H.R. 1264 — Introduced in House

I 115th CONGRESS 1st Session H. R. 1264 IN THE HOUSE OF REPRESENTATIVES February 28, 2017Mr. Williams introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide an exemption from rules and regulations of the Bureau of Consumer Financial protection for community financial institutions, and for other purposes. 1. Short title This Act may be cited as the Community Financial Institution Exemption Act. 2. Exemption for community financial institutions Section 1022(b) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5512(b)) is amended— (1) in paragraph (3), by amending the heading to read as follows: General exemptions; (2) by redesignating paragraph (4) as paragraph (5); and (3) by inserting after paragraph (3) the following: (4) Specific exemption for community financial institutions (A) In general Community financial institutions shall be exempt from all rules and regulations issued by the Bureau. (B) Exception The Bureau may revoke an exemption provided under subparagraph (A) with respect to a specific rule or regulation and a specific class of community financial institutions if— (i) the Bureau makes a detailed, written finding that such class of community financial institutions has engaged in a pattern or practice of activities that have been detrimental to the interests of consumers and are of a type that the specific rule or regulation is intended to address; (ii) the Bureau consults with the Federal banking agencies with respect to such revocation; and (iii) each Federal banking agency provides the Bureau with a written notice stating that the Federal banking agency agrees with such revocation. (C) Effective date; effect on prior rules (i) Effective date This paragraph shall take effect with respect to rules and regulations issued or modified after the date of enactment of this paragraph. (ii) Effect on prior rules This paragraph shall not prohibit the Bureau from modifying a rule or regulation issued prior to the date of enactment of this paragraph with respect to community financial institutions if the effect of such modification is to expand a current exemption or to reduce the costs and the regulatory burden associated with complying with such rule or regulation. (D) Definitions For purposes of this paragraph: (i) Community financial institution The term community financial institution means an insured depository institution or credit union with less than $50,000,000,000 in consolidated assets. (ii) Federal banking agency The term Federal banking agency means the Board of Governors, the Office of the Comptroller of the Currency, the Corporation, and the National Credit Union Administration. .