H. Rept. 113-345 - 113th Congress (2013-2014)

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House Report 113-345 - RESPONSIBLE CONSUMER FINANCIAL PROTECTION REGULATIONS ACT OF 2013

[House Report 113-345]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-345

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



 
   RESPONSIBLE CONSUMER FINANCIAL PROTECTION REGULATIONS ACT OF 2013

                                _______
                                

February 6, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2446]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 2446) to replace the Director of the Bureau of 
Consumer Financial Protection with a five person Commission, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    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 ``Responsible Consumer Financial 
Protection Regulations Act of 2013''.

SEC. 2. ESTABLISHMENT OF THE COMMISSION.

  Section 1011 of the Consumer Financial Protection Act of 2010 is 
amended--
          (1) by striking subsections (b), (c), and (d);
          (2) by redesignating subsection (e) as subsection (j); and
          (3) by inserting after subsection (a) the following new 
        subsections:
  ``(b) Establishment of the Commission.--
          ``(1) In general.--There is hereby established a commission 
        (hereinafter referred to in this section as the `Commission') 
        that shall serve as the head of the Bureau.
          ``(2) Authority to prescribe regulations.--The Commission may 
        prescribe such regulations and issue such orders in accordance 
        with this title as the Commission may determine to be necessary 
        for carrying out this title and all other laws within the 
        Commission's jurisdiction and shall exercise any authorities 
        granted under this title and all other laws within the 
        Commission's jurisdiction.
  ``(c) Composition of the Commission.--
          ``(1) In general.--The Commission shall be composed of the 
        Vice Chairman for Supervision of the Federal Reserve System and 
        4 additional members who shall be appointed by the President, 
        by and with the advice and consent of the Senate, from among 
        individuals who--
                  ``(A) are citizens of the United States; and
                  ``(B) have strong competencies and experiences 
                related to consumer financial protection.
          ``(2) Staggering.--The members of the Commission appointed 
        under paragraph (1) shall serve staggered terms, which 
        initially shall be established by the President for terms of 1, 
        2, 4, and 5 years, respectively.
          ``(3) Terms.--
                  ``(A) In general.--Each member of the Commission 
                appointed under paragraph (1), including the Chair, 
                shall serve for a term of 5 years.
                  ``(B) Removal.--The President may remove any member 
                of the Commission appointed under paragraph (1).
                  ``(C) Vacancies.--Any member of the Commission 
                appointed under paragraph (1) appointed to fill a 
                vacancy occurring before the expiration of the term to 
                which that member's predecessor was appointed 
                (including the Chair) shall be appointed only for the 
                remainder of the term.
                  ``(D) Continuation of service.--Each member of the 
                Commission appointed under paragraph (1) 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.
                  ``(E) Other employment prohibited.--No member of the 
                Commission appointed under paragraph (1) shall engage 
                in any other business, vocation, or employment.
  ``(d) Affiliation.--With respect to members appointed pursuant to 
subsection (c)(1), not more than 2 shall be members of any one 
political party.
  ``(e) Chair of the Commission.--
          ``(1) Appointment.--The Chair of the Commission shall be 
        appointed by the President from among the members of the 
        Commission appointed under subsection (c)(1).
          ``(2) Authority.--The Chair shall be the principal executive 
        officer of the Bureau, and shall exercise all of the executive 
        and administrative functions of the Bureau, including with 
        respect to--
                  ``(A) the appointment and supervision of personnel 
                employed under the Bureau (other than personnel 
                employed regularly and full time in the immediate 
                offices of members of the Commission other than the 
                Chair);
                  ``(B) the distribution of business among personnel 
                appointed and supervised by the Chair and among 
                administrative units of the Bureau; and
                  ``(C) the use and expenditure of funds.
          ``(3) Limitation.--In carrying out any of the Chair's 
        functions under the provisions of this subsection the Chair 
        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 Chair without the prior approval of the Commission.
  ``(f) 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.
  ``(g) Seal.--The Commission shall have an official seal.
  ``(h) Compensation.--
          ``(1) Chair.--The Chair 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 3 other members 
        of the Commission appointed under subsection (c)(1) shall each 
        receive compensation at the rate prescribed for level II of the 
        Executive Schedule under section 5314 of title 5, United States 
        Code.
  ``(i) Initial Quorum Established.--During any time period prior to 
the confirmation of at least two members of the Commission, one member 
of the Commission shall constitute a quorum for the transaction of 
business. Following the confirmation of at least 2 additional 
commissioners, the quorum requirements of subsection (f) shall 
apply.''.

SEC. 3. CONFORMING AMENDMENTS.

  (a) Consumer Financial Protection Act of 2010.--
          (1) In general.--Except as provided under paragraph (2), the 
        Consumer Financial Protection Act of 2010 is amended--
                  (A) by striking ``Director of the'' each place such 
                term appears, other than where such term is used to 
                refer to a Director other than the Director of the 
                Bureau of Consumer Financial Protection;
                  (B) by striking ``Director'' each place such term 
                appears and inserting ``Bureau'', other than where such 
                term is used to refer to a Director other than the 
                Director of the Bureau of Consumer Financial 
                Protection; and
                  (C) in section 1002, by striking paragraph (10).
          (2) Exceptions.--The Consumer Financial Protection Act of 
        2010 is amended--
                  (A) in section 1012(c)(4), by striking ``Director'' 
                each place such term appears and inserting ``Commission 
                of the Bureau'';
                  (B) in section 1013(c)(3)--
                          (i) by striking ``Assistant Director of the 
                        Bureau for'' and inserting ``Head of the Office 
                        of''; and
                          (ii) in subparagraph (B), by striking 
                        ``Assistant Director'' and inserting ``Head of 
                        the Office'';
                  (C) in section 1013(g)(2)--
                          (i) by striking ``Assistant director'' and 
                        inserting ``Head of the office''; and
                          (ii) by striking ``an assistant director'' 
                        and inserting ``a Head of the Office of 
                        Financial Protection for Older Americans'';
                  (D) in section 1016(a), by striking ``Director of the 
                Bureau'' and inserting ``Chair of the Commission''; and
                  (E) in section 1066(a), by striking ``Director of the 
                Bureau is'' and inserting ``first member of the 
                Commission is''.
  (b) Dodd-Frank Wall Street Reform and Consumer Protection Act.--The 
Dodd-Frank Wall Street Reform and Consumer Protection Act is amended--
          (1) in section 111(b)(1)(D), by striking ``Director'' and 
        inserting ``Chair of the Commission''; and
          (2) in section 1447, by striking ``Director of the Bureau'' 
        each place such term appears and inserting ``Bureau''.
  (c) Electronic Fund Transfer Act.--Section 920(a)(4)(C) of the 
Electronic Fund Transfer Act, as added by section 1075(a)(2) of the 
Consumer Financial Protection Act of 2010, is amended by striking 
``Director of the Bureau of Consumer Financial Protection'' and 
inserting ``Bureau of Consumer Financial Protection''.
  (d) Expedited Funds Availability Act.--The Expedited Funds 
Availability Act, as amended by section 1086 of the Consumer Financial 
Protection Act of 2010, is amended by striking ``Director of the 
Bureau'' each place such term appears and inserting ``Bureau''.
  (e) Federal Deposit Insurance Act.--Section 2 of the Federal Deposit 
Insurance Act, as amended by section 336(a) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, is amended by striking 
``Director of the Consumer Financial Protection Bureau'' each place 
such term appears and inserting ``Chair of the Commission of the Bureau 
of Consumer Financial Protection''.
  (f) Federal Financial Institutions Examination Council Act of 1978.--
Section 1004(a)(4) of the Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3303(a)(4)), as amended by section 1091 
of the Consumer Financial Protection Act of 2010, is amended by 
striking ``Director of the Consumer Financial Protection Bureau'' and 
inserting ``Chair of the Commission of the Bureau of Consumer Financial 
Protection''.
  (g) Financial Literacy and Education Improvement Act.--Section 513 of 
the Financial Literacy and Education Improvement Act, as amended by 
section 1013(d)(5) of the Consumer Financial Protection Act of 2010, is 
amended by striking ``Director'' each place such term appears and 
inserting ``Chair of the Commission''.
  (h) Home Mortgage Disclosure Act of 1975.--Section 307 of the Home 
Mortgage Disclosure Act of 1975, as amended by section 1094(6) of the 
Consumer Financial Protection Act of 2010, is amended by striking 
``Director of the Bureau of Consumer Financial Protection'' each place 
such term appears and inserting ``Bureau of Consumer Financial 
Protection''.
  (i) Interstate Land Sales Full Disclosure Act.--The Interstate Land 
Sales Full Disclosure Act, as amended by section 1098A of the Consumer 
Financial Protection Act of 2010, is amended--
          (1) by amending section 1402(1) to read as follows:
          ``(1) `Chair' means the Chair of the Commission of the Bureau 
        of Consumer Financial Protection;''; and
          (2) in section 1416(a), by striking ``Director of the Bureau 
        of Consumer Financial Protection'' and inserting ``Chair''.
  (j) Real Estate Settlement Procedures Act of 1974.--Section 5 of the 
Real Estate Settlement Procedures Act of 1974, as amended by section 
1450 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, 
is amended--
          (1) by striking ``The Director of the Bureau of Consumer 
        Financial Protection (hereafter in this section referred to as 
        the `Director')'' and inserting ``The Bureau of Consumer 
        Financial Protection''; and
          (2) by striking ``Director'' each place such term appears and 
        inserting ``Bureau''.
  (k) S.A.F.E. Mortgage Licensing Act of 2008.--The S.A.F.E. Mortgage 
Licensing Act of 2008, as amended by section 1100 of the Consumer 
Financial Protection Act of 2010, is amended--
          (1) by striking ``Director'' each place such term appears in 
        headings and text, other than where such term is used in the 
        context of the Director of the Office of Thrift Supervision, 
        and inserting ``Bureau''; and
          (2) in section 1503, by striking paragraph (10).
  (l) Title 44, United States Code.--Section 3513(c) of title 44, 
United States Code, as amended by section 1100D(b) of the Consumer 
Financial Protection Act of 2010, is amended by striking ``Director of 
the Bureau'' and inserting ``Bureau''.

                          Purpose and Summary

    H.R. 2446, the Responsible Consumer Financial Protection 
Regulations Act of 2013, amends the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (the ``Dodd-Frank Act'') to 
promote greater accountability and transparency at the Consumer 
Financial Protection Bureau (CFPB). It achieves this objective 
by replacing the single director of the CFPB with a commission, 
similar to the structure of other federal agencies charged with 
consumer or investor protection.

                  Background and Need for Legislation

    The CFPB is currently governed by a single director in whom 
all the CFPB's legal authority rests and on whose authority 
there are few, if any, meaningful checks and balances. Other 
financial regulatory agencies, in contrast, are typically 
governed by boards or commissions (among others, the Securities 
and Exchange Commission, the Federal Trade Commission, the 
Board of Governors of the Federal Reserve, and the Federal 
Deposit Insurance Corporation). Governance by a bipartisan 
board or commission is beneficial because it permits the 
discussion of various viewpoints and draws from the collective 
wisdom of the board rather than the edicts of a single 
director.
    Under this legislation, the single director who currently 
has sole authority for carrying out the CFPB's mission would be 
replaced by a Commission comprised of the Fed's Vice Chair for 
Supervision and four members appointed by the President, with 
the advice and consent of the Senate. Commission members must 
be U.S. citizens and have strong competencies and experiences 
related to consumer financial protection. The appointed members 
of the Commission shall serve five-year, staggered terms. Not 
more than two appointed Commission members shall be members of 
any one political party.
    The Chair of the Commission will be appointed by the 
President from among the four appointed Commission members. The 
Chair will exercise all the CFPB's executive and administrative 
functions. The Chair will, however, be governed by the general 
policies, findings, and determinations of the Commission in 
carrying out his or her duties.
    The Chair of the Commission shall be compensated at level I 
of the Executive Schedule ($199,700) and other appointed 
Commission members shall be compensated at level II of the 
Executive Schedule ($179,700).

                                Hearings

    The Committee on Financial Services' Subcommittee on 
Financial Institutions and Consumer Credit held a hearing on 
H.R. 2446 on October 29, 2013.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
November 20, 2013, and ordered H.R. 2446 to be reported 
favorably to the House with an amendment by a recorded vote of 
31 yeas to 21 nays (recorded vote no. FC-40), a quorum being 
present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto.
    1. A motion by Chairman Hensarling to report the bill (H.R. 
2446) with an amendment to the House with a favorable 
recommendation was agreed to by a record vote of 31 yeas to 21 
nays (recorded vote no. FC-40).

                                              RECORD VOTE NO. FC-40
----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Hensarling.................        X   ........  .........  Ms. Waters.......  ........        X   .........
Mr. Bachus.....................        X   ........  .........  Mrs. Maloney (NY)  ........        X   .........
Mr. King (NY)..................        X   ........  .........  Ms. Velazquez....  ........        X   .........
Mr. Royce......................        X   ........  .........  Mr. Watt.........  ........        X   .........
Mr. Lucas......................        X   ........  .........  Mr. Sherman......  ........  ........  .........
Mr. Gary G. Miller (CA)........        X   ........  .........  Mr. Meeks........  ........  ........  .........
Mrs. Capito....................        X   ........  .........  Mr. Capuano......  ........        X   .........
Mr. Garrett....................        X   ........  .........  Mr. Hinojosa.....  ........        X   .........
Mr. Neugebauer.................        X   ........  .........  Mr. Clay.........  ........  ........  .........
Mr. McHenry....................        X   ........  .........  Mrs. McCarthy      ........  ........  .........
                                                                 (NY).
Mr. Campbell...................  ........  ........  .........  Mr. Lynch........  ........        X   .........
Mrs. Bachmann..................        X   ........  .........  Mr. David Scott    ........        X   .........
                                                                 (GA).
Mr. McCarthy (CA)..............        X   ........  .........  Mr. Al Green (TX)  ........  ........  .........
Mr. Pearce.....................        X   ........  .........  Mr. Cleaver......  ........        X   .........
Mr. Posey......................  ........  ........  .........  Ms. Moore........  ........        X   .........
Mr. Fitzpatrick................        X   ........  .........  Mr. Ellison......  ........        X   .........
Mr. Westmoreland...............        X   ........  .........  Mr. Perlmutter...  ........  ........  .........
Mr. Luetkemeyer................        X   ........  .........  Mr. Himes........  ........        X   .........
Mr. Huizenga (MI)..............        X   ........  .........  Mr. Peters (MI)..  ........        X   .........
Mr. Duffy......................        X   ........  .........  Mr. Carney.......  ........        X   .........
Mr. Hurt.......................        X   ........  .........  Ms. Sewell (AL)..  ........        X   .........
Mr. Grimm......................        X   ........  .........  Mr. Foster.......  ........        X   .........
Mr. Stivers....................        X   ........  .........  Mr. Kildee.......  ........  ........  .........
Mr. Fincher....................        X   ........  .........  Mr. Murphy (FL)..  ........        X   .........
Mr. Stutzman...................        X   ........  .........  Mr. Delaney......  ........        X   .........
Mr. Mulvaney...................        X   ........  .........  Ms. Sinema.......  ........        X   .........
Mr. Hultgren...................        X   ........  .........  Mrs. Beatty......  ........        X   .........
Mr. Ross.......................        X   ........  .........  Mr. Heck (WA)....  ........        X   .........
Mr. Pittenger..................        X   ........  .........
Mrs. Wagner....................        X   ........  .........
Mr. Barr.......................        X   ........  .........
Mr. Cotton.....................        X   ........  .........
Mr. Rothfus....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held hearings and 
made findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 2446, 
among other things, replaces the single director of the CFPB 
with a commission structure of governance.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, February 6, 2014.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2446, the 
Responsible Consumer Financial Protection Regulations Act of 
2013.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 2446--Responsible Consumer Financial Protection Regulations Act of 
        2013

    Summary: H.R. 2446 would replace the Director of the 
Consumer Financial Protection Bureau (CFPB) with a commission 
made up of a chairman and four additional members appointed by 
the President and confirmed by the Senate. The commission would 
be responsible for developing regulations to carry out the laws 
that fall within the jurisdiction of the CFPB.
    Based on information from the CFPB, CBO estimates that 
enacting H.R. 2446 would increase direct spending by $74 
million over the 2014-2024 period. Because the bill would 
affect direct spending, pay-as-you-go procedures apply. CBO 
estimates that enacting the bill would not affect revenues and 
that implementing H.R. 2446 would not affect spending subject 
to appropriation.
    H.R. 2446 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2446 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2014   2015   2016   2017   2018   2019   2020   2021   2022   2023   2024  2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

Estimated Budget Authority...........................      2      7      7      7      7      7      7      8      8      8      8        37         75
Estimated Outlays....................................      *      7      7      7      7      7      7      8      8      8      8        35        74
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding; * = less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the middle of fiscal year 2014, that 
the new commissioners will be confirmed by the end of the 
fiscal year, and that spending will follow historical patterns 
for the CFPB. The CFPB is permanently authorized to spend 
amounts transferred from the Federal Reserve; because that 
activity is not subject to appropriation, CFPB expenditures are 
recorded in the budget as direct spending.
    H.R. 2446 would replace the director and deputy director of 
the CFPB with a five-member commission. Based on information 
from the CFPB and agencies with similar organizational 
structures, CBO estimates that the agency would eventually hire 
an additional 40 employees to provide legal, research, and 
administrative support to the five commissioners and dismiss 
the agency director and deputy director. CBO estimates that 
additional costs for salaries, benefits, and overhead for the 
new positions would total about $7 million a year. In the next 
few years, the CFBP will spend about $450 million a year under 
current law to carry out all of its activities, CBO estimates.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

            CBO ESTIMATES OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2446, AS ORDERED BY THE HOUSE COMMITEE ON FINANCIAL SERVICES ON NOVEMBER 21, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2014   2015   2016   2017   2018   2019   2020   2021   2022   2023   2024  2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT

Statutory Pay-As-You-Go Impact.......................      0      7      7      7      7      7      7      8      8      8      8        35         74
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 2446 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Susan Willie; Impact 
on state, local, and tribal governments: Melissa Merrell; 
Impact on the private sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo; Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 2446 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013), 
the Committee states that no provision of H.R. 2446 establishes 
or reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013), 
the Committee states that H.R. 2446 does not direct any 
rulemaking.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 2446 as the ``Responsible Consumer 
Financial Protection Regulations Act of 2013.''

Section 2. Establishment of the commission

    This section establishes a commission to serve as the head 
of the CFPB, endows the commission with authority to carry out 
its statutory mission, fixes the number and qualifications of 
members to serve on the commission, prescribes the appointment 
and authorities of the chair of the commission, and sets out 
other attendant characteristics and authorities of the 
commission.

Section 3. Conforming amendments

    This section makes technical and conforming amendments to 
Federal law consistent with the substantive amendments made by 
section 2.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

       DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Dodd-Frank 
Wall Street Reform and Consumer Protection Act''.

           *       *       *       *       *       *       *


TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *


           Subtitle A--Financial Stability Oversight Council

SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.

  (a) * * *
  (b) Membership.--The Council shall consist of the following 
members:
          (1) Voting members.--The voting members, who shall 
        each have 1 vote on the Council shall be--
                  (A) * * * the Secretary of the Treasury, who 
                shall serve as Chairperson of the Council;

           *       *       *       *       *       *       *

                  (D) the [Director] Chair of the Commission of 
                the Bureau;

           *       *       *       *       *       *       *


            TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

SEC. 1001. SHORT TITLE.

  This title may be cited as the ``Consumer Financial 
Protection Act of 2010''.

SEC. 1002. DEFINITIONS.

  Except as otherwise provided in this title, for purposes of 
this title, the following definitions shall apply:
          (1) * * *

           *       *       *       *       *       *       *

          [(10) Director.--The term ``Director '' means the 
        Director of the Bureau.]

           *       *       *       *       *       *       *


          Subtitle A--Bureau of Consumer Financial Protection

SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINANCIAL 
                    PROTECTION.

  (a) * * *
  [(b) Director and Deputy Director.--
          [(1) In general.--There is established the position 
        of the Director who shall serve as the head of the 
        Bureau.
          [(2) Appointment.--Subject to paragraph (3), the 
        Director shall be appointed by the President, by and 
        with the advice and consent of the Senate.
          [(3) Qualification.--The President shall nominate the 
        Director from among individuals who are citizens of the 
        United States.
          [(4) Compensation.--The Director shall be compensated 
        at the rate prescribed for level II of the Executive 
        Schedule under section 5313 of title 5, United States 
        Code.
          [(5) Deputy director.--There is established the 
        position of Deputy Director, who shall--
                  [(A) be appointed by the Director; and
                  [(B) serve as acting Director in the absence 
                or unavailability of the Director.
  [(c) Term.--
          [(1) In general.--The Director shall serve for a term 
        of 5 years.
          [(2) Expiration of term.--An individual may serve as 
        Director after the expiration of the term for which 
        appointed, until a successor has been appointed and 
        qualified.
          [(3) Removal for cause.--The President may remove the 
        Director for inefficiency, neglect of duty, or 
        malfeasance in office.
  [(d) Service Restriction.--No Director or Deputy Director may 
hold any office, position, or employment in any Federal reserve 
bank, Federal home loan bank, covered person, or service 
provider during the period of service of such person as 
Director or Deputy Director.]
  (b) Establishment of the Commission.--
          (1) In general.--There is hereby established a 
        commission (hereinafter referred to in this section as 
        the ``Commission'') that shall serve as the head of the 
        Bureau.
          (2) Authority to prescribe regulations.--The 
        Commission may prescribe such regulations and issue 
        such orders in accordance with this title as the 
        Commission may determine to be necessary for carrying 
        out this title and all other laws within the 
        Commission's jurisdiction and shall exercise any 
        authorities granted under this title and all other laws 
        within the Commission's jurisdiction.
  (c) Composition of the Commission.--
          (1) In general.--The Commission shall be composed of 
        the Vice Chairman for Supervision of the Federal 
        Reserve System and 4 additional members who shall be 
        appointed by the President, by and with the advice and 
        consent of the Senate, from among individuals who--
                  (A) are citizens of the United States; and
                  (B) have strong competencies and experiences 
                related to consumer financial protection.
          (2) Staggering.--The members of the Commission 
        appointed under paragraph (1) shall serve staggered 
        terms, which initially shall be established by the 
        President for terms of 1, 2, 4, and 5 years, 
        respectively.
          (3) Terms.--
                  (A) In general.--Each member of the 
                Commission appointed under paragraph (1), 
                including the Chair, shall serve for a term of 
                5 years.
                  (B) Removal.--The President may remove any 
                member of the Commission appointed under 
                paragraph (1).
                  (C) Vacancies.--Any member of the Commission 
                appointed under paragraph (1) appointed to fill 
                a vacancy occurring before the expiration of 
                the term to which that member's predecessor was 
                appointed (including the Chair) shall be 
                appointed only for the remainder of the term.
                  (D) Continuation of service.--Each member of 
                the Commission appointed under paragraph (1) 
                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.
                  (E) Other employment prohibited.--No member 
                of the Commission appointed under paragraph (1) 
                shall engage in any other business, vocation, 
                or employment.
  (d) Affiliation.--With respect to members appointed pursuant 
to subsection (c)(1), not more than 2 shall be members of any 
one political party.
  (e) Chair of the Commission.--
          (1) Appointment.--The Chair of the Commission shall 
        be appointed by the President from among the members of 
        the Commission appointed under subsection (c)(1).
          (2) Authority.--The Chair shall be the principal 
        executive officer of the Bureau, and shall exercise all 
        of the executive and administrative functions of the 
        Bureau, including with respect to--
                  (A) the appointment and supervision of 
                personnel employed under the Bureau (other than 
                personnel employed regularly and full time in 
                the immediate offices of members of the 
                Commission other than the Chair);
                  (B) the distribution of business among 
                personnel appointed and supervised by the Chair 
                and among administrative units of the Bureau; 
                and
                  (C) the use and expenditure of funds.
          (3) Limitation.--In carrying out any of the Chair's 
        functions under the provisions of this subsection the 
        Chair 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 Chair 
        without the prior approval of the Commission.
  (f) 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.
  (g) Seal.--The Commission shall have an official seal.
  (h) Compensation.--
          (1) Chair.--The Chair 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 3 other 
        members of the Commission appointed under subsection 
        (c)(1) shall each receive compensation at the rate 
        prescribed for level II of the Executive Schedule under 
        section 5314 of title 5, United States Code.
  (i) Initial Quorum Established.--During any time period prior 
to the confirmation of at least two members of the Commission, 
one member of the Commission shall constitute a quorum for the 
transaction of business. Following the confirmation of at least 
2 additional commissioners, the quorum requirements of 
subsection (f) shall apply.
  [(e)] (j) Offices.--The principal office of the Bureau shall 
be in the District of Columbia. The [Director] Bureau may 
establish regional offices of the Bureau, including in cities 
in which the Federal reserve banks, or branches of such banks, 
are located, in order to carry out the responsibilities 
assigned to the Bureau under the Federal consumer financial 
laws.

SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS.

  (a) Powers of the Bureau.--The Bureau is authorized to 
establish the general policies of the Bureau with respect to 
all executive and administrative functions, including--
          (1) * * *

           *       *       *       *       *       *       *

          (8) the distribution of business among personnel 
        appointed and supervised by the [Director] Bureau and 
        among administrative units of the Bureau;

           *       *       *       *       *       *       *

  (b) Delegation of Authority.--The [Director of the] Bureau 
may delegate to any duly authorized employee, representative, 
or agent any power vested in the Bureau by law.
  (c) Autonomy of the Bureau.--
          (1) * * *
          (2) Autonomy.--Notwithstanding the authorities 
        granted to the Board of Governors under the Federal 
        Reserve Act, the Board of Governors may not--
                  (A) intervene in any matter or proceeding 
                before the [Director] Bureau, including 
                examinations or enforcement actions, unless 
                otherwise specifically provided by law;

           *       *       *       *       *       *       *

          (4) Recommendations and testimony.--No officer or 
        agency of the United States shall have any authority to 
        require the [Director] Commission of the Bureau or any 
        other officer of the Bureau to submit legislative 
        recommendations, or testimony or comments on 
        legislation, to any officer or agency of the United 
        States for approval, comments, or review prior to the 
        submission of such recommendations, testimony, or 
        comments to the Congress, if such recommendations, 
        testimony, or comments to the Congress include a 
        statement indicating that the views expressed therein 
        are those of the [Director] Commission of the Bureau or 
        such officer, and do not necessarily reflect the views 
        of the Board of Governors or the President.

           *       *       *       *       *       *       *


SEC. 1013. ADMINISTRATION.

  (a) Personnel.--
          (1) Appointment.--
                  (A) In general.--The [Director] Bureau may 
                fix the number of, and appoint and direct, all 
                employees of the Bureau, in accordance with the 
                applicable provisions of title 5, United States 
                Code.
                  (B) Employees of the bureau.--The [Director] 
                Bureau is authorized to employ attorneys, 
                compliance examiners, compliance supervision 
                analysts, economists, statisticians, and other 
                employees as may be deemed necessary to conduct 
                the business of the Bureau. Unless otherwise 
                provided expressly by law, any individual 
                appointed under this section shall be an 
                employee as defined in section 2105 of title 5, 
                United States Code, and subject to the 
                provisions of such title and other laws 
                generally applicable to the employees of an 
                Executive agency.
                  (C) Waiver authority.--
                          (i) In general.--In making any 
                        appointment under subparagraph (A), the 
                        [Director] Bureau may waive the 
                        requirements of chapter 33 of title 5, 
                        United States Code, and the regulations 
                        implementing such chapter, to the 
                        extent necessary to appoint employees 
                        on terms and conditions that are 
                        consistent with those set forth in 
                        section 11(1) of the Federal Reserve 
                        Act (12 U.S.C. 248(1)), while providing 
                        for--
                                  (I) * * *

           *       *       *       *       *       *       *

                          (ii) Veterans preferences.--In 
                        implementing this subparagraph, the 
                        [Director] Bureau shall comply with the 
                        provisions of section 2302(b)(11), 
                        regarding veterans' preference 
                        requirements, in a manner consistent 
                        with that in which such provisions are 
                        applied under chapter 33 of title 5, 
                        United States Code. The authority under 
                        this subparagraph to waive the 
                        requirements of that chapter 33 shall 
                        expire 5 years after the date of 
                        enactment of this Act.
          (2) Compensation.--Notwithstanding any otherwise 
        applicable provision of title 5, United States Code, 
        concerning compensation, including the provisions of 
        chapter 51 and chapter 53, the following provisions 
        shall apply with respect to employees of the Bureau:
                  (A) The rates of basic pay for all employees 
                of the Bureau may be set and adjusted by the 
                [Director] Bureau.
                  (B) The [Director] Bureau shall at all times 
                provide compensation (including benefits) to 
                each class of employees that, at a minimum, are 
                comparable to the compensation and benefits 
                then being provided by the Board of Governors 
                for the corresponding class of employees.

           *       *       *       *       *       *       *

  (b) Specific Functional Units.--
          (1) Research.--The [Director] Bureau shall establish 
        a unit whose functions shall include researching, 
        analyzing, and reporting on--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) Community affairs.--The [Director] Bureau shall 
        establish a unit whose functions shall include 
        providing information, guidance, and technical 
        assistance regarding the offering and provision of 
        consumer financial products or services to 
        traditionally underserved consumers and communities.
          (3) Collecting and tracking complaints.--
                  (A) In general.--The [Director] Bureau shall 
                establish a unit whose functions shall include 
                establishing a single, toll-free telephone 
                number, a website, and a database or utilizing 
                an existing database to facilitate the 
                centralized collection of, monitoring of, and 
                response to consumer complaints regarding 
                consumer financial products or services. The 
                [Director] Bureau shall coordinate with the 
                Federal Trade Commission or other Federal 
                agencies to route complaints to such agencies, 
                where appropriate.

           *       *       *       *       *       *       *

                  (C) Reports to the congress.--The [Director] 
                Bureau shall present an annual report to 
                Congress not later than March 31 of each year 
                on the complaints received by the Bureau in the 
                prior year regarding consumer financial 
                products and services. Such report shall 
                include information and analysis about 
                complaint numbers, complaint types, and, where 
                applicable, information about resolution of 
                complaints.

           *       *       *       *       *       *       *

  (c) Office of Fair Lending and Equal Opportunity.--
          (1) Establishment.--The [Director] Bureau shall 
        establish within the Bureau 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 
        [Director] Bureau may delegate to the Office, 
        including--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Administration of office.--There is established 
        the position of [Assistant Director of the Bureau for] 
        Head of the Office of Fair Lending and Equal 
        Opportunity, who--
                  (A) shall be appointed by the [Director] 
                Bureau; and
                  (B) shall carry out such duties as the 
                [Director] Bureau may delegate to such 
                [Assistant Director] Head of the Office.
  (d) Office of Financial Education.--
          (1) Establishment.--The [Director] Bureau shall 
        establish an Office of Financial Education, which shall 
        be responsible for developing and implementing 
        initiatives intended to educate and empower consumers 
        to make better informed financial decisions.

           *       *       *       *       *       *       *

          (3) Coordination.--The Office of Financial Education 
        shall coordinate with other units within the Bureau in 
        carrying out its functions, including--
                  (A) * * *
                  (B) working with the research unit 
                established by the [Director] Bureau to conduct 
                research related to consumer financial 
                education and counseling.
          (4) Report.--Not later than 24 months after the 
        designated transfer date, and annually thereafter, the 
        [Director] Bureau shall submit a report on its 
        financial literacy activities and strategy to improve 
        financial literacy of consumers to--
                  (A) * * *

           *       *       *       *       *       *       *

  (e) Office of Service Member Affairs.--
          (1) In general.--The [Director] Bureau shall 
        establish an Office of Service Member Affairs, which 
        shall be responsible for developing and implementing 
        initiatives for service members and their families 
        intended to--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) Coordination.--
                  (A) Regional services.--The [Director] Bureau 
                is authorized to assign employees of the Bureau 
                as may be deemed necessary to conduct the 
                business of the Office of Service Member 
                Affairs, including by establishing and 
                maintaining the functions of the Office in 
                regional offices of the Bureau located near 
                military bases, military treatment facilities, 
                or other similar military facilities.
                  (B) Agreements.--The [Director] Bureau is 
                authorized to enter into memoranda of 
                understanding and similar agreements with the 
                Department of Defense, including any branch or 
                agency as authorized by the department, in 
                order to carry out the business of the Office 
                of Service Member Affairs.

           *       *       *       *       *       *       *

  (g) Office of Financial Protection for Older Americans.--
          (1) Establishment.--Before the end of the 180-day 
        period beginning on the designated transfer date, the 
        [Director] Bureau shall establish the Office of 
        Financial Protection for Older Americans, the functions 
        of which shall include activities designed to 
        facilitate the financial literacy of individuals who 
        have attained the age of 62 years or more (in this 
        subsection, referred to as ``seniors'') on protection 
        from unfair, deceptive, and abusive practices and on 
        current and future financial choices, including through 
        the dissemination of materials to seniors on such 
        topics.
          (2) [Assistant director] Head of the office.--The 
        Office of Financial Protection for Older Americans (in 
        this subsection referred to as the ``Office'') shall be 
        headed by [an assistant director] a Head of the Office 
        of Financial Protection for Older Americans.

           *       *       *       *       *       *       *


SEC. 1014. CONSUMER ADVISORY BOARD.

  (a) Establishment Required.--The [Director] Bureau shall 
establish a Consumer Advisory Board to advise and consult with 
the Bureau in the exercise of its functions under the Federal 
consumer financial laws, and to provide information on emerging 
practices in the consumer financial products or services 
industry, including regional trends, concerns, and other 
relevant information.
  (b) Membership.--In appointing the members of the Consumer 
Advisory Board, the [Director] Bureau shall seek to assemble 
experts in consumer protection, financial services, community 
development, fair lending and civil rights, and consumer 
financial products or services and representatives of 
depository institutions that primarily serve underserved 
communities, and representatives of communities that have been 
significantly impacted by higher-priced mortgage loans, and 
seek representation of the interests of covered persons and 
consumers, without regard to party affiliation. Not fewer than 
6 members shall be appointed upon the recommendation of the 
regional Federal Reserve Bank Presidents, on a rotating basis.
  (c) Meetings.--The Consumer Advisory Board shall meet from 
time to time at the call of the [Director] Bureau, but, at a 
minimum, shall meet at least twice in each year.
  (d) 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 [Director] Bureau while attending meetings 
        of the Consumer Advisory Board, including travel time; 
        and

           *       *       *       *       *       *       *


SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

  (a) Appearances Before Congress.--The [Director of the 
Bureau] Chair of the Commission shall appear before the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services and the Committee on 
Energy and Commerce of the House of Representatives at semi-
annual hearings regarding the reports required under subsection 
(b).

           *       *       *       *       *       *       *


SEC. 1017. FUNDING; PENALTIES AND FINES.

  (a) Transfer of Funds From Board Of Governors.--
          (1) In general.--Each year (or quarter of such year), 
        beginning on the designated transfer date, and each 
        quarter thereafter, the Board of Governors shall 
        transfer to the Bureau from the combined earnings of 
        the Federal Reserve System, the amount determined by 
        the [Director] Bureau to be reasonably necessary to 
        carry out the authorities of the Bureau under Federal 
        consumer financial law, taking into account such other 
        sums made available to the Bureau from the preceding 
        year (or quarter of such year).

           *       *       *       *       *       *       *

          (4) Budget and financial management.--
                  (A) Financial operating plans and 
                forecasts.--The [Director] Bureau shall provide 
                to the Director of the Office of Management and 
                Budget copies of the financial operating plans 
                and forecasts of the [Director] Bureau, as 
                prepared by the [Director] Bureau in the 
                ordinary course of the operations of the 
                Bureau, and copies of the quarterly reports of 
                the financial condition and results of 
                operations of the Bureau, as prepared by the 
                [Director] Bureau in the ordinary course of the 
                operations of the Bureau.

           *       *       *       *       *       *       *

                  (D) Assertion of internal controls.--The 
                [Director] Bureau shall provide to the 
                Comptroller General of the United States an 
                assertion as to the effectiveness of the 
                internal controls that apply to financial 
                reporting by the Bureau, using the standards 
                established in section 3512(c) of title 31, 
                United States Code.
                  (E) Rule of construction.--This subsection 
                may not be construed as implying any obligation 
                on the part of the [Director] Bureau to consult 
                with or obtain the consent or approval of the 
                Director of the Office of Management and Budget 
                with respect to any report, plan, forecast, or 
                other information referred to in subparagraph 
                (A) or any jurisdiction or oversight over the 
                affairs or operations of the Bureau.

           *       *       *       *       *       *       *

          (5) Audit of the bureau.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Assistance and costs.--For the purpose of 
                conducting an audit under this subsection, the 
                Comptroller General may, in the discretion of 
                the Comptroller General, employ by contract, 
                without regard to section 3709 of the Revised 
                Statutes of the United States (41 U.S.C. 5), 
                professional services of firms and 
                organizations of certified public accountants 
                for temporary periods or for special purposes. 
                Upon the request of the Comptroller General, 
                the [Director of the] Bureau shall transfer to 
                the Government Accountability Office from funds 
                available, the amount requested by the 
                Comptroller General to cover the full costs of 
                any audit and report conducted by the 
                Comptroller General. The Comptroller General 
                shall credit funds transferred to the account 
                established for salaries and expenses of the 
                Government Accountability Office, and such 
                amount shall be available upon receipt and 
                without fiscal year limitation to cover the 
                full costs of the audit and report.

           *       *       *       *       *       *       *

  (c) Use of Funds.--
          (1) In general.--Funds obtained by, transferred to, 
        or credited to the Bureau Fund shall be immediately 
        available to the Bureau and under the control of the 
        [Director] Bureau, and shall remain available until 
        expended, to pay the expenses of the Bureau in carrying 
        out its duties and responsibilities. The compensation 
        of the [Director] Bureau and other employees of the 
        Bureau and all other expenses thereof may be paid from, 
        obtained by, transferred to, or credited to the Bureau 
        Fund under this section.

           *       *       *       *       *       *       *

  (e) Authorization of Appropriations; Annual Report.--
          (1) Determination regarding need for appropriated 
        funds.--
                  (A) In general.--The [Director] Bureau is 
                authorized to determine that sums available to 
                the Bureau under this section will not be 
                sufficient to carry out the authorities of the 
                Bureau under Federal consumer financial law for 
                the upcoming year.
                  (B) Report required.--When making a 
                determination under subparagraph (A), the 
                [Director] Bureau shall prepare a report 
                regarding the funding of the Bureau, including 
                the assets and liabilities of the Bureau, and 
                the extent to which the funding needs of the 
                Bureau are anticipated to exceed the level of 
                the amount set forth in subsection (a)(2). The 
                [Director] Bureau shall submit the report to 
                the President and to the Committee on 
                Appropriations of the Senate and the Committee 
                on Appropriations of the House of 
                Representatives.
          (2) Authorization of appropriations.--If the 
        [Director] Bureau makes the determination and submits 
        the report pursuant to paragraph (1), there are hereby 
        authorized to be appropriated to the Bureau, for the 
        purposes of carrying out the authorities granted in 
        Federal consumer financial law, $200,000,000 for each 
        of fiscal years 2010, 2011, 2012, 2013, and 2014.

           *       *       *       *       *       *       *

          (4) Annual report.--The [Director] Bureau shall 
        prepare and submit a report, on an annual basis, to the 
        Committee on Appropriations of the Senate and the 
        Committee on Appropriations of the House of 
        Representatives regarding the financial operating plans 
        and forecasts of the [Director] Bureau, the financial 
        condition and results of operations of the Bureau, and 
        the sources and application of funds of the Bureau, 
        including any funds appropriated in accordance with 
        this subsection.

           *       *       *       *       *       *       *


                Subtitle B--General Powers of the Bureau

SEC. 1022. RULEMAKING AUTHORITY.

  (a) * * *
  (b) Rulemaking, Orders, and Guidance.--
          (1) General authority.--The [Director] Bureau may 
        prescribe rules and issue orders and guidance, as may 
        be necessary or appropriate to enable the Bureau to 
        administer and carry out the purposes and objectives of 
        the Federal consumer financial laws, and to prevent 
        evasions thereof.

           *       *       *       *       *       *       *


SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED PERSONS.

  (a) * * *
  (b) Supervision.--
          (1) * * *

           *       *       *       *       *       *       *

          (5) Preservation of authority.--Nothing in this title 
        may be construed as limiting the authority of the 
        [Director] Bureau to require reports from persons 
        described in subsection (a)(1), as permitted under 
        paragraph (1), regarding information owned or under the 
        control of such person, regardless of whether such 
        information is maintained, stored, or processed by 
        another person.

           *       *       *       *       *       *       *


SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS ASSOCIATIONS, AND 
                    CREDIT UNIONS.

  (a) * * *
  (b) Supervision.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Preservation of authority.--Nothing in this title 
        may be construed as limiting the authority of the 
        [Director] Bureau to require reports from a person 
        described in subsection (a), as permitted under 
        paragraph (1), regarding information owned or under the 
        control of such person, regardless of whether such 
        information is maintained, stored, or processed by 
        another person.

           *       *       *       *       *       *       *


SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND CREDIT UNIONS.

  (a) * * *
  (b) Reports.--The [Director] Bureau may require reports from 
a person described in subsection (a), as necessary to support 
the role of the Bureau in implementing Federal consumer 
financial law, to support its examination activities under 
subsection (c), and to assess and detect risks to consumers and 
consumer financial markets.
          (1) * * *
          (2) Preservation of authority.--Nothing in this 
        subsection may be construed as limiting the authority 
        of the [Director] Bureau from requiring from a person 
        described in subsection (a), as permitted under 
        paragraph (1), information owned or under the control 
        of such person, regardless of whether such information 
        is maintained, stored, or processed by another person.

           *       *       *       *       *       *       *


SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU; PRESERVATION OF 
                    AUTHORITIES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Exclusion for Manufactured Home Retailers and Modular 
Home Retailers.--
          (1) In general.--The [Director] Bureau may not 
        exercise any rulemaking, supervisory, enforcement, or 
        other authority over a person to the extent that--
                  (A) * * *

           *       *       *       *       *       *       *

  (l) Exclusion for Activities Relating to Charitable 
Contributions.--
          (1) In general.--The [Director] Bureau and the Bureau 
        may not exercise any rulemaking, supervisory, 
        enforcement, or other authority, including authority to 
        order penalties, over any activities related to the 
        solicitation or making of voluntary contributions to a 
        tax-exempt organization as recognized by the Internal 
        Revenue Service, by any agent, volunteer, or 
        representative of such organizations to the extent the 
        organization, agent, volunteer, or representative 
        thereof is soliciting or providing advice, information, 
        education, or instruction to any donor or potential 
        donor relating to a contribution to the organization.

           *       *       *       *       *       *       *


                Subtitle C--Specific Bureau Authorities

SEC. 1035. PRIVATE EDUCATION LOAN OMBUDSMAN.

  (a) Establishment.--The Secretary, in consultation with the 
[Director] Bureau, shall designate a Private Education Loan 
Ombudsman (in this section referred to as the ``Ombudsman'') 
within the Bureau, to provide timely assistance to borrowers of 
private education loans.
  (b) Public Information.--The Secretary and the [Director] 
Bureau shall disseminate information about the availability and 
functions of the Ombudsman to borrowers and potential 
borrowers, as well as institutions of higher education, 
lenders, guaranty agencies, loan servicers, and other 
participants in private education student loan programs.
  (c) Functions of Ombudsman.--The Ombudsman designated under 
this subsection shall--
          (1) in accordance with regulations of the [Director] 
        Bureau, receive, review, and attempt to resolve 
        informally complaints from borrowers of loans described 
        in subsection (a), including, as appropriate, attempts 
        to resolve such complaints in collaboration with the 
        Department of Education and with institutions of higher 
        education, lenders, guaranty agencies, loan servicers, 
        and other participants in private education loan 
        programs;

           *       *       *       *       *       *       *

          (4) make appropriate recommendations to the 
        [Director] Bureau, the Secretary, the Secretary of 
        Education, the Committee on Banking, Housing, and Urban 
        Affairs and the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on 
        Financial Services and the Committee on Education and 
        Labor of the House of Representatives.

           *       *       *       *       *       *       *


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

           *       *       *       *       *       *       *


SEC. 1066. INTERIM AUTHORITY OF THE SECRETARY.

  (a) In General.--The Secretary is authorized to perform the 
functions of the Bureau under this subtitle until the [Director 
of the Bureau is] first member of the Commission is confirmed 
by the Senate in accordance with section 1011.

           *       *       *       *       *       *       *


Subtitle G--Regulatory Improvements

           *       *       *       *       *       *       *


SEC. 1079. REVIEW, REPORT, AND PROGRAM WITH RESPECT TO EXCHANGE 
                    FACILITATORS.

  (a) Review.--The [Director] Bureau shall review all Federal 
laws and regulations relating to the protection of consumers 
who use exchange facilitators for transactions primarily for 
personal, family, or household purposes.
  (b) Report.--Not later than 1 year after the designated 
transfer date, the [Director] Bureau shall submit to Congress a 
report describing--
          (1) * * *

           *       *       *       *       *       *       *


TITLE XIV--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

           *       *       *       *       *       *       *


Subtitle D--Office of Housing Counseling

           *       *       *       *       *       *       *


SEC. 1447. DEFAULT AND FORECLOSURE DATABASE.

  (a) Establishment.--The Secretary of Housing and Urban 
Development and the [Director of the Bureau] Bureau, in 
consultation with the Federal agencies responsible for 
regulation of banking and financial institutions involved in 
residential mortgage lending and servicing, shall establish and 
maintain a database of information on foreclosures and defaults 
on mortgage loans for one- to four-unit residential properties 
and shall make such information publicly available, subject to 
subsection (e).

           *       *       *       *       *       *       *

  (c) Requirements.--Information collected and made available 
through the database shall include--
          (1) * * *

           *       *       *       *       *       *       *

          (6) such other information as the Secretary of 
        Housing and Urban Development and the [Director of the 
        Bureau] Bureau consider appropriate.

           *       *       *       *       *       *       *

  (e) Privacy and Confidentiality.--In establishing and 
maintaining the database described in subsection (a), the 
Secretary of Housing and Urban Development and the [Director of 
the Bureau] Bureau shall--
          (1) * * *

           *       *       *       *       *       *       *

                              ----------                              


            SECTION 920 OF THE ELECTRONIC FUND TRANSFER ACT

SEC. 920. REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS.

  (a) Reasonable Interchange Transaction Fees for Electronic 
Debit Transactions.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Considerations; consultation.--In prescribing 
        regulations under paragraph (3)(A), the Board shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) consult, as appropriate, with the 
                Comptroller of the Currency, the Board of 
                Directors of the Federal Deposit Insurance 
                Corporation, the Director of the Office of 
                Thrift Supervision, the National Credit Union 
                Administration Board, the Administrator of the 
                Small Business Administration, and the 
                [Director of the Bureau of Consumer Financial 
                Protection] Bureau of Consumer Financial 
                Protection.

           *       *       *       *       *       *       *

                              ----------                              


EXPEDITED FUNDS AVAILABILITY ACT

           *       *       *       *       *       *       *


                 TITLE VI--EXPEDITED FUNDS AVAILABILITY

SEC. 601. SHORT TITLE.

  This title may be cited as the ``Expedited Funds Availability 
Act''.

           *       *       *       *       *       *       *


SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Time Period Adjustments.--
          (1) Reduction generally.--Notwithstanding any other 
        provision of law, the Board, jointly with the [Director 
        of the Bureau] Bureau of Consumer Financial Protection, 
        shall, by regulation, reduce the time periods 
        established under subsections (b), (c), and (e) to as 
        short a time as possible and equal to the period of 
        time achievable under the improved check clearing 
        system for a receiving depository institution to 
        reasonably expect to learn of the nonpayment of most 
        items for each category of checks.

           *       *       *       *       *       *       *


SEC. 604. SAFEGUARD EXCEPTIONS.

  (a) New Accounts.--Notwithstanding section 603, in the case 
of any account established at a depository institution by a new 
depositor, the following provisions shall apply with respect to 
any deposit in such account during the 30-day period (or such 
shorter period as the Board, jointly with the [Director of the 
Bureau] Bureau of Consumer Financial Protection, may establish) 
beginning on the date such account is established--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Large or Redeposited Checks; Repeated Overdrafts.--The 
Board, jointly with the [Director of the Bureau] Bureau of 
Consumer Financial Protection, may, by regulation, establish 
reasonable exceptions to any time limitation established under 
subsection (a)(2), (b), (c), or (e) of section 603 for--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Reasonable Cause Exception.--
          (1) In general.--In accordance with regulations which 
        the Board, jointly with the [Director of the Bureau] 
        Bureau of Consumer Financial Protection, shall 
        prescribe, subsections (a)(2), (b), (c), and (e) of 
        section 603 shall not apply with respect to any check 
        deposited in an account at a depository institution if 
        the receiving depository institution has reasonable 
        cause to believe that the check is uncollectible from 
        the originating depository institution. For purposes of 
        the preceding sentence, reasonable cause to believe 
        requires the existence of facts which would cause a 
        well-grounded belief in the mind of a reasonable 
        person. Such reasons shall be included in the notice 
        required under sub- section (f).

           *       *       *       *       *       *       *

  (d) Emergency Conditions.--Subject to such regulations as the 
Board, jointly with the [Director of the Bureau] Bureau of 
Consumer Financial Protection, may prescribe, subsections 
(a)(2), (b), (c), and (e) of section 603 shall not apply to 
funds deposited by check in any receiving depository 
institution in the case of--
          (1) * * *

           *       *       *       *       *       *       *

if the receiving depository institution exercises such 
diligence as the circumstances require.
  (e) Prevention of Fraud Losses.--
          (1) In general.--The Board, jointly with the 
        [Director of the Bureau] Bureau of Consumer Financial 
        Protection, may, by regulation or order, suspend the 
        applicability of this title, or any portion thereof, to 
        any classification of checks if the Board, jointly with 
        the [Director of the Bureau] Bureau of Consumer 
        Financial Protection, determines that--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Report to congress.--
                  (A) Notice of each suspension.--Within 10 
                days of prescribing any regulation or issuing 
                any order under paragraph (1), the Board, 
                jointly with the [Director of the Bureau] 
                Bureau of Consumer Financial Protection, shall 
                transmit a report of such action to the 
                Committee on Banking, Finance and Urban Affairs 
                of the House of Representatives and the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate.
                  (B) Contents of report.--Each report under 
                subparagraph (A) shall contain--
                          (i) * * *
                          (ii) evidence considered by the 
                        Board, jointly with the [Director of 
                        the Bureau] Bureau of Consumer 
                        Financial Protection, in making the 
                        determination under paragraph (1) with 
                        respect to such regulation or order; 
                        and

           *       *       *       *       *       *       *

  (f) Notice of Exception; Availability Within Reasonable 
Time.--
          (1) In general.--If any exception contained in this 
        section (other than subsection (a)) applies with 
        respect to funds deposited in an account at a 
        depository institution--
                  (A) * * *
                  (B) except where other time periods are 
                specifically provided in this title, the 
                availability of the funds deposited shall be 
                governed by the policy of the receiving 
                depository institution, but shall not exceed a 
                reasonable period of time as determined by the 
                Board, jointly with the [Director of the 
                Bureau] Bureau of Consumer Financial 
                Protection.
          (2) Time for notice.--The notice required under 
        paragraph (1)(A) with respect to a deposit to which an 
        exception contained in this section applies shall be 
        made by the time provided in the following 
        subparagraphs:
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) In the case of a deposit to which 
                subsection (d) or (e) applies, notice shall be 
                provided by the depository institution in 
                accordance with regulations of the Board, 
                jointly with the [Director of the Bureau] 
                Bureau of Consumer Financial Protection.

           *       *       *       *       *       *       *


SEC. 605. DISCLOSURE OF FUNDS AVAILABILITY POLICIES.

  (a) * * *
  (b) Preprinted Deposit Slips.--All preprinted deposit slips 
that a depository institution furnishes to its customers shall 
contain a summary notice, as prescribed by the Board, jointly 
with the [Director of the Bureau] Bureau of Consumer Financial 
Protection, in regulations, that deposited items may not be 
available for immediate withdrawal.

           *       *       *       *       *       *       *

  (d) Posting of Notice.--
          (1) * * *
          (2) General notice at automated teller machines.--In 
        the case of any automated teller machine at which any 
        funds are received for deposit in an account at any 
        depository institution, the Board, jointly with the 
        [Director of the Bureau] Bureau of Consumer Financial 
        Protection, shall prescribe, by regulations, that the 
        owner or operator of such automated teller machine 
        shall post or provide a general notice that funds 
        deposited in such machine may not be immediately 
        available for withdrawal.

           *       *       *       *       *       *       *

  (f) Model Disclosure Forms.--
          (1) Prepared by board and bureau.--The Board, jointly 
        with the [Director of the Bureau] Bureau of Consumer 
        Financial Protection, shall publish model disclosure 
        forms and clauses for common transactions to facilitate 
        compliance with the disclosure requirements of this 
        section and to aid customers by utilizing readily 
        understandable language.

           *       *       *       *       *       *       *

          (3) Voluntary use.--Nothing in this title requires 
        the use of any such model form or clause prescribed by 
        the Board, jointly with the [Director of the Bureau] 
        Bureau of Consumer Financial Protection, under this 
        subsection.
          (4) Notice and comment.--Model disclosure forms and 
        clauses shall be adopted by the Board, jointly with the 
        [Director of the Bureau] Bureau of Consumer Financial 
        Protection, only after notice duly given in the Federal 
        Register and an opportunity for public comment in 
        accordance with section 553 of title 5, United States 
        Code.

SEC. 609. REGULATIONS AND REPORTS BY BOARD.

  (a) In General.--After notice and opportunity to submit 
comment in accordance with section 553(c) of title 5, United 
States Code, the Board, jointly with the [Director of the 
Bureau] Bureau of Consumer Financial Protection, shall 
prescribe regulations--
          (1) * * *

           *       *       *       *       *       *       *

  (e) Consultations.--In prescribing regulations under 
subsections (a) and (b), the Board and the [Director of the 
Bureau] Bureau of Consumer Financial Protection, in the case of 
subsection (a), and the Board, in the case of subsection (b), 
shall consult with the Comptroller of the Currency, the Board 
of Directors of the Federal Deposit Insurance Corporation, and 
the National Credit Union Administration Board.

           *       *       *       *       *       *       *

                              ----------                              


FEDERAL DEPOSIT INSURANCE ACT

           *       *       *       *       *       *       *


SEC. 2. MANAGEMENT.

  (a) Board of Directors.--
          (1) In general.--The management of the Corporation 
        shall be vested in a Board of Directors consisting of 5 
        members--
                  (A) * * *
                  (B) 1 of whom shall be the [Director of the 
                Consumer Financial Protection Bureau] Chair of 
                the Commission of the Bureau of Consumer 
                Financial Protection; and

           *       *       *       *       *       *       *

  (d) Vacancy.--
          (1) * * *
          (2) Acting officials may serve.--In the event of a 
        vacancy in the office of the Comptroller of the 
        Currency or the office of [Director of the Consumer 
        Financial Protection Bureau] Chair of the Commission of 
        the Bureau of Consumer Financial Protection and pending 
        the appointment of a successor, or during the absence 
        or disability of the Comptroller of the Currency or the 
        [Director of the Consumer Financial Protection Bureau] 
        Chair of the Commission of the Bureau of Consumer 
        Financial Protection, the acting Comptroller of the 
        Currency or the acting [Director of the Consumer 
        Financial Protection Bureau] Chair of the Commission of 
        the Bureau of Consumer Financial Protection, as the 
        case may be, shall be a member of the Board of 
        Directors in the place of the Comptroller or Director.

           *       *       *       *       *       *       *

                              ----------                              


FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978

           *       *       *       *       *       *       *


TITLE X--FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

           *       *       *       *       *       *       *


                      establishment of the council

  Sec. 1004. (a) There is established the Financial 
Institutions Examination Council which shall consist of--
          (1) * * *

           *       *       *       *       *       *       *

          (4) the [Director of the Consumer Financial 
        Protection Bureau] Chair of the Commission of the 
        Bureau of Consumer Financial Protection,

           *       *       *       *       *       *       *

                              ----------                              


SECTION 513 OF THE FINANCIAL LITERACY AND EDUCATION IMPROVEMENT ACT

           *       *       *       *       *       *       *


         TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION.

  (a) * * *
  (c) Membership.--
          (1) Composition.--The Commission shall be composed 
        of--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) the [Director] Chair of the Commission of 
                the Bureau of Consumer Financial Protection; 
                and

           *       *       *       *       *       *       *

  (d) Chairperson.--The Secretary of the Treasury shall serve 
as the Chairperson. The [Director] Chair of the Commission of 
the Bureau of Consumer Financial Protection shall serve as the 
Vice Chairman.

           *       *       *       *       *       *       *

                              ----------                              


                  HOME MORTGAGE DISCLOSURE ACT OF 1975

                  TITLE III--HOME MORTGAGE DISCLOSURE

                              short title

  Sec. 301. This title may be cited as the ``Home Mortgage 
Disclosure Act of 1975''.

           *       *       *       *       *       *       *


SEC. 307. COMPLIANCE IMPROVEMENT METHODS.

  (a) In General.--
          (1) Consultation required.--The [Director of the 
        Bureau of Consumer Financial Protection] Bureau of 
        Consumer Financial Protection, 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 Bureau 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.

           *       *       *       *       *       *       *

          (3) Contracting authority.--The [Director of the 
        Bureau of Consumer Financial Protection] Bureau of 
        Consumer Financial Protection is authorized to utilize, 
        contract with, act through, or compensate any person or 
        agency in order to carry out this subsection.
  (b) Recommendations to Congress.--The [Director of the Bureau 
of Consumer Financial Protection] Bureau of Consumer Financial 
Protection shall recommend to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives, such 
additional legislation as the [Director of the Bureau of 
Consumer Financial Protection] Bureau of Consumer Financial 
Protection deems appropriate to carry out the purpose of this 
title.

           *       *       *       *       *       *       *

                              ----------                              


INTERSTATE LAND SALES FULL DISCLOSURE ACT

           *       *       *       *       *       *       *


TITLE XIV--INTERSTATE LAND SALES

           *       *       *       *       *       *       *


                              definitions

  Sec. 1402. For the purposes of this title, the term--
          [(1) ``Director'' means the Director of the Bureau of 
        Consumer Financial Protection;]
          (1) ``Chair'' means the Chair of the Commission of 
        the Bureau of Consumer Financial Protection;

           *       *       *       *       *       *       *


                             administration

  Sec. 1416. (a) The authority and responsibility for 
administering this title shall be in the [Director of the 
Bureau of Consumer Financial Protection] Chair who may delegate 
any of his functions, duties, and powers to employees of the 
Bureau of Consumer Financial Protection or to boards of such 
employees including functions, duties, and powers with respect 
to investigating, hearing, determining, ordering, or otherwise 
acting as to any work, business, or matter under this title. 
The persons to whom such delegations are made with respect to 
hearing functions, duties, and powers shall be appointed and 
shall serve in the Bureau in compliance with sections 3105, 
3344, 5372, and 7521 of title 5 of the United States Code. The 
Director shall by rule prescribed such rights of appeal from 
the decisions of his administrative law judges to other 
administrative law judges or to other officers in the Bureau, 
to boards of officers or to himself, as shall be apropriate and 
in accordance with law.

           *       *       *       *       *       *       *

                              ----------                              


REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974

           *       *       *       *       *       *       *


                    home buying information booklets

  Sec. 5. (a) Preparation and Distribution.-- [The Director of 
the Bureau of Consumer Financial Protection (hereafter in this 
section referred to as the ``Director'')] The Bureau of 
Consumer Financial Protection shall prepare, at least once 
every 5 years, a booklet to help consumers applying for 
federally related mortgage loans to understand the nature and 
costs of real estate settlement services. The [Director] Bureau 
shall prepare the booklet in various languages and cultural 
styles, as the [Director] Bureau determines to be appropriate, 
so that the booklet is understandable and accessible to 
homebuyers of different ethnic and cultural backgrounds. The 
[Director] Bureau shall distribute such booklets to all lenders 
that make federally related mortgage loans. The [Director] 
Bureau shall also distribute to such lenders lists, organized 
by location, of homeownership counselors certified under 
section 106(e) of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x(e)) for use in complying with the requirement 
under subsection (c) of this section.
  (b) Contents.--Each booklet shall be in such form and detail 
as the [Director] Bureau shall prescribe and, in addition to 
such other information as the [Director] Bureau may provide, 
shall include in plain and understandable language the 
following information:
          (1) * * *

           *       *       *       *       *       *       *

          (6) A brief explanation of the nature of a variable 
        rate mortgage and a reference to the booklet entitled 
        ``Consumer Handbook on Adjustable Rate Mortgages'', 
        published by the [Director] Bureau, or to any suitable 
        substitute of such booklet that the [Director] Bureau 
        may subsequently adopt pursuant to such section.

           *       *       *       *       *       *       *

                              ----------                              


                S.A.F.E. MORTGAGE LICENSING ACT OF 2008

DIVISION A--HOUSING FINANCE REFORM

           *       *       *       *       *       *       *


                TITLE V--S.A.F.E. MORTGAGE LICENSING ACT

SEC. 1501. SHORT TITLE.

  This title may be cited as the ``Secure and Fair Enforcement 
for Mortgage Licensing Act of 2008'' or ``S.A.F.E. Mortgage 
Licensing Act of 2008''.

SEC. 1503. DEFINITIONS.

  For purposes of this title, the following definitions shall 
apply:
          (1) * * *

           *       *       *       *       *       *       *

          (6) Nationwide mortgage licensing system and 
        registry.--The term ``Nationwide Mortgage Licensing 
        System and Registry'' means a mortgage licensing system 
        developed and maintained by the Conference of State 
        Bank Supervisors and the American Association of 
        Residential Mortgage Regulators for the State licensing 
        and registration of State-licensed loan originators and 
        the registration of registered loan originators or any 
        system established by the [Director] Bureau under 
        section 1509.

           *       *       *       *       *       *       *

          [(10) Director.--The term ``Director '' means the 
        Director of the Bureau of Consumer Financial 
        Protection.]

           *       *       *       *       *       *       *

          (12) State-licensed loan originator.--The term 
        ``State-licensed loan originator'' means any individual 
        who--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) is licensed by a State or by the 
                [Director] Bureau under section 1508 and 
                registered as a loan originator with, and 
                maintains a unique identifier through, the 
                Nationwide Mortgage Licensing System and 
                Registry.

           *       *       *       *       *       *       *


SEC. 1508. BUREAU OF CONSUMER FINANCIAL PROTECTION BACKUP AUTHORITY TO 
                    ESTABLISH LOAN ORIGINATOR LICENSING SYSTEM.

  (a) Backup Licensing System.--If, by the end of the 1-year 
period, or the 2-year period in the case of a State whose 
legislature meets only biennially, beginning on the date of the 
enactment of this title or at any time thereafter, the 
[Director] Bureau determines that a State does not have in 
place by law or regulation a system for licensing and 
registering loan originators that meets the requirements of 
sections 1505 and 1506 and subsection (d) of this section, or 
does not participate in the Nationwide Mortgage Licensing 
System and Registry, the [Director] Bureau shall provide for 
the establishment and maintenance of a system for the licensing 
and registration by the [Director] Bureau of loan originators 
operating in such State as State-licensed loan originators.
  (b) Licensing and Registration Requirements.--The system 
established by the [Director] Bureau under subsection (a) for 
any State shall meet the requirements of sections 1505 and 1506 
for State-licensed loan originators.
  (c) Unique Identifier.--The [Director] Bureau shall 
coordinate with the Nationwide Mortgage Licensing System and 
Registry to establish protocols for assigning a unique 
identifier to each loan originator licensed by the [Director] 
Bureau as a State-licensed loan originator that will facilitate 
electronic tracking and uniform identification of, and public 
access to, the employment history of and the publicly 
adjudicated disciplinary and enforcement actions against loan 
originators.
  (d) State Licensing Law Requirements.--For purposes of this 
section, the law in effect in a State meets the requirements of 
this subsection if the [Director] Bureau determines the law 
satisfies the following minimum requirements:
          (1) * * *

           *       *       *       *       *       *       *

  (e) Temporary Extension of Period.--The [Director] Bureau may 
extend, by not more than 24 months, the 1-year or 2-year 
period, as the case may be, referred to in subsection (a) for 
the licensing of loan originators in any State under a State 
licensing law that meets the requirements of sections 1505 and 
1506 and subsection (d) if the [Director] Bureau determines 
that such State is making a good faith effort to establish a 
State licensing law that meets such requirements, license 
mortgage originators under such law, and register such 
originators with the Nationwide Mortgage Licensing System and 
Registry.

           *       *       *       *       *       *       *


SEC. 1509. BACKUP AUTHORITY TO ESTABLISH A NATIONWIDE MORTGAGE 
                    LICENSING AND REGISTRY SYSTEM.

  If at any time the [Director] Bureau determines that the 
Nationwide Mortgage Licensing System and Registry is failing to 
meet the requirements and purposes of this title for a 
comprehensive licensing, supervisory, and tracking system for 
loan originators, the [Director] Bureau shall establish and 
maintain such a system to carry out the purposes of this title 
and the effective registration and regulation of loan 
originators.

           *       *       *       *       *       *       *


SEC. 1512. CONFIDENTIALITY OF INFORMATION.

  (a) System Confidentiality.--Except as otherwise provided in 
this section, any requirement under Federal or State law 
regarding the privacy or confidentiality of any information or 
material provided to the Nationwide Mortgage Licensing System 
and Registry or a system established by the [Director] Bureau 
under section 1509, and any privilege arising under Federal or 
State law (including the rules of any Federal or State court) 
with respect to such information or material, shall continue to 
apply to such information or material after the information or 
material has been disclosed to the system. Such information and 
material may be shared with all State and Federal regulatory 
officials with mortgage industry oversight authority without 
the loss of privilege or the loss of confidentiality 
protections provided by Federal and State laws.
  (b) Nonapplicability of Certain Requirements.--Information or 
material that is subject to a privilege or confidentiality 
under subsection (a) shall not be subject to--
          (1) * * *
          (2) subpoena or discovery, or admission into 
        evidence, in any private civil action or administrative 
        process, unless with respect to any privilege held by 
        the Nationwide Mortgage Licensing System and Registry 
        or the [Director] Bureau with respect to such 
        information or material, the person to whom such 
        information or material pertains waives, in whole or in 
        part, in the discretion of such person, that privilege.

           *       *       *       *       *       *       *


SEC. 1513. LIABILITY PROVISIONS.

  The Bureau, 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 
[Director] Bureau under section 1509, or any officer or 
employee of any such entity, shall not be 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.

SEC. 1514. ENFORCEMENT BY THE BUREAU.

  (a) Summons Authority.--The [Director] Bureau may--
          (1) examine any books, papers, records, or other data 
        of any loan originator operating in any State which is 
        subject to a licensing system established by the 
        [Director] Bureau under section 1508; and
          (2) summon any loan originator referred to in 
        paragraph (1) or any person having possession, custody, 
        or care of the reports and records relating to such 
        loan originator, to appear before the [Director] Bureau 
        or any delegate of the [Director] Bureau at a time and 
        place named in the summons and to produce such books, 
        papers, records, or other data, and to give testimony, 
        under oath, as may be relevant or material to an 
        investigation of such loan originator for compliance 
        with the requirements of this title.
  (b) Examination Authority.--
          (1) In general.--If the [Director] Bureau establishes 
        a licensing system under section 1508 for any State, 
        the [Director] Bureau shall appoint examiners for the 
        purposes of administering such section.
          (2) Power to examine.--Any examiner appointed under 
        paragraph (1) shall have power, on behalf of the 
        [Director] Bureau, to make any examination of any loan 
        originator operating in any State which is subject to a 
        licensing system established by the [Director] Bureau 
        under section 1508 whenever the [Director] Bureau 
        determines an examination of any loan originator is 
        necessary to determine the compliance by the originator 
        with this title.
          (3) Report of examination.--Each examiner appointed 
        under paragraph (1) shall make a full and detailed 
        report of examination of any loan originator examined 
        to the [Director] Bureau.
          (4) Administration of oaths and affirmations; 
        evidence.--In connection with examinations of loan 
        originators operating in any State which is subject to 
        a licensing system established by the [Director] Bureau 
        under section 1508, or with other types of 
        investigations to determine compliance with applicable 
        law and regulations, the [Director] Bureau and 
        examiners appointed by the [Director] Bureau may 
        administer oaths and affirmations and examine and take 
        and preserve testimony under oath as to any matter in 
        respect to the affairs of any such loan originator.
          (5) Assessments.--The cost of conducting any 
        examination of any loan originator operating in any 
        State which is subject to a licensing system 
        established by the [Director] Bureau under section 1508 
        shall be assessed by the [Director] Bureau against the 
        loan originator to meet the Secretary's expenses in 
        carrying out such examination.
  (c) Cease and Desist Proceeding.--
          (1) Authority of secretary.--If the [Director] Bureau 
        finds, after notice and opportunity for hearing, that 
        any person is violating, has violated, or is about to 
        violate any provision of this title, or any regulation 
        thereunder, with respect to a State which is subject to 
        a licensing system established by the [Director] Bureau 
        under section 1508, the [Director] Bureau may publish 
        such findings and enter an order requiring such person, 
        and any other person that is, was, or would be a cause 
        of the violation, due to an act or omission the person 
        knew or should have known would contribute to such 
        violation, to cease and desist from committing or 
        causing such violation and any future violation of the 
        same provision, rule, or regulation. Such order may, in 
        addition to requiring a person to cease and desist from 
        committing or causing a violation, require such person 
        to comply, or to take steps to effect compliance, with 
        such provision or regulation, upon such terms and 
        conditions and within such time as the [Director] 
        Bureau may specify in such order. Any such order may, 
        as the [Director] Bureau deems appropriate, require 
        future compliance or steps to effect future compliance, 
        either permanently or for such period of time as the 
        [Director] Bureau may specify, with such provision or 
        regulation with respect to any loan originator.
          (2) Hearing.--The notice instituting proceedings 
        pursuant to paragraph (1) shall fix a hearing date not 
        earlier than 30 days nor later than 60 days after 
        service of the notice unless an earlier or a later date 
        is set by the [Director] Bureau with the consent of any 
        respondent so served.
          (3) Temporary order.--Whenever the [Director] Bureau 
        determines that the alleged violation or threatened 
        violation specified in the notice instituting 
        proceedings pursuant to paragraph (1), or the 
        continuation thereof, is likely to result in 
        significant dissipation or conversion of assets, 
        significant harm to consumers, or substantial harm to 
        the public interest prior to the completion of the 
        proceedings, the [Director] Bureau may enter a 
        temporary order requiring the respondent to cease and 
        desist from the violation or threatened violation and 
        to take such action to prevent the violation or 
        threatened violation and to prevent dissipation or 
        conversion of assets, significant harm to consumers, or 
        substantial harm to the public interest as the 
        [Director] Bureau deems appropriate pending completion 
        of such proceedings. Such an order shall be entered 
        only after notice and opportunity for a hearing, unless 
        the [Director] Bureau determines that notice and 
        hearing prior to entry would be impracticable or 
        contrary to the public interest. A temporary order 
        shall become effective upon service upon the respondent 
        and, unless set aside, limited, or suspended by the 
        [Director] Bureau or a court of competent jurisdiction, 
        shall remain effective and enforceable pending the 
        completion of the proceedings.
          (4) Review of temporary orders.--
                  (A) Review by secretary.--At any time after 
                the respondent has been served with a temporary 
                cease and desist order pursuant to paragraph 
                (3), the respondent may apply to the [Director] 
                Bureau to have the order set aside, limited, or 
                suspended. If the respondent has been served 
                with a temporary cease and desist order entered 
                without a prior hearing before the [Director] 
                Bureau, the respondent may, within 10 days 
                after the date on which the order was served, 
                request a hearing on such application and the 
                [Director] Bureau shall hold a hearing and 
                render a decision on such application at the 
                earliest possible time.
                  (B) Judicial review.--Within--
                          (i) 10 days after the date the 
                        respondent was served with a temporary 
                        cease and desist order entered with a 
                        prior hearing before the [Director] 
                        Bureau; or
                          (ii) 10 days after the [Director] 
                        Bureau renders a decision on an 
                        application and hearing under paragraph 
                        (1), with respect to any temporary 
                        cease and desist order entered without 
                        a prior hearing before the [Director] 
                        Bureau,
                the respondent may apply to the United States 
                district court for the district in which the 
                respondent resides or has its principal place 
                of business, or for the District of Columbia, 
                for an order setting aside, limiting, or 
                suspending the effectiveness or enforcement of 
                the order, and the court shall have 
                jurisdiction to enter such an order. A 
                respondent served with a temporary cease and 
                desist order entered without a prior hearing 
                before the [Director] Bureau may not apply to 
                the court except after hearing and decision by 
                the [Director] Bureau on the respondent's 
                application under subparagraph (A).

           *       *       *       *       *       *       *

          (5) Authority of the secretary to prohibit persons 
        from serving as loan originators.--In any cease and 
        desist proceeding under paragraph (1), the [Director] 
        Bureau may issue an order to prohibit, conditionally or 
        unconditionally, and permanently or for such period of 
        time as the [Director] Bureau shall determine, any 
        person who has violated this title or regulations 
        thereunder, from acting as a loan originator if the 
        conduct of that person demonstrates unfitness to serve 
        as a loan originator.
  (d) Authority of the Secretary To Assess Money Penalties.--
          (1) In general.--The [Director] Bureau may impose a 
        civil penalty on a loan originator operating in any 
        State which is subject to a licensing system 
        established by the [Director] Bureau under section 
        1508, if the [Director] Bureau finds, on the record 
        after notice and opportunity for hearing, that such 
        loan originator has violated or failed to comply with 
        any requirement of this title or any regulation 
        prescribed by the [Director] Bureau under this title or 
        order issued under subsection (c).

           *       *       *       *       *       *       *


SEC. 1516. REPORTS AND RECOMMENDATIONS TO CONGRESS.

  (a) Annual Reports.--Not later than 1 year after the date of 
enactment of this title, and annually thereafter, the 
[Director] Bureau shall submit a report to Congress on the 
effectiveness of the provisions of this title, including 
legislative recommendations, if any, for strengthening consumer 
protections, enhancing examination standards, streamlining 
communication between all stakeholders involved in residential 
mortgage loan origination and processing, and establishing 
performance based bonding requirements for mortgage originators 
or institutions that employ such brokers.
  (b) Legislative Recommendations.--Not later than 6 months 
after the date of enactment of this title, the [Director] 
Bureau shall make recommendations to Congress on legislative 
reforms to the Real Estate Settlement Procedures Act of 1974, 
that the [Director] Bureau deems appropriate to promote more 
transparent disclosures, allowing consumers to better shop and 
compare mortgage loan terms and settlement costs.

SEC. 1517. STUDY AND REPORTS ON DEFAULTS AND FORECLOSURES.

  (a) Study Required.--The [Director] Bureau shall conduct an 
extensive study of the root causes of default and foreclosure 
of home loans, using as much empirical data as is available.
  (b) Preliminary Report to Congress.--Not later than 6 months 
after the date of enactment of this title, the [Director] 
Bureau shall submit to Congress a preliminary report regarding 
the study required by this section.
  (c) Final Report to Congress.--Not later than 12 months after 
the date of enactment of this title, the [Director] Bureau 
shall submit to Congress a final report regarding the results 
of the study required by this section, which shall include any 
recommended legislation relating to the study, and 
recommendations for best practices and for a process to provide 
targeted assistance to populations with the highest risk of 
potential default or foreclosure.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 3513 OF TITLE 44, UNITED STATES CODE

Sec. 3513. Director review of agency activities; reporting; agency 
                    response

  (a) * * *

           *       *       *       *       *       *       *

  (c) Comparable Treatment.--Notwithstanding any other 
provision of law, the Director shall treat or review a rule or 
order prescribed or proposed by the [Director of the Bureau] 
Bureau of Consumer Financial Protection on the same terms and 
conditions as apply to any rule or order prescribed or proposed 
by the Board of Governors of the Federal Reserve System.

                             MINORITY VIEWS

    Replacing the Director of the Consumer Financial Protection 
Bureau (CFPB or Bureau) with a five-member commission is a 
blatant attempt to stymie the functioning of the agency and 
empower regulated entities to exercise more influence over 
CFPB's decision-making. A commission would make the Bureau less 
accountable to Congress and other stakeholders not enhance its 
accountability. By increasing bureaucracy, the bill would stall 
decision-making and could delay action on critical issues 
affecting consumers.
    The Dodd-Frank Wall Street Reform and Consumer Financial 
Protection (Dodd-Frank) Act already includes several provisions 
designed to ensure that myriad stakeholder views are 
incorporated into the Bureau's decision making process. 
Specifically, Section 1100G of the Dodd-Frank Act mandates the 
Bureau seek out input from small businesses, Section 
1022(b)(2)(B) mandates that the Bureau consult with other 
prudential bank regulators and Section 1014 requires the Bureau 
to solicit the views of a Consumer Advisory Board to ensure the 
Bureau is informed of emerging practices in the consumer 
financial products or services industry, including trends, 
concerns and other relevant information.
    In fact, the Bureau has already shown a willingness to 
incorporate stakeholder feedback into its decision-making 
process. Examples of this include the balanced approach the 
Bureau has taken in addressing concerns raised by industry 
participants in both its remittance and mortgage rules.
    Furthermore, replacing the Director of the Bureau with a 
five-member commission would be inconsistent with the 
leadership structures of the Office of the Comptroller of the 
Currency (OCC) and Federal Housing Finance Agency (FHFA), both 
of which are run by single directors. While some, but not all, 
financial regulators are governed by multi-member commissions, 
these agencies lack many of the accountability and consultation 
requirements to which the CFPB must adhere.

                                   Maxine Waters.
                                   Stephen F. Lynch.
                                   Ruben Hinojosa.
                                   Keith Ellison.
                                   David Scott.
                                   Michael E. Capuano.
                                   Carolyn B. Maloney.
                                   Kysten Sinema.
                                   Joyce Beatty.
                                   Bill Foster.
                                   Daniel Kildee.
                                   Al Green.
                                   James A. Himes.
                                   Denny Heck.
                                   Gregory W. Meeks.
                                   Gwen Moore.
                                   Terri Swell.
                                   Wm. Lacy Clay.
                                   Patrick Murphy.
                                   Ed Perlutter.
                                   Emanuel Cleaver.
                                   Brad Sherman.