Title 12, Banks and BankingRelease 119-110

§5603 Review, Report, and Program with Respect to Exchange Facilitators

Title 12 › CHAPTER 53 — WALL STREET REFORM AND CONSUMER PROTECTION › SUBCHAPTER V — BUREAU OF CONSUMER FINANCIAL PROTECTION › Part G — Regulatory Improvements › § 5603

Last updated Sep 22, 2026|Official source

Summary

The Director must review all federal laws and rules that protect people who use exchange facilitators for mainly personal, family, or household deals. Within 1 year after the designated transfer date, the Director must send Congress a report with three things: suggested new laws, suggested updates to agency rules, and suggested new regulations to protect those consumers. Within 2 years after that report is sent, the Bureau must, consistent with part B, propose rules or set up a program to protect those consumers. An "exchange facilitator" is a person who helps arrange like‑kind property exchanges for a fee by taking rights or title and acting in roles such as a qualified intermediary, an exchange accommodation titleholder, or a qualified trustee/escrow holder. It also includes anyone who keeps an office to solicit that business or who advertises or solicits clients publicly by mail, phone, ads, or other electronic communications.

Full Legal Text

Title 12, §5603

Banks and Banking, Source: USLM XML via OLRC

(a)Review

The Director shall review all Federal laws and regulations relating to the protection of consumers who use exchange facilitators for transactions primarily for personal, family, or household purposes.

(b)Report

Not later than 1 year after the designated transfer date, the Director shall submit to Congress a report describing—

(1)recommendations for legislation to ensure the appropriate protection of consumers who use exchange facilitators for transactions primarily for personal, family, or household purposes;

(2)recommendations for updating the regulations of Federal departments and agencies to ensure the appropriate protection of such consumers; and

(3)recommendations for regulations to ensure the appropriate protection of such consumers.

(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, propose regulations or otherwise establish a program 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 contractual rights to sell the taxpayer’s relinquished property and transfers a replacement property to the taxpayer as a qualified intermediary (within the meaning of Treasury Regulations 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 soliciting business to perform the services described in paragraph (1); or

(3)advertises any of the services described in paragraph (1) or solicits clients in printed publications, direct mail, television or radio advertisements, telephone calls, facsimile transmissions, or other electronic communications directed to the general public for purposes of providing any such services.

Reference

Citations & Metadata

Citation

12 U.S.C. § 5603

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110