FAIR Exams Act

The bill would amend the Federal Financial Institutions Examination Council Act of 1978 to impose new procedural requirements on federal bank regulators. Examiners would have 270 days to complete an examination, must conduct an exit interview within 30 days of finishing, and must deliver a final written report within 90 days of that exit interview. Upon request, agencies would have to provide a list of all examination materials relied upon in support of any material supervisory determination — a formal finding about a bank's condition or practices. A separate process would let institutions seek written guidance from regulators on planned activities, with agencies required to acknowledge requests within 30 days and issue written determinations within 60 days.

Most substantively, the bill would establish an Office of Independent Examination Review headed by a three-member Board (presidentially appointed, Senate-confirmed) tasked with adjudicating appeals of material supervisory determinations. Institutions could appeal within 60 days of a final report, elect a formal hearing, and obtain documents and sworn testimony. The Board would apply de novo review — without deference to the original examiner — and issue binding written decisions. Those decisions would be subject to judicial review in the U.S. Court of Appeals. Agencies could not retaliate against institutions for exercising these appeal rights.

Banks, credit unions, and other financial institutions subject to federal examination by the OCC, Federal Reserve, FDIC, NCUA, and CFPB would gain new procedural rights and appeal mechanisms. Senior management at those institutions would participate in newly required exit interviews. The five federal financial regulatory agencies would collectively fund the new Office of Independent Examination Review through annual FFIEC-levied assessments.

Financial institutions disputing examination conclusions — which can drive capital requirements, restrict activities, or affect regulatory standing — would gain an independent forum with a de novo standard that does not defer to the original examiner. Binding deadlines on agencies would reduce prolonged examination uncertainty. Regulated institutions would also gain a formal, time-limited channel for seeking regulatory guidance before undertaking new activities.

The five federal financial regulatory agencies would collectively fund the new Office of Independent Examination Review through annual assessments levied by the FFIEC Council — one-fifth per agency — with additional mid-year levies permitted. The three-member Board would issue rules establishing formal hearing procedures, hold quarterly meetings around the country to gather input from institutions, and conduct ongoing examination quality assurance. When an institution files an appeal, the Board would review the record or conduct a hearing within 60 days, close the record, and issue a binding written decision within 60 more days. The Board would report annually to the House Financial Services and Senate Banking committees.