Relationship Lending Preservation Act of 2017

Relationship Lending Preservation Act of 2017

This bill directs the Consumer Financial Protection Bureau to issue regulations that include as a "qualified mortgage" any mortgage loan that: (1) is extended by a Federal Home Loan Bank member that, together with its affiliates, has less than $10 billion in total consolidated assets; (2) meets specified qualifying criteria under the Truth in Lending Act; and (3) is eligible to be purchased by a Federal Home Loan Bank pursuant to regulations of the Federal Housing Finance Agency and requirements established by the bank. Current law provides certain protections for lenders against lawsuits by distressed borrowers with respect to qualified mortgages.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1315 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1315

  To require the Bureau of Consumer Financial Protection to amend its 
  regulations relating to qualified mortgages, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 8, 2017

  Ms. Heitkamp (for herself and Mr. Portman) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To require the Bureau of Consumer Financial Protection to amend its 
  regulations relating to qualified mortgages, 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 ``Relationship Lending Preservation 
Act of 2017''.

SEC. 2. QUALIFIED MORTGAGE AMENDMENT.

    (a) Definitions.--In this section--
            (1) the term ``affiliate'' has the meaning given the term 
        in section 2(k) of the Bank Holding Company Act of 1956 (12 
        U.S.C. 1841(k));
            (2) the term ``Bureau'' means the Bureau of Consumer 
        Financial Protection;
            (3) the terms ``community financial institution'' and 
        ``Federal Home Loan Bank System'' have the meanings given those 
        terms in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 
        1422);
            (4) the term ``creditor'' has the meaning given that term 
        in section 103 of the Truth in Lending Act (15 U.S.C. 1602);
            (5) the term ``Federal Home Loan Bank'' means a bank 
        established under the authority of the Federal Home Loan Bank 
        Act (12 U.S.C. 1421 et seq.); and
            (6) the term ``qualified mortgage'' has the meaning given 
        the term in section 129C(b)(2)(A) of the Truth in Lending Act 
        (15 U.S.C. 1639c(b)(2)(A)).
    (b) Requirement To Issue Regulations.--Not later than 9 months 
after the date of enactment of this Act, the Bureau shall issue 
regulations that provide that the term ``qualified mortgage'' includes 
any mortgage loan that--
            (1) is extended by a creditor that--
                    (A) together with its affiliates, has less than 
                $10,000,000,000 in total consolidated assets; and
                    (B) is a member of a Federal Home Loan Bank;
            (2) meets the requirements of clauses (i), (ii), (iv), (v), 
        (vii), and (viii) of section 129C(b)(2)(A) of the Truth in 
        Lending Act (15 U.S.C. 1639c(b)(2)(A));
            (3) is eligible to be purchased by a Federal Home Loan Bank 
        pursuant to requirements established by the Federal Home Loan 
        Bank, including underwriting and documentation requirements; 
        and
            (4) is eligible to be purchased and is held by a Federal 
        Home Loan Bank pursuant to regulations issued by the Federal 
        Housing Finance Agency.
    (c) Assessment of Regulations.--
            (1) In general.--The Bureau shall conduct, in consultation 
        with the Federal Housing Finance Agency, an assessment of the 
        regulations issued under subsection (b), which shall--
                    (A) address, among other relevant factors, the 
                usage of the regulations by community financial 
                institutions, the impact of the regulations on access 
                to residential mortgage loans, and whether the Federal 
                Home Loan Banks have established underwriting and 
                documentation requirements; and
                    (B) reflect available evidence and any data that 
                the Bureau reasonably may collect.
            (2) Report.--Not later than 4 years after the date on which 
        the Bureau issues the regulations under subsection (b), the 
        Bureau shall publish and submit to the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the Committee on 
        Financial Services of the House of Representatives a report on 
        the assessment conducted under paragraph (1).
            (3) Public comment required.--Before publishing the report 
        under paragraph (2), the Bureau shall invite public comment on 
        recommendations for modifying, expanding, or eliminating the 
        regulations issued under subsection (b).
    (d) Revision of Regulations.--Beginning 5 years after the date on 
which the Bureau issues the regulations under subsection (b), the 
Bureau may revise those regulations if the Bureau determines that the 
revision is necessary--
            (1) to protect the safety of mortgage loan borrowers or 
        lenders; or
            (2) to increase access to mortgage credit.
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