§4517 — Title 12 Banks and Banking | U.S. Code

Summary

The Director must do an on-site exam every year of each regulated entity to check its financial safety and soundness. The Director may also order extra exams when needed. The Director picks examiners and can hire examiners from the Comptroller of the Currency, the Federal Reserve Board, or the FDIC and pay them from the Federal Housing Enterprises Oversight Fund. The Agency must have an Inspector General appointed under section 403(a) of title 5. Examiners have the same authority and must follow the same rules and penalties as examiners at Federal Reserve banks. The Director may bring in temporary technical experts and must note their help in the exam record. The Director also has the powers under section 4641 for these exams. The rule covers jobs like examiner, accountant, economist, and specialists in financial markets and technology in the competitive service. The Director may appoint people to those jobs using excepted-service appointment rules, even if competitive-service rules would normally apply. The Director must create an Office of the Ombudsman by regulation to handle complaints and appeals from regulated entities and people who do business with them, and that regulation must describe the office’s duties and authority.

Title 12, §4517

Banks and Banking — Source: USLM XML via OLRC

(a)The Director shall annually conduct an on-site examination under this section of each regulated entity to determine the condition of the regulated entity for the purpose of ensuring its financial safety and soundness.

(b)In addition to annual examinations under subsection (a), the Director may conduct an examination under this section of a regulated entity whenever the Director determines that an examination is necessary or appropriate.

(c)The Director shall appoint examiners to conduct examinations under this section. The Director may contract with the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation for the services of examiners to conduct examinations under this section. The Director shall reimburse such agencies for any costs of providing examiners from amounts available in the Federal Housing Enterprises Oversight Fund.

(d)There shall be within the Agency an Inspector General, who shall be appointed in accordance with section 403(a) of title 5.

(e)The Director and each examiner shall have the same authority and each examiner shall be subject to the same disclosures, prohibitions, obligations, and penalties as are applicable to examiners employed by the Federal Reserve banks.

(f)The Director may obtain the services of any technical experts the Director considers appropriate to provide temporary technical assistance relating to examinations to the Director, officers, and employees of the Office. The Director shall describe, in the record of each examination, the nature and extent of any such temporary technical assistance.

(g)In connection with examinations under this section, the Director shall have the authority provided under section 4641 of this title.

(h)(1)This section shall apply with respect to any position of examiner, accountant, economist, and specialist in financial markets and in technology at the Agency, with respect to supervision and regulation of the regulated entities, that is in the competitive service.

(2)The Director may appoint candidates to any position described in paragraph (1)—

(A)in accordance with the statutes, rules, and regulations governing appointments in the excepted service; and

(B)notwithstanding any statutes, rules, and regulations governing appointments in the competitive service.

(i)The Director shall establish, by regulation, an Office of the Ombudsman within the Agency, which shall be responsible for considering complaints and appeals, from any regulated entity and any person that has a business relationship with a regulated entity, regarding any matter relating to the regulation and supervision of such regulated entity by the Agency. The regulation issued by the Director under this subsection shall specify the authority and duties of the Office of the Ombudsman.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (d). Pub. L. 117–286 substituted “section 403(a) of title 5.” for “section 3(a) of the Inspector General Act of 1978.” 2010—Subsec. (c). Pub. L. 111–203 substituted “or the Federal Deposit Insurance Corporation” for “the Federal Deposit Insurance Corporation, or the Director of the Office of Thrift Supervision”. 2008—Subsec. (a). Pub. L. 110–289, § 1105(a)(1), substituted “regulated entity” for “enterprise” in two places. Subsec. (b). Pub. L. 110–289, § 1105(a)(2), inserted “of a regulated entity” after “under this section” and substituted “or appropriate” for “to determine the condition of an enterprise for the purpose of ensuring its financial safety and soundness”. Subsec. (c). Pub. L. 110–289, § 1105(a)(3), inserted “to conduct examinations under this section” after “services of examiners”. Subsecs. (d) to (f). Pub. L. 110–289, § 1105(a)(4), (5), added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. Former subsec. (f) redesignated (g). Subsec. (g). Pub. L. 110–289, § 1153(b)(1)(A), which directed technical amendment in subsec. (f) to reference in original act which appears in text as reference to section 4641 of this title, was executed by making the amendment in subsec. (g), to reflect the probable intent of Congress and the redesignation of subsec. (f) as (g) by Pub. L. 110–289, § 1105(a)(4). See below. Pub. L. 110–289, § 1105(a)(4), redesignated subsec. (f) as (g). Subsec. (h). Pub. L. 110–289, § 1105(b), added subsec. (h). Subsec. (i). Pub. L. 110–289, § 1105(e), added subsec. (i).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress.

§4517 Examinations