,,ii  #aac? ,,congress  #a/ ,session    
,s4 #gbg  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,april #ae1 #bjac ,mr4 
,moran 7= himself & ,mr4 ,man*97        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to improve ! exam9ation (      
depository in/itutions1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,f9ancial ,in/itutions     
,exam9ation ,fairness & ,re=m ,act4  #b4
 ,timel9ess ( exam9ation reports ,!     
,f$]al ,f9ancial ,in/itutions           
,exam9ation ,c\ncil ,act ( #aigh 7#ab   
,u4,s4,c4 #ccja et seq47 is am5d$ by    
add+ at ! end ! foll[+3  #ajab4         
,timel9ess ( exam9ation reports  7a7 ,9 
g5]al  7#a7 ,f9al exam9ation report ,a  
,f$]al f9ancial in/itutions regulatory  
ag5cy %all provide a f9al exam9ation    
report to a f9ancial in/itution n lat]  
?an #fj days aft] ! lat] (--  7,a7 !    
exit int]view = an exam9ation ( !       
in/itution2 or  7,b7 ! provision (      

additional in=mation by ! in/itution    
relat+ to ! exam9ation4  7#b7 ,exit     
int]view ,if a f9ancial in/itution is n 
subject to a resid5t exam9] program1 !  
exit int]view %all occur n lat] ?an !   
end ( ! #i-mon? p]iod beg9n+ on !       
comm5cem5t ( ! exam9ation1 except t su* 
p]iod may be ext5d$ by ! ,f$]al f9ancial
 in/itutions regulatory ag5cy by provid+
 writt5 notice to ! in/itution & !      
,(fice ( ,exam9ation ,ombudsman describ+
 ) p>ticul>ity ! reasons t a long] p]iod
 is ne$$ to complete ! exam9ation4  7b7 
,exam9ation mat]ials ,^u ! reque/ ( a   
f9ancial in/itution1 ! ,f$]al f9ancial  
in/itutions regulatory ag5cy %all       
include ) ! f9al report "u ?is section  
an app5dix li/+ all exam9ation or o!r   
factual in=mation reli$ ^u by ! ag5cy 9 
support ( a mat]ial sup]visory          
det]m9ation4  4  #c4 ,exam9ation /&>ds  
7a7 ,9 g5]al ,! ,f$]al ,f9ancial        
,in/itutions ,exam9ation ,c\ncil ,act ( 
#aigh 7#ab ,u4,s4,c4 #ccja et seq471 z  
am5d$ by ?is ,act1 is am5d$ by add+ at !

 end ! foll[+3  #ajac4 ,exam9ation /&>ds
  7a7 ,9 g5]al ,9 ! exam9ation (        
f9ancial in/itutions--  7#a7 a comm]cial
 loan %all n be plac$ 9 non-accrual     
/atus solely because ! collat]al = su*  
loan has det]iorat$ 9 value2  7#b7 a    
modifi$ or re/ructur$ comm]cial loan    
%all be remov$ f non-accrual /atus if ! 
borr[] demon/rates ! ability to p]=m on 
su* loan ov] a maximum p]iod ( #f mon?s1
 except t ) respect to loans on a       
qu>t]ly1 semiannual1 or long] repaym5t  
s*$ule su* p]iod %all be a maximum ( #c 
consecutive repaym5t p]iods2  7#c7 a new
 appraisal on a p]=m+ comm]cial loan    
%all n be requir$ unless an advance (   
new funds is involv$2 &  7#d7 9         
classify+ a comm]cial loan 9 :i* !re has
 be5 det]ioration 9 collat]al value1 !  
am\nt to be classifi$ %all be ! portion 
( ! defici5cy relat+ to ! decl9e 9      
collat]al value & repaym5t capacity ( ! 
borr[]4  7b7 ,well capitaliz$           
in/itutions ,! ,f$]al f9ancial          
in/itutions regulatory ag5cies may n    

require a f9ancial in/itution t is well 
capitaliz$ to raise additional capital 9
 lieu ( an action prohibit$ "u          
subsection 7a74  7c7 ,consi/5t loan     
classifications ,! ,f$]al f9ancial      
in/itutions regulatory ag5cies %all     
develop & apply id5tical def9itions &   
report+ requirem5ts = non-accrual loans4
  4  7b7 ,def9ition ( mat]ial sup]visory
 det]m9ation ,section #cji7;f77#a77;,a7 
( ! ,riegle ,community ,developm5t &    
,regulatory ,improvem5t ,act ( #aiid    
7#ab ,u4,s4,c4 #dhjf7;f77#a77;,a77 is   
am5d$--  7#a7 9 clause 7ii71 by /rik+ & 
at ! end2 &  7#b7 by ins]t+ aft] clause 
7iii7 ! foll[+3  7iv7 any issue         
specifically li/$ 9 an exam report z a  
matt] requir+ att5tion by ! in/itution's
 managem5t or bo>d ( directors2 &  4    
#d4 ,exam9ation ,ombudsman  7a7 ,9 g5]al
 ,! ,f$]al ,f9ancial ,in/itutions       
,exam9ation ,c\ncil ,act ( #aigh 7#ab   
,u4,s4,c4 #ccja et seq471 z am5d$ by ?is
 ,act1 is am5d$ by add+ at ! end !      
foll[+3  #ajad4 ,(fice ( ,exam9ation    

,ombudsman  7a7 ,e/abli%m5t ,!re is     
e/abli%$ 9 ! ,c\ncil an ,(fice (        
,exam9ation ,ombudsman4  7b7 ,head (    
(fice ,!re is e/abli%$ ! position ( !   
,ombudsman1 :o %all s]ve z ! head ( !   
,(fice ( ,exam9ation ,ombudsman1 & :o   
%all be hir$ sep>ately by ! ,c\ncil &   
%all be indep5d5t f any memb] ag5cy ( ! 
,c\ncil4  7c7 ,/aff+ ,! ,ombudsman is   
au?oriz$ to hire /aff to support !      
activities ( ! ,(fice ( ,exam9ation     
,ombudsman4  7d7 ,duties ,! ,ombudsman  
%all--  7#a7 receive &1 at !            
,ombudsman's discretion1 inve/igate     
compla9ts f f9ancial in/itutions1 _!    
repres5tatives1 or ano!r entity act+ on 
behalf ( su* in/itutions1 conc]n+       
exam9ations1 exam9ation practices1 or   
exam9ation reports2  7#b7 hold meet+s1  
at lea/ once e ?ree mon?s & 9 locations 
design$ to enc\rage p>ticipation f all  
sections ( ! ,unit$ ,/ates1 ) f9ancial  
in/itutions1 _! repres5tatives1 or ano!r
 entity act+ on behalf ( su*            
in/itutions1 to discuss exam9ation      

proc$ures1 exam9ation practices1 or     
exam9ation policies2  7#c7 review       
exam9ation proc$ures ( ! ,f$]al f9ancial
 in/itutions regulatory ag5cies to      
ensure t ! writt5 exam9ation policies ( 
^? ag5cies are be+ foll[$ 9 practice &  
adh]e to ! /&>ds = consi/5cy e/abli%$ by
 ! ,c\ncil2  7#d7 conduct a cont9u+ &   
regul> program ( exam9ation quality     
assurance = all exam9ation types        
conduct$ by ! ,f$]al f9ancial           
in/itutions regulatory ag5cies2  7#e7   
process any sup]visory appeal initiat$  
"u section #ajae or section #cji7;e7 ( !
 ,riegle ,community ,developm5t &       
,regulatory ,improvem5t ,act ( #aiid2 & 
7#f7 report annually to ! ,committee on 
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives1 ! ,committee on ,bank+1
 ,h\s+1 & ,urban ,affairs ( ! ,s5ate1 & 
! ,c\ncil1 on ! reviews c>ri$ out       
pursuant to p>agraphs 7#c7 & 7#d71      
includ+ compliance ) ! requirem5ts set  
=? 9 section #ajab reg>d+ timel9ess (   
exam9ation reports1 & ! ,c\ncil's       

recomm5dations = improvem5ts 9          
exam9ation proc$ures1 practices1 &      
policies4  7e7 ,confid5tiality ,!       
,ombudsman %all keep confid5tial all    
meet+s1 discussions1 & in=mation provid$
 by f9ancial in/itutions4  4  7b7       
,def9ition ,section #ajjc ( ! ,f$]al    
,f9ancial ,in/itutions ,exam9ation      
,c\ncil ,act ( #aigh 7#ab ,u4,s4,c4     
#ccjb7 is am5d$--  7#a7 9 p>agraph 7#b71
 by /rik+ & at ! end2  7#b7 9 p>agraph  
7#c71 by add+ & at ! end2 &  7#c7 by    
add+ at ! end ! foll[+3  7#d7 ! t]m     
,ombudsman means ! ,ombudsman e/abli%$  
"u section #ajad4  4  #e4 ,"r to appeal 
be=e an indep5d5t adm9i/rative law judge
 ,! ,f$]al ,f9ancial ,in/itutions       
,exam9ation ,c\ncil ,act ( #aigh 7#ab   
,u4,s4,c4 #ccja et seq471 z am5d$ by ?is
 ,act1 is am5d$ by add+ at ! end !      
foll[+3  #ajae4 ,"r to appeal be=e an   
indep5d5t adm9i/rative law judge  7a7 ,9
 g5]al ,a f9ancial in/itution %all h !  
"r to appeal a mat]ial sup]visory       
det]m9ation conta9$ 9 a f9al report (   

exam9ation4  7b7 ,notice  7#a7 ,tim+ ,a 
f9ancial in/itution seek+ an appeal "u  
?is section %all file a writt5 notice ) 
! ,ombudsman )9 #fj days aft] receiv+ ! 
f9al report or exam9ation t is ! subject
 ( su* appeal4  7#b7 ,id5tification (   
det]m9ation ,! writt5 notice %all       
id5tify ! mat]ial sup]visory det]m9ation
 t is ! subject ( ! appeal1 & a /atem5t 
( ! reasons :y ! in/itution believes t !
 det]m9ation is incorrect or %\ld       
o!rwise be modifi$4  7#c7 ,in=mation to 
be provid$ to in/itution ,any in=mation 
reli$ ^u by ! ag5cy 9 ! f9al report t is
 n 9 ! possession ( ! f9ancial          
in/itution may be reque/$ by ! f9ancial 
in/itution & %all be deliv]$ promptly by
 ! ag5cy to ! f9ancial in/itution4  7c7 
,he>+ be=e indep5d5t adm9i/rative law   
judge  7#a7 ,9 g5]al ,! ,ombudsman %all 
det]m9e ! m]its ( ! appeal on ! record1 
aft] an opportunity = a he>+ be=e an    
indep5d5t adm9i/rative law judge4  7#b7 
,he>+ proc$ures ,if a he>+ is reque/$ by
 ! f9ancial in/itution1 ! he>+ %all--   

7,a7 take place n lat] ?an #fj days aft]
 ! notice ( ! appeal 0 receiv$ by !     
,ombudsman2 &  7,b7 be conduct$ pursuant
 to ! proc$ures set =? "u sections #eef 
& #eeg ( title #e1 ,unit$ ,/ates ,code4 
7#c7 ,judge recomm5dation2 /&>d ( review
 ,9 any he>+ "u ?is subsection--  7,a7 !
 adm9i/rative law judge %all recomm5d to
 ! ,ombudsman :at det]m9ation %\ld be   
made2 &  7,b7 9 mak+ su* recomm5dation1 
! adm9i/rative law judge %all n def] to 
! op9ions ( ! exam9] or ag5cy1 b %all   
indep5d5tly det]m9e ! appropriat5ess ( !
 ag5cy's decision bas$ ^u ! relevant    
/atutes1 regulations1 & o!r appropriate 
guidance4  7d7 ,f9al decision ,a        
decision by ! ,ombudsman on an appeal "u
 ?is section %all--  7#a7 be made n lat]
 ?an #fj days aft] ! record has be5     
clos$2 &  7#b7 be f9al ag5cy action1 &  
%all b9d ! ag5cy ^: sup]visory          
det]m9ation 0 ! subject ( ! appeal & !  
f9ancial in/itution mak+ ! appeal4  7e7 
,report ,! ,ombudsman %all report       
annually to ! ,committee on ,f9ancial   

,s]vices ( ! ,h\se ( ,repres5tatives1 ! 
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate on actions tak5 on  
appeals "u ?is section1 includ+ ! types 
( issues t f9ancial in/itutions h       
appeal$ & ! results ( ^? appeals4 ,9 no 
case %all su* a report conta9 in=mation 
ab\t individual f9ancial in/itutions or 
any confid5tial or privileg$ in=mation  
%>$ by f9ancial in/itutions4  7f7       
,retaliation prohibit$ ,a ,f$]al        
f9ancial in/itutions regulatory ag5cy   
may n--  7#a7 retaliate aga9/ a f9ancial
 in/itution1 includ+ s]vice provid]s1 or
 any in/itution-affiliat$ p>ty1 =       
ex]cis+ appellate rights "u ?is section2
 or  7#b7 delay or d5y any ag5cy action 
t w\ld b5efit a f9ancial in/itution or  
any in/itution-affiliat$ p>ty on ! basis
 t an appeal "u ?is section is p5d+ "u  
?is section4  4  #f4 ,additional        
am5dm5ts  7a7 ,riegle ,community        
,developm5t & ,regulatory ,improvem5t   
,act ( #aiid ,section #cji ( ! ,riegle  
,community ,developm5t & ,regulatory    

,improvem5t ,act ( #aiid 7#ab ,u4,s4,c4 
#dhjf7 is am5d$--  7#a7 9 subsection    
7a71 by ins]t+ aft] appropriate ,f$]al  
bank+ ag5cy ! foll[+3 1 ! ,bureau (     
,consum] ,f9ancial ,protection12  7#b7 9
 subsection 7b7--  7,a7 9 p>agraph 7#b71
 by /rik+ ! appellant f retaliation by  
ag5cy exam9]s & ins]t+ ! insur$         
depository in/itution or insur$ cr$it   
union f retaliation by an ag5cy ref]r$  
to 9 subsection 7a72  7,b7 by r$esignat+
 p>agraphs 7#a7 & 7#b7 z subp>agraphs   
7,a7 & 7,b71 respectively1 & adju/+ !   
m>g9s accord+ly2  7,c7 by /rik+ ,9      
e/abli%+ & ins]t+ ! foll[+3  7#a7 ,9    
g5]al ,9 e/abli%+  2 &  7,d7 by add+ at 
! end ! foll[+3  7#b7 ,retaliation ,=   
purposes ( ?is subsection & subsection  
7e71 retaliation includes delay+        
consid]ation (1 or )hold+ approval (1   
any reque/1 notice1 or application t    
o!rwise w\ld h be5 approv$1 b = !       
ex]cise ( ! in/itution's or cr$it       
union's rights "u ?is section4  2 &     
7#c7 9 subsection 7e77#b7--  7,a7 9     

subp>agraph 7,b71 by /rik+ & at ! end2  
7,b7 9 subp>agraph 7,c71 by /rik+ !     
p]iod & ins]t+ 2 &2 &  7,c7 by add+ at !
 end ! foll[+3  7,d7 ensure t           
appropriate safegu>ds exi/ = protect+ ! 
insur$ depository in/itution or insur$  
cr$it union f retaliation by any ag5cy  
ref]r$ to 9 subsection 7a7 = ex]cis+ its
 rights "u ?is subsection4  4  7b7      
,f$]al ,deposit ,insurance ,act ,section
 #ah7x7 ( ! ,f$]al ,deposit ,insurance  
,act 7#ab ,u4,s4,c4 #ahbh7x77 is am5d$  
by ins]t+ ! ,bureau ( ,consum] ,f9ancial
 ,protection1 be=e any ,f$]al bank+     
ag5cy ea* place t t]m appe>s4  7c7      
,f$]al ,cr$it ,union ,act ,section      
#bje7;j7 ( ! ,f$]al ,cr$it ,union ,act  
7#ab ,u4,s4,c4 #aghe7;j77 is am5d$ by   
ins]t+ ! ,bureau ( ,consum] ,f9ancial   
,protection1 be=e ! ,adm9i/ration ea*   
place t t]m appe>s4  7d7 ,te*nical      
corrections ,! ,f$]al ,f9ancial         
,in/itutions ,exam9ation ,c\ncil ,act ( 
#aigh 7#ab ,u4,s4,c4 #ccja et seq47 is  
am5d$--  7#a7 9 section #ajjc7a7 7#ab   

,u4,s4,c4 #ccjb7a771 by /rik+ ! ,(fice (
 ,?rift ,sup]vision12 &  7#b7 9 section 
#ajje 7#ab ,u4,s4,c4 #ccjd71 by /rik+   
,"o-fif? & ins]t+ ,"o-f\r?4