Community Lending Enhancement and Regulatory Relief Act of 2013 or CLEAR Relief Act of 2013 - Amends the Sarbanes-Oxley Act of 2002 to exempt from its rules regarding management assessment of internal controls the following institutions which, as of the end of the preceding fiscal year, had total consolidated assets of $1 billion or less (adjusted annually according to a certain formula): (1) a bank holding company, (2) a savings and loan holding company, or (3) an insured depository institution.
Declares the "Small Bank Holding Company Statement" of the Board of Governors of the Federal Reserve System (Board) applicable to a financial institution that: (1) is otherwise subject to that policy statement, and (2) has consolidated assets of less than $5 billion.
Amends the Truth in Lending Act (TILA) to require the Consumer Financial Protection Bureau (CFPB) to exempt from requirements governing escrow or impound accounts affecting certain consumer credit transactions any loans secured by a first lien on the principal dwelling of a consumer, if such loans are held by an insured depository institution having assets of $10 billion or less.
Includes as a qualified mortgage, with respect to the presumption that a qualified residential mortgage loan meets certain minimum standards, any mortgage loan originated and retained in portfolio for at least three years by a depository institution having less than $10 billion in total assets.
Requires the CFPB (which currently is merely authorized) to provide by regulation that a "qualified mortgage" includes a balloon loan extended by an insured depository institution that: (1) originates and retains balloon loans in portfolio for at least three years, and (2) together with its affiliates has less than $10 billion in total consolidated assets.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1349 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1349
To enhance the ability of community financial institutions to foster
economic growth and serve their communities, boost small businesses,
increase individual savings, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 24, 2013
Mr. Moran (for himself, Mr. Tester, and Mr. Kirk) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To enhance the ability of community financial institutions to foster
economic growth and serve their communities, boost small businesses,
increase individual savings, 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 ``Community Lending Enhancement and
Regulatory Relief Act of 2013'' or the ``CLEAR Relief Act of 2013''.
SEC. 2. COMMUNITY BANK EXEMPTION FROM ANNUAL MANAGEMENT ASSESSMENT OF
INTERNAL CONTROLS REQUIREMENT OF THE SARBANES-OXLEY ACT
OF 2002.
Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is
amended by adding at the end the following:
``(d) Community Bank Exemption.--
``(1) Definitions.--In this subsection--
``(A) the term `bank holding company' has the same
meaning as in section 2 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841);
``(B) the term `insured depository institution' has
the same meaning as in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and
``(C) the term `savings and loan holding company'
has the same meaning as in section 10 of the Home
Owners' Loan Act (12 U.S.C. 1467a).
``(2) In general.--This section and the rules prescribed
under this section shall not apply in any fiscal year to any
bank holding company, savings and loan holding company, or
insured depository institution which, as of the end of the
preceding fiscal year, had total consolidated assets of
$1,000,000,000 or less.
``(3) Adjustment of amount.--The Commission shall annually
adjust the dollar amount in paragraph (1) by an amount equal to
the percentage increase, for the most recent year, in total
assets held by all bank holding companies, savings and loan
holding companies, and insured depository institutions, as
reported by the Federal Deposit Insurance Corporation.''.
SEC. 3. CHANGES REQUIRED TO THE SMALL BANK HOLDING COMPANY POLICY
STATEMENT ON ASSESSMENT OF FINANCIAL AND MANAGERIAL
FACTORS.
(a) Definitions.--In this section--
(1) the term ``bank holding company'' has the same meaning
as in section 2 of the Bank Holding Company Act of 1956 (12
U.S.C. 1841);
(2) the term ``Board'' means the Board of Governors of the
Federal Reserve System;
(3) the term ``financial institution'' means--
(A) an insured depository institution;
(B) a bank holding company;
(C) a savings and loan holding company; and
(D) a foreign bank subject to the Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.);
(4) the term ``insured depository institution'' has the
same meaning as in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813); and
(5) the term ``savings and loan holding company'' has the
same meaning as in section 10 of the Home Owners' Loan Act (12
U.S.C. 1467a).
(b) Federal Reserve Board.--The policy statement of the Board in
the Small Bank Holding Company Statement in part 225 of the appendix to
title 12, Code of Federal Regulations (or any successor thereto), shall
apply to each financial institution that--
(1) is otherwise subject to that policy statement; and
(2) has consolidated assets of less than $5,000,000,000.
SEC. 4. ESCROW REQUIREMENTS RELATING TO CERTAIN CONSUMER CREDIT
TRANSACTIONS.
Section 129D(c) of the Truth in Lending Act (15 U.S.C. 1639d(c)) is
amended--
(1) by redesignating paragraphs (1), (2), (3), and (4) as
subparagraphs (A), (B), (C), and (D), respectively, and moving
the margins 2 ems to the right;
(2) by striking ``The Bureau'' and inserting the following:
``(1) In general.--The Bureau''; and
(3) by adding at the end the following:
``(2) Treatment of loans held by smaller institutions.--The
Bureau shall, by regulation, exempt from the requirements of
subsection (a) any loan secured by a first lien on the
principal dwelling of a consumer, if such loan is held by an
insured depository institution having assets of $10,000,000,000
or less.''.
SEC. 5. MINIMUM STANDARDS FOR RESIDENTIAL MORTGAGE LOANS.
Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C.
1639c(b)(2)) is amended--
(1) by adding at the end the following:
``(F) Safe harbor.--In this section--
``(i) the term `qualified mortgage'
includes any mortgage loan that is originated
and retained in portfolio for a period of not
less than 3 years by a depository institution
having less than $10,000,000,000 in total
assets; and
``(ii) loans described in clause (i) shall
be deemed to meet the requirements of
subsection (a).''; and
(2) in subparagraph (E)--
(A) by striking ``The Bureau may, by regulation,''
and inserting ``The Bureau shall, by regulation,''; and
(B) by striking clause (iv) and inserting the
following:
``(iv) that is extended by an insured
depository institution that--
``(I) originates and retains the
balloon loans in portfolio for a period
of not less than 3 years; and
``(II) together with its affiliates
has less than $10,000,000,000 in total
consolidated assets.''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs. Hearings held.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line