H.R. 459
Federal Reserve Transparency Act
Sponsor Rep. Paul, Ron
Date July 24, 2012 (112th Congress, 2nd Session)
Staff Contact Jon Hiler


On Tuesday, July 24, 2012, the House is scheduled to consider H.R. 459, the Federal Reserve Transparency Act of 2012, under a suspension of the rules requiring a two-thirds majority for approval.  The bill was introduced on January 26, 2011, by Rep. Ron Paul (R-TX), referred to the Committee on Oversight and Government Reform.  The committee held a mark-up session on June 27, 2012 and ordered the bill to be reported by voice vote.

H.R 459 would direct the Government Accountability Office (GAO) to conduct an audit of the Board of Governors of the Federal Reserve System and the Federal Reserve banks within 12 months of the date of enactment, with a report to be delivered to Congress within 90 days of completion of the audit.  The audit must include a detailed description of the findings of the audit with GAO’s recommendations for legislative and administrative action.

The bill would also direct the GAO to conduct an audit of the files of certain residential mortgage loans in foreclosure in 2009 and 2010.  The Federal Reserve has required regulated financial institutions which service these loans to hire independent consultants to undertake reviews of these files because they were found to have been improperly reviewed prior to putting them into foreclosure.  Specifically, the bill would require the GAO to conduct an audit of the Federal Reserve’s enforcement actions with regard to these loan file reviews and to make a report to Congress within six months of the date of enactment of this Act.

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