Collapse to view only § 4803. Streamlining of regulatory requirements

§ 4801.
Incorporated definitions
Unless otherwise specifically provided in this chapter, for purposes of this chapter—
(1) the terms “appropriate Federal banking agency”, “Federal banking agencies”, “insured depository institution”, and “State bank supervisor” have the same meanings as in section 1813 of this title; and
(2) the term “insured credit union” has the same meaning as in section 1752 of this title.
(Pub. L. 103–325, title III, § 301, Sept. 23, 1994, 108 Stat. 2214.)
§ 4802.
Administrative consideration of burden with new regulations
(a)
Agency considerations
In determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions, each Federal banking agency shall consider, consistent with the principles of safety and soundness and the public interest—
(1) any administrative burdens that such regulations would place on depository institutions, including small depository institutions and customers of depository institutions; and
(2) the benefits of such regulations.
(b)
Adequate transition period for new regulations
(1)
In general
New regulations and amendments to regulations prescribed by a Federal banking agency which impose additional reporting, disclosures, or other new requirements on insured depository institutions shall take effect on the first day of a calendar quarter which begins on or after the date on which the regulations are published in final form, unless—
(A) the agency determines, for good cause published with the regulation, that the regulation should become effective before such time;
(B) the regulation is issued by the Board of Governors of the Federal Reserve System in connection with the implementation of monetary policy; or
(C) the regulation is required to take effect on a date other than the date determined under this paragraph pursuant to any other Act of Congress.
(2)
Early compliance

Any person who is subject to a regulation described in paragraph (1) may comply with the regulation before the effective date of the regulation.

(Pub. L. 103–325, title III, § 302, Sept. 23, 1994, 108 Stat. 2214.)
§ 4803.
Streamlining of regulatory requirements
(a)
Review of regulations; regulatory uniformity
During the 2-year period beginning on September 23, 1994, each Federal banking agency shall, consistent with the principles of safety and soundness, statutory law and policy, and the public interest—
(1)
conduct a review of the regulations and written policies of that agency to—
(A) streamline and modify those regulations and policies in order to improve efficiency, reduce unnecessary costs, and eliminate unwarranted constraints on credit availability;
(B) remove inconsistencies and outmoded and duplicative requirements; and
(C) with respect to regulations prescribed pursuant to section 1828(o) of this title, consider the impact that such standards have on the availability of credit for small business, residential, and agricultural purposes, and on low- and moderate-income communities;
(2) review the extent to which existing regulations require insured depository institutions and insured credit unions to produce unnecessary internal written policies and eliminate such requirements, where appropriate;
(3) work jointly with the other Federal banking agencies to make uniform all regulations and guidelines implementing common statutory or supervisory policies; and
(4) submit a joint report to the Congress at the end of such 2-year period detailing the progress of the agencies in carrying out this subsection.
(b)
Review of disclosures
The Board of Governors of the Federal Reserve System, in consultation with the consumer advisory council to such Board, consumers, representatives of consumers, lenders, and other interested persons, shall—
(1) review the regulations and written policies of the Board with respect to disclosures pursuant to the Truth in Lending Act [15 U.S.C. 1601 et seq.] with regard to variable-rate mortgages in order to simplify the disclosures, if necessary, and make the disclosures more meaningful and comprehensible to consumers;
(2) implement any necessary regulatory changes, consistent with applicable law; and
(3) not later than 2 years after completion of the review required by paragraph (1), submit a report to the Congress on the results of its actions taken in accordance with this subsection and any recommended legislative actions.
(Pub. L. 103–325, title III, § 303, Sept. 23, 1994, 108 Stat. 2215; Pub. L. 104–208, div. A, title II, § 2242, Sept. 30, 1996, 110 Stat. 3009–418.)
§ 4804.
Elimination of duplicative filings
The Federal banking agencies shall work jointly—
(1) to eliminate, to the extent practicable, duplicative or otherwise unnecessary requests for information in connection with applications or notices to the agencies; and
(2) to harmonize, to the extent practicable, any inconsistent publication and public notice requirements.
(Pub. L. 103–325, title III, § 304, Sept. 23, 1994, 108 Stat. 2215.)
§ 4805.
Call report simplification
(a)
Modernization of call report filing and disclosure system
In order to reduce the administrative requirements pertaining to bank reports of condition, savings association financial reports, and bank holding company consolidated and parent-only financial statements, and to improve the timeliness of such reports and statements, the Federal banking agencies shall—
(1)
work jointly to develop a system under which—
(A) insured depository institutions and their affiliates may file such reports and statements electronically; and
(B) the Federal banking agencies may make such reports and statements available to the public electronically; and
(2) not later than 1 year after September 23, 1994, report to the Congress and make recommendations for legislation that would enhance efficiency for filers and users of such reports and statements.
(b)
Uniform reports and simplification of instructions
The Federal banking agencies shall, consistent with the principles of safety and soundness, work jointly—
(1) to adopt a single form for the filing of core information required to be submitted under Federal law to all such agencies in the reports and statements referred to in subsection (a); and
(2) to simplify instructions accompanying such reports and statements and to provide an index to the instructions that is adequate to meet the needs of both filers and users.
(c)
Review of call report schedule
Each Federal banking agency shall—
(1) review the information required by schedules supplementing the core information referred to in subsection (b); and
(2) eliminate requirements that are not warranted for reasons of safety and soundness or other public purposes.
(Pub. L. 103–325, title III, § 307, Sept. 23, 1994, 108 Stat. 2217.)
§ 4805a.
Call report simplification
(a)
Modernization of call report filing and disclosure system
In order to reduce the administrative requirements pertaining to bank reports of condition, savings association financial reports, and bank holding company consolidated and parent-only financial statements, and to improve the timeliness of such reports and statements, the Federal banking agencies shall—
(1)
work jointly to develop a system under which—
(A) insured depository institutions and their affiliates may file such reports and statements electronically; and
(B) the Federal banking agencies may make such reports and statements available to the public electronically; and
(2) not later than 1 year after December 27, 2000, report to the Congress and make recommendations for legislation that would enhance efficiency for filers and users of such reports and statements.
(b)
Uniform reports and simplification of instructions
The Federal banking agencies shall, consistent with the principles of safety and soundness, work jointly—
(1) to adopt a single form for the filing of core information required to be submitted under Federal law to all such agencies in the reports and statements referred to in subsection (a); and
(2) to simplify instructions accompanying such reports and statements and to provide an index to the instructions that is adequate to meet the needs of both filers and users.
(c)
Review of call report schedule
Each Federal banking agency shall—
(1) review the information required by schedules supplementing the core information referred to in subsection (b); and
(2) eliminate requirements that are not warranted for reasons of safety and soundness or other public purposes.
(d)
Definition

In this section, the term “Federal banking agency” has the same meaning as in section 1813 of this title.

(Pub. L. 106–569, title XII, § 1211, Dec. 27, 2000, 114 Stat. 3035.)
§ 4806.
Regulatory appeals process, ombudsman, and alternative dispute resolution
(a)
In general

Not later than 180 days after September 23, 1994, each appropriate Federal banking agency and the National Credit Union Administration Board shall establish an independent intra-agency appellate process. The process shall be available to review material supervisory determinations made at insured depository institutions or at insured credit unions that the agency supervises.

(b)
Review process
In establishing the independent appellate process under subsection (a), each agency shall ensure that—
(1) any appeal of a material supervisory determination by an insured depository institution or insured credit union is heard and decided expeditiously; and
(2) appropriate safeguards exist for protecting the appellant from retaliation by agency examiners.
(c)
Comment period

Not later than 90 days after September 23, 1994, each appropriate Federal banking agency and the National Credit Union Administration Board shall provide public notice and opportunity for comment on proposed guidelines for the establishment of an appellate process under this section.

(d)
Agency ombudsman
(1)
Establishment required

Not later than 180 days after September 23, 1994, each Federal banking agency and the National Credit Union Administration Board shall appoint an ombudsman.

(2)
Duties of ombudsman
The ombudsman appointed in accordance with paragraph (1) for any agency shall—
(A) act as a liaison between the agency and any affected person with respect to any problem such party may have in dealing with the agency resulting from the regulatory activities of the agency; and
(B) assure that safeguards exist to encourage complainants to come forward and preserve confidentiality.
(e)
Alternative dispute resolution pilot program
(1)
In general

Not later than 18 months after September 23, 1994, each Federal banking agency and the National Credit Union Administration Board shall develop and implement a pilot program for using alternative means of dispute resolution of issues in controversy (hereafter in this section referred to as the “alternative dispute resolution program”) that is consistent with the requirements of subchapter IV of chapter 5 of title 5 if the parties to the dispute, including the agency, agree to such proceeding.

(2)
Standards
An alternative dispute resolution pilot program developed under paragraph (1) shall—
(A) be fair to all interested parties to a dispute;
(B) resolve disputes expeditiously; and
(C) be less costly than traditional means of dispute resolution, including litigation.
(3)
Independent evaluation
Not later than 18 months after the date on which a pilot program is implemented under paragraph (1), the Administrative Conference of the United States shall submit to the Congress a report containing—
(A) an evaluation of that pilot program;
(B) the extent to which the pilot programs meet the standards established under paragraph (2);
(C) the extent to which parties to disputes were offered alternative means of dispute resolution and the frequency with which the parties, including the agencies, accepted or declined to use such means; and
(D) any recommendations of the Conference to improve the alternative dispute resolution procedures of the Federal banking agencies and the National Credit Union Administration Board.
(4)
Implementation of program

At any time after completion of the evaluation under paragraph (3)(A), any Federal banking agency and the National Credit Union Administration Board may implement an alternative dispute resolution program throughout the agency, taking into account the results of that evaluation.

(5)
Coordination with existing agency ADR programs
(A)
Evaluation required

If any Federal banking agency or the National Credit Union Administration maintains an alternative dispute resolution program as of September 23, 1994, under any other provision of law, the Administrative Conference of the United States shall include such program in the evaluation conducted under paragraph (3)(A).

(B)
Multiple ADR programs

No provision of this section shall be construed as precluding any Federal banking agency or the National Credit Union Administration Board from establishing more than 1 alternative means of dispute resolution.

(f)
Definitions
For purposes of this section, the following definitions shall apply:
(1)
Material supervisory determinations
The term “material supervisory determinations”—
(A)
includes determinations relating to—
(i) examination ratings;
(ii) the adequacy of loan loss reserve provisions; and
(iii) loan classifications on loans that are significant to an institution; and
(B) does not include a determination by a Federal banking agency or the National Credit Union Administration Board to appoint a conservator or receiver for an insured depository institution or a liquidating agent for an insured credit union, as the case may be, or a decision to take action pursuant to section 1831o of this title or section 1790a of this title, as appropriate.
(2)
Independent appellate process

The term “independent appellate process” means a review by an agency official who does not directly or indirectly report to the agency official who made the material supervisory determination under review.

(3)
Alternative means of dispute resolution

The term “alternative means of dispute resolution” has the meaning given to such term in section 571 of title 5.

(4)
Issues in controversy
The term “issues in controversy” means—
(A) any final agency decision involving any claim against an insured depository institution or insured credit union for which the agency has been appointed conservator or receiver or for which a liquidating agent has been appointed, as the case may be;
(B) any final action taken by an agency in the agency’s capacity as conservator or receiver for an insured depository institution or by the liquidating agent appointed for an insured credit union; and
(C) any other issue for which the appropriate Federal banking agency or the National Credit Union Administration Board determines that alternative means of dispute resolution would be appropriate.
(g)
Effect on other authority

Nothing in this section shall affect the authority of an appropriate Federal banking agency or the National Credit Union Administration Board to take enforcement or supervisory action.

(Pub. L. 103–325, title III, § 309, Sept. 23, 1994, 108 Stat. 2218.)
§ 4807.
Time limit on agency consideration of completed applications
(a)
In general

Each Federal banking agency shall take final action on any application to the agency before the end of the 1-year period beginning on the date on which a completed application is received by the agency.

(b)
Waiver by applicant authorized

Any person submitting an application to a Federal banking agency may waive the applicability of subsection (a) with respect to such application at any time.

(Pub. L. 103–325, title III, § 343, Sept. 23, 1994, 108 Stat. 2238.)
§ 4808.
Revising regulatory requirements for transfers of all types of assets with recourse
(a)
Review and revision of regulations
(1)
In general
During the 180-day period beginning on September 23, 1994, each appropriate Federal banking agency shall, consistent with the principles of safety and soundness and the public interest—
(A) review the agency’s regulations and written policies relating to transfers of assets with recourse by insured depository institutions; and
(B) in consultation with the other Federal banking agencies, promulgate regulations that better reflect the exposure of an insured depository institution to credit risk from transfers of assets with recourse.
(2)
Regulations required

Before the end of the 180-day period beginning on September 23, 1994, each appropriate Federal banking agency shall prescribe the regulations developed pursuant to paragraph (1)(B).

(b)
Regulations required
(1)
In general

After the end of the 180-day period beginning on September 23, 1994, the amount of risk-based capital required to be maintained, under regulations prescribed by the appropriate Federal banking agency, by any insured depository institution with respect to assets transferred with recourse by such institution may not exceed the maximum amount of recourse for which such institution is contractually liable under the recourse agreement.

(2)
Exception for safety and soundness

The appropriate Federal banking agency may require any insured depository institution to maintain risk-based capital in an amount greater than the amount determined under paragraph (1), if the agency determines, by regulation or order, that such higher amount is necessary for safety and soundness reasons.

(c)
Coordination with section 1835(b) of this title

This section shall not be construed as superseding the applicability of section 1835(b) of this title.

(d)
Definitions

For purposes of this section, the terms “appropriate Federal banking agency”, “Federal banking agency”, and “insured depository institution” have the same meanings as in section 1813 of this title.

(Pub. L. 103–325, title III, § 350, Sept. 23, 1994, 108 Stat. 2242.)
§ 4809.
“Plain language” requirement for Federal banking agency rules
(a)
In general

Each Federal banking agency shall use plain language in all proposed and final rulemakings published by the agency in the Federal Register after January 1, 2000.

(b)
Report

Not later than March 1, 2001, each Federal banking agency shall submit to the Congress a report that describes how the agency has complied with subsection (a).

(c)
Definition

For purposes of this section, the term “Federal banking agency” has the meaning given that term in section 1813 of this title.

(Pub. L. 106–102, title VII, § 722, Nov. 12, 1999, 113 Stat. 1471.)