,,ii #aafth ,,congress #ast ,session ,s4 #bfdi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #ba1 #bjai,mr4 ,moran 7for himself1 ,mr4 ,cornyn1 ,mr4 ,inhofe1 and ,mr4 ,manchin7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,federal ,financial ,institutions ,examination ,council ,act of #aigh to improve the examination of depository institutions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,financial ,institutions ,examination ,fairness and ,reform ,act4 #b4 ,timeliness of examination reports ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is amended by adding at the end the following3 #ajab4 ,timeliness of examination reports 7a7 ,in general 7#a7 ,final examination report ,a ,federal financial institutions regulatory agency shall provide a final examination report to a financial institution not later than #fj days after the later of-- 7,a7 the exit interview for an examination of the institution2 or 7,b7 the provision of additional information by the institution relating to the examination4 7#b7 ,exit interview ,if a financial institution is not subject to a resident examiner program1 the exit interview shall occur not later than the end of the #i-month period beginning on the commencement of the examination1 except that such period may be extended by the ,federal financial institutions regulatory agency by providing written notice to the institution and the ,director describing with particularity the reasons that a longer period is needed to complete the examination4 7b7 ,examination materials ,upon the request of a financial institution1 the ,federal financial institutions regulatory agency shall include with the final report an appendix listing all examination or other factual information relied upon by the agency in support of a material supervisory determination4 4 #c4 ,independent examination review ,director 7a7 ,in general ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq471 as amended by section #b of this ,act1 is further amended by adding at the end the following3 #ajac4 ,office of independent examination review 7a7 ,establishment ,there is established in the ,council an ,office of ,independent ,examination ,review4 7b7 ,head of office ,there is established the position of the ,independent ,examination ,review ,director1 as the head of the ,office of ,independent ,examination ,review4 ,the ,director shall be appointed by the ,federal ,financial ,institutions ,examination ,council4 7c7 ,staffing ,the ,director is authorized to hire staff to support the activities of the ,office of ,independent ,examination ,review4 7d7 ,duties ,the ,director shall-- 7#a7 receive and1 at the discretion of the ,director1 investigate complaints from financial institutions1 their representatives1 or another entity acting on behalf of such institutions1 concerning examinations1 examination practices1 or examination reports2 7#b7 hold meetings1 at least once every three months and in locations designed to encourage participation from all sections of the ,united ,states1 with financial institutions1 their representatives1 or another entity acting on behalf of such institutions1 to discuss examination procedures1 examination practices1 or examination policies2 7#c7 review examination procedures of the ,federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency established by the ,council2 7#d7 conduct a continuing and regular program of examination quality assurance for all examination types conducted by the ,federal financial institutions regulatory agencies2 7#e7 adjudicate any supervisory appeal initiated under section #ajad2 and 7#f7 report annually to the ,committee on ,financial ,services of the ,house of ,representatives1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 and the ,council1 on the reviews carried out pursuant to paragraphs 7#c7 and 7#d71 including compliance with the requirements set forth in section #ajab regarding timeliness of examination reports1 and the ,council's recommendations for improvements in examination procedures1 practices1 and policies4 7e7 ,confidentiality ,the ,director shall keep confidential all meetings1 discussions1 and information provided by financial institutions4 4 7b7 ,definition ,section #ajjc of the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccjb7 is amended-- 7#a7 in paragraph 7#b71 by striking and at the end2 7#b7 in paragraph 7#c71 by adding and at the end2 and 7#c7 by adding at the end the following3 7#d7 the term ,director means the ,independent ,examination ,review ,director established under section #ajac7;a7 and 7b74 4 #d4 ,right to independent review of material supervisory determinations ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh1 as amended by sections #b and #c of this ,act1 is further amended by adding at the end the following3 #ajad4 ,right to independent review of material supervisory determinations 7a7 ,in general ,a financial institution shall have the right to obtain an independent review of a material supervisory determination contained in a final report of examination4 7b7 ,notice 7#a7 ,timing ,a financial institution seeking review of a material supervisory determination under this section shall file a written notice with the ,director within #fj days after receiving the final report of examination that is the subject of such review4 7#b7 ,identification of determination ,the written notice shall identify the material supervisory determination that is the subject of the independent examination review1 and a statement of the reasons why the institution believes that the determination is incorrect or should otherwise be modified4 7#c7 ,information to be provided to institution ,any information relied upon by the agency in the final report that is not in the possession of the financial institution may be requested by the financial institution and shall be delivered promptly by the agency to the financial institution4 7c7 ,right to hearing 7#a7 ,in general ,the ,director shall-- 7,a7 determine the merits of the appeal on the record2 or 7,b7 at the election of the financial institution1 refer the appeal to an administrative law judge to conduct a hearing pursuant to the procedures set forth under sections #eef and #eeg of title #e1 ,united ,states ,code1 which shall take place not later than #fj days after the petition for review is received by the ,director4 7#b7 ,timing of decision ,an administrative law judge conducting a hearing under paragraph 7#a77;,b7 shall issue a proposed decision to the ,director based upon the record established at the hearing4 7#c7 ,standard of review ,in any hearing under this subsection-- 7,a7 neither the administrative law judge nor the ,director shall defer to the opinions of the examiner or agency1 but shall independently determine the appropriateness of the agency's decision based upon the relevant statutes1 regulations1 other appropriate guidance1 and evidence presented at the hearing4 7d7 ,final decision ,a decision by the ,director on an independent review under this section shall-- 7#a7 be made not later than #fj days after the record has been closed2 and 7#b7 be deemed final agency action and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review4 7e7 ,right to judicial review ,a financial institution shall have the right to petition for review of the decision of the ,director under this section by filing a petition for review not later than #fj days after the date on which the decision is made in the ,united ,states ,court of ,appeals for the ,district of ,columbia ,circuit or the ,circuit in which the financial institution is located4 7f7 ,report ,the ,director shall report annually to the ,committee on ,financial ,services of the ,house of ,representatives1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate on actions taken under this section1 including the types of issues that the ,director has reviewed and the results of those reviews4 ,in no case shall such a report contain information about individual financial institutions or any confidential or privileged information shared by financial institutions4 7g7 ,retaliation prohibited ,a ,federal financial institutions regulatory agency may not-- 7#a7 retaliate against a financial institution1 including service providers1 or any institution-affiliated party1 for exercising appellate rights under this section2 or 7#b7 delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that an appeal under this section is pending under this section4 4 #e4 ,additional amendments 7a7 ,regulator appeals process1 ombudsman1 and alternative dispute resolution 7#a7 ,in general ,section #cji of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dhjf7 is amended-- 7,a7 in subsection 7a71 by inserting after appropriate ,federal banking agency the following3 1 the ,bureau of ,consumer ,financial ,protection12 7,b7 in subsection 7b7-- 7i7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b7 and indenting appropriately2 7ii7 in the matter preceding subparagraph 7,a7 7as redesignated71 by striking ,in establishing and inserting 7#a7 ,in general4--,in establishing2 7iii7 in paragraph 7#a77;,b7 7as redesignated71 by striking the appellant from retaliation by agency examiners and inserting the insured depository institution or insured credit union from retaliation by an agency referred to in subsection 7a72 and 7iv7 by adding at the end the following3 7#b7 ,retaliation ,for purposes of this subsection and subsection 7e71 retaliation includes delaying consideration of1 or withholding approval of1 any request1 notice1 or application that otherwise would have been approved1 but for the exercise of the institution's or credit union's rights under this section4 2 7,c7 in subsection 7e77#b7-- 7i7 in subparagraph 7,b71 by striking and at the end2 7ii7 in subparagraph 7,c71 by striking the period and inserting 2 and2 and 7iii7 by adding at the end the following3 7,d7 ensure that appropriate safeguards exist for protecting the insured depository institution or insured credit union from retaliation by any agency referred to in subsection 7a7 for exercising its rights under this subsection4 2 and 7,d7 in subsection 7f77#a77;,a7-- 7i7 in clause 7ii71 by striking 2 and and inserting a semicolon2 7ii7 in clause 7iii71 by striking 2 and and inserting a semicolon2 and 7iii7 by adding at the end the following3 7iv7 any issue specifically listed in an exam report as a matter requiring attention by the institution's management or board of directors2 and 7v7 any suspension or removal of an institution's status as eligible for expedited processing of applications1 requests1 notices1 or filings on the grounds of a supervisory or compliance concern1 regardless of whether that concern has been cited as a basis for a material supervisory determination or matter requiring attention in an examination report1 provided that the conduct at issue did not involve violation of any criminal law2 and 4 7#b7 ,effect ,nothing in this subsection affects the authority of an appropriate ,federal banking agency or the ,national ,credit ,union ,administration ,board to take enforcement or other supervisory action4 7b7 ,federal ,credit ,union ,act ,section #bje7;j7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #aghe7;j77 is amended by inserting the ,bureau of ,consumer ,financial ,protection1 before the ,administration each place that term appears4 7c7 ,federal ,financial ,institutions ,examination ,council ,act ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq471 as amended by sections #b through #d of this ,act1 is further amended-- 7#a7 in section #ajjc 7#ab ,u4,s4,c4 #ccjb7 by striking paragraph 7#a7 and inserting the following3 7#a7 the term ,federal financial institutions regulatory agencies-- 7,a7 means the ,office of the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration2 and 7,b7 includes the ,bureau of ,consumer ,financial ,protection for purposes of sections #ajab through #ajad2 2 and 7#b7 in section #ajje 7#ab ,u4,s4,c4 #ccjd71 by striking ,one-fifth and inserting ,one-fourth4