GovTrack’s Bill Summary
We don’t have a summary available yet.
The bill’s title was written by its sponsor. H.R. stands for House of Representatives bill.
This bill was introduced in a previous session of Congress and was passed by the House on July 21, 2011 but was never passed by the Senate.
Last updated Jul 22, 2011.
|Referred to Committee|
|Reported by Committee|
To amend the Dodd-Frank Wall Street Reform and ConsumerProtection Act to strengthen the review authorityof the Financial Stability Oversight Council of regulationsissued by the Bureau of Consumer Financial Protection,to rescind the unobligated funding for the FHARefinance Program and to terminate the program, andfor other purposes.
GovTrack gets most information from THOMAS, which is updated generally one day after events occur. Activity since the last update may not be reflected here.
The committee chair determines whether a bill will move past the committee stage.
No summaries available.
Click a format for a citation suggestion:
H.R. 1315--112th Congress: Consumer Financial Protection Safety and Soundness Improvement Act of 2011. (2011). In www.GovTrack.us. Retrieved March 9, 2014, from http://www.govtrack.us/congress/bills/112/hr1315
“H.R. 1315--112th Congress: Consumer Financial Protection Safety and Soundness Improvement Act of 2011.” www.GovTrack.us. 2011. March 9, 2014 <http://www.govtrack.us/congress/bills/112/hr1315>
|title=H.R. 1315 (112th)
|accessdate=March 9, 2014
|author=112th Congress (2011)
|date=April 1, 2011
|quote=Consumer Financial Protection Safety and Soundness Improvement Act of 2011
We don’t have a summary available yet.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.
The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.
This summary can be found at http://www.gop.gov/bill/112/1/hr1315.
According to the Committee on Financial Services: The Dodd-Frank Act created the CFPB as an independent agency within the Federal Reserve. Therefore, there is virtually no oversight of this powerful agency. Its status within the Fed effectively precludes presidential oversight. The Fed is statutorily prohibited from “intervening” in CFPB affairs. And the CFPB budget is not subject to congressional oversight. Unlike virtually all other independent agencies, the CFPB is led by a single Director—an unelected, unaccountable bureaucrat—who has sweeping powers to ban certain financial services or products that are “unfair, deceptive or abusive.” While “unfair” and “deceptive” have been defined in other regulatory contexts, the term “abusive” is largely undefined, granting the CFPB Director inordinate discretion over the financial products and services that consumers and small businesses may obtain from their bank or other credit provider.
The Secretary of the Treasury currently has interim authority to carry out certain CFPB authorities under Section 1066 of the Dodd-Frank Act. The Treasury Secretary's authority under Section 1066(a) terminates when a CFPB Director is confirmed by the Senate, rather than on the designated transfer date of July 21, 2011. According to a joint report from the Inspectors General of the Treasury and the Federal Reserve Board, released January 10, 2011 (the IG report), if the CFPB does not have a Senate-confirmed Director by July 21, 2011, it may continue to operate under the Treasury Secretary's 1066(a) authority.
Under the Dodd-Frank Act, certain regulatory functions and authorities are to be transferred from the federal financial regulators that currently have those authorities (i.e. Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), and the Department of Housing and Urban Development (HUD)) to the CFPB on July 21, 2011. After July 21, 2011—and until a Director is confirmed—the Treasury Secretary will be permitted to carry out the functions transferred from the current federal financial regulators to the CFPB. By contrast, the Treasury Secretary's authority under 1066(b) to provide administrative services necessary to support the Bureau terminates on July 21, 2011.
In addition to the transferred functions, the Dodd-Frank Act confers upon the CFPB newly-established federal consumer financial regulatory authorities, such as the authority to prohibit unfair, deceptive, or abusive practices in connection with consumer financial products or services. According to the IG Report, the Treasury Secretary's authority under Section 1066(a) does not extend to these newly-established authorities. Hence, if there is no Senate-confirmed Director by the designated transfer date, the Treasury Secretary would not be permitted to exercise the CFPB's newly established authorities, including those established under Sections 1024 and 1022 of the Dodd-Frank Act.
Further, Title I of the Dodd-Frank Act establishes the FSOC, and Section 112(a) charges the FSOC with identifying ‘‘risks to the financial stability of the United States that could arise from the material financial distress or failure, or ongoing activities, of large, interconnected bank holding companies or nonbank financial companies, or that could arise outside the financial services marketplace.’’ Ten voting members and five non-voting members comprise the FSOC. The ten voting members are the heads of nine federal financial regulatory agencies, including the CFPB, and an independent member with insurance expertise. In addition to the CFPB, the other agencies represented are the Department of the Treasury, the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), the Commodity Futures Trading Commission (CFTC), the Federal Housing Finance Agency (FHFA), and the National Credit Union Administration (NCUA).
Section 1023 of the Dodd-Frank Act allows the FSOC to review, stay, and block CFPB regulations if two-thirds of the FSOC membership ‘‘decides . . . that the regulation or provision would put the safety and soundness of the United States banking system or the stability of the financial system of the United States at risk.’’ Accordingly, a rule that severely threatens the viability of smaller financial institutions but does not put the entire financial system at risk would not meet the standard. The change proposed in H.R. 1315 ensures that a CFPB rule does not impair the safety and soundness of a U.S. financial institution, regardless of its size.
Additionally, under current law, the FSOC Chair may stay the effectiveness of a regulation at the request of a single FSOC member for 90 days. If the FSOC Chair does not stay the rule, the FSOC must vote within 45 days of the date the petition is filed. If the FSOC stays the rule, the vote must be taken before the stay elapses. If a vote is not taken within these time frames, the petition is deemed to have been dismissed.
H.R. 1315 would amend Section 1023 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111–203) which addresses the Financial Stability Oversight Council’s (FSOC) review and oversight of Consumer Financial Protection Bureau (CFPB) rules and regulations that may undermine the safety and soundness of U.S. financial institutions.
The bill would make four changes to the FSOC’s review procedures: (1) it would lower the threshold required to set aside CFPB’s proposed regulations from a two-thirds vote of the FSOC’s voting membership to a simple majority, excluding the Director of the CFPB; (2) it would clarify that the FSOC must set aside any CFPB regulation that is inconsistent with the safe and sound operations of U.S. financial institutions; (3) it would eliminate the 45-day time limit for the FSOC to review and vote on CFPB regulations; and (4) it would require that all FSOC meetings be open to the public whenever it decides to stay or set aside a CFPB regulation.
Additionally, the bill would establish a bi-partisan, five-member Commission (consisting of a Chairman and four additional members) to carry out all of the duties that would otherwise fall to the Director of the CFPB. Commission members would be appointed by the President, confirmed by the Senate, and would serve five-year terms.
The bill would also amend Section 1062 of the Dodd-Frank Act to delay any further transfer of powers to the CFPB until the later of the following: (1) July 21, 2011; or (2) the date on which the Chair of the Commission of the Bureau is confirmed by the Senate.
According to the Congressional Budget Office (CBO), enacting H.R. 1315 would increase direct spending by $71 million over the 2012-2021 period (about 2 percent of CBO’s estimate of the 11-year costs for the bureau). Those additional costs represent expenses for salaries, benefits, and overhead for new positions that would be created by the provisions of the bill that create the five-member panel. Because the bill would affect direct spending, pay-as-you-go procedures apply. CBO estimates that the bill would not affect revenues or spending subject to appropriation.
The House Democratic Caucus does not provide summaries of bills.
So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.
We’ll be looking for a source of summaries from the other side in the meanwhile.
The bill contains the following citations to other parts of U.S. law:
Slip laws refer to enacted bills and joint resolutions in their original form as enacted by Congress, that is, before other laws amend them. Slip laws are cited as “Public Law XXX-YYY”, where XXX is the number of the Congress in which the bill or resolution was introduced.
The United States Code is the compilation of general and permanent laws enacted by Congress. Laws that are not permanent in nature, law that affect a single individual, family, or small group, regulations, case law, state law, and local law do not appear in the United States Code.