Bills of Congress June 25, 2025 by U.S. Congress

H.R.3379 - Halting Uncertain Methods and Practices in Supervision Act of 2025; HUMPS Act of 2025 (119th Congress)

Summary

H.R.3379, the Halting Uncertain Methods and Practices in Supervision Act of 2025 (HUMPS Act), aims to amend the Federal Financial Institutions Examination Council Act of 1978. The bill mandates updates to the CAMELS Rating System used by federal financial regulatory agencies. The goal is to establish clearer, more objective criteria for assessing the financial health and risk profiles of financial institutions.

Expected Effects

The bill seeks to reduce subjectivity in bank supervision by requiring objective measures for CAMELS components. This could lead to more consistent and fair regulatory assessments of financial institutions. The changes may also affect how banks are evaluated for mergers, acquisitions, and deposit insurance premiums.

Potential Benefits 4/5

* **Increased Transparency:** Clearer criteria for CAMELS ratings will make the evaluation process more transparent.
* **Fairness and Consistency:** Objective measures will reduce inconsistencies in ratings across similar institutions.
* **Focus on Financial Condition:** The bill emphasizes the core financial health and solvency of financial institutions.
* **Improved Accountability:** Objective measures enhance accountability in supervisory assessments.
* **Modernized Supervision:** Updating the CAMELS rating system ensures it reflects current financial risks and conditions.

Most Benefited Areas:

Economic Growth & Job Creation ★ ★ ★ ★ ★

Business Prosperity & Innovation ★ ★ ★ ★ ★

Fiscal Responsibility & Fair Taxation ★ ★ ★ ★ ★

Potential Disadvantages

* **Potential for Rigidity:** Overly strict objective criteria may not capture nuanced risks.
* **Implementation Challenges:** Developing and implementing new objective measures could be complex and time-consuming.
* **Unintended Consequences:** Changes to the CAMELS system could have unforeseen impacts on bank behavior and risk-taking.
* **Compliance Costs:** Financial institutions may incur costs to comply with the updated rating system.
* **Reduced Examiner Flexibility:** Limiting examiner judgment may hinder the ability to address unique or emerging risks.

Constitutional Alignment 4/5

The bill aligns with the Constitution's Article I, Section 8, which grants Congress the power to regulate commerce, including financial institutions. By amending the Federal Financial Institutions Examination Council Act, Congress is exercising its authority to oversee and regulate the financial sector. The requirement for public comment also aligns with principles of transparency and due process.