Senate Introduces Exam Fairness Legislation Similar to House Bill
Both bills would require the federal financial institution agency to provide the final exam report to the financial institution not later than 60 days after either the exit interview unless another agreement is reached. It would also allow the financial institution to request the information used during the exam that resulted in a material supervisory determination. The legislation applies to federal examinations only.
In addition, H.R. 3461 and S. 2160 would direct the Federal Financial Federal Financial Institutions Examination Council (FFIEC) to establish an Office of Examination Ombudsman to receive and investigate complaints concerning exams, exam practices or reports. The Ombudsman would hold periodic meetings, review exam procedures for adherence to FFIEC standards and report to Congress on its findings. The bills would also establish financial institutions' right to appeal to an administrative law judge.Further, the legislation requires federal agencies to establish and apply identical definitions and reporting requirements for non-accrual loans. NASCUS is monitoring the bills and continues to provide feedback on the legislation to the appropriate committees of jurisdiction.