Title: Community Financial Institution Exemption Act
Policy area: Finance and Financial Sector

Summary:
Community Financial Institution Exemption Act
This bill amends the Consumer Financial Protection Act of 2010 to exempt community financial institutions from all rules and regulations issued by the Consumer Financial Protection Bureau (CFPB). A "community financial institution" is an insured depository institution or credit union with less than $50 billion in consolidated assets.
Under specified circumstances, and with the written agreement of the Federal Reserve Board and other specified federal banking agencies, the CFPB may revoke such an exemption with respect to a certain rule or regulation and a specific class of institutions.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1264 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 1264

  To provide an exemption from rules and regulations of the Bureau of 
Consumer Financial protection for community financial institutions, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 28, 2017

 Mr. Williams introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To provide an exemption from rules and regulations of the Bureau of 
Consumer Financial protection for community financial institutions, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Financial Institution 
Exemption Act''.

SEC. 2. EXEMPTION FOR COMMUNITY FINANCIAL INSTITUTIONS.

    Section 1022(b) of the Consumer Financial Protection Act of 2010 
(12 U.S.C. 5512(b)) is amended--
            (1) in paragraph (3), by amending the heading to read as 
        follows: ``General exemptions'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following:
            ``(4) Specific exemption for community financial 
        institutions.--
                    ``(A) In general.--Community financial institutions 
                shall be exempt from all rules and regulations issued 
                by the Bureau.
                    ``(B) Exception.--The Bureau may revoke an 
                exemption provided under subparagraph (A) with respect 
                to a specific rule or regulation and a specific class 
                of community financial institutions if--
                            ``(i) the Bureau makes a detailed, written 
                        finding that such class of community financial 
                        institutions has engaged in a pattern or 
                        practice of activities that have been 
                        detrimental to the interests of consumers and 
                        are of a type that the specific rule or 
                        regulation is intended to address;
                            ``(ii) the Bureau consults with the Federal 
                        banking agencies with respect to such 
                        revocation; and
                            ``(iii) each Federal banking agency 
                        provides the Bureau with a written notice 
                        stating that the Federal banking agency agrees 
                        with such revocation.
                    ``(C) Effective date; effect on prior rules.--
                            ``(i) Effective date.--This paragraph shall 
                        take effect with respect to rules and 
                        regulations issued or modified after the date 
                        of enactment of this paragraph.
                            ``(ii) Effect on prior rules.--This 
                        paragraph shall not prohibit the Bureau from 
                        modifying a rule or regulation issued prior to 
                        the date of enactment of this paragraph with 
                        respect to community financial institutions if 
                        the effect of such modification is to expand a 
                        current exemption or to reduce the costs and 
                        the regulatory burden associated with complying 
                        with such rule or regulation.
                    ``(D) Definitions.--For purposes of this paragraph:
                            ``(i) Community financial institution.--The 
                        term `community financial institution' means an 
                        insured depository institution or credit union 
                        with less than $50,000,000,000 in consolidated 
                        assets.
                            ``(ii) Federal banking agency.--The term 
                        `Federal banking agency' means the Board of 
                        Governors, the Office of the Comptroller of the 
                        Currency, the Corporation, and the National 
                        Credit Union Administration.''.
                                 <all>