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House committee backs bill to make CAMELS ratings more objective
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Summary
Representative Mike Fitzgerald said HR 33 79, the HUMPS Act, would require objective, measurable criteria for CAMELS ratings to reduce subjectivity in bank examinations.
Halting Uncertain Methods and Practices in Supervision (HUMPS) Act aims to make CAMELS ratings less subjective.
Representative Mike Fitzgerald introduced HR 33 79, the Halting Uncertain Methods and Practices in Supervision (HUMPS) Act, calling for objective, measurable criteria for each CAMELS component and for the Federal Financial Institutions Examination Council to implement changes through notice-and-comment rulemaking within 12 months.
Fitzgerald said the proposal targets subjectivity especially in the management component, which he said is often used inconsistently across regions and examiners. Supporters argued standardized metrics would make supervision more predictable for smaller, less-resourced institutions.
Ranking Member Maxine Waters opposed the bill, saying she “strongly oppose[d] HR 33 79,” arguing the management component captures governance and ethics issues that can presage failures and that removing or weakening it could limit regulators’ ability to act on mismanagement—citing Silicon Valley Bank as an example where management failures mattered.
Committee members debated whether objective criteria can fully capture management quality. The subcommittee adopted the substitute and ordered the bill favorably reported to the House; the committee later recorded the vote on ordering HR 33 79 as amended as 29 ayes and 23 nays.
