H. Rept. 111-367 - 111th Congress (2009-2010)

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House Report 111-367 - CONSUMER FINANCIAL PROTECTION AGENCY ACT OF 2009

[House Report 111-367]
[From the U.S. Government Publishing Office]


111th Congress                                            Rept. 111-367
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
            CONSUMER FINANCIAL PROTECTION AGENCY ACT OF 2009

                                _______
                                

                December 9, 2009.--Ordered to be printed

                                _______
                                

 Mr. Waxman, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3126]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3126) to establish the Consumer Financial 
Protection Agency, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    90
Background and Need for Legislation..............................    91
Legislative History..............................................    91
Committee Consideration..........................................    92
Committee Votes..................................................    92
Committee Oversight Findings and Recommendations.................    94
New Budget Authority and Congressional Budget Office Estimate....    94
Statement of General Performance Goals and Objectives............    94
Constitutional Authority Statement...............................    94
Earmarks and Tax and Tariff Benefits.............................    94
Advisory Committee Statement.....................................    94
Applicability of Law to Legislative Branch.......................    94
Federal Mandates Statement.......................................    95
Committee Cost Estimate..........................................    95
Section-by-Section Analysis of the Legislation...................    95
Explanation of Amendments........................................    98
Changes in Existing Law Made by the Bill, as Reported............    99
Dissenting Views.................................................   100

                               AMENDMENT

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Consumer Financial Protection 
Commission Act of 2009''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

           TITLE I--CONSUMER FINANCIAL PROTECTION COMMISSION

Sec. 1. Definitions.

              Subtitle A--Establishment of the Commission

Sec. 111. Establishment of the Consumer Financial Protection 
Commission.
Sec. 112. Composition of the Commission.
Sec. 113. Consumer Financial Protection Oversight Board.
Sec. 114. Executive and administrative powers.
Sec. 115. Administration.
Sec. 116. Consumer Advisory Board.
Sec. 117. Coordination.
Sec. 118. Reports to the Congress.
Sec. 118A. GAO small business studies.
Sec. 119. Funding; fees and assessments; penalties and fines.
Sec. 120. Amendments relating to other administrative provisions.
Sec. 120A. Effective date.

              Subtitle B--General Powers of the Commission

Sec. 121. Mandate and objectives.
Sec. 122. Authorities.
Sec. 123. Examination and enforcement for small banks, thrifts, and 
credit unions.
Sec. 124. Simultaneous and coordinated supervisory action.
Sec. 125. Limitations on authority Commission.
Sec. 126. Collection of information; confidentiality regulations.
Sec. 127. Monitoring; assessments of significant regulations; reports.
Sec. 128. Authority to restrict mandatory predispute arbitration.
Sec. 129. Registration and supervision of nondepository covered 
persons.
Sec. 130. Effective date.

                    Subtitle C--Specific Authorities

Sec. 131. Prohibiting unfair, deceptive, or abusive acts or practices.
Sec. 132. Disclosures.
Sec. 133. Sales practices.
Sec. 134. Pilot disclosures.
Sec. 135. Adopting operational standards to deter unfair, deceptive, or 
abusive practices.
Sec. 136. Duties.
Sec. 137. Consumer rights to access information.
Sec. 138. Prohibited acts.
Sec. 139. Treatment of remittance transfers.
Sec. 140. Effective date.
Sec. 140A. No authority to require the offering of financial products 
or services.
Sec. 140B. Appraisal independence requirements.

                 Subtitle D--Preservation of State Law

Sec. 141. Relation to State law.
Sec. 142. Preservation of enforcement powers of States.
Sec. 143. Preservation of existing contracts.
Sec. 144. State law preemption standards for national banks and 
subsidiaries clarified.
Sec. 145. Visitorial standards.
Sec. 146. Clarification of law applicable to nondepository institution 
subsidiaries.
Sec. 147. State law preemption standards for Federal savings 
associations and subsidiaries clarified.
Sec. 148. Visitorial standards.
Sec. 149. Clarification of law applicable to nondepository institution 
subsidiaries.
Sec. 150. Effective date.

                     Subtitle E--Enforcement Powers

Sec. 151. Definitions.
Sec. 152. Investigations and administrative discovery.
Sec. 153. Hearings and adjudication proceedings.
Sec. 154. Litigation authority.
Sec. 155. Relief available.
Sec. 156. Referrals for criminal proceedings.
Sec. 157. Employee protection.
Sec. 158. Effective date.

     Subtitle F--Transfer of Functions and Personnel; Transitional 
                               Provisions

Sec. 161. Transfer of certain functions.
Sec. 162. Designated transfer date.
Sec. 163. Savings provisions.
Sec. 164. Transfer of certain personnel.
Sec. 165. Incidental transfers.
Sec. 166. Interim authority of the Secretary.

                  Subtitle G--Regulatory Improvements

Sec. 171. Collection of deposit account data.
Sec. 172. Small business data collection.
Sec. 173. Annual financial autopsy.

                   Subtitle H--Conforming Amendments

Sec. 181. Amendments to the Inspector General Act of 1978.
Sec. 182. Amendments to the Privacy Act of 1974.
Sec. 183. Amendments to the Alternative Mortgage Transaction Parity Act 
of 1982.
Sec. 184. Amendments to the Consumer Credit Protection Act.
Sec. 185. Amendments to the Expedited Funds Availability Act.
Sec. 186. Amendments to the Federal Deposit Insurance Act.
Sec. 187. Amendments to the Gramm-Leach-Bliley Act.
Sec. 188. Amendments to the Home Mortgage Disclosure Act of 1975.
Sec. 189. Amendments to division D of the Omnibus Appropriations Act, 
2009.
Sec. 190. Amendments to the Homeowners Protection Act of 1998.
Sec. 191. Amendments to the Real Estate Settlement Procedures Act of 
1974.
Sec. 192. Amendments to the Right to Financial Privacy Act of 1978.
Sec. 193. Amendments to the Secure and Fair Enforcement for Mortgage 
Licensing Act of 2008.
Sec. 194. Amendments to the Truth in Savings Act.
Sec. 195. Membership in Financial Literacy and Education Commission.
Sec. 196. Effective date.

       TITLE II--IMPROVEMENTS TO THE FEDERAL TRADE COMMISSION ACT

Sec. 201. Amendments to the Federal Trade Commission Act.

           TITLE I--CONSUMER FINANCIAL PROTECTION COMMISSION

SEC. 1. DEFINITIONS.

  For the purposes of subtitles A through F of this title, the 
following definitions shall apply:
          (1) Affiliate.--The term ``affiliate'' means any person that 
        controls, is controlled by, or is under common control with 
        another person.
          (2) Bank holding company.--The term ``bank holding company'' 
        has the same meaning as in section 2(a) of the Bank Holding 
        Company Act of 1956.
          (3) Board.--Except when used in connection with the term 
        ``Board of Governors'', the term ``Board'' means the Consumer 
        Financial Protection Oversight Board.
          (4) Board of governors.--The term ``Board of Governors'' 
        means the Board of Governors of the Federal Reserve System.
          (5) Business of insurance.--The term ``business of 
        insurance'' means the writing of insurance or the reinsuring of 
        risks by an insurer, including all acts necessary to such 
        writing or reinsuring and the activities relating to the 
        writing of insurance or the reinsuring of risks conducted by 
        persons who act as, or are, officers, directors, agents, or 
        employees of insurers or who are other persons authorized to 
        act on behalf of such persons.
          (6) Chairman.--The term ``Chairman'' means the Chairman of 
        the Commission established under section 112.
          (7) Commission.--The term ``Commission'' means the Consumer 
        Financial Protection Commission established under this Act.
          (8) Consumer.--The term ``consumer'' means an individual or 
        an agent, trustee, or representative acting on behalf of an 
        individual.
          (9) Consumer financial product or service.--The term 
        ``consumer financial product or service'' means any financial 
        product, other than a Federal tax return, or service to be used 
        by a consumer primarily for personal, family, or household 
        purposes.
          (10) Covered person.--
                  (A) In general.--The term ``covered person'' means 
                any person who engages directly or indirectly in a 
                financial activity, in connection with the provision of 
                a consumer financial product or service.
                  (B) Exclusion.--The term ``covered person'' shall not 
                include the Secretary, the Department of the Treasury, 
                any agency or bureau under the jurisdiction of the 
                Secretary, or any person collecting Federal taxes for 
                the United States to the extent such person is acting 
                in such capacity.
          (11) Credit.--The term ``credit'' means the right granted by 
        a person to a consumer to defer payment of a debt, incur debt 
        and defer its payment, or purchase property or services and 
        defer payment for such purchase.
          (12) Credit union.--The term ``credit union'' means a Federal 
        credit union or a State credit union as defined in section 101 
        of the Federal Credit Union Act.
          (13) Deposit.--The term ``deposit''--
                  (A) has the same meaning as in section 3(l) of the 
                Federal Deposit Insurance Act; and
                  (B) includes a share in a member account (as defined 
                in section 101(5) of the Federal Credit Union Act) at a 
                credit union.
          (14) Deposit-taking activity.--The term ``deposit-taking 
        activity'' means--
                  (A) the acceptance of deposits, the maintenance of 
                deposit accounts, or the provision of services related 
                to the acceptance of deposits;
                  (B) the acceptance of money, the provision of other 
                services related to the acceptance of money, or the 
                maintenance of members' share accounts by a credit 
                union; or
                  (C) the receipt of money or its equivalent, as the 
                Commission may determine by regulation or order, 
                received or held by the covered person (or an agent for 
                the person) for the purpose of facilitating a payment 
                or transferring funds or value of funds by a consumer 
                to a third party.
          (15) Designated transfer date.--The term ``designated 
        transfer date'' has the meaning provided in section 162.
          (16) Enumerated consumer laws.--The term ``enumerated 
        consumer laws'' means each of the following:
                  (A) The Alternative Mortgage Transaction Parity Act 
                (12 U.S.C. 3801 et seq.).
                  (B) The Electronic Funds Transfer Act (15 U.S.C. 1693 
                et seq.)
                  (C) The Equal Credit Opportunity Act (15 U.S.C. 1691 
                et seq.).
                  (D) The Fair Credit Reporting Act (15 U.S.C. 1681 et 
                seq.), except with respect to sections 615(e) and 628 
                of such Act.
                  (E) The Fair Debt Collection Practices Act (15 U.S.C. 
                1692 et seq.).
                  (F) Subsections (c), (d), (e), and (f) of section 43 
                of the Federal Deposit Insurance Act (12 U.S.C. 1831t).
                  (G) Sections 502, 503, 504, 505, 506, 507, 508, and 
                509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802 et 
                seq.).
                  (H) The Homeowners Protection Act of 1998.
                  (I) The Home Mortgage Disclosure Act (12 U.S.C. 2801 
                et seq.).
                  (J) The Real Estate Settlement Procedures Act (12 
                U.S.C. 2601 et seq.).
                  (K) The Secure and Fair Enforcement for Mortgage 
                Licensing Act (12 U.S.C. 5101 et seq.).
                  (L) The Truth in Lending Act (15 U.S.C. 1601 et 
                seq.).
                  (M) The Truth in Savings Act (12 U.S.C. 4301 et 
                seq.).
          (17) Federal banking agency.--The term ``Federal banking 
        agency'' means the Board of Governors, the Comptroller of the 
        Currency, the Director of the Office of Thrift Supervision, the 
        Federal Deposit Insurance Corporation, or the National Credit 
        Union Administration and the term ``Federal banking agencies'' 
        means all of such agencies.
          (18) Fair lending.--The term ``fair lending'' means fair, 
        equitable, and nondiscriminatory access to credit for both 
        individuals and communities.
          (19) Financial activity.--The term ``financial activity'' 
        means any of the following activities:
                  (A) Deposit-taking activities.
                  (B) Extending credit and servicing loans, including--
                          (i) acquiring, purchasing, selling, 
                        brokering, or servicing loans or other 
                        extensions of credit;
                          (ii) engaging in any other activity usual in 
                        connection with extensions of credit or 
                        servicing loans, including performing 
                        appraisals of real estate and personal 
                        property.
                  (C) Check cashing and check-guaranty services, 
                including--
                          (i) authorizing a subscribing merchant to 
                        accept personal checks tendered by the 
                        merchant's customers in payment for goods and 
                        services; and
                          (ii) purchasing from a subscribing merchant 
                        validly authorized checks that are subsequently 
                        dishonored.
                  (D) Collecting, analyzing, maintaining, and providing 
                consumer report information or other account 
                information by covered persons, including information 
                relating to the credit history of consumers and 
                providing the information to a credit grantor who is 
                considering a consumer application for credit or who 
                has extended credit to the borrower.
                  (E) Collection of debt related to any consumer 
                financial product or service.
                  (F) Providing real estate settlement services.
                  (G) Leasing personal or real property or acting as 
                agent, broker, or adviser in leasing such property if--
                          (i) the lease is on a non-operating basis;
                          (ii) the initial term of the lease is at 
                        least 90 days; and
                          (iii) in the case of leases involving real 
                        property, at the inception of the initial 
                        lease, the transaction is intended to result in 
                        ownership of the leased property to be 
                        transferred to the lessee, subject to standards 
                        prescribed by the Commission.
                  (H) Acting as an investment adviser to any person 
                (excluding an investment adviser that is a person 
                regulated by the Commodity Futures Trading Commission, 
                the Securities and Exchange Commission, or any 
                securities commission (or any agency or office 
                performing like functions) of any State).
                  (I) Acting as financial adviser to any person 
                (excluding an investment adviser that is a person 
                regulated by the Commodity Futures Trading Commission, 
                the Securities and Exchange Commission, or any 
                securities commission (or any agency or office 
                performing like functions) of any State), including--
                          (I) providing financial and other related 
                        advisory services;
                          (II) providing educational courses, and 
                        instructional materials to consumers on 
                        individual financial management matters;
                          (III) providing credit counseling or tax 
                        planning services to any person (excluding the 
                        preparation of returns, or claims for refund, 
                        of tax imposed by the Internal Revenue Code or 
                        advice with respect to positions taken therein, 
                        or services regulated by the Secretary of the 
                        Treasury under section 330 of title 31, United 
                        States Code); or
                          (IV) providing services to assist a consumer 
                        with debt management or debt settlement, with 
                        modifying the terms of any extension of credit, 
                        or with avoiding foreclosure.
                  (J) For purposes of this title, the following shall 
                not be considered acting as financial adviser:
                          (I) Publishing any bona fide newspaper, news 
                        magazine or business or financial publication 
                        of general and regular circulation, including 
                        publishing market data, news, or data analytics 
                        or investment information or recommendations 
                        that are not tailored to the individual needs 
                        of a particular consumer.
                          (II) Providing advice, analyses, or reports 
                        that do not relate to any securities other than 
                        securities which are direct obligations of or 
                        obligations guaranteed as to principal or 
                        interest by the United States, or securities 
                        issued or guaranteed by corporations in which 
                        the United States has a direct or indirect 
                        interest which shall have been designated by 
                        the Secretary of the Treasury, pursuant to 
                        section 3(a)(12) of the Securities Exchange Act 
                        of 1934, as exempted securities for the 
                        purposes of that Act.
                  (K) Financial data processing by any technological 
                means, including providing data processing, access to 
                or use of databases or facilities, or advice regarding 
                processing or archiving, if the data to be processed, 
                furnished, stored, or archived are financial, banking, 
                or economic, except that it shall not be considered a 
                ``financial activity'' if with respect to financial 
                data processing the person--
                          (i) unknowingly or incidentally transmits, 
                        processes, or stores financial data in a manner 
                        that such data is undifferentiated from other 
                        types of data that the person transmits, 
                        processes, or stores;
                          (ii) does not provide to any consumer a 
                        consumer financial product or service in 
                        connection with or relating to in any manner 
                        financial data processing; and
                          (iii) does not provide a material service to 
                        any covered person in connection with the 
                        provision of a consumer financial product or 
                        service.
                  (L) Money transmitting.
                  (M) Sale, provision or issuance of stored value, 
                except that, in the case of a sale, only if the seller 
                influences the terms or conditions of the stored value 
                provided to the consumer.
                  (N) Acting as a money services business.
                  (O) Acting as a custodian of money or any financial 
                instrument.
                  (P)(i) Any other activity that the Commission 
                defines, by regulation, as a financial activity after 
                finding that--
                                  (I) the activity has, or there is a 
                                substantial likelihood that the 
                                activity will have, a material adverse 
                                impact on the creditworthiness or 
                                financial well being of consumers;
                                  (II) the activity is incidental or 
                                complementary to any other financial 
                                activity regulated by the Commission; 
                                or
                                  (III) the activity is entered into or 
                                conducted as a subterfuge or with a 
                                purpose to evade any requirement under 
                                this title, the enumerated consumer 
                                laws, and the authorities transferred 
                                under subtitles F and H.
                  (ii) For purposes of clause (i)(II), the following 
                activities provided to a covered person shall not be 
                ``incidental or complementary'':
                          (I) Providing information products or 
                        services to a covered person for identity 
                        authentication.
                          (II) Providing information products or 
                        services for fraud or identify theft detection, 
                        prevention, or investigation.
                          (III) Providing document retrieval or 
                        delivery services.
                          (IV) Providing public records information 
                        retrieval.
                          (V) Providing information products or 
                        services for anti-money laundering activities.
        The term ``financial activity'' shall not include the business 
        of insurance, or the provision of electronic data transmission, 
        routing, intermediate or transient storage, or connections to a 
        system or network, where the person providing such services 
        does not select or modify the content of the electronic data, 
        is not the sender or the intended recipient of the data, and 
        such person transmits, routes, stores, or provides connections 
        for electronic data, including financial data, in a manner that 
        such data is undifferentiated from other types of data that 
        such person transmits, routes, stores, or provides connections.
          (20) Financial product or service.--The term ``financial 
        product or service'' means any product or service that, 
        directly or indirectly, results from or is related to engaging 
        in 1 or more financial activities.
          (21) Foreign exchange.--The term ``foreign exchange'' means 
        the exchange, for compensation, of currency of the United 
        States or of a foreign government for currency of another 
        government.
          (22) Insured credit union.--The term ``insured credit union'' 
        has the same meaning as in section 101 of the National Credit 
        Union Act.
          (23) Insured depository institution.--The term ``insured 
        depository institution'' has the same meaning as in section 3 
        of the Federal Deposit Insurance Act.
          (24) Money services business.--The term ``money services 
        business'' means a person that--
                  (A) receives currency, monetary value, or payment 
                instruments for the purpose of exchanging or 
                transmitting the same by any means, including 
                transmission by wire, facsimile, electronic transfer, 
                courier, the Internet, or through bill payment 
                services, or other businesses that facilitate third-
                party transfers within the United States or to or from 
                the United States; or
                  (B) issues payment instruments or stored value.
          (25) Money transmitting.--The term ``money transmitting'' 
        means the receipt by a covered person of currency, monetary 
        value, or payment instruments for the purpose of transmitting 
        the same to any third-party by any means, including 
        transmission by wire, facsimile, electronic transfer, courier, 
        the Internet, or through bill payment services.
          (26) Payment instrument.--The term ``payment instrument'' 
        means a check, draft, warrant, money order, traveler's check, 
        electronic instrument, or other instrument, payment of money, 
        or monetary value (other than currency).
          (27) Person.--The term ``person'' means an individual, 
        partnership, company, corporation, association (incorporated or 
        unincorporated), trust, estate, cooperative organization, or 
        other entity.
          (28) Person regulated by a state insurance regulator.--The 
        term ``person regulated by a State insurance regulator'' means 
        any person who is--
                  (A) engaged in the business of insurance, and
                  (B) subject to regulation by any State insurance 
                regulator,
        but only to the extent that such person acts in such capacity.
          (29) Person regulated by the commodity futures trading 
        commission.--The term ``person regulated by the Commodity 
        Futures Trading Commission'' means any futures commission 
        merchant, commodity trading adviser, commodity pool operator, 
        introducing broker, boards of trade, derivatives clearing 
        organizations, or multilateral clearing organizations to the 
        extent that such person's actions are subject to the 
        jurisdiction of the Commodity Futures Trading Commission under 
        the Commodity Exchange Act and any agent, employee, or 
        contractor acting on behalf of, registered with, or providing 
        services to such person but only to the extent the person, or 
        the employee, agent, or contractor of such person, acts in a 
        registered capacity.
          (30) Person regulated by the securities and exchange 
        commission.--The term ``person regulated by the Securities and 
        Exchange Commission'' means--
                  (A) a broker or dealer that is required to be 
                registered under the Securities Exchange Act of 1934;
                  (B) an investment adviser that is registered under 
                the Investment Advisers Act of 1940;
                  (C) an investment company that is required to be 
                registered under the Investment Company Act of 1940;
                  (D) a national securities exchange that is required 
                to be registered under the Securities Exchange Act of 
                1934;
                  (E) a transfer agent that is required to be 
                registered under the Securities Exchange Act of 1934;
                  (F) a clearing corporation that is required to be 
                registered under the Securities Exchange Act of 1934;
                  (G) any municipal securities dealer that is 
                registered with the Securities and Exchange Commission;
                  (H) any self-regulatory organization that is 
                registered with the Securities and Exchange Commission;
                  (I) any national securities exchange or other entity 
                that is required to be registered under the Securities 
                Exchange Act of 1934; and
                  (J) the Municipal Securities Rulemaking Board,
        and any employee, agent, or contractor acting on behalf of, 
        registered with, or providing services to, any such person, but 
        only to the extent that the person, or the employee agent, or 
        contractor of such person, acts in a registered capacity.
          (31) Provision of a consumer financial product or service.--
        The terms ``provision of a consumer financial product or 
        service'' and ``providing a consumer financial product or 
        service'' mean the advertisement, marketing, solicitation, 
        sale, disclosure, delivery, or account maintenance or servicing 
        of a consumer financial product or service.
          (32) Person that performs income tax preparation activities 
        for consumers.--The term ``person that performs income tax 
        preparation activities for consumers'' means--
                  (A) any tax return preparer (as defined in section 
                7701(a)(36) of the Internal Revenue Code of 1986), 
                regardless of whether compensated, but only to the 
                extent that the person acts in such capacity;
                  (B) any person regulated by the Secretary of the 
                Treasury under section 330 of title 31, United States 
                Code, but only to the extent that the person acts in 
                such capacity; and
                  (C) any authorized IRS e-file Providers (as defined 
                for purposes of section 7216 of the Internal Revenue 
                Code of 1986), but only to the extent that the person 
                acts in such capacity.
          (33) Related person.--
                  (A) In general.--The term ``related person'', when 
                used in connection with a covered person that is not a 
                bank holding company, credit union, depository 
                institution, means--
                          (i) any director, officer, employee charged 
                        with managerial responsibility, or controlling 
                        stockholder of, or agent for, such covered 
                        person;
                          (ii) any shareholder, consultant, joint 
                        venture partner, and any other person as 
                        determined by the Commission (by regulation or 
                        on a case-by-case basis) who materially 
                        participates in the conduct of the affairs of 
                        such covered person; and
                          (iii) any independent contractor (including 
                        any attorney, appraiser, or accountant), with 
                        respect to such covered person, who knowingly 
                        or recklessly participates in any--
                                  (I) violation of any law or 
                                regulation; or
                                  (II) breach of fiduciary duty.
                  (B) Treatment of a related person as a covered 
                person.--Any person who is a related person under 
                subparagraph (A) shall be deemed to be a covered person 
                for all purposes of this title, any enumerated consumer 
                law, and any law for which authorities were transferred 
                by subtitles F and H.
          (34) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
          (35) Service provider.--
                  (A) In general.--The term ``service provider'' means 
                any person who provides a material service to a covered 
                person in the provision of a consumer financial product 
                or service, including a person who--
                          (i) facilitates the design of, or operations 
                        relating to the provision of, the consumer 
                        financial product or service;
                          (ii) has direct interaction with a consumer 
                        (whether in person or via telecommunication 
                        device or other similar technology) regarding 
                        the consumer financial product or service; or
                          (iii) processes transactions relating to the 
                        consumer financial product or service.
                  (B) Exceptions.--The term ``service provider'' shall 
                not apply to a person solely by virtue of such person 
                providing or selling to a covered person--
                          (i) a support service of a type provided to 
                        businesses generally or a similar ministerial 
                        service;
                          (ii) a service that does not materially 
                        affect the terms or conditions of the consumer 
                        financial product or service, its performance 
                        or operation, or the propensity of a consumer 
                        to obtain or use such product or service; or
                          (iii) time or space for an advertisement for 
                        a consumer financial product or service through 
                        print, newspaper, or electronic media.
          (36) State.--The term ``State'' means any State, territory, 
        or possession of the United States, the District of Columbia, 
        Commonwealth of Puerto Rico, Commonwealth of the Northern 
        Mariana Islands, Guam, American Samoa, or the United States 
        Virgin Islands.
          (37) Stored value.--The term ``stored value''--
                  (A) means funds or monetary value represented in any 
                electronic format, whether or not specially encrypted, 
                and stored or capable of storage on electronic media in 
                such a way as to be retrievable and transferred 
                electronically; and
                  (B) includes a prepaid debit card or product (other 
                than a card or product used solely for telephone 
                services) or any other similar product,
        regardless of whether the amount of the funds or monetary value 
        may be increased or reloaded.

              Subtitle A--Establishment of the Commission

SEC. 111. ESTABLISHMENT OF THE CONSUMER FINANCIAL PROTECTION 
                    COMMISSION.

  (a) Commission Established.--There is established the Consumer 
Financial Protection Commission as an independent agency to regulate 
the provision of consumer financial products or services under this 
title, the enumerated consumer laws, and the authorities transferred 
under subtitles F and H.
  (b) Principal Office.--The principal office of the Commission shall 
be located in the city of Washington, District of Columbia, at 1 or 
more sites.

SEC. 112. COMPOSITION OF THE COMMISSION.

  (a) Composition of the Commission.--The Commission shall be composed 
of 5 members who shall be appointed by the President, by and with the 
advice and consent of the Senate--
          (1) from among individuals who are citizens of the United 
        States; and
          (2) who have strong competencies and experiences related to 
        consumer financial protection.
  (b) Affiliation.--With respect to members appointed pursuant to 
subsection (a), not more than 3 shall be members of any one political 
party.
  (c) Chairman of the Commission.--
          (1) Appointment.--From among the members of the Commission, 
        the President shall designate 1 member of the Commission to 
        serve as the Chairman of the Commission.
          (2) Authority.--The Chairman shall be the principal executive 
        officer of the Commission, and shall exercise all of the 
        executive and administrative functions of the Commission, 
        including with respect to--
                  (A) the appointment and supervision of personnel 
                employed under the Commission (other than personnel 
                employed regularly and full time in the immediate 
                offices of commissioners other than the Chairman);
                  (B) the distribution of business among personnel 
                appointed and supervised by the Chairman and among 
                administrative units of the Commission; and
                  (C) the use and expenditure of funds.
          (3) Limitation.--In carrying out any of his functions under 
        the provisions of this subsection the Chairman shall be 
        governed by general policies of the Commission and by such 
        regulatory decisions, findings, and determinations as the 
        Commission may by law be authorized to make.
          (4) Requests or estimates related to appropriations.--
        Requests or estimates for regular, supplemental, or deficiency 
        appropriations on behalf of the Commission may not be submitted 
        by the Chairman without the prior approval of the Commission.
  (d) Terms of Commissioners.--
          (1) In general.--Each member of the Commission, including the 
        Chairman, shall serve for a term of 5 years.
          (2) Removal for cause.--The President may remove any member 
        of the Commission only for inefficiency, neglect of duty, or 
        malfeasance in office.
          (3) Vacancies.--Any member of the Commission appointed to 
        fill a vacancy occurring before the expiration of the term to 
        which that member's predecessor was appointed (including the 
        Chairman) shall be appointed only for the remainder of the 
        term.
          (4) Continuation of service.--Each member of the Commission 
        may continue to serve after the expiration of the term of 
        office to which that member was appointed until a successor has 
        been appointed by the President and confirmed by the Senate, 
        except that a member may not continue to serve more than 1 year 
        after the date on which that member's term would otherwise 
        expire under this subsection.
          (5) Initial appointments staggered.--The members of the 
        Commission (including the Chairman) shall serve staggered 
        terms, which initially shall be established by the President 
        for terms of 1, 2, 3, 4, and 5 years, respectively.
          (6) Other employment.--No Commissioner shall engage in any 
        other business, vocation, or employment.
  (e) No Impairment by Reason of Vacancies.--No vacancy in the members 
of the Commission shall impair the right of the remaining members of 
the Commission to exercise all the powers of the Commission. Three 
members of the Commission shall constitute a quorum for the transaction 
of business, except that if there are only 3 members serving on the 
Commission because of vacancies in the Commission, 2 members of the 
Commission shall constitute a quorum for the transaction of business. 
If there are only 2 members serving on the Commission because of 
vacancies in the Commission, 2 members shall constitute a quorum for 
the 6-month period beginning on the date of the vacancy which caused 
the number of Commission members to decline to 2.
  (f) Seal.--The Commission shall have an official seal.
  (g) Compensation.--
          (1) Chairman.--The Chairman shall receive compensation at the 
        rate prescribed for level I of the Executive Schedule under 
        section 5313 of title 5, United States Code.
          (2) Other members of the commission.--The 4 other members of 
        the Commission shall each receive compensation at the rate 
        prescribed for level II of the Executive Schedule under section 
        5314 of title 5, United States Code.

SEC. 113. CONSUMER FINANCIAL PROTECTION OVERSIGHT BOARD.

  (a) Established.--There is hereby established the Consumer Financial 
Protection Oversight Board as an instrumentality of the United States.
  (b) Duties and Powers.--
          (1) Duty to advise commission.--The Board shall advise the 
        Commission on--
                  (A) the consistency of a proposed regulation of the 
                Commission with prudential, market, or systemic 
                objectives administered by the agencies that comprise 
                the Board;
                  (B) the overall strategies and policies in carrying 
                out the duties of the Commission under this title; and
                  (C) actions the Commission can take to enhance and 
                ensure that all consumers are subject to robust 
                financial protection.
          (2) Limitation on powers.--The Board may not exercise any 
        executive authority, and the Commission may not delegate to the 
        Board any of the functions, powers, or duties of the 
        Commission.
  (c) Composition.--The Board shall be comprised of 7 members as 
follows:
          (1) The Chairman of the Board of Governors.
          (2) The head of the agency responsible for chartering and 
        regulating national banks.
          (3) The Chairperson of the Federal Deposit Insurance 
        Corporation.
          (4) The Chairman of the National Credit Union Administration.
          (5) The Chairman of the Federal Trade Commission.
          (6) The Secretary of Housing and Urban Development.
          (7) The Chairman of the liaison committee of representatives 
        of State agencies to the Financial Institutions Examination 
        Council.
  (d) Representative of Additional Interests.--
          (1) Composition.--Notwithstanding subsection (c), the 
        President, by and with the advice and consent of the Senate, 
        shall appoint 5 additional members of the Board from among 
        experts in the fields of consumer protection, fair lending and 
        civil rights, representatives of depository institutions that 
        primarily serve underserved communities, or representatives of 
        communities that have been significantly impacted by higher-
        priced mortgage loans, as such communities are identified by 
        the Commission through an analysis of data received by reason 
        of the provisions of the Home Mortgage Disclosure Act of 1975 
        or other data on lending patterns.
          (2) Affiliation.--With respect to members appointed pursuant 
        to paragraph (1), not more than 3 shall be members of any one 
        political party.
  (e) Meetings.--
          (1) In general.--The Board shall meet upon notice by the 
        Commission, but in no event shall the Board meet less 
        frequently than once every 3 months.
          (2) Special meetings.--Any member of the Board may, upon 
        giving written notice to the Commission, require a special 
        meeting of the Board.
  (f) Prohibition on Additional Compensation.--Members of the Board may 
not receive additional pay, allowances, or benefits by reason of their 
service on the Board.
  (g) Complaints Related to Required Offering of Specific Financial 
Products or Services.--The Board shall establish procedures to receive 
and analyze complaints from any person claiming that the Commission is 
not in compliance with the requirements under section 140A.

SEC. 114. EXECUTIVE AND ADMINISTRATIVE POWERS.

  The Chairman of the Commission may exercise all executive and 
administrative functions of the Commission, including to--
          (1) establish regulations for conducting the Commission's 
        general business in a manner not inconsistent with this title;
          (2) bind the Commission and enter into contracts;
          (3) direct the establishment of and maintain divisions or 
        other offices within the Commission in order to fulfill the 
        responsibilities of this title, the enumerated consumer laws, 
        and the authorities transferred under subtitles F and H, and to 
        satisfy the requirements of other applicable law;
          (4) coordinate and oversee the operation of all 
        administrative, enforcement, and research activities of the 
        Commission;
          (5) adopt and use a seal;
          (6) determine the character of and the necessity for the 
        Commission's obligations and expenditures, and the manner in 
        which they shall be incurred, allowed, and paid;
          (7) delegate authority, at the Chairman's discretion, to any 
        officer or employee of the Commission to take action under any 
        provision of this title or under other applicable law;
          (8) to implement this title and the Commission's authorities 
        under the enumerated consumer laws and under subtitles F and H 
        through regulations, orders, guidance, interpretations, 
        statements of policy, examinations, and enforcement actions; 
        and
          (9) perform such other functions as may be authorized or 
        required by law.

SEC. 115. ADMINISTRATION.

  (a) Officers.--The Commission shall appoint the following officials:
          (1) A secretary, who shall be charged with maintaining the 
        records of the Commission and performing such other activities 
        as the Commission directs.
          (2) A general counsel, who shall be charged with overseeing 
        the legal affairs of the Commission and performing such other 
        activities as the Commission directs.
          (3) An inspector general, who shall have the authority and 
        functions of an inspector general of a designated Federal 
        entity under the Inspector General Act of 1978 (5 U.S.C. App. 
        3).
          (4) An Ombudsperson, who shall--
                  (A) develop and maintain expertise in and 
                understanding of the law relating to consumer financial 
                products;
                  (B) at the request of a Federal agency or a State 
                agency, and with the prior approval of the Commission, 
                advise such agency with respect to actions that may 
                affect consumers;
                  (C) advise consumers who may have a legitimate 
                potential or actual claim against a Federal agency 
                involving the provision of consumer financial products 
                regarding their rights under this title;
                  (D) identify Federal agency actions that have 
                potential implications for consumers and, if 
                appropriate, and with the prior approval of the 
                Commission, advise the relevant Federal agencies with 
                respect to those implications;
                  (E) provide information to private citizens, civic 
                groups, Federal agencies, State agencies, and other 
                interested parties regarding the rights of those 
                parties under this title;
                  (F) develop, maintain, and provide expertise designed 
                to assist covered persons, especially smaller 
                depository institutions and other smaller entities to 
                comply with regulations and other requirements issued 
                to implement the provisions of this title, and where 
                such assistance for smaller depository institutions 
                shall be provided jointly by the Commission and the 
                appropriate Federal banking agency;
                  (G) develop procedures to assist covered persons, 
                especially smaller depository institutions and other 
                smaller entities, in responding to or challenging 
                actions taken by the Commission to implement the 
                provisions of this title and to ensure that safeguards 
                exist to preserve the confidentiality of covered 
                persons using those procedures; and
                  (H) perform such other duties as the Commission may 
                delegate to the Ombudsperson.
  (b) Personnel.--
          (1) Appointment.--
                  (A) In general.--The Commission may fix the number 
                of, and appoint and direct, all employees of the 
                Commission.
                  (B) Expedited hiring.--The Commission may appoint, 
                without regard to the provisions of sections 3309 
                through 3318, of title 5, United States Code, 
                candidates directly to positions for which public 
                notice has been given.
                  (C) Hiring veterans.--In hiring employees, the 
                Commission shall establish appropriate targets, 
                including timetables, to hire veterans (as defined in 
                paragraphs (1) and (2) of section 2108 of title 5, 
                United States Code) as employees of the Commission. In 
                establishing appropriate targets under this paragraph, 
                the Commission may consider, among other relevant 
                factors, the proportion of veterans hired by Federal 
                agencies with comparable functions or types of 
                occupations and their experiences in hiring veterans.
          (2) Compensation.--
                  (A) Pay.--The Commission shall fix, adjust, and 
                administer the pay for all employees of the Commission 
                without regard to the provisions of chapter 51 or 
                subchapter III of chapter 53 of title 5, United States 
                Code.
                  (B) Benefits.--The Commission may provide additional 
                benefits to Commission employees if the same type of 
                benefits are then being provided by the Board of 
                Governors or, if not then being provided, could be 
                provided by the Board of Governors under applicable 
                provisions of law or regulations.
                  (C) Minimum standard.--The Commission shall at all 
                times provide compensation and benefits to classes of 
                employees that, at a minimum, are equivalent to the 
                compensation and benefits provided by the Board of 
                Governors for the corresponding class of employees in 
                any fiscal year.
  (c) Specific Functional Units.--
          (1) Research.--The Commission shall establish a unit whose 
        functions shall include--
                  (A) conducting research on consumer financial 
                counseling and education, including--
                          (i) on the topics of debt, credit, savings, 
                        financial product usage, and financial 
                        planning;
                          (ii) exploring effective methods, tools, and 
                        approaches; and
                          (iii) identifying ways to incorporate new 
                        technology for the delivery and evaluation of 
                        financial counseling and education efforts;
                  (B) researching, analyzing, and reporting on--
                          (i) current and prospective developments in 
                        markets for consumer financial products or 
                        services, including market areas of alternative 
                        consumer financial products or services with 
                        high growth rates;
                          (ii) consumer awareness, understanding, and 
                        use of disclosures and communications regarding 
                        consumer financial products or services;
                          (iii) consumer awareness and understanding of 
                        costs, risks, and benefits of consumer 
                        financial products or services;
                          (iv) consumer behavior with respect to 
                        consumer financial products or services, 
                        including performance on mortgage loan; and
                          (v) experiences of traditionally underserved 
                        consumers, including un-banked and under-banked 
                        consumers, regarding consumer financial 
                        products or services;
                  (C) identifying priorities for consumer financial 
                education efforts, based on consumer complaints, 
                research or analysis conducted pursuant to subparagraph 
                (A), or other information; and
                  (D) testing and identifying methods of educating 
                consumers to determine which methods are most 
                effective.
          (2) Community affairs.--The Commission shall establish a unit 
        whose functions shall include providing information, guidance, 
        and technical assistance regarding the provision of consumer 
        financial products or services to traditionally underserved 
        consumers and communities.
          (3) Consumer complaints.--
                  (A) In general.--The Commission shall establish a 
                unit whose functions shall include establishing a 
                central database, or utilizing an existing database, 
                for collecting and tracking information on consumer 
                complaints about consumer financial products or 
                services and resolution of complaints.
                  (B) Coordination.--In performing the functions 
                described in subparagraph (A), the Commission shall 
                coordinate with the Federal banking agencies, the 
                Federal Trade Commission, other Federal agencies, and 
                other regulatory agencies or enforcement authorities.
                  (C) Data sharing required.--To the extent permitted 
                by law and the regulations prescribed by the Commission 
                regarding the confidential treatment of information, 
                the Commission shall share data relating to consumer 
                complaints with Federal banking agencies, other Federal 
                agencies, and State regulators. To the extent permitted 
                by law and the regulations prescribed by the Federal 
                banking agencies and other Federal agencies regarding 
                the confidential treatment of information, the Federal 
                banking agencies and other Federal agencies, 
                respectively, shall share data relating to consumer 
                complaints with the Commission.
          (4) Consumer financial education.--
                  (A) In general.--The Commission shall establish a 
                unit to be named the Office of Financial Literacy, 
                whose functions shall include activities designed to 
                facilitate the education of consumers on consumer 
                financial products and services, including through the 
                dissemination of materials to consumers on such topics.
                  (B) Director.--The Office of Financial Literacy shall 
                be headed by a director.
                  (C) Duties.--Such unit shall--
                          (i) develop goals for programs to be provided 
                        by persons that provide consumer financial 
                        education and counseling, including programs 
                        through which such persons--
                                  (I) provide one-on-one financial 
                                counseling;
                                  (II) help individuals understand 
                                basic banking and savings tools;
                                  (III) help individuals understand 
                                their credit history and credit score;
                                  (IV) assist individuals in efforts to 
                                plan for major purchases, reduce their 
                                debt, and improve their financial 
                                stability; and
                                  (V) work with individuals to design 
                                plans for long-term savings;
                          (ii) develop recommendations regarding 
                        effective certification of persons providing 
                        programs, or performing the activities, 
                        described in clause (i), including 
                        recommendations regarding--
                                  (I) certification processes and 
                                standards for certification;
                                  (II) appropriate certifying bodies; 
                                and
                                  (III) mechanisms for funding the 
                                certification processes;
                          (iii) develop a technology tool to collect 
                        data on financial education and counseling 
                        outcomes; and
                          (iv) conduct research to identify effective 
                        methods, tools, technoloy, and strategies to 
                        educate and counsel consumers about personal 
                        finance management, including on the topics of 
                        debt, credit, savings, financial product usage, 
                        and financial planning.
                  (D) Coordination.--Such unit shall coordinate with 
                other units within the Commission in carrying out its 
                functions, including--
                          (i) working with the unit established under 
                        paragraph (2) to--
                                  (I) provide information and resources 
                                to community organizations, nonprofit 
                                organizations, and other entities to 
                                assist in helping educate consumers 
                                about consumer financial products and 
                                services; and
                                  (II) develop a marketing strategy to 
                                promote financial education and one-on-
                                one counseling; and
                          (ii) working with the unit established under 
                        paragraph (1) to conduct research related to 
                        consumer financial education and counseling.
  (d) Single Toll-free Telephone Number for Consumer Complaints and 
Inquiries.--
          (1) Call intake system.--The Consumer Financial Protection 
        Commission shall establish a single, toll-free telephone number 
        for consumer complaints and inquiries concerning institutions 
        regulated by such agencies and a system for collecting and 
        monitoring complaints and, as soon as practicable, a system for 
        routing such calls to the Federal financial institution 
        regulatory agency that primarily supervises the financial 
        institution, or that is otherwise the appropriate Federal 
        agency to address the subject of the complaint or inquiry.
          (2) Routing calls to states.--To the extent practicable, 
        State agencies may receive appropriate call transfers from the 
        system established under paragraph (1) if--
                  (A) the State agency's system has the functional 
                capacity to receive calls routed by the system; and
                  (B) the State agency has satisfied any conditions of 
                participation in the system that the Council, 
                coordinating with State agencies through the 
                chairperson of the State Liaison Committee, may 
                establish.
  (e) Report to the Congress.--Before the end of the 6-month period 
beginning on the date of the enactment of this Act, the Federal 
financial institution regulatory agencies shall submit a report to the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
describing the agencies' efforts to establish--
          (1) a public interagency Web site for directing and referring 
        Internet consumer complaints and inquiries concerning any 
        financial institution to the Consumer Financial Protection 
        Commission for purposes of collecting, monitoring, and 
        responding to such complaints and, where appropriate, a system 
        for referring complaints to the Federal financial institution 
        regulatory agency, other Federal agency, or State agency that 
        is otherwise the appropriate agency to address the subject of 
        the complaint or inquiry; and
          (2) a system to expedite the prompt and effective rerouting 
        of any misdirected consumer complaint or inquiry documents 
        between or among the agencies, with prompt referral of any 
        complaint or inquiry to the appropriate Federal financial 
        institution regulatory agency, and to participating State 
        agencies.
  (f) Office of Fair Lending and Equal Opportunity.--
          (1) Establishment.--Before the end of the 180-day period 
        beginning on the date of the enactment of this Act, the 
        Commission shall establish within the Commission the Office of 
        Fair Lending and Equal Opportunity.
          (2) Functions.-- The Office of Fair Lending and Equal 
        Opportunity shall have such powers and duties as the Commission 
        may delegate the Office which shall include the following 
        functions:
                  (A) Providing oversight and enforcement of Federal 
                laws intended to ensure the fair, equitable, and 
                nondiscriminatory access to credit for both individuals 
                and communities that are enforced by the Commission, 
                including the Equal Credit Opportunity Act and the Home 
                Mortgage Disclosure Act.
                  (B) Coordinating fair lending enforcement efforts of 
                the Commission with other Federal agencies and State 
                regulators, as appropriate, to promote consistent, 
                efficient and effective enforcement of Federal fair 
                lending laws.
                  (C) Working with private industry, fair lending, 
                civil rights, consumer and community advocates on the 
                promotion of fair lending compliance and education.
                  (D) Providing annual reports to the Congress on the 
                Commission's efforts to fulfill its fair lending 
                mandate.
          (3) Administration of office.--There is hereby established 
        the position of Assistant Director of the Commission for Fair 
        Lending and Equal Opportunity who--
                  (A) shall be appointed by the Commission;
                  (B) shall carry out such duties as the Commission may 
                delegate to such Assistant Director; and
                  (C) shall serve as the Director of the Office of Fair 
                Lending and Equal Opportunity.
          (4) Prohibitions on participation in programs with respect to 
        certain indicted organizations.--
                  (A) Prohibition.--The Director of the Office of Fair 
                Lending and Equal Opportunity may not allow a covered 
                organization to participate in any program established 
                by such Director.
                  (B) Covered organization.--In this paragraph, the 
                term ``covered organization'' means any of the 
                following:
                          (i) Any organization that has been indicted 
                        for a violation under any Federal or State law 
                        governing the financing of a campaign for 
                        election for public office or any law governing 
                        the administration of an election for public 
                        office, including a law relating to voter 
                        registration.
                          (ii) Any organization that had its State 
                        corporate charter terminated due to its failure 
                        to comply with Federal or State lobbying 
                        disclosure requirements.
                          (iii) Any organization that has filed a 
                        fraudulent form with any Federal or State 
                        regulatory agency.
                          (iv) Any organization that--
                                  (I) employs any applicable 
                                individual, in a permanent or temporary 
                                capacity;
                                  (II) has under contract or retains 
                                any applicable individual; or
                                  (III) has any applicable individual 
                                acting on the organization's behalf or 
                                with the express or apparent authority 
                                of the organization.
                  (C) Additonal definitions.--In this paragraph:
                          (i) The term ``organization'' includes the 
                        Association of Community Organizations for 
                        Reform Now (in this paragraph referred to as 
                        ``ACORN'') and any ACORN-related affiliate.
                          (ii) The term ``ACORN-related affiliate'' 
                        means any of the following:
                                  (I) Any State chapter of ACORN 
                                registered with the Secretary of 
                                State's office in that State.
                                  (II) Any organization that shares 
                                directors, employees, or independent 
                                contractors with ACORN.
                                  (III) Any organization that has a 
                                financial stake in ACORN.
                                  (IV) Any organization whose finances, 
                                whether federally funded, donor-funded, 
                                or raised through organizational goods 
                                and services, are shared or controlled 
                                by ACORN.
                          (iii) The term ``applicable individual'' 
                        means an individual who has been indicted for a 
                        violation under Federal or State law relating 
                        to an election for Federal or State office.
                  (D) Revision of federal acquisition regulation.--The 
                Federal Acquisition Regulation shall be revised to 
                carry out the provisions of this paragraph relating to 
                contracts.
                  (E) Severability.--If any provision of this section 
                or any application of such provision to any person or 
                circumstance is held to be unconstitutional, the 
                remainder of this section and the application of the 
                provision to any other person or circumstance shall not 
                be affected.

SEC. 116. CONSUMER ADVISORY BOARD.

  (a) Establishment Required.--The Commission shall establish a 
Consumer Advisory Board to advise and consult with the Commission in 
the exercise of the functions of the Commission under this title, the 
enumerated consumer laws, and to provide information on emerging 
practices in the consumer financial products or services industry.
  (b) Membership.--
          (1) In general.--In appointing the members of the Consumer 
        Advisory Board, the Commission shall seek--
                  (A) to assemble experts in financial services, 
                community development, fair lending and civil rights, 
                consumer protection, and consumer financial products or 
                services; and
                  (B) to represent the interests of covered persons and 
                consumers.
          (2) Prohibition on membership with respect to certain 
        indicted organizations.--The Commission may not appoint an 
        employee of a covered organization (as defined in section 
        115(f)(4)(B)) to the Consumer Advisory Board.
  (c) Political Affiliation.--Not more than 1 more than half of the 
members of the Consumer Advisory Board may be members of the same 
political party.
  (d) Meetings.--The Consumer Advisory Board shall meet from time to 
time at the call of the Chairman of the Commission, but, at a minimum, 
shall meet at least twice in each year.
  (e) Compensation and Travel Expenses.--Members of the Consumer 
Advisory Board who are not full-time employees of the United States 
shall--
          (1) be entitled to receive compensation at a rate fixed by 
        the Commission while attending meetings of the Consumer 
        Advisory Board, including travel time; and
          (2) be allowed travel expenses, including transportation and 
        subsistence, while away from their homes or regular places of 
        business.

SEC. 117. COORDINATION.

  (a) Coordination With Other Federal Agencies and State Regulators.--
The Commission shall coordinate with the Securities and Exchange 
Commission, the Commodity Futures Trading Commission, the Secretary of 
the Treasury, the Federal Trade Commission, and other Federal agencies 
and State regulators, as appropriate, to promote consistent regulatory 
treatment of, and enforcement related to, consumer and investment 
products, services, and laws.
  (b) Coordination of Consumer Education Initiatives.--
          (1) In general.--The Commission shall coordinate with each 
        agency that is a member of the Financial Literacy and Education 
        Commission established by the Financial Literacy and Education 
        Improvement Act (20 U.S.C. 9701 et seq.) to assist each agency 
        in enhancing its existing financial literacy and education 
        initiatives to better achieve the goals in paragraph (2) and to 
        ensure the consistency of such initiatives across Federal 
        agencies.
          (2) Goals of coordination.--In coordinating with the agencies 
        described in paragraph (1), the Commission shall seek to 
        improve efforts to educate consumers about financial matters 
        generally, the management of their own financial affairs, and 
        their judgments about the appropriateness of certain financial 
        products.
  (c) Coordination.--The Commission may coordinate investigations, 
compliance examinations, information sharing, and related activities in 
support of activities undertaken pursuant to the Fair Housing Act by 
other Federal agencies.

SEC. 118. REPORTS TO THE CONGRESS.

  (a) Reports Required.--The Commission shall prepare and submit to the 
President and the appropriate committees of the Congress a report at 
the beginning of each regular session of the Congress, beginning with 
the session following the designated transfer date.
  (b) Contents.--The reports required by subsection (a) shall include--
          (1) a list of the significant regulations and orders adopted 
        by the Commission, as well as other significant initiatives 
        conducted by the Commission, during the preceding year and the 
        Commission's plan for regulations, orders, or other initiatives 
        to be undertaken during the upcoming period;
          (2) an analysis of complaints about consumer financial 
        products or services that the Commission has received and 
        collected during the preceding year;
          (3) a list, with a brief statement of the issues, of the 
        public supervisory and enforcement actions to which the 
        Commission is a party (including adjudication proceedings 
        conducted under subtitle E) during the preceding year;
          (4) the actions taken regarding regulations, orders, and 
        supervisory actions with respect to covered persons which are 
        not credit unions or depository institutions, including 
        descriptions of the types of such covered persons, financial 
        activities, and consumer financial products or services 
        affected by such regulations, orders, and supervisory actions;
          (5) an appraisal of significant actions, including actions 
        under Federal or State law, by State attorneys general or State 
        regulators relating to this title, the authorities transferred 
        under subtitles F and H, and the enumerated consumer laws;
          (6) an analysis of the Commission's efforts to fulfill the 
        fair lending mission of the Commission; and
          (7) an appraisal of the regulatory and legal difficulties 
        encountered by the Commission in carrying out the mission and 
        duties of the Commission with respect to consumer protection, 
        including a description of--
                  (A) the difficulties and hardships encountered with 
                respect to coordinating with other Federal and State 
                government entities;
                  (B) the regulatory and enforcement limitations placed 
                on the Commission by this Act;
                  (C) the practices of persons, covered and uncovered 
                under this Act, that allow such persons to harm 
                consumers and escape regulation or enforcement, 
                including any trends identified; and
                  (D) legislative and administrative recommendations 
                with respect to solving or alleviating identified 
                difficulties.
  (c) Appearance Before Congress.--The Commissioners shall appear 
before the appropriate committees of Congress as requested to--
          (1) discuss the efforts, activities, objectives, and plans of 
        the Commission; and
          (2) discuss and answer questions concerning the report 
        submitted under subsection (a).

SEC. 118A. GAO SMALL BUSINESS STUDIES.

  (a) Studies Required.--Not later than the end of the 3-year period 
beginning on the designated transfer date, and also 3 years thereafter, 
the Comptroller General of the United States shall carry out a study to 
examine the effects that regulations issued by the Commission have on 
small businesses.
  (b) Report.--At the conclusion of each study required under 
subsection (a), the Comptroller General of the United States shall 
issue a report to the Congress containing the findings and 
determinations made by the Comptroller General in carrying out such 
study.

SEC. 119. FUNDING; FEES AND ASSESSMENTS; PENALTIES AND FINES.

  (a) Transfer of Funds From the Board of Governors.--
          (1) Transfer required.--Each year, beginning on the 
        designated transfer date, the Board of Governors shall transfer 
        funds in an amount equaling 10 percent of the Federal Reserve 
        System's total system expenses (as reported in the Budget 
        Review of the Board of Governors most recent Annual Report to 
        Congress) to the Commission for the purposes of carrying out 
        the authorities granted in this title, under the enumerated 
        consumer laws, and transferred under subtitles F and H.
          (2) Procedures.--The Board of Governors, in consultation with 
        the Commission, shall make appropriate arrangements to transfer 
        funds to the Commission in accordance with this subsection.
  (b) Fees and Assessments.--
          (1) Assessment required.--
                  (A) In general.--Taking into account such other sums 
                available to the Commission and subject to the 
                provisions of this subsection and subsection (d), the 
                Commission shall assess fees on covered persons to meet 
                the Commission's expenses for carrying out the duties 
                and responsibilities of the Commission, including 
                supervising such covered persons.
                  (B) Basis for assessment.--The Commission shall 
                assess fees on covered persons pursuant to this 
                subsection based on the size and complexity of the 
                covered person, and the compliance record of the 
                covered person under the enumerated consumer laws, the 
                laws and authorities transferred under subtitles F and 
                H, and this title.
          (2) Regulations.--
                  (A) In general.--The Commission shall prescribe 
                regulations to govern the imposition and collection of 
                fees and assessments.
                  (B) Factors required to be addressed.--Regulations 
                prescribed by the Commission under this subsection 
                shall specify and define--
                          (i) the basis of fees or assessments (such as 
                        the outstanding number of consumer credit 
                        accounts, off-balance sheet receivables 
                        attributable to the covered person, total 
                        consolidated assets, total assets under 
                        management, or volume of consumer financial 
                        transactions or use of service providers);
                          (ii) the amount and frequency of fees or 
                        assessments; and
                          (iii) such other factors that the Commission 
                        determines are appropriate, which shall include 
                        a covered person's compliance record under the 
                        enumerated consumer laws, the authorities 
                        transferred under subtitles F and H, and this 
                        title.
          (3) Assessments on depository institution covered persons.--
                  (A) Depository institution covered person defined.--
                For purposes of this section, the term ``depository 
                institution covered person'' means a covered person 
                that is an insured depository institution or credit 
                union.
                  (B) Assessments.--
                          (i) Fees required.--The Commission shall 
                        assess fees for supervision as are appropriate 
                        on depository institution covered persons, 
                        taking into account the size and complexity of 
                        the covered person, and the compliance record 
                        of the covered person under the enumerated 
                        consumer laws, the laws and authorities 
                        transferred under subtitles F and H, and this 
                        title.
                          (ii) Limitation on certain fees.--The 
                        Commission shall not assess examination fees on 
                        an institution referred to in section 123(a), 
                        or an institution whose examination 
                        responsibilities have been delegated to an 
                        appropriate agency, pursuant to section 
                        122(c)(10).
                          (iii) Basis for fee amounts.--Fees assessed 
                        by the Commission under this subparagraph may 
                        be established at levels necessary to meet the 
                        Commission's expenses for carrying out the 
                        duties and responsibilities of the Commission 
                        under this title with regard to depository 
                        institution covered persons.
                  (C) Coordination during implementation period.--The 
                Commission and the agencies responsible for chartering 
                and or supervising depository institution covered 
                persons shall coordinate on the levels of fees assessed 
                on depository institution covered persons under this 
                paragraph, so that levels of assessments under this 
                subparagraph combined with levels of assessments by 
                agencies responsible for chartering and or supervising 
                depository institution covered persons shall be no more 
                than the assessments such depository institution 
                covered person was required to pay for the 12-month 
                period ending on December 31, 2009.
                  (D) Marginal assessment rate.--
                          (i) In general.--In setting assessment rates 
                        for depository institution covered persons, the 
                        Commission shall not impose assessments that 
                        result in higher marginal assessment rates for 
                        depository institution covered persons with 
                        assets of less than $25,000,000,000 than the 
                        marginal rates for depository institutions 
                        covered persons with assets that exceed that 
                        amount.
                          (ii) Rule of construction.-- Clause (i) shall 
                        not be construed as limiting or impairing the 
                        authority of the Commission to set assessments 
                        that would result in higher marginal assessment 
                        rates on the larger depository institution 
                        covered persons.
                  (E) Limitations on assessments.--
                          (i) Assessments for administrative costs.--
                        Notwithstanding any provision in this title, no 
                        depository institution covered person shall be 
                        charged an assessment to be used for the 
                        supervision, examination, enforcement or 
                        regulation by the Commission of nondepository 
                        covered persons.
                          (ii) Amounts paid for consumer compliance 
                        supervision.--Notwithstanding any provision in 
                        this title, no depository institution covered 
                        person shall pay more for consumer compliance 
                        supervision than it paid before the date of 
                        enactment of this Act.
          (4) Assessments on nondepository covered persons.--
                  (A) Nondepository covered person defined.--For 
                purposes of this section, the term ``nondepository 
                covered person''--
                          (i) means a covered person that is not a 
                        credit union or insured depository institution; 
                        and
                          (ii) includes any bank holding company.
                  (B) Assessments.--
                          (i) Fees required.--The Commission shall 
                        assess fees for registration, examination, and 
                        supervision of nondepository covered persons.
                          (ii) Basis for fee amounts.-- Fees assessed 
                        by the Commission under this subparagraph may 
                        be established at levels necessary to meet the 
                        Commission's expenses for carrying out the 
                        duties and responsibilities of the Commission, 
                        including supervising such covered persons, 
                        taking into account such other sums available 
                        to the Commission.
                          (iii) Registration fee minimums.--
                        Registration fees imposed on a nondepository 
                        covered person under this paragraph shall, at a 
                        minimum, be imposed on such covered person at 
                        the time the person registers (or periodically 
                        renews any such registration) with the 
                        Commission, in accordance with regulations 
                        prescribed by the Commission.
                  (C) Nondepository covered person assessment not less 
                than for depository covered persons.--Assessment rates 
                levied by the Commission under this section on a 
                nondepository institution covered persons shall be no 
                less than assessments levied by the Commission under 
                this section on a depository institution covered person 
                with similar characteristics.
  (c) Authorization of Appropriations.--
          (1) In general.--For the purposes of carrying out the 
        authorities granted in this title, under the enumerated 
        consumer laws, and the laws and authorities transferred under 
        subtitles F and H, there are authorized to be appropriated to 
        the Commission such sums as may be necessary for any fiscal 
        year.
          (2) Apportionment.--Notwithstanding any other provision of 
        law, such amounts shall be subject to apportionment under 
        section 1517 of title 31, United States Code, and restrictions 
        that generally apply to the use of appropriated funds in title 
        31, United States Code, and other laws.
          (3) Other available funds taken into account.--Sums 
        appropriated under this subsection shall take into account such 
        other sums available to the Commission under this section.
  (d) Consumer Financial Protection Commission Depository Institution 
Fund.--
          (1) Establishment.--
                  (A) In general.--There is established in the Treasury 
                a separate fund to be known as the ``Consumer Financial 
                Protection Commission Depository Institution Fund'' 
                (hereafter in this section referred to as the ``CFPA 
                Depository Fund'').
                  (B) Amounts in fund not available for certain 
                purposes.--Other than pursuant to subsection (f), 
                amounts on deposit in the CFPA Depository Fund shall 
                not be used in the supervision and examination of 
                nondepository institution covered persons.
          (2) All transferred funds deposited.--All amounts transferred 
        to the Commission under subsection (a) shall be deposited into 
        the CFPA Depository Fund.
          (3) All applicable supervisory fees and assessments 
        deposited.--The Commission shall deposit all amounts received 
        from assessments under subsection (b)(3) in the CFPA Depository 
        Fund.
  (e) Consumer Financial Protection Commission Nondepository 
Institution Fund.--
          (1) Establishment.--
                  (A) In general.--There is established in the Treasury 
                a separate fund called the Consumer Financial 
                Protection Commission Nondepository Institution Fund 
                (hereafter in this section referred to as the ``CFPA 
                Nondepository Fund'').
                  (B) Amounts in fund not available for certain 
                purposes.--Other than pursuant to subsection (f), 
                amounts on deposit in the CFPA Nondepository Fund shall 
                not be used for the supervision and examination of 
                depository institution covered persons.
          (2) All applicable supervisory fees and assessments 
        deposited.--The Commission shall deposit all amounts received 
        from assessments under subsection (b)(4) in the CFPA 
        Nondepository Fund.
  (f) General Provisions Relating to Funds.--
          (1) Maintenance of funds.--
                  (A) Commission funds maintained by treasury.--The 
                Consumer Financial Protection Commission Depository 
                Institution Fund established under subsection (d) and 
                the Consumer Financial Protection Commission 
                Nondepository Institution Fund established under 
                subsection (e) shall each be--
                          (i) maintained and administered by the 
                        Secretary; and
                          (ii) maintained separately and not 
                        commingled.
                  (B) Commission's authority.--Any provision of this 
                Act forbidding the commingling or use of the CFPA 
                Depository Fund and the CFPA Nondepository Fund shall 
                not be construed as limiting or impairing the authority 
                of the Commission to use the same facilities and 
                resources in the course of conducting supervisory and 
                regulatory functions with respect to depository 
                institutions and nondepository institutions, or to 
                integrate such functions.
                  (C) Accounting requirements.--
                          (i) Accounting for use of facilities and 
                        resources.--The Commission shall keep a full 
                        and complete accounting of all costs and 
                        expenses associated with the use of any 
                        facility or resource used in the course of any 
                        function specified in subparagraph (B) and 
                        shall allocate, in the manner provided in 
                        subparagraph (D), any such costs and expenses 
                        incurred by the Commission--
                                  (I) with respect to depository 
                                institution covered persons, to the 
                                CFPA Depository Fund; and
                                  (II) with respect to nondepository 
                                covered persons, to the CFPA 
                                Nondepository fund.
                  (D) Allocation of administrative expenses.--Any 
                personnel, administrative, or other overhead expense of 
                the Commission shall be allocated--
                          (i) fully to the CFPA Depository Fund if the 
                        expense was incurred directly as a result of 
                        the Commission's responsibilities solely with 
                        respect to depository institution covered 
                        persons;
                          (ii) fully to the CFPA Nondepository Fund, if 
                        the expense was incurred directly as a result 
                        of the Commission's responsibilities solely 
                        with respect to nondepository covered persons;
                          (iii) between the CFPA Depository Fund and 
                        the CFPA Nondepository Fund, in amounts 
                        reflecting the relative degree to which the 
                        expense was incurred as a result of the 
                        activities of depository institution covered 
                        persons, and nondepository covered persons; and
                          (iv) if the Commission is unable to make a 
                        complete allocation under clause (i), (ii), or 
                        (iii), between the CFPA Depository Fund and the 
                        CFPA Nondepository Fund, in amounts reflecting 
                        the relative proportion that, as of the end of 
                        the preceding year--
                                  (I) the aggregate assets of all 
                                depository institution covered persons 
                                bears to the aggregate assets of all 
                                covered persons; and
                                  (II) the aggregate assets of all 
                                nondepository covered persons bears to 
                                the aggregate assets of all covered 
                                persons.
                  (E) Commission fund.--The ``Commission fund'' means 
                the Consumer Financial Protection Commission Depository 
                Institution Fund established under subsection (d), and, 
                the Consumer Financial Protection Commission 
                Nondepository Institution Fund established under 
                subsection (e), and the Consumer Financial Protection 
                Commission Civil Penalty Fund established under 
                subsection (g).
          (2) Investment.--
                  (A) Amounts in funds may be invested.--The Commission 
                may request the Secretary to invest the portion of any 
                Commission fund that, in the Commission's judgment, is 
                not required to meet the current needs of such fund.
                  (B) Eligible investments.--Investments pursuant to 
                subparagraph (A) shall be made by the Secretary in 
                obligations of the United States or obligations that 
                are guaranteed as to principal and interest by the 
                United States, with maturities suitable to the needs of 
                the Commission fund involved, as determined by the 
                Commission.
                  (C) Interest and proceeds credited.--The interest on, 
                and the proceeds from the sale or redemption of, any 
                obligations held in the respective Commission Fund 
                shall be credited to and form a part of the respective 
                Commission Fund.
          (3) Use of funds.--Funds obtained by, transferred to, or 
        credited to any Commission fund shall be immediately available 
        to the Commission, and remain available until expended, to pay 
        the expenses of the Commission in carrying out the duties and 
        responsibilities of the Commission including the payment of 
        compensation of the officers and employees of the Commission.
          (4) Fees, assessments and other funds not government funds.--
        Funds obtained by or transferred to any Commission fund shall 
        not be construed to be Government funds or appropriated monies.
          (5) Amounts not subject to apportionment.--Notwithstanding 
        any other provision of law, amounts in any Commission fund 
        shall not be subject to apportionment for purposes of chapter 
        15 of title 31, United States Code, or under any other 
        authority.
  (g) Penalties and Fines.--
          (1) Establishment of victims relief fund.--There is 
        established in the Treasury of the United States a fund to be 
        known as the ``Consumer Financial Protection Commission Civil 
        Penalty Fund'' (hereafter in this section referred to as the 
        ``Civil Penalty Fund'').
          (2) Deposits.-- If the Commission obtains a civil penalty 
        against any person in any judicial or administrative action 
        under this title, any law or authority transferred under 
        subtitles F and H, or any enumerated consumer law, the 
        Commission shall deposit into the Civil Penalty Fund the amount 
        of the penalty collected.
          (3) Payment to victims.--Amounts in the Civil Penalty Fund 
        shall be available to the Commission, without fiscal year 
        limitation, for payments to the victims of activities for which 
        civil penalties have been imposed under this title, the law and 
        authorities transferred under subtitles F and H, or any 
        enumerated consumer law.

SEC. 120. AMENDMENTS RELATING TO OTHER ADMINISTRATIVE PROVISIONS.

  (a) Act of October 28, 1974.--Section 111 of Public Law 93-495 (12 
U.S.C. 250) is amended by inserting ``the Consumer Financial Protection 
Commission,'' after ``Federal Deposit Insurance Corporation,''.
  (b) Paperwork Reduction Act.--Section 2(5) of the Paperwork Reduction 
Act (44 U.S.C. 3502(5)) by inserting ``the Consumer Financial 
Protection Commission,'' after ``the Securities and Exchange 
Commission,''.

SEC. 120A. EFFECTIVE DATE.

  This subtitle shall take effect on the date of the enactment of this 
Act.

              Subtitle B--General Powers of the Commission

SEC. 121. MANDATE AND OBJECTIVES.

  (a) Mandate.--The Commission shall seek to promote transparency, 
simplicity, fairness, accountability, and equal access in the market 
for consumer financial products or services.
  (b) Objectives.--The Commission may exercise the authorities granted 
in this title, in the enumerated consumer laws, and transferred under 
subtitles F and H for the purposes of ensuring that, with respect to 
consumer financial products or services--
          (1) consumers have and can use the information they need to 
        make responsible decisions about consumer financial products or 
        services;
          (2) consumers are protected from abuse, unfairness, 
        deception, and discrimination;
          (3) markets for consumer financial products or services 
        operate fairly and efficiently with ample room for sustainable 
        growth and innovation; and
          (4) traditionally underserved consumers and communities have 
        equal access to responsible financial services.

SEC. 122. AUTHORITIES.

  (a) In General.--The Commission may exercise the authorities granted 
in this title, in the enumerated consumer laws, and transferred under 
subtitles F and H, to administer, enforce, and otherwise implement the 
provisions of this title, the authorities transferred in subtitles F 
and H, and the enumerated consumer laws.
  (b) Rulemaking, Orders, and Guidance.--
          (1) In general.--The Commission may prescribe regulations and 
        issue orders and guidance as may be necessary or appropriate to 
        enable it to administer and carry out the purposes and 
        objectives of this title, the authorities transferred under 
        subtitles F and H, and the enumerated consumer laws, and to 
        prevent evasions of this title, any such authority, and any 
        such law.
          (2) Standards for rulemaking.--In prescribing a regulation 
        under this title or pursuant to the authorities transferred 
        under subtitles F and H or the enumerated consumer laws, the 
        Commission shall--
                  (A) consider the potential benefits and costs to 
                consumers and covered persons, including the potential 
                reduction of consumers' access to consumer financial 
                products or services, resulting from such regulation; 
                and
                  (B) consult with the Federal banking agencies, State 
                bank supervisors, the Federal Trade Commission, or 
                other Federal agencies, as appropriate, regarding the 
                consistency of a proposed regulation with prudential, 
                consumer protection, civil rights, market, or systemic 
                objectives administered by such agencies or 
                supervisors.
          (3) Exemptions.--
                  (A) In general.--The Commission, by regulation or 
                order, may conditionally or unconditionally exempt any 
                covered person, service provider, or any consumer 
                financial product or service or any class of covered 
                persons, class of service providers, or consumer 
                financial products or services, from any provision of 
                this title, any enumerated consumer law, or from any 
                regulation under any such provision or law, as the 
                Commission deems necessary or appropriate to carry out 
                the purposes and objectives of this title taking into 
                consideration the factors in subparagraph (B).
                  (B) Factors.--In issuing an exemption by regulation 
                or order as permitted in subparagraph (A), the 
                Commission shall as appropriate take into consideration 
                the following:
                          (i) The total assets of the covered person.
                          (ii) The volume of transactions involving 
                        consumer financial products or services in 
                        which the covered person engages.
                          (iii) The extent to which the covered person 
                        engages in 1 or more financial activities.
                          (iv) Existing laws or regulations which are 
                        applicable to the consumer financial product or 
                        service and the extent to which such laws or 
                        regulations provide consumers with adequate 
                        protections.
                  (C) Rule of construction.--No provision of this 
                section shall be construed as altering, amending, or 
                affecting any authority under sections 304(a), 304(i), 
                305(a), and 306(b) of the Home Mortgage Disclosure Act 
                of 1975 and sections 703(a)(1), 703(a)(2), 703(a)(3), 
                705(f), and 705(g) of the Equal Credit Opportunity Act 
                for determining whether a covered person should be 
                provided an exemption.
  (c) Examinations and Reports.--
          (1) In general.--Except as provided under section 123, the 
        Commission may on a periodic basis examine a covered person or 
        service provider, with respect to any consumer financial 
        product or service, for purposes of ensuring compliance with 
        the requirements of this title, the enumerated consumer laws, 
        and any regulations prescribed by the Commission under this 
        title or pursuant to the authorities transferred under 
        subtitles F and H, and enforcing compliance with such 
        requirements.
          (2) Examination program.--The Commission shall exercise any 
        authority under paragraph (1) in a manner designed to ensure 
        that such authorities are exercised with respect to covered 
        persons or service providers, without regard to charter or 
        corporate form, based on the Commission's assessment of the 
        risks posed to consumers in the relevant product markets and 
        geographic markets, and taking into consideration, as 
        applicable, the following factors:
                  (A) The asset size of the covered persons.
                  (B) The volume of transactions involving consumer 
                financial products or services in which the covered 
                persons engage.
                  (C) The risks to consumers created by the provision 
                of such consumer financial products or services.
                  (D) In the case of State-chartered institutions, the 
                extent to which such institutions are subject to 
                oversight by State authorities for consumer protection.
          (3) Coordination.--The Commission shall coordinate its 
        supervisory activities with the supervisory activities 
        conducted by the Federal banking agencies and the State bank 
        supervisors, including establishing their respective schedules 
        for examining covered persons and requirements regarding 
        reports to be submitted by covered persons.
          (4) Reports.--The Commission may require reports from a 
        covered person for purposes of ensuring compliance with the 
        requirements of this title, the enumerated consumers laws, and 
        any regulation prescribed by the Commission under this title or 
        pursuant to the authorities transferred under subtitles F and 
        H, and enforcing compliance with such requirements.
          (5) Content of reports.--The reports authorized in paragraph 
        (4) may include such information as necessary to keep the 
        Commission informed as to--
                  (A) the compliance systems or procedures of the 
                covered person or any affiliate thereof, with 
                applicable provisions of this title or any other law 
                that the Commission has jurisdiction to enforce; and
                  (B) matters related to the provision of consumer 
                financial products or services including the servicing 
                or maintenance of accounts or extensions of credit.
          (6) Use of existing reports.--In general, the Commission 
        shall, to the fullest extent possible, use--
                  (A) reports that a covered person, or any affiliate 
                thereof, or any service provider to such covered person 
                or affiliate, has provided or been required to provide 
                to a Federal or State agency; and
                  (B) information that has been reported publicly.
          (7) Access by the commission to reports of other 
        regulators.--
                  (A) Examination and financial condition reports.--
                Upon providing reasonable assurances of 
                confidentiality, the Commission shall have access to 
                any report of examination or financial condition, 
                including a report containing data regarding consumer 
                complaints, made by a Federal banking agency or other 
                Federal agency having supervision of a covered person, 
                or a service provider, (other than returns and return 
                information described in section 6103 of the Internal 
                Revenue Code of 1986) and to all revisions made to any 
                such report.
                  (B) Provision of other reports to commission.--In 
                addition to the reports described in subparagraph (A), 
                a Federal banking agency may, in its discretion, 
                furnish to the Commission any other report or other 
                confidential supervisory information concerning any 
                insured depository institution, any credit union, or 
                other entity examined by such agency under authority of 
                any Federal law.
          (8) Access by other regulators to reports of the 
        commission.--
                  (A) Examination reports.--Upon providing reasonable 
                assurances of confidentiality, a Federal banking 
                agency, a State regulator, or any other Federal agency 
                having supervision of a covered person shall have 
                access to any report of examination made by the 
                Commission with respect to the covered person or 
                service provider, and to all revisions made to any such 
                report.
                  (B) Provision of other reports to other regulators.--
                In addition to the reports described in subparagraph 
                (A), the Commission may, in the discretion of the 
                Commission, furnish to a Federal banking agency any 
                other report or other confidential supervisory 
                information concerning any insured depository 
                institution, any credit union, or other entity examined 
                by the Commission under authority of any Federal law.
          (9) Preservation of authority.--No provision in paragraph (3) 
        shall be construed as preventing the Commission from conducting 
        an examination authorized by this title or under the 
        authorities transferred under subtitles F and H or pursuant to 
        any enumerated consumer law. No provision of this title shall 
        be construed as limiting the authority of the Commission to 
        require reports from a covered person, as permitted under 
        paragraph (1), regarding information owned or under the control 
        of the covered person, regardless of whether such information 
        is maintained, stored, or processed by another person.
          (10) Delegation.--
                  (A) In general.--The Commission may delegate its 
                examination authorities under this title to any 
                appropriate agency, as defined in section 123, for any 
                insured depository institution or insured credit union 
                that is not subject to section 123 upon a petition by 
                an appropriate agency.
                  (B) Standard for delegation.--The Commission shall 
                provide such delegation if, in the Commission's sole 
                discretion, the Commission determines that--
                          (i) the delegation is consistent with the 
                        public interest;
                          (ii) the appropriate agency is capable of 
                        enforcing compliance with this Act, and with 
                        any regulation prescribed under this Act; and
                          (iii) such capability is comparable to or 
                        superior to the capability of the Commission, 
                        in terms of expertise, demonstrated commitment, 
                        and overall effectiveness, in enforcing such 
                        compliance.
                  (C) Effect of delegation.--The insured depository 
                institution or insured credit union shall be subject to 
                the examination process described in section 123(b).
                  (D) No effect on enforcement.--The Commission's 
                delegation authority under this paragraph shall not 
                apply to the Commission's enforcement responsibilities 
                under subsection (e).
          (11) Reports of tax law noncompliance.--The Commission shall 
        provide the Commissioner of Internal Revenue with any report of 
        examination or related information identifying possible tax law 
        noncompliance.
  (d) Exclusive Rulemaking and Examination Authority.--Notwithstanding 
any other provision of Federal law other than section 123 and 
subsections (f) and (h), to the extent that a Federal law authorizes 
the Commission and another Federal agency to prescribe regulations, 
issue guidance, conduct examinations, or require reports under that law 
for purposes of assuring compliance with this title, any enumerated 
consumer law, the laws for which authorities were transferred under 
subtitles F and H, and any regulations prescribed under this title or 
pursuant to any such authority, the Commission shall have the exclusive 
authority to prescribe regulations, issue guidance, conduct 
examinations, require reports, or issue exemptions with regard to any 
person subject to that law and with respect to any activity regulated 
under any enumerated consumer law.
  (e) Primary Enforcement Authority.--
          (1) The commission to have primary enforcement authority.--To 
        the extent that a Federal law authorizes the Commission and 
        another Federal agency to enforce a provision of a law, the 
        Commission shall have primary enforcement authority to enforce 
        the provision of that Federal law with respect to any person in 
        accordance with this subsection.
          (2) Coordination with federal trade commission.--
                  (A) Notice.--If the Federal Trade Commission is 
                authorized to enforce any Federal law described in 
                paragraph (1), or a regulation prescribed under any 
                such Federal law, the Federal Trade Commission shall 
                serve written notice to the Commission of any 
                enforcement action prior to initiating such an 
                enforcement action, except that if the Federal Trade 
                Commission determines that prior notice is not 
                feasible, the Commission may provide notice immediately 
                upon initiating such enforcement action.
                  (B) Intervention by the commission.--Upon receiving 
                any notice under subparagraph (A) with respect to an 
                enforcement action, the Commission may intervene in 
                such enforcement action and upon intervening--
                          (i) be heard on all matters arising in such 
                        enforcement action; and
                          (ii) file petitions for appeal in such 
                        enforcement action.
                  (C) Pendency of commission action.--Whenever a civil 
                action has been instituted by or on behalf of the 
                Commission for any violation of any Federal law 
                described in paragraph (1), or a regulation prescribed 
                under any such Federal law, the Federal Trade 
                Commission may not, during the pendency of that action 
                instituted by or on behalf of the Commission, institute 
                a civil action under such law or regulation against any 
                defendant named in the Commission complaint in such 
                action for any violation alleged in the Commission 
                complaint.
                  (D) Actions by ftc.--In the case of an enforcement 
                action by the Commission under a Federal law or 
                regulation described in subparagraph (A)--
                          (i) the Commission shall provide the Federal 
                        Trade Commission with notice as described in 
                        subparagraph (A);
                          (ii) the Federal Trade Commission shall have 
                        the right of intervention described in 
                        subparagraph (B); and
                          (iii) the limitation on initiating an action 
                        as described in subparagraph (C) shall apply to 
                        the Commission with respect to a pending 
                        Federal Trade Commission action.
                  (E) Agreements between agencies.--
                          (i) Negotiations authorized.--The Commission 
                        may negotiate an agreement with the Federal 
                        Trade Commission to establish procedures to 
                        ensure that the enforcement actions of the 2 
                        agencies are appropriately coordinated.
                          (ii) Scope of negotiated agreement.--The 
                        terms of any agreement negotiated pursuant to 
                        clause (i) may modify or supersede the 
                        provisions of subparagraphs (A), (B), and (C).
          (3) Coordination with other federal agency.--
                  (A) Referral.--Any Federal agency (other than the 
                Federal Trade Commission) that is authorized to enforce 
                a Federal law described in paragraph (1) may recommend 
                in writing to the Commission that it initiate an 
                enforcement proceeding to the extent the Commission is 
                authorized by that Federal law or by this title. The 
                recommendation shall be accompanied by a written 
                explanation of the concerns giving rise to the 
                recommendation.
                  (B) Backstop enforcement authority of other federal 
                agency.--If the Commission does not, before the end of 
                the 120-day period beginning on the date on which the 
                Commission receives a recommendation under subparagraph 
                (A), initiate an enforcement proceeding, the other 
                agency referred to in subparagraph (A) may initiate an 
                enforcement proceeding as permitted by that Federal 
                law.
          (4) Institutions subject to special examination and 
        enforcement procedures.--This subsection shall not apply to 
        institutions subject to section 123.
  (f) Preservation of Other Authority.--
          (1) Attorney general.--No provision of this title shall be 
        construed as affecting any authority of the Attorney General.
          (2) Secretary of the treasury.-- No provision of this title 
        shall be construed as affecting any authority of the Secretary 
        of the Treasury, including with respect to prescribing 
        regulations, initiating enforcement proceedings, or taking 
        other actions with respect to a person providing tax planning 
        or tax preparation services.
          (3) Fair housing act.--No provision of this title shall be 
        construed as affecting any authority arising under the Fair 
        Housing Act.
  (g) Effect on Other Authority.--No provision of this section or 
section 123 shall be construed as modifying or limiting the authority 
of any appropriate Federal banking agency or the Commission to 
interpret, or take enforcement action under, any law or regulation the 
interpretation or enforcement of which is committed to the banking 
agency or the Commission, which shall include, in the case of the 
Commission, this Act, the enumerated consumer laws, and the regulations 
prescribed under this Act or such laws.
  (h) Preservation of Federal Trade Commission Authority.--No provision 
of this title shall be construed as modifying, limiting, or otherwise 
affecting the authority of the Federal Trade Commission under the 
Federal Trade Commission Act or other laws other than the enumerated 
consumer laws.

SEC. 123. EXAMINATION AND ENFORCEMENT FOR SMALL BANKS, THRIFTS, AND 
                    CREDIT UNIONS.

   (a) Scope of Institutions Subject to This Section.--
          (1) Institutions covered.--This section shall apply to--
                  (A) any insured depository institution with total 
                assets of $10,000,000,000 or less; or
                  (B) any insured credit union with total assets of 
                $1,500,000,000 or less.
          (2) Appropriate agency.--For purposes of this title, the term 
        ``appropriate agency'' means--
                  (A) in the case of an insured depository institution, 
                the appropriate Federal banking agency as such term is 
                defined in section 3 of the Federal Deposit Insurance 
                Act;
                  (B) in the case of an insured credit union, the 
                National Credit Union Administration.
  (b) Examinations.--
          (1) In general.--The appropriate agency shall on a periodic 
        basis examine, or require reports from, an institution referred 
        to in subsection (a) for purposes of ensuring compliance with 
        the requirements of this title, the enumerated consumer laws, 
        and any regulation prescribed by the Commission under this 
        title or pursuant to the authorities transferred under 
        subtitles F and H, and enforcing compliance with such 
        requirements.
          (2) Commission role in examinations.--
                  (A) The appropriate agency shall provide all reports, 
                records, and documentation related to the examination 
                process to the Commission on a timely and ongoing 
                basis.
                  (B) The Commission may, at its discretion, include an 
                examiner on any examination conducted under paragraph 
                (1). The appropriate agency shall involve such 
                Commission examiner in the entire examination process, 
                including setting the scope of an examination, 
                participating in the examination, and providing input 
                on the examination report, matters requiring attention 
                and examination ratings.
  (c) Enforcement.--
          (1) In general.--Notwithstanding any other provision of this 
        title other than this subsection, the appropriate agency shall 
        have primary authority to enforce violations identified at 
        institutions referred to in subsection (a) of any of the 
        requirements of this title, the enumerated consumers laws, and 
        any regulation prescribed by the Commission under this title or 
        pursuant to the authorities transferred under subtitles F and 
        H.
          (2) Coordination with appropriate agency.--
                  (A) Referral.--
                          (i) In general.--The Commission may recommend 
                        in writing to the appropriate agency that the 
                        appropriate agency initiate an enforcement 
                        proceeding to the extent the appropriate agency 
                        is authorized by that Federal law or by this 
                        title.
                          (ii) Explanation.--Any recommendation under 
                        clause (i) shall be accompanied by a written 
                        explanation of the concerns giving rise to the 
                        recommendation.
                  (B) Backstop enforcement authority of agency.--If the 
                appropriate agency does not, before the end of the 120-
                day period beginning on the date on which the 
                appropriate agency receives a recommendation under 
                subparagraph (A), initiate an enforcement proceeding, 
                the Commission may initiate an enforcement proceeding 
                as permitted by Federal law.
  (d) Actions Arising Out of Consumer Complaint System.--
Notwithstanding any provision of this section, if through the consumer 
complaint system administered by the Commission under section 115 (c) 
(3), the Commission has reasonable cause to believe that an institution 
referred to in subsection (a) demonstrates noncompliance with any 
provision of this title, the enumerated consumer laws, or any 
regulation prescribed by the Commission under this title or pursuant to 
the authorities transferred under subtitles F and H, the Commission may 
directly investigate such institution for such noncompliance and take 
any action permitted under subtitle E that the Commission deems 
appropriate.
  (e) Removal of Appropriate Agency for Particular Institution.--
          (1) Heightened supervision.--The Commission--
                  (A) may provide notice to an appropriate agency that 
                the Commission is considering issuing a removal order 
                under paragraph (2); and
                  (B) shall have an Commission examiner participate in 
                the examination process under subsection (b) for at 
                least 1 examination cycle.
          (2) Removal by order.--If, after the completion of at least 1 
        examination cycle following the provision of notice to an 
        appropriate agency under paragraph (1), the Commission 
        determines in writing that the appropriate agency has failed to 
        adequately conduct consumer compliance examinations or bring 
        appropriate enforcement actions against an institution referred 
        to in subsection (a), the Commission may order the removal of 
        the appropriate agency from its responsibilities under this 
        section for such institution.
          (3) Commission authority upon removal.--Upon removal pursuant 
        to paragraph (2), the Commission shall examine and enforce 
        against such institution as if the institution were subject to 
        section 122.
          (4) Effective date.--An order under paragraph (2) shall take 
        effect 30 days after a determination by the Secretary of the 
        Treasury pursuant to paragraphs (5) and (6).
          (5) Automatic appeal.--An order issued by the Commission 
        pursuant to paragraph (2) shall be automatically appealed to 
        the Secretary.
          (6) Decision by the secretary of the treasury.--
                  (A) Determination.--The order issued pursuant to 
                paragraph (2) shall be deemed affirmed unless the 
                Secretary of the Treasury denies the determination of 
                the Commission within 120 days of the issuance of the 
                order pursuant to paragraph (2).
                  (B) Rule of construction.--Nothing in subparagraph 
                (A) shall be construed as prohibiting the Secretary of 
                the Treasury from making a determination to either 
                affirm or deny an order issued pursuant to paragraph 
                (2) prior to the passage of the time period in 
                subparagraph (A).
          (7) Regulations.--By the transfer date, the Secretary shall 
        issue regulations that establish the standards the Commission 
        shall apply in making a determination to remove an appropriate 
        agency and the process, procedures, and standards for an 
        appeal. Such standards shall require the Commission to consider 
        at least the following in issuing an order removing an 
        appropriate agency for an institution referred to in subsection 
        (a)(1):
                  (A) Reports of examination of such institution.
                  (B) Any enforcement actions taken by an appropriate 
                agency against such institution and the results of 
                those actions.
                  (C) Consumer complaints issued against such 
                institution.
                  (D) Actions taken by State attorneys general and 
                private rights of action against such institution.
  (f) Policies and Procedures.--Within 180 days after the designated 
transfer date, the Commission and the appropriate agency shall develop 
policies and procedures for implementing this section.
  (g) Assessments.--
          (1) Limitation on certain fees.--The Commission shall not 
        assess examination fees on an institution referred to in 
        subsection (a).
          (2) Rule of construction.--No provision of this section shall 
        be construed as preventing the appropriate agency from 
        assessing fees on an institution referred to in paragraph (1) 
        to meet the appropriate agency's expenses for carrying out such 
        examination and supervision responsibilities pursuant to this 
        section.

SEC. 124. SIMULTANEOUS AND COORDINATED SUPERVISORY ACTION.

  (a) Examinations.--A Federal banking agency and the Commission shall, 
with respect to each insured depository institution, credit union, or 
other covered person supervised by the Federal banking agency and the 
Commission, respectively--
          (1) coordinate the scheduling of examinations of the insured 
        depository institution, and credit union, or other covered 
        person;
          (2) conduct simultaneous examinations of each insured 
        depository institution, credit union or other covered person, 
        unless such institution requests examinations to be conducted 
        separately;
          (3) share each draft report of examination with the other 
        agency and permit the receiving agency a reasonable opportunity 
        (which shall not be less than a period of 30 days after the 
        date of receipt) to comment on the draft report before such 
        report is made final; and
          (4) prior to issuing a final report of examination or taking 
        supervisory action, an agency shall take into consideration 
        concerns, if any, raised in the comments made by the other 
        agency.
  (b) Coordination With State Bank Supervisors.--The Commission shall 
pursue arrangements and agreements with State bank supervisors to 
coordinate examinations consistent with subsection (a).
  (c) Resolution of Conflict in Supervision.--
          (1) Request of depository institution.--
                  (A) In general.--If the proposed material supervisory 
                determinations of the Commission and a Federal banking 
                agency are conflicting, an insured depository 
                institution, credit union, or other covered person may 
                request the agencies to coordinate and present a joint 
                statement of coordinated supervisory action.
                  (B) Limitation.--A request of an insured depository 
                institution, credit union, or other covered person 
                shall not be used to appeal a supervisory rating or 
                determination by the Commission or a Federal banking 
                agency.
          (2) Joint statement.--The agencies receiving a request from 
        an insured depository institution, credit union, or covered 
        person under paragraph (1) shall provide a joint statement 
        resolving the conflict under such subparagraph before the end 
        of the 30-day period beginning on the date the agencies receive 
        such request.
  (d) Appeals to Governing Panel.--
          (1) In general.--If the agencies receiving a request from an 
        insured depository institution, credit union, or covered person 
        under subsection (c)(1) do not issue a joint statement under 
        subsection (c)(2), or if either agency takes or attempts to 
        take any supervisory action relating to the request for the 
        joint statement without the consent of the other agency, the 
        insured depository institution, credit union, or other covered 
        person may institute an appeal to a governing panel under this 
        subsection.
          (2) Timetable.--Any appeal under paragraph (1) with regard to 
        a failure of agencies to issue a joint statement shall be filed 
        before the end of the 30-day period beginning at the end of the 
        30-day period during which such joint statement was due under 
        subsection (c)(2).
  (e) Composition of Governing Panel.--The governing panel for an 
appeal under this section shall be composed of--
          (1) 2 individuals--
                  (A) 1 of whom is a representative from the 
                Commission;
                  (B) 1 of whom is a representative of the Federal 
                banking agency which received the request to which the 
                appeal relates; and
                  (C) neither of whom--
                          (i) have participated in the material 
                        supervisory determinations under appeal; and
                          (ii) report directly or indirectly to the 
                        individual who made the supervisory 
                        determinations under appeal; and
          (2) 1 individual who is a representative from--
                  (A) the Federal banking agency that heads the 
                Financial Institution Examination Council; or
                  (B) if the Financial Institutions Examination Council 
                is headed by a Federal banking agency that is a party 
                to the appeal, the Federal banking agency that is next 
                scheduled to head the Financial Institutions 
                Examination Council.
  (f) Conduct of Appeal.--
          (1) Content of filing appeal.--The insured depository 
        institution, credit union, or other covered person which 
        institutes an appeal under subsection (d)(1) shall include in 
        the filing of such appeal all the facts and legal arguments 
        pertaining to the matter appealed.
          (2) Appearance.--The insured depository institution, credit 
        union, or other covered person which institutes an appeal under 
        this section may appear before the governing panel in person or 
        by telephone, through counsel, employees, or representatives 
        of, or for, such institution, credit union, or other covered 
        person.
          (3) Requests for additional information.-- Any governing 
        panel convened under this section may request the insured 
        depository institution, credit union, or other covered person, 
        the Commission, or the Federal banking agency to produce 
        additional information relevant to the appeal.
          (4) Final written determinations .--Any governing panel 
        convened under this section, by a majority vote of the members 
        of the panel, shall provide a final determination, in writing, 
        within 30 days of the filing of an informationally complete 
        appeal, or such longer period as the panel and the insured 
        depository institution, credit union, or other covered person 
        may jointly agree.
          (5) Public information.--A redacted copy of any determination 
        by a governing panel convened under this section shall be made 
        public upon the issuance of such determination.
  (g) Prohibition Against Retaliation.--The Commission and the Federal 
banking agencies shall prescribe regulations to provide safeguards from 
retaliation against any insured depository institution, credit union, 
or other covered person which institutes an appeal under this section, 
as well as against any officer or and employee of any such institution, 
credit union, or other person.
  (h) Material Supervisory Determination Defined.--For purposes of this 
section, the term ``material supervisory determination''--
          (1) includes any action relating to any supervision or 
        examinations; and
          (2) does not include--
                  (A) a determination by any Federal banking agency to 
                appoint a conservator or receiver for an insured 
                depository institution or a liquidating agent for an 
                insured credit union, as the case may be, or a decision 
                to take action pursuant to section 38 of the Federal 
                Deposit Insurance Act or section 212 of the Federal 
                Credit Union Act, as the case may be; or
                  (B) any regulation or guidance, or order of general 
                applicability.

SEC. 125. LIMITATIONS ON AUTHORITY OF COMMISSION.

  (a)  Exclusion for Merchants, Retailers, and Sellers of Nonfinancial 
Services.--
          (1) In general.--Notwithstanding any provision of this title 
        (other than paragraph (4)) and subject to paragraph (2), the 
        Commission may not exercise any rulemaking, supervisory, 
        enforcement or other authority, including authority to order 
        assessments, under this title with respect to--
                  (A) credit extended directly by a merchant, retailer, 
                or seller of nonfinancial services to a consumer, in a 
                case in which the good or service being provided is not 
                itself a consumer financial product or services, 
                exclusively for the purpose of enabling that consumer 
                to purchase goods or services directly from the 
                merchant, retailer, or seller of nonfinancial services; 
                or
                  (B) collection of debt, directly by the merchant, 
                retailer, or seller of nonfinancial services, arising 
                from such credit extended.
          (2) Exception for existing authority.--The Commission may 
        exercise any rulemaking authority regarding an extension of 
        credit described in paragraph (1)(A) or the collection of debt 
        arising from such extension, as may be authorized by the 
        enumerated consumer laws or any law or authority transferred 
        under subtitle F or H.
          (3) Rule of construction.--No provision of this title shall 
        be construed as modifying, limiting, or superseding the 
        authority of the Federal Trade Commission or any other agency 
        with respect to credit extended, or the collection of debt 
        arising from such extension, directly by a merchant, retailer, 
        or seller of nonfinancial services to a consumer exclusively 
        for the purpose of enabling that consumer to purchase goods or 
        services directly from the merchant, retailer, or seller of 
        nonfinancial services.
          (4) Exclusion not applicable to certain credit 
        transactions.--Paragraph (1) shall not apply to--
                  (A) any credit transaction, including the collection 
                of the debt arising from such extension, in which the 
                merchant, retailer, or seller of nonfinancial services 
                assigns, sells, or otherwise conveys such debt owed by 
                the consumer to another person; or
                  (B) any credit transaction--
                          (i) in which the credit provided exceeds the 
                        market value of the product or service 
                        provided, or
                          (ii) with respect to which the Commission 
                        finds that the sale of the product or service 
                        is done as a subterfuge so as to evade or 
                        circumvent the provisions of this title.
  (b) Exclusion for Persons Regulated by the Securities and Exchange 
Commission.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the authority of 
        the Securities and Exchange Commission or any securities 
        commission (or any agency or office performing like functions) 
        of any State to adopt rules, initiate enforcement proceedings, 
        or take any other action with respect to a person regulated by 
        the Securities and Exchange Commission or any securities 
        commission (or any agency or office performing like functions) 
        of any State. The Commission shall have no authority to 
        exercise any power to enforce this title with respect to a 
        person regulated by the Securities and Exchange Commission or 
        any securities commission (or any agency or office performing 
        like functions) of any State.
          (2) Consultation and coordination.--Notwithstanding paragraph 
        (1), the Securities and Exchange Commission shall consult and 
        coordinate with the Commission with respect to any rule 
        (including any advance notice of proposed rulemaking) regarding 
        an investment product or service that is the same type of 
        product as, or that competes directly with, a consumer 
        financial product or service that is subject to the 
        jurisdiction of the Commission under this title or under any 
        other law.
  (c) Exclusion for Persons Regulated by the Commodity Futures Trading 
Commission.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the authority of 
        the Commodity Futures Trading Commission to adopt rules, 
        initiate enforcement proceedings, or take any other action with 
        respect to a person regulated by the Commodity Futures Trading 
        Commission. The Commission shall have no authority to exercise 
        any power to enforce this title with respect to a person 
        regulated by the Commodity Futures Trading Commission.
          (2) Consultation and coordination.--Notwithstanding paragraph 
        (1), the Commodity Futures Trading Commission shall consult and 
        coordinate with the Commission with respect to any rule 
        (including any advance notice of proposed rulemaking) regarding 
        a product or service that is the same type of product as, or 
        that competes directly with, a consumer financial product or 
        service that is subject to the jurisdiction of the Commission 
        under this title or under any other law.
  (d) Exclusion for Persons Regulated by the Federal Housing Finance 
Agency.--No provision of this title shall be construed as altering, 
amending, or affecting the authority of the Federal Housing Finance 
Agency to adopt rules, initiate enforcement proceedings, or take any 
other action with respect to a person regulated by the Federal Housing 
Finance Agency. The Commission shall have no authority to exercise any 
power to enforce this title with respect to a person regulated by the 
Federal Housing Agency. For purposes of this subsection, the term 
``person regulated by the Federal Housing Finance Agency'' means any 
Federal home loan bank, and any joint office of 1 or more Federal home 
loan banks.
  (e) Exclusion for Persons Regulated by a State Insurance Regulator.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the authority of 
        any State insurance regulator to adopt rules, initiate 
        enforcement proceedings, or take any other action with respect 
        to a person regulated by any State insurance regulator. Except 
        as provided in paragraphs (2) and (3), the Commission shall 
        have no authority to exercise any power to enforce this title 
        with respect to a person regulated by any State insurance 
        regulator.
          (2) Description of activities.--Paragraph (1) shall not apply 
        to any person described in such paragraph to the extent such 
        person is engaged in any financial activity described in any 
        subparagraph of section 101(19) or is otherwise subject to any 
        of the enumerated consumer laws or the authorities transferred 
        under subtitle F or H.
          (3) Preservation of certain authorities.--Nothing in this 
        title shall be construed as limiting the authority of the 
        Commission from exercising powers under this Act with respect 
        to the provision by a covered person of a product or service, 
        not otherwise subject to this Act, for or on behalf of a person 
        regulated by a State insurance regulator, in connection with a 
        financial activity.
  (f) Exclusion for Qualified Retirement or Eligible Deferred 
Compensation Plans and Arrangements.--
          (1) In general.--No provision of this title shall be 
        construed as altering, amending, or affecting the authority of 
        the Secretary of the Treasury, the Secretary of Labor, or the 
        Commissioner of Internal Revenue to adopt regulations, initiate 
        enforcement proceedings, or take any actions with respect to--
                  (A) any retirement or eligible deferred compensation 
                plan or arrangement qualified under or meeting the 
                requirements of section 401(a), 403(a), 403(b), 457(b), 
                408 or 408A of the Internal Revenue Code; or
                  (B) any educational savings arrangement under section 
                529 of such Code.
          (2) Limitation on agency authority.--
                  (A) In general.--The Commission may not exercise any 
                power to enforce this title with respect to services 
                provided directly (or indirectly if the services relate 
                to the operation of such plan or arrangement) to--
                          (i) any retirement or eligible deferred 
                        compensation plan or arrangement qualified 
                        under or meeting the requirements of section 
                        401(a), 403(a), 403(b), 457(b), 408, or 408A of 
                        the Internal Revenue Code; or
                          (ii) any educational savings arrangement 
                        under section 529 of such Code.
                  (B) Services defined.--For purposes subparagraph (A), 
                the term ``services'' shall include, for example, 
                services for custody and investment of assets, 
                administration, compliance, and participant assistance.
  (g) Exclusion for Accountants, Tax Preparers, and Attorneys.--
          (1) In general.--Except as permitted in paragraph (2), the 
        Commission may not exercise any rulemaking, supervisory, 
        enforcement or other authority, including authority to order 
        assessments, over--
                  (A) any person that is a certified public accountant, 
                permitted to practice as a certified public accounting 
                firm, or certified or licensed for such purpose by a 
                State, or any individual who is employed by or holds an 
                ownership interest with respect to a person described 
                in this subparagraph when such person is performing or 
                offering to perform customary and usual accounting 
                activities, including the provision of accounting, tax, 
                advisory, other services that are subject to the 
                regulatory authority of a state board of accountancy or 
                a federal authority, or other services that are 
                incidental to such customary and usual accounting 
                activities, to the extent that such incidental services 
                are not offered or provided by the person separate and 
                apart from such customary and usual accounting 
                activities and are not offered or provided to consumers 
                who are not receiving such customary and usual 
                accounting activities;
                  (B) any person other than a person described in 
                subparagraph (A) that performs income tax preparation 
                activities for consumers; or
                  (C) any individual who is providing legal advice or 
                services for which a license to practice law is 
                required under the law of the State in which the advice 
                or services are provided and which are performed within 
                the scope of an attorney-client relationship 
                established by an agreement, but only to the extent of 
                such legal advice or services.
          (2) No exclusion with respect to registration of most 
        attorneys.--Notwithstanding paragraph (1), this subsection 
        shall not apply to any authority granted to the Commission 
        under section 128 with respect to a licensed attorney, except 
        to the extent a licensed attorney is solely providing legal 
        services in connection with--
                  (A) the preparation and filing of a bankruptcy 
                petition; or
                  (B) court proceedings to avoid a foreclosure.
          (3) Description of activities.--Paragraph (1) shall not apply 
        to--
                  (A) any person described in paragraph (1)(A) to the 
                extent such person is engaged in any activity which is 
                not a customary and usual accounting activity described 
                in paragraph (1)(A) or incidental thereto but which is 
                a financial activity described in any subparagraph of 
                section 101(19);
                  (B) any person described in paragraph (1)(B) or 
                (1)(C) to the extent such person is engaged in any 
                activity which is a financial activity described in any 
                subparagraph of section 101(19); or
                  (C) any person described in paragraph (1)(A), (1)(B) 
                or (1)(C) that is otherwise subject to any of the 
                enumerated consumer laws or the authorities transferred 
                under subtitle F or H.
  (h) Exclusion for Real Estate Licensees.--
          (1) In general.--Except as permitted in paragraph (2), the 
        Commission may not exercise any rulemaking, supervisory, 
        enforcement or other authority, including authority to order 
        assessments, over a person that is licensed or registered as a 
        real estate broker, real estate agent, in accordance with State 
        law, but only to the extent that such person--
                  (A) acts as a real estate agent or broker for a 
                buyer, seller, lessor, or lessee of real property;
                  (B) brings together parties interested in the sale, 
                purchase, lease, rental, or exchange of real property;
                  (C) negotiates, on behalf of any party, any portion 
                of a contract relating to the sale, purchase, lease, 
                rental, or exchange of real property (other than in 
                connection with providing financing with respect to any 
                such transaction);
                  (D) engages in any activity for which a person 
                engaged in the activity is required to be registered or 
                licensed as a real estate agent or real estate broker 
                under any applicable law; or
                  (E) offers to engage in any activity, or act in any 
                capacity, described in subparagraph (A), (B), (C), or 
                (D).
          (2) Description of activities.--Paragraph (1) shall not apply 
        to any person described in such paragraph to the extent such 
        person is engaged in any financial activity described in any 
        subparagraph of section 101(19) or is otherwise subject to any 
        of the enumerated consumer laws or the authorities transferred 
        under subtitle F or H.
  (i) Exclusion for Auto Dealers.--
          (1) In general.--The Commission may not exercise any 
        rulemaking, supervisory, enforcement or any other authority, 
        including authority to order assessments, over--
                  (A) a motor vehicle dealer that is primarily engaged 
                in the sale and servicing of motor vehicles, the 
                leasing and servicing of motor vehicles, or both; or
                  (B) a person that--
                          (i) is controlled by, or is under common 
                        control with, one or more motor vehicle 
                        dealers; and
                          (ii) primarily engages in the extension of, 
                        or arranging for the extension of, retail 
                        credit or retail leases involving motor 
                        vehicles, where 90 percent of such extension, 
                        or arranging for such extension, is made with 
                        respect to customers of one or more motor 
                        vehicle dealers that control such person or 
                        with which such person is under common control.
          (2) Certain functions excepted.--The provisions of paragraph 
        (1) shall not apply to any person to the extent that person--
                  (A) provides consumers with any services related to 
                residential mortgages; or
                  (B) operates a line of business that involves the 
                extension of retail credit or retail leases involving 
                motor vehicles, and in which--
                          (i) the extension of retail credit or retail 
                        leases is routinely provided directly to 
                        consumers; and
                          (ii) the contract governing such extension of 
                        retail credit or retail leases is not routinely 
                        assigned to a third party finance or leasing 
                        source.
          (3) No impact on prior authority.--Nothing in this subsection 
        shall be construed to modify, limit, or supersede the 
        rulemaking or enforcement authority over motor vehicle dealers 
        that could be exercised by any Federal department or agency on 
        the day prior to the enactment of this title.
          (4) No transfer of certain authority.--Notwithstanding 
        subtitle F or any other provision of law under this title, the 
        consumer financial protection functions of the Board of 
        Governors and the Federal Trade Commission shall not be 
        transferred to the Commission to the extent such functions are 
        with respect to a person described under paragraph (1).
          (5) Definitions.--For purposes of this subsection:
                  (A) Motor vehicle.--The term ``motor vehicle'' means 
                any self-propelled vehicle designed for transporting 
                persons or property on a street, highway, or other 
                road.
                  (B) Motor vehicle dealer.--The term ``motor vehicle 
                dealer'' means any person resident in the United States 
                or any territory of the United States, and licensed by 
                a State, a territory of the United States, or the 
                District of Columbia to engage in the sale of motor 
                vehicles.
  (j) No Authority to Impose Usury Limit.--No provision of this title 
shall be construed as conferring authority on the Commission to 
establish a usury limit applicable to an extension of credit offered or 
made by a covered person to a consumer, unless explicitly authorized by 
law.
  (k) Exclusion for Manufactured Home Retailers and Modular Home 
Retailers.--
          (1) In general.--The Commission may not exercise any 
        rulemaking, supervisory, enforcement or other authority, 
        including authority to order assessments, over a person to the 
        extent such person--
                  (A) acts as an agent or broker for a buyer or seller 
                of a manufactured home or a modular home;
                  (B) facilitates the purchase by a consumer of a 
                manufactured home or modular home, by negotiating the 
                purchase price or terms of the sales contract (other 
                than providing financing with respect to such 
                transaction); or
                  (C) offers to engage in any activity described in 
                subparagraphs (A) or (B).
          (2) Description of activities.--Paragraph (1) shall not apply 
        to any person described in such paragraph to the extent such 
        person is engaged in any financial activity described in any 
        subparagraph of section 101(19) or is otherwise subject to any 
        of the enumerated consumer laws or the authorities transferred 
        under subtitle F or H.
          (3) Definitions.--For purposes of this subsection:
                  (A) Manufactured home.--The term ``manufactured 
                home'' has the meaning given such term in section 603 
                of the National Manufactured Housing Construction and 
                Safety Standards Act of 1974 (42 U.S.C. 5402).
                  (B) Modular home.--The term ``modular home'' means a 
                house built in a factory in two or more modules that 
                meet the State or local building codes where the house 
                will be located and where such modules are transported 
                to the building site, installed on foundations, and 
                completed.

SEC. 126. COLLECTION OF INFORMATION; CONFIDENTIALITY REGULATIONS.

  (a) Collection of Information.--
          (1) In general.--In conducting research on the provision of 
        consumer financial products or services, the Commission shall 
        have the power to gather information from time to time 
        regarding the organization, business conduct, and practices of 
        covered persons or service providers.
          (2) Specific authority.--In order to gather such information, 
        the Commission shall have the power--
                  (A) to gather and compile information;
                  (B) to require persons to file with the Commission, 
                in such form and within such reasonable period of time 
                as the Commission may prescribe, by regulation or 
                order, annual or special reports, or answers in writing 
                to specific questions, furnishing information the 
                Commission may require; and
                  (C) to make public such information obtained by it 
                under this section as is in the public interest in 
                reports or otherwise in the manner best suited for 
                public information and use.
  (b) Confidentiality Regulations.--The Commission shall prescribe 
regulations regarding the confidential treatment of information 
obtained from persons in connection with the exercise of any authority 
of the Commission under this title and the enumerated consumer laws and 
the authorities transferred under subtitles F and H.
  (c) Privacy Considerations.--In collecting information from any 
person, publicly releasing information held by the Commission, or 
requiring covered persons to publicly report information, the 
Commission shall take steps to ensure that proprietary, personal or 
confidential consumer information that are protected from public 
disclosure under section 552(b) or 552a of title 5, United States Code, 
or any other provision of law are not made public under this title.

SEC. 127. MONITORING; ASSESSMENTS OF SIGNIFICANT REGULATIONS; REPORTS.

  (a) Monitoring.--
          (1) In general.--The Commission shall monitor for risks to 
        consumers in the provision of consumer financial products or 
        services, including developments in markets for such products 
        or services.
          (2) Means of monitoring.--Such monitoring may be conducted by 
        examinations of covered persons or service providers, analysis 
        of reports obtained from covered persons or service providers, 
        assessment of consumer complaints, surveys and interviews of 
        covered persons, service providers, and consumers, and review 
        of available databases.
          (3) Considerations.--In allocating the resources of the 
        Commission to perform the monitoring required by this section, 
        the Commission may consider, among other factors--
                  (A) likely risks and costs to consumers associated 
                with buying or using a type of consumer financial 
                product or service;
                  (B) consumers' understanding of the risks of a type 
                of consumer financial product or service;
                  (C) the state of the law that applies to the 
                provision of a consumer financial product or service, 
                including the extent to which the law is likely to 
                adequately protect consumers;
                  (D) rates of growth in the provision of a consumer 
                financial product or service;
                  (E) extent, if any, to which the risks of a consumer 
                financial product or service may disproportionately 
                affect traditionally underserved consumers, if any; or
                  (F) types, number, and other pertinent 
                characteristics of covered persons that provide the 
                product or service.
          (4) Reports.--The Commission shall publish at least 1 report 
        of significant findings of the monitoring required by paragraph 
        (1) in each calendar year, beginning in the calendar year that 
        is 1 year after the designated transfer date.
  (b) Assessment of Significant Regulations.--
          (1) In general.--The Commission shall conduct an assessment 
        of each significant regulation prescribed or order issued by 
        the Commission under this title, under the authorities 
        transferred under subtitles F and H or pursuant to any 
        enumerated consumer law that addresses, among other relevant 
        factors, the effectiveness of the regulation in meeting the 
        purposes and objectives of this Act and the specific goals 
        stated by the Commission.
          (2) Basis for assessment.--The assessment shall reflect 
        available evidence and any data that the Commission reasonably 
        may collect.
          (3) Reports.--The Commission shall publish a report of an 
        assessment under this subsection not later than 3 years after 
        the effective date of the regulation or order, unless the 
        Commission determines that 3 years is not sufficient time to 
        study or review the impact of the regulation, but in no event 
        shall the Commission publish a report of such assessment more 
        than 5 years after the effective date of the regulation or 
        order.
          (4) Public commented required.--Before publishing a report of 
        its assessment, the Commission shall invite, with sufficient 
        time allotted, public comment on, and may hold public hearings 
        on, recommendations for modifying, expanding, or eliminating 
        the newly adopted significant regulation or order.
  (c) Information Gathering.--In conducting any monitoring or 
assessment required by this section, the Commission may gather 
information through a variety of methods, including by conducting 
surveys or interviews of consumers.

SEC. 128. AUTHORITY TO RESTRICT MANDATORY PREDISPUTE ARBITRATION.

  (a) In General.--The Commission, by regulation, may prohibit or 
impose conditions or limitations on the use of any agreement between a 
covered person and a consumer for a consumer financial product or 
service providing for arbitration of any future dispute between the 
parties if the Commission finds that such a prohibition or imposition 
of conditions or limitations are in the public interest and for the 
protection of consumers.
  (b) Effective Date.--Notwithstanding any other provision of law, any 
regulation prescribed by the Commission under subsection (a) shall 
apply, consistent with the terms of the regulation, to any agreement 
between a consumer and a covered person entered into after the end of 
the 180-day period beginning on the effective date of the regulation, 
as established by the Commission.

SEC. 129. REGISTRATION AND SUPERVISION OF NONDEPOSITORY COVERED 
                    PERSONS.

  (a) Risk-based Programs.--
          (1) In general.--The Commission shall develop risk-based 
        programs to supervise covered persons that are not credit 
        unions, depository institutions, or persons excluded under 
        section 125 by prescribing registration requirements, reporting 
        requirements, and examination standards and procedures.
          (2) Basis for programs.--The risk-based supervisory programs 
        established pursuant to paragraph (1) shall be based on--
                  (A) relevant registration and reporting information 
                about such covered persons, as determined by the 
                Commission; and
                  (B) the Commission's assessment of risks posed to 
                consumers in the relevant geographic markets and 
                markets for consumer financial products and services.
  (b) Registration.--
          (1) In general.--The Commission shall prescribe regulations 
        regarding registration requirements for covered persons that 
        are not credit unions or depository institutions.
          (2) Consultation with state agencies.--In developing and 
        implementing registration requirements under this subsection, 
        the Commission shall consult with State agencies regarding 
        requirements or systems for registration (including coordinated 
        or combined systems), where appropriate.
          (3) Exception for related persons.--The Commission shall not 
        impose requirements regarding the registration of a related 
        person.
          (4) Registration information.--The Commission shall publicly 
        disclose the registration information about a covered person 
        which is not a bank holding company, credit union, or 
        depository institution for the purposes of facilitating the 
        ability of consumers to identify the covered person as 
        registered with the Commission.
  (c) Reporting Requirements.--
          (1) In general.--The Commission may require reports from 
        covered persons that are not credit unions or depository 
        institutions, or service providers thereto, for the purposes of 
        facilitating supervision of such covered persons or service 
        providers.
          (2) Consistency of reporting requirements and risk-based 
        standards.--The Commission shall impose reporting requirements 
        under this subsection that are consistent with the risk-based 
        standards developed and implemented under this section and the 
        registration information pertaining to the relevant types or 
        classes of covered persons.
          (3) Contents of reports.--Reporting requirements imposed 
        under this paragraph may include information regarding--
                  (A) the nature of the covered person's business;
                  (B) the covered person's name, legal form, ownership 
                and management structure, and related persons;
                  (C) the covered person's locations of operation;
                  (D) the covered person's types and number of consumer 
                financial products and services provided by the covered 
                person;
                  (E) compliance with any requirement imposed or 
                enforced by the Commission, including any requirement 
                relating to registration, licensing, fees, or 
                assessments; and
                  (F) the financial condition of such covered person, 
                including a related person, for the purpose of 
                assessing the ability of such person to perform its 
                obligation to consumers.
          (4) Consultation with the federal trade commission.--In 
        developing and implementing report requirements under this 
        subsection, the Commission shall consult with the Federal Trade 
        Commission, where appropriate.
          (5)  Exception for related persons.--Other than reports 
        permitted under paragraph (3)(F) or in connection with a 
        supervisory action or examination or pursuant to the powers 
        granted in subtitle E, the Commission shall not impose 
        requirements regarding reports of any related person.
  (d) Examinations.--
          (1) Examinations required.--The Commission shall conduct 
        examinations of covered persons that are not credit unions or 
        depository institutions as part of the programs implemented 
        under paragraphs (2) and (3) of section 122(c).
          (2) Examination standards and procedures.--The Commission 
        shall establish risk-based standards and procedures for 
        conducting examinations of covered persons required to be 
        examined under paragraph (1), including the frequency and scope 
        of such examinations, except that the Commission shall conduct 
        examinations of such covered persons that are determined to 
        pose the highest risk to consumers based on factors determined 
        by the Commission, such as the operations, sales practices, or 
        consumer financial products or services provided by such 
        covered persons.
  (e) Authority to Collect Information Regarding Fees or Assessments.--
To the extent permitted by Federal law, the Commission may obtain from 
the Secretary of the Treasury information relating to a covered person 
which is not a bank holding company, credit union, or depository 
institution, including information regarding compliance with a 
reporting or registration requirement under the subchapter II of 
chapter 53 of title 31, United States Code, for the purposes of, and 
only to the extent necessary in, investigating, determining, or 
enforcing compliance with a requirement relating to any fee or 
assessment imposed by the Commission under this title.

SEC. 130. EFFECTIVE DATE.

  This subtitle shall take effect on the designated transfer date.

                    Subtitle C--Specific Authorities

SEC. 131. PROHIBITING UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES.

  (a) In General.--The Commission may take any action authorized under 
subtitle E to prevent a person from committing or engaging in an 
unfair, deceptive, or abusive act or practice under Federal law in 
connection with any transaction with a consumer for a consumer 
financial product or service, or the offering of a consumer financial 
product or service.
  (b) Regulations.--
          (1) In general.--The Commission may prescribe regulations 
        identifying as unlawful unfair, deceptive, or abusive acts or 
        practices in connection with any transaction with a consumer 
        for a consumer financial product or service or the offering of 
        a consumer financial product or service.
          (2) Includes prevention measures.--Regulations prescribed 
        under this section may include requirements for the purpose of 
        preventing such acts or practices.
  (c) Unfairness.--
          (1) In general.--The Commission shall have no authority under 
        this section to declare an act or practice in connection with a 
        transaction with a consumer for a consumer financial product or 
        service, or the offering of a consumer financial product or 
        service, to be unlawful on the grounds that such act or 
        practice is unfair unless the Commission has a reasonable basis 
        to conclude that the act or practice causes or is likely to 
        cause substantial injury to consumers which is not reasonably 
        avoidable by consumers and such substantial injury is not 
        outweighed by countervailing benefits to consumers or to 
        competition.
          (2) Established public policy as factor.--In determining 
        whether an act or practice is unfair, the Commission may 
        consider established public policies as evidence to be 
        considered with all other evidence.
  (d) Consultation.--In prescribing any regulation under this section, 
the Commission shall consult with the Federal banking agencies, State 
bank supervisors, the Federal Trade Commission, or other Federal 
agencies, as appropriate, regarding the consistency of a proposed 
regulation with prudential, consumer protection, civil rights, market, 
or systemic objectives administered by such agencies or supervisors.

SEC. 132. DISCLOSURES.

  (a) In General.--The Commission may prescribe regulations to ensure 
the timely, appropriate and effective disclosure to consumers of the 
costs, benefits, and risks associated with any consumer financial 
product or service.
  (b) Coordination With Other Laws.--In prescribing regulations under 
subsection (a), the Commission shall take into account disclosure 
requirements under other laws in order to enhance consumer compliance 
and reduce regulatory burden.
  (c) Compliance.--
          (1) Model disclosures.--The Commission may provide model 
        disclosures to facilitate compliance with the requirements of 
        regulations prescribed under this section.
          (2) Per se compliance.--Compliance by a covered person with 
        the model disclosures issued by the Commission under this 
        subsection shall per se constitute compliance with the 
        disclosure requirements of this section.
          (3) Additional guidance.--The Commission may issue 
        exemptions, no action letters, and other guidance to promote 
        compliance with disclosures requirements of regulations 
        prescribed under this section.
  (d) Combined Mortgage Loan Disclosure.--Within 1 year after the 
designated transfer date, the Commission shall propose for public 
comment regulations and model disclosures that combine the disclosures 
required under the Truth in Lending Act and the Real Estate Settlement 
Procedures Act into a single, integrated disclosure for mortgage loan 
transactions covered by those laws, unless the Commission determines 
that any proposal issued by the Board of Governors and the Department 
of Housing and Urban Development carries out the same purpose.

SEC. 133. SALES PRACTICES.

  The Commission may prescribe regulations and issue orders and 
guidance regarding the manner, settings, and circumstances for the 
provision of any consumer financial products or services to ensure that 
the risks, costs, and benefits of the products or services, both 
initially and over the term of the products or services, are fully and 
accurately represented to consumers.

SEC. 134. PILOT DISCLOSURES.

  (a) Pilot Disclosures.--The Commission shall establish standards and 
procedures for approval of pilot disclosures to be provided or made 
available by a covered person to consumers in connection with the 
provision of a consumer financial product or service, or the offering 
of a consumer financial product or service.
  (b) Standards.--The procedures shall provide that a pilot disclosure 
must be limited in time and scope and reasonably designed to contribute 
materially to the understanding of consumer awareness and understanding 
of, and responses to, disclosures or communications about the risks, 
costs, and benefits of consumer financial products or services.
  (c) Transparency.--The procedures shall provide for public disclosure 
of pilots, but the Commission may limit disclosure to the extent 
necessary to encourage covered persons to conduct effective pilots.

SEC. 135. ADOPTING OPERATIONAL STANDARDS TO DETER UNFAIR, DECEPTIVE, OR 
                    ABUSIVE PRACTICES.

  (a) Authority To Prescribe Standards.--The States are encouraged to 
prescribe standards applicable to covered persons who are not insured 
depository institutions or credit unions, or service providers, to 
deter and detect unfair, deceptive, abusive, fraudulent, or illegal 
transactions in the provision of consumer financial products or 
services, including standards for--
          (1) background checks for principals, officers, directors, or 
        key personnel;
          (2) registration, licensing, or certification;
          (3) bond or other appropriate financial requirements to 
        provide reasonable assurance of ability to perform its 
        obligations to consumers;
          (4) creating and maintaining records of transactions or 
        accounts; or
          (5) procedures and operations relating to the provision of, 
        or maintenance of accounts for, consumer financial products or 
        services.
  (b) Commission Authority to Prescribe Standards.--
          (1) In general.--The Commission may prescribe regulations 
        establishing minimum standards under this section for any class 
        of covered persons other than covered persons which are subject 
        to the jurisdiction of a Federal banking agency or a State bank 
        supervisor , or for any service provider.
          (2) Registration and licensing standards.--In addition to 
        prescribing standards for the purposes described in subsection 
        (a), the Commission may prescribe registration or licensing 
        standards applicable to covered persons for the purposes of 
        imposing fees or assessments in accordance with this title.
          (3) Enforcement of standards.-- The Commission may enforce 
        under subtitle E compliance with standards adopted by the 
        Commission or a State pursuant to this section for covered 
        persons or service providers operating in that State.
  (c) Consultation.--In prescribing minimum standards under this 
section, the Commission shall consult with the Federal banking 
agencies, State bank supervisors, the Federal Trade Commission, or 
other Federal agencies, as appropriate, regarding the consistency of a 
proposed regulation with prudential, consumer protection, civil rights, 
market, or systemic objectives administered by such agencies or 
supervisors.

SEC. 136. DUTIES.

  (a) In General.--
          (1) Regulations ensuring fair dealing with consumers.--The 
        Commission shall prescribe regulations imposing duties on a 
        covered person, or an employee of a covered person, or an agent 
        or independent contractor for a covered person, who deals or 
        communicates directly with consumers in the provision of a 
        consumer financial product or service, as the Commission deems 
        appropriate or necessary to ensure fair dealing with consumers.
          (2) Considerations for duties.--In prescribing such 
        regulations, the Commission shall consider whether--
                  (A) the covered person, employee, agent, or 
                independent contractor represents implicitly or 
                explicitly that the person, employee, agent, or 
                contractor is acting in the interest of the consumer 
                with respect to any aspect of the transaction;
                  (B) the covered person, employee, agent, or 
                independent contractor provides the consumer with 
                advice with respect to any aspect of the transaction;
                  (C) the consumer's reliance on or use of any advice 
                from the covered person, employee, agent, or 
                independent contractor would be reasonable and 
                justifiable under the circumstances;
                  (D) the benefits to consumers of imposing a 
                particular duty would outweigh the costs; and
                  (E) any other factors as the Commission considers 
                appropriate.
          (3) Duties relating to compensation practices.--
                  (A) In general.--The Commission may prescribe 
                regulations establishing duties regarding compensation 
                practices applicable to a covered person, employee, 
                agent, or independent contractor who deals or 
                communicates directly with a consumer in the provision 
                of a consumer financial product or service for the 
                purpose of promoting fair dealing with consumers.
                  (B) No compensation caps.--The Commission may not 
                prescribe a limit on the total dollar amount of 
                compensation paid to any person.
                  (C) Disparity treatment prohibited.--The Commission 
                may not prescribe regulations that directly or 
                indirectly disparately treat, or are interpreted to 
                disparately treat, or disparately impact any entity 
                that employs covered persons.
          (4) Requirement to include disclaimer on public statements.--
        The Commission shall ensure that its website, and any statement 
        made by the Commission to the public, includes a disclaimer 
        stating that the Commission does not endorse any particular 
        financial product or service and consumers are expected to 
        exercise due diligence in deciding what financial products and 
        services are appropriate for them.
  (b) Administrative Proceedings.--
          (1) In general.--Any regulation prescribed by the Commission 
        under this section shall be enforceable only by the Commission 
        through an adjudication proceeding under subtitle E or by a 
        State regulator through an appropriate administrative 
        proceeding as permitted under State law.
          (2) Exclusivity of remedy.--No action may be commenced in any 
        court to enforce any requirement of a regulation prescribed 
        under this section, and no court may exercise supplemental 
        jurisdiction over a claim asserted under a regulation 
        prescribed under this section based on allegations or evidence 
        of conduct that otherwise may be subject to such regulation.
          (3) Rule of construction.--The Commission, the Attorney 
        General, and any State attorney general or State regulator 
        shall not be precluded from enforcing any other Federal or 
        State law against a person with respect to conduct that may be 
        subject to a regulation prescribed by the Commission under this 
        section.
  (c) Exclusions.--This section shall not be construed as authorizing 
the Commission to prescribe regulations applicable to--
          (1) an attorney licensed to practice law and in compliance 
        with the applicable rules and standards of professional 
        conduct, but only to the extent that the consumer financial 
        product or service provided is within the attorney-client 
        relationship with the consumer; or
          (2) any trustee, custodian, or other person that holds a 
        fiduciary duty in connection with a trust, including a 
        fiduciary duty to a grantor or beneficiary of a trust, that is 
        subject to and in compliance with the applicable law relating 
        to such trust.

SEC. 137. CONSUMER RIGHTS TO ACCESS INFORMATION.

  (a) In General.--Subject to regulations prescribed by the Commission, 
a covered person shall make available to a consumer, in an electronic 
form usable by the consumer, information in the control or possession 
of the covered person concerning the consumer financial product or 
service that the consumer obtained from such covered person including 
information relating to any transaction, series of transactions, or to 
the account including costs, charges and usage data.
  (b) Exceptions.--A covered person shall not be required by this 
section to make available to the consumer--
          (1) any confidential commercial information, including an 
        algorithm used to derive credit scores or other risk scores or 
        predictors;
          (2) 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;
          (3) any information required to be kept confidential by any 
        other law (including section 6103 of the Internal Revenue Code 
        of 1986); or
          (4) any information that the covered person cannot retrieve 
        in the ordinary course of its business with respect to that 
        information.
  (c) No Duty To Maintain Records.--No provision of this section shall 
be construed as imposing any duty on a covered person to maintain or 
keep any information about a consumer.
  (d) Standardized Formats for Data.--The Commission, by regulation, 
shall prescribe standards applicable to covered persons to promote the 
development and use of standardized formats for information, including 
through the use of machine readable files, to be made available to 
consumers under this section.
  (e) Consultation.--The Commission shall, when prescribing any 
regulation under this section, consult with the Federal banking 
agencies, State bank supervisors, the Federal Trade Commission, and the 
Commissioner of Internal Revenue to ensure that the regulations--
          (1) impose substantively similar requirements on covered 
        persons;
          (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 particular 
        technology in order to develop systems for compliance.

SEC. 138. PROHIBITED ACTS.

  It shall be unlawful for any person--
          (1) to advertise, market, offer, sell, enforce, or attempt to 
        enforce, any term, agreement, change in terms, fee, or charge 
        in connection with a consumer financial product or service that 
        is not in conformity with this title or applicable regulation 
        prescribed or order issued by the Commission or to engage in 
        any unfair, deceptive, or abusive act or practice, except that 
        no person shall be held to have violated this subsection solely 
        by virtue of providing or selling time or space to a person 
        placing an advertisement;
          (2) to fail or refuse to pay any fee or assessment imposed by 
        the Commission under this title, to fail or refuse to permit 
        access to or copying of records, to fail or refuse to establish 
        or maintain records, or to fail or refuse to make reports or 
        provide information to the Commission, as required by this 
        title, an enumerated consumer law, or pursuant to the 
        authorities transferred by subtitles F and H, or any regulation 
        prescribed or order issued by the Commission this title or 
        pursuant to any such authority; or
          (3) to knowingly or recklessly provide substantial assistance 
        to another person in violation of the provisions of section 
        131, or any regulation prescribed or order issued under such 
        section, and any such person shall be deemed to be in violation 
        of that section to the same extent as the person to whom such 
        assistance is provided.
Nothing in this section shall be construed to modify or otherwise 
affect section 230(c)(1) of the Communications Act of 1934 (47 U.S.C. 
230(c)(1)).

SEC. 139. TREATMENT OF REMITTANCE TRANSFERS.

  (a) Disclosures Required for Remittance Transfers.--
          (1) In general.--Each remittance transfer provider shall make 
        disclosures to consumers, as specified by this section and by 
        regulation prescribed by the Commission.
          (2) Specific disclosures.--In addition to any other 
        disclosures applicable under this title, a remittance transfer 
        provider shall--
                  (A) disclose clearly and conspicuously, in writing 
                and in a form that the consumer may keep, to each 
                consumer who requests information regarding the fees or 
                exchange rate for a remittance transfer, prior to the 
                consumer making any payment in connection with the 
                transfer--
                          (i) the total amount in United States dollars 
                        that will be required to be paid by the 
                        consumer in connection with the remittance 
                        transfer;
                          (ii) the amount of currency that the 
                        designated recipient of the remittance transfer 
                        will receive, using the values of the currency 
                        into which the funds will be exchanged;
                          (iii) the fee charged by the remittance 
                        transfer provider for the remittance transfer;
                          (iv) any exchange rate to be used by the 
                        remittance transfer provider for the remittance 
                        transfer, unless the exchange rate is not fixed 
                        on send;
                          (v) the amount of time for which the 
                        information specified in this subparagraph (A) 
                        will be in effect;
                          (vi) the expected time interval within which 
                        the funds being transferred will be made 
                        available to the recipient; and
                          (vii) the location where the funds being 
                        transferred will be made available to the 
                        recipient if the funds are to be made available 
                        only at one location, or if the remittance 
                        transfer provider permits the recipient to 
                        choose from multiple locations where the funds 
                        being transferred will be made available to the 
                        recipient, the remittance transfer provider 
                        shall make available to the consumer or the 
                        recipient a resource that lists such locations;
                  (B) at the time at which the consumer makes payment 
                in connection with the remittance transfer, a receipt 
                in writing disclosing clearly and conspicuously--
                          (i) the information described in subparagraph 
                        (A);
                          (ii) the expected time interval within which 
                        the funds being transferred will be made 
                        available to the recipient, which shall be not 
                        more than ten days after the date the consumer 
                        makes payment in connection with the remittance 
                        transfer unless otherwise prohibited by 
                        applicable State or Federal law or the law of 
                        another country, or as may be specified by the 
                        consumer so long as the consumer has the choice 
                        to order that the funds be made available to 
                        the recipient not more than ten days after the 
                        consumer makes payment in connection with the 
                        remittance transfer;
                          (iii) the location where the funds being 
                        transferred will be made available to the 
                        recipient if the funds are to be made available 
                        only at one location, or if the remittance 
                        transfer provider permits the recipient to 
                        choose from multiple locations where the funds 
                        being transferred will be made available to the 
                        recipient, the remittance transfer provider 
                        shall make available to the consumer or the 
                        recipient a resource that lists such locations;
                          (iv) the name and telephone number or address 
                        of the designated recipient, if provided to the 
                        remittance transfer provider by the consumer;
                          (v) information about the rights of the 
                        consumer under this section to cancel the 
                        remittance transfer, to resolve errors and to 
                        receive refunds;
                          (vi) appropriate contact information for the 
                        remittance transfer provider;
                          (vii) a transaction reference number unique 
                        to that remittance transfer; and
                          (viii) information as to when the exchange 
                        rate will be calculated (for example, when the 
                        funds are received by the recipient), if the 
                        customer has been notified that the exchange 
                        rate is not fixed on send;
                  (C) at the time at which the consumer initiates the 
                remittance transfer, offer to provide in writing, prior 
                to making any payment in connection with the transfer, 
                the information listed in subparagraph (A); and
                  (D) in the case of an exchange rate not fixed on 
                send, the remittance provider shall also disclose, at 
                the time at which the consumer initiates the remittance 
                transfer, the range, using the high and low rates, for 
                the prior 30 day period, that the consumer would have 
                received if a representative amount had been exchanged 
                by the remittance transfer provider, as well as a clear 
                and conspicuous notice that the actual exchange rate 
                may vary.
         If the actual rate used for the transfer is known to the 
        remittance provider, either because such rate was set by the 
        remittance provider itself or because the remittance provider 
        receives confirmation of the actual exchange rate used, the 
        remittance provider shall make available to consumers written 
        or electronic confirmation of the actual exchange rate used and 
        the amount of currency that the recipient or the remittance 
        transfer received, using the values of the currency into which 
        the funds were exchanged. The Commission shall within 2 years 
        after the date of the enactment of the Consumer Financial 
        Protection Commission Act of 2009 prescribe consumer 
        disclosures for transfers with rates not fixed on send that are 
        functionally equivalent to those applicable to remittances 
        where the exchange rate is specified by the remittance transfer 
        provider at the time the consumer initiates the remittance 
        transfer. To the greatest extent possible, the Commission shall 
        ensure that functional equivalence will enable remittance 
        transfer providers to comply with all requirements in this Act 
        and provide consumers with information sufficient to compare 
        services providers, to time their use of the product, to 
        discover errors in transmission and to seek remedies.
          (3) Exemption.--Notwithstanding requirements under paragraph 
        2(A)(ii) or 2(A)(iv) or 2(B)(i), no such disclosure is 
        required--
                  (A) because of the requirements of another law, 
                including the law of another country;
                  (B) because the transfer is being routed through the 
                Directo a Mexico offered by the Federal reserve banks; 
                or
                  (C) because of any other circumstance deemed 
                permissible by regulation of the Commission; If the 
                actual rate used for the transfer is known to the 
                remittance provider, the remittance provider shall make 
                available to consumers written or electronic 
                confirmation of the actual exchange rate used and the 
                amount of currency that the recipient of the remittance 
                transfer received, using the values of the currency 
                into which the funds were exchanged.
          (4) Provision of toll-free number and web access.--
                  (A) In addition to providing the disclosures required 
                by this section to a consumer at a remittance transfer 
                provider location, a remittance transfer provider shall 
                provide a toll-free telephone number or local number, 
                and an Internet website that a consumer can access for 
                which access no remittance transfer provider may assess 
                a charge, to obtain the information required by 
                paragraph (2)(A) for remittance transfers offered by 
                that remittance transfer provider or information about 
                the status of a remittance transfer for which a 
                consumer has made payment.
                  (B) A remittance transfer provider that on an 
                aggregate basis originates 30,000 or fewer transfers on 
                a calendar year basis (or such other amount as may be 
                prescribed by the Commission) is not required to offer 
                the web access prescribed in subparagraph (A), but is 
                required to provide a toll-free telephone number or 
                local number as prescribed in subparagraph (A).
          (5) Alternative methods of disclosure.--Subject to subsection 
        (e)(2), a remittance transfer provider may--
                  (A) if the transaction is conducted entirely by 
                telephone (which shall include, but not be limited to, 
                a mobile telephone) satisfy the requirements of 
                paragraph (2)(A) orally or, at the option of the 
                consumer, electronically through a message sent to the 
                consumer through any electronic means (including, but 
                not limited to, an electronic mail address or a mobile 
                telephone) as designated by the consumer;
                  (B) satisfy the requirements of paragraph (2)(A) 
                electronically if the transfer is initiated by the 
                consumer electronically through the remittance transfer 
                provider's website or through any other electronic 
                means; and
                  (C) satisfy the requirements of paragraph (2)(B) by 
                mailing (or transmitting electronically if the transfer 
                is initiated electronically by the consumer through the 
                remittance transfer provider's website or the consumer 
                otherwise consents in accordance with the provisions of 
                section 101 of the Electronic Signatures in Global and 
                National Commerce Act) the information required under 
                such paragraph to the consumer not later than one 
                business day after the date on which the transaction is 
                conducted, if the transaction is conducted entirely by 
                telephone (or electronically) and the consumer requests 
                a written receipt.
  (b) Written Foreign Language Disclosures.--
          (1) In general.--The disclosures required under subsections 
        (a)(2)(A) and (a)(2)(B)(i) shall be made in English and--
                  (A) at each remittance transfer provider location, 
                shall be made in the same languages principally used by 
                the remittance transfer provider, or any of its agents, 
                to advertise, solicit, or market its remittance 
                transfers business, either orally or in writing, at 
                that location, if other than English, provided that 
                such languages are those for which the Commission has 
                issued model disclosures as provided in subsection (g); 
                or
                  (B) on a remittance transfer provider's website, 
                shall at a minimum be made in any other language for 
                which the Commission has issued model disclosures as 
                provided in subsection (g) if the remittance transfer 
                provider, or any of its agents, advertises, solicits, 
                or markets its remittance transfers business in such 
                language.
          (2) Disputes concerning terms.--If a disclosure is required 
        by this section to be in English and another language, the 
        English version of the disclosure shall govern any dispute 
        concerning the terms of the receipt. However, any discrepancies 
        between the English version and any other version due to the 
        translation of the receipt from English to another language 
        including errors or ambiguities shall be construed against the 
        remittance transfer provider or its agent and the remittance 
        transfer provider or its agent shall be liable for any damages 
        caused by these discrepancies.
  (c) Remittance Transfer Cancellations, Refunds, and Errors.--
          (1) Cancellations.--
                  (A) After receiving the receipt required under 
                subsection (a)(2)(B), a consumer may cancel the 
                currency transaction--
                          (i) before leaving the premises of the 
                        remittance transfer provider where the consumer 
                        received the receipt, and
                          (ii) not later than 30 minutes after the time 
                        the consumer initiated the remittance transfer 
                        with the remittance transfer provider.
                  (B) If a consumer cancels the transaction, the 
                remittance transfer provider shall immediately refund 
                to the consumer the fees paid and the currency to be 
                transferred, and issue a receipt indicating that the 
                transaction has been cancelled.
                  (C) A consumer may not cancel a remittance transfer 
                after the remittance transfer provider has sent the 
                funds to the recipient.
                  (D) A remittance transfer provider shall not be 
                required to provide a refund if providing a refund 
                would violate State or Federal law.
          (2) Refunds.--
                  (A) If a remittance transfer provider receives 
                written notice from the consumer within ten days of the 
                promised date of delivery of a remittance transfer that 
                no amount of the funds to be remitted was made 
                available to the designated recipient in the foreign 
                country, the remittance transfer provider shall--
                          (i) refund to the consumer the total amount 
                        in U.S. dollars that was paid by the consumer 
                        in connection with such remittance transfer;
                          (ii) promptly transmit the remittance 
                        transfer in accordance with the terms in the 
                        written receipt provided to the consumer 
                        pursuant to subsection (a)(2)(B);
                          (iii) provide such other remedy, as 
                        determined appropriate by rule of the 
                        Commission for the protection of consumers; or
                          (iv) demonstrate to the consumer that the 
                        proceeds of the remittance transfer were made 
                        available to the recipient of the remittance 
                        provider.
                  (B) A remittance transfer provider shall not be 
                required to provide a refund if providing a refund 
                would violate State or Federal law.
          (3) Error resolution.--
                  (A) In general.--If a remittance transfer provider 
                receives written notice from the consumer within 60 
                days of the promised date of delivery that an error 
                occurred with respect to a remittance transfer, 
                including that the full amount of the funds to be 
                remitted was not made available to the designated 
                recipient in the foreign country, the remittance 
                transfer provider shall resolve the error pursuant to 
                this paragraph.
                  (B) Remedies.--Not later than 120 days after the date 
                of receipt of a notice from the consumer pursuant to 
                subparagraph (A), the remittance transfer provider 
                shall--
                          (i) as applicable to the error and as 
                        designated by the consumer--
                                  (I) refund to the consumer the total 
                                amount in U.S. dollars that was paid by 
                                the consumer in connection with the 
                                remittance transfer that was not 
                                properly transmitted;
                                  (II) make available to the designated 
                                recipient, without additional cost to 
                                the designated recipient or to the 
                                consumer, the amount appropriate to 
                                resolve the error;
                                  (III) provide such other remedy, as 
                                determined appropriate by regulation of 
                                the Commission for the protection of 
                                consumers; or
                          (ii) demonstrate to the consumer that there 
                        was no error.
          (4) Regulations.--The Commission, in order to protect 
        consumers, shall establish, by regulation, clear and 
        appropriate standards for remittance transfer providers with 
        respect to error resolution, cancellation and refunds.
  (d) Enforcement Authority.--The Commission shall have the sole 
authority to enforce the provisions of this section, and any 
regulations established pursuant to this section.
  (e) Applicability of Other Provisions of Law.--
          (1) Applicability of title 18 and title 31 provisions.--A 
        remittance transfer provider that is a money transmitting 
        business as defined in section 5330 of title 31, United States 
        Code, may provide remittance transfers only if such provider is 
        in compliance with the requirements of section 5330 of title 
        31, United States Code, and section 1960 of title 18, United 
        States Code, as applicable.
          (2) Rule of construction.--Nothing in this section shall be 
        construed--
                  (A) to affect the application to any transaction, to 
                any remittance provider, or to any other person of any 
                of the provisions of subchapter II of chapter 53 of 
                title 31, United States Code, section 21 of the Federal 
                Deposit Insurance Act, or chapter 2 of title I of 
                Public Law 91-508, or any regulations promulgated 
                thereunder; or
                  (B) to cause any fund transfer that would not 
                otherwise be treated as such under paragraph (2) to be 
                treated as an electronic fund transfer, or as otherwise 
                subject to this title, for the purposes of any of the 
                provisions referred to in subparagraph (A) or any 
                regulation prescribed under such subparagraph.
  (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Depository institution.--the term ``depository 
        institution'' has the same meaning as in section 3 of the 
        Federal Deposit Insurance Act and includes a credit union.
          (2) Not fixed on send.--The term ``not fixed on send'' when 
        referring to an exchange rate used in a remittance transfer 
        means an exchange rate that is not set by the remittance 
        transfer provider at the time the consumer initiates the 
        remittance transfer.
          (3) Remittance transfer.--The term ``remittance transfer'' 
        means the electronic (as defined in section 106(2) of the 
        Electronic Signatures in Global and National Commerce Act) 
        transfer of funds at the request of a consumer located in any 
        State to a person in another country that is initiated by a 
        remittance transfer provider, whether or not the consumer is an 
        account holder of the remittance transfer provider or whether 
        or not the remittance transfer is also an electronic fund 
        transfer, as defined in section 903 of the Electronic Fund 
        Transfer Act.
          (4) Remittance transfer provider.--The term ``remittance 
        transfer provider'' means any person or depository institution, 
        or agent thereof, that originates remittance transfers on 
        behalf of consumers in the normal course of its business, 
        whether or not the consumer is an account holder of that person 
        or depository institution.
  (g) Model Disclosures.--
          (1) Publication.--Notwithstanding any provisions of this 
        title, the Commission shall establish and publish model 
        disclosure forms to facilitate compliance with the disclosure 
        requirements of this section and to aid the consumer in 
        understanding the transaction to which the subject disclosure 
        form relates.
          (2) Languages to be used in model disclosures.--The 
        Commission shall make these disclosures available within one 
        year of the effective date of this Act--
                  (A) in English, and
                  (B) the ten most frequently spoken languages in the 
                United States, other than English, used by consumers 
                initiating remittance transfers, as may be determined 
                by the Commission.
          (3) Use of automated equipment.--In establishing model forms 
        under this subsection, the Commission shall consider the use by 
        lessors of data processing or similar automated equipment.
          (4) Use optional.--A remittance transfer provider may utilize 
        a model disclosure form established by the Commission under 
        this subsection for purposes of compliance with this section, 
        at the discretion of the remittance transfer provider.
          (5) Effect of use.--Any remittance transfer provider that 
        properly uses the material aspects of any model disclosure form 
        established by the Commission under this subsection shall be 
        deemed to be in compliance with the disclosure requirements to 
        which the form relates.
  (h) Regulation and Exemption Authority.--Notwithstanding any other 
provisions of this title, the Commission, in consultation with relevant 
Federal and State government agencies may by regulation exempt from one 
or more requirements of this section, any category of remittance 
transfer provider if the Commission determines that under applicable 
Federal or State law that such category of remittance transfer provider 
is subject to requirements substantially similar to those imposed under 
this section or that such law gives greater protection and benefit to 
the consumer, and that there is adequate provision for enforcement.
  (i) Applicability of State Law.--
          (1) This section does not annul, alter, affect, or exempt any 
        person subject to the provisions of this section from complying 
        with other applicable Federal law and the laws of any State 
        relating to remittance transfers and remittance transfer 
        providers, except to the extent that those laws are 
        inconsistent with the provisions of this section, and then only 
        to the extent of the inconsistency.
          (2) Notwithstanding any other provisions of this title, the 
        Commission may determine whether such inconsistencies exist. A 
        State law is not inconsistent with this section if the 
        protection such law affords any consumer is greater than the 
        protection afforded by this section. If the Commission 
        determines that a State requirement is inconsistent, remittance 
        transfer providers shall incur no liability under the law of 
        that State for a good faith failure to comply with that law, 
        notwithstanding that such determination is subsequently 
        amended, rescinded, or determined by judicial or other 
        authority to be invalid for any reason. This section does not 
        extend the applicability of any such law to any class of 
        persons or transactions to which it would not otherwise apply.
          (3) This section does not annul, alter, or affect the laws of 
        any State relating to the licensing or registration, 
        supervision or examination of remittance transfer providers.
          (4) Nothing in this section shall be construed as limiting 
        the authority of a State attorney general or State regulator to 
        bring an action or other regulatory proceeding arising solely 
        under the law of that State.
  (j) Federal Credit Union Act Amendment.--Paragraph (12)(A) of section 
107 of the Federal Credit Union Act (12 U.S.C. 1757(12)(A)) is amended 
by inserting ``and remittance transfers, as defined in section 139 of 
the Consumer Financial Protection Commission Act of 2009'' after ``and 
domestic electronic fund transfers''.
  (k) Automated Clearinghouse System.--
          (1) Expansion of system.--The Board of Governors of the 
        Federal Reserve System shall work with the Federal reserve 
        banks to expand the use of the automated clearinghouse system 
        for remittance transfers to foreign countries, with a focus on 
        countries that receive significant remittance transfers from 
        the United States, based on--
                  (A) the volume and dollar amount of remittance 
                transfers to those countries;
                  (B) the significance of the volume of such transfers, 
                relative to the external financial flows of the 
                receiving country; and
                  (C) the feasibility of such an expansion.
          (2) Report to the congress.--Before the end of the 180-day 
        period beginning on the date of the enactment of this Act, and 
        on April 30 biennially thereafter, the Board of Governors of 
        the Federal Reserve System shall submit a report to the 
        Commission, the Committee on Banking, Housing, and Urban 
        Affairs of the Senate, and the Committee on Financial Services 
        of the House of Representatives on the status of the automated 
        clearinghouse system and its progress in complying with the 
        requirements of this section.
  (l) Regulatory Guidance on Remittance Transfers.--
          (1) Provision of guidelines to institutions.--The Commission 
        shall provide guidelines to all remittance transfer providers 
        regarding--
                  (A) the offering of low-cost remittance transfers;
                  (B) the availability of agency services to remittance 
                transfer providers;
                  (C) compliance with the provisions of this Act; and
                  (D) specific options that allow remittance transfer 
                providers to take advantage of automated clearing 
                systems, including the FedACH International Services 
                offered by the Board of Governors of the Federal 
                Reserve System and the Federal reserve banks, to 
                transmit remittances at low cost.
          (2) Content of guidelines.--Guidelines provided to remittance 
        transfer providers under this section shall include--
                  (A) information as to the methods of providing 
                remittance transfer services;
                  (B) the potential economic opportunities in providing 
                low-cost remittance transfers; and
                  (C) the potential value to depository institutions of 
                broadening their financial bases to include persons 
                that use remittance transfers.
          (3) Assistance to financial literacy commission.--The 
        Secretary of the Treasury and each agency referred to in 
        subsection (a) shall, as part of their duties as members of the 
        Financial Literacy and Education Commission, assist that 
        Commission in improving the financial literacy and education of 
        consumers who send remittances.
  (m) Report on Feasibility of and Impediments to Use of Remittance 
History in Calculation of Credit Score.--Before the end of the 365-day 
period beginning on the date of the enactment of this Act, the 
Commission shall submit a report to the President, the Committee on 
Banking, Housing, and Urban Affairs of the Senate, and the Committee on 
Financial Services of the House of Representatives regarding--
          (1) the manner in which a consumer's remittance history could 
        be used to enhance a consumer's credit score;
          (2) the current legal and business model barriers and 
        impediments that impede the use of a consumer's remittance 
        history to enhance the consumer's credit score; and
          (3) recommendations on the manner in which maximum 
        transparency and disclosure to consumers of exchange rates for 
        remittance transfers subject to this Act may be accomplished, 
        whether or not such exchange rates are known at the time of 
        origination or payment by the consumer for the remittance 
        transfer, including disclosure to the sender of the actual 
        exchange rate used and the amount of currency that the 
        recipient of the remittance transfer received, using the values 
        of the currency into which the funds were exchanged, as 
        contained in sections 919(a)(2)(D) and 919(a)(3) of the 
        Electronic Fund Transfer Act (as amended by subsection (a)).
  (n) Effective Date.--This section shall apply with respect to 
remittance transfers made after the end of the 180-day period beginning 
on the date of the enactment of this Act.

SEC. 140. EFFECTIVE DATE.

  This subtitle shall take effect on the designated transfer date.

SEC. 140A. NO AUTHORITY TO REQUIRE THE OFFERING OF FINANCIAL PRODUCTS 
                    OR SERVICES.

  The Commission may not prescribe any regulation, issue any order or 
guidance, or take any other action, including any enforcement action, 
the effect of which would be to require a covered person to offer to 
any consumer a specific financial product or service.

SEC. 140B. APPRAISAL INDEPENDENCE REQUIREMENTS.

  (a) Promulgation of New Requirements.--The Commission shall lead a 
Negotiated Rulemaking Committee under the Federal Advisory Committee 
Act and the Negotiated Rulemaking Act to promulgate appraisal 
independence requirements for residential loan purposes, and such 
Committee shall promulgate such requirements not later than the end of 
the 60-day period beginning on the date of the enactment of this Act.
  (b) Certain Regulation Requirements.--Regulations promulgated by the 
Negotiated Rulemaking Committee under this section shall not prohibit 
lenders, the Federal National Mortgage Association, or the Federal Home 
Loan Mortgage Corporation from accepting any appraisal report completed 
by an appraiser selected, retained, or compensated in any manner by a 
mortgage loan originator--
          (1) licensed or registered in accordance with section 1501 et 
        seq. of the SAFE Mortgage Licensing Act of 2008; and
          (2) subject to State or Federal laws that make it unlawful 
        for a mortgage loan originator to make any payment, threat, or 
        promise, directly or indirectly, to any appraiser of a 
        property, for the purposes of influencing the independent 
        judgment of the appraiser with respect to the value of the 
        property, except that nothing in this section shall prohibit a 
        person with an interest in a real estate transaction from 
        asking an appraiser to--
                  (A) consider additional, appropriate property 
                information;
                  (B) provide further detail, substantiation, or 
                explanation for the appraiser's value conclusion; or
                  (C) correct errors in the appraisal report.
  (c) Sunset.--Effective on the date the appraisal independence 
requirements are promulgated pursuant to subsection (a), the Home 
Valuation Code of Conduct announced by the Federal Housing Finance 
Agency on December 23, 2008, shall have no force or effect.

                 Subtitle D--Preservation of State Law

SEC. 141. 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, except to the extent that such statute, regulation, 
        order, or interpretation is inconsistent with the provisions of 
        this title and then only to the extent of the inconsistency.
          (2) Greater protection under state law.--For the 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 protection such statute, 
        regulation, order, or interpretation affords consumers is 
        greater than the protection provided under this title. A 
        determination regarding whether a statute, regulation, order, 
        or interpretation in effect in any State is inconsistent with 
        the provisions of this title may be made by the Commission on 
        its own motion or in response to a nonfrivolous petition 
        initiated by any interested person.
  (b) Relation to Other Provisions of Enumerated Consumer Laws That 
Relate to State Law.--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 application of a law in 
effect in any State with respect to such Federal law.

SEC. 142. 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 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 
        regulations 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 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 regulatory proceeding 
                against any covered person to enforce any provision of 
                this title, including any regulation prescribed by the 
                Commission 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 Commission, 
                or the Commission's designee.
                  (B) Emergency action.--If prior notice is not 
                practicable, the State attorney general or State 
                regulator shall provide a copy of the complete 
                complaint and the notice to the Commission immediately 
                upon instituting the action or proceeding.
                  (C) Contents of notice.--The notification required 
                under this section 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, including 
                        any rulemaking, undertaken by the Commission or 
                        another Federal agency.
          (2) Commission response.--In any action described in 
        paragraph (1), the Commission may--
                  (A) intervene in the action as a party;
                  (B) upon intervening--
                          (i) remove the action to the appropriate 
                        United States district court, if the 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 proceeding may.
  (c) Regulations.--The Commission shall prescribe regulations to 
implement the requirements of this section and, from time to time, 
provide guidance in order to further coordinate 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 limiting the authority of a State attorney general 
        or State regulator to bring an action or other regulatory 
        proceeding arising solely under the law of that State.
          (2) State securities regulators.--No provision of this title 
        shall be construed as altering, limiting, 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 with respect to a person regulated by such commission or 
        authority.
          (3) State insurance regulators.--No provision of this title 
        shall be construed as altering, limiting, 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. 143. PRESERVATION OF EXISTING CONTRACTS.

  This title, and regulations, orders, guidance, and interpretations 
prescribed, issued, and established by the Commission, shall not be 
construed to alter or affect the applicability 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 the enactment of this Act, by national banks, Federal savings 
associations, or subsidiaries thereof that are regulated and supervised 
by the Comptroller of the Currency or the Director of the Office of 
Thrift Supervision, respectively.

SEC. 144. STATE LAW PREEMPTION STANDARDS FOR NATIONAL BANKS AND 
                    SUBSIDIARIES CLARIFIED.

  (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 NATIONAL BANKS AND 
                    SUBSIDIARIES CLARIFIED.

  ``(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 accordance 
                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 manner, content, or terms and conditions of 
        any financial transaction (as may be authorized for national 
        banks to engage in), or any account related thereto, with 
        respect to a consumer.
          ``(3) Other definitions.--The terms `affiliate', 
        `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 generally comply with 
        State laws. State laws are preempted 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 determines by 
                regulation or order on a case-by-case basis that a 
                State law prevents or significantly 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 Federal law other 
                than this Act.
          ``(2) Savings clause.--This Act does not preempt or alter the 
        applicability of any State law to any national bank subsidiary, 
        affiliate, or other entity that is not an insured depository 
        institution chartered 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 preempted 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 preempted 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 subsection 
        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 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 proceeding, supports 
the specific finding that the provision prevents or significantly 
interferes with the national bank's exercise of a power explicitly 
granted by the Congress.
  ``(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 consultation with the Consumer Financial Protection Commission, 
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 authority that is subject to such provision of 
the State consumer financial law.
  ``(e) Periodic Review of Preemption Determinations.--The Comptroller 
of the Currency shall periodically conduct a review, through notice 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 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 propose to 
continue, amend or rescind it, as may be appropriate, in accordance 
with the procedures set forth in subsections (a) and (b) of section 
5244 (12 U.S.C. 43(a)-(b)).
  ``(f) Application of State Consumer Financial Law to Subsidiaries and 
Affiliates.--Notwithstanding any provision of this title, a State 
consumer financial 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:

``Sec. 5136C. State law preemption standards for national banks and 
subsidiaries clarified.''.

SEC. 145. VISITORIAL STANDARDS.

  Section 5136C of the Revised Statutes of the United States (as added 
by section 144) is amended by adding at the end the following new 
subsections:
  ``(h) Visitorial Powers.--
          ``(1) Rule of construction.--No provision of this title which 
        relates to visitorial powers or otherwise limits or restricts 
        the supervisory, examination, or regulatory 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 any action 
        in any court of appropriate jurisdiction--
                  ``(A) to require a national bank to produce records 
                relative to the investigation of violations of State 
                consumer law, or Federal consumer laws;
                  ``(B) to enforce any applicable Federal or State law, 
                as authorized by such law; or
                  ``(C) on behalf of residents of such State, to 
                enforce any applicable provision of any Federal or 
                State law against a national bank, as authorized by 
                such law, or to seek relief and recover damages for 
                such residents from any violation of any such law by 
                any national bank.
          ``(2) Consultation.--The attorney general (or other chief law 
        enforcement officer) of any State shall consult with the head 
        of the agency responsible for chartering and regulating 
        national banks before acting under paragraph (1).
  ``(i) Enforcement Actions.--The ability of the head of the agency 
responsible for chartering and regulating national banks to bring an 
enforcement action under this title or section 5 of the Federal Trade 
Commission Act shall not be construed as precluding private parties 
from enforcing rights granted under Federal or State law in the 
courts.''.

SEC. 146. CLARIFICATION OF LAW APPLICABLE TO NONDEPOSITORY INSTITUTION 
                    SUBSIDIARIES.

  Section 5136C of the Revised Statutes of the United States is amended 
by inserting after subsection (i) (as added by section 145) the 
following new subsection:
  ``(j) Clarification of Law Applicable to Nondepository Institution 
Subsidiaries and Affiliates of National Banks.--
          ``(1) Definitions.--For purposes of this section, the 
        following definitions shall apply:
                  ``(A) Depository institution, subsidiary, 
                affiliate.--The terms `depository institution', 
                `subsidiary', and `affiliate' have the same meanings as 
                in section 3 of the Federal Deposit Insurance Act.
                  ``(B) Nondepository institution.--The term 
                `nondepository institution' means any entity that is 
                not a depository institution.
          ``(2) In general.--No provision of this title shall be 
        construed as annulling, altering, or affecting the 
        applicability of State law to any nondepository institution, 
        subsidiary, other affiliate, or agent of a national bank.''.

SEC. 147. STATE LAW PREEMPTION STANDARDS FOR FEDERAL SAVINGS 
                    ASSOCIATIONS AND SUBSIDIARIES 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 FEDERAL SAVINGS 
                    ASSOCIATIONS CLARIFIED.

  ``(a) State Consumer Financial Law Defined.--For purposes of this 
section, the term `State consumer financial law' means a State law that 
does not directly or indirectly discriminate against Federal savings 
associations and that regulates the manner, content, or terms and 
conditions of any financial transaction (as may be authorized for 
Federal savings associations to engage in), or any account related 
thereto, with respect to a consumer.
  ``(b) Preemption Standard.--
          ``(1) In general.--Federal savings associations shall 
        generally comply with State laws. State laws are preempted only 
        if--
                  ``(A) application of a state law would have a 
                discriminatory effect on Federal savings associations 
                in comparison with the effect of the law on a bank 
                chartered by that State;
                  ``(B) the Director of the Office of Thrift 
                Supervision determines by regulation or order on a 
                case-by-case basis that a State law prevents or 
                significantly interferes with the ability of an insured 
                depository institution chartered as a Federal savings 
                associations to engage in the business of banking; or
                  ``(C) the State law is preempted by Federal law other 
                than this Act.
          ``(2) Savings clause.--This Act does not preempt or alter the 
        applicability of any State law to any Federal savings 
        associations subsidiary, affiliate, or other entity that is not 
        an insured depository institution chartered 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 preempted 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 preempted 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 subsection 
        shall affect the deference that a court affords to the Director 
        of the Office of Thrift Supervision regarding the meaning or 
        interpretation of the National Bank Act or other Federal laws.
  ``(c) Other Federal Law.--Notwithstanding any other provision of law, 
the Director of the Office of Thrift Supervision may not prescribe any 
regulation pursuant to subsection (b)(1)(B) until such Director, after 
consultation with the Consumer Financial Protection Commission, makes a 
finding, in writing, that a Federal law provides a substantive 
standard, applicable to a Federal savings association, which regulates 
the particular conduct, activity, or authority that is subject to such 
provision of the State consumer financial law.
  ``(d) Substantial Evidence.--No regulation prescribed by the Director 
of the Office of Thrift Supervision issued under subsection (b)(1)(B) 
shall be interpreted or applied so as to invalidate, or otherwise 
declare inapplicable to a Federal savings association, the provision of 
the State consumer financial law unless substantial evidence, made on 
the record of the proceeding, supports the specific finding that the 
provision prevents or significantly interferes with the Federal savings 
association's exercise of a power explicitly granted by the Congress.
  ``(e) Periodic Review of Preemption Determinations.--The Director of 
the Office of Thrift Supervision shall periodically conduct a review, 
through notice 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 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 propose to continue, amend or rescind it, as may be 
appropriate, in accordance 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)).
  ``(f) Application of State Consumer Financial Law to Subsidiaries and 
Affiliates.--Notwithstanding any provision of this Act, a State 
consumer financial law shall apply to a subsidiary or affiliate of a 
Federal savings association to the same extent that the State consumer 
financial law applies to any person, corporation, or other entity 
subject to such State law and consistent with Federal 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 inserting the following new item:

``Sec. 6. State law preemption standards for Federal savings 
associations and subsidiaries clarified.''.

SEC. 148. VISITORIAL STANDARDS.

  Section 6 of the Home Owners' Loan Act (as added by section 147 of 
this title) is amended by adding at the end the following new 
subsections:
  ``(h) Visitorial Powers.--
          ``(1) In general.--No provision of this Act shall be 
        construed as limiting or restricting the authority of any 
        attorney general (or other chief law enforcement officer) of 
        any State to bring any action in any court of appropriate 
        jurisdiction--
                  ``(A) to require a Federal savings association to 
                produce records relative to the investigation of 
                violations of State consumer law, or Federal consumer 
                laws;
                  ``(B) to enforce any applicable Federal or State law, 
                as authorized by such law; or
                  ``(C) on behalf of residents of such State, to 
                enforce any applicable provision of any Federal or 
                State law against a Federal savings association, as 
                authorized by such law, or to seek relief and recover 
                damages for such residents from any violation of any 
                such law by any Federal savings association.
          ``(2) Consultation.--The attorney general (or other chief law 
        enforcement officer) of any State shall consult with the 
        Director or any successor agency before acting under paragraph 
        (1).
  ``(i) Enforcement Actions.--The ability of the Director or any 
successor officer or agency to bring an enforcement action under this 
Act or section 5 of the Federal Trade Commission Act shall not be 
construed as precluding private parties from enforcing rights granted 
under Federal or State law in the courts.''.

SEC. 149. CLARIFICATION OF LAW APPLICABLE TO NONDEPOSITORY INSTITUTION 
                    SUBSIDIARIES.

  Section 6 of the Home Owners' Loan Act is amended by adding after 
subsection (i) (as added by section 148) the following new subsection:
  ``(j) Clarification of Law Applicable to Nondepository Institution 
Subsidiaries and Affiliates of Federal Savings Associations.--
          ``(1) Definitions.--For purposes of this section, the 
        following definitions shall apply:
                  ``(A) Depository institution, subsidiary, 
                affiliate.--The terms `depository institution', 
                `subsidiary', and `affiliate' have the same meanings as 
                in section 3 of the Federal Deposit Insurance Act.
                  ``(B) Nondepository institution.--The term 
                `nondepository institution' means any entity that is 
                not a depository institution.
          ``(2) In general.--No provision of this title shall be 
        construed as preempting the applicability of State law to any 
        nondepository institution, subsidiary, other affiliate, or 
        agent of a Federal savings association.''.

SEC. 150. EFFECTIVE DATE.

  This subtitle shall take effect on the designated transfer date.

                     Subtitle E--Enforcement Powers

SEC. 151. DEFINITIONS.

  For purposes of this subtitle, the following definitions shall apply:
          (1) Civil investigative demand and demand.--The terms ``civil 
        investigative demand'' and ``demand'' mean any demand issued by 
        the Commission.
          (2) Commission investigation.--The term ``Commission 
        investigation'' means any inquiry conducted by an Commission 
        investigator for the purpose of ascertaining whether any person 
        is or has been engaged in any conduct that violates this title, 
        any enumerated consumer law, or any regulation prescribed or 
        order issued by the Commission under this title or under the 
        authorities transferred under subtitles F and H.
          (3) Commission investigator.--The term ``Commission 
        investigator'' means any attorney or investigator employed by 
        the Commission who is charged with the duty of enforcing or 
        carrying into effect any provisions of this title, any 
        enumerated consumer law, the authorities transferred under 
        subtitles F and H, or any regulation prescribed or order issued 
        under this title or pursuant to any such authority by the 
        Commission.
          (4) Custodian.--The term ``custodian'' means the custodian or 
        any deputy custodian designated by the Commission.
          (5) Documentary material.--The term ``documentary material'' 
        includes the original or any copy of any book, document, 
        record, report, memorandum, paper, communication, tabulation, 
        chart, log, electronic file, 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 this title, any enumerated consumer law, any law 
        for which authorities were transferred under subtitles F and H, 
        or of any regulation prescribed or order issued by the 
        Commission under this title or pursuant to any such authority.

SEC. 152. INVESTIGATIONS AND ADMINISTRATIVE DISCOVERY.

  (a) Joint Investigations.--
          (1) In general.--The Commission or, where appropriate, an 
        Commission representative may engage in joint investigations 
        and requests for information.
          (2) Fair lending.--The authority under paragraph (1) includes 
        matters relating to fair lending, and where appropriate, joint 
        investigations and requests for information with the Secretary 
        of Housing and Urban Development, the Attorney General, or 
        both.''
  (b) Subpoenas.--
          (1) In general.--The Commission or a Commission investigator 
        may issue subpoenas for the attendance and testimony of 
        witnesses and the production of relevant papers, books, 
        documents, or other material in connection with hearings under 
        this title.
          (2) Failure to obey.--In case of contumacy 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 
        business, upon application by the Commission or a Commission 
        investigator and after notice to such person, shall have 
        jurisdiction to issue an order requiring such person to appear 
        and give testimony or to appear and produce documents or other 
        material, or both.
          (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 Commission has reason to 
        believe that any person may be in possession, custody, or 
        control of any documentary material or tangible things, or may 
        have any information, relevant to a violation, the Commission 
        may, before the institution of any proceedings under this title 
        or under any enumerated consumer law or pursuant to the 
        authorities transferred under subtitles F and H, issue in 
        writing, and cause to be served upon such person, a civil 
        investigative demand requiring such person to--
                  (A) produce such documentary material for inspection 
                and copying or reproduction in the form or medium 
                requested by the Commission;
                  (B) submit such tangible things;
                  (C) file written reports or answers to questions;
                  (D) give oral testimony concerning documentary 
                material or other information; or
                  (E) furnish any combination of such material, 
                answers, or testimony.
          (2) Requirements.--Each civil investigative demand shall 
        state the nature of the conduct constituting the alleged 
        violation which is under investigation and the provision of law 
        applicable to such violation.
          (3) Production of documents.--Each civil investigative demand 
        for the production of documentary material shall--
                  (A) describe each class of documentary material 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 assembled and made 
                available for inspection and copying or reproduction; 
                and
                  (C) identify the custodian to whom such material 
                shall be made available.
          (4) Production of things.--Each civil investigative demand 
        for the submission of tangible things shall--
                  (A) describe each class of tangible things to be 
                submitted under the demand with such definiteness 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 answers.--Each civil 
        investigative demand for written reports or answers to 
        questions shall--
                  (A) propound with definiteness and certainty 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 reports 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
                  (B) identify a Commission investigator who shall 
                conduct the investigation and the custodian to whom the 
                transcript of such investigation shall be submitted.
          (7) Service.--
                  (A) Any civil investigative demand may be served by 
                any Commission investigator at any place within the 
                territorial jurisdiction of any court of the United 
                States.
                  (B) Any such demand or any enforcement petition filed 
                under this section may be served upon any person who is 
                not found within the territorial jurisdiction of any 
                court of the United States, in such manner as the 
                Federal Rules of Civil Procedure prescribe for service 
                in a foreign nation.
                  (C) To the extent that the courts of the United 
                States have authority to assert jurisdiction 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 action respecting 
                compliance with this section by such person that such 
                district court would have if such person were 
                personally 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 its 
                principal office or place of business.
          (9) Proof of service.--
                  (A) A verified return by the individual serving any 
                civil investigative demand or any enforcement petition 
                filed under this section setting forth the manner of 
                such service shall be proof of such service.
                  (B) In the case of service by registered or certified 
                mail, such return shall be accompanied by the return 
                post office receipt of delivery of such demand or 
                enforcement petition.
          (10) Production of documentary material.--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 person, by any 
        person having knowledge of the facts and circumstances relating 
        to such production, to the effect 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 
        the facts and circumstances relating to such production, to the 
        effect that all of the tangible things required by the demand 
        and in the possession, custody, or control of the person to 
        whom the demand is directed have been submitted to the 
        custodian.
          (12) Separate answers.--Each reporting requirement 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 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 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 directed has been submitted.
          (13) Testimony.--
                  (A) Procedure.--
                          (i) Oath and recordation.--Any Commission 
                        investigator before whom oral testimony is to 
                        be taken shall put the witness on oath or 
                        affirmation and shall personally, or by any 
                        individual acting under the direction of and in 
                        the presence of the investigator, record the 
                        testimony of the witness.
                          (ii) Transcriptions.--The testimony shall be 
                        taken stenographically and transcribed.
                          (iii) Copy to custodian.--After the testimony 
                        is fully transcribed, the Commission 
                        investigator before whom the testimony is taken 
                        shall promptly transmit a copy of the 
                        transcript of the testimony to the custodian.
                  (B) Parties present.--Any Commission investigator 
                before whom oral testimony is to be taken shall exclude 
                from the place where the testimony is to be taken all 
                other persons except the person giving the testimony, 
                the attorney for such person, the officer before whom 
                the testimony is to be taken, an investigator or 
                representative of an agency with which the Commission 
                is engaged in a joint investigation, and any 
                stenographer taking such testimony.
                  (C) Location.--The oral testimony of any person taken 
                pursuant to a civil investigative demand shall be taken 
                in the judicial district of the United States in which 
                such person resides, is found, or transacts business, 
                or in such other place as may be agreed upon by the 
                Commission investigator before whom the oral testimony 
                of such person is to be taken and such person.
                  (D) Attorney representation.--
                          (i) In general.--Any person compelled to 
                        appear under a civil investigative demand for 
                        oral testimony pursuant to this section may be 
                        accompanied, represented, and advised by an 
                        attorney.
                          (ii) Confidential advice.--The attorney may 
                        advise the person summoned, in confidence, 
                        either upon the request of such person or upon 
                        the initiative of the attorney, with respect to 
                        any question asked of such person.
                          (iii) Objections.--The person summoned or the 
                        attorney may object on the record to any 
                        question, in whole or in part, and shall 
                        briefly state for the record the reason for the 
                        objection.
                          (iv) Refusal to answer.--An objection may 
                        properly be made, received, and entered upon 
                        the record when it is claimed that the person 
                        summoned is entitled to refuse to answer the 
                        question on grounds of any constitutional or 
                        other legal right or privilege, including the 
                        privilege against self-incrimination, but such 
                        person shall not otherwise object to or refuse 
                        to answer any question, and shall not otherwise 
                        interrupt the oral examination, directly or 
                        through such person's attorney.
                          (v) Petition for order.--If such person 
                        refuses to answer any question, the Commission 
                        may petition the district court of the United 
                        States pursuant to this section for an order 
                        compelling such person to answer such question.
                          (vi) Basis for compelling testimony.--If such 
                        person refuses to answer any question on 
                        grounds of the privilege against self-
                        incrimination, the testimony of such person may 
                        be compelled in accordance with the provisions 
                        of section 6004 of title 18, United States 
                        Code.
                  (E) Transcripts.--
                          (i) Right to examine.--After the testimony of 
                        any witness is fully transcribed, the 
                        Commission investigator shall afford the 
                        witness (who may be accompanied by an attorney) 
                        a reasonable opportunity to examine the 
                        transcript.
                          (ii) Reading the transcript.--The transcript 
                        shall be read to or by the witness, unless such 
                        examination and reading are waived by the 
                        witness.
                          (iii) Request for changes.--Any changes in 
                        form or substance which the witness desires to 
                        make shall be entered and identified upon the 
                        transcript by the Commission investigator with 
                        a statement of the reasons given by the witness 
                        for making such changes.
                          (iv) Signature.--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.
                          (v) Commission action in lieu of signature.--
                        If the transcript is not signed by the witness 
                        during the 30-day period following the date 
                        upon which the witness is first afforded a 
                        reasonable opportunity to examine it, the 
                        Commission 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, together with any reasons 
                        given for the failure to sign.
                  (F) Certification by investigator.--The Commission 
                investigator shall certify on the transcript that the 
                witness was duly sworn by the investigator and that the 
                transcript is a true record of the testimony given by 
                the witness, and the Commission investigator shall 
                promptly deliver the transcript or send it by 
                registered or certified mail to the custodian.
                  (G) Copy of transcript.--The Commission investigator 
                shall furnish a copy of the transcript (upon payment of 
                reasonable charges for the transcript) to the witness 
                only, except that the Commission may for good cause 
                limit such witness to inspection of the official 
                transcript of the testimony of such witness.
                  (H) Witness fees.--Any witness appearing 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 witnesses in the district 
                courts of the United States.
  (d) Confidential Treatment of Demand Material.--
          (1) In general.--Materials received as a result of a civil 
        investigative demand shall be subject to requirements and 
        procedures regarding confidentiality, in accordance with 
        regulations established by the Commission.
          (2) Disclosure to congress.--No regulation established by the 
        Commission regarding the confidentiality of materials submitted 
        to, or otherwise obtained by, the Commission shall be intended 
        to prevent disclosure to either House of the Congress or to an 
        appropriate committee of the Congress, except that the 
        Commission may prescribe regulations allowing prior notice to 
        any party that owns or otherwise provided the material to the 
        Commission and has designated such material as confidential.
  (e) Petition for Enforcement.--
          (1) In general.--Whenever any person fails to comply with any 
        civil investigative demand duly served upon such person under 
        this section, or whenever satisfactory copying or reproduction 
        of material requested pursuant to the demand cannot be 
        accomplished and such person refuses to surrender such 
        material, the Commission, through such officers or attorneys as 
        the Commission may designate, may file, in the district court 
        of the United States for any judicial district in which such 
        person 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 district.
  (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 before the return date specified in the 
        demand, whichever 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 service, by 
        any Commission investigator named in the demand, such person 
        may file with the Commission a petition for an order by the 
        Commission modifying or setting aside the demand.
          (2) Compliance during pendency.--The time permitted for 
        compliance with the demand in whole or in part, as deemed 
        proper and ordered by the Commission, shall not run during the 
        pendency of such petition at the Commission, except that such 
        person shall comply with any portions of the demand not sought 
        to be modified or set aside.
          (3) Specific grounds.--Such petition shall specify each 
        ground upon which the petitioner relies in seeking such 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 compliance 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 such custodian by this section or regulation prescribed by 
the Commission.
  (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 order or orders as may be 
        required to carry into effect the provisions of this section.
          (2) Appeal.--Any final order so entered shall be subject to 
        appeal pursuant to section 1291 of title 28, United States 
        Code.

SEC. 153. HEARINGS AND ADJUDICATION PROCEEDINGS.

  (a) In General.--The Commission may conduct 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 
compliance with--
          (1) the provisions of this title, including any regulations 
        prescribed by the Commission under this title; and
          (2) any other Federal law that the Commission is authorized 
        to enforce, including an enumerated consumer law, and any 
        regulations or order prescribed thereunder, unless such Federal 
        law specifically limits the Commission from conducting a 
        hearing or adjudication proceeding and only to the extent of 
        such limitation.
  (b) Special Rules for Cease-and-desist Proceedings.--
          (1) Issuance.--
                  (A) Notice of charges.--If, in the opinion of the 
                Commission, any covered person or service provider is 
                engaging or has engaged in an activity that violates a 
                law, regulation, or any condition imposed in writing on 
                the person by the Commission, the Commission may issue 
                and serve upon the person a notice of charges with 
                respect to such violation.
                  (B) Contents of notice.--The notice shall contain a 
                statement of the facts constituting any alleged 
                violation and shall fix a time and place at which a 
                hearing will be held to determine whether an order to 
                cease-and-desist there from should issue against the 
                person.
                  (C) Time of hearing.--A hearing under this subsection 
                shall be fixed for a date not earlier than 30 days nor 
                later than 60 days after service of such notice unless 
                an earlier or a later date is set by the Commission at 
                the request of any party so served.
                  (D) Nonappearance deemed to be consent to order.--
                Unless the party or parties so served shall appear at 
                the hearing personally or by a duly authorized 
                representative, they shall be deemed to have consented 
                to the issuance of the cease-and-desist order.
                  (E) Issuance of order.--In the event of such consent, 
                or if upon the record made at any such hearing, the 
                Commission shall find that any violation specified in 
                the notice of charges has been established, the 
                Commission may issue and serve upon the person an order 
                to cease-and-desist from any such violation or 
                practice.
                  (F) Includes requirement for corrective action.--Such 
                order may, by provisions which may be mandatory or 
                otherwise, require the person to cease-and-desist from 
                the same, and, further, to take affirmative action to 
                correct the conditions resulting from any such 
                violation.
          (2) Effectiveness of order.--A cease-and-desist order shall 
        take effect at the end of the 30-day period beginning on the 
        date of the service of such order upon the covered person or 
        service provider concerned (except in the case of a cease-and-
        desist order issued upon consent, which shall take effect at 
        the time specified therein), and shall remain effective and 
        enforceable as provided therein, except to such extent as it is 
        stayed, modified, terminated, or set aside by action of the 
        Commission or a reviewing court.
          (3) Decision and appeal.--
                  (A) Place of and procedures for hearing.--Any hearing 
                provided for in this subsection shall be held in the 
                Federal judicial district or in the territory in which 
                the residence or home office 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.
                  (B) Time limit for decision.--After such hearing, and 
                within 90 days after the Commission has notified the 
                parties that the case has been submitted to it for 
                final decision, the Commission shall--
                          (i) render its decision (which shall include 
                        findings of fact upon which its decision is 
                        predicated) and shall issue; and
                          (ii) serve upon each party to the proceeding 
                        an order or orders consistent with the 
                        provisions of this section. Judicial review of 
                        any such order shall be exclusively as provided 
                        in this subsection.
                  (C) Modification of order generally.--Unless a 
                petition for review is timely filed in a court of 
                appeals of the United States, as hereinafter provided 
                in paragraph (4), and thereafter until the record in 
                the proceeding has been filed as so provided, the 
                Commission may at any time, upon such notice and in 
                such manner as it shall deem proper, modify, terminate, 
                or set aside any such order.
                  (D) Modification of order after filing record on 
                appeal.--Upon such filing of the record, the Commission 
                may modify, terminate, or set aside any such order with 
                permission of the court.
          (4) Appeal to court of appeals.--
                  (A) In general.--Any party to any proceeding under 
                this subsection may obtain a review of any order served 
                pursuant to this subsection (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 Commission be 
                modified, terminated, or set aside.
                  (B) Transmittal of copy to the commission.--A copy of 
                such petition shall be forthwith transmitted by the 
                clerk of the court to the Commission, and thereupon the 
                Commission shall file in the court the record in the 
                proceeding, as provided in section 2112 of title 28 of 
                the United States Code.
                  (C) Jurisdiction of court.--Upon the filing of a 
                petition under subparagraph (A), such court shall have 
                jurisdiction, which upon the filing of the record shall 
                except as provided in the last sentence of paragraph 
                (3) be exclusive, to affirm, modify, terminate, or set 
                aside, in whole or in part, the order of the 
                Commission.
                  (D) Scope of review.--Review of such proceedings 
                shall be had as provided in chapter 7 of title 5 of the 
                United States Code.
                  (E) Finality.--The judgment and decree of the court 
                shall be final, except that the same shall be subject 
                to review by the Supreme Court 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, unless specifically 
        ordered by the court, operate as a stay of any order issued by 
        the Commission.
  (c) Special Rules for Temporary Cease-and-desist Proceedings.--
          (1) Issuance.--
                  (A) In general.--Whenever the Commission determines 
                that the violation specified in the notice of charges 
                served upon a person, including a service provider, 
                pursuant to subsection (b), or the continuation of such 
                violation, 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 Commission 
                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.
                  (B) Other requirements.--Any temporary order issued 
                under this paragraph may include any requirement 
                authorized under this subtitle.
                  (C) Effect date of order.--Any temporary order issued 
                under this paragraph shall take effect upon service 
                upon the person and, unless set aside, limited, or 
                suspended by a court in proceedings authorized by 
                paragraph (2) of this subsection, shall remain 
                effective and enforceable pending the completion of the 
                administrative proceedings pursuant to such notice and 
                until such time as the Commission 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.--Within 10 days after the person 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 home office 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.--
                  (A) Temporary order.--If a notice of charges served 
                under subsection (b) specifies, on the basis of 
                particular facts and circumstances, that a person's 
                books and records are so incomplete or inaccurate that 
                the Commission is unable to determine the financial 
                condition of that person or the details or purpose of 
                any transaction or transactions that may have a 
                material effect on the financial condition of that 
                person, the Commission 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 proceedings under 
                        subsection (b)(1).
                  (B) Effective period.--Any temporary order issued 
                under subparagraph (A)--
                          (i) shall take effect upon service; and
                          (ii) unless set aside, limited, or suspended 
                        by a court in proceedings under paragraph (2), 
                        shall remain in effect and enforceable until 
                        the earlier of--
                                  (I) the completion of the proceeding 
                                initiated under subsection (b) in 
                                connection with the notice of charges; 
                                or
                                  (II) the date the Commission 
                                determines, by examination or 
                                otherwise, that the person's books and 
                                records are accurate and reflect the 
                                financial condition of the person.
  (d) Special Rules for Enforcement of Orders.--
          (1) In general.--The Commission may in its discretion apply 
        to the United States district court within the jurisdiction of 
        which the principal office of the person is located, for the 
        enforcement 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 enforcement of any 
        notice or order or to review, modify, suspend, terminate, or 
        set aside any such notice or order.
  (e) Regulations.--The Commission shall prescribe regulations 
establishing such procedures as may be necessary to carry out this 
section.

SEC. 154. LITIGATION AUTHORITY.

  (a) In General.--If any person violates a provision of this title, 
any enumerated consumer law, any law for which authorities were 
transferred under subtitles F and H, or any regulation prescribed or 
order issued by the Commission under this title or pursuant to any such 
authority, the Commission may commence a civil action against such 
person to impose a civil penalty and to seek all appropriate legal and 
equitable relief including a permanent or temporary injunction as 
permitted by law.
  (b) Representation.--The Commission may act in its own name and 
through its own attorneys in enforcing any provision of this title, 
regulations under this title, or any other law or regulation, or in any 
action, suit, or proceeding to which the Commission is a party.
  (c) Compromise of Actions.--The Commission may compromise or settle 
any action if such compromise is approved by the court.
  (d) Notice to the Attorney General.--When commencing a civil action 
under this title, any enumerated consumer law, any law for which 
authorities were transferred under subtitles F and H, or any regulation 
thereunder, the Commission shall notify the Attorney General.
  (e) Appearance Before the Supreme Court.--The Commission may 
represent itself in its own name before the Supreme Court of the United 
States, if--
          (1) the Commission 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
          (2) the Attorney General concurs with such request or fails 
        to take action within 60 days of the Commission's request.
  (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 business, and such court shall have jurisdiction 
to enjoin such person and to require compliance with this title, any 
enumerated consumer law, any law for which authorities were transferred 
under subtitles F and H, or any regulation prescribed or order issued 
by the Commission under this title or pursuant to any such authority.
  (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 the discovery of the violation to which 
        an action relates.
          (2) Limitations under other federal laws.--
                  (A) For purposes of this section, an action arising 
                under this title shall not include claims arising 
                solely under enumerated consumer laws.
                  (B) In any action arising solely under an enumerated 
                consumer law, the Commission may commence, defend, or 
                intervene in the action in accordance with the 
                requirements of that law, as applicable.
                  (C) In any action arising solely under the laws for 
                which authorities were transferred by subtitles F and 
                H, the Commission may commence, defend, or intervene in 
                the action in accordance with the requirements of that 
                law, as applicable.

SEC. 155. RELIEF AVAILABLE.

  (a) Administrative Proceedings or Court Actions.--
          (1) Jurisdiction.--The court (or Commission, as the case may 
        be) in an action or adjudication proceeding brought under this 
        title, any enumerated consumer law, or any law for which 
        authorities were transferred by subtitles F and H, shall have 
        jurisdiction to grant any appropriate legal or equitable relief 
        with respect to a violation of this title, any enumerated 
        consumer law, and any law for which authorities were 
        transferred by subtitles F and H, including a violation of a 
        regulation prescribed or order issued under this title, any 
        enumerated consumer law and any law for which authorities were 
        transferred by subtitles F and H.
          (2) Relief.--Such relief may include--
                  (A) rescission or reformation of contracts;
                  (B) refund of moneys or return of real property;
                  (C) restitution;
                  (D) disgorgement or compensation for unjust 
                enrichment;
                  (E) payment of damages;
                  (F) public notification regarding the violation, 
                including the costs of notification;
                  (G) limits on the activities or functions of the 
                person; and
                  (H) civil money penalties under subsection (c).
          (3) No exemplary or punitive damages.--Nothing in this 
        subsection shall be construed as authorizing the imposition of 
        exemplary or punitive damages.
  (b) Recovery of Costs.--In any action brought by the Commission, a 
State attorney general, or a State bank supervisor to enforce any 
provision of this title, any enumerated consumer law, any law for which 
authorities were transferred by subtitles F and H, or any regulation 
prescribed or order issued by the Commission under this title or 
pursuant to any such authority, the Commission, State attorney general, 
or State bank supervisor may recover the costs incurred by such 
Commission, attorney general, or supervisor in connection with 
prosecuting such action if the Commission, State attorney general, or 
State bank supervisors (as the case may be) is the prevailing party in 
the action.
  (c) Civil Money Penalty in Court and Administrative Actions.--
          (1) Any person that violates, through any act or omission, 
        any provision of this title, any enumerated consumer law, or 
        any regulation prescribed or order issued by the Commission 
        under this title shall forfeit and pay a civil penalty pursuant 
        to this subsection determined as follows:
                  (A) First tier.--For any violation of any law, 
                regulation, final order or condition imposed in writing 
                by the Commission, or for any failure to pay any fee or 
                assessment imposed by the Commission (including any fee 
                or assessment for which a related person may be 
                liable), a civil penalty shall not exceed $5,000 for 
                each day during which such violation continues.
                  (B) Second tier.--Notwithstanding subparagraph (A), 
                for any violation of a regulation prescribed under 
                section 136 or for any person that recklessly engages 
                in a violation of this title, any enumerated consumer 
                law, or any regulation prescribed or order issued by 
                the Commission under this title, relating to the 
                provision of an alternative consumer financial product 
                or service, a civil penalty shall not exceed $25,000 
                for each day during which such violation continues.
                  (C) Third tier.--Notwithstanding subparagraphs (A) 
                and (B), for any person that knowingly violates this 
                title, any enumerated consumer law, or any regulation 
                prescribed or order issued by the Commission under this 
                title, a civil penalty shall not exceed $1,000,000 for 
                each day during which such violation continues.
          (2) Mitigating factors.--In determining the amount of any 
        penalty assessed under paragraph (1), the Commission 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 require.
          (3) Authority to modify or remit penalty.--The Commission may 
        compromise, modify, or remit any penalty which may be assessed 
        or had already been assessed under paragraph (1). The amount of 
        such penalty, when finally determined, shall be exclusive of 
        any sums owed by the person to the United States in connection 
        with the costs of the proceeding, and may be deducted from any 
        sums owing by the United States to the person charged.
          (4) Notice and hearing.--No civil penalty may be assessed 
        with respect to a violation of this title, any enumerated 
        consumer law, or any regulation prescribed or order issued by 
        the Commission, unless--
                  (A) the Commission gives notice and an opportunity 
                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 Commission.

SEC. 156. REFERRALS FOR CRIMINAL PROCEEDINGS.

  Whenever the Commission obtains evidence that any person, either 
domestic or foreign, has engaged in conduct that may constitute a 
violation of Federal criminal law, the Commission may transmit such 
evidence to the Attorney General, who may institute criminal 
proceedings under appropriate law. No provision of this section shall 
be construed as affecting any other authority of the Commission to 
disclose information.

SEC. 157. EMPLOYEE PROTECTION.

  (a) In General.--No covered person or service provider shall 
terminate or in any other way discriminate against, or cause to be 
terminated or discriminated against, any covered employee or any 
authorized representative of covered employees by reason of the fact 
that such employee or representative, whether at the employee's 
initiative or in the ordinary course of the employee's duties (or any 
person acting pursuant to a request of the employee)--
          (1) has provided information to the Commission or to any 
        other State, local, or Federal Government authority or law 
        enforcement official information relating to any violation of, 
        or any act or omission the employee reasonably believes to be a 
        violation of any provision of this Act or any other law that is 
        subject to the jurisdiction of the Commission, or any 
        regulation, order, standard, or prohibition prescribed by the 
        Commission;
          (2) has testified or is about to testify in any proceeding 
        resulting from the administration or enforcement of any 
        provision of this Act or any other law that is subject to the 
        jurisdiction of the Commission, or any regulation, order, 
        standard, or prohibition prescribed by the Commission;
          (3) has filed or instituted, or has caused to be filed or 
        instituted, any proceeding under any enumerated consumer law or 
        any law for which authorities were transferred by subtitles F 
        and H; or
          (4) has 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, regulation, order, standard, or prohibition, 
        subject to the jurisdiction of, or enforceable by, the 
        Commission.
  (b) Covered Employee Defined.--For the purposes of this section, the 
term ``covered employee'' means any individual performing tasks related 
to the provision of a financial product or service to a consumer.
  (c) Timetables.--
          (1) Filing complaint.--Any individual who believes that such 
        individual has been discharged or otherwise discriminated 
        against by any person in violation of subsection (a) may, 
        before the end of the 180-day period beginning on the date on 
        which such violation occurs, file (or have any person file on 
        behalf of such individual) a complaint with the Secretary of 
        Labor (hereafter in this subsection referred to as the 
        ``Secretary'', notwithstanding section 101(34)) alleging such 
        discharge or discrimination and identifying the person 
        responsible for such act.
          (2) Secretary's action on receipt of complaint.--Upon receipt 
        of a complaint by any individual under paragraph (1), the 
        Secretary shall notify, in writing, the person named in the 
        complaint who is alleged to have committed the violation of--
                  (A) the filing of the complaint;
                  (B) the allegations contained in the complaint;
                  (C) the substance of the evidence supporting the 
                complaint; and
                  (D) the opportunities that will be afforded to such 
                person under paragraph (3).
          (3) Investigation, hearing, and orders.--
                  (A) Findings.--Not later than 60 days after the date 
                of receipt of a complaint filed under paragraph (1) and 
                after affording the individual filing the complaint and 
                the person named in the complaint who is alleged to 
                have committed the violation an opportunity to submit 
                to the Secretary a written response to the complaint 
                and an opportunity to meet with a representative of the 
                Secretary to present statements from witnesses, the 
                Secretary shall initiate an investigation and determine 
                whether there is reasonable cause to believe that the 
                complaint has merit and notify, in writing, the 
                complainant and the person alleged to have committed a 
                violation of subsection (a) of the Secretary's 
                findings.
                  (B) Preliminary order.--If the Secretary concludes 
                that there is reasonable cause to believe that a 
                violation of subsection (a) has occurred, the Secretary 
                shall accompany the Secretary's findings with a 
                preliminary order providing the relief prescribed by 
                paragraph (3)(B).
                  (C) Objections to findings or preliminary order.--Not 
                later than 30 days after the date of notification of 
                findings under subparagraph (A), the person alleged to 
                have committed the violation or the complainant may 
                file objections to the findings or preliminary order, 
                or both, and request a hearing on the record.
                  (D) Objections do not constitute a stay.--The filing 
                of objections under subparagraph (C) shall not operate 
                to stay any reinstatement remedy contained in the 
                preliminary order.
                  (E) Expeditious hearing.--Any hearing requested under 
                subparagraph (C) shall be conducted expeditiously.
                  (F) Finality of order.--If a hearing is not requested 
                under subparagraph (C) with respect to any findings of 
                the Secretary under subparagraph (A) within the 30-day 
                period described in subparagraph (C), the preliminary 
                order shall be deemed a final order that is not subject 
                to judicial review.
          (4) Standards for determination.--
                  (A) Prima facie evidence of contribution.--The 
                Secretary shall dismiss a complaint filed under 
                paragraph (1) and shall not conduct an investigation 
                otherwise required under paragraph (3)(A) unless the 
                individual filing the complaint makes a prima facie 
                showing that any behavior described in paragraph (1), 
                (2), (3), or (4) of subsection (a) was a contributing 
                factor in the unfavorable personnel action alleged in 
                the complaint.
                  (B) Prohibition on investigation in case of clear and 
                convincing evidence of independent basis.--
                Notwithstanding a finding by the Secretary that the 
                complainant has made the showing required under 
                subparagraph (A), no investigation otherwise required 
                under paragraph (3) 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) Contributing factor requirement.--The Secretary 
                may determine that a violation of subsection (a) has 
                occurred only if the complainant demonstrates that any 
                behavior described in paragraph (1), (2), (3), or (4) 
                of subsection (a) was a contributing factor in the 
                unfavorable personnel action alleged in the complaint.
                  (D) Prohibition on final order in case of clear and 
                convincing evidence of independent basis.--Relief may 
                not be ordered under paragraph (3) 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.
          (5) Final order.--
                  (A) In general.--Not later than 120 days after the 
                date of conclusion of any hearing under paragraph (3), 
                the Secretary shall issue a final order providing the 
                relief prescribed by this subsection or denying the 
                complaint.
                  (B) Settlement agreement.--At any time before 
                issuance of a final order, a proceeding under this 
                subsection may be terminated on the basis of a 
                settlement agreement entered into by the Secretary, the 
                complainant, and the person alleged to have committed 
                the violation.
                  (C) Contents of order.--If, in response to a 
                complaint filed under paragraph (1), the Secretary 
                determines that a violation of subsection (a) has 
                occurred, the Secretary shall order the person who 
                committed such violation--
                          (i) to take affirmative action to abate the 
                        violation;
                          (ii) to reinstate the complainant to such 
                        individual's former position together with 
                        compensation (including back pay) and restore 
                        the terms, conditions, and privileges 
                        associated with such individual's employment; 
                        and
                          (iii) to provide compensatory damages to the 
                        complainant.
                  (D) Costs and attorneys fees.--If an order is issued 
                under this paragraph, the Secretary, 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 
                attorneys' and expert witness fees) reasonably 
                incurred, as determined by the Secretary, by the 
                complainant for, or in connection with, the bringing of 
                the complaint upon which the order was issued.
                  (E) Frivolous or bad faith complaints.--If the 
                Secretary finds that a complaint under paragraph (1) is 
                frivolous or has been brought in bad faith, the 
                Secretary may award to the prevailing employer a 
                reasonable attorneys' fee, not exceeding $1,000, to be 
                paid by the complainant.
          (6) De novo action on claim.--
                  (A) Action at law or equity.--If the Secretary has 
                not issued a final decision within 210 days after the 
                filing of the complaint, or within 90 days after 
                receiving a written determination, the complainant who 
                filed such complaint may bring an action at law or 
                equity for de novo review in the appropriate district 
                court of the United States.
                  (B) Jury trial.--At the request of either party to an 
                action brought under subparagraph (A), such action 
                shall be tried by the court with a jury.
                  (C) Standards for determination.--The standards for 
                determination established under paragraph (4) shall 
                apply in any action under this paragraph.
                  (D) Relief.--The court shall have jurisdiction to 
                grant all relief, including injunctive relief and 
                compensatory damages, that necessary to make the 
                complainant who sought de novo review whole, 
                including--
                          (i) reinstatement with the same seniority 
                        status that the complainant 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's 
                        fees.
                  (E) Not reviewable.--The decision of the court shall 
                be final without further review.
          (7) Judicial review of final order.--
                  (A) In general.--Unless a complainant brings a de 
                novo action under paragraph (6), any person adversely 
                affected or aggrieved by a final order issued under 
                paragraph (5) may obtain 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 circuit in which the 
                complainant resided on the date of such violation.
                  (B) Statute of limitation.--Any petition for review 
                of a final order under subsection shall be filed not 
                later than 60 days after the date of the issuance of 
                the final order by the Secretary.
                  (C) Standards for review.--The standards for review 
                established under chapter 7 of title 5, United States 
                Code, shall apply in any review of a final order under 
                this paragraph.
                  (D) Effect of proceedings as stay.--The commencement 
                of proceedings under this paragraph shall not operate 
                as a stay of the final order of the Secretary under 
                review, unless so ordered by the court.
                  (E) Limitation on effect of other proceedings.--
                Except as provided in paragraph (6) and this paragraph, 
                an order of the Secretary with respect to which review 
                could have been obtained under subparagraph (A) shall 
                not be subject to judicial review in any criminal or 
                other civil proceeding.
          (8) Enforcement of orders by secretary.--
                  (A) In general.--Whenever any person has failed to 
                comply with an order issued under paragraph (5), the 
                Secretary may file a civil action in the United States 
                district court for the district in which the violation 
                was found to occur, or in the United States district 
                court for the District of Columbia, to enforce such 
                order.
                  (B) Relief.--In actions brought under this paragraph, 
                the district courts shall have jurisdiction to grant 
                all appropriate relief including injunctive relief and 
                compensatory damages.
          (9) Enforcement of order by aggrieved party.--
                  (A) In general.--A person on whose behalf an order 
                was issued under paragraph (5) may commence a civil 
                action against the person to whom such order was issued 
                to require compliance with such order.
                  (B) Relief.--The court, in issuing any final order 
                under this paragraph, may award costs of litigation 
                (including reasonable attorneys' and expert witness 
                fees) to any party whenever the court determines such 
                award is appropriate.
  (d) Action in Nature of Mandamus.--Any nondiscretionary duty imposed 
by this section shall be enforceable in a mandamus proceeding brought 
under section 1361 of title 28, United States Code.
  (e) Unenforceability of Certain Agreements.--
          (1) No waiver of rights and remedies.--Notwithstanding any 
        law and except as provided under paragraph (3), the rights and 
        remedies provided for in this section may not be waived by any 
        agreement, policy, form, or condition of employment, including 
        by any predispute arbitration agreement.
          (2) Predispute arbitration agreements.--Notwithstanding any 
        law and except as provided under paragraph (3), no predispute 
        arbitration agreement shall be valid or enforceable and to the 
        extent the agreement 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 disputes arising under subsection 
        (a)(2) unless the Commission determines by regulation that such 
        provision is inconsistent with the purposes of this Act.

SEC. 158. EFFECTIVE DATE.

  This subtitle shall take effect on the designated transfer date.

     Subtitle F--Transfer of Functions and Personnel; Transitional 
                               Provisions

SEC. 161. TRANSFER OF CERTAIN FUNCTIONS.

  (a) In General.--Except as provided in subsection (b), consumer 
financial protection functions are transferred as follows:
          (1) Board of governors.--
                  (A) Transfer of functions.--All consumer financial 
                protection functions of the Board of Governors are 
                transferred to the Commission.
                  (B) Board of governors' authority.--The Commission 
                shall have all powers and duties that were vested in 
                the Board of Governors, relating to consumer financial 
                protection functions, on the day before the designated 
                transfer date.
          (2) Comptroller of the currency.--
                  (A) Transfer of functions.--All consumer financial 
                protection functions of the Comptroller of the Currency 
                are transferred to the Commission.
                  (B) Chairman's authority.--The Commission shall have 
                all powers and duties that were vested in the 
                Comptroller of the Currency, relating to consumer 
                financial protection functions, on the day before the 
                designated transfer date.
          (3) Director of the office of thrift supervision.--
                  (A) Transfer of functions.--All consumer financial 
                protection functions of the Director of the Office of 
                Thrift Supervision are transferred to the Commission.
                  (B) Director's authority.--The Commission shall have 
                all powers and duties that were vested in the Director 
                of the Office of Thrift Supervision, relating to 
                consumer financial protection functions, on the day 
                before the designated transfer date.
          (4) Federal deposit insurance corporation.--
                  (A) Transfer of functions.--All consumer financial 
                protection functions of the Federal Deposit Insurance 
                Corporation are transferred to the Commission.
                  (B) Corporation's authority.--The Commission shall 
                have all powers and duties that were vested in the 
                Federal Deposit Insurance Corporation, relating to 
                consumer financial protection functions, on the day 
                before the designated transfer date.
          (5) Federal trade commission.--
                  (A) Transfer of functions.--Except as provided in 
                subparagraph (C), the consumer financial protection 
                functions of the Federal Trade Commission that are 
                contained within the enumerated consumer laws are 
                transferred to the Commission, except as provided in 
                section 122(e). This transfer shall not be subject to 
                the provisions of section 3503 of title 5, United 
                States Code.
                  (B) FTC's authority.--The Commission shall have all 
                powers and duties that were vested in the Federal Trade 
                Commission that were contained within the enumerated 
                statutes, except as provided in section 122(e), on the 
                day before the designated transfer date.
          (6) National credit union administration.--
                  (A) Transfer of functions.--All consumer financial 
                protection functions of the National Credit Union 
                Administration are transferred to the Commission.
                  (B) National credit union administration's 
                authority.--The Commission shall have all powers and 
                duties that were vested in the National Credit Union 
                Administration, relating to consumer financial 
                protection functions, on the day before the designated 
                transfer date.
          (7) Secretary of housing and urban development.--
                  (A) Transfer of functions.--All consumer protection 
                functions of the Secretary of Housing and Urban 
                Development relating to the Real Estate Settlement 
                Procedures Act of 1974 and the Secure and Fair 
                Enforcement for Mortgage Licensing Act of 2008 are 
                transferred to the Commission.
                  (B) Secretary of hud's authority.--The Commission 
                shall have all powers and duties that were vested in 
                the Secretary of Housing and Urban Development relating 
                to the Real Estate Settlement Procedures Act of 1974 
                and the Secure and Fair Enforcement for Mortgage 
                Licensing Act of 2008, on the day before the designated 
                transfer date
  (b) Transfers of Functions Subject to Backstop Enforcement Authority 
Remaining With Transferor Agencies.--The transfers of functions in 
subsection (a) shall not affect the authority of the agencies 
identified in subsection (a) from initiating enforcement proceedings 
under the circumstances described in section 122(e)(3).
  (c) Termination of Authority of Transferor Agencies To Collect Fees 
for Consumer Financial Protection Purposes.--Authorities of the 
agencies identified in subsection (a) to assess and collect fees to 
cover the cost of conducting consumer financial protection functions 
shall terminate on the day before the designated transfer date.
  (d) Consumer Financial Protection Functions Defined.--For purposes of 
this subtitle, the term ``consumer financial protection functions'' 
means research, rulemaking, issuance of orders or guidance, 
supervision, examination, and enforcement activities, powers, and 
duties relating to the provision of consumer financial products or 
services, including the authority to assess and collect fees for those 
purposes, except that such term shall not include any such function 
relating to an agency's responsibilities under the Community 
Reinvestment Act of 1977.
  (e) Effective Date.--Subsections (a) and (b) shall take effect on the 
designated transfer date.

SEC. 162. DESIGNATED TRANSFER DATE.

  (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary--
          (1) shall, in consultation with the Chairman of the Board of 
        Governors, the Chairperson of the Federal 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 Housing and Urban 
        Development, and the Director of the Office of Management and 
        Budget, designate a single calendar date for the transfer of 
        functions to the Commission under section 161; and
          (2) shall publish notice of that designation 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 Federal 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 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 designation in the 
        Federal Register.
  (c) Permissible Dates.--
          (1) In general.--Except as provided in paragraph (2), any 
        date designated under this section shall be not earlier than 
        180 days nor later than 18 months after the date of the 
        enactment of this Act.
          (2) Extension of time.--The Secretary may designate a date 
        that is later than 18 months after the date of the enactment of 
        this Act if the Secretary transmits to appropriate committees 
        of Congress--
                  (A) a written determination that orderly 
                implementation of this title is not feasible on the 
                date that is 18 months after the date of the enactment 
                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 implementation of this 
                title within the extended time period.
          (3) Extension limited.--In no case shall any date designated 
        under this section be later than 24 months after the date of 
        the enactment of this Act.

SEC. 163. SAVINGS PROVISIONS.

  (a) Board of Governors.--
          (1) Existing rights, duties, and obligations not affected.--
        Section 161(a)(1) shall not affect the validity of any right, 
        duty, or obligation of the United States, the Board of 
        Governors (or any Federal reserve bank), or any other person 
        that--
                  (A) arises under any provision of law relating to any 
                consumer financial protection function of the Board of 
                Governors transferred to the Commission by this title; 
                and
                  (B) existed on the day before the designated transfer 
                date.
          (2) Continuation of suits.--This Act shall not abate any 
        proceeding commenced by or against the Board of Governors (or 
        any Federal reserve 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 Commission by this title, except that the 
        Commission shall be substituted for the Board of Governors (or 
        Federal reserve bank) as a party to any such proceeding as of 
        the designated transfer date.
  (b) Federal Deposit Insurance Corporation.--
          (1) Existing rights, duties, and obligations not affected.--
        Section 161(a)(4) shall not affect the validity of any right, 
        duty, or obligation of the United States, the Federal Deposit 
        Insurance Corporation, the Board of Directors of that 
        Corporation, or any other person, that--
                  (A) arises under any provision of law relating to any 
                consumer financial protection function of the Federal 
                Deposit Insurance Corporation transferred to the 
                Commission by this title; and
                  (B) existed on the day before the designated transfer 
                date.
          (2) Continuation of suits.--This Act shall not 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 consumer financial protection function of the Federal 
        Deposit Insurance Corporation transferred to the Commission by 
        this title, except that the Commission 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 161(a)(5) shall not affect the 
validity of any right, duty, or obligation of the United States, the 
Federal Trade Commission, or any other person, that--
          (1) arises under any provision of law relating to any 
        consumer financial protection function of the Federal Trade 
        Commission transferred to the Commission by this title; and
          (2) existed on the day before the designated transfer date.
  (d) National Credit Union Administration.--
          (1) Existing rights, duties, and obligations not affected.--
        Section 161(a)(6) shall not affect the validity of any right, 
        duty, or obligation of the United States, the National Credit 
        Union Administration, the National Credit Union Administration 
        Board, or any other person, that--
                  (A) arises under any provision of law relating to any 
                consumer financial protection function of the National 
                Credit Union Administration transferred to the 
                Commission by this title; and
                  (B) existed on the day before the designated transfer 
                date.
          (2) Continuation of suits.--This Act shall not 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 National Credit 
        Union Administration transferred to the Commission by this 
        title, except that the Commission 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) Comptroller of the Currency.--
          (1) Existing rights, duties, and obligations not affected.--
        Section 161(a)(2) shall 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 relating to any 
                consumer financial protection function of the 
                Comptroller of the Currency transferred to the 
                Commission by this title; and
                  (B) existed on the day before the designated transfer 
                date.
          (2) Continuation of suits.--This Act shall not abate any 
        proceeding commenced by or against the Comptroller of the 
        Currency (or the Office of the Comptroller of the Currency) 
        with respect to any consumer financial protection function of 
        the Comptroller of the Currency transferred to the Commission 
        by this title before the designated transfer date, except that 
        the Commission shall be substituted for the Comptroller of the 
        Currency (or the Office of the Comptroller of the Currency) as 
        a party to any such proceeding as of the designated transfer 
        date.
  (f) Director of the Office of Thrift Supervision.--
          (1) Existing rights, duties, and obligations not affected.--
        Section 161(a)(3) shall 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 relating to any 
                consumer financial protection function of the Director 
                of the Office of Thrift Supervision transferred to the 
                Commission by this title; and
                  (B) that existed on the day before the designated 
                transfer date.
          (2) Continuation of suits.--This Act shall not abate any 
        proceeding commenced by or against the Director of the Office 
        of Thrift Supervision (or the Office of Thrift Supervision) 
        with respect to any consumer financial protection function of 
        the Director of the Office of Thrift Supervision transferred to 
        the Commission by this title before the designated transfer 
        date, except that the Commission 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) Secretary of Housing and Urban Development.--
          (1) Existing rights, duties, and obligations not affected.--
        Section 161(a)(7) shall not affect the validity of any right, 
        duty, or obligation of the United States, the Secretary of 
        Housing and Urban Development, the Department of Housing and 
        Urban Development, or any other person, that--
                  (A) arises under any provision of law relating to any 
                function of the Secretary of Housing and Urban 
                Development under the Real Estate Settlement Procedures 
                Act of 1974 and the Secure and Fair Enforcement for 
                Mortgage Licensing Act of 2008 transferred to the 
                Commission by this title; and
                  (B) that existed on the day before the designated 
                transfer date.
          (2) Continuation of suits.--This Act shall not abate any 
        proceeding commenced by or against the Secretary of Housing and 
        Urban Development (or the Department of Housing and Urban 
        Development) with respect to any consumer financial protection 
        function of the Secretary of Housing and Urban Development 
        transferred to the Commission by this title before the 
        designated transfer date, except that the Commission shall be 
        substituted for the Secretary of Housing and Urban Development 
        (or such Department) as a party to any such proceeding as of 
        the designated transfer date.
  (h) Continuation of Existing Orders, Regulations, Determinations, 
Agreements, and Resolutions.--All orders, resolutions, determinations, 
agreements, and regulations that have been issued, made, prescribed, or 
allowed to become effective by the Board of Governors (or any Federal 
reserve bank), the Federal Deposit Insurance Corporation, the Federal 
Trade Commission, the National Credit Union Administration, the 
Comptroller of the Currency, the Director of the Office of Thrift 
Supervision, the Secretary of Housing and Urban Development, or by a 
court of competent jurisdiction, in the performance of consumer 
financial protection functions that are transferred by this title and 
that are in effect on the day before the designated transfer date, 
shall continue in effect according to the terms of those orders, 
resolutions, determinations, agreements, and regulations, and shall be 
enforceable by or against the Commission until modified, terminated, 
set aside, or superseded in accordance with applicable law by the 
Commission, by any court of competent jurisdiction, or by operation of 
law.
  (i) Identification of Regulations Continued.--Not later than the 
designated transfer date, the Commission--
          (1) shall, after consultation with the Chairman of the Board 
        of Governors, the Chairperson of the Federal 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, and the Secretary of Housing and Urban 
        Development identify the regulations continued under subsection 
        (g) that will be enforced by the Commission; and
          (2) shall publish a list of such regulations in the Federal 
        Register.
  (j) Status of Regulations Proposed or Not Yet Effective.--
          (1) Proposed regulations.--Any proposed regulation of the 
        Board of Governors, the Federal Deposit Insurance Corporation, 
        the Federal Trade Commission, the National Credit Union 
        Administration, the Comptroller of the Currency, the Director 
        of the Office of Thrift Supervision, or the Secretary of 
        Housing and Urban Development which that agency, in performing 
        consumer financial protection functions transferred by this 
        title, has proposed before the designated transfer date but has 
        not published as a final regulation before that date, shall be 
        deemed to be a proposed regulation of the Commission.
          (2) Regulations not yet effective.--Any interim or final 
        regulation of Board of Governors, the Federal Deposit Insurance 
        Corporation, the Federal Trade Commission, the National Credit 
        Union Administration, the Comptroller of the Currency, the 
        Director of the Office of Thrift Supervision, or the Secretary 
        of Housing and Urban Development which that agency, in 
        performing consumer financial protection functions transferred 
        by this title, has published before the designated transfer 
        date but which has not become effective before that date, shall 
        take effect as a regulation of the Commission according to its 
        terms.

SEC. 164. TRANSFER OF CERTAIN PERSONNEL.

  (a) In General.--
          (1) Certain federal reserve system employees transferred.--
                  (A) Identifying employees for transfer.--The 
                Commission and the Board of Governors shall--
                          (i) jointly determine the number of employees 
                        of the Board necessary to perform or support 
                        the consumer financial protection functions of 
                        the Board of Governors that are transferred to 
                        the Commission by this title; and
                          (ii) consistent with the number determined 
                        under clause (i), jointly identify employees of 
                        the Board of Governors for transfer to the 
                        Commission in a manner that the Commission and 
                        the Board of Governors, in their sole 
                        discretion, deem equitable.
                  (B) Identified employees transferred.--All employees 
                of the Board of Governors identified under subparagraph 
                (A)(ii) shall be transferred to the Commission for 
                employment.
                  (C) Federal reserve bank employees.--Employees of any 
                Federal reserve bank who, on the day before the 
                designated transfer date, are performing consumer 
                financial protection functions on behalf of the Board 
                of Governors 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 transfer.--The 
                Commission and the Board of Directors of the Federal 
                Deposit Insurance Corporation shall--
                          (i) jointly determine the number of employees 
                        of that Corporation necessary to perform or 
                        support the consumer financial protection 
                        functions of the Corporation that are 
                        transferred to the Commission by this title; 
                        and
                          (ii) consistent with the number determined 
                        under clause (i), jointly identify employees of 
                        the Corporation for transfer to the Commission 
                        in a manner that the Commission and the Board 
                        of Directors of the Corporation, in their 
                        discretion, deem equitable.
                  (B) Identified employees transferred.--All employees 
                of the Corporation identified under subparagraph 
                (A)(ii) shall be transferred to the Commission for 
                employment.
          (3) Certain ncua employees transferred.--
                  (A) Identifying employees for transfer.--The 
                Commission and the National Credit Union Administration 
                Board shall--
                          (i) jointly determine the number of employees 
                        of the National Credit Union Administration 
                        necessary to perform or support the consumer 
                        financial protection functions of the National 
                        Credit Union Administration that are 
                        transferred to the Commission by this title; 
                        and
                          (ii) consistent with the number determined 
                        under clause (i), jointly identify employees of 
                        the National Credit Union Administration for 
                        transfer to the Commission in a manner that the 
                        Commission and the National Credit Union 
                        Administration Board, in their discretion, deem 
                        equitable.
                  (B) Identified employees transferred.--All employees 
                of the National Credit Union Administration identified 
                under subparagraph (A)(ii) shall be transferred to the 
                Commission for employment.
          (4) Certain hud employees transferred.--
                  (A) Identifying employees for transfer.--The 
                Commission and the Secretary of Housing and Urban 
                Development shall--
                          (i) jointly determine the number of employees 
                        of the Department of Housing and Urban 
                        Development necessary to perform or support the 
                        consumer financial protection functions of the 
                        Secretary of Housing and Urban Development that 
                        are transferred to the Commission by this 
                        title; and
                          (ii) consistent with the number determined 
                        under clause (i), jointly identify employees of 
                        the Department of Housing and Urban Development 
                        for transfer to the Commission in a manner that 
                        the Commission and the Secretary of Housing and 
                        Urban Development, in their discretion, deem 
                        equitable.
                  (B) Identified employees transferred.--All employees 
                of the Department of Housing and Urban Development 
                identified under subparagraph (A)(ii) shall be 
                transferred to the Commission for employment.
          (5) Appointment authority for excepted service and senior 
        executive service transferred.--
                  (A) In general.--In the case of employees occupying 
                positions in the excepted service or the Senior 
                Executive Service, any appointment authority 
                established pursuant to law or regulations of the 
                Commission of the Office of Personnel Management for 
                filling such positions shall be transferred, 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 
                to such subparagraph) to the extent that such authority 
                relates to positions excepted from the competitive 
                service because of their confidential, policy-making, 
                policy-determining, or policy-advocating character, and 
                non-career positions in the Senior Executive Service 
                (within the meaning of section 3132(a)(7) of title 5, 
                United States Code).
  (b) Timing of Transfers and Position Assignments.--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 such employee's position assignment not 
        later than 120 days after the effective date of the employee's 
        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 section 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, ftc, hud, ncua, occ, and 
        ots.--Each employee transferred from the Federal Deposit 
        Insurance Corporation, the Federal Trade Commission, the 
        Department of Housing and Urban Development, the National 
        Credit Union Administration, the Office of the Comptroller of 
        the Currency, or the Office of Thrift Supervision shall be 
        placed in a position at the Commission with the same status and 
        tenure as he or she held on the day before the designated 
        transfer date.
          (2) Employees transferred from the federal reserve system.--
                  (A) Comparability.--Each employee transferred from 
                the Board of Governors or from a Federal reserve bank 
                shall be placed in a position with the same status and 
                tenure as that of employees transferring to the 
                Commission from the Office of the Comptroller of the 
                Currency who perform similar functions and have similar 
                periods 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 Limited.--Examiners 
transferred to the Commission shall not be subject to any additional 
certification requirements before being placed in a comparable 
examiner's position at the Commission examining the same types of 
institutions as the transferred examiners examined before such 
examiners were transferred.
  (f) Personnel Actions Limited.--
          (1) 5-year protection.--Except as provided in paragraph (2), 
        each transferred employee holding a permanent position on the 
        day before the designated transfer date shall not, during the 
        5-year period beginning on the designated transfer date, be 
        involuntarily separated, or involuntarily reassigned outside 
        such transferred employee's local locality pay area as defined 
        by the Commission of the Office of Personnel Management.
          (2) Exceptions.--Paragraph (1) shall not be construed as 
        limiting the right of the Commission to--
                  (A) separate an employee for cause or for 
                unacceptable performance;
                  (B) terminate an appointment to a position excepted 
                from the competitive service because of its 
                confidential policy-making, policy-determining, or 
                policy-advocating character; or
                  (C) reassign a supervisory employee outside such 
                employee's locality pay area as defined by the Director 
                of the Office of Personnel Management when the 
                Commission determines that the reassignment is 
                necessary for the efficient operation of the 
                Commission.
  (g) Pay.--
          (1) 1-year protection.--Except as provided in paragraph (2), 
        each transferred employee shall, during the 1-year period 
        beginning on the designated transfer date, receive pay at a 
        rate not less than the basic rate of pay (including any 
        geographic differential) that the employee received during the 
        1-year period immediately before the transfer.
          (2) Exceptions.--Paragraph (1) shall not be construed as 
        limiting the right of the Commission to reduce the rate of 
        basic pay of a transferred employee--
                  (A) for cause;
                  (B) for unacceptable performance; or
                  (C) with the employee's consent.
          (3) Protection only while employed.--Paragraph (1) applies to 
        a transferred employee only while that employee remains 
        employed by the Commission.
          (4) Pay increases permitted.--Paragraph (1) shall not be 
        construed as limiting the authority of the Commission to 
        increase a transferred employee's pay.
  (h) Reorganization.--
          (1) Between 1st and 3rd year.--
                  (A) In general.--If the Commission determines, during 
                the period beginning 1 year after the designated 
                transfer date and ending 3 years after the designated 
                transfer date, that a reorganization of the staff of 
                the Commission is required--
                          (i) that reorganization shall be deemed a 
                        ``major reorganization'' for purposes of 
                        affording 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 Director of the Office of 
                        Personnel Management shall be placed in a 
                        uniform position classification system; and
                          (iii) any resulting reduction in force shall 
                        be governed by the provisions of chapter 35 of 
                        title 5, United States Code, except that the 
                        Commission shall--
                                  (I) establish competitive areas (as 
                                that term is defined in regulations 
                                issued by the Director of the Office of 
                                Personnel Management) to include at a 
                                minimum all employees in the same 
                                locality pay area as defined by the 
                                Office of Personnel Management;
                                  (II) establish competitive levels (as 
                                that term is defined in regulations 
                                issued by the Director of the Office of 
                                Personnel Management) without regard to 
                                whether the particular employees have 
                                been appointed 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-
                                determining, or policy-advocating 
                                character) the same assignment rights 
                                to positions within the Commission as 
                                employees 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.--
                  (A) In general.--If the Commission determines, at any 
                time after the 3-year period beginning on the 
                designated transfer date, that a reorganization of the 
                staff of the Commission 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 Commission shall establish competitive levels 
                (as that term is defined in regulations issued by the 
                Office of Personnel Management) without regard to types 
                of appointment held by particular employees transferred 
                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.--
                          (i) Continuation of existing retirement 
                        plan.--Except as provided in subparagraph (B), 
                        each transferred employee shall remain enrolled 
                        in such employee's existing retirement plan as 
                        long as the employee remains employed by the 
                        Commission.
                          (ii) Employer's contribution.--The Commission 
                        shall pay any employer contributions 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 subject to federal employee 
                retirement program.--
                          (i) Election.--Any transferred employee who 
                        was enrolled in a Federal Reserve System 
                        retirement plan on the day before the date of 
                        the employee's transfer to the Commission may, 
                        during the period beginning 6 months after the 
                        designated transfer date and ending 1 year 
                        after the designated transfer date, elect to be 
                        subject to the Federal employee retirement 
                        program.
                          (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) Commission participation in federal reserve 
                system retirement plan.--
                          (i) Separate account in federal reserve 
                        system retirement plan established.--A separate 
                        account in the Federal Reserve System 
                        retirement plan shall be established for 
                        Commission employees who do not make the 
                        election under subparagraph (B).
                          (ii) Funds attributable to transferred 
                        employees remaining in federal reserve system 
                        retirement plan transferred.--The proportionate 
                        share of funds in the Federal Reserve System 
                        retirement plan, including the proportionate 
                        share of any funding surplus in that plan, 
                        attributable to a transferred employee who does 
                        not make the election under subparagraph (B), 
                        shall be transferred to the account established 
                        under clause (i).
                          (iii) Employer contributions deposited.--The 
                        Commission shall deposit into the account 
                        established under clause (i) the employer 
                        contributions that the Commission makes on 
                        behalf of employees who do not make the 
                        election under subparagraph (B).
                          (iv) Account administration.--The Commission 
                        shall administer the account established under 
                        clause (i) as a participating employer in the 
                        Federal Reserve System retirement plan.
                  (D) Definitions.--For purposes of this paragraph, the 
                following definitions shall apply:
                          (i) Existing retirement plan.--The term 
                        ``existing retirement plan'' means, with 
                        respect to any employee transferred under this 
                        section, the particular retirement plan 
                        (including the Financial Institutions 
                        Retirement Fund) and any associated thrift 
                        savings plan of the agency or Federal reserve 
                        bank from which the employee was transferred, 
                        which the employee was enrolled in on the day 
                        before the designated transfer date.
                          (ii) Federal employee retirement plan.--The 
                        term ``Federal employee retirement program'' 
                        means the retirement program for Federal 
                        employees established by chapters 83 and 84 of 
                        title 5, United States Code.
          (2) Benefits other than retirement benefits for transferred 
        employees.--
                  (A) During 1st year.--
                          (i) Existing plans continue.--Each 
                        transferred employee may, for 1 year after the 
                        designated transfer date, retain membership in 
                        any other employee benefit program of the 
                        agency or bank from which the employee 
                        transferred, including a dental, vision, long-
                        term care, or life insurance program, to which 
                        the employee belonged on the day before the 
                        designated transfer date.
                          (ii) Employer's contribution.--The Commission 
                        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 beginning on the 
                designated transfer date, the Commission decides not to 
                continue participation in any dental, vision, or life 
                insurance program of an agency or bank from which 
                employees transferred, a transferred employee who is a 
                member of such a program may, before the Commission's 
                decision takes effect, elect to enroll, without regard 
                to any regularly scheduled open season, in--
                          (i) the enhanced dental benefits established 
                        by chapter 89A of title 5, United States Code;
                          (ii) the enhanced vision benefits established 
                        by chapter 89B of title 5, United States Code; 
                        and
                          (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 Commission decides not to continue 
                participation in any long-term care insurance program 
                of an agency or bank from which employees transferred, 
                a transferred employee who is a member of such a 
                program may, before the Commission's decision takes 
                effect, elect to apply for coverage under the Federal 
                Long Term Care Insurance Program established by chapter 
                90 of title 5, United States Code, under the 
                underwriting requirements applicable to a new active 
                workforce member (as defined in Part 875, title 5, Code 
                of Federal Regulations).
                  (D) Employee's contribution.--An individual enrolled 
                in the Federal Employees Health Benefits program shall 
                pay any employee contribution required by the plan.
                  (E) Additional funding.--The Commission shall 
                transfer to the Federal Employees Health Benefits Fund 
                established under section 8909 of title 5, United 
                States Code, an amount determined by the Director of 
                the Office of Personnel Management, after consultation 
                with the Commission and the Director of the Office of 
                Management and Budget, to be necessary to reimburse the 
                Fund for the cost to the Fund of providing benefits 
                under this subparagraph.
                  (F) Credit for time enrolled in other plans.--For 
                employees transferred under this section, enrollment in 
                a health benefits plan administered by the Comptroller 
                of the Currency, the Director of the Office of Thrift 
                Supervision, the Federal Deposit Insurance Corporation, 
                the National Credit Union Administration, the Board of 
                Governors, the Secretary of Housing and Urban 
                Development, or a Federal reserve bank, immediately 
                before 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 continuation 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 insurance plan 
                        administered by the Board of Governors of the 
                        Federal Reserve System, the Federal Deposit 
                        Insurance Corporation, the Federal Trade 
                        Commission, the Secretary of Housing and Urban 
                        Development, the National Credit Union 
                        Administration, the Comptroller of the 
                        Currency, or the Director of the Office of 
                        Thrift Supervision 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 Commission, 
                        without regard to any regularly scheduled open 
                        season and requirement of insurability.
                          (ii) Employee's contribution.--An individual 
                        enrolled in a life insurance plan under this 
                        clause shall pay any employee contribution 
                        required by the plan.
                          (iii) Additional funding.--The Commission 
                        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 consultation with the Commission and the 
                        Director of the Office of Management and 
                        Budget, to be necessary to reimburse the Fund 
                        for the cost to the Fund of providing benefits 
                        under this subparagraph not otherwise paid for 
                        by the employee under clause (ii).
                          (iv) Credit for time enrolled in other 
                        plans.--For employees transferred under this 
                        section, enrollment in a life insurance plan 
                        administered by the Board of Governors, the 
                        Federal Deposit Insurance Corporation, the 
                        Federal Trade Commission, the Secretary of 
                        Housing and Urban Development, the National 
                        Credit Union Administration, the Comptroller of 
                        the Currency, the Director of the Office of 
                        Thrift Supervision, or a Federal reserve bank 
                        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.
  (j) Implementation of Uniform Pay and Classification System.--Not 
later than 2 years after the designated transfer date, the Commission 
shall implement a uniform pay and classification system for all 
transferred employees.
  (k) Equitable Treatment.--In administering the provisions of this 
section, the Commission--
          (1) shall take no action that would unfairly disadvantage 
        transferred employees relative to each other based on their 
        prior employment by the Board of Governors, the Federal Deposit 
        Insurance Corporation, the Federal Trade Commission, the 
        Secretary of Housing and Urban Development, the National Credit 
        Union Administration, the Office of the Comptroller of the 
        Currency, the Office of Thrift Supervision, 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 those employees' status, 
        tenure, pay, benefits (other than benefits under programs 
        administered by the Office of Personnel Management), and 
        accrued leave or vacation time, for prior periods of service 
        with any Federal agency, including the Board of Governors of 
        the Federal Reserve System, the Federal Deposit Insurance 
        Corporation, the Federal Trade Commission, the Department of 
        Housing and Urban Development, the National Credit Union 
        Administration, the Office of the Comptroller of the Currency, 
        the Office of Thrift Supervision, a Federal reserve bank, a 
        Federal home loan bank, or a joint office of the Federal home 
        loan banks.
  (l) Implementation.--In implementing the provisions of this section, 
the Commission shall work with the Director of the Office of Personnel 
Management and other entities with expertise in matters related to 
employment to ensure a fair and orderly transition for affected 
employees.

SEC. 165. INCIDENTAL TRANSFERS.

  (a) Incidental Transfers Authorized.--The Director of the Office of 
Management and Budget, in consultation with the Secretary, shall make 
such additional incidental 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 Commission may determine necessary to accomplish the purposes of 
this title.
  (b) Sunset.--The authority provided in this section shall terminate 5 
years after the date of the enactment of this Act.

SEC. 166. INTERIM AUTHORITY OF THE SECRETARY.

  (a) In General.--The Secretary is authorized to perform the functions 
of the Commission under this subtitle until the appointment of the 
Commission is confirmed by the Senate in accordance with section 112.
  (b) Interim Administrative Services by the Department of the 
Treasury.--The Secretary of the Treasury may provide administrative 
services necessary to support the Commission before the designated 
transfer date.
  (c) Interim Funding for the Department of the Treasury.--For the 
purposes of carrying out the authorities granted in this section, there 
are appropriated to the Secretary of the Treasury such sums as are 
necessary. Notwithstanding any other provision of law, such amounts 
shall be subject to apportionment under section 1517 of title 31, 
United States Code, and restrictions that generally apply to the use of 
appropriated funds in title 31, United States Code, and other laws.

                  Subtitle G--Regulatory Improvements

SEC. 171. COLLECTION OF DEPOSIT ACCOUNT DATA.

  (a) Purpose.--The purpose of this section is to promote awareness and 
understanding of the access of individuals and communities to financial 
services, and to identify business and community development needs and 
opportunities.
  (b) In General.--
          (1) Records required.--For each branch, automated teller 
        machine at which deposits are accepted, and other deposit 
        taking service facility with respect to any financial 
        institution, the financial institution shall maintain records 
        of the number and dollar amounts of deposit accounts of 
        customers.
          (2) Geo-coded addresses of depositors.--The customers' 
        addresses maintained pursuant to paragraph (1) shall be geo-
        coded so that data shall be collected regarding the census 
        tracts of the residence or business location of the customers.
          (3) Identification of depositor type.--In maintaining records 
        on any deposit account under this section, the financial 
        institution shall also record whether the deposit account is 
        for a residential or commercial customer.
          (4) Public availability.--
                  (A) In general.--The following information shall be 
                publicly available on an annual basis--
                          (i) the address and census tracts of each 
                        branch, automated teller machine at which 
                        deposits are accepted, and other deposit taking 
                        service facility with respect to any financial 
                        institution;
                          (ii) the type of deposit account including 
                        whether the account was a checking or savings 
                        account; and
                          (iii) data on the number and dollar amounts 
                        of the accounts, presented by census tract 
                        location of the residential and commercial 
                        customers.
                          (iv) any other data deemed appropriate by the 
                        Commission.
                  (B) Protection of identity.--In the publicly 
                available data, any personally identifiable data 
                element shall be removed so as to protect the 
                identities of the commercial and residential customers.
  (c) Availability of Information.--
          (1) Submission to agencies.--The data required to be compiled 
        and maintained under this section by any financial institution 
        shall be submitted annually to the Commission, or to a Federal 
        banking agency, in accordance with regulations prescribed by 
        the Commission.
          (2) Availability of information.--Information compiled and 
        maintained under this section shall be retained for not less 
        than 3 years after the date of preparation and shall be made 
        available to the public, upon request, in the form required 
        under regulations prescribed by the Commission.
  (d) Commission Use.--The Commission--
          (1) shall assess the distribution of residential and 
        commercial accounts at such financial institution across income 
        and minority level of census tracts; and
          (2) may use the data for any other purpose as permitted by 
        law.
  (e) Regulations and Guidance.--
          (1) In general.--The Commission shall prescribe such 
        regulations and issue guidance as may be necessary to carry 
        out, enforce, and compile data pursuant to this section.
          (2) Data compilation regulations.--The Commission shall 
        prescribe regulations regarding the provision of data compiled 
        under this section to the Federal banking agencies to carry out 
        the purposes of this section and shall issue guidance to 
        financial institutions regarding measures to facilitate 
        compliance with the this section and the requirements of 
        regulations prescribed under this section.
  (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Commission.--The term ``Commission'' means the Consumer 
        Financial Protection Commission.
          (2) Credit union.--The term ``credit union'' means a Federal 
        credit union or a State-chartered credit union (as such terms 
        are defined in section 101 of the Federal Credit Union Act).
          (3) Deposit account.--The term ``deposit account'' includes 
        any checking account, savings account, credit union share 
        account, and other type of account as defined by the 
        Commission.
          (4) Federal banking agency.--The term ``Federal banking 
        agency'' means the Board of Governors of the Federal Reserve 
        System, the head of the agency responsible for chartering and 
        regulating national banks, the Director of the Office of Thrift 
        Supervision, the Federal Deposit Insurance Corporation, and the 
        National Credit Union Administration; and the term ``Federal 
        banking agencies'' means all of those agencies.
          (5) Financial institution.--The term ``financial 
        institution''--
                  (A) has the meaning given to the term ``insured 
                depository institution'' in section 3(c)(2) of the 
                Federal Deposit Insurance Act; and
                  (B) includes any credit union.
  (g) Effective Date.--This section shall take effect on the designated 
transfer date.

SEC. 172. SMALL BUSINESS DATA COLLECTION.

  (a) In General.--The Equal Credit Opportunity Act (15 U.S.C. 1691 et 
seq.) is amended by inserting after section 704A the following new 
section:

``Sec. 704B. Small business loan data collection

  ``(a) Purpose.--The purpose of this section is to facilitate 
enforcement of fair lending laws and enable communities, governmental 
entities, and creditors to identify business and community development 
needs and opportunities of women- and minority-owned small businesses.
  ``(b) In General.--Subject to the requirements of this section, in 
the case of any application to a financial institution for credit for a 
small business, the financial institution shall--
          ``(1) inquire whether the business is a women- or minority-
        owned business, without regard to whether such application is 
        received in person, 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 response to a 
        solicitation by the financial institution; and
          ``(2) maintain a record of the responses to such inquiry 
        separate from the application and accompanying 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) In general.--Where feasible, no loan underwriter 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 information provided by the applicant pursuant to 
        a request under subsection (b) in connection with such 
        application.
          ``(2) Exception.--If a financial institution determines that 
        loan underwriter 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 should have access to any information provided by 
        the applicant pursuant to a request under subsection (b), the 
        financial institution will provide notice to the applicant of 
        the access of the underwriter to this information, along with 
        notice that the financial institution may not discriminate on 
        this basis of this information.
  ``(e) Form and Manner of Information.--
          ``(1) In general.--Each financial institution shall compile 
        and maintain, in accordance with regulations of the Commission, 
        a record of the information provided by any loan applicant 
        pursuant to a request under subsection (b).
          ``(2) Itemization.--Information compiled and maintained under 
        paragraph (1) shall also be itemized in order to clearly and 
        conspicuously disclose the following:
                  ``(A) The number of the application and the date the 
                application was received.
                  ``(B) The type and purpose of the loan or other 
                credit being applied for.
                  ``(C) The amount of the credit or credit limit 
                applied for and the amount of the credit transaction or 
                the credit limit approved for such applicant.
                  ``(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 business in the 
                last fiscal year of the small business loan applicant 
                preceding the date of the application.
                  ``(G) The race, sex, and ethnicity of the principal 
                owners of the business.
                  ``(H) Any additional data the Commission determines 
                would aid in fulfilling the purposes of this section.
          ``(3) Inclusion of personally identifiable information 
        prohibited.--In compiling and maintaining any record of 
        information under this section, a financial institution may not 
        include in such record the name, specific address (other than 
        the census tract required under paragraph (1)(E)), telephone 
        number, electronic mail address, and any other personally 
        identifiable information concerning any individual who is, or 
        is connected with, the small business loan applicant.
          ``(4) Discretion to delete or modify publicly available 
        data.--The Commission may, in the discretion of the Commission, 
        delete or modify data collected under this section which is or 
        will be available to the public if the Commission determines 
        that the deletion or modification of the data would advance a 
        compelling privacy interest.
  ``(f) Availability of Information.--
          ``(1) Submission to agency.--The data required to be compiled 
        and maintained under this section by any financial institution 
        shall be submitted annually to the Commission.
          ``(2) Availability of information.--
                  ``(A) In general.--Information compiled and 
                maintained under this section shall be retained for not 
                less than 3 years after the date of preparation and 
                shall be made available to the public, upon request, in 
                the form required under regulations prescribed by the 
                Commission.
                  ``(B) Annual disclosure to the public.--In addition 
                to the availability by request under subparagraph (A) 
                of data compiled and maintained under this section, the 
                Commission shall annually provide such data to the 
                public.
                  ``(C) Procedures.--The procedures for disclosing data 
                compiled and maintained under this section to the 
                public shall be determined by the Commission by 
                regulation.
          ``(3) Compilation of aggregate data.--
                  ``(A) In general.--The Commission may, in the 
                discretion of the Commission, compile for the 
                Commission's own use compilations of aggregate data.
                  ``(B) Public availability of aggregate data.--The 
                Commission may make public compilations of aggregate 
                data in such manner as the Commission may determine to 
                be appropriate.
  ``(g) Definitions.--For purposes of this section, the following 
definitions shall apply:
          ``(1) Financial institution.--The term `financial 
        institution' means any partnership, company, corporation, 
        association (incorporated or unincorporated), trust, estate, 
        cooperative organization, or other entity that engages in any 
        financial activity.
          ``(2) Minority-owned business.--The term `minority-owned 
        business' means a 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.
          ``(3) Women-owned business.--The term `women-owned business' 
        means a business--
                  ``(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.
          ``(4) Minority.--The term `minority' has the meaning given to 
        such term by section 1204(c)(3) of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989.
          ``(5) Small business loan.--The term `small business loan' 
        shall be defined by the Commission, which may take into 
        account--
                  ``(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.
  ``(h) Commission Action.--
          ``(1) In general.--The Commission shall prescribe such 
        regulations and issue such guidance as may be necessary to 
        carry out, enforce, and compile data pursuant to this section.
          ``(2) Exceptions.--The Commission, by regulation or order, 
        may adopt exceptions to any requirement of this section and 
        may, conditionally or unconditionally, exempt any financial 
        institution or class of institutions from the requirements of 
        this section as the Commission determines to be necessary or 
        appropriate to carry out the purposes and objectives of this 
        section.
          ``(3) Guidance.--The Commission shall issue guidance designed 
        to facilitate compliance with the requirements of this section, 
        including assisting financial institutions in working with 
        applicants to determine whether the applicants are women- or 
        minority-owned for the purposes of this section.''''.
  (b) Technical and Conforming Amendment.--Section 701(b) of the Equal 
Credit Opportunity Act (15 U.S.C. 1691(b)) is amended--
          (1) by striking ``or'' after the semicolon at the end of 
        paragraph (3);
          (2) by striking the period at the end of paragraph (4) and 
        inserting ``; or''; and
          (3) by inserting after paragraph (4), the following new 
        paragraph:
          ``(5) to make an inquiry under section 704B in accordance 
        with the requirements of such section.''.
  (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 following new item:

``704B. Small business loan data collection.''.

  (d) Effective Date.--This section shall take effect on the designated 
transfer date.

SEC. 173. ANNUAL FINANCIAL AUTOPSY.

  (a) Study Required.--Not later than March 31 of each calendar year, 
the Commission shall--
          (1) conduct a scientific sampling of foreclosures and 
        bankruptcies during the previous calendar year in each State or 
        territory of the United States; and
          (2) identify any underlying causes of such bankruptcies or 
        foreclosures, including any specific financial products or 
        services that have been the cause of substantial numbers of 
        such bankruptcies or foreclosures.
  (b) Report.--After the completion of each study required under 
subsection (a), the Commission shall submit a report to the Congress 
containing--
          (1) any conclusions made by the Commission in carrying out 
        such study;
          (2) any specific financial products or services that the 
        Commission has identified to have caused a substantial number 
        of bankruptcies or foreclosures, as well as which companies or 
        individuals provided such financial products or services; and
          (3) any recommendations the Commission has for legislation 
        that would reduce the underlying causes of bankruptcies and 
        foreclosures identified in such study.

                   Subtitle H--Conforming Amendments

SEC. 181. AMENDMENTS TO THE INSPECTOR GENERAL ACT OF 1978.

  (a) Establishment.--Section 8G(a)(2) of the Inspector General Act of 
1978 (5 U.S.C. App. 3, 8G(a)(2)) is amended by inserting ``the Consumer 
Financial Protection Commission,'' before ``the Consumer Product Safety 
Commission,''.
  (b) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 182. AMENDMENTS TO THE PRIVACY ACT OF 1974.

  (a) Applicability.--Section 552a of title 5, United States Code, is 
amended by adding at the end the following new subsection:
  ``(w) Applicability to Consumer Financial Protection Agency.--Except 
as provided in the Consumer Financial Protection Commission Act of 
2009, this section shall apply with respect to the Consumer Financial 
Protection Commission.''.
  (b) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 183. AMENDMENTS TO THE ALTERNATIVE MORTGAGE TRANSACTION PARITY ACT 
                    OF 1982.

  (a) Section 803(1).--Section 803(1) of the Alternative Mortgage 
Transaction Parity Act of 1982 (12 U.S.C. 3802(1)) is amended by 
striking paragraphs (B) and (C).
  (b) Section 804(a).--Section 804(a) of the Alternative Mortgage 
Transaction Parity Act of l982 (12 U.S.C. 3803(a)) is amended--
          (1) in paragraphs (1), (2), and (3), by inserting ``on or 
        before the designated transfer date, as determined in section 
        1062 of the Consumer Financial Protection Commission Act of 
        2009'' after ``transactions made'' each place such term 
        appears;
          (2) in paragraph (2), by striking ``and'' at the end;
          (3) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following new paragraph:
          ``(4) with respect to transactions made after the designated 
        transfer date, as determined in section 1062 of the Consumer 
        Financial Protection Commission Act of 2009, only in accordance 
        with regulations governing alternative mortgage transactions as 
        issued by the Consumer Financial Protection Commission for 
        federally chartered housing creditors, in accordance with the 
        rulemaking authority granted to the Consumer Financial 
        Protection Commission with regard to federally chartered 
        housing creditors under laws other than this section.''.
  (c) Section 804.--Section 804 of the Alternative Mortgage Transaction 
Parity Act of l982 (12 U.S.C. 3803) is amended--
          (1) by striking subsection (c) and inserting the following 
        new subsection:
  ``(c) Effect of State Law.--
          ``(1) In general.--An alternative mortgage transaction may be 
        made by a housing creditor in accordance with this section, 
        notwithstanding any State Constitution, law, or regulation that 
        prohibits an alternative mortgage transaction.
          ``(2) Rule of construction.--For purposes of this subsection, 
        a State Constitution, law, or regulation that prohibits an 
        alternative mortgage transaction does not include any State 
        Constitution, law, or regulation that regulates mortgage 
        transactions generally, including any restriction on prepayment 
        penalties or late charges.''; and
          (2) by adding at the end the following new subsection:
  ``(d) Duties of Consumer Financial Protection Commission.--The 
Consumer Financial Protection Commission shall--
          ``(1) review the regulations identified by the Comptroller of 
        the Currency, the National Credit Union Administration, and the 
        Director of the Office of Thrift Supervision (as those 
        regulations exist on the designated transfer date, as 
        determined in section 1062 of the Consumer Financial Protection 
        Commission Act of 2009) as applicable under paragraphs (1), 
        (2), and (3) of subsection (a);
          ``(2) determine whether such regulations are fair and not 
        deceptive and otherwise meet the objectives of section 121 of 
        the Consumer Financial Protection Commission Act of 2009; and
          ``(3) prescribe regulations under subsection (a)(4) after the 
        designated transfer date, as determined under such Act.''.
  (d) Effective Date and Scope of Application.--
          (1) Effective date.--This section shall take effect on the 
        designated transfer date.
          (2) Scope of application.--The amendments made by subsection 
        (a) shall not affect any transaction covered by the Alternative 
        Mortgage Transaction Parity Act of l982 which is entered into 
        on or before the designated transfer date.

SEC. 184. AMENDMENTS TO THE CONSUMER CREDIT PROTECTION ACT.

  (a) Truth in Lending Act.--
          (1) Section 103.--Section 103 of the Truth in Lending Act (15 
        U.S.C. 1602) is amended by striking subsection (b) and 
        inserting the following new subsection:
  ``(b) Definition of Board.--The term `Board' means the `Board of 
Governors of the Federal Reserve System'''.
          (2) Universal amendment relating to board of governors of the 
        federal reserve system.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Truth in Lending Act (15 U.S.C. 1601 et seq.) 
                is amended by striking ``Board'' each place such term 
                appears, including in chapters 4 and 5 relating to 
                credit billing and consumer leases, and inserting 
                ``Consumer Financial Protection Commission''.
                  (B) Exceptions.--The amendment described in 
                subparagraph (A) shall not apply to sections 108(a) (as 
                amended by paragraph (4)) and 140(d)) or any reference 
                in either such section to the term ``Board''.
          (3) Section 105.--Section 105(b) of the Truth in Lending Act 
        (15 U.S.C. 1604(b)) is amended by striking the first sentence 
        and inserting the following: ``The Consumer Financial 
        Protection Commission shall publish a single, integrated 
        disclosure for mortgage loan transactions, including real 
        estate settlement cost statements, which include the disclosure 
        requirements of this title, in conjunction with the disclosure 
        requirements of the Real Estate Settlement Procedures Act that, 
        taken together, may apply to transactions subject to both or 
        either law. The purpose of such model disclosure shall be to 
        facilitate compliance with the disclosure requirements of those 
        titles, and to aid the borrower or lessee in understanding the 
        transaction by utilizing readily understandable language to 
        simplify the technical nature of the disclosures.''.
          (4) Section 108.--Section 108 of the Truth in Lending Act (15 
        U.S.C. 1607) is amended--
                  (A) by striking subsection (a) and inserting the 
                following new subsection:
  ``(a) Enforcing Agencies.--Subject to section 122 of the Consumer 
Financial Protection Commission Act of 2009, compliance with the 
requirements imposed under this title shall be enforced as follows:
          ``(1) Under section 8 of the Federal Deposit Insurance Act, 
        in the case of--
                  ``(A) national banks, and Federal branches and 
                Federal agencies of foreign banks, by the head of the 
                agency responsible for chartering and regulating 
                national banks;
                  ``(B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, and organizations operating under 
                section 25 or 25(a) of the Federal Reserve Act, by the 
                Board;
                  ``(C) depository institution insured by the Federal 
                Deposit Insurance Corporation (other than members of 
                the Federal Reserve System, Federal savings 
                associations, and savings and loan holding companies) 
                and insured State branches of foreign banks, by the 
                Board of Directors of the Federal Deposit Insurance 
                Corporation; and
                  ``(D) Federal savings associations and savings and 
                loan holding companies, by the Director of the Office 
                of Thrift Supervision.
          ``(2) Under subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Commission.
          ``(3) Under the Federal Credit Union Act, by the head of the 
        agency responsible for chartering and regulating Federal credit 
        unions.
          ``(4) Under the Federal Aviation Act of 1958, by the 
        Secretary of Transportation with respect to any air carrier or 
        foreign air carrier subject to that Act.
          ``(5) Under the Packers and Stockyards Act, 1921 (except as 
        provided in section 406 of that Act), by the Secretary of 
        Agriculture with respect to any activities subject to that Act.
          ``(6) Under the Farm Credit Act of 1971, by the Farm Credit 
        Administration with respect to any Federal land bank, Federal 
        land bank association, Federal intermediate credit bank, or 
        production credit association.''; and
                  (B) by striking subsection (c) and inserting the 
                following new subsection:
  ``(c) Overall Enforcement Authority of the Federal Trade 
Commission.--Except to the extent that enforcement of the requirements 
imposed under this title is specifically committed to some other 
Government agency under subsection (a) and subject to section 122 of 
the Consumer Financial Protection Commission Act of 2009, the Federal 
Trade Commission shall enforce such requirements. For the purpose of 
the exercise by the Federal Trade Commission of its functions and 
powers under the Federal Trade Commission Act, a violation of any 
requirement imposed under this title shall be deemed a violation of a 
requirement imposed under that Act. All of the functions and powers of 
the Federal Trade Commission under the Federal Trade Commission Act are 
available to the Consumer Financial Protection Commission to enforce 
compliance by any person with the requirements under this title, 
irrespective of whether that person is engaged in commerce or meets any 
other jurisdictional tests in the Federal Trade Commission Act.''.
          (5) Universal amendment relating to the federal trade 
        commission.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Truth in Lending Act (15 U.S.C. 1601 et seq.) 
                is amended by striking ``Federal Trade Commission'' 
                each place such term appears and inserting ``Consumer 
                Financial Protection Commission''.
                  (B) Exceptions.--The amendment described in 
                subparagraph (A) shall not apply to sections 108(c) (as 
                amended by paragraph (4)) and 129(m) (as amended by 
                paragraph (7)) or any reference in either such section 
                to the term ``Federal Trade Commission''.
          (6) Section 127.--Subparagraph (C) of section 127(b)(11) of 
        the Truth in Lending Act (15 U.S.C. 1637(b)(11)) is amended to 
        read as follows:
                  ``(C) Notwithstanding subparagraphs (A) and (B), in 
                the case of a creditor with respect to which compliance 
                with this title is enforced by the Consumer Financial 
                Protection Commission , the following statement, in a 
                prominent location on the front of the billing 
                statement, disclosed clearly and conspicuously: 
                `Minimum Payment Warning: Making only the required 
                minimum payment will increase the interest you pay and 
                the time it takes to repay your balance. For example, 
                making only the typical 5 percent minimum monthly 
                payment on a balance of $300 at an interest rate of 17 
                percent would take 24 months to repay the balance in 
                full. For an estimate of the time it would take to 
                repay your balance, making only minimum monthly 
                payments, call the Consumer Financial Protection 
                Commission at this toll-free number: _________ [the 
                blank space to be filled in by the creditor].' A 
                creditor who is subject to this subparagraph shall not 
                be subject to subparagraph (A) or (B).''.
          (7) Section 129.--Section 129(m) of the Truth in Lending Act 
        (15 U.S.C. 1639(m)) is amended to read as follows:
  ``(m) Civil Penalties in Federal Trade Commission Enforcement 
Actions.--For purposes of enforcement by the Federal Trade Commission, 
any violation of a regulation issued by the Consumer Financial 
Protection Commission pursuant to subsection (l)(2) of this section 
shall be treated as a violation of a regulation promulgated under 
section 18 of the Federal Trade Commission Act (15 U.S.C. 57a) 
regarding unfair or deceptive acts or practices.''.
  (b) Fair Credit Reporting Act.--
          (1) Universal amendments relating to the federal trade 
        commission.--Other than in connection with the amendment made 
        by paragraph (7)(A), the Fair Credit Reporting Act (15 U.S.C. 
        1681a) is amended--
                  (A) by striking ``Federal Trade Commission'' each 
                place such term appears and inserting ``Consumer 
                Financial Protection Commission'';
                  (B) by striking ``Commission'' each place such term 
                appears (other than in connection with the term amended 
                in subparagraph (A)) and inserting ``Consumer Financial 
                Protection Commission''; and
                  (C) by striking ``Federal banking agencies, the 
                National Credit Union Administration, and the 
                Commission shall jointly'' each place such term appears 
                in sections 605(h)(2), 623(a)(8)(A), and 623(e)(1) and 
                inserting ``Consumer Financial Protection Commission 
                shall''.
          (2) Section 603.--Section 603(k)(2) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681a(k)(2)) is amended by striking 
        ``Board of Governors of the Federal Reserve System'' and 
        inserting ``Consumer Financial Protection Commission''.
          (3) Section 604.--Subsection 604(g) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681b(g)) is amended--
                  (A) by striking subparagraph (C) of paragraph (3) and 
                inserting the following new subsections:
                  ``(C) as otherwise determined to be necessary and 
                appropriate, by regulation or order and subject to 
                paragraph (6), by the Consumer Financial Protection 
                Commission (with respect to any covered person subject 
                to the jurisdiction of such agency under paragraph (2) 
                of section 621(b)), or the applicable State insurance 
                authority (with respect to any person engaged in 
                providing insurance or annuities).''; and
                  (B) by striking paragraph (5) and inserting the 
                following new paragraph:
          ``(5) Regulations and effective date for paragraph (2).--
                  ``(A) Regulations required.--The Consumer Financial 
                Protection Commission may, after notice and opportunity 
                for comment, prescribe regulations that permit 
                transactions under paragraph (2) that are determined to 
                be necessary and appropriate to protect legitimate 
                operational, transactional, risk, consumer, and other 
                needs (and which shall include permitting actions 
                necessary for administrative verification purposes), 
                consistent with the intent of paragraph (2) to restrict 
                the use of medical information for inappropriate 
                purposes.''.
          (4) Section 611.--Subsection 611(e)(2) of the Fair Credit 
        Reporting Act (15 U.S.C.1681i(e)(2)) is amended to read as 
        follows:
          ``(2) Exclusion.--Complaints received or obtained by the 
        Consumer Financial Protection Commission pursuant to its 
        investigative authority under the Consumer Financial Protection 
        Commission Act of 2009 shall not be subject to paragraph 
        (1).''.
          (5) Section 615.--Subparagraph 615(h)(6)(A) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681m(h)(6)(A)) is amended to 
        read as follows:
                  ``(A) Rules required.--The Consumer Financial 
                Protection Commission shall prescribe rules.''.
          (6) Section 621.--Section 621 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681s) is amended--
                  (A) by striking subsection (a) and inserting the 
                following new subsection:
  ``(a) Enforcement by Federal Trade Commission.--
          ``(1) In general.--Subject to section 122 of the Consumer 
        Financial Protection Commission Act of 2009, compliance with 
        the requirements imposed under this title shall be enforced 
        under the Federal Trade Commission Act by the Federal Trade 
        Commission with respect to consumer reporting agencies and all 
        other persons subject thereto, except to the extent that 
        enforcement of the requirements imposed under this title is 
        specifically committed to some other government agency under 
        subsection (b) hereof. For the purpose of the exercise by the 
        Federal Trade Commission of its functions and powers under the 
        Federal Trade Commission Act, a violation of any requirement or 
        prohibition imposed under this title shall constitute an unfair 
        or deceptive act or practice in commerce in violation of 
        section 5(a) of the Federal Trade Commission Act and shall be 
        subject to enforcement by the Federal Trade Commission under 
        section 5(b) of such Act with respect to any consumer reporting 
        agency or person subject to enforcement by the Federal Trade 
        Commission pursuant to this subsection, irrespective of whether 
        that person is engaged in commerce or meets any other 
        jurisdictional tests in the Federal Trade Commission Act. The 
        Federal Trade Commission shall have such procedural, 
        investigative, and enforcement powers (subject to section 122 
        of the Consumer Financial Protection Commission Act of 2009), 
        including the power to issue procedural rules in enforcing 
        compliance with the requirements imposed under this title and 
        to require the filing of reports, the production of documents, 
        and the appearance of witnesses as though the applicable terms 
        and conditions of the Federal Trade Commission Act were part of 
        this title. Any person violating any of the provisions of this 
        title shall be subject to the penalties and entitled to the 
        privileges and immunities provided in the Federal Trade 
        Commission Act as though the applicable terms and provisions 
        thereof were part of this title.
          ``(2) Civil money penalties.--
                  ``(A) In general.--Subject to section 122 of the 
                Consumer Financial Protection Commission Act of 2009, 
                in the event of a knowing violation, which constitutes 
                a pattern or practice of violations of this title, the 
                Commission may commence a civil action to recover a 
                civil penalty in a district court of the United States 
                against any person that violates this title. In such 
                action, such person shall be liable for a civil penalty 
                of not more than $2,500 per violation.
                  ``(B) Factors in determining amount.--In determining 
                the amount of a civil penalty under subparagraph (A), 
                the court shall take into account the degree of 
                culpability, any history of prior such conduct, ability 
                to pay, effect on ability to continue to do business, 
                and such other matters as justice may require.
          ``(3) Exception.--Notwithstanding paragraph (2), a court may 
        not impose any civil penalty on a person for a violation of 
        section 623(a)(1) unless the person has been enjoined from 
        committing the violation, or ordered not to commit the 
        violation, in an action or proceeding brought by or on behalf 
        of the Federal Trade Commission or the Consumer Financial 
        Protection Commission , as the case may be, and has violated 
        the injunction or order, and the court may not impose any civil 
        penalty for any violation occurring before the date of the 
        violation of the injunction or order.'';
                  (B) by striking subsection (b) and inserting the 
                following new subsection:
  ``(b) Enforcement by Other Agencies.--Subject to section 122 of the 
Consumer Financial Protection Commission Act of 2009, compliance with 
the requirements imposed under this title with respect to consumer 
reporting agencies, persons who use consumer reports from such 
agencies, persons who furnish information to such agencies, and users 
of information that are subject to subsection (d) of section 615 shall 
be enforced as follows:
          ``(1) Under section 8 of the Federal Deposit Insurance Act, 
        in the case of--
                  ``(A) national banks, and Federal branches and 
                Federal agencies of foreign banks, by the head of the 
                agency responsible for chartering and regulating 
                national banks;
                  ``(B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, and organizations operating under 
                section 25 or 25A of the Federal Reserve Act, by the 
                Board of Governors of the Federal Reserve System;
                  ``(C) banks insured by the Federal Deposit Insurance 
                Corporation (other than members of the Federal Reserve 
                System, Federal savings associations, and savings and 
                loan holding companies) and insured State branches of 
                foreign banks, by the Board of Directors of the Federal 
                Deposit Insurance Corporation; and
                  ``(D) Federal savings associations and savings and 
                loan holding companies, by the Director of the Office 
                of Thrift Supervision.
          ``(2) Under subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Consumer Financial Protection 
        Commission in the case of a covered person under that Act.
          ``(3) Under the Federal Credit Union Act, by the National 
        Credit Union Administration Board with respect to any Federal 
        credit union.
          ``(4) Under subtitle IV of title 49, United States Code, by 
        the Secretary of Transportation, with respect to all carriers 
        subject to the jurisdiction of the Surface Transportation 
        Board.
          ``(5) Under the Federal Aviation Act of 1958, by the 
        Secretary of Transportation with respect to any air carrier or 
        foreign air carrier subject to that Act.
          ``(6) Under the Packers and Stockyards Act, 1921 (except as 
        provided in section 406 of that Act), by the Secretary of 
        Agriculture with respect to any activities subject to that Act.
          ``(7) Under the Commodity Exchange Act, with respect to a 
        person subject to the jurisdiction of the Commodity Futures 
        Trading Commission.
          ``(8) Under the Federal securities law and any other laws 
        subject to the jurisdiction of the Securities and Exchange 
        Commission, with respect to a person subject to the 
        jurisdiction of the Securities and Exchange Commission.
Any term used in paragraph (1) that is not defined in this title or 
otherwise defined in section 3(s) of the Federal Deposit Insurance Act 
shall have the meaning given to such term in section 1(b) of the 
International Banking Act of 1978.'';
                  (C) by striking subsection (e) and inserting the 
                following new subsection:
  ``(e) Regulatory Authority.--The Consumer Financial Protection 
Commission shall prescribe such regulations as necessary to carry out 
the purposes of this Act with respect to a covered person described in 
subsection (b)''; and
                  (D) in the heading of subsection (g) by striking 
                ``FTC''.
          (7) Section 623.--Section 623 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681s-2) is amended--
                  (A) by amending subparagraph (a)(7)(D) to read as 
                follows:
                  ``(D) Model disclosure.--
                          ``(i) Duty of agency to prepare.--The 
                        Consumer Financial Protection Commission shall 
                        prescribe a brief model disclosure a financial 
                        institution may use to comply with subparagraph 
                        (A), which shall not exceed 30 words.
                          ``(ii) Use of model not required.--No 
                        provision of this paragraph shall be construed 
                        as requiring a financial institution to use any 
                        such model form prescribed by the Consumer 
                        Financial Protection Commission.
                          ``(iii) Compliance using model.--A financial 
                        institution shall be deemed to be in compliance 
                        with subparagraph (A) if the financial 
                        institution uses any such model form prescribed 
                        by the Consumer Financial Protection 
                        Commission, or the financial institution uses 
                        any such model form and rearranges its 
                        format.''.
                  (B) by amending subsection (e) to read as follows:
  ``(e) Accuracy Guidelines and Regulations Required.--
          ``(1) Guidelines.--The Consumer Financial Protection 
        Commission shall, with respect to the entities that are subject 
        to its enforcement authority under section 621--
                  ``(A) establish and maintain guidelines for use by 
                each person that furnishes information to a consumer 
                reporting agency regarding the accuracy and integrity 
                of the information relating to consumers that such 
                entities furnish to consumer reporting agencies, and 
                update such guidelines as often as necessary; and
                  ``(B) prescribe regulations requiring each person 
                that furnishes information to a consumer reporting 
                agency to establish reasonable policies and procedures 
                or implementing the guidelines established pursuant to 
                subparagraph (A).
          ``(2) Criteria.--In developing the guidelines required by 
        paragraph (1)(A), the Consumer Financial Protection Commission 
        shall--
                  ``(A) identify patterns, practices, and specific 
                forms of activity that can compromise the accuracy and 
                integrity of information furnished to consumer 
                reporting agencies;
                  ``(B) review the methods (including technological 
                means) used to furnish information relating to 
                consumers to consumer reporting agencies;
                  ``(C) determine whether persons that furnish 
                information to consumer reporting agencies maintain and 
                enforce policies to ensure the accuracy and integrity 
                of information furnished to consumer reporting 
                agencies; and
                  ``(D) examine the policies and processes that persons 
                that furnish information to consumer reporting agencies 
                employ to conduct reinvestigations and correct 
                inaccurate information relating to consumers that has 
                been furnished to consumer reporting agencies.''
  (c) Equal Credit Opportunity Act.--
          (1) Section 701.--Section 701 of the Equal Credit Opportunity 
        Act (15 U.S.C. 1691) is amended by striking ``Board'' each 
        place such term appears and inserting ``Consumer Financial 
        Protection Commission''.
          (2) Section 702.--Section 702(c) of the Equal Credit 
        Opportunity Act (15 U.S.C. 1691a) is amended to read as 
        follows:
  ``(c) The term `Commission' means the Consumer Financial Protection 
Commission.''.
          (3) Section 703.--Section 703 of the Equal Credit Opportunity 
        Act (15 U.S.C. 1691b) is amended--
                  (A) by striking subsection (b);
                  (B) by redesignating paragraphs (1), (2), (3), (4), 
                and (5) of subsection (a) as subsections (a), (b), (c), 
                (d), and (e), respectively;
                  (C) in subsection (c) (as so redesignated)--
                          (i) by striking ``paragraph (2)'' and 
                        inserting ``subsection (b)''; and
                          (ii) by striking ``such paragraph'' and 
                        inserting ``such subsection;''
                  (D) in subsection (d) (as so redesignated)--
                          (i) by striking ``subsection'' and inserting 
                        ``section'''
                          (ii) by striking ``Act'' and inserting 
                        ``title''; and
                          (iii) by striking ``this paragraph'' and 
                        inserting ``this subsection''; and
                  (E) by striking ``Board'' each place such term 
                appears in such section and inserting ``Commission''.
          (4) Section 704.--Section 704 of the Equal Credit Opportunity 
        Act (15 U.S.C. 1691c) is amended--
                  (A) in subsection (a)--
                          (i) in the matter preceding paragraph (1), by 
                        striking ``Compliance'' and inserting ``Subject 
                        to section 122 of the Consumer Financial 
                        Protection Commission Act of 2009, 
                        compliance'';
                          (ii) in paragraph (1)(A), by striking 
                        ``Office of the Comptroller of the Currency'' 
                        and inserting ``head of the agency responsible 
                        for chartering and regulating national banks'';
                          (iii) in paragraph (1)(B), by striking 
                        ``and'' after the semicolon;
                          (iv) in paragraph (1)(C), by inserting 
                        ``and'' after the semicolon;
                          (v) by inserting after subparagraph (C) of 
                        paragraph (1) the following new subparagraph:
                  ``(D) savings associations and savings and loan 
                holding companies by the Director of the Office of 
                Thrift Supervision;''; and
                          (vi) by amending paragraph (2) to read as 
                        follows:
          ``(2) Subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Consumer Financial Protection 
        Commission.'';
                  (B) by striking subsection (c) and inserting the 
                following new subsection:
  ``(c) Overall Enforcement Authority of Federal Trade Commission.--
Except to the extent that enforcement of the requirements imposed under 
this title is specifically committed to some other Government agency 
under subsection (a) and subject to section 102 of the Consumer 
Financial Protection Commission Act of 2009, the Federal Trade 
Commission shall enforce such requirements. For the purpose of the 
exercise by the Federal Trade Commission of its functions and powers 
under the Federal Trade Commission Act, a violation of any requirement 
imposed under this title shall be deemed a violation of a requirement 
imposed under that Act. All of the functions and powers of the Federal 
Trade Commission under the Federal Trade Commission Act are available 
to the Commission to enforce compliance by any person with the 
requirements imposed under this title, irrespective of whether that 
person is engaged in commerce or meets any other jurisdictional tests 
in the Federal Trade Commission Act, including the power to enforce any 
regulation prescribed by the Commission under this title in the same 
manner as if the violation had been a violation of a Federal Trade 
Commission trade regulation rule.''; and
                  (C) in subsection (d), by striking ``Board'' and 
                inserting ``Consumer Financial Protection Commission''.
          (5) Section 704a.--Section 704A(a)(1) of the Equal Credit 
        Opportunity Act (15 U.S.C. 1691c-1(a)(1)) is amended in by 
        striking ``Board'' and inserting ``Consumer Financial 
        Protection Commission''.
          (6) Section 705.--Section 705 of the Equal Credit Opportunity 
        Act (15 U.S.C. 1691d) is amended--
                  (A) in subsection (f), by striking ``Board'' each 
                place such term appears and inserting ``Consumer 
                Financial Protection Commission''; and
                  (B) in subsection (g), by striking ``Board'' and 
                inserting ``Consumer Financial Protection Commission''.
          (7) Section 706.--Section 706 of the Equal Credit Opportunity 
        Act (15 U.S.C. 1691e) is amended--
                  (A) in subsection (e)--
                          (i) by striking ``Board'' each place such 
                        term appears and inserting ``Consumer Financial 
                        Protection Commission''; and
                          (ii) by striking ``Federal Reserve System'' 
                        and inserting ``Consumer Financial Protection 
                        Commission'';
                  (B) in subsection (f), by striking ``two years'' each 
                place such term appears and inserting ``5 years'';
                  (C) in subsection (g)--
                          (i) by striking ``The agencies having'', in 
                        the 1st sentence, and inserting ``The Consumer 
                        Financial Protection Commission and the 
                        agencies having''
                          (ii) by striking ``Each agency referred'', in 
                        the 2nd sentence, and inserting ``The Consumer 
                        Financial Protection Commission and each agency 
                        referred'';
                          (iii) by striking ``Each such agency'', in 
                        the 3rd sentence, and inserting ``The Consumer 
                        Financial Protection Commission and each such 
                        agency''; and
                          (iv) by striking ``whenever the agency'' in 
                        the 3rd sentence, and inserting ``whenever the 
                        Consumer Financial Protection Commission or an 
                        agency having responsibility for administrative 
                        enforcement under section 704''; and
                  (D) in subsection (k)--
                          (i) by striking ``Whenever an agency'' and 
                        inserting ``Whenever the Consumer Financial 
                        Protection Commission or an agency'';
                          (ii) by striking ``the agency shall notify'' 
                        and inserting ``the Consumer Financial 
                        Protection Commission, or an agency referred to 
                        in any such paragraph, as the case may be, 
                        shall notify''.
          (8) Section 707.--Section 707 of the Equal Credit Opportunity 
        Act (15 U.S.C. 1691f) is amended by striking ``Board'' each 
        place such term appears and inserting ``Consumer Financial 
        Protection Commission''.
  (d) Fair Debt Collection Practices Act.--
          (1) Section 813.--Section 813(e) of the Fair Debt Collection 
        Practices Act (15 U.S.C. 1692k(e)) is amended by striking 
        ``Commission'' and inserting ``Consumer Financial Protection 
        Commission''.
          (2) Section 814.--Section 814 of the Fair Debt Collection 
        Practices Act (15 U.S.C. 1692l) is amended--
                  (A) by striking subsection (a) and inserting the 
                following new subsection:
  ``(a) Federal Trade Commission.--Subject to section 122 of the 
Consumer Financial Protection Commission Act of 2009, compliance with 
this title shall be enforced by the Commission, except to the extent 
that enforcement of the requirements imposed under this title is 
specifically committed to another agency under subsection (b). For 
purpose of the exercise by the Commission of its functions and powers 
under the Federal Trade Commission Act, a violation of this title shall 
be deemed an unfair or deceptive act or practice in violation of that 
Act. All of the functions and powers of the Commission under the 
Federal Trade Commission Act are available to the Commission to enforce 
compliance by any person with this title, irrespective of whether that 
person is engaged in commerce or meets any other jurisdictional tests 
in the Federal Trade Commission Act, including the power to enforce the 
provisions of this title in the same manner as if the violation had 
been a violation of a Federal Trade Commission trade regulation 
rule.'';
                  (B) in subsection (b)--
                          (i) in the matter preceding paragraph (1), by 
                        striking ``Compliance'' and inserting ``Subject 
                        to section 122 of the Consumer Financial 
                        Protection Commission Act of 2009, 
                        compliance''.
                          (ii) in paragraph (1)(A), by striking 
                        ``Office of the Comptroller of the Currency;'' 
                        and inserting ``head of the agency responsible 
                        for chartering and regulating national banks'';
                          (iii) in paragraph (1)(B), by striking 
                        ``and'' after the semicolon;
                          (iv) in paragraph (1)(C), by inserting 
                        ``and'' after the semicolon;
                          (v) by inserting after subparagraph (C) of 
                        paragraph (1) the following new subparagraph:
                  ``(D) savings associations and savings and loan 
                holding companies by the Director of the Office of 
                Thrift Supervision;''; and
                          (vi) by striking paragraph (2) and inserting 
                        the following new paragraph:
          ``(2) subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Consumer Financial Protection 
        Commission;''; and
                  (C) by striking subsection (d) and inserting the 
                following new subsection:.
  ``(d) Regulations.--The Consumer Financial Protection Commission may 
prescribe regulations with respect to the collection of debts by any 
debt collector.''.
          (3) Section 815.--Section 815 (15 U.S.C. 1692m) is amended by 
        striking ``Commission'' each place such term appears and 
        inserting ``Consumer Financial Protection Commission''.
          (4) Section 817.--Section 817 (15 U.S.C. 1692o) is amended by 
        striking ``Commission'' each place such term appears and 
        inserting ``Consumer Financial Protection Commission''.
  (e) Electronic Fund Transfer Act.--
          (1) Section 903.--Section 903 of the Electronic Fund Transfer 
        Act (15 U.S.C. 1693a) is amended in paragraph (6), by striking 
        ``Board'' and inserting ``Consumer Financial Protection 
        Commission''.
          (1) Section 904.--Section 904 of the Electronic Fund Transfer 
        Act (15 U.S.C. 1693b) is amended by striking ``Board'' each 
        place such term appears and inserting ``Consumer Financial 
        Protection Commission''.
          (2) Section 905.--Section 905 of the Electronic Fund Transfer 
        Act (15 U.S.C. 1693c) is amended by striking ``Board'' each 
        place such term appears and inserting ``Consumer Financial 
        Protection Commission''.
          (3) Section 906.--Section 906(b) of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693d(b)) is amended by striking 
        ``Board'' and inserting ``Consumer Financial Protection 
        Commission''.
          (4) Section 907.--Section 907(b) of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693e(b)) is amended by striking 
        ``Board'' and inserting ``Consumer Financial Protection 
        Commission''.
          (5) Section 908.--Section 908(f)(7) of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693f(f)(7)) is amended by striking 
        ``Board'' and inserting ``Consumer Financial Protection 
        Commission''.
          (6) Section 910.--Section 910(a)(1)(E) of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693h(a)(1)(E)) is amended by striking 
        ``Board'' and inserting ``Consumer Financial Protection 
        Commission''.
          (7) Section 911.--Section 911(b)(3) of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693i(b)(3) is amended by striking 
        ``Board'' and inserting ``Consumer Financial Protection 
        Commission''.
          (8) Section 915.--Section 915(d) of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693m(d)) is amended--
                  (A) by striking ``Board'' each place such term 
                appears and inserting ``Consumer Financial Protection 
                Commission''; and
                  (B) by striking ``Federal Reserve System'' and 
                inserting ``Consumer Financial Protection Commission''.
          (9) Section 917.--Section 917 of the Electronic Fund Transfer 
        Act (15 U.S.C. 1693o) is amended--
                  (A) in subsection (a)--
                          (i) by striking ``Compliance'' and inserting 
                        ``Subject to section 122 of the Consumer 
                        Financial Protection Commission Act of 2009, 
                        compliance'';
                          (ii) in paragraph (1)(A), by striking 
                        ``Office of the Comptroller of the Currency'' 
                        and inserting ``head of the agency responsible 
                        for chartering and regulating national banks''; 
                        and
                          (iii) by striking paragraph (2) and 
                        inserting:
          ``(2) subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Consumer Financial Protection 
        Commission;''; and
                  (B) by striking subsection (c) and inserting the 
                following new subsection:
  ``(c) Overall Enforcement Authority of the Federal Trade 
Commission.--Except to the extent that enforcement of the requirements 
imposed under this title is specifically committed to some other 
Government agency under subsection (a) and subject to section 122 of 
the Consumer Financial Protection Commission Act of 2009, the Federal 
Trade Commission shall enforce such requirements. For the purpose of 
the exercise by the Federal Trade Commission of its functions and 
powers under the Federal Trade Commission Act, a violation of any 
requirement imposed under this title shall be deemed a violation of a 
requirement imposed under that Act. All of the functions and powers of 
the Federal Trade Commission under the Federal Trade Commission Act are 
available to the Commission to enforce compliance by any person subject 
to the jurisdiction of the Commission with the requirements imposed 
under this title, irrespective of whether that person is engaged in 
commerce or meets any other jurisdictional tests in the Federal Trade 
Commission Act.''.
          (10) Section 918.--Section 918 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693p) is amended by striking ``Board'' 
        each place such term appears and inserting ``Consumer Financial 
        Protection Commission''.
          (11) Section 919.--Section 919 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693q) is amended by striking ``Board'' 
        each place such term appears and inserting ``Consumer Financial 
        Protection Commission''.
          (12) Section 920.--Section 920 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693r) is amended by striking ``Board'' 
        each place such term appears and inserting ``Consumer Financial 
        Protection Commission''.
  (f) Amendments to HOEPA Relating to the Truth in Lending Act.--
Section 158 of the Home Ownership and Equity Protection Act of 1994 (15 
U.S.C. 1601 nt.) (relating to hearings on home equity lending) is 
amended--
          (1) in subsection (a), by striking ``Board of Governors of 
        the Federal Reserve System, in consultation with the Consumer 
        Advisory Council of the Board,'' and inserting ``Consumer 
        Financial Protection Commission, in consultation with the 
        Advisory Board to the Commission''; and
          (2) in subsection (b), by striking ``Board of Governors of 
        the Federal Reserve System'' and inserting ``Consumer Financial 
        Protection Commission''.
  (g) Amendment to the Fair and Accurate Credit Transactions Act of 
2003 Relating to the Fair Credit Reporting Act.--Section 214(b)(1) of 
the Fair and Accurate Credit Transactions Act of 2003 (15 U.S.C. 1681s-
3 nt.) is amended by striking ``The Federal banking agencies, the 
National Credit Union Administration, and the Commission, with respect 
to the entities that are subject to their respective enforcement 
authority under section 621 of the Fair Credit Reporting Act and'' and 
inserting ``The Consumer Financial Protection Commission, with respect 
to a person subject to the enforcement authority of the Consumer 
Financial Protection Commission, the Commodity Futures Trading 
Commission, and''.

SEC. 185. AMENDMENTS TO THE EXPEDITED FUNDS AVAILABILITY ACT.

  (a) Section 605.--Section 605(f)(1) of the Expedited Funds 
Availability Act (12 U.S.C. 4004(f)(1)) is amended by inserting ``, in 
consultation with the Consumer Financial Protection Commission,''after 
``Board''.
  (b) Section 609.--Section 609(a) of the Expedited Funds Availability 
Act (12 U.S.C. 4008(a)) is amended by inserting ``, in consultation 
with the Consumer Financial Protection Commission,''after ``Board''.

SEC. 186. AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT.

  (a) Section 8.--Section 8(t) the Federal Deposit Insurance Act (12 
U.S.C. 1818(t)) is amended by adding at the end the following new 
paragraph:
          ``(6) Referral to consumer financial protection commission.--
        Each appropriate Federal banking agency shall make a referral 
        to the Consumer Financial Protection Commission when the 
        Federal banking agency has a reasonable belief that a violation 
        of an enumerated consumer law, as defined in section 122(e)(2) 
        of the Consumer Financial Protection Commission Act of 2009, by 
        any insured depository institution or institution-affiliated 
        party within the jurisdiction of that appropriate Federal 
        banking agency.''.
  (b) Section 43.--Section 43 of the Federal Deposit Insurance Act (12 
U.S.C. 1831t) is amended--
          (1) in subsection (c), by striking ``Federal Trade 
        Commission'' and inserting ``Consumer Financial Protection 
        Commission'';
          (2) in subsection (d), by striking ``Federal Trade 
        Commission'' and inserting ``Consumer Financial Protection 
        Commission'';
          (3) in subsection (e)(1), by striking ``Federal Trade 
        Commission'' and inserting ``Consumer Financial Protection 
        Commission''.
  (e) Section 43(f).--Section 43(f) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831t(f)) is amended--
          (1) by striking paragraph (1) and inserting the following new 
        paragraph:
          ``(1) Limited enforcement authority.--Compliance with the 
        requirements of subsections (b), (c) and (e), and any 
        regulation prescribed or order issued under such subsection, 
        shall be enforced under the Consumer Financial Protection 
        Commission Act of 2009 by the Consumer Financial Protection 
        Commission with respect to any person (and without regard to 
        the provision of a consumer financial product or service).''; 
        and
          (2) in paragraph (2), by striking subparagraph (C) and 
        inserting the following new subparagraph:
                  ``(C) Limitation on state action while federal action 
                pending.--If the Consumer Financial Protection 
                Commission has instituted an enforcement action for a 
                violation of this section, no appropriate State 
                supervisory may, during the pendency of such action, 
                bring an action under this section against any 
                defendant named in the complaint of the Consumer 
                Financial Protection Commission for any violation of 
                this section that is alleged in that complaint.''.

SEC. 187. AMENDMENTS TO THE GRAMM-LEACH-BLILEY ACT.

  (a) Section 504.--Section 504(a)(1) of the Gramm-Leach-Bliley Act (15 
U.S.C. 6804(a)(1)) is amended--
          (1) by striking ``The Federal banking agencies, the National 
        Credit Union Administration, the Secretary of the Treasury,'' 
        and inserting ``The Consumer Financial Protection Commission 
        and''; and
          (2) by striking ``, and the Federal Trade Commission''.
  (b) Section 505.--
          (1) Section 505(a) of the Gramm-Leach-Bliley Act (15 U.S.C. 
        6805(a)) is amended--
                  (A) in the matter preceding paragraph (1), by 
                striking ``This subtitle and the regulations prescribed 
                thereunder shall be enforced by'' and inserting 
                ``Subject to section 122 of the Consumer Financial 
                Protection Commission Act of 2009, this subtitle and 
                the regulations prescribed under this title shall be 
                enforced by the Consumer Financial Protection 
                Commission,''; and
                  (B) by inserting after paragraph (7) the following 
                new paragraph:
          ``(8) Under the Consumer Financial Protection Commission Act 
        of 2009, by the Consumer Financial Protection Commission in the 
        case of financial institutions and other covered persons and 
        service providers subject to the jurisdiction of the Consumer 
        Financial Protection Commission under that Act, but not with 
        respect to the standards under section 501.''.
          (2) Section 505(b)(1) of the Gramm-Leach-Bliley Act (15 
        U.S.C. 6805(b)(1)) is amended by inserting ``, other than the 
        Consumer Financial Protection Commission,'' after ``described 
        in subsection (a)''.

SEC. 188. AMENDMENTS TO THE HOME MORTGAGE DISCLOSURE ACT OF 1975.

  (a) Section 303.--Section 303 of the Home Mortgage Disclosure Act of 
1975 (12 U.S.C. 2802) is amended--
          (1) by redesignating paragraphs (1), (2), (3), (4), (5), and 
        (6) as paragraphs (2), (3), (4), (5), (6), and (7), 
        respectively; and
          (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
          ``(1) The term `Commission' means the Consumer Financial 
        Protection Commission.''.
  (b) Universal Amendment Relating to Commission.--Except as provided 
in subsections (c), (d), (e), and (f), the Home Mortgage Disclosure Act 
of 1975 (12 U.S.C. 2801-11) is amended by striking ``Board'' each place 
such term appears and inserting ``Commission''.
  (c) Section 304.--Section 304 of the Home Mortgage Disclosure Act of 
1975 (12 U.S.C. 2803(h)) is amended--
          (1) in subsection (b)--
                  (A) by striking ``and'' after the semicolon at the 
                end of paragraph (3);
                  (B) by striking ``and gender'' in paragraph (4), and 
                inserting ``age, and gender'';
                  (C) by striking the period at the end of paragraph 
                (4) and inserting a semicolon; and
                  (D) by inserting after paragraph (4) the following 
                new paragraphs:
          ``(5) the number and dollar amount of mortgage loans grouped 
        according to the following measurements:
                  ``(A) the total points and fees payable at 
                origination in connection with the mortgage as 
                determined by the Commission, taking into account 15 
                U.S.C. 1602(aa)(4);
                  ``(B) the difference between the annual percentage 
                rate associated with the loan and a benchmark rate or 
                rates for all loans;
                  ``(C) the term in months of any prepayment penalty or 
                other fee or charge payable on repayment of some 
                portion of principal or the entire principal in advance 
                of scheduled payments; and
                  ``(D) such other information as the Commission may 
                require; and
          ``(6) the number and dollar amount of mortgage loans and 
        completed applications grouped according to the following 
        measurements:
                  ``(A) the value of the real property pledged or 
                proposed to be pledged as collateral;
                  ``(B) the actual or proposed term in months of any 
                introductory period after which the rate of interest 
                may change;
                  ``(C) the presence of contractual terms or proposed 
                contractual terms that would allow the mortgagor or 
                applicant to make payments other than fully-amortizing 
                payments during any portion of the loan term;
                  ``(D) the actual or proposed term in months of the 
                mortgage loan;
                  ``(E) the channel through which application was made, 
                including retail, broker, and other relevant 
                categories;
                  ``(F) as the Commission may determine to be 
                appropriate, a unique identifier that identifies the 
                loan originator as set forth in Section 1503 of the 
                Secure and Fair Enforcement for Mortgage Licensing Act 
                of 2008;
                  ``(G) as the Commission may determine to be 
                appropriate, a universal loan identifier;
                  ``(H) as the Commission may determine to be 
                appropriate, the parcel number that corresponds to the 
                real property pledged or proposed to be pledged as 
                collateral;
                  ``(I) the credit score of mortgage applicants and 
                mortgagors in such form as the Commission may 
                prescribe, except that the Commission shall modify or 
                require modification of credit score data that is or 
                will be available to the public to protect the 
                compelling privacy interest of the mortgage applicant 
                or mortgagors; and
                  ``(J) such other information as the Commission may 
                require.'';
          (2) by striking subsection (h) and inserting the following 
        new subsection:
  ``(h) Submission to Agencies.--
          ``(1) In general.--The data required to be disclosed under 
        subsection (b) shall be submitted to the Commission or to the 
        appropriate agency for any institution reporting under this 
        title, in accordance with regulations prescribed by the 
        Commission. Institutions will not be required to report new 
        data required under section 188(c) before the first January 1 
        that occurs after the end of the 9-month period beginning on 
        the date that regulations prescribed by the Commission are 
        prescribed in final form.
          ``(2) Regulations.--Notwithstanding the requirement of 
        section 304(a)(2)(A) for disclosure by census tract, the 
        Commission, in cooperation with other appropriate regulators, 
        including--
                  ``(A) the head of the agency responsible for 
                chartering and regulating national banks for national 
                banks and Federal branches, Federal agencies of foreign 
                banks, and savings associations;
                  ``(B) the Federal Deposit Insurance Corporation for 
                depository institutions insured by the Federal Deposit 
                Insurance Corporation (other than members of the 
                Federal Reserve System, Federal savings associations, 
                and savings and loan holding companies) and insured 
                State branches of foreign banks;
                  ``(C) the Director of the Office of Thrift 
                Supervision for Federal savings associations and 
                savings and loan holding companies;
                  ``(D) the National Credit Union Administration Board 
                for credit unions; and
                  ``(E) the Secretary of Housing and Urban Development 
                for other lending institutions not regulated by an 
                agency referred to in subparagraphs (A), (B), (C), or 
                (D),
        shall develop regulations prescribing the format for such 
        disclosures, the method for submission of the data to the 
        appropriate regulatory agency, and the procedures for 
        disclosing the information to the public.
          ``(3) Required disclosures.--The regulations prescribed under 
        paragraph (2) shall require the collection of data required to 
        be disclosed under subsection (b) with respect to loans sold by 
        each institution reporting under this title, and, in addition, 
        shall require disclosure of the class of the purchaser of such 
        loans.
          ``(4) Additional data or explanations.--Any reporting 
        institution may submit in writing to the Commission or to the 
        appropriate agency such additional data or explanations as it 
        deems relevant to the decision to originate or purchase 
        mortgage loans.'';
          (3) in subsection (i), by striking ``subsection (b)(4)'' and 
        inserting ``paragraphs (4), (5), and (6) of subsections (b)'';
          (4) in subsection (j)--
                  (A) by striking ``(as'' where such term appears in 
                paragraph (1) and inserting ``(containing loan-level 
                and application-level information relating to 
                disclosures required under subsections (a) and (b) and 
                as otherwise'';
                  (B) by striking ``in the format in which such 
                information is maintained by the institution'' where 
                such term appears in paragraph (2)(A), and inserting 
                ``in such formats as the Commission may require''; and
                  (C) by striking paragraph (3) and inserting the 
                following new paragraph:
          ``(3) Change of form not required.--A depository institution 
        meets the disclosure requirement of paragraph (1) if the 
        institution provides the information required under such 
        paragraph in such formats as the Commission may require.''; and
          (5) by striking paragraph (2) of subsection (m) and inserting 
        the following new paragraph:
          ``(2) Form of information.--In complying with paragraph (1), 
        a depository institution shall provide the person requesting 
        the information with a copy of the information requested in 
        such formats as the Commission may require.''.
  (d) Section 305.--Section 305 of the Home Mortgage Disclosure Act of 
1975 (12 U.S.C. 2804) is amended--
          (1) by striking subsection (b) and inserting the following 
        new subsection:
  ``(b) Powers of Certain Other Agencies.--Compliance with the 
requirements imposed under this title shall be enforced under--
          ``(1) section 8 of the Federal Deposit Insurance Act, in the 
        case of--
                  ``(A) national banks, and Federal branches and 
                Federal agencies of foreign banks, by the head of the 
                agency responsible for chartering and regulating 
                national banks;
                  ``(B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, and organizations operating under 
                section 25 or 25(a) of the Federal Reserve Act, by the 
                Board;
                  ``(C) depository institutions insured by the Federal 
                Deposit Insurance Corporation (other than members of 
                the Federal Reserve System, Federal savings 
                associations, and savings and loan holding companies) 
                and insured State branches of foreign banks, by the 
                Board of Directors of the Federal Deposit Insurance 
                Corporation; and
                  ``(D) Federal savings associations, and savings and 
                loan holding companies, by the Director of the Office 
                of Thrift Supervision;
          ``(2) subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Commission;
          ``(3) the Federal Credit Union Act, by the Administrator of 
        the National Credit Union Administration with respect to any 
        credit union; and
          ``(4) other lending institutions, by the Secretary of Housing 
        and Urban Development. The terms used in paragraph (1) that are 
        not defined in this title or otherwise defined in section 3(s) 
        of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall 
        have the meaning given to them in section 1(b) of the 
        International Banking Act of 1978 (12 U.S.C. 3101).
The terms used in paragraph (1) that are not defined in this title or 
otherwise defined in section 3(s) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(s)) shall have the meaning given to them in section 
1(b) of the International Banking Act of 1978''; and
          (2) by inserting at the end of section 305 the following new 
        subsection:
  ``(d) Overall Enforcement Authority of the Consumer Financial 
Protection Agency.--Subject to section 122 of the Consumer Financial 
Protection Commission Act of 2009, enforcement of the requirements 
imposed under this title is committed to each of the agencies under 
subsection (b). The Commission may exercise its authorities under the 
Consumer Financial Protection Commission Act of 2009 to exercise 
principal authority to examine and enforce compliance by any person 
with the requirements under this title.''.
  (e) Section 306.--Subsection 306(b) of the Home Mortgage Disclosure 
Act of 1975 (12 U.S.C. 2805(b)) is amended to read as follows:
  ``(b) The Commission may, by regulation, exempt from the requirements 
of this title any State chartered depository institution within any 
State or subdivision of any state if the Commission determines that, 
under the law of such State or subdivision, that institution is subject 
to requirements substantially similar to those imposed under this 
title, and that such law contains adequate provisions for enforcement. 
Notwithstanding any other provision of this subsection, compliance with 
the requirements imposed under this subsection shall be enforced by the 
head of the agency responsible for chartering and regulating national 
banks under section 8 of the Federal Deposit Insurance Act in the case 
of national banks and savings association the deposits of which are 
insured by the Federal Deposit Insurance Corporation.''.
  (f) Section 307.--Section 307 of the Home Mortgage Disclosure Act of 
1975 (12 U.S.C. 2806) is amended to read as follows:

``SEC. 307. RESEARCH AND IMPROVED METHODS.

  ``(a) Enhanced Compliance in Economical Manner.--
          ``(1) In general.--The Consumer Financial Protection 
        Commission, with the assistance of the Secretary, the Director 
        of the Bureau of the Census, the Board of Governors of the 
        Federal Reserve System, the Federal Deposit Insurance 
        Corporation, and such other persons as the Consumer Financial 
        Protection Commission deems appropriate, shall develop or 
        assist in the improvement of, methods of matching addresses and 
        census tracts to facilitate compliance by depository 
        institutions in as economical a manner as possible with the 
        requirements of this title.
          ``(2) Authorization of appropriation.--There is authorized to 
        be appropriated such sums as may be necessary to carry out this 
        subsection.
          ``(3) Authority of commission.--The Consumer Financial 
        Protection Commission is authorized to utilize, contract with, 
        act through, or compensate any person or agency in order to 
        carry out this subsection.
  ``(b) Recommendations to the Congress.--The Consumer Financial 
Protection Commission shall recommend to the Committee on Financial 
Services of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate such additional legislation as 
the Consumer Financial Protection Commission deems appropriate to carry 
out the purpose of this title.''.

SEC. 189. AMENDMENTS TO DIVISION D OF THE OMNIBUS APPROPRIATIONS ACT, 
                    2009.

  (a) Section 626(a) of title VI of division D of the Omnibus 
Appropriations Act, 2009 (15 U.S.C. 1638 nt.) (as amended by the Credit 
Card Accountability Responsibility and Disclosure Act of 2009) is 
amended--
          (1) by striking by paragraph (1) and inserting the following 
        new paragraph:
          ``(1) The Consumer Financial Protection Commission shall have 
        authority to prescribe regulations with respect to mortgage 
        loans in accordance with section 553 of title 5, United States 
        Code. Such rulemaking shall relate to unfair or deceptive acts 
        or practices regarding mortgage loans, which may include unfair 
        or deceptive acts or practices involving loan modification and 
        foreclosure rescue services. Any violation of a regulation 
        prescribed under this subsection shall be treated as a 
        violation of a regulation prohibiting unfair, deceptive, or 
        abusive acts or practices under the Consumer Financial 
        Protection Commission Act of 2009.'';
          (2) by striking paragraph (2);
          (3) by striking paragraph (3); and
          (4) by striking paragraph (4) and inserting the following new 
        paragraph:
          ``(2) The Consumer Financial Protection Commission shall 
        enforce the regulations issued under paragraph (1) in the same 
        manner, by the same means, and with the same jurisdiction, 
        powers, and duties as though all applicable terms and 
        provisions of the Consumer Financial Protection Commission Act 
        of 2009 were incorporated into and made part of this 
        section.''.
  (b) Section 626(b) of title VI of division D of the Omnibus 
Appropriations Act, 2009 (15 U.S.C. 1638 nt.) is amended--
          (1) by striking ``Federal Trade Commission'' and inserting 
        ``Consumer Financial Protection Commission'';
          (2) by striking ``the Commission'' and inserting ``the 
        Consumer Financial Protection Commission''; and
          (3) by striking ``primary Federal regulatory'' and inserting 
        ``Consumer Financial Protection Commission''.

SEC. 190. AMENDMENTS TO THE HOMEOWNERS PROTECTION ACT OF 1998.

  Section 10 of the Homeowners Protection Act of 1998 (12 U.S.C. 4909) 
is amended--
          (1) in that portion of subsection (a) that precedes paragraph 
        (1), subsection (a), by striking ``Compliance'' and inserting 
        ``Subject to section 122 of the Consumer Financial Protection 
        Commission Act of 2009, compliance'';
          (2) in subsection (a)(2), by striking ``and after the 
        semicolon at the end;''
          (3) in subsection (a)(3), by striking the period at the end 
        and inserting ``; and'';
          (4) by inserting after subsection (a)(3), the following new 
        paragraph:
          ``(4) subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Consumer Financial Protection 
        Commission.''; and.
          (5) in subsection (b)(2), by inserting ``, subject to section 
        122 of the Consumer Financial Protection Commission Act of 
        2009'' before the period at the end.

SEC. 191. AMENDMENTS TO THE REAL ESTATE SETTLEMENT PROCEDURES ACT OF 
                    1974.

  (a) Section 4.--Section 4 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2603) is amended--
          (1) in subsection (a), by striking the first sentence and 
        inserting the following: ``The Consumer Financial Protection 
        Commission shall publish a single, integrated disclosure for 
        mortgage loan transactions, including real estate settlement 
        cost statements, which include the disclosure requirements of 
        this title, in conjunction with the disclosure requirements of 
        the Truth in Lending Act (15 U.S.C. 1601 note et seq.) that, 
        taken together, may apply to transactions subject to both or 
        either law. The purpose of such model disclosure shall be to 
        facilitate compliance with the disclosure requirements of those 
        titles, and to aid the borrower or lessee in understanding the 
        transaction by utilizing readily understandable language to 
        simplify the technical nature of the disclosures.'';
          (2) by striking ``Secretary'' each place such term appears 
        and inserting ``Consumer Financial Protection Commission''; and
          (3) by striking ``form'' each place such term appears and 
        inserting ``forms''.
  (b) Section 5.--Section 5 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2604) is amended--
          (1) by striking ``Secretary'' each place such term appears, 
        and inserting ``Consumer Financial Protection Commission''; and
          (2) by striking the first sentence of subsection (a), and 
        inserting ``The Consumer Financial Protection Commission shall 
        prepare and distribute booklets jointly complying with the 
        requirements of the Truth in Lending Act (15 U.S.C. 1601 note 
        et seq.) and the provisions of this title, in order to help 
        persons borrowing money to finance the purchase of residential 
        real estate better to understand the nature and costs of real 
        estate settlement services.''.
  (c) Section 6.--Section 6(j)(3) of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2605(j)(3)) is amended--
          (1) by striking ``Secretary'' and inserting ``Consumer 
        Financial Protection Commission''; and
          (2) by striking ``by regulations that shall take effect not 
        later than April 20, 1991,'' and inserting ``by regulation,''.
  (d) Section 7.--Section 7 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2606) is amended by striking ``Secretary'' and 
inserting ``the Consumer Financial Protection Commission''.
  (e) Section 8.--Section 8 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2607) is amended--
          (1) in subsection (c)(5), by striking ``prescribed by the 
        Secretary'' and inserting ``prescribed by the Consumer 
        Financial Protection Commission''; and
          (2) in subsection (d)(4)--
                  (A) by striking ``The Secretary,'' and inserting 
                ``The Consumer Financial Protection Commission, the 
                Secretary,''; and
                  (B) by adding at the end the following new sentence: 
                ``However, to the extent that a Federal law authorizes 
                the Consumer Financial Protection Commission and other 
                Federal and State agencies to enforce or administer the 
                law, the Consumer Financial Protection Commission shall 
                have primary authority to enforce or administer that 
                Federal law in accordance with section 122 of the 
                Consumer Financial Protection Commission Act of 
                2009.''.
  (f) Section 10.--Section 10(d) of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2609(d)) is amended by striking 
``Secretary'' and inserting ``Consumer Financial Protection 
Commission''.
  (g) Section 16.--Section 16 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2614) is amended by inserting ``the Consumer 
Financial Protection Commission,'' before ``the Secretary''.
  (h) Section 18.--Section 18 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2616) is amended by striking ``Secretary each 
place such term appears'' and inserting ``Consumer Financial Protection 
Commission''.
  (i) Section 19.--Section 19 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2617) is amended by striking ``Secretary'' each 
place where such term appears and inserting ``Consumer Financial 
Protection Commission''.

SEC. 192. AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978.

  (a) Amendments to Section 1101.--Section 1101 of the Right to 
Financial Privacy Act of 1978 (12 U.S.C. 3401) is amended--
          (1) by striking paragraph (1) and inserting the following new 
        paragraph:
          ``(1) `financial institution' means any bank, savings 
        association, card issuer as defined in section 103(n) of the 
        Truth in Lending Act, credit union, or consumer finance 
        institution located in any State or territory of the United 
        States, the District of Columbia, Puerto Rico, Guam, American 
        Samoa, or the Virgin Islands;''; and
          (2) in paragraph (7)--
                  (A) by redesignating subparagraphs (F), (G), (H), and 
                (I) as subparagraphs (G), (H), (I), and (J), 
                respectively; and
                  (B) by inserting after subparagraph (E) the following 
                new subparagraph:
                  ``(F) the Consumer Financial Protection 
                Commission;''.
  (b) Amendments to Section 1112.--Section 1112(e) of the Right to 
Financial Privacy Act (12 U.S.C. 3412) is amended by striking ``and the 
Commodity Futures Trading Commission is permitted'' and inserting ``the 
Commodity Futures Trading Commission, and the Consumer Financial 
Protection Commission is permitted''.
  (c) Amendments to Section 1113.--Section 1113 of the Right to 
Financial Privacy Act (12 U.S.C. 3413) is amended by adding at the end 
the following new subsection--
  ``(r) Disclosure to the Consumer Financial Protection Commission.--
Nothing in this chapter shall apply to the examination by or disclosure 
to the Consumer Financial Protection Commission of financial records or 
information in the exercise of its authority with respect to a 
financial institution.''.

SEC. 193. AMENDMENTS TO THE SECURE AND FAIR ENFORCEMENT FOR MORTGAGE 
                    LICENSING ACT OF 2008.

  (a) Section 1503.--Section 1503 of the Secure and Fair Enforcement 
for Mortgage Licensing Act of 2008 (12 U.S.C. 5102) is amended--
          (1) by striking paragraph (9);
          (2) by redesignating existing paragraph (1) as paragraph (2), 
        redesignating existing paragraph (2) as paragraph (1), and 
        moving paragraph (2) (as so redesignated) and inserting such 
        paragraph after paragraph (1) (as so redesignated);
          (3) by redesignating paragraphs (1), (2), (3), (4), (5), (6), 
        (7), (8), (10), (11), and (12), as so redesignated by paragraph 
        (2), as paragraphs (2), (4), (5), (6), (7), (8), (9), (10), 
        (11), (12), and (13), respectively.
  (b) Universal Amendments Relating to Consumer Financial Protection 
Commission.--The Secure and Fair Enforcement for Mortgage Licensing Act 
of 2008 (12 U.S.C. 5101 et seq.) is amended--
          (1) by striking ``a Federal banking agency'' each place such 
        term appears (other than in paragraph (9)(A)(ii)(II) (as so 
        redesignated by subsection (a), relating to the definition of 
        registered loan originator) or paragraph (12)(B)(ii)(II) (as so 
        redesignated by subsection (a), relating to the definition of 
        State-licensed loan originators) of section 1503 of such Act or 
        inconnection with a reference that is specifically amended by 
        another provision of this section) and inserting ``the Consumer 
        Financial Protection Commission'';
          (2) by striking ``Federal banking agencies'' each place such 
        term appears (other than in subsection (a)(4) (as so 
        redesignated by subsection (a), relating to the definition of 
        Federal banking agencies) or inconnection with a reference that 
        is specifically amended by another provision of this section) 
        and inserting ``Consumer Financial Protection Commission''; and
          (3) by striking ``Secretary'' each place such term appears 
        (other than in connection with a reference that is specifically 
        amended by another provision of this section) and inserting 
        ``Commission''.
  (c) Section 1507.--Section 1507 of the Secure and Fair Enforcement 
for Mortgage Licensing Act of 2008 (12 U.S.C. 5106) is amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (1) and inserting the 
                following new paragraph:
          ``(1) In general.--The Consumer Financial Protection 
        Commission shall develop and maintain a system for registering 
        employees of any depository institution, employees of a 
        subsidiary that is owned and controlled by a depository 
        institution and regulated by a Federal banking agency, or 
        employees of an institution regulated by the Farm Credit 
        Administration, as registered loan originators with the 
        Nationwide Mortgage Licensing System and Registry. The system 
        shall be implemented before July 30, 2010.''; and
                  (B) by striking ``appropriate Federal banking agency 
                and the Farm Credit Administration'' where such term 
                appears in paragraph (2) and inserting ``Consumer 
                Financial Protection Commission''; and
          (2) in subsection (b), by striking ``Federal banking 
        agencies, through the Financial Institutions Examination 
        Council, and the Farm Credit Administration'', and inserting 
        ``Consumer Financial Protection Commission''.
  (d) Section 1508.--
          (1) In general.--Section 1508 of the Secure and Fair 
        Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5107) 
        is amended by adding at the end the following new subsection--
  ``(f) Regulations.--
          ``(1) In general.--The Consumer Financial Protection 
        Commission may prescribe regulations setting minimum net worth 
        or surety bond requirements for residential mortgage loan 
        originators and minimum requirements for recovery funds paid 
        into by loan originators.
          ``(2) Factors taken into account.--Such regulations shall 
        take into account the need to provide originators adequate 
        incentives to originate affordable and sustainable mortgage 
        loans as well as the need to ensure a competitive origination 
        market that maximizes consumers' access to affordable and 
        sustainable mortgage loans.''.
          (2) Clerical amendment.--The heading for section 1508 of the 
        Secure and Fair Enforcement for Mortgage Licensing Act of 2008 
        is amended by striking ``SECRETARY OF HOUSING AND URBAN 
        DEVELOPMENT'' and inserting ``CONSUMER FINANCIAL PROTECTION 
        COMMISSION''.
  (e) Section 1510.--Section 1510 of the Secure and Fair Enforcement 
for Mortgage Licensing Act of 2008 (12 U.S.C. 5109) is amended to read 
as follows:

``SEC. 1510. FEES.

  ``The Consumer Financial Protection Commission and the Nationwide 
Mortgage Licensing System and Registry may charge reasonable fees to 
cover the costs of maintaining and providing access to information from 
the Nationwide Mortgage Licensing System and Registry, to the extent 
that such fees are not charged to consumers for access to such system 
and registry.''.
  (f) Section 1513.--Section 1513 of the Secure and Fair Enforcement 
for Mortgage Licensing Act of 2008 (12 U.S.C. 5112) is amended to read 
as follows:

``SEC. 1513. LIABILITY PROVISIONS.

  ``The Consumer Financial Protection Commission, any State official or 
agency, or any organization serving as the administrator of the 
Nationwide Mortgage Licensing System and Registry or a system 
established by the Commission under section 1509, or any officer or 
employee of any such entity, shall not by subject to any civil action 
or proceeding for monetary damages by reason of the good faith action 
or omission of any officer or employee of any such entity, while acting 
within the scope of office or employment, relating to the collection, 
furnishing, or dissemination of information concerning persons who are 
loan originators or are applying for licensing or registration as loan 
originators.''.
  (g) Section 1514.--The heading for section 1514 of the Secure and 
Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5113) is 
amended by striking ``UNDER HUD BACKUP LICENSING SYSTEM'' and inserting 
``BY THE CONSUMER FINANCIAL PROTECTION COMMISSION''.

SEC. 194. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

  (a) Section 263.--Section 263 of the Truth in Savings Act (12 U.S.C. 
4302) is amended in subsection (b) by striking ``Board'' each place 
such term appears and inserting ``Consumer Financial Protection 
Commission''.
  (b) Section 265.--Section 265 of the Truth in Savings Act (12 U.S.C. 
4304) is amended by striking ``Board'' each place such term appears and 
inserting ``Consumer Financial Protection Commission''.
  (c) Section 266.--Section 266(e) of the Truth in Savings Act is 
amended (12 U.S.C. 4305) by striking ``Board'' and inserting ``Consumer 
Financial Protection Commission''.
  (d) Section 269.--Section 269 of the Truth in Savings Act (12 U.S.C. 
4308) is amended by striking ``Board'' each place such term appears and 
inserting ``Consumer Financial Protection Commission''.
  (e) Section 270.--Section 270 of the Truth in Savings Act (12 U.S.C. 
4309) is amended--
          (1) in subsection (a)--
                  (A) by striking ``Compliance'' and inserting 
                ``Subject to section 122 of the Consumer Financial 
                Protection Commission Act of 2009, compliance'';
                  (B) by striking subparagraph (A) of paragraph (1) and 
                inserting the following new subparagraph:
                  ``(A) by the head of the agency responsible for 
                chartering and regulating national banks for national 
                banks, and Federal branches and Federal agencies of 
                foreign banks;''; and
                  (C) by adding at the end, the following new 
                paragraph:
          ``(3) subtitle E of the Consumer Financial Protection 
        Commission Act of 2009, by the Consumer Financial Protection 
        Commission.''; and
          (2) in subsection (c), by striking ``Board'' and inserting 
        ``Consumer Financial Protection Commission''.
  (f) Section 272.--Section 272 of the Truth in Savings Act (12 U.S.C. 
4311) is amended--
          (1) in subsection (a), by striking ``Board'' and inserting 
        ``Consumer Financial Protection Commission''; and
          (2) in subsection (b), by striking ``regulation prescribed by 
        the Board'' each place such term appears and inserting 
        ``regulation prescribed by the Consumer Financial Protection 
        Commission''.
  (g) Section 273.--Section 273 of the Truth in Savings Act (12 U.S.C. 
4312) is amended in the last sentence by striking ``Board'' and 
inserting ``Consumer Financial Protection Commission''.
  (h) Section 274.--Section 274(2) of the Truth in Savings Act (12 
U.S.C. 4313) is amended by striking ``Board'' and inserting ``Consumer 
Financial Protection Commission''.

SEC. 195. MEMBERSHIP IN FINANCIAL LITERACY AND EDUCATION COMMISSION.

  Section 513(c)(1) of the Financial Literacy and Education Improvement 
Act (20 U.S.C. 9702(c)(1)) is amended--
          (1) in subparagraph (B), by striking ``and'' at the end;
          (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
          (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                  ``(C) the Consumer Financial Protection Commission; 
                and''.

SEC. 196. EFFECTIVE DATE.

  The amendments made by sections 183 through 195 shall take effect on 
the designated transfer date.

       TITLE II--IMPROVEMENTS TO THE FEDERAL TRADE COMMISSION ACT

SEC. 201. AMENDMENTS TO THE FEDERAL TRADE COMMISSION ACT.

  (a) Section 5(m)(1)(A) of the Federal Trade Commission Act (15 U.S.C. 
45(m)(1)(A)) is amended--
          (1) by inserting ``this Act or'' after ``violates'' the first 
        place such term appears;
          (2) by inserting a comma after ``Act'' and after 
        ``section)''; and
          (3) by inserting ``a violation of this Act or is'' before 
        ``prohibited''.
  (b) Section 5 of the Federal Trade Commission Act (15 U.S.C. 45) is 
amended by adding at the end thereof the following new subsection:
  ``(o) Unlawful Assistance.--It is unlawful for any person, knowingly 
or recklessly, to provide substantial assistance to another in 
violating any provision of this Act or of any other Act enforceable by 
the Commission that relates to unfair or deceptive acts or practices. 
Any such violation shall constitute an unfair or deceptive act or 
practice described in section 5(a)(1) of this Act.''.
  (c) Section 18 of the Federal Trade Commission Act (15 U.S.C. 57a) is 
amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) Procedure Applicable.--When prescribing a rule under subsection 
(a)(1)(B) of this section, the Commission shall proceed in accordance 
with section 553 of Title 5 (without regard to any reference in such 
section to sections 556 and 557 of such title).'';
          (2) by striking subsections (c), (d)(1), (d)(2), (f), (i), 
        and (j), and redesignating subsections (e), (g) and (h) as (d), 
        (e) and (f);
          (3) by redesignating paragraph (d)(3) as subsection (c); and
          (4) in subsection (e)--
                  (A) in paragraph (1)(B), by striking ``the transcript 
                required by subsection (c)(5) of this section,'';
                  (B) in paragraph (2), by striking everything 
                following ``error)''; and
                  (C) in paragraph (5), by striking subparagraph (C).
  (d) Section 16(a)(2) of the Federal Trade Commission Act (15 U.S.C. 
56(a)(2)) is amended--
          (1) in subparagraph (D) by striking ``; or'' and inserting a 
        semicolon; and
          (2) by inserting after subparagraph (E) the following:
          ``(F) to obtain a civil penalty authorized under any 
        provision of law enforced by the Commission.''.
  (e) Section 5(l) of the Federal Trade Commission Act (15 U.S.C. 
45(l)) is amended in the first sentence by inserting ``the Commission 
or'' after ``brought by''.

                          PURPOSE AND SUMMARY

    H.R. 3126, the Consumer Financial Protection Agency Act of 
2009, was introduced on July 8, 2009, by Rep. Barney Frank. 
H.R. 3126 is intended to improve consumer protection in the 
financial arena by creating one commission whose sole mission 
is consumer financial protection. H.R. 3126 would pull the 
consumer protection functions from each of the banking 
agencies, and some consumer financial protection functions from 
the Federal Trade Commission (FTC), and give those functions to 
the new commission. The legislation calls for the Consumer 
Financial Protection Agency (CFPA) to ensure that:
          1. consumers have, understand, and can use the 
        information they need to make responsible decisions 
        about consumer financial products or services;
          2. consumers are protected from abuse, unfairness, 
        deception, and discrimination;
          3. markets for consumer financial products or 
        services operate fairly and efficiently with ample room 
        for sustainable growth and innovation; and
          4. traditionally underserved consumers and 
        communities have access to financial services.
    H.R. 3126 would consolidate in this new commission all 
consumer protection functions related to financial products, 
including rulemaking, supervision and examination, and 
enforcement. CFPA would have its own authority to issue rules 
prohibiting unfair, deceptive, and abusive acts, and would 
become the sole rulemaking authority for consumer financial 
protection statutes, including the Truth in Lending Act, the 
Equal Credit Opportunity Act, and the Fair Debt Collection 
Practices Act.
    In addition, H.R. 3126 would provide the FTC with 
additional authorities to conduct rulemaking and enforce 
against unfair or deceptive acts or practices.

                  BACKGROUND AND NEED FOR LEGISLATION

    Consumer protection in the financial arena is governed by 
various agencies with different jurisdictions and regulatory 
approaches. This disparate regulatory system has been blamed in 
part for the lack of aggressive enforcement against abusive and 
predatory loan products that contributed to the financial 
crisis, such as subprime and nontraditional mortgages.
    FTC has broad authority to protect consumers from unfair, 
deceptive, and unlawful practices with respect to credit and 
debt. The authority of the FTC is limited, however, to those 
functions conducted by non-depository institutions. Depository 
institutions are overseen by the Office of the Comptroller of 
the Currency, the Office of Thrift Supervision, the Federal 
Reserve, the National Credit Union Administration, and the 
Federal Deposit Insurance Corporation.
    At a hearing before the House Committee on Financial 
Services held on June 24, 2009, Kathleen Keest of the Center 
for Responsible Lending testified that banking regulators have 
been hesitant to address abusive practices. She stated: 
``Because abusive practices often produce short term profit, 
these regulators have typically viewed consumer protections as 
nothing more than a restraint on bank activity and 
revenues.''\1\
---------------------------------------------------------------------------
    \1\House Committee on Financial Services, Testimony of Kathleen 
Keest, Hearing on Regulatory Restructuring: Enhancing Consumer 
Financial Products Regulation, 111th Cong. (June 24, 2009).
---------------------------------------------------------------------------
    FTC focuses on consumer protection, but it has a burdensome 
rulemaking process. At a hearing before the Subcommittee on 
Commerce, Trade, and Consumer Protection of the Committee on 
Energy and Commerce in March 2009, Chairman Jon Leibowitz 
testified that the FTC ``could have done more'' in the area of 
consumer credit, but that the FTC is ``a tiny agency'' that has 
been ``hamstrung by the Magnusson-Moss rulemaking process'' and 
lacks ``fining authority.''\2\
---------------------------------------------------------------------------
    \2\House Committee on Energy and Commerce, Subcommittee on 
Commerce, Trade, and Consumer Protection, Testimony of John Leibowitz, 
Chairman, Federal Trade Commission, Hearing on Consumer Credit and 
Debt: The Role of the Federal Trade Commission in Protecting the 
Public, 111th Cong. (Mar. 24, 2009).
---------------------------------------------------------------------------

                          LEGISLATIVE HISTORY

    The Consumer Financial Protection Agency Act of 2009, H.R. 
3126, was introduced on July 8, 2009, by Rep. Barney Frank as 
the ``Consumer Financial Protection Agency Act of 2009''. The 
bill was referred to the House Committee on Financial Services 
and the House Committee on Energy and Commerce. H.R. 3126 was 
subsequently referred to this Committee's Subcommittee on 
Commerce, Trade, and Consumer Protection on July 8, 2009. The 
Subcommittee held a legislative hearing titled: ``The Proposed 
Consumer Financial Protection Agency: Implications for 
Consumers and the FTC.'' This hearing examined the proposal by 
the Obama Administration for the creation of a new consumer 
protection agency, a proposal that was introduced as H.R. 3126 
on the same day.
    The House Committee on Financial Services considered H.R. 
3126 on October 22, 2009, and subsequently ordered reported the 
bill, amended, by a recorded vote of 39 yeas to 29 nays.

                        COMMITTEE CONSIDERATION

    The Committee on Energy and Commerce met in open markup 
session on October 29, 2009, to consider H.R 3126. The 
Committee used for the underlying bill the language of H.R. 
3126, as ordered reported by the Committee on Financial 
Services. The Committee considered amendments to the bill and 
subsequently ordered H.R. 3126 reported to the House, amended, 
by a recorded vote of 33 yeas to 19 nays. The bill was reported 
by the Committee as the ``Consumer Financial Protection 
Commission Act of 2009''.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. There were no recorded votes on amendments offered to 
H.R. 3126 during Committee consideration. The Committee agreed 
to a motion by Mr. Waxman to order H.R. 3126 favorably reported 
to the House, amended, by a recorded vote of 33 yeas and 19 
nays. The following is the recorded vote taken on final passage 
of H.R. 3126, including the names of those Members voting for 
and against:


     STATEMENT OF COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the oversight findings and recommendations of 
the Committee are reflected in the descriptive portions of this 
report.

     NEW BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE ESTIMATE

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives, and section 
308(a) of the Congressional Budget Act of 1074 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee anticipates 
that a CBO cost estimate letter will address these issues when 
the bill proceeds to consideration on the House floor.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the performance goals and 
objectives of the Committee are reflected in the descriptive 
portions of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 3126. Article I, section 8, clauses 3 and 18 
of the Constitution of the United States grants the Congress 
the power to enact this law.

                  EARMARK AND TAX AND TARIFF BENEFITS

    H.R. 3126 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                      ADVISORY COMMITTEE STATEMENT

    The Committee finds that section 113 of H.R. 3126, as 
reported by the Committee on Financial Services, creates an 
advisory committee under the Federal Advisory Committee Act. 
The Committee on Energy and Commerce did not amend this section 
of the bill.

             APPLICABILITY OF LAW TO THE LEGISLATIVE BRANCH

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to terms and conditions of 
employment or access to public services and accommodations.
    H.R. 3126 creates a new executive branch agency in order to 
improve consumer protection in the financial arena and does not 
relate to employment or access to public services and 
accommodations in the legislative branch.

                       FEDERAL MANDATES STATEMENT

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement on 
whether the provisions of the report include unfunded mandates. 
The Committee anticipates that this issue will be addressed in 
a CBO cost estimate letter for the bill when it proceeds to 
consideration on the House floor.

                        COMMITTEE COST ESTIMATE

    Clause 3(d) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 3126. The Committee anticipates that a CBO cost estimate 
letter will address these issues when the bill proceeds to 
consideration on the House floor.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

    The Committee on Energy and Commerce considered H.R. 3126 
as ordered to be reported by the Committee on Financial 
Services, but only amended certain sections of the bill. This 
analysis will discuss only those sections that differ from the 
legislation as ordered to be reported by the Committee on 
Financial Services.

Section 1. Short title

    Section 1 provides that the short title of H.R. 3126 is, 
``The Consumer Financial Protection Commission Act of 2009.''

Section 2. Table of contents

    Section 2 provides the table of contents for the bill.

           TITLE I--CONSUMER FINANCIAL PROTECTION COMMISSION

Section 1. Definitions

    Section 1 of Title I defines the terms used in the 
legislation. It includes a definition of financial activity 
that serves as the basis for determining the jurisdiction of 
the Consumer Financial Products Commission (CFPC). The 
definition of ``financial activity'' specifically excludes the 
transmission, routing, or transient storage of information when 
that transmission serves purely as a conduit for information. 
In this situation, the entity transmitting the data is not the 
sender, is not the intended recipient, did not modify the data 
in any way, and does not treat the data being transmitted any 
differently from any other data sent over its pipes. That same 
entity, however, which serves as a mere conduit may also engage 
in a ``financial activity'' as defined by the bill.

Section 111. Establishment of the Consumer Financial Protection 
        Commission

    Section 111 establishes CFPC as an independent commission 
with principal offices in Washington, DC.

Section 112. Composition of the Commission

    Subsection 112(a) establishes a five member commission with 
membership appointed by the President and confirmed by the 
Senate. Subsection 112(b) establishes that no more than three 
members of the Commission may be members of the same political 
party. Subsection 112(c) calls for the President to appoint a 
Chairman from among the sitting commissioners. The Chairman is 
given executive authority to appoint and supervise personnel 
employed by the Commission and to determine the use and 
expenditure of funds, but must be governed by general policies 
of the Commission. Subsection 112(d) establishes five year 
terms for commissioners, and allows the President to remove 
commissioners only for inefficiency, neglect of duty, or 
malfeasance in office. Members of the Commission may serve for 
up to a year following the expiration of their term while 
awaiting the appointment and confirmation of a replacement. 
Initial appointments would be staggered. No commissioners would 
be permitted to hold outside employment. Subsection 112(e) 
establishes a quorum of three members for the conduct of 
business, unless there are only three members serving on the 
Commission. In that case, two members would constitute a 
quorum. Subsection 112(f) dictates that the Commission shall 
have a seal. And subsection 122(g) establishes compensation 
rates for commissioners and the chairman.

Section 115. Administration

    Section 115 provides the Chairman with the authority to 
appoint staff and officials of the Commission, and establishes 
several functional units of the Commission, including research, 
consumer financial education, and consumer complaints. This 
section makes clear that, in collecting and tracking consumer 
complaints, the Commission may create its own database or 
utilize an existing database. The section also calls on the 
Commission to share data as appropriate with federal banking 
agencies, FTC, other federal agencies, and state regulators.

Section 117. Consumer Advisory Board

    Section 117 calls for the Commission to coordinate with 
other federal agencies and state regulators, including FTC.

Section 118. Reports to the Congress

    Section 118 requires the Commission to submit reports to 
the appropriate committees of Congress. It further directs the 
Commission to appear before the appropriate committees of 
Congress upon request.

Section 118A. GAO small business studies

    Section 118A calls on the Government Accountability Office 
(GAO) to examine the effects of the Commission's regulations on 
small businesses.

Section 120. Amendments relating to other administrative provision

    Section 120 adds CFPC to the list of financial regulatory 
agencies that may communicate with Congress independently of 
the President. It further adds CFPC to the definition of 
``independent regulatory agency'' under the Paperwork Reduction 
Act.

Section 122. Authorities

    Section 122 provides certain authorities to CFPC. For cases 
in which there is overlap in enforcement authority with FTC, 
subsection 122(e) establishes a specific procedure for the 
agencies to consult and coordinate. Paragraph (2) calls on FTC 
to notify CFPC before it files an enforcement action under one 
of the laws for which FTC and CFPC share jurisdiction. If FTC 
files such an enforcement action, CFPC may intervene in the 
case. If, however, CFPC has already initiated a case against a 
particular entity for a particular action violating any of the 
laws for which the two commission share jurisdiction, FTC may 
not file its own case against the same entity for that same 
action violating the same law. Subparagraph (D) makes these 
restrictions and obligations reciprocal. This paragraph ensures 
that, when CFPC and FTC are investigating the same violations 
and considering enforcement actions against the same entities, 
they coordinate and do not file separate, but nearly identical, 
actions.

Section 161. Transfer of Certain Functions

    Section 161 transfers the consumer protection functions of 
several agencies to CFPC. With regard to FTC, paragraph (a)(5) 
transfers the consumer financial protection functions that are 
contained within the enumerated statutes. The paragraph makes 
clear that this transfer would not lead to an automatic 
transfer of staff from FTC to CFPC. The Committee finds that, 
under this Act, FTC would retain much of its responsibility for 
consumer financial protection and would continue to need staff 
to conduct these functions.

       TITLE II--IMPROVEMENTS TO THE FEDERAL TRADE COMMISSION ACT

Section 201. Amendments to the Federal Trade Commission Act

    Section 201(a) of Title II of the bill enables the FTC to 
seek civil penalties in enforcement actions against violations 
of the FTC Act, not just violations of rules and orders, as the 
FTC Act currently allows.
    Section 201(b) enables the FTC to enforce against those who 
knowingly or recklessly provide substantial assistance to 
entities that violate the FTC Act or any other laws enforceable 
by FTC relating to unfair or deceptive acts of practices. The 
paragraph further clarifies that this section is not intended 
to alter current federal law that addresses the roles and 
responsibilities of Internet companies for content and conduct 
of third parties. Most notably, the Communications Decency Act 
provides immunity to certain entities for content prepared by 
third parties. This encourages the development of new online 
services and creates incentives for Internet companies to act 
responsibly and remove unlawful conduct when it is discovered--
without the fear of liability. This is not a wholesale 
exemption for Internet companies. Rather, it is recognition 
that the long-standing legal framework set forth in the 
Communications Decency Act is not changed by this bill.
    Section 201(c) enables the FTC to promulgate rules relating 
to unfair or deceptive acts or practices using the procedures 
required by the Administrative Procedures Act (5 U.S.C. section 
553). These procedures would replace the burdensome Magnusson-
Moss procedures.
    Section 201(d) strengthens the authority of the FTC to 
litigate its own cases when it seeks civil penalties against 
fraudulent actors. Under current law, if the FTC wants to seek 
civil penalties in an enforcement action, it must first refer 
the case to the U.S. Department of Justice (DOJ). DOJ has 45 
days to decide whether it will bring the case on the FTC's 
behalf. The FTC can only litigate the case if, at the end of 45 
days, DOJ decides not to take action. This subsection would 
give the FTC the authority to bring these civil penalty actions 
without delay.

                       EXPLANATION OF AMENDMENTS

    The following amendments were adopted by the Committee on 
Energy and Commerce:
    Chairman Waxman and Ranking Member Barton manager's 
amendment, which passed by a voice vote, makes several changes 
to the bill. The manager's amendment restructures the 
governance of the new agency, changing it from an agency headed 
by a single director to a commission headed by five 
commissioners. The amendment additionally changes the name of 
the new agency to the Consumer Financial Protection Commission. 
The manager's amendment also revises the definition of 
``financial activity'' in section 101 to clarify that the term 
does not apply to transmission of data to the extent that the 
entity transmitting the data serves only as a conduit for the 
information and does not select or modify the information, and 
does not differentiate it from other types of data that the 
entity transmits. In addition, the amendment revises section 
123(e) to provide FTC and CFPC with reciprocal notice and 
coordination obligations when enforcing laws that both 
commissions have the authority to enforce. Both commissions 
would be required to provide notice to the other prior to 
filing such a case whenever feasible, both would be authorized 
to join the other's case, and neither could bring a case 
against an entity for an action violating a law if the other 
commission has brought the same case against that entity for 
that same action violating the same law. In addition, the 
amendment makes several changes to ensure CFPC consults and 
coordinates with FTC in the development of a system for 
collecting consumer complaints, and ensures that CFPC may use 
FTC's existing database rather than create a new database of 
complaints. The amendment calls on the Commissioners of CFPC to 
appear before the appropriate committees of Congress s 
requested to discuss the efforts, activities, objectives, and 
plans of CFPC, whereas the bill reported out of Financial 
Services had the agency head only testify before the Financial 
Services Committee. The amendment further adds language 
requiring CFPC to coordinate with FTC along with other federal 
and state regulators, and to consult with FTC on developing 
report requirements for non-depository institutions. 
Furthermore, the manager's amendment added language regarding 
FTC's ability to enforce against those that give substantial 
assistance to others who commit unfair or deceptive acts to 
ensure that that new authority not supersede the Communications 
Decency Act. Finally, it makes clear that the transfer of 
authorities language does not trigger the automatic transfer of 
staff in 5 U.S.C. section 3503, and makes technical changes to 
this section and other sections to comport with the changes to 
the ``transfer of functions'' language that were made in the 
Committee on Financial Services.
    Chairman Waxman's amendment, accepted by a division vote of 
19-17, adds a new subsection 210(d) that provides FTC with the 
authority to seek civil penalties in enforcement actions 
without first referring those actions to the Department of 
Justice.
    Rep. Scalise offered an amendment, which passed by a voice 
vote, adding a new section 118A that calls on the Government 
Accountability Office to examine the effects of CFPC regulation 
on small businesses.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In the opinion of the Committee, in order to expedite the 
business of the House of Representatives, it is necessary to 
dispense with the requirement of clause 3(e) of rule XIII of 
the Rules of the House of Representatives (relating to showing 
changes in existing law made by the bill as reported).

                            DISSENTING VIEWS

    We, the undersigned Members of the Committee on Energy and 
Commerce, submit the following comments on H.R. 3126 to express 
our concerns with the amending language that creates the 
Consumer Financial Protection Agency and modifies the 
responsibilities of the Federal Trade Commission.
    Since the global financial crisis that began in the spring 
of 2007 and peaked in the fall of 2008 with the collapse of 
Lehman Brothers and AIG, the government takeover of Fannie Mae 
and Freddie Mac, and numerous bank failures, many proposals 
have been put forward to avert another future market crisis.
    In addition to these new proposals to address systemic 
risk, others have sought to address unrelated practices or 
industries in the name of reform. Any ills that contributed to 
the financial crisis have become the Obama Administration's 
raison d'etre for creating a new super consumer protection 
regulatory agency, the Consumer Financial Protection Agency 
(CFPA).
    Rather than address the failure of banking regulations 
related to consumer protection and the failure of the States to 
police activities under their purview (e.g., mortgage brokers 
and real estate agents), the proposed legislation to create the 
CFPA seeks to consolidate the consumer protection jurisdiction 
of all banking regulators into one new agency and regulate many 
new activities and persons that largely are unrelated to the 
financial markets or the crisis of 2008.
    A new regulatory body with authority this sweeping in 
nature cannot be evaluated properly unless its proponents first 
define clearly what problems they are seeking to address. The 
major problems in the financial markets and home foreclosures 
trumpeted so far would focus the legislation on the following 
financial products: mortgages and credit cards. Yet the 
Congress passed sweeping changes to address credit card abuses 
at the beginning of this Congress and new regulations for 
mortgages and the securities markets are forthcoming.
    While changes in regulation of mortgages and securities 
markets are warranted, it is a far different matter to propose 
a regulator with authority over nearly every sector of the 
economy to improve consumer protection. Simply put, the 
evidence is lacking to support the need for a new super 
regulator for all consumer financial activities.
    Examining the reasons behind the housing bubble and 
subsequent collapse, Congress must admit its own mistakes, 
including policies that have contributed to the housing bubble 
and subsequent implosion. Fannie Mae and Freddie Mac had long 
been criticized for their failure to adhere to the same 
standards and practices the private sector had to follow. With 
the implicit guarantee of the Federal government, which became 
an explicit guarantee once they were placed in receivership, 
Fannie Mae and Freddie Mac were able to fund themselves at 
lower costs than their competitors and gain substantial market 
share. In essence, they were chosen by the government to be a 
winner and responded as one might expect, by wielding their 
political influence to avoid the further regulation that was 
called for by many Republicans. Yet they did not have to follow 
the same securities regulatory requirements their competitors 
did. Not surprisingly, they needed more scrutiny when they were 
found to have misstated and manipulated their earnings. It is 
now ironic that many Democrats did not call for more regulatory 
scrutiny over Fannie Mae and Freddie Mac as problems emerged--
problems that are now costing taxpayers tens of billions of 
dollars--but wanted instead to continue to expand the policy of 
Federal government intervention into the housing market through 
additional incentives and taxpayer-supported subsidies to 
homebuyers.
    Easy credit and lack of savings combined to create an 
environment where many mortgage products designed to be 
``affordable'' emerged that could quickly be sold off to Fannie 
Mae or Freddie Mac. And with Congress and previous 
Administrations encouraging Fannie and Freddie to be more 
flexible with their standards and purchase more mortgages of 
riskier quality, taxpayers were put on the hook for more and 
more liabilities of these failed institutions. Rather than 
addressing this agency problem, the Democrat Majority's policy 
response seems to be to keep Fannie and Freddie subsidized by 
the taxpayers, continuing to buy mortgages from originators 
regardless of their quality. Some have blamed the financial 
crisis on the presumed private-sector perspective of 
``privatizing the gains, and socializing the risk,'' but none 
fit this model more than Fannie Mae and Freddie Mac. 
Unfortunately, taxpayers will be paying for the losses for 
years to come and potentially paying for an impending bailout 
of the Federal Housing Administration. None of these problems 
will be solved by the proposals put forward.

             TITLE I, CONSUMER FINANCIAL PROTECTION AGENCY

    We support the goal of protecting consumers against fraud 
and deceptive practices but disagree wholeheartedly with the 
creation of a Consumer Financial Protection Agency. While we 
feel that the change from a single Director to a bipartisan 
Commission (the Consumer Financial Protection Commission 
(CFPC)) improves the legislation, we understand the Majority 
will have an amendment made in order for Floor consideration 
that will return the Director for an interim period of two 
years, after which the Director will become the Chairperson of 
the five member Commission. This is unacceptable and a 
disappointing change for anyone concerned with enacting a 
credible structure of governance. The creation of the 
Commission will benefit governance, hold the Agency more 
accountable, and ensure a more deliberative process in its 
decision-making, especially given the nearly limitless 
authority given to the Commission to determine what will be 
considered consumer financial activities and subject to the 
Commission's authority.
    However, we do not need another ``czar'' empowered to 
control the economy with little or no accountability.
    While the current jurisdiction of the Federal Trade 
Commission (FTC) is preserved in the drafted legislation, we 
remain concerned that the structure of dual jurisdiction and 
dual enforcement will be problematic and burdensome for 
regulated entities. It is questionable whether a brand new 
agency with new staff who have no experience regulating the 
entities currently under FTC jurisdiction can do a better job 
than the FTC. It is our belief the CFPC will not and therefore 
should not be given dual jurisdiction.
    Of the many other objectionable provisions, the scope of 
CFPC authority is particularly troubling. A super regulator 
that will be in charge of nearly every sector of the economy, 
including entities that have otherwise never engaged in the 
sale of a financial product or service but will now find 
themselves under multiple jurisdictions, is a recipe for 
disaster, is unwarranted, and is an overreach of an overactive 
government.
    Under the legislation, the Commission will have 
jurisdiction over any person it deems, by rule, to be a covered 
person. The definitions for ``financial activity'' and 
``financial product or service'' are so broad and permissive 
that a financial activity can be defined in any manner the 
Commission deems appropriate. Of particular concern is the 
open-ended nature of section 101(19)(P), which permits the 
definition to be expanded to any activity the Commission finds 
will have or is likely to have a material adverse impact on the 
creditworthiness or financial well being of consumers. Under 
this open-ended authority and a simple common-sense reading of 
the language, there is no doubt that activities such as 
marriage, divorce, having a child, or even the purchase of a 
big screen TV could be determined to be a financial activity. 
Additionally, the definition permits the Commission to 
determine any other activity that is incidental or 
complementary to any other financial activity to be a financial 
activity. Either of these authorities will permit unlimited 
authority.
    Notwithstanding the specific exemptions for particular 
industries or professions enumerated in the legislation, it 
appears the exemptions only apply if the Commission chooses to 
observe Congressional intent regarding the exemptions provided. 
If on the other hand the Commission decides to determine those 
activities or persons covered, there appears no impediment to 
stop the Commission from making such a determination. This 
authority undermines every exclusion provided in the bill for 
non-financial activities if the Director or Commission can 
simply re-define the excluded activities back within the CFPC's 
jurisdiction under this catch-all provision.
    We are equally concerned about the approach to regulation. 
Currently, the broad range of statutes and regulations the CFPC 
can enforce only creates a floor for financial consumer 
regulations. If the goal is to create an effective new Federal 
regulator, it only makes sense to ensure their authority is not 
undermined. As a candidate, President Obama said that ``we need 
to streamline a framework of overlapping and competing 
regulatory agencies.'' As the bill is currently written, it 
does just the opposite, allowing and encouraging the growth of 
up to 50 different State regulatory fiefdoms, in addition to 
dual Federal regulation. This directly contradicts the 
President's statements. If the States will be authorized to 
enforce the Federal laws (as they are in this proposal), we do 
not see the value in permitting them to write State laws that 
go beyond the Federal law unless the goal is to increase 
regulatory costs and create confusion and inconsistencies. That 
will only ensure that compliance costs increase as more lawyers 
are hired, resulting in lower job growth in the rest of the 
economy. Already, regulatory burdens impose mounting costs on 
the Nation's businesses, both small and large. According to the 
Small Business Administration, businesses with less than 20 
employees spend more than $7,600 a year per employee in order 
to comply with Federal regulations. Businesses with over 500 
employees spend almost $5,300 per employee in regulatory 
compliance. This bill will only raise those costs.
    Similarly, the approach to enforcement is of great concern. 
H.R. 3126 gives unprecedented new financial regulatory 
authority to a single agency. The CFPC's broad regulatory 
jurisdiction would affect nearly every area of the economy, and 
the new agency would have independent litigating authority to 
bring actions for violations. Centralizing so much authority 
and control in one Federal agency is cause enough for concern, 
but granting 51 Attorneys General enforcement powers over this 
exceptionally broad jurisdiction is cause for serious alarm. 
Covered entities will be subject to the enforcement discretion 
of the FTC, the CFPC, and potentially 51 Attorneys General who 
can all seek civil penalties. We believe this will not result 
in greater consumer protection, but rather will increase 
litigation-averse behavior by businesses that may ultimately 
harm and confuse consumers.
    Finally, we object to the inclusion of a new undefined and 
subjective standard for violations. The term ``abusive'' 
expands the known standards of ``unfair or deceptive'' and the 
Commission is left to its own devices in determining its 
meaning. Therefore, any covered person will face great 
uncertainty as to how the Commission will interpret and enforce 
this standard as he or she tries to operate a business. By 
including such an undefined and elastic standard, the potential 
for unlimited regulation and enforcement goes up substantially.
    Closely related to this standard, the CFPC is given 
``unfairness'' rulemaking authority which is inconsistent with 
and clearly goes far beyond the similar authority provided to 
the FTC under current law. The FTC's authority was tied to 
section 5(n) of the Federal Trade Commission Act (FTC Act), and 
the FTC has no authority to declare an act or practice unlawful 
on the grounds that it is unfair unless: ``the act or practice 
causes or is likely to cause substantial injury to consumers 
which is not reasonably avoidable by consumers themselves and 
not outweighed by countervailing benefits to consumers or to 
competition. In determining whether an act or practice is 
unfair, the FTC may consider established public policies as 
evidence to be considered with all other evidence. Such public 
policy considerations may not serve as a primary basis for such 
determination.'' The ability to utilize this highly elastic 
concept without the restrictions of section 5(n) of the FTC Act 
will compound the problems associated with the inherent 
vagueness and elusiveness of the definition of ``unfairness.''

                       TITLE II, FTC IMPROVEMENTS

    Under section 201, the FTC is given authority to conduct 
across-the-board rulemakings under the expedited Administrative 
Procedures Act (APA), rather than under the present Magnuson-
Moss rulemaking procedures. Congress instituted the Magnuson-
Moss rulemaking procedures in the 1970s due to its growing 
concern that the FTC, which at the time was carrying out 
multiple wide-ranging concurrent rulemakings, should be 
required to carry out more structured rulemaking procedures. In 
light of the Commission's extremely broad powers over vast 
segments of the nation's economy, Congress, at that time, 
believed that expedited rulemaking authority (180 days) could 
lead to a serious ``rush to judgment'', allowing the FTC to 
make major, industry-wide regulatory changes without adequate 
time for industry input and thoughtful consideration.
    History repeats itself and provides an instructive lesson 
as to why the Magnusson-Moss requirements were enacted by a 
Democrat-majority Congress three decades ago. At that time 
Congress recognized the FTC had jurisdiction over all 
commercial activities that were not specifically excluded. This 
broad jurisdiction was given to the FTC knowing it could not be 
expected to be an expert for every industry. Keeping current 
with industry developments for every sector of the economy is 
an unrealistic expectation.
    Current rulemaking proposals indicate the FTC may be headed 
off track again. FTC has noticed a proposed rule regarding debt 
relief services under APA rulemaking procedures using its 
alleged authority under the Telemarketing Abuse and Prevention 
Act. While we withhold our position on the merits of the 
proposed rule, the process used to issue it raises concerns. 
The industry is segmented between for-profit and non-profit 
businesses. Yet the proposed rule can only reach those entities 
under the FTC's jurisdiction--meaning it will not apply to non-
profits and will affect only 20 percent of the industry that 
operates for profit. The proposed rule takes the extreme 
position of banning the advance fee compensation model of the 
for-profit entities. Given that over 85 percent of the debt 
relief industry is occupied by non-profits--which the FTC has 
no information on and no jurisdiction over--it is not clear on 
what basis it is proposing the rule. Additionally, it is not 
clear whether the FTC in this rulemaking has weighed the 
competitive effects or whether changes will help consumers if 
it drives out the for-profit providers and creates a monopoly 
for the non-profits. At the very least, this is not a complete 
record. Congress should ensure that the rules the FTC 
promulgates are based upon a complete record of all the facts 
and information.
    In fact, there has been no showing that the Magnuson-Moss 
requirements have hindered the FTC from carrying out a 
rulemaking it wished to pursue.
    It is true that Congress has given the Commission APA 
rulemaking authority under specific statutes, such as the 
Children's Online Privacy Protection Act, the Telemarketing and 
Consumer Fraud and Abuse Prevention Act, and others. However, 
those delegations came only after extensive hearings and an 
opportunity for industry input. That has not happened in this 
case. Also, those Acts include well-defined and specific 
standards for the Commission to enforce. In fact, the expansion 
of APA rulemaking authority in H.R. 3126 applies to the entire 
scope of the broad, general powers of the FTC to regulate 
false, deceptive or unfair acts or practices over virtually 
every segment of commerce.
    Mr. Timothy Muris, who served as Chairman of the FTC from 
2001 to 2004, testified at a July 14, 2009, hearing of the U.S. 
Senate Commerce Committee Subcommittee on Consumer Protection, 
Product Safety, and Insurance to strongly urge the Congress to 
retain the Magnuson-Moss rulemaking procedures at the FTC. 
Muris stated:
    ``The administration's proposal would do more than just 
change the procedures used in rulemaking. It also would 
eliminate the requirement that unfair or deceptive practices 
must be prevalent, and eliminate the requirement for the 
Commission's Statement of Basis and Purpose to address the 
economic effect of the rule. It also changes the standard for 
judicial review, eliminating the court's ability to strike down 
rules that are not supported by substantial evidence in the 
rulemaking record taken as a whole. The current restrictions on 
Commissioners' meetings with outside parties and the 
prohibition on ex parte communications with Commissioners also 
are eliminated. These sensible and important protections should 
be retained.''
    The FTC is not an agency that has specific subject matter 
expertise over a particular area of the economy, such as the 
SEC, the CFTA, or the EPA. Therefore, it is more important for 
the agency to follow the detailed and focused procedures of 
Magnuson-Moss rulemaking procedures when carrying out an 
industry-wide rulemaking.
    There are a number of procedural safeguards in Magnuson-
Moss that are important and should be preserved. These 
safeguards include the following requirements: (a) the 
Commission must identify a pattern of activity--a prevalence, 
as opposed to one instance--before engaging in a rulemaking; 
(b) a rule may be overturned by the courts if it is not 
supported by substantial evidence taken as a whole; and, (c) 
the Commission provide a statement as to the economic effect of 
the rulemaking. All of these protections are presently being 
abrogated by H.R. 3126. They are all sensible requirements and 
there is no reason to believe that these rules will hinder the 
FTC in forceful rulemaking.
    We do not find the argument that all other Executive Branch 
agencies may promulgate rules pursuant to APA particularly 
relevant. No other agency has the breadth of jurisdiction of 
the FTC, and therefore, comparing these many different 
agencies' authorities and procedures is inappropriate and 
misleading.
    We believe the example of the speed with which the Consumer 
Product Safety Improvement Act of 2008 (CPSIA) and the 
resulting unforeseen consequences on the law is illustrative of 
the potential problem with this grant of fast-track rulemaking. 
While that legislation was founded upon the best of 
intentions--and while it was limited to what we then considered 
a relatively limited portion of industry (the world of 
children's products)--we have observed the unforeseen impact on 
thousands of businesses. Unfortunately, many of these 
unintended consequences could have been avoided had the 
affected industries had an opportunity to submit comments. No 
one was excluded from that legislative process; however, 
because CPSIA moved from legislation to law in under one year, 
there was not sufficient time for downstream manufacturers and 
retailers to become aware of CPSIA's proposals and thus weigh 
in. We do not believe it is a stretch of the imagination to 
extrapolate the example of CPSIA by a multiple factor. The 
FTC's rules on commerce reach from Wall Street to Main Street, 
with the former dedicating full-time staff to monitoring and 
commenting upon Congressional action while the latter has no 
such resources.
    Further, we note this Committee's history of granting the 
FTC APA rulemaking for particular issues. That ad hoc approach 
ensures the appropriate amount of Congressional oversight for 
an Executive Branch body with the breadth and reach as the FTC. 
This history also illustrates that the Commission's argument 
for more responsive rulemaking authority is not without at 
least some merit in certain contexts. As an alternative to fast 
track rulemaking power, however, we proposed an alternative 
that blended both rulemaking approaches. It would permit the 
quicker, more flexible rulemaking approach of the APA but 
mandate certain extra procedures to make such a process more 
deliberative. We remain strong supporters of this approach 
versus general APA rulemaking authority, particularly if 
general civil penalty authority is provided to the FTC. We also 
believe this model should be extended to the new CFPC given its 
similar expansive authority.
    Finally, as mentioned above, we do not believe the FTC 
requires both general civil penalty authority and general 
rulemaking authority. The Commission's primary justification 
for requesting APA rulemaking is so that it may be more 
responsive to fraudulent or unfair or deceptive activities in 
the marketplace. With a faster rulemaking process, there is no 
justification for empowering the FTC to impose civil penalties 
on someone who has no notice that his or her conduct is 
illegal. If the activity of concern is of such magnitude as to 
harm consumers on a wide scale, the FTC may simply issue a 
cease and desist order while undertaking a rulemaking under 
APA. In granting the FTC civil penalty authority, there is no 
need for fast track rulemaking. We vociferously oppose granting 
the FTC both of these powers.
    The Civil Penalties section 201(a) dramatically changes the 
regulatory powers of the FTC by providing a sweeping scope of 
authority the Commission has never had since its inception in 
1914. Under current law, the FTC may only seek civil penalties 
where the party in question is on notice that his or her 
conduct is unlawful, unfair, or deceptive. A party is 
considered on notice where there is an existing rule clearly 
defining conduct that is permitted, or, alternatively, where 
the Commission issued a formal cease and desist order in 
instances where no law or regulation exists to clearly define 
permissible and impermissible conduct.
    H.R. 3126 grants the FTC general civil penalty authority 
under its section 5 unfair or deceptive acts or practices 
standard. Under current law, the standard remedy for an initial 
violation of the FTC Act is a cease and desist order. The FTC 
can pursue monetary penalties only for violations of FTC rules 
or cease and desist orders.
    Under the authority provided in H.R. 3126, the FTC can now 
seek monetary penalties for unfair or deceptive acts or 
practices even if the party in question is not on notice that 
his or her conduct is unlawful because there is not a specific 
rule addressing the act in question. Unfortunately, the concept 
of unfair or deceptive acts or practices is similar to Justice 
Potter Stewart's famous ``I know it when I see it'' standard. 
This means individuals, small businesses, and other companies 
will be subject to what is essentially a strict liability 
standard for undefined conduct. In our view, where strict 
liability is warranted, that conduct should be as well-defined 
as in other areas of the law where strict liability is 
mandated. With the current civil penalty authority at $16,000 
per violation, with each day considered a new violation, honest 
companies and small businesses that have no idea that the FTC 
considers their conduct unfair will be subject to potentially 
crippling fines reaching into the thousands--and perhaps 
millions--of dollars.
    Finally, perhaps most significantly, and as aforementioned, 
it is our view that if Congress grants the FTC general 
rulemaking authority under the APA, general civil penalty 
authority is unnecessary. If the argument for APA rulemaking 
authority is for quicker, more responsive rulemaking ability, 
the Commission will have the ability to put parties on notice 
of unlawful conduct by promulgating rules in just months in 
most cases. Combining these two new authorities is a dangerous 
proposition that flies in the face of any notion of fairness 
and could result in exactly what the Commission seeks to 
redress--unfair practices, but unfair practices undertaken by 
the Commission. In granting the FTC general civil penalty 
authority--and thereby the ability to seek civil penalties in 
the absence of placing ``bad'' actors on notice of their unfair 
or deceptive conduct--we essentially dispense with the need for 
rulemaking authority altogether.
    The Aiding and Abetting section 201(b) creates a new aiding 
and abetting violation within section 5 of the FTC Act. The 
language lowers the standard for aiding and abetting beneath 
the existing standard for other violations of section 5: it 
will be unlawful to knowingly or recklessly provide substantial 
assistance. The law currently requires the FTC to establish 
independent culpability of third parties under section 5. This 
change would import criminal law concepts into a civil statute.
                                   Joe Barton,
                                           Ranking Member.
                                   George Radanovich.
                                   John Sullivan.
                                   Steve Scalise.
                                   Joseph R. Pitts.
                                   Marsha Blackburn.
                                   Michael C. Burgess.
                                   Sue Myrick.
                                   Phil Gingrey.
                                   Mary Bono Mack.
                                   John B. Shadegg.
                                   Lee Terry.
                                   Roy Blunt.
                                   John Shimkus.
                                   Steve Buyer.
                                   Cliff Stearns.
                                   Fred Upton.
                                   Ralph M. Hall.
                                   Ed Whitfield.
                                   Greg Walden.
                                   Tim Murphy.