Title 12 — Banks and BankingRelease 119-73not60

§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 Apr 3, 2026|Official source

Summary

The Director must review all federal laws and rules that protect people who use exchange facilitators for mostly 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 federal agencies’ rules, and suggested new regulations to better protect those consumers. Within 2 years after that report is sent, the Bureau must propose rules or set up a program, under part B, to protect these consumers. "Exchange facilitator" means (1) a person who, for a fee, helps a taxpayer do a like‑kind property exchange by taking contractual rights and transferring replacement property or acting as a qualified intermediary, titleholder, trustee, or escrow holder; (2) someone who keeps an office to solicit that business; or (3) someone who advertises or solicits the public by print, mail, TV, radio, phone, fax, or other electronic communications.

Full Legal Text

Title 12, §5603

Banks and Banking — Source: USLM XML via OLRC

(a)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)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)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)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

Apr 3, 2026

Release point: 119-73not60