Strengthening Financial Sector Oversight

Summary#

This bill changes how some financial entities and their outside service providers are regulated and examined.

It amends the Federal Credit Union Act (section 206A) with small wording changes: one word change in subsection (a)(1), an added phrase requiring notice to the Board "in a manner and method prescribed by the Board" in subsection (c)(2), and it removes subsection (f). The bill also adds a new section (1329) to the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. That new section says when a regulated entity or the Office of Finance has work done for it by contract or otherwise, the Director of the Federal Housing Finance Agency (FHFA) can regulate and examine that work the same way as if the entity did the work itself on its own premises. It also requires the regulated entity or Office of Finance to notify the Director within 30 days after making the service contract or after the service provider begins the activity. The new section says states may still exercise their own powers over such persons or entities.

The bill was introduced on September 2, 2026 by Representative Bill Foster and referred to the House Committee on Financial Services.

What it means for you#

• If you manage or work for a credit union, this bill makes small changes to notice and examination language in the Federal Credit Union Act. It also removes one subsection of section 206A.
• If you are a service provider to a regulated entity covered by the FHFA (for example, certain housing finance entities or the Office of Finance), the FHFA Director may examine and regulate the work you do as if the regulated entity were doing it itself on its premises.
• Regulated entities and the Office of Finance must notify the FHFA Director within 30 days after making a service contract or after a service provider begins performing the activity.
• State authorities keep their rights to exercise state powers over persons or entities covered by the new FHFA section.

Expenses#

No publicly available information on costs, budget effects, or estimated expenses is included in the bill text or metadata provided.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.