IB 
Union Calendar No. 447 
115TH CONGRESS 
2D SESSION 
H. R. 4545 
[Report No. 115–589] 
To amend the Federal Financial Institutions Examination Council Act of 
1978 to improve the examination of depository institutions, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 4, 2017 
Mr. TIPTON (for himself and Mrs. CAROLYN B. MALONEY of New York) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
MARCH 6, 2018 
Additional sponsors: Mr. HULTGREN, Mr. ZELDIN, Mr. PITTENGER, Mr. 
GOTTHEIMER, Mr. LUCAS, and Mr. MESSER 
MARCH 6, 2018 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
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A BILL 
To amend the Federal Financial Institutions Examination 
Council Act of 1978 to improve the examination of de-
pository institutions, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial Institutions 
Examination Fairness and Reform Act’’. 
SEC. 2. AMENDMENT TO DEFINITION OF FINANCIAL INSTI-
TUTION. 
Section 1003(3) of the Federal Financial Institutions 
Examination Council Act of 1978 (12 U.S.C. 3302(3)) is 
amended to read as follows: 
‘‘(3) the term ‘financial institution’— 
‘‘(A) means a commercial bank, a savings 
bank, a trust company, a savings association, a 
building and loan association, a homestead as-
sociation, a cooperative bank, or a credit union; 
and 
‘‘(B) for purposes of sections 1012, 1013, 
and 1014, includes a nondepository covered per-
son subject to supervision by the Bureau of 
Consumer Financial Protection under section 
1024 of the Consumer Financial Protection Act 
of 2010 (12 U.S.C. 5514).’’. 
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SEC. 3. TIMELINESS OF EXAMINATION REPORTS. 
The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 1012. TIMELINESS OF EXAMINATION REPORTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) FINAL EXAMINATION REPORT.—A Federal 
financial institutions regulatory agency shall provide 
a final examination report to a financial institution 
not later than 60 days after the later of— 
‘‘(A) the exit interview for an examination 
of the institution; or 
‘‘(B) the provision of additional informa-
tion by the institution relating to the examina-
tion. 
‘‘(2) EXIT INTERVIEW.—If a financial institu-
tion is not subject to a resident examiner program, 
the exit interview shall occur not later than the end 
of the 9-month period beginning on the commence-
ment of the examination, except that such period 
may be extended by the Federal financial institu-
tions regulatory agency by providing written notice 
to the institution and the Independent Examination 
Review Director describing with particularity the 
reasons that a longer period is needed to complete 
the examination. 
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‘‘(b) EXAMINATION MATERIALS.—Upon the request 
of a financial institution, the Federal financial institutions 
regulatory agency shall include with the final report an 
appendix listing all examination or other factual informa-
tion relied upon by the agency in support of a material 
supervisory determination.’’. 
SEC. 4. INDEPENDENT EXAMINATION REVIEW DIRECTOR. 
The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended 
by section 3, is further amended by adding at the end the 
following: 
‘‘SEC. 1013. OFFICE OF INDEPENDENT EXAMINATION RE-
VIEW. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Council an Office of Independent Examination Review 
(the ‘Office’). 
‘‘(b) HEAD OF OFFICE.—There is established the po-
sition of the Independent Examination Review Director 
(the ‘Director’), as the head of the Office. The Director 
shall be appointed by the Council and shall be independent 
from any member agency of the Council. 
‘‘(c) TERM.—The Director shall serve for a term of 
5 years, and may be appointed to serve a subsequent 5- 
year term. 
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‘‘(d) STAFFING.—The Director is authorized to hire 
staff to support the activities of the Office. 
‘‘(e) DUTIES.—The Director shall— 
‘‘(1) receive and, at the Director’s discretion, 
investigate complaints from financial institutions, 
their representatives, or another entity acting on be-
half of such institutions, concerning examinations, 
examination practices, or examination reports; 
‘‘(2) hold meetings, at least once every three 
months and in locations designed to encourage par-
ticipation from all sections of the United States, 
with financial institutions, their representatives, or 
another entity acting on behalf of such institutions, 
to discuss examination procedures, examination 
practices, or examination policies; 
‘‘(3) in accordance with subsection (f), review 
examination procedures of the Federal financial in-
stitutions regulatory agencies to ensure that the 
written examination policies of those agencies are 
being followed in practice and adhere to the stand-
ards for consistency established by the Council; 
‘‘(4) conduct a continuing and regular review of 
examination quality assurance for all examination 
types conducted by the Federal financial institutions 
regulatory agencies; 
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‘‘(5) adjudicate any supervisory appeal initiated 
under section 1014; and 
‘‘(6) report annually to the Committee on Fi-
nancial Services of the House of Representatives, the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Council, on the reviews car-
ried out pursuant to paragraphs (3) and (4), includ-
ing compliance with the requirements set forth in 
section 1012 regarding timeliness of examination re-
ports, and the Council’s recommendations for im-
provements in examination procedures, practices, 
and policies. 
‘‘(f) STANDARD FOR REVIEWING EXAMINATION PRO-
CEDURES.—In conducting reviews pursuant to subsection 
(e)(4), the Director shall prioritize factors relating to the 
safety and soundness of the financial system of the United 
States. 
‘‘(g) REMOVAL.—If the Director is removed from of-
fice, the Council shall communicate in writing the reasons 
for any such removal to the Committee on Financial Serv-
ices of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate 
not later than 30 days before the removal. 
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‘‘(h) CONFIDENTIALITY.—The Director shall keep 
confidential all meetings with, discussions with, and infor-
mation provided by financial institutions.’’. 
SEC. 5. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SU-
PERVISORY DETERMINATIONS. 
The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended 
by section 4, is further amended by adding at the end the 
following: 
‘‘SEC. 1014. RIGHT TO INDEPENDENT REVIEW OF MATERIAL 
SUPERVISORY DETERMINATIONS. 
‘‘(a) IN GENERAL.—A financial institution shall have 
the right to obtain an independent review of a material 
supervisory determination contained in a final report of 
examination. 
‘‘(b) NOTICE.— 
‘‘(1) TIMING.—A financial institution seeking 
review of a material supervisory determination under 
this section shall file a written notice with the Inde-
pendent Examination Review Director (the ‘Direc-
tor’) within 60 days after receiving the final report 
of examination that is the subject of such review. 
‘‘(2) IDENTIFICATION
OF
DETERMINATION.— 
The written notice shall identify the material super-
visory determination that is the subject of the inde-
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pendent examination review, and a statement of the 
reasons why the institution believes that the deter-
mination is incorrect or should otherwise be modi-
fied. 
‘‘(3) INFORMATION TO BE PROVIDED TO INSTI-
TUTION.—Any information relied upon by the agen-
cy in the final report that is not in the possession 
of the financial institution may be requested by the 
financial institution and shall be delivered promptly 
by the agency to the financial institution. 
‘‘(c) RIGHT TO HEARING.— 
‘‘(1) IN GENERAL.—The Director shall deter-
mine the merits of the appeal on the record or, at 
the financial institution’s election, shall refer the ap-
peal to an Administrative Law Judge to conduct a 
confidential hearing pursuant to the procedures set 
forth under sections 556 and 557 of title 5, United 
States Code, which hearing shall take place not later 
than 60 days after the petition for review was re-
ceived by the Director, and to issue a proposed deci-
sion to the Director based upon the record estab-
lished at such hearing. 
‘‘(2) STANDARD OF REVIEW.—In rendering a 
determination or recommendation under this sub-
section, neither the Administrative Law Judge nor 
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the Director shall defer to the opinions of the exam-
iner or agency, but shall conduct a de novo review 
to independently determine the appropriateness of 
the agency’s decision based upon the relevant stat-
utes, regulations, and other appropriate guidance, as 
well as evidence adduced at any hearing. 
‘‘(d) FINAL DECISION.—A decision by the Director 
on an independent review under this section shall— 
‘‘(1) be made not later than 60 days after the 
record has been closed; and 
‘‘(2) subject to subsection (e), be deemed a final 
agency action and shall bind the agency whose su-
pervisory determination was the subject of the re-
view and the financial institution requesting the re-
view. 
‘‘(e) LIMITED REVIEW BY FFIEC.— 
‘‘(1) IN GENERAL.—If the agency whose super-
visory determination was the subject of the review 
believes that the Director’s decision under subsection 
(d) would pose an imminent threat to the safety and 
soundness of the financial institution, such agency 
may file a written notice seeking review of the Direc-
tor’s decision with the Council within 10 days of re-
ceiving the Director’s decision. 
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‘‘(2) STANDARD OF REVIEW.—In making a de-
termination under this subsection, the Council shall 
conduct a review to determine whether there is sub-
stantial evidence that the Director’s decision would 
pose an imminent threat to the safety and soundness 
of the financial institution. 
‘‘(3) FINAL DETERMINATION.—A determination 
by the Council shall— 
‘‘(A) be made not later than 30 days after 
the filing of the notice pursuant to paragraph 
(1); and 
‘‘(B) be deemed a final agency action and 
shall bind the agency whose supervisory deter-
mination was the subject of the review and the 
financial institution requesting the review. 
‘‘(f) RIGHT TO JUDICIAL REVIEW.—A financial insti-
tution shall have the right to petition for review of final 
agency action under this section by filing a Petition for 
Review within 60 days of the Director’s decision or the 
Council’s decision in the United States Court of Appeals 
for the District of Columbia Circuit or the Circuit in which 
the financial institution is located. 
‘‘(g) REPORT.—The Director shall report annually to 
the Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
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Urban Affairs of the Senate on actions taken under this 
section, including the types of issues that the Director has 
reviewed and the results of those reviews. In no case shall 
such a report contain information about individual finan-
cial institutions or any confidential or privileged informa-
tion shared by financial institutions. 
‘‘(h) RETALIATION PROHIBITED.—A Federal finan-
cial institutions regulatory agency may not— 
‘‘(1) retaliate against a financial institution, in-
cluding service providers, or any institution-affiliated 
party (as defined under section 3 of the Federal De-
posit Insurance Act), for exercising appellate rights 
under this section; or 
‘‘(2) delay or deny any agency action that 
would benefit a financial institution or any institu-
tion-affiliated party on the basis that an appeal 
under this section is pending under this section. 
‘‘(i) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed— 
‘‘(1) to affect the right of a Federal financial 
institutions regulatory agency to take enforcement 
or other supervisory actions related to a material su-
pervisory determination under review under this sec-
tion; or 
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‘‘(2) to prohibit the review under this section of 
a material supervisory determination with respect to 
which there is an ongoing enforcement or other su-
pervisory action.’’. 
SEC. 6. ADDITIONAL AMENDMENTS. 
(a) RIEGLE COMMUNITY DEVELOPMENT AND REGU-
LATORY IMPROVEMENT ACT OF 1994.—Section 309 of the 
Riegle Community Development and Regulatory Improve-
ment Act of 1994 (12 U.S.C. 4806) is amended— 
(1) in subsection (a), by inserting after ‘‘appro-
priate Federal banking agency’’ the following: ‘‘, the 
Bureau of Consumer Financial Protection,’’; 
(2) in subsection (b)— 
(A) in paragraph (2), by striking ‘‘the ap-
pellant from retaliation by agency examiners’’ 
and inserting ‘‘the insured depository institu-
tion or insured credit union from retaliation by 
the agencies referred to in subsection (a)’’; and 
(B) by adding at the end the following 
flush-left text: 
‘‘For purposes of this subsection and subsection (e), retal-
iation includes delaying consideration of, or withholding 
approval of, any request, notice, or application that other-
wise would have been approved, but for the exercise of the 
institution’s or credit union’s rights under this section.’’; 
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(3) in subsection (e)(2)— 
(A) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (C), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(D) ensure that appropriate safeguards 
exist for protecting the insured depository insti-
tution or insured credit union from retaliation 
by any agency referred to in subsection (a) for 
exercising its rights under this subsection.’’; 
and 
(4) in subsection (f)(1)(A)— 
(A) in clause (ii), by striking ‘‘and’’ at the 
end; 
(B) in clause (iii), by striking ‘‘and’’ at the 
end; and 
(C) by adding at the end the following: 
‘‘(iv) any issue specifically listed in an 
exam report as a matter requiring atten-
tion by the institution’s management or 
board of directors; and 
‘‘(v) any suspension or removal of an 
institution’s status as eligible for expedited 
processing of applications, requests, no-
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tices, or filings on the grounds of a super-
visory or compliance concern, regardless of 
whether that concern has been cited as a 
basis for another material supervisory de-
termination or matter requiring attention 
in an examination report, provided that the 
conduct at issue did not involve violation of 
any criminal law; and’’. 
(b) FEDERAL CREDIT UNION ACT.—Section 205(j) 
of the Federal Credit Union Act (12 U.S.C. 1785(j)) is 
amended by inserting ‘‘the Bureau of Consumer Financial 
Protection,’’ before ‘‘the Administration’’ each place such 
term appears. 
(c) FEDERAL FINANCIAL INSTITUTIONS EXAMINA-
TION COUNCIL ACT OF 1978.—The Federal Financial In-
stitutions Examination Council Act of 1978 (12 U.S.C. 
3301 et seq.) is amended— 
(1) in section 1003, by amending paragraph (1) 
to read as follows: 
‘‘(1) the term ‘Federal financial institutions 
regulatory agencies’— 
‘‘(A) means the Office of the Comptroller 
of the Currency, the Board of Governors of the 
Federal Reserve System, the Federal Deposit 
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Insurance Corporation, and the National Credit 
Union Administration; and 
‘‘(B) for purposes of sections 1012, 1013, 
and 1014, includes the Bureau of Consumer Fi-
nancial Protection;’’; and 
(2) in section 1005, by striking ‘‘One-fifth’’ and 
inserting ‘‘One-fourth’’. 
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Union Calendar No. 447 
115TH CONGRESS 
2D SESSION 
H. R. 4545 
[Report No. 115–589] 
A BILL 
To amend the Federal Financial Institutions Exam-
ination Council Act of 1978 to improve the exam-
ination of depository institutions, and for other 
purposes. 
MARCH 6, 2018 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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