HUMPS Act of 2025

The HUMPS Act (Halting Uncertain Methods and Practices in Supervision Act) would modify the CAMELS rating system, which federal regulators use to evaluate the safety and soundness of banks and financial institutions. Currently, the CAMELS system relies heavily on examiner judgment, which can lead to inconsistent ratings across similar institutions. This bill would require federal financial regulators to establish clear, objective measures for each CAMELS component and determine how they should be weighted in overall ratings. The changes would focus supervision on a financial institution's core financial condition and solvency. Regulators would also need to ensure ratings consider compliance with money laundering and terrorist financing prevention requirements. The bill would require regulators to issue new rules within 12 months of receiving recommendations from the Federal Financial Institutions Examination Council. If enacted, the bill would have minimal fiscal impact, with the Congressional Budget Office estimating it would increase federal spending by approximately $1 million over ten years to implement the new requirements. The bill has passed committee review and is eligible for a floor vote.