12 U.S.C. § 5601 — Remittance transfers

Page 2004 TITLE 12—BANKS AND BANKING § 5601 1 So in original. Probably should be ‘‘Financial Literacy and Education Commission’’. 2 So in original. Probably should be ‘‘their’’. 3 See References in Text note below. (ii) streamlined employment application processes; (iii) the provision of timely notification of the status of employment applications to applicants; and (iv) the collection of information to measure indicators of hiring effectiveness. (c) Expiration The reporting requirement under subsection (b) shall terminate 5 years after July 21, 2010. (d) Rule of construction Nothing in this section may be construed to affect— (1) a collective bargaining agreement, as that term is defined in section 7103(a)(8) of title 5, that is in effect on July 21, 2010; or (2) the rights of employees under chapter 71 of title 5. (e) Participation in examinations In order to prepare the Bureau to conduct ex- aminations under section 5515 of this title upon the designated transfer date, the Bureau and the applicable prudential regulator may agree to in- clude, on a sampling basis, examiners on exami- nations of the compliance with Federal con- sumer financial law of institutions described in section 5515(a) of this title conducted by the pru- dential regulators prior to the designated trans- fer date. (Pub. L. 111–203, title X, § 1067, July 21, 2010, 124 Stat. 2055.) PART G—REGULATORY IMPROVEMENTS § 5601. Remittance transfers (a) Omitted (b) Automated clearinghouse system (1) Expansion of system The Board of Governors shall work with the Federal reserve banks and the Department of the Treasury to expand the use of the auto- mated clearinghouse system and other pay- ment mechanisms for remittance transfers to foreign countries, with a focus on countries that receive significant remittance transfers from the United States, based on— (A) the number, volume, and size of such transfers; (B) the significance of the volume of such transfers relative to the external financial flows of the receiving country, including— (i) the total amount transferred; and (ii) the total volume of payments made by United States Government agencies to beneficiaries and retirees living abroad; (C) the feasibility of such an expansion; and (D) the ability of the Federal Reserve Sys- tem to establish payment gateways in dif- ferent geographic regions and currency zones to receive remittance transfers and route them through the payments systems in the destination countries. (2) Report to Congress Not later than one calendar year after July 21, 2010, and on April 30 biennially thereafter during the 10-year period beginning on July 21, 2010, the Board of Governors shall submit a re- port to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Com- mittee on Financial Services of the House of Representatives on the status of the auto- mated clearinghouse system and its progress in complying with the requirements of this subsection. The report shall include an anal- ysis of adoption rates of International ACH Transactions rules and formats, the efficacy of increasing adoption rates, and potential rec- ommendations to increase adoption. (c) Expansion of financial institution provision of remittance transfers (1) Provision of guidelines to institutions Each of the Federal banking agencies and the National Credit Union Administration shall provide guidelines to financial institu- tions under the jurisdiction of the agency re- garding the offering of low-cost remittance transfers and no-cost or low-cost basic con- sumer accounts, as well as agency services to remittance transfer providers. (2) Assistance to Financial Literacy Commis- sion 1 As part of its 2 duties as members of the Fi- nancial Literacy and Education Commission, the Bureau, the Federal banking agencies, and the National Credit Union Administration shall assist the Financial Literacy and Edu- cation Commission in executing the Strategy for Assuring Financial Empowerment (or the ‘‘SAFE Strategy’’), as it relates to remit- tances. (d) Omitted (e) Report on feasibility of and impediments to use of remittance history in calculation of credit score Before the end of the 365-day period beginning on July 21, 2010, the Director shall submit a re- port to the President, the Committee on Bank- ing, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives regarding— (1) the manner in which the remittance his- tory of a consumer could be used to enhance the credit score of the consumer; (2) the current legal and business model bar- riers and impediments that impede the use of the remittance history of the consumer to en- hance the credit score of the consumer; and (3) recommendations on the manner in which maximum transparency and disclosure to consumers of exchange rates for remittance transfers subject to this title 3 and the amend- ments made by this title 3 may be accom- plished, whether or not such exchange rates are known at the time of origination or pay- ment by the consumer for the remittance transfer, including disclosure to the sender of the actual exchange rate used and the amount of currency that the recipient of the remit- Page 2005 TITLE 12—BANKS AND BANKING § 5603 1 See References in Text note below. 2 So in original. Sentence does not appear to be complete. tance transfer received, using the values of the currency into which the funds were exchanged, as contained in sections 1693o–1(a)(2)(D) 3 and 1693o–1(a)(3) of title 15 (as amended by this sec- tion). (Pub. L. 111–203, title X, § 1073, July 21, 2010, 124 Stat. 2060.) Editorial Notes REFERENCES IN TEXT This title, where footnoted in subsec. (e)(3), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and re- pealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. Section 1693o–1(a)(2) of title 15, referred to in subsec. (e)(3), does not contain a subpar. (D). CODIFICATION Section is comprised of section 1073 of Pub. L. 111–203. Subsecs. (a) and (d) of section 1073 of Pub. L. 111–203 en- acted section 1693o–1 of Title 15, Commerce and Trade, amended section 1757 of this title and sections 1693, 1693b, 1693p, 1693q, and 1693r of Title 15, and amended provisions set out as a note under section 1693 of Title 15. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Part effective 1 day after July 21, 2010, except as oth- erwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 5602. Reverse mortgage study and regulations (a) Study Not later than 1 year after the designated transfer date, the Bureau shall conduct a study on reverse mortgage transactions. (b) Regulations (1) In general If the Bureau determines through the study required under subsection (a) that conditions or limitations on reverse mortgage trans- actions are necessary or appropriate for ac- complishing the purposes and objectives of this title,1 including protecting borrowers with respect to the obtaining of reverse mort- gage loans for the purpose of funding invest- ments, annuities, and other investment prod- ucts and the suitability of a borrower in ob- taining a reverse mortgage for such purpose.2 (2) Identified practices and integrated disclo- sures The regulations prescribed under paragraph (1) may, as the Bureau may so determine— (A) identify any practice as unfair, decep- tive, or abusive in connection with a reverse mortgage transaction; and (B) provide for an integrated disclosure standard and model disclosures for reverse mortgage transactions, consistent with sec- tion 4302(d),1 that combines the relevant dis- closures required under the Truth in Lend- ing Act (15 U.S.C. 1601 et seq.) and the Real Estate Settlement Procedures Act [12 U.S.C. 2601 et seq.], with the disclosures required to be provided to consumers for Home Equity Conversion Mortgages under section 1715z–20 of this title. (c) Rule of construction This section shall not be construed as limiting the authority of the Bureau to issue regulations, orders, or guidance that apply to reverse mort- gages prior to the completion of the study re- quired under subsection (a). (Pub. L. 111–203, title X, § 1076, July 21, 2010, 124 Stat. 2075.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsec. (b)(1), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and re- pealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. Section 4302(d), referred to in subsec. (b)(2)(B), prob- ably was a reference to section 4302(d) of the House En- grossed version of H.R. 4173, 111th Congress. A later version of H.R. 4173 was enacted as Pub. L. 111–203, and as so enacted, doesn’t contain a section 4302. However, section 1032(f) of Pub. L. 111–203, which is classified to section 5532(f) of this title, contains substantially simi- lar provisions to the section 4302(d) that was probably referred to. The Truth in Lending Act, referred to in subsec. (b)(2)(B), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables. The Real Estate Settlement Procedures Act, referred to in subsec. (b)(2)(B), probably means the Real Estate Settlement Procedures Act of 1974, Pub. L. 93–533, Dec. 22, 1974, 88 Stat. 1724, which is classified principally to chapter 27 (§ 2601 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2601 of this title and Tables. § 5603. Review, report, and program with respect to exchange facilitators (a) Review The Director shall review all Federal laws and regulations relating to the protection of con- sumers who use exchange facilitators for trans- actions primarily for personal, family, or house- hold purposes. (b) Report Not later than 1 year after the designated transfer date, the Director shall submit to Con- gress a report describing— (1) recommendations for legislation to en- sure the appropriate protection of consumers who use exchange facilitators for transactions primarily for personal, family, or household purposes; (2) recommendations for updating the regu- lations of Federal departments and agencies to ensure the appropriate protection of such con- sumers; and