12 U.S.C. § 5603 — Review, report, and program with respect

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 Page 2006 TITLE 12—BANKS AND BANKING § 5611 (3) recommendations for regulations to en- sure the appropriate protection of such con- sumers. (c) Program Not later than 2 years after the date of the submission of the report under subsection (b), the Bureau shall, consistent with part B, pro- pose regulations or otherwise establish a pro- gram to protect consumers who use exchange facilitators. (d) Exchange facilitator defined In this section, the term ‘‘exchange facilitator’’ means a person that— (1) facilitates, for a fee, an exchange of like kind property by entering into an agreement with a taxpayer by which the exchange facilitator acquires from the taxpayer the con- tractual rights to sell the taxpayer’s relin- quished property and transfers a replacement property to the taxpayer as a qualified inter- mediary (within the meaning of Treasury Reg- ulations section 1.1031(k)–1(g)(4)) or enters into an agreement with the taxpayer to take title to a property as an exchange accommodation titleholder (within the meaning of Revenue Procedure 2000–37) or enters into an agreement with a taxpayer to act as a qualified trustee or qualified escrow holder (within the meaning of Treasury Regulations section 1.1031(k)–1(g)(3)); (2) maintains an office for the purpose of so- liciting business to perform the services de- scribed in paragraph (1); or (3) advertises any of the services described in paragraph (1) or solicits clients in printed pub- lications, direct mail, television or radio ad- vertisements, telephone calls, facsimile trans- missions, or other electronic communications directed to the general public for purposes of providing any such services. (Pub. L. 111–203, title X, § 1079, July 21, 2010, 124 Stat. 2077.) SUBCHAPTER VI—FEDERAL RESERVE SYSTEM PROVISIONS § 5611. Liquidity event determination (a) Determination and written recommendation (1) Determination request The Secretary may request the Corporation and the Board of Governors to determine whether a liquidity event exists that warrants use of the guarantee program authorized under section 5612 of this title. (2) Requirements of determination Any determination pursuant to paragraph (1) shall— (A) be written; and (B) contain an evaluation of the evidence that— (i) a liquidity event exists; (ii) failure to take action would have se- rious adverse effects on financial stability or economic conditions in the United States; and (iii) actions authorized under section 5612 of this title are needed to avoid or mitigate potential adverse effects on the United States financial system or eco- nomic conditions. (b) Procedures Notwithstanding any other provision of Fed- eral or State law, upon the determination of both the Corporation (upon a vote of not fewer than 2⁄3 of the members of the Corporation then serving) and the Board of Governors (upon a vote of not fewer than 2⁄3 of the members of the Board of Governors then serving) under sub- section (a) that a liquidity event exists that warrants use of the guarantee program author- ized under section 5612 of this title, and with the written consent of the Secretary— (1) the Corporation shall take action in ac- cordance with section 5612(a) of this title; and (2) the Secretary (in consultation with the President) shall take action in accordance with section 5612(c) of this title. (c) Documentation and review (1) Documentation The Secretary shall— (A) maintain the written documentation of each determination of the Corporation and the Board of Governors under this section; and (B) provide the documentation for review under paragraph (2). (2) GAO review The Comptroller General of the United States shall review and report to Congress on any determination of the Corporation and the Board of Governors under subsection (a), in- cluding— (A) the basis for the determination; and (B) the likely effect of the actions taken. (d) Report to Congress On the earlier of the date of a submission made to Congress under section 5612(c) of this title, or within 30 days of the date of a deter- mination under subsection (a), the Secretary shall provide written notice of the determina- tion of the Corporation and the Board of Gov- ernors to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Com- mittee on Financial Services of the House of Representatives, including a description of the basis for the determination. (Pub. L. 111–203, title XI, § 1104, July 21, 2010, 124 Stat. 2120.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Subchapter effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 5612. Emergency financial stabilization (a) In general Upon the written determination of the Cor- poration and the Board of Governors under sec- tion 5611 of this title, the Corporation shall cre- ate a widely available program to guarantee ob- ligations of solvent insured depository institu- tions or solvent depository institution holding companies (including any affiliates thereof) dur- ing times of severe economic distress, except that a guarantee of obligations under this sec- tion may not include the provision of equity in any form.