Shutdown Guidance for Financial Institutions Act

Bill: 116-hr-2290
Sponsor: full_name: Rep. Wexton, Jennifer [D-VA-10]
Introduced: 2019-04-10
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Appropriations

Banking and financial institutions regulation

Congressional oversight

Consumer affairs

Consumer credit

Credit and credit markets

Government employee pay, benefits, personnel management

Government information and archives
Latest action: action_date: 2019-09-23
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2019-04-10
action_desc: Introduced in House
text: <p><b>Shutdown Guidance for Financial Institutions Act </b></p> <p>This bill directs financial regulators&#8212;including the Federal Reserve Board, the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration&#8212;to issue guidance relating to a government shutdown. Among other things, financial regulators must issue guidance encouraging financial institutions </p> <ul> <li>to modify loan terms and to extend credit to consumers and businesses affected by a shutdown, and </li> <li>to take steps to prevent the reporting of adverse credit information related to a shutdown. </li> </ul> <p>Financial regulators must also notify the public of this guidance in the event of a government shutdown, and complete a report after a government shutdown regarding the guidance's effectiveness. </p>

action_date: 2019-09-19
action_desc: Passed House
text: <p><b>Shutdown Guidance for Financial Institutions Act </b></p> <p>This bill directs financial regulators&#8212;including the Federal Reserve Board, the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration&#8212;to issue guidance relating to a government shutdown. Among other things, financial regulators must issue guidance encouraging financial institutions </p> <ul> <li>to modify loan terms and to extend credit to consumers and businesses affected by a shutdown, and </li> <li>to take steps to prevent the reporting of adverse credit information related to a shutdown. </li> </ul> <p>Financial regulators must also notify the public of this guidance in the event of a government shutdown, and complete a report after a government shutdown regarding the guidance's effectiveness. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 2290 IN THE HOUSE OF REPRESENTATIVES April 10, 2019 Ms. Wexton introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Federal financial regulators to issue guidance encouraging financial institutions to work with consumers and businesses affected by a Federal Government shutdown, and for other purposes.

1. Short title This Act may be cited as the Shutdown Guidance for Financial Institutions Act . 2. Shutdown guidance for financial institutions (a) Guidance Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Federal financial regulators shall, jointly, in consultation with State banking regulators and other appropriate Federal and State agencies, issue shutdown guidance to the financial institutions they regulate encouraging the financial institutions to— (1) work with consumers and businesses affected by a shutdown; (2) recognize that consumers and businesses affected by a shutdown may lose access to credit and face temporary hardship in making payments on debts such as mortgages, student loans, car loans, business loans, or credit cards; (3) consider prudent efforts to modify terms on existing loans or extend new credit to help consumers and businesses affected by a shutdown, consistent with safe-and-sound lending practices; and (4) take steps to prevent adverse information being reported and utilized in any manner that harms consumers affected by a shutdown, including by preventing modified credit arrangements intended to help consumers fulfill their financial obligations from being reported to, and coded by, consumer reporting agencies on a consumer's credit report in a manner that hurts the creditworthiness of the consumer. (b) Notice of guidance during a shutdown Not later than the end of the 24-hour period beginning at the start of a shutdown, the Federal financial regulators shall, jointly, issue a press release to alert financial institutions, consumers, and businesses to the existence, and content, of the guidance issued pursuant to subsection (a). (c) Post-Shutdown report (1) In general Not later than the end of the 90-day period beginning on the date a shutdown ends, the Federal financial regulators shall, jointly, issue a report to Congress containing an analysis of the effectiveness of the guidance issued pursuant to subsection (a) and what steps financial institutions took to assist consumers and businesses affected by a shutdown. (2) Updated guidance Not later than the end of the 180-day period beginning on the date a report is issued under paragraph (1), the Federal financial regulators shall update the guidance required under subsection (a) if any shortcomings are identified in such report. (d) Definitions In this section: (1) Consumers affected by a shutdown The term consumers affected by a shutdown means an individual who is an employee of— (A) the Federal Government, and who is furloughed or excepted from a furlough during the shutdown; (B) the District of Columbia, and who is not receiving pay because of the shutdown; or (C) a Federal contractor (as defined under section 7101 of title 41, United States Code) or other business, and who has experienced a substantial reduction in pay due to the shutdown. (2) Consumers and businesses affected by a shutdown The term consumers and businesses affected by a shutdown means— (A) a consumer affected by a shutdown; and (B) a Federal contractor (as defined under section 7101 of title 41, United States Code) or other business that has experienced a substantial reduction in income due to the shutdown. (3) Federal financial regulators The term Federal financial regulators means the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. (4) Shutdown The term shutdown means any period in which there is more than a 24-hour lapse in appropriations as a result of a failure to enact a regular appropriations bill or continuing resolution.

tv_txt: I 116th CONGRESS 1st Session H. R. 2290 IN THE HOUSE OF REPRESENTATIVES AN ACT To require the Federal financial regulators to issue guidance encouraging financial institutions to work with consumers and businesses affected by a Federal Government shutdown, and for other purposes.

1. Short title This Act may be cited as the Shutdown Guidance for Financial Institutions Act . 2. Shutdown guidance for financial institutions (a) Guidance Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Federal financial regulators shall, jointly, in consultation with State banking regulators and other appropriate Federal and State agencies, issue shutdown guidance to the financial institutions they regulate encouraging the financial institutions to— (1) work with consumers and businesses affected by a shutdown; (2) recognize that consumers and businesses affected by a shutdown may lose access to credit and face temporary hardship in making payments on debts such as mortgages, student loans, car loans, business loans, or credit cards; (3) consider prudent efforts to modify terms on existing loans or extend new credit to help consumers and businesses affected by a shutdown, consistent with safe-and-sound lending practices; and (4) take steps to prevent adverse information being reported in a manner that harms consumers affected by a shutdown, including by preventing modified credit arrangements intended to help consumers fulfill their financial obligations from being reported to, and coded by, consumer reporting agencies on a consumer's credit report in a manner that hurts the creditworthiness of the consumer. (b) Notice of guidance during a shutdown Not later than the end of the 24-hour period beginning at the start of a shutdown, the Federal financial regulators shall, jointly, issue a press release to alert financial institutions, consumers, and businesses to the existence, and content, of the guidance issued pursuant to subsection (a). (c) Post-Shutdown report to Congress and updated guidance (1) In general Not later than the end of the 90-day period beginning on the date a shutdown ends, the Federal financial regulators shall, jointly, issue a report to Congress containing an analysis of the effectiveness of the guidance issued pursuant to subsection (a). (2) Updated guidance Not later than the end of the 180-day period beginning on the date a report is issued under paragraph (1), the Federal financial regulators shall update the guidance required under subsection (a) if any shortcomings are identified in such report. (d) Definitions In this section: (1) Consumers affected by a shutdown The term consumers affected by a shutdown means an individual who is an employee of— (A) the Federal Government, and who is furloughed or excepted from a furlough during the shutdown; (B) the District of Columbia, and who is not receiving pay because of the shutdown; or (C) a Federal contractor (as defined under section 7101 of title 41, United States Code) or other business, and who has experienced a substantial reduction in pay due to the shutdown. (2) Consumers and businesses affected by a shutdown The term consumers and businesses affected by a shutdown means— (A) a consumer affected by a shutdown; and (B) a Federal contractor (as defined under section 7101 of title 41, United States Code) or other business that has experienced a substantial reduction in income due to the shutdown. (3) Federal financial regulators The term Federal financial regulators means the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. (4) Shutdown The term shutdown means any period in which there is more than a 24-hour lapse in appropriations as a result of a failure to enact a regular appropriations bill or continuing resolution. 3. Determination of budgetary effects The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Passed the House of Representatives September 19, 2019. Cheryl L. Johnson, Clerk.

tv_txt: IIB 116th CONGRESS 1st Session H. R. 2290 IN THE SENATE OF THE UNITED STATES September 23, 2019 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To require the Federal financial regulators to issue guidance encouraging financial institutions to work with consumers and businesses affected by a Federal Government shutdown, and for other purposes.

1. Short title This Act may be cited as the Shutdown Guidance for Financial Institutions Act . 2. Shutdown guidance for financial institutions (a) Guidance Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Federal financial regulators shall, jointly, in consultation with State banking regulators and other appropriate Federal and State agencies, issue shutdown guidance to the financial institutions they regulate encouraging the financial institutions to— (1) work with consumers and businesses affected by a shutdown; (2) recognize that consumers and businesses affected by a shutdown may lose access to credit and face temporary hardship in making payments on debts such as mortgages, student loans, car loans, business loans, or credit cards; (3) consider prudent efforts to modify terms on existing loans or extend new credit to help consumers and businesses affected by a shutdown, consistent with safe-and-sound lending practices; and (4) take steps to prevent adverse information being reported in a manner that harms consumers affected by a shutdown, including by preventing modified credit arrangements intended to help consumers fulfill their financial obligations from being reported to, and coded by, consumer reporting agencies on a consumer's credit report in a manner that hurts the creditworthiness of the consumer. (b) Notice of guidance during a shutdown Not later than the end of the 24-hour period beginning at the start of a shutdown, the Federal financial regulators shall, jointly, issue a press release to alert financial institutions, consumers, and businesses to the existence, and content, of the guidance issued pursuant to subsection (a). (c) Post-Shutdown report to Congress and updated guidance (1) In general Not later than the end of the 90-day period beginning on the date a shutdown ends, the Federal financial regulators shall, jointly, issue a report to Congress containing an analysis of the effectiveness of the guidance issued pursuant to subsection (a). (2) Updated guidance Not later than the end of the 180-day period beginning on the date a report is issued under paragraph (1), the Federal financial regulators shall update the guidance required under subsection (a) if any shortcomings are identified in such report. (d) Definitions In this section: (1) Consumers affected by a shutdown The term consumers affected by a shutdown means an individual who is an employee of— (A) the Federal Government, and who is furloughed or excepted from a furlough during the shutdown; (B) the District of Columbia, and who is not receiving pay because of the shutdown; or (C) a Federal contractor (as defined under section 7101 of title 41, United States Code) or other business, and who has experienced a substantial reduction in pay due to the shutdown. (2) Consumers and businesses affected by a shutdown The term consumers and businesses affected by a shutdown means— (A) a consumer affected by a shutdown; and (B) a Federal contractor (as defined under section 7101 of title 41, United States Code) or other business that has experienced a substantial reduction in income due to the shutdown. (3) Federal financial regulators The term Federal financial regulators means the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. (4) Shutdown The term shutdown means any period in which there is more than a 24-hour lapse in appropriations as a result of a failure to enact a regular appropriations bill or continuing resolution. 3. Determination of budgetary effects The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Passed the House of Representatives September 19, 2019. Cheryl L. Johnson, Clerk.