES
TRANS-
FERRED.—All employees of the Office of Thrift
1412 
† HR 4173 PP
Supervision 
identified 
under 
subparagraph 
(A)(ii) shall be transferred to the Bureau for em-
ployment. 
(6) CERTAIN EMPLOYEES OF DEPARTMENT OF 
HOUSING
AND
URBAN
DEVELOPMENT
TRANS-
FERRED.— 
(A) IDENTIFYING EMPLOYEES FOR TRANS-
FER.—The Bureau and the Secretary of the De-
partment of Housing and Urban Development 
shall— 
(i) jointly determine the number of em-
ployees of the Department of Housing and 
Urban Development necessary to perform or 
support the consumer protection functions 
of the Department that are transferred to 
the Bureau by this title; and 
(ii) consistent with the number deter-
mined under clause (i), jointly identify em-
ployees of the Department of Housing and 
Urban Development for transfer to the Bu-
reau in a manner that the Bureau and the 
Secretary of the Department of Housing 
and Urban Development, in their sole dis-
cretion, deem equitable.
1413 
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(B) 
IDENTIFIED
EMPLOYEES
TRANS-
FERRED.—All employees of the Department of 
Housing and Urban Development identified 
under subparagraph (A)(ii) shall be transferred 
to the Bureau for employment. 
(7) APPOINTMENT
AUTHORITY
FOR
EXCEPTED 
SERVICE
AND
SENIOR
EXECUTIVE
SERVICE
TRANS-
FERRED.— 
(A) IN GENERAL.—In the case of an em-
ployee occupying a position in the excepted serv-
ice or the Senior Executive Service, any appoint-
ment authority established pursuant to law or 
regulations of the Office of Personnel Manage-
ment for filling such positions shall be trans-
ferred, subject to subparagraph (B). 
(B) DECLINING TRANSFERS ALLOWED.—An 
agency or entity may decline to make a transfer 
of authority under subparagraph (A) (and the 
employees appointed pursuant thereto) to the ex-
tent that such authority relates to positions ex-
cepted from the competitive service because of 
their confidential, policy-making, policy-deter-
mining, or policy-advocating character, and 
non-career positions in the Senior Executive
1414 
† HR 4173 PP
Service 
(within 
the 
meaning 
of 
section 
3132(a)(7) of title 5, United States Code). 
(b) TIMING OF TRANSFERS AND POSITION ASSIGN-
MENTS.—Each employee to be transferred under this section 
shall— 
(1) be transferred not later than 90 days after 
the designated transfer date; and 
(2) receive notice of a position assignment not 
later than 120 days after the effective date of his or 
her transfer. 
(c) TRANSFER OF FUNCTION.— 
(1) IN
GENERAL.—Notwithstanding any other 
provision of law, the transfer of employees shall be 
deemed a transfer of functions for the purpose of sec-
tion 3503 of title 5, United States Code. 
(2) PRIORITY OF THIS TITLE.—If any provisions 
of this title conflict with any protection provided to 
transferred employees under section 3503 of title 5, 
United States Code, the provisions of this title shall 
control. 
(d) EQUAL STATUS AND TENURE POSITIONS.— 
(1) EMPLOYEES TRANSFERRED FROM FDIC, HUD, 
NCUA, OCC, AND
OTS.—Each employee transferred 
from the Federal Deposit Insurance Corporation, the 
National Credit Union Administration, the Office of
1415 
† HR 4173 PP
the Comptroller of the Currency, the Office of Thrift 
Supervision, or the Department of Housing and 
Urban Development shall be placed in a position at 
the Bureau with the same status and tenure as that 
employee held on the day before the designated trans-
fer date. 
(2) EMPLOYEES TRANSFERRED FROM THE FED-
ERAL RESERVE SYSTEM.— 
(A) 
COMPARABILITY.—Each 
employee 
transferred from the Board of Governors or from 
a Federal reserve bank shall be placed in a posi-
tion with the same status and tenure as that of 
an employee transferring to the Bureau from the 
Office of the Comptroller of the Currency who 
perform similar functions and have similar peri-
ods of service. 
(B) SERVICE
PERIODS
CREDITED.—For 
purposes of this paragraph, periods of service 
with the Board of Governors or a Federal reserve 
bank shall be credited as periods of service with 
a Federal agency. 
(e) ADDITIONAL CERTIFICATION REQUIREMENTS LIM-
ITED.—Examiners transferred to the Bureau are not subject 
to any additional certification requirements before being 
placed in a comparable examiner position at the Bureau
1416 
† HR 4173 PP
examining the same types of institutions as they examined 
before they were transferred. 
(f) PERSONNEL ACTIONS LIMITED.— 
(1) 2-YEAR PROTECTION.—Except as provided in 
paragraph (2), each transferred employee holding a 
permanent position on the day before the designated 
transfer date may not, during the 2-year period be-
ginning on the designated transfer date, be involun-
tarily separated, or involuntarily reassigned outside 
his or her locality pay area, as defined by the Office 
of Personnel Management. 
(2) EXCEPTIONS.—Paragraph (1) does not limit 
the right of the Bureau— 
(A) to separate an employee for cause or for 
unacceptable performance; 
(B) to terminate an appointment to a posi-
tion excepted from the competitive service be-
cause of its confidential policy-making, policy- 
determining, or policy-advocating character; or 
(C) to reassign a supervisory employee out-
side his or her locality pay area, as defined by 
the Office of Personnel Management, when the 
Bureau determines that the reassignment is nec-
essary for the efficient operation of the Bureau. 
(g) PAY.—
1417 
† HR 4173 PP
(1) 2-YEAR PROTECTION.—Except as provided in 
paragraph (2), each transferred employee shall, dur-
ing the 2-year period beginning on the designated 
transfer date, receive pay at a rate equal to not less 
than the basic rate of pay (including any geographic 
differential) that the employee received during the 
pay period immediately preceding the date of trans-
fer. 
(2) EXCEPTIONS.—Paragraph (1) does not limit 
the right of the Bureau to reduce the rate of basic pay 
of a transferred employee— 
(A) for cause; 
(B) for unacceptable performance; or 
(C) with the consent of the employee. 
(3) PROTECTION
ONLY
WHILE
EMPLOYED.— 
Paragraph (1) applies to a transferred employee only 
while that employee remains employed by the Bureau. 
(4) PAY INCREASES PERMITTED.—Paragraph (1) 
does not limit the authority of the Bureau to increase 
the pay of a transferred employee. 
(h) REORGANIZATION.— 
(1) BETWEEN 1ST AND 3RD YEAR.— 
(A) IN
GENERAL.—If the Bureau deter-
mines, during the 2-year period beginning 1 
year after the designated transfer date, that a re-
1418 
† HR 4173 PP
organization of the staff of the Bureau is re-
quired— 
(i) that reorganization shall be deemed 
a ‘‘major reorganization’’ for purposes of af-
fording affected employees retirement under 
section 8336(d)(2) or 8414(b)(1)(B) of title 
5, United States Code; 
(ii) before the reorganization occurs, 
all employees in the same locality pay area 
as defined by the Office of Personnel Man-
agement shall be placed in a uniform posi-
tion classification system; and 
(iii) any resulting reduction in force 
shall be governed by the provisions of chap-
ter 35 of title 5, United States Code, except 
that the Bureau shall— 
(I) establish competitive areas (as 
that term is defined in regulations 
issued by the Office of Personnel Man-
agement) to include at a minimum all 
employees in the same locality pay 
area as defined by the Office of Per-
sonnel Management; 
(II) establish competitive levels 
(as that term is defined in regulations
1419 
† HR 4173 PP
issued by the Office of Personnel Man-
agement) without regard to whether the 
particular employees have been ap-
pointed to positions in the competitive 
service or the excepted service; and 
(III) afford employees appointed 
to positions in the excepted service 
(other than to a position excepted from 
the competitive service because of its 
confidential policy-making, policy-de-
termining, or policy-advocating char-
acter) the same assignment rights to 
positions within the Bureau as em-
ployees appointed to positions in the 
competitive service. 
(B) SERVICE CREDIT FOR REDUCTIONS IN 
FORCE.—For purposes of this paragraph, periods 
of service with a Federal home loan bank, a joint 
office of the Federal home loan banks, the Board 
of Governors, a Federal reserve bank, the Federal 
Deposit Insurance Corporation, or the National 
Credit Union Administration shall be credited as 
periods of service with a Federal agency. 
(2) AFTER 3RD YEAR.—
1420 
† HR 4173 PP
(A) IN
GENERAL.—If the Bureau deter-
mines, at any time after the 3-year period begin-
ning on the designated transfer date, that a reor-
ganization of the staff of the Bureau is required, 
any resulting reduction in force shall be governed 
by the provisions of chapter 35 of title 5, United 
States Code, except that the Bureau shall estab-
lish competitive levels (as that term is defined in 
regulations issued by the Office of Personnel 
Management) without regard to types of ap-
pointment held by particular employees trans-
ferred under this section. 
(B) SERVICE CREDIT FOR REDUCTIONS IN 
FORCE.—For purposes of this paragraph, periods 
of service with a Federal home loan bank, a joint 
office of the Federal home loan banks, the Board 
of Governors, a Federal reserve bank, the Federal 
Deposit Insurance Corporation, or the National 
Credit Union Administration shall be credited as 
periods of service with a Federal agency. 
(i) BENEFITS.— 
(1) RETIREMENT BENEFITS FOR TRANSFERRED 
EMPLOYEES.— 
(A) IN GENERAL.—
1421 
† HR 4173 PP
(i) CONTINUATION
OF
EXISTING
RE-
TIREMENT
PLAN.—Except as provided in 
subparagraph (B), each transferred em-
ployee shall remain enrolled in his or her 
existing retirement plan, through any pe-
riod of continuous employment with the Bu-
reau. 
(ii) EMPLOYER
CONTRIBUTION.—The 
Bureau shall pay any employer contribu-
tions to the existing retirement plan of each 
transferred employee, as required under that 
plan. 
(B) OPTION FOR EMPLOYEES TRANSFERRED 
FROM FEDERAL RESERVE SYSTEM TO BE SUB-
JECT TO FEDERAL EMPLOYEE RETIREMENT PRO-
GRAM.— 
(i) ELECTION.—Any transferred em-
ployee who was enrolled in a Federal Re-
serve System retirement plan on the day be-
fore his or her transfer to the Bureau may, 
during the 1-year period beginning 6 
months after the designated transfer date, 
elect to be subject to the Federal employee 
retirement program.
1422 
† HR 4173 PP
(ii) EFFECTIVE DATE OF COVERAGE.— 
For any employee making an election under 
clause (i), coverage by the Federal employee 
retirement program shall begin 1 year after 
the designated transfer date. 
(C) BUREAU
PARTICIPATION
IN
FEDERAL 
RESERVE SYSTEM RETIREMENT PLAN.— 
(i) SEPARATE
ACCOUNT
IN
FEDERAL 
RESERVE
SYSTEM
RETIREMENT
PLAN
ES-
TABLISHED.—Notwithstanding any other 
provision of law, and subject to the terms 
and conditions of this section, a separate 
account in the Federal Reserve System re-
tirement plan shall be established for Bu-
reau employees who do not make the elec-
tion under subparagraph (B). 
(ii) FUNDS ATTRIBUTABLE TO TRANS-
FERRED
EMPLOYEES
REMAINING
IN
FED-
ERAL RESERVE SYSTEM RETIREMENT PLAN 
TRANSFERRED.—The proportionate share of 
funds in the Federal Reserve System retire-
ment plan, including the proportionate 
share of any funding surplus in that plan, 
attributable to a transferred employee who 
does not make the election under subpara-
1423 
† HR 4173 PP
graph (B), shall be transferred to the ac-
count established under clause (i). 
(iii) EMPLOYER
CONTRIBUTIONS
DE-
POSITED.—The Bureau shall deposit into 
the account established under clause (i) the 
employer contributions that the Bureau 
makes on behalf of employees who do not 
make the election under subparagraph (B). 
(iv) ACCOUNT
ADMINISTRATION.—The 
Bureau shall administer the account estab-
lished under clause (i) as a participating 
employer in the Federal Reserve System re-
tirement plan. 
(D) DEFINITIONS.—For purposes of this 
paragraph— 
(i) the term ‘‘existing retirement plan’’ 
means, with respect to any employee trans-
ferred under this section, the particular re-
tirement plan (including the Financial In-
stitutions Retirement Fund) and any asso-
ciated thrift savings plan of the agency or 
Federal reserve bank from which the em-
ployee was transferred, in which the em-
ployee was enrolled on the day before the 
designated transfer date; and
1424 
† HR 4173 PP
(ii) the term ‘‘Federal employee retire-
ment program’’ means the retirement pro-
gram for Federal employees established by 
chapter 84 of title 5, United States Code. 
(2) BENEFITS OTHER THAN RETIREMENT BENE-
FITS FOR TRANSFERRED EMPLOYEES.— 
(A) DURING 1ST YEAR.— 
(i) EXISTING PLANS CONTINUE.—Each 
transferred employee may, for 1 year after 
the designated transfer date, retain member-
ship in any other employee benefit program 
of the agency or bank from which the em-
ployee transferred, including a dental, vi-
sion, long term care, or life insurance pro-
gram, to which the employee belonged on the 
day before the designated transfer date. 
(ii) EMPLOYER
CONTRIBUTION.—The 
Bureau shall reimburse the agency or bank 
from which an employee was transferred for 
any cost incurred by that agency or bank in 
continuing to extend coverage in the benefit 
program to the employee, as required under 
that program or negotiated agreements. 
(B) DENTAL, VISION, OR LIFE INSURANCE 
AFTER 1ST YEAR.—If, after the 1-year period be-
1425 
† HR 4173 PP
ginning on the designated transfer date, the Bu-
reau decides not to continue participation in 
any dental, vision, or life insurance program of 
an agency or bank from which an employee 
transferred, a transferred employee who is a 
member of such a program may, before the deci-
sion of the Bureau takes effect, elect to enroll, 
without regard to any regularly scheduled open 
season, in— 
(i) the enhanced dental benefits estab-
lished by chapter 89A of title 5, United 
States Code; 
(ii) the enhanced vision benefits estab-
lished by chapter 89B of title 5, United 
States Code; or 
(iii) the Federal Employees Group Life 
Insurance Program established by chapter 
87 of title 5, United States Code, without 
regard to any requirement of insurability. 
(C) LONG TERM CARE INSURANCE AFTER 
1ST YEAR.—If, after the 1-year period beginning 
on the designated transfer date, the Bureau de-
cides not to continue participation in any long 
term care insurance program of an agency or 
bank from which an employee transferred, a
1426 
† HR 4173 PP
transferred employee who is a member of such a 
program may, before the decision of the Bureau 
takes effect, elect to apply for coverage under the 
Federal Long Term Care Insurance Program es-
tablished by chapter 90 of title 5, United States 
Code, under the underwriting requirements ap-
plicable to a new active workforce member (as 
defined in part 875, title 5, Code of Federal Reg-
ulations). 
(D) EMPLOYEE
CONTRIBUTION.—An indi-
vidual enrolled in the Federal Employees Health 
Benefits program shall pay any employee con-
tribution required by the plan. 
(E) ADDITIONAL
FUNDING.—The Bureau 
shall transfer to the Federal Employees Health 
Benefits Fund established under section 8909 of 
title 5, United States Code, an amount deter-
mined by the Director of the Office of Personnel 
Management, after consultation with the Bureau 
and the Office of Management and Budget, to be 
necessary to reimburse the Fund for the cost to 
the Fund of providing benefits under this para-
graph. 
(F) CREDIT FOR TIME ENROLLED IN OTHER 
PLANS.—For employees transferred under this
1427 
† HR 4173 PP
title, enrollment in a health benefits plan admin-
istered by a transferor agency or a Federal re-
serve bank, as the case may be, immediately be-
fore enrollment in a health benefits plan under 
chapter 89 of title 5, United States Code, shall 
be considered as enrollment in a health benefits 
plan under that chapter for purposes of section 
8905(b)(1)(A) of title 5, United States Code. 
(G) SPECIAL PROVISIONS TO ENSURE CON-
TINUATION OF LIFE INSURANCE BENEFITS.— 
(i) IN
GENERAL.—An annuitant (as 
defined in section 8901(3) of title 5, United 
States Code) who is enrolled in a life insur-
ance plan administered by a transferor 
agency on the day before the designated 
transfer date shall be eligible for coverage by 
a life insurance plan under sections 
8706(b), 8714a, 8714b, and 8714c of title 5, 
United States Code, or in a life insurance 
plan established by the Bureau, without re-
gard to any regularly scheduled open season 
and requirement of insurability. 
(ii) EMPLOYEE
CONTRIBUTION.—An 
individual enrolled in a life insurance plan
1428 
† HR 4173 PP
under this subparagraph shall pay any em-
ployee contribution required by the plan. 
(iii) ADDITIONAL FUNDING.—The Bu-
reau shall transfer to the Employees’ Life 
Insurance Fund established under section 
8714 of title 5, United States Code, an 
amount determined by the Director of the 
Office of Personnel Management, after con-
sultation with the Bureau and the Office of 
Management and Budget, to be necessary to 
reimburse the Fund for the cost to the Fund 
of providing benefits under this subpara-
graph not otherwise paid for by the em-
ployee under clause (ii). 
(iv) CREDIT FOR TIME ENROLLED IN 
OTHER PLANS.—For employees transferred 
under this title, enrollment in a life insur-
ance plan administered by a transferor 
agency immediately before enrollment in a 
life insurance plan under chapter 87 of title 
5, United States Code, shall be considered 
as enrollment in a life insurance plan 
under that chapter for purposes of section 
8706(b)(1)(A) of title 5, United States Code.
1429 
† HR 4173 PP
(3) OPM RULES.—The Office of Personnel Man-
agement shall issue such rules as are necessary to 
carry out this subsection. 
(j) IMPLEMENTATION OF UNIFORM PAY AND CLASSI-
FICATION SYSTEM.—Not later than 2 years after the des-
ignated transfer date, the Bureau shall implement a uni-
form pay and classification system for all employees trans-
ferred under this title. 
(k) EQUITABLE TREATMENT.—In administering the 
provisions of this section, the Bureau— 
(1) shall take no action that would unfairly dis-
advantage transferred employees relative to each other 
based on their prior employment by the Board of 
Governors, the Federal Deposit Insurance Corpora-
tion, the Federal Trade Commission, the National 
Credit Union Administration, the Office of the Comp-
troller of the Currency, the Office of Thrift Super-
vision, a Federal reserve bank, a Federal home loan 
bank, or a joint office of the Federal home loan banks; 
and 
(2) may take such action as is appropriate in 
individual cases so that employees transferred under 
this section receive equitable treatment, with respect 
to the status, tenure, pay, benefits (other than benefits 
under programs administered by the Office of Per-
1430 
† HR 4173 PP
sonnel Management), and accrued leave or vacation 
time of those employees, for prior periods of service 
with any Federal agency, including the Board of Gov-
ernors, the Corporation, the Federal Trade Commis-
sion, the National Credit Union Administration, the 
Office of the Comptroller of the Currency, the Office 
of Thrift Supervision, a Federal reserve bank, a Fed-
eral home loan bank, or a joint office of the Federal 
home loan banks. 
(l) IMPLEMENTATION.—In implementing the provi-
sions of this section, the Bureau shall coordinate with the 
Office of Personnel Management and other entities having 
expertise in matters related to employment to ensure a fair 
and orderly transition for affected employees. 
SEC. 1065. INCIDENTAL TRANSFERS. 
(a) INCIDENTAL TRANSFERS AUTHORIZED.—The Di-
rector of the Office of Management and Budget, in consulta-
tion with the Secretary, shall make such additional inci-
dental transfers and dispositions of assets and liabilities 
held, used, arising from, available, or to be made available, 
in connection with the functions transferred by this title, 
as the Director may determine necessary to accomplish the 
purposes of this title.
1431 
† HR 4173 PP
(b) SUNSET.—The authority provided in this section 
shall terminate 5 years after the date of enactment of this 
Act. 
SEC. 1066. INTERIM AUTHORITY OF THE SECRETARY. 
(a) IN GENERAL.—The Secretary is authorized to per-
form the functions of the Bureau under this subtitle until 
the Director of the Bureau is confirmed by the Senate in 
accordance with section 1011. 
(b) INTERIM ADMINISTRATIVE SERVICES BY THE DE-
PARTMENT OF THE TREASURY.—The Department of the 
Treasury may provide administrative services necessary to 
support the Bureau before the designated transfer date. 
SEC. 1067. TRANSITION OVERSIGHT. 
(a) PURPOSE.—The purpose of this section is to ensure 
that the Bureau— 
(1) has an orderly and organized startup; 
(2) attracts and retains a qualified workforce; 
and 
(3) establishes comprehensive employee training 
and benefits programs. 
(b) REPORTING REQUIREMENT.— 
(1) IN GENERAL.—The Bureau shall submit an 
annual report to the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Rep-
1432 
† HR 4173 PP
resentatives that includes the plans described in para-
graph (2). 
(2) PLANS.—The plans described in this para-
graph are as follows: 
(A) TRAINING AND WORKFORCE DEVELOP-
MENT PLAN.—The Bureau shall submit a train-
ing and workforce development plan that in-
cludes, to the extent practicable— 
(i) identification of skill and technical 
expertise needs and actions taken to meet 
those requirements; 
(ii) steps taken to foster innovation 
and creativity; 
(iii) leadership development and suc-
cession planning; and 
(iv) effective use of technology by em-
ployees. 
(B) WORKPLACE FLEXIBILITIES PLAN.—The 
Bureau shall submit a workforce flexibility plan 
that includes, to the extent practicable— 
(i) telework; 
(ii) flexible work schedules; 
(iii) phased retirement; 
(iv) reemployed annuitants; 
(v) part-time work;
1433 
† HR 4173 PP
(vi) job sharing; 
(vii) 
parental 
leave 
benefits 
and 
childcare assistance; 
(viii) domestic partner benefits; 
(ix) other workplace flexibilities; or 
(x) any combination of the items de-
scribed in clauses (i) through (ix). 
(C) RECRUITMENT AND RETENTION PLAN.— 
The Bureau shall submit a recruitment and re-
tention plan that includes, to the extent prac-
ticable, provisions relating to— 
(i) the steps necessary to target highly 
qualified applicant pools with diverse back-
grounds; 
(ii) streamlined employment applica-
tion processes; 
(iii) the provision of timely notifica-
tion of the status of employment applica-
tions to applicants; and 
(iv) the collection of information to 
measure indicators of hiring effectiveness. 
(c) EXPIRATION.—The reporting requirement under 
subsection (b) shall terminate 5 years after the date of en-
actment of this Act.
1434 
† HR 4173 PP
(d) RULE OF CONSTRUCTION.—Nothing in this section 
may be construed to affect— 
(1) a collective bargaining agreement, as that 
term is defined in section 7103(a)(8) of title 5, United 
States Code, that is in effect on the date of enactment 
of this Act; or 
(2) the rights of employees under chapter 71 of 
title 5, United States Code. 
Subtitle G—Regulatory 
Improvements 
SEC. 1071. SMALL BUSINESS DATA COLLECTION. 
(a) IN GENERAL.—The Equal Credit Opportunity Act 
(15 U.S.C. 1691 et seq.) is amended by inserting after sec-
tion 704A the following: 
‘‘SEC. 740B. SMALL BUSINESS LOAN DATA COLLECTION. 
‘‘(a) PURPOSE.—The purpose of this section is to fa-
cilitate enforcement of fair lending laws and enable commu-
nities, governmental entities, and creditors to identify busi-
ness and community development needs and opportunities 
of women-owned and minority-owned small businesses. 
‘‘(b) INFORMATION GATHERING.—Subject to the re-
quirements of this section, in the case of any application 
to a financial institution for credit for a small business, 
the financial institution shall—
1435 
† HR 4173 PP
‘‘(1) inquire whether the small business is a 
women- or minority-owned small business, without 
regard to whether such application is received in per-
son, by mail, by telephone, by electronic mail or other 
form of electronic transmission, or by any other 
means, and whether or not such application is in re-
sponse to a solicitation by the financial institution; 
and 
‘‘(2) maintain a record of the responses to such 
inquiry, separate from the application and accom-
panying information. 
‘‘(c) RIGHT TO REFUSE.—Any applicant for credit 
may refuse to provide any information requested pursuant 
to subsection (b) in connection with any application for 
credit. 
‘‘(d) NO ACCESS BY UNDERWRITERS.— 
‘‘(1) LIMITATION.—Where feasible, no loan un-
derwriter or other officer or employee of a financial 
institution, or any affiliate of a financial institution, 
involved in making any determination concerning an 
application for credit shall have access to any infor-
mation provided by the applicant pursuant to a re-
quest under subsection (b) in connection with such 
application.
1437 
† HR 4173 PP
‘‘(C) the amount of the credit or credit limit 
applied for, and the amount of the credit trans-
action or the credit limit approved for such ap-
plicant; 
‘‘(D) the type of action taken with respect 
to such application, and the date of such action; 
‘‘(E) the census tract in which is located the 
principal place of business of the small business 
loan applicant; 
‘‘(F) the gross annual revenue of the busi-
ness in the last fiscal year of the small business 
loan applicant preceding the date of the applica-
tion; 
‘‘(G) the race and ethnicity of the principal 
owners of the business; and 
‘‘(H) any additional data that the Bureau 
determines would aid in fulfilling the purposes of 
this section. 
‘‘(3) NO PERSONALLY IDENTIFIABLE INFORMA-
TION.—In compiling and maintaining any record of 
information under this section, a financial institution 
may not include in such record the name, specific ad-
dress (other than the census tract required under 
paragraph (1)(E)), telephone number, electronic mail 
address, or any other personally identifiable informa-
1438 
† HR 4173 PP
tion concerning any individual who is, or is con-
nected with, the small business loan applicant. 
‘‘(4) DISCRETION TO DELETE OR MODIFY PUB-
LICLY AVAILABLE DATA.—The Bureau may, at its dis-
cretion, delete or modify data collected under this sec-
tion which is or will be available to the public, if the 
Bureau determines that the deletion or modification 
of the data would advance a compelling privacy in-
terest. 
‘‘(f) AVAILABILITY OF INFORMATION.— 
‘‘(1) SUBMISSION
TO
BUREAU.—The data re-
quired to be compiled and maintained under this sec-
tion by any financial institution shall be submitted 
annually to the Bureau. 
‘‘(2) AVAILABILITY OF INFORMATION.—Informa-
tion compiled and maintained under this section 
shall be— 
‘‘(A) retained for not less than 3 years after 
the date of preparation; 
‘‘(B) made available to any member of the 
public, upon request, in the form required under 
regulations prescribed by the Bureau; 
‘‘(C) annually made available to the public 
generally by the Bureau, in such form and in
1439 
† HR 4173 PP
such manner as is determined appropriate by 
the Bureau. 
‘‘(3) COMPILATION OF AGGREGATE DATA.—The 
Bureau may, at its discretion— 
‘‘(A) compile and aggregate data collected 
under this section for its own use; and 
‘‘(B) make public such compilations of ag-
gregate data. 
‘‘(g) BUREAU ACTION.— 
‘‘(1) IN GENERAL.—The Bureau shall prescribe 
such rules and issue such guidance as may be nec-
essary to carry out, enforce, and compile data pursu-
ant to this section. 
‘‘(2) EXCEPTIONS.—The Bureau, by rule or 
order, may adopt exceptions to any requirement of 
this section and may, conditionally or uncondition-
ally, exempt any financial institution or class of fi-
nancial institutions from the requirements of this sec-
tion, as the Bureau deems necessary or appropriate 
to carry out the purposes of this section. 
‘‘(3) GUIDANCE.—The Bureau shall issue guid-
ance designed to facilitate compliance with the re-
quirements of this section, including assisting finan-
cial institutions in working with applicants to deter-
1440 
† HR 4173 PP
mine whether the applicants are women- or minority- 
owned for purposes of this section. 
‘‘(h) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) FINANCIAL INSTITUTION.—The term ‘finan-
cial institution’ means any partnership, company, 
corporation, association (incorporated or unincor-
porated), trust, estate, cooperative organization, or 
other entity that engages in any financial activity. 
‘‘(2) MINORITY.—The term ‘minority’ has the 
same meaning as in section 1204(c)(3) of the Finan-
cial Institutions Reform, Recovery, and Enforcement 
Act of 1989. 
‘‘(3) MINORITY-OWNED
SMALL
BUSINESS.—The 
term ‘minority-owned small business’ means a small 
business— 
‘‘(A) more than 50 percent of the ownership 
or control of which is held by 1 or more minority 
individuals; and 
‘‘(B) more than 50 percent of the net profit 
or loss of which accrues to 1 or more minority 
individuals. 
‘‘(4) SMALL BUSINESS LOAN.—The term ‘small 
business loan’ shall be defined by the Bureau, which 
may take into account—
1441 
† HR 4173 PP
‘‘(A) the gross revenues of the borrower; 
‘‘(B) the total number of employees of the 
borrower; 
‘‘(C) the industry in which the borrower has 
its primary operations; and 
‘‘(D) the size of the loan. 
‘‘(5) WOMEN-OWNED
SMALL
BUSINESS.—The 
term ‘women-owned small business’ means a busi-
ness— 
‘‘(A) more than 50 percent of the ownership 
or control of which is held by 1 or more women; 
and 
‘‘(B) more than 50 percent of the net profit 
or loss of which accrues to 1 or more women.’’. 
(b) TECHNICAL
AND CONFORMING AMENDMENTS.— 
Section 701(b) of the Equal Credit Opportunity Act (15 
U.S.C. 1691(b)) is amended— 
(1) in paragraph (3), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (4), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (4), the fol-
lowing: 
‘‘(5) to make an inquiry under section 704B, in 
accordance with the requirements of that section.’’.
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† HR 4173 PP
(c) CLERICAL AMENDMENT.—The table of sections for 
title VII of the Consumer Credit Protection Act is amended 
by inserting after the item relating to section 704A the fol-
lowing new item: 
‘‘704B. Small business loan data collection.’’. 
(d) EFFECTIVE DATE.—This section shall become effec-
tive on the designated transfer date. 
SEC. 1072. GAO STUDY ON THE EFFECTIVENESS AND IM-
PACT OF VARIOUS APPRAISAL METHODS. 
(a) IN GENERAL.—The Government Accountability 
Office shall conduct a study on the effectiveness and impact 
of various appraisal methods, including the cost approach, 
the comparative sales approach, the income approach, and 
others that may be available. 
(b) STUDY.—Not later than— 
(1) 1 year after the date of enactment of this Act, 
the Government Accountability Office shall submit a 
study to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives; 
(2) 90 days after the date of enactment of this 
Act, the Government Accountability Office shall pro-
vide a report on the status of the study and any pre-
liminary findings to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the
1443 
† HR 4173 PP
Committee on Financial Services of the House of Rep-
resentatives. 
(c) CONTENT OF STUDY.—The study required by this 
section shall include an examination of— 
(1) the prevalence, alone or in combination, of 
these approaches in purchase-money and refinance 
mortgage transactions; 
(2) the accuracy of the various approaches in as-
sessing the property as collateral; 
(3) whether and how the approaches contributed 
to price speculation in the previous cycle; 
(4) the costs to consumers of these approaches; 
(5) the disclosure of fees to consumers in the ap-
praisal process; 
(6) to what extent such approaches may be influ-
enced by a conflict of interest between the mortgage 
lender and the appraiser and the mechanism by 
which the lender selects and compensates the ap-
praiser; and 
(7) the suitability of appraisal approaches in 
rural versus urban areas.
1447 
† HR 4173 PP
‘‘(B) does not include any person who is not 
otherwise described in subparagraph (A) and 
who performs purely administrative or clerical 
tasks on behalf of a person who is described in 
subparagraph (A); and 
‘‘(C) does not include a person that only 
performs real estate brokerage activities and is 
licensed or registered in accordance with appli-
cable State law, unless the person is compensated 
by a lender or other loan originator or by any 
agent of such lender or other loan originator.’’. 
SEC. 1074. MINIMUM STANDARDS FOR RESIDENTIAL MORT-
GAGE LOANS. 
(a) IN GENERAL.—No rule, order, or guidance issued 
by the Bureau under this title shall be construed as requir-
ing a depository institution to apply mortgage under-
writing standards that do not meet the minimum under-
writing standards required by the appropriate prudential 
regulator of the depository institution. 
(b) ABILITY TO REPAY.— 
(1) TILA AMENDMENT.—Section 129 of the 
Truth in Lending Act (15 U.S.C. 1639), as amended 
by section 1074 of this Act, is further amended by in-
serting after subsection (k) the following: 
‘‘(l) ABILITY TO REPAY.—
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‘‘(1) IN
GENERAL.—No creditor may make a 
loan secured by real property or a dwelling unless the 
creditor, based on verified and documented informa-
tion, determines that, at the time the loan is con-
summated, the consumer has a reasonable ability to 
repay the loan, according to its terms, and all appli-
cable taxes, insurance, and assessments. 
‘‘(2) MULTIPLE LOANS.—If the creditor knows, 
or has reason to know, that 1 or more loans secured 
by the same real property or dwelling will be made 
to the same consumer, the creditor shall, based on 
verified and documented information, determine that 
the consumer has a reasonable ability to repay the 
combined payments of all loans on the same real 
property or dwelling according to the terms of those 
loans and all applicable taxes, insurance, and assess-
ments. 
‘‘(3) BASIS FOR DETERMINATION.—A determina-
tion under this subsection of a consumer’s ability to 
repay a loan described in paragraph (1) shall include 
consideration of the consumer’s credit history, current 
income, expected income the consumer is reasonably 
assured of receiving, current obligations, debt-to-in-
come ratio or the residual income the consumer will 
have after paying non-mortgage debt and mortgage-
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related obligations, employment status, and other fi-
nancial resources other than the consumer’s equity in 
the dwelling or real property that secures repayment 
of the loan. 
‘‘(4) INCOME
VERIFICATION.—A creditor shall 
verify amounts of income or assets that such creditor 
relies on to determine repayment ability, including 
expected income or assets, by reviewing the con-
sumer’s Internal Revenue Service Form W–2, tax re-
turns, payroll receipts, financial institution records, 
or other third-party documents that provide reason-
ably reliable evidence of the consumer’s income or as-
sets. In order to safeguard against fraudulent report-
ing, any consideration of a consumer’s income history 
in making a determination under this subsection 
shall include the verification of such income by the 
use of— 
‘‘(A) Internal Revenue Service transcripts 
of tax returns; or 
‘‘(B) a method that quickly and effectively 
verifies income documentation by a third party 
subject to rules prescribed by the Board. 
‘‘(5) PRESUMPTION OF ABILITY TO REPAY.—Any 
creditor with respect to any consumer loan secured by 
real property or a dwelling is presumed to have com-
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plied with this subsection with respect to such loan if 
the creditor— 
‘‘(A) verifies the consumer’s ability to repay 
as provided in paragraphs (1), (2), (3), and (4); 
and 
‘‘(B) determines the consumer’s ability to 
repay using the maximum rate permitted under 
the loan during the first 5 years following con-
summation and a payment schedule that fully 
amortizes the loan and taking into account cur-
rent obligations and all applicable taxes, insur-
ance, and assessments. 
‘‘(6) EXCEPTIONS TO PRESUMPTION.—Notwith-
standing paragraph (5), no presumption of compli-
ance shall be applied to a loan— 
‘‘(A) for which the regular periodic pay-
ments for the loan may— 
‘‘(i) result in an increase of the prin-
cipal balance; or 
‘‘(ii) allow the consumer to defer re-
payment of principal. 
‘‘(B) the terms of which result in a balloon 
payment, where a ‘balloon payment’ is a sched-
uled payment that is more than twice as large 
as the average of earlier scheduled payments; or
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‘‘(C) for which the total points and fees 
payable in connection with the loan exceed 3 
percent of the total loan amount, where ‘points 
and fees’ means points and fees as defined by 
section 103(aa)(4) of the Truth in Lending Act 
(15 U.S.C. 1602(aa)(4)), except that, for the pur-
poses of computing the total points and fees 
under this subparagraph, the total points and 
fees attributable to any premium for mortgage 
guarantee insurance provided by an agency of 
the Federal Government or an agency of a State 
shall exclude any amount of the points and fees 
for such insurance greater than 1 percent of the 
total loan amount. 
‘‘(7) EXEMPTION.— 
‘‘(A) The Board may revise, add to, or sub-
tract from the criteria under paragraphs (5) and 
(6) and subparagraphs (B) and (C) of this para-
graph upon a finding that such regulations are 
necessary or appropriate to effectuate the pur-
poses of this title, to prevent circumvention or 
evasion thereof, or to facilitate compliance with 
this subsection. 
‘‘(B) BRIDGE LOANS.—This subsection does 
not apply to a temporary or ‘bridge’ loan with
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a term of 12 months or less, including to any 
loan to purchase a new dwelling where the con-
sumer plans to sell a current dwelling within 12 
months. 
‘‘(C) REVERSE
MORTGAGES.—This sub-
section does not apply with respect to any re-
verse mortgage. 
‘‘(8) SEASONAL INCOME.—If documented income, 
including income from a small business, is a repay-
ment source for an extension of credit secured by resi-
dential real estate or a dwelling, a creditor may con-
sider the seasonality and irregularity of such income 
in the underwriting of and scheduling of payments 
for such credit.’’. 
(2) CONFORMING AMENDMENT.—Section 129 of 
the Truth in Lending Act (15 U.S.C. 1639), as 
amended by this Act, is amended— 
(A) by redesignating subsections (k), (l), 
and (m) as subsections (m), (n), and (o), respec-
tively; and 
(B) in subsection (o), as so redesignated, by 
striking ‘‘(l)(2)’’ and inserting ‘‘(n)(2)’’.
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SEC. 1075. PROHIBITION ON CERTAIN PREPAYMENT PEN-
ALTIES. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lending 
Act (15 U.S.C. 1631 et seq.) is amended by inserting after 
section 129A (15 U.S.C. 1639a) the following new section: 
‘‘SEC. 129B. PROHIBITION ON CERTAIN PREPAYMENT PEN-
ALTIES. 
‘‘(a) PROHIBITED ON CERTAIN LOANS.—A residential 
mortgage loan that is not a qualified mortgage may not 
contain terms under which a consumer is required to pay 
a prepayment penalty for paying all or part of the prin-
cipal after the loan is consummated. 
‘‘(b) PHASED-OUT PENALTIES ON QUALIFIED MORT-
GAGES.— 
‘‘(1) IN GENERAL.—A qualified mortgage may 
not contain terms under which a consumer is re-
quired to pay a prepayment penalty for paying all 
or part of the principal after the loan is con-
summated in excess of— 
‘‘(A) during the 1-year period beginning on 
the date on which the loan is consummated, an 
amount equal to 3 percent of the outstanding 
balance on the loan; 
‘‘(B) during the 1-year period beginning 
immediately after the end of the period described
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the purpose and with the intent of evading the provi-
sions of this section; or 
‘‘(2) to divide any loan transaction into separate 
parts for the purpose and with the intent of evading 
provisions of this section. 
‘‘(e) PUBLICATION OF AVERAGE PRIME OFFER RATE 
AND APR THRESHOLDS.—The Board— 
‘‘(1) shall publish, and update at least weekly, 
average prime offer rates; 
‘‘(2) may publish multiple rates based on vary-
ing types of mortgage transactions; and 
‘‘(3) shall adjust the thresholds of 1.50 percentage 
points in subsection (g)(3)(A)(v)(I), 2.50 percentage 
points in subsection (g)(3)(A)(v)(II), and 3.50 per-
centage points in subsection (g)(3)(A)(v)(III), as nec-
essary to reflect significant changes in market condi-
tions and to effectuate the purposes of this section. 
‘‘(f) REGULATIONS.— 
‘‘(1) IN GENERAL.—The Bureau shall prescribe 
regulations to carry out this section. 
‘‘(2) REVISION OF SAFE HARBOR CRITERIA.—The 
Bureau may prescribe regulations that revise, add to, 
or subtract from the criteria that define a qualified 
mortgage, upon a finding that such regulations are 
necessary or appropriate—
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‘‘(A) to ensure that responsible, affordable 
mortgage credit remains available to consumers 
in a manner consistent with the purposes of this 
section; 
‘‘(B) to effectuate the purposes of this sec-
tion; 
‘‘(C) to prevent circumvention or evasion 
thereof; or 
‘‘(D) to facilitate compliance with this sec-
tion. 
‘‘(3) INTERAGENCY HARMONIZATION.— 
‘‘(A) 
DETERMINATION
OF
QUALIFYING 
MORTGAGE TREATMENT.—The agencies and offi-
cials described in subparagraph (B) shall, in 
consultation with the Bureau, prescribe rules de-
fining the types of loans they insure, guarantee, 
or administer, as the case may be, that are 
qualified mortgages for purposes of this section, 
upon a finding that such rules are consistent 
with the purposes of this section or are appro-
priate to prevent circumvention or evasion there-
of or to facilitate compliance with this section. 
‘‘(B) AGENCIES AND OFFICIALS.—The agen-
cies and officials described in this subparagraph 
are—
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‘‘(i) the Secretary of the Department of 
Housing and Urban Development, with re-
gard to mortgages insured under title II of 
the National Housing Act (12 U.S.C. 1707 
et seq.); 
‘‘(ii) the Secretary of Veterans Affairs, 
with regard to a loan made or guaranteed 
by the Secretary of Veterans Affairs; 
‘‘(iii) the Secretary of Agriculture, 
with regard to loans guaranteed by the Sec-
retary of Agriculture pursuant to section 
502 of the Housing Act of 1949 (42 U.S.C. 
1472(h)); 
‘‘(iv) the Federal Housing Finance 
Agency, with regard to loans meeting the 
conforming loan standards of the Federal 
National Mortgage Association or the Fed-
eral Home Loan Mortgage Corporation; and 
‘‘(v) the Rural Housing Service, with 
regard to loans insured by the Rural Hous-
ing Service. 
‘‘(4) IMPLEMENTATION.—Regulations required or 
authorized to be prescribed under this subsection—
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‘‘(A) shall be prescribed in final form before 
the end of the 12-month period beginning on the 
date of enactment of this section; and 
‘‘(B) shall take effect not later than 18 
months after the date of enactment of this sec-
tion. 
‘‘(g) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) AVERAGE PRIME OFFER RATE.—The term 
‘average prime offer rate’ means an annual percent-
age rate that is derived from average interest rates, 
points, and other loan pricing terms currently offered 
to consumers by a representative sample of creditors 
for mortgage transactions that have low-risk pricing 
characteristics. 
‘‘(2) PREPAYMENT PENALTY.—The term ‘prepay-
ment penalty’ means any penalty for paying all or 
part of the principal on an extension of credit before 
the date on which the principal is due, including a 
computation of a refund of unearned interest by a 
method that is less favorable to the consumer than the 
actuarial method, as defined in section 933(d) of the 
Housing and Community Development Act of 1992 
(15 U.S.C. 1615(d)).
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‘‘(3) QUALIFIED MORTGAGE.—The term ‘quali-
fied mortgage’ means— 
‘‘(A) any residential mortgage loan— 
‘‘(i) that does not have an adjustable 
rate; 
‘‘(ii) that does not allow a consumer to 
defer repayment of principal or interest, or 
is not otherwise deemed a ‘non-traditional 
mortgage’ under guidance, advisories, or 
regulations prescribed by the Bureau; 
‘‘(iii) that does not provide for a re-
payment schedule that results in negative 
amortization at any time; 
‘‘(iv) for which the terms are fully am-
ortizing and which does not result in a bal-
loon payment, where a ‘balloon payment’ is 
a scheduled payment that is more than 
twice as large as the average of earlier 
scheduled payments; 
‘‘(v) which has an annual percentage 
rate that does not exceed the average prime 
offer rate for a comparable transaction, as 
of the date on which the interest rate is 
set—