usc 12 § 5516
Other banks, savings associations, and credit unions (BANKS AND BANKING (12 U.S.C.))
Operative Text
This section shall apply to any covered person that is— an insured depository institution with total assets of $10,000,000,000 or less; or an insured credit union with total assets of $10,000,000,000 or less. The Director may require reports from a person described in subsection (a), as necessary to support the role of the Bureau in implementing Federal consumer financial law, to support its examination activities under subsection (c), and to assess and detect risks to consumers and consumer financial markets. The Bureau shall, to the fullest extent possible, use— reports pertaining to a person described in subsection (a) that have been provided or required to have been provided to a Federal or State agency; and information that has been reported publicly. Nothing in this subsection may be construed as limiting the authority of the Director from requiring from a person described in subsection (a), as permitted under paragraph (1), information owned or under the control of such person, regardless of whether such information is maintained, stored, or processed by another person. The Bureau shall provide the Commissioner of Internal Revenue with any report of examination or related information identifying possible tax law noncompliance. The Bureau may, at its discretion, include examiners on a sampling basis of the examinations performed by the prudential regulator to assess compliance with the requirements of Federal consumer financial law of persons described in subsection (a). The prudential regulator shall— provide all reports, records, and documentation related to the examination process for any institution included in the sample referred to in paragraph (1) to the Bureau on a timely and continual basis; involve such Bureau examiner in the entire examination process for such person; and consider input of the Bureau concerning the scope of an examination, conduct of the examination, the contents of the examination report, the designation of matters requiring attention, and examination ratings. Except for requiring reports under subsection (b), the prudential regulator is authorized to enforce the requirements of Federal consumer financial laws and, with respect to a covered person described in subsection (a), shall have exclusive authority (relative to the Bureau) to enforce such laws. When the Bureau has reason to believe that a person described in subsection (a) has engaged in a material violation of a Federal consumer financial law, the Bureau shall notify the prudential regulator in writing and recommend appropriate action to respond. Upon receiving a recommendation under subparagraph (A), the prudential regulator shall provide a written response to the Bureau not later than 60 days thereafter. A service provider to a substantial number of persons described in subsection (a) shall be subject to the authority of the Bureau under to the same extent as if the Bureau were an appropriate Federal bank agency under . When conducting any examination or requiring any report from a service provider subject to this subsection, the Bureau shall coordinate with the appropriate prudential regulator.
Under 12 U.S.C. § 5516, smaller insured depository institutions and credit unions — those with total assets of $10 billion or less — fall into a distinct regulatory category where their primary prudential regulator, rather than the Consumer Financial Protection Bureau (CFPB), holds the lead enforcement authority over Federal consumer financial laws. The CFPB retains the ability to collect reports, participate in examinations on a sampling basis, and flag potential violations to the prudential regulator in writing, but the prudential regulator has exclusive enforcement power relative to the Bureau for these institutions. Service providers serving a substantial number of these smaller institutions are also brought within the Bureau's oversight reach, with coordination required between the Bureau and the prudential regulator.
Plain English — not legal advice.
While 12 U.S.C. § 5516 is primarily a banking regulatory provision, operators of rental housing who finance properties through smaller insured depository institutions or credit unions (those at or under the $10 billion asset threshold) should be aware that those financial partners are supervised under this framework. Compliant operators generally maintain awareness of which regulatory body oversees their lending institution, since the prudential regulator — not the CFPB — holds primary enforcement authority over Federal consumer financial law compliance at these institutions. Operators who work with third-party financial service providers should also note that such service providers may themselves be subject to Bureau oversight under § 5516 when they serve a substantial number of covered institutions.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants, 12 U.S.C. § 5516 is relevant when a concern involves a smaller bank or credit union (with $10 billion or less in total assets) that provides financial products connected to housing, such as mortgage servicing or deposit accounts. Under this provision, complaints about Federal consumer financial law violations at these institutions are generally directed to the institution's prudential regulator rather than the CFPB, though the CFPB can still flag material violations to that regulator. Tenants navigating concerns in this space may find it useful to consult a tenant-rights organization or housing counselor to identify which regulatory body is the appropriate contact for a given institution.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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