HUMPS Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3379 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3379

To amend the Federal Financial Institutions Examination Council Act of 
1978 to require the Federal financial institutions regulatory agencies 
      to update the CAMELS Rating System, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2025

Mr. Fitzgerald introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Financial Institutions Examination Council Act of 
1978 to require the Federal financial institutions regulatory agencies 
      to update the CAMELS Rating System, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Halting Uncertain Methods and 
Practices in Supervision Act of 2025'' or the ``HUMPS Act of 2025''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) CAMELS ratings (Capital adequacy, Asset quality, 
        Management, Earnings, Liquidity, and Sensitivity to market 
        risk) are a critical tool for evaluating the safety and 
        soundness of financial institutions, and the basis for 
        determining significant regulatory matters such as the 
        evaluation for mergers and acquisitions and a bank's deposit 
        insurance premiums;
            (2) the CAMELS rating system relies heavily on examiner 
        judgment, which can lead to subjective and inconsistent ratings 
        across similar institutions;
            (3) establishing clear, objective measures for each CAMELS 
        component and their relative weighting in determining composite 
        ratings will promote fairness, consistency, and accountability 
        in supervisory assessments; and
            (4) examination and supervision, as well as the CAMELS 
        rating system, should focus on a financial institution's core 
        financial condition or solvency.

SEC. 3. AMENDMENTS TO THE CAMELS RATING SYSTEM.

    (a) In General.--The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at 
the end the following:

``SEC. 1012. AMENDMENTS TO THE CAMELS RATING SYSTEM.

    ``(a) In General.--The Council shall make recommendations to amend 
the Uniform Financial Institutions Rating System, and the CAMELS 
components thereunder, to--
            ``(1) establish clear and objective criteria for assessing 
        each CAMELS component;
            ``(2) revise the weighting of each CAMELS component to 
        derive a composite rating that more accurately reflects the 
        financial condition and risk profile of the financial 
        institutions being rated;
            ``(3) either--
                    ``(A) eliminate the management component of the 
                CAMELS rating system; or
                    ``(B) revise the management component of the CAMELS 
                rating system to limit the assessment under such 
                component to objective measures of the governance and 
                controls used to manage an institution's risk profile; 
                and
            ``(4) ensure that composite ratings are determined based on 
        a transparent methodology that is limited to the objective 
        criteria established for each CAMELS component.
    ``(b) Rulemaking.--Not later than 12 months after the Council makes 
the recommendations required under subsection (a), the Federal 
financial institutions regulatory agencies shall, jointly, issue rules 
to carry out the recommendations described under subsection (a).
    ``(c) Public Comment Period.--In issuing the rules required under 
subsection (b), the Federal financial institutions regulatory agencies 
shall--
            ``(1) publish a notice of proposed rulemaking with respect 
        to such rules; and
            ``(2) provide for a public comment period of not less than 
        60 days.
    ``(d) Rule of Construction.--Nothing in this section may be 
construed to limit the authority of the Federal financial institutions 
regulatory agencies to take supervisory or enforcement actions to 
ensure the safety and soundness of financial institutions.''.
    (b) Well Managed Definition.--Section 2(o)(9)(A) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)(A)) is amended--
            (1) by striking ``achievement of'' and all that follows 
        through ``a CAMEL'' and inserting ``achievement of a CAMEL'';
            (2) by striking ``; and'' and inserting a period; and
            (3) by striking clause (ii).
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