On June 7, 2016, House Republicans on the Financial Services Committee unveiled The Financial CHOICE Act, a plan to replace Dodd-Frank with pro-growth economic policies. The Financial CHOICE Act includes a bill introduced by U.S. Representative Lynn Westmoreland: H.R. 1941, the Financial Institutions Examination Fairness and Reform Act.
 
“Dodd-Frank was a knee-jerk reaction to our nation’s financial problems, and it’s only made it harder for Georgia’s community banks to recover,” stated Rep. Westmoreland. “Georgia has had 91 bank failures since the 2008 crash, leading the nation in closures. We need solutions that allow our banks to get back on track, without one-size-fits-all regulations hampering our local financial institution’s ability to lend and grow our communities.”
 
H.R. 1941, the Financial Institutions Examination Fairness and Reform Act, is bipartisan legislation that addresses three main concerns about the financial institution examination process of community banks and credit unions: the timeliness of examinations, adherence to examination standards, and the current appeals process. It provides greater clarity on the financial examination process for all financial institutions by ensuring there is a fair set of standards that both regulators and institutions are aware of and can abide by.
 
“I am proud that my legislation has been included in the Financial CHOICE Act so that Georgia’s banks can find relief from burdensome regulation and unnecessary Washington bureaucracy,” continued Westmoreland. “The Financial Institutions Examination Fairness and Reform Act and Financial CHOICE Act provide a better foundation for our community banks to regrow. It increases transparency and fairness, allows for fair examination appeals, provides better document production, and streamlines examinations. With improved stability and certainty, Georgia’s banks can get back to focusing on creating opportunity for investors, consumers, and entrepreneurs in our community.”
 
Specifically, H.R. 1941 would:

· Direct federal regulatory agencies to provide a final examination report to a financial institution no later than 60 days after the exit interview or the provision of additional information from the financial institution by the agency.

· Provide greater clarity for financial institution examiners by placing limited portions of the guidance by the Federal Financial Institutions Examinations Council on the real estate workouts into statute.

· Establish an Independent Examination Review Director at FFIEC to provide financial institutions with a new avenue to appeal a material supervisory determination. This new, more independent, appeals process calls for an Administrative Law Judge to determine the merits of an appeal and make recommendations to the Examination Review Director.

The Financial Institutions Examination Fairness and Reform Act passed the Financial Services Committee on July 29, 2015.