825 
(iii) correct errors in the appraisal re-
port; and 
(2) shall include a requirement that lenders and 
their agents compensate appraisers at a rate that is 
customary and reasonable for appraisal services per-
formed in the market area of the property being ap-
praised. 
(c) SUNSET.—Effective on the date the appraisal 
independence requirements are promulgated pursuant to 
subsection (a), the Home Valuation Code of Conduct an-
nounced by the Federal Housing Finance Agency on De-
cember 23, 2008, shall have no force or effect. 
Subtitle D—Preservation of State 
Law 
SEC. 4401. RELATION TO STATE LAW. 
(a) IN GENERAL.— 
(1) RULE OF CONSTRUCTION.—This title shall 
not be construed as annulling, altering, or affecting, 
or exempting any person subject to the provisions of 
this title from complying with, the laws, regulations, 
orders, or interpretations, in effect in any State, ex-
cept to the extent that such statute, regulation, 
order, or interpretation is inconsistent with the pro-
visions of this title and then only to the extent of the 
inconsistency. 
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(2) GREATER
PROTECTION
UNDER
STATE 
LAW.—For the purposes of this subsection, a stat-
ute, regulation, order, or interpretation in effect in 
any State is not inconsistent with the provisions of 
this title if the protection such statute, regulation, 
order, or interpretation affords consumers is greater 
than the protection provided under this title. A de-
termination regarding whether a statute, regulation, 
order, or interpretation in effect in any State is in-
consistent with the provisions of this title may be 
made by the Agency on its own motion or in re-
sponse to a nonfrivolous petition initiated by any in-
terested person. 
(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 
4803, shall be construed as modifying, limiting, or super-
seding the operation of any provision of an enumerated 
consumer law that relates to the application of a law in 
effect in any State with respect to such Federal law. 
SEC. 4402. PRESERVATION OF ENFORCEMENT POWERS OF 
STATES. 
(a) IN GENERAL.— 
(1) ACTION
BY
STATE.—Any State attorney 
general may bring a civil action in the name of such 
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State, as parens patriae on behalf of natural persons 
residing in such State, in any district court of the 
United States or State court having jurisdiction of 
the defendant, to secure monetary or equitable relief 
for violation of any provisions of this title or regula-
tions issued thereunder. 
(2) RULE OF CONSTRUCTION.—No provision of 
this title shall be construed as modifying, limiting, 
or superseding the operation of any provision of an 
enumerated consumer law that relates to the author-
ity 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 
to enforce any provision of this title, including 
any regulation prescribed by the Director under 
this title, a State attorney general or State reg-
ulator shall timely provide a copy of the com-
plete complaint to be filed and written notice 
describing such action or proceeding to the 
Agency, or the Agency’s designee. 
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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 Agency 
immediately upon instituting the action or pro-
ceeding. 
(C) CONTENTS OF NOTICE.—The notifica-
tion required under this section shall, at a min-
imum, 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 pro-
ceeding so as not to interfere with any ac-
tion, including any rulemaking, undertaken 
by the Director or Agency or another Fed-
eral agency. 
(2) AGENCY
RESPONSE.—In any action de-
scribed in paragraph (1), the Agency 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 
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action was not originally brought there; 
and 
(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 pro-
ceeding may. 
(c) REGULATIONS.—The Director shall prescribe reg-
ulations to implement the requirements of this section 
and, from time to time, provide guidance in order to fur-
ther coordinate actions with the State attorneys general 
and other regulators. 
(d) PRESERVATION OF STATE AUTHORITY.— 
(1) STATE CLAIMS.—No provision of this sec-
tion shall be construed as limiting the authority of 
a State attorney general or State regulator to bring 
an action or other regulatory proceeding arising sole-
ly under the law of that State. 
(2) STATE SECURITIES REGULATORS.—No pro-
vision 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 
enforcement proceedings, or take any other action 
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with respect to a person regulated by such commis-
sion or authority. 
(3) STATE INSURANCE REGULATORS.—No pro-
vision 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 
regulated by such commission or regulator. 
SEC. 4403. PRESERVATION OF EXISTING CONTRACTS. 
This title, and regulations, orders, guidance, and in-
terpretations prescribed, issued, and established by the 
Agency, shall not be construed to alter or affect the appli-
cability of any regulation, order, guidance, or interpreta-
tion 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 the enactment of this title, by national 
banks, Federal savings associations, or subsidiaries there-
of that are regulated and supervised by the Comptroller 
of the Currency or the Director of the Office of Thrift 
Supervision, respectively. 
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SEC. 4404. STATE LAW PREEMPTION STANDARDS FOR NA-
TIONAL BANKS AND SUBSIDIARIES CLARI-
FIED. 
(a) IN GENERAL.—Chapter one of title LXII of the 
Revised Statutes of the United States (12 U.S.C. 21 et 
1 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 regulates the man-
ner, content, or terms and conditions of any finan-
cial transaction (as may be authorized for national 
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banks to engage in), or any account related thereto, 
with respect to a consumer. 
‘‘(3) OTHER
DEFINITIONS.—The terms ‘affil-
iate’, ‘subsidiary’, ‘includes’, and ‘including’ have the 
same meaning as in section 3 of the Federal Deposit 
Insurance Act. 
‘‘(b) PREEMPTION STANDARD.— 
‘‘(1) IN GENERAL.—National banks shall gen-
erally comply with State laws. State laws are pre-
empted only if— 
‘‘(A) application of a state 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 Comptroller of the Currency de-
termines by regulation or order on a case-by- 
case basis that a State law prevents or signifi-
cantly interferes with the ability of an insured 
depository institution chartered as national 
bank to engage in the business of banking; or 
‘‘(C) the State law is preempted by Fed-
eral law other than this Act. 
‘‘(2) SAVINGS CLAUSE.—This Act does not pre-
empt or alter the applicability of any State law to 
any national bank subsidiary, affiliate, or other enti-
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ty that is not an insured depository institution char-
tered as a national bank. 
‘‘(3) RULE OF CONSTRUCTION.—This Act does 
not occupy the field in any area of State law and a 
court shall review any claim that a State law is pre-
empted by this Act as a matter of law and without 
deference to any agency claim that a State law is 
preempted under this Act. 
‘‘(4) REVIEW OF PREEMPTION DECISIONS.—A 
court shall review any claim that a State law is pre-
empted by this Act as a matter of law and without 
deference to any agency claim that a state law is 
preempted under this Act. Nothing in this sub-
section shall affect the deference that a court affords 
to the Comptroller of the Currency regarding the 
meaning or interpretation of the National Bank Act 
or other Federal laws. 
‘‘(c) SUBSTANTIAL EVIDENCE.—No regulation of the 
Comptroller of the Currency prescribed under subsection 
(b)(1)(B), shall be interpreted or applied so as to invali-
date, 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 that the provision 
prevents or significantly interferes with the national 
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bank’s exercise of a power explicitly granted by the Con-
gress. 
‘‘(d) OTHER FEDERAL LAWS.—Notwithstanding any 
other provision of law, the Comptroller of the Currency 
may not prescribe regulation pursuant to subsection 
(b)(1)(B) until the Comptroller of the Currency, after con-
sultation with the Consumer Financial Protection Agency, 
makes a finding, in writing, that a Federal law provides 
a substantive standard, applicable to a national bank, 
which regulates the particular conduct, activity, or author-
ity that is subject to such provision of the State consumer 
financial law. 
‘‘(e) PERIODIC REVIEW
OF PREEMPTION DETER-
MINATIONS.—The Comptroller of the Currency shall peri-
odically conduct a review, through notice and public com-
ment, 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 otherwise issuing such determination, and 
at least once during each 5-year period thereafter. After 
conducting the review of, and inspecting the comments 
made on, the determination, the agency shall timely pro-
pose to continue, amend or rescind it, as may be appro-
priate, in accordance with the procedures set forth in sub-
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sections (a) and (b) of section 5244 (12 U.S.C. 43(a)– 
(b)). 
‘‘(f) APPLICATION OF STATE CONSUMER FINANCIAL 
LAW
TO
SUBSIDIARIES
AND
AFFILIATES.—Notwith-
standing any provision of this title, a State consumer fi-
nancial law shall apply to a subsidiary or affiliate of a 
national bank to the same extent that the State consumer 
financial law applies to any person, corporation, or other 
entity subject to such State law.’’. 
(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 
relating to section 5136B the following new item: 
‘‘5136C. State law preemption standards for national banks and subsidiaries 
clarified.’’. 
SEC. 4405. VISITORIAL STANDARDS. 
Section 5136C of the Revised Statutes of the United 
States (as added by section 4404) is amended by adding 
at the end the following new subsections: 
‘‘(g) VISITORIAL POWERS.— 
‘‘(1) RULE OF CONSTRUCTION.—No provision 
of this title which relates to visitorial powers or oth-
erwise limits or restricts the supervisory, examina-
tion, or regulatory authority to which any national 
bank is subject shall be construed as limiting or re-
stricting the authority of any attorney general (or 
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