Community Lender Regulatory Relief and Consumer Protection Act of 2015
This bill amends the Truth in Lending Act with respect to the presumption of a mortgagor's ability to pay a qualified residential mortgage loan and the insured depository institutions or insured credit unions meeting specified criteria that may be its creditors.
The Gramm-Leach-Bliley Act is amended to exempt from its requirement of annual written privacy notices certain financial institutions.
The Federal Deposit Insurance Act is amended to: (1) increase from $500 million to $1 billion the size of certain small insured depository institutions eligible for an 18-month on-site examination cycle, and (2) require private deposit insurers of credit unions to give the Federal Housing Finance Agency copies of independent audit reports within 7 days after the audit is completed.
The Federal Home Loan Bank Act is amended to require the treatment of a state-chartered credit union as an insured depository institution even though it is not federally insured if it has applied for membership in a federal home loan bank and has met specified conditions, including insurance application eligibility requirements under the Federal Credit Union Act.
The Government Accountability Office must report to Congress on the adequacy of insurance reserves held by the private deposit insurer of privately insured credit unions, including the level of compliance with federal regulations regarding disclosure of a lack of federal deposit insurance.
The Securities Exchange Act of 1934 is amended to extend securities registration requirements to savings and loan holding companies.
The S.A.F.E. Mortgage Licensing Act of 2008 is amended to:
The Consumer Financial Protection Act of 2010 is amended to cover specified sections of the Servicemembers Civil Relief Act as "enumerated consumer laws."
The expiration of the Protecting Tenants at Foreclosure Act of 2009 is repealed, and the Act is restored and revived as it was in effect on December 31, 2014.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1491 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1491
To provide sensible relief to community financial institutions, to
protect consumers, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 3, 2015
Mr. Brown (for himself, Mr. Reed, Mr. Schumer, Mr. Menendez, Mr.
Tester, Mr. Warner, Mr. Merkley, Ms. Warren, Ms. Heitkamp, and Mr.
Donnelly) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To provide sensible relief to community financial institutions, to
protect consumers, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Community Lender
Regulatory Relief and Consumer Protection Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--HELPING COMMUNITY LENDERS
Sec. 101. Community bank and credit union portfolio lending.
Sec. 102. Exception to annual written privacy notice requirement under
the Gramm-Leach-Bliley Act.
Sec. 103. Expansion of threshold for 18-month on-site examination
cycle.
Sec. 104. Privately insured credit unions authorized to become members
of a Federal home loan bank.
Sec. 105. Registration threshold for savings and loan holding
companies.
Sec. 106. Transitional license authority.
TITLE II--PROTECTING CONSUMERS
Sec. 201. Protecting servicemembers.
Sec. 202. Restoration of the Protecting Tenants at Foreclosure Act of
2009.
Sec. 203. Confidentiality of information shared between State and
Federal financial services regulators.
TITLE I--HELPING COMMUNITY LENDERS
SEC. 101. COMMUNITY BANK AND CREDIT UNION PORTFOLIO LENDING.
Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C.
1639c(b)(2)) is amended by adding at the end the following:
``(F) Safe harbor.--
``(i) In general.--In this section--
``(I) the term `qualified
mortgage', as defined in subparagraph
(A), includes any residential mortgage
loan--
``(aa) that is originated
by a covered institution and
continuously retained in
portfolio by the covered
institution;
``(bb) that, except as
provided in subparagraph (E),
fully amortizes over a term of
not longer than 30 years;
``(cc) that complies with--
``(AA) the
requirements of clauses
(i), (ii), (iii), (iv),
(v), and (vii) of
subparagraph (A); and
``(BB) any
requirements consistent
with the purposes
described in paragraph
(3)(B)(i);
``(dd) for which the
covered institution, at or
before consummation of the
residential mortgage loan,
takes into account and verifies
the monthly debt and income of
the consumer; and
``(ee) that is not
considered a high-cost
mortgage; and
``(II) a residential mortgage loan
that meets the requirements of
subclause (I) shall be deemed to meet
the requirements of subsection (a)
until the residential mortgage loan no
longer meets the requirements of
subclause (I).
``(ii) Definition.--In this subparagraph,
the term `covered institution' means--
``(I) an insured depository
institution or insured credit union
that--
``(aa) at the time of
origination of the residential
mortgage loan, together with
its affiliates, has less than
$2,000,000,000 in total
consolidated assets; and
``(bb) during the calendar
year preceding the time of
origination of the residential
mortgage loan, originated not
more than 2,000 residential
mortgage loans that were--
``(AA) sold,
assigned, or otherwise
transferred to another
person; or
``(BB) subject to,
at the time of
consummation, a
commitment to be
acquired by another
person; or
``(II) an insured depository
institution or insured credit union
that, at the time of origination of the
residential mortgage loan--
``(aa) together with its
affiliates, has more than
$2,000,000,000 and less than
$10,000,000,000 in total
consolidated assets;
``(bb) is not considered a
specialty bank, such as a bank
that offers only a narrow
product line (including credit
card or motor vehicle loans) to
a regional or broader market;
``(cc) engages in the basic
activities of lending and
deposit taking as a significant
percentage of total assets;
``(dd) has a limited
geographic scope; and
``(ee) meets any other
criteria as determined by the
Bureau, including restrictions
on the volume of residential
mortgage loans--
``(AA) sold,
assigned, or otherwise
transferred to another
person; or
``(BB) subject to,
at the time of
consummation, a
commitment to be
acquired by another
person.''.
SEC. 102. EXCEPTION TO ANNUAL WRITTEN PRIVACY NOTICE REQUIREMENT UNDER
THE GRAMM-LEACH-BLILEY ACT.
Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803) is
amended by adding at the end the following:
``(f) Exception to Annual Written Notice Requirement.--
``(1) In general.--A financial institution described in
paragraph (2) shall not be required to provide an annual
written disclosure under this section until such time as the
financial institution fails to comply with subparagraph (A),
(B), or (C) of paragraph (2).
``(2) Covered institutions.--A financial institution
described in this paragraph is a financial institution that--
``(A) provides nonpublic personal information only
in accordance with the provisions of subsection (b)(2)
or (e) of section 502 or regulations prescribed under
section 504(b);
``(B) has not changed its policies and practices
with respect to disclosing nonpublic personal
information from the policies and practices that were
disclosed in the most recent disclosure sent to
consumers in accordance with this section; and
``(C) otherwise provides customers access to such
most recent disclosure in electronic or other form
permitted by regulations prescribed under section
504.''.
SEC. 103. EXPANSION OF THRESHOLD FOR 18-MONTH ON-SITE EXAMINATION
CYCLE.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)) is amended--
(1) in paragraph (4)(A), by striking ``$500,000,000'' and
inserting ``$1,000,000,000''; and
(2) in paragraph (10), by striking ``$500,000,000'' and
inserting ``$1,000,000,000''.
SEC. 104. PRIVATELY INSURED CREDIT UNIONS AUTHORIZED TO BECOME MEMBERS
OF A FEDERAL HOME LOAN BANK.
(a) In General.--Section 4(a) of the Federal Home Loan Bank Act (12
U.S.C. 1424(a)) is amended by adding at the end the following:
``(5) Certain privately insured credit unions.--
``(A) In general.--Subject to the requirements of
subparagraph (B), a credit union that lacks insurance
of its member accounts under Federal law shall be
treated as an insured depository institution for
purposes of this Act.
``(B) Certification by appropriate state
supervisor.--For purposes of this paragraph, a credit
union that lacks insurance of its member accounts under
Federal law and that has applied for membership in a
Federal home loan bank shall be treated as an insured
depository institution if the following has occurred:
``(i) Determination by state supervisor of
the credit union.--
``(I) In general.--Subject to
subclause (II), the appropriate
supervisor of the State in which the
credit union is chartered has
determined that the credit union meets
all the eligibility requirements under
section 201(a) of the Federal Credit
Union Act (12 U.S.C. 1781(a)) to apply
for insurance of its member accounts as
of the date of the application for
membership.
``(II) Certification deemed
valid.--In the case of any credit union
to which subclause (I) applies, if the
appropriate supervisor of the State in
which such credit union is chartered
fails to make the determination
required pursuant to such subclause by
the end of the 12-month period
beginning on the date on which the
application is submitted to the
supervisor, the credit union shall be
deemed to have met the requirements of
subclause (I).
``(ii) Determination by state supervisor of
the private deposit insurer.--The licensing
entity of the private deposit insurer that is
insuring the member accounts of the credit
union--
``(I) receives, on an annual basis,
an independent actuarial opinion that
the private insurer has set aside
sufficient reserves for losses; and
``(II) obtains, as frequently as
appropriate, but not less frequently
than every 36 months, an independent
actuary's study of the capital adequacy
of the private insurer.
``(iii) Submission of financial
information.--The credit union or the
appropriate supervisor of the State in which
such credit union is chartered makes available,
and continues to make available for such time
as the credit union is a member of a Federal
home loan bank, to the Federal Housing Finance
Agency or to the Federal home loan bank all
reports, records, and other information related
to any examinations or inquiries performed by
the supervisor concerning the financial
condition of the credit union, as soon as is
practicable.
``(C) Security interests of federal home loan bank
not avoidable.--Notwithstanding any provision of State
law authorizing a conservator or liquidating agent of a
credit union to repudiate contracts, no such provision
shall apply with respect to--
``(i) any extension of credit from any
Federal home loan bank to any credit union that
is a member of any such bank pursuant to this
paragraph; or
``(ii) any security interest in the assets
of such a credit union securing any such
extension of credit.
``(D) Protection for certain federal home loan bank
advances.--Notwithstanding any State law to the
contrary, if a Bank makes an advance under section 10
to a State-chartered credit union that is not federally
insured--
``(i) the Bank's interest in any collateral
securing the advance has the same priority and
is afforded the same standing and rights that
the security interest would have had if the
advance had been made to a federally insured
credit union; and
``(ii) the Bank has the same right to
access such collateral that the Bank would have
had if the advance had been made to a federally
insured credit union.''.
(b) Copies of Audits of Private Insurers of Certain Depository
Institutions Required To Be Provided to Supervisory Agencies.--Section
43(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1831t(a)(2)(A)) is amended--
(1) in clause (i), by striking ``; and'' and inserting a
semicolon;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iii) in the case of depository
institutions described in subsection (e)(2)(A),
the member accounts of which are insured by the
private deposit insurer, which are members of a
Federal home loan bank, to the Federal Housing
Finance Agency, not later than 7 days after the
audit is completed.''.
(c) GAO Report.--Not later than 18 months after the date of
enactment of this Act, the Comptroller General of the United States
shall conduct a study and submit a report to Congress--
(1) on the adequacy of insurance reserves held by a private
deposit insurer that insures the member accounts of an entity
described in section 43(e)(2)(A) of the Federal Deposit
Insurance Act (12 U.S.C. 1831t(e)(2)(A)); and
(2) for an entity described in paragraph (1), the member
accounts of which are insured by a private deposit insurer,
information on the level of compliance with Federal regulations
relating to the disclosure of a lack of Federal deposit
insurance.
SEC. 105. REGISTRATION THRESHOLD FOR SAVINGS AND LOAN HOLDING
COMPANIES.
The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is
amended--
(1) in section 12(g)--
(A) in paragraph (1)(B), by inserting after ``is a
bank'' the following: ``, a savings and loan holding
company (as such term is defined in section 10 of the
Home Owners' Loan Act (12 U.S.C. 1467a(a))),''; and
(B) in paragraph (4), by inserting after ``case of
a bank'' the following: ``, a savings and loan holding
company (as such term is defined in section 10 of the
Home Owners' Loan Act (12 U.S.C. 1467a(a))),''; and
(2) in section 15(d)(1), by striking ``case of bank'' and
inserting the following: ``case of a bank, a savings and loan
holding company (as such term is defined in section 10 of the
Home Owners' Loan Act (12 U.S.C. 1467a(a))),''.
SEC. 106. TRANSITIONAL LICENSE AUTHORITY.
Section 1504 of the S.A.F.E. Mortgage Licensing Act of 2008 (12
U.S.C. 5103) is amended--
(1) in subsection (a), by inserting after ``as the case may
be,'' the following: ``and except as provided in subsection
(c),''; and
(2) by adding at the end the following:
``(c) Transitional Authority.--
``(1) Definition.--In this subsection, the term `covered
registered loan originator' means a registered loan originator
who--
``(A) submits the information required under
section 1505(a); and
``(B) during the 30-day period preceding the date
of such submission, met the standard of being qualified
under section 129B(b)(1)(A) of the Truth in Lending Act
(15 U.S.C. 1639b(b)(1)(A)).
``(2) Authority.--Notwithstanding the requirements of
subsections (b) through (e) of section 1505, a State may permit
a covered registered loan originator to act as a loan
originator, under the supervision of a non-depository firm that
engages in loan origination in that State, for the 120-day
period beginning on the date on which the covered registered
loan originator submits the information required under section
1505(a).
``(3) Limitation.--A covered registered loan originator may
not act as a loan originator under paragraph (2) after the date
on which the 120-day period described in that paragraph
expires.''.
TITLE II--PROTECTING CONSUMERS
SEC. 201. PROTECTING SERVICEMEMBERS.
Section 1002(12) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5481(12)) is amended--
(1) in subparagraph (Q), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (R), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(S) sections 101, 107 (except with respect to
bailments), 108 (except with respect to insurance), 201
(except with respect to child custody proceedings),
207, 301, 302, 303, 305, and 305A of the Servicemembers
Civil Relief Act (50 U.S.C. App. 511, 517, 518, 521,
527, 531, 532, 533, 535, and 535a).''.
SEC. 202. RESTORATION OF THE PROTECTING TENANTS AT FORECLOSURE ACT OF
2009.
(a) Repeal of Sunset Provision.--Section 704 of the Protecting
Tenants at Foreclosure Act of 2009 (12 U.S.C. 5201 note; 12 U.S.C. 5220
note; 42 U.S.C. 1437f note) is repealed.
(b) Restoration.--Sections 701 through 703 of such Act, the
provisions of law amended or repealed by such sections, and any
regulations promulgated pursuant to such sections, as were in effect on
December 31, 2014, are restored and revived as if the sunset provision
in section 704 had not taken effect.
SEC. 203. CONFIDENTIALITY OF INFORMATION SHARED BETWEEN STATE AND
FEDERAL FINANCIAL SERVICES REGULATORS.
Section 1512(a) of the S.A.F.E. Mortgage Licensing Act of 2008 (12
U.S.C. 5111(a)) is amended by inserting ``or financial services''
before ``industry''.
<all>
Introduced in Senate
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection. Hearings held. With printed Hearing: S.Hrg. 114-133.
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