Page 6 - 2017 Spring Visit issue resources_Neat

Spring Government Relations Summit Page 6.

 Health Savings Account  Privacy
 High-Cost Mortgages  Producer Licensing Modernization
 Hiring / Recruiting  QRM/Risk Retention
 Identity Theft  Qualified Mortgage Points & Fees
 Interchange  Regulation R (formerly Regulation B)
 Lease Accounting  Regulatory Burden
 Legal Entity Identifier  Regulatory Capital
 Lender-Placed Insurance  2008 RESPA Reform Regulation
 Liquidity  Securities Activities
 Loan Originator Compensation  Security in Electronic Banking
 Margin  Servicing
 Municipal Adviser Registration  Small Business Access to Capital
 Mutual Institution Policy  Tax Refund Fraud
 Non-Deliverable Forwards  Terrorism Risk Insurance Act
 Non Resident Alien Bank Deposit Interest  TILA-RESPA Integration - Mortgage Disclosure
Payment Reporting Reform
 Overdraft Protection Programs  Trust Tax
 Patent Reform  Unfair and Deceptive Acts and Practices
 Payments Systems  Volcker Rule
 Prepaid Cards

J:\WP\GOVAFRS-\Washington Visits\2017\2017 Spring Visit issue resources.docx

1 U.S. House Financial Services Committee Chairman Hensarling’s CHOICE Act Summary

CHOICE Act 2.0: A leaked memo which originated from Rep. Hensarling, HFSC Chairman, outlines planned
changes to the version of the CHOICE Act in the last Congress. Per the memo, CHOICE Act 2.0, should be
introduced in Congress soon and would retain and restructure the CFPB.

Under CHOICE Act 2.0, the CFPB would be headed by a single director who would be removable by the
President at-will. This structure stands in contrast to CHOICE Act 1.0, which would have turned the CFPB into a
five-member bipartisan commission. CHOICE Act 2.0’s proposed CFPB structure would be in line with the PHH
v. CFPB holding which has been stayed pending en banc review. The proposed revisions in the leaked memo
side step the brewing fight with Senate Democrats who are against a multi-member bipartisan commission. An
executive director, removable at will by the President might, indeed, be the preferred option of a President of
either party. More recently members of HFSC trusted by Hensarling have suggested again that it be headed by
a commission. The outcome for CHOICE Act 2.0 is uncertain.

CHOICE Act 2.0 would outright repeal a number of Dodd-Frank provisions relating to the CFPB, including the
CFPB’s UDAAP, supervisory, and market monitoring authorities; the CFPB’s consumer education function; and
the CFPB’s research function. The CFPB consumer complaint database would be eliminated. CHOICE Act 2.0
would also strengthen existing statutory language to make clear that the CFPB’s jurisdiction does not include
entities regulated by either the CFTC or SEC. Rulemaking authority would be limited to the 18 statutes listed in
Title X of DFA.

Many of these changes go further than those in CHOICE Act 1.0. For example, the 2015-16 version would have
retained the CFPB’s supervisory authority (raising the benchmark from $10B to $50B) and would have retained
the consumer complaint database (while requiring verification of complaints before publication). We expect that
the provisions of CHOICE Act 1.0 that would have subjected the CFPB to Congressional appropriations will be
retained in CHOICE Act 2.0 even though the leaked memo is silent on this point.