House BillHR 940Consumer Financial Protection BureauJudicial review and appeals
FAIR Exams Act
INTRO FEB 4· LAST ACTION JUL 25
READING
19MIN
COSPONSORS
10
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill matters to voters because it aims to make the regulation of financial institutions more efficient and transparent. Currently, banks can sometimes face lengthy examination processes or delays in getting clear answers from regulators, which can create uncertainty and slow down operations. By imposing deadlines on regulators, this bill seeks to reduce those delays, potentially helping banks plan better and resolve issues more quickly.
If this bill becomes law, it could lead to a more predictable regulatory environment for financial institutions, which proponents argue could foster economic stability. If it doesn't pass, the current regulatory examination and guidance processes would remain unchanged, meaning banks might continue to experience longer waits for exams, reports, and official interpretations. Ultimately, a more streamlined and accountable regulatory system for banks could impact the broader financial sector, affecting everything from lending practices to economic growth, though the direct impact on average consumers might be subtle.
KEY PROVISIONS
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PROVISION 01
Requires federal financial regulatory agencies to complete examinations of banks within 270 days and provide a final report within 90 days after the exit interview or additional information submission.
This provision aims to reduce delays in the regulatory process, ensuring banks receive timely feedback on their operations.
PROVISION 02
Mandates that agencies conduct an exit interview with bank management within 30 days of completing an examination and include a list of factual information used for key supervisory decisions in the final report if requested.
This promotes transparency and clear communication between regulators and financial institutions regarding examination findings.
PROVISION 03
Establishes deadlines for federal agencies to respond to financial institutions' written requests for official interpretations of laws, regulations, or accounting principles, or for non-objection to activities.
This provision speeds up the process for banks to get clear answers and approvals, reducing uncertainty in their operations.
PROVISION 04
Requires regulatory agencies to publish summaries of their determinations on requests for guidance on their websites, with confidential and identifying information redacted.
This increases public transparency regarding regulatory interpretations and decisions while protecting sensitive bank data.
PROVISION 05
Establishes an Office of Independent Examination Review within the Federal Financial Institutions Examination Council (FFIEC).
This creates an independent body to oversee and potentially review the examination process, enhancing accountability for regulators.
This bill matters to voters because it aims to make the regulation of financial institutions more efficient and transparent. Currently, banks can sometimes face lengthy examination processes or delays in getting clear answers from regulators, which can create uncertainty and slow down operations. By imposing deadlines on regulators, this bill seeks to reduce those delays, potentially helping banks plan better and resolve issues more quickly.
If this bill becomes law, it could lead to a more predictable regulatory environment for financial institutions, which proponents argue could foster economic stability. If it doesn't pass, the current regulatory examination and guidance processes would remain unchanged, meaning banks might continue to experience longer waits for exams, reports, and official interpretations. Ultimately, a more streamlined and accountable regulatory system for banks could impact the broader financial sector, affecting everything from lending practices to economic growth, though the direct impact on average consumers might be subtle.
KEY PROVISIONS
AI-extracted
high
Requires federal financial regulatory agencies to complete examinations of banks within 270 days and provide a final report within 90 days after the exit interview or additional information submission.
This provision aims to reduce delays in the regulatory process, ensuring banks receive timely feedback on their operations.
med
Mandates that agencies conduct an exit interview with bank management within 30 days of completing an examination and include a list of factual information used for key supervisory decisions in the final report if requested.
This promotes transparency and clear communication between regulators and financial institutions regarding examination findings.
high
Establishes deadlines for federal agencies to respond to financial institutions' written requests for official interpretations of laws, regulations, or accounting principles, or for non-objection to activities.
This provision speeds up the process for banks to get clear answers and approvals, reducing uncertainty in their operations.
med
Requires regulatory agencies to publish summaries of their determinations on requests for guidance on their websites, with confidential and identifying information redacted.
This increases public transparency regarding regulatory interpretations and decisions while protecting sensitive bank data.
high
Establishes an Office of Independent Examination Review within the Federal Financial Institutions Examination Council (FFIEC).
This creates an independent body to oversee and potentially review the examination process, enhancing accountability for regulators.
within 270 days of commencing, extendable with written notice
Complete any examination of a financial institution
not later than 90 days after the later of the exit interview or provision of additional material information
Provide a final examination report to a financial institution
within 30 days of completing an examination, extendable with written notice
Conduct an exit interview with the financial institution's senior management
not later than 30 days after receiving the request
Provide written notification to a financial institution of receipt of a request for permission or guidance, stating if all required information is present, or explaining missing information
during the 30-day period beginning on the date the financial institution receives the explanation of missing information
Financial institution may provide missing information for a request
not later than the end of the 60-day period beginning on the date the agency notifies the institution of receipt
Federal financial institutions regulatory agency makes a determination and provides written notice on a request (if initial request complete)
GLOSSARY
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Depository institution
A financial institution that accepts deposits from the public, such as banks, savings banks, and credit unions.
Federal financial institutions regulatory agency
Government bodies responsible for overseeing and supervising financial institutions, such as the Federal Reserve, FDIC, and OCC.
Examination
A comprehensive review conducted by a regulatory agency to assess a financial institution's financial health, compliance with laws, and risk management practices.
Exit interview
A meeting between regulators and a financial institution's senior management at the conclusion of an examination to discuss preliminary findings and potential issues.
Federal Financial Institutions Examination Council (FFIEC)
An interagency body that prescribes uniform principles, standards, and report forms for the federal examination of financial institutions.
Material supervisory determination
A significant conclusion or decision made by a regulatory agency during an examination that has important implications for a financial institution's operations or compliance.
Generally accepted accounting principles (GAAP)
ACTION TIMELINE
6 EVENTS
JUL 25, 25
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-216.
COMMITTEE
JUL 25, 25
Placed on the Union Calendar, Calendar No. 176.
CALENDARS
MAY 21, 25
Committee Consideration and Mark-up Session Held
COMMITTEE
MAY 21, 25
Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 17.
not later than the end of the 60-day period beginning on the date missing information is provided
Federal financial institutions regulatory agency makes a determination and provides written notice on a request (if missing information provided)
not later than the end of the 60-day period beginning on the end of the 30-day period for providing missing information
Federal financial institutions regulatory agency makes a determination and provides written notice on a request (if missing information not provided)
within 120 days after making a determination
Federal financial institutions regulatory agency to publish a summary of the determination on its public website
A common set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board (FASB) that companies must follow when compiling their financial statements.
