Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014

Summary: Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014 - Directs the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) (federal banking agencies) to study jointly the appropriate capital requirements for mortgage servicing assets for any banking institution other than an institution identified by the Financial Stability Board as a global systemically important bank. Prohibits regulations to implement the Global Regulatory Framework for More Resilient Banks and Banking Systems issued by the Basel Committee on Banking Supervision on December 16, 2010, as revised on June 1, 2011, (Basel III capital requirements) with respect to mortgage servicing assets for nonsystemic banking institutions from taking effect until six months after the report on the study is issued to Congress. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Bank Mortgage Servicing 
Asset Capital Requirements Study Act of 2014''.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Banking institution.--The term ``banking institution'' 
        means a bank holding company, insured depository institution, 
        or savings and loan holding company.
            (2) Basel iii capital requirements.--The term ``Basel III 
        capital requirements'' means the Global Regulatory Framework 
        for More Resilient Banks and Banking Systems issued by the 
        Basel Committee on Banking Supervision on December 16, 2010, as 
        revised on June 1, 2011.
            (3) Federal banking agencies.--The term ``Federal banking 
        agencies'' means the Board of Governors of the Federal Reserve 
        System, the Office of the Comptroller of the Currency, and the 
        Federal Deposit Insurance Corporation.
            (4) Mortgage servicing asset.--The term ``mortgage 
        servicing asset'' means those assets that result from contracts 
        to service loans secured by real estate, where such loans are 
        owned by third parties.
            (5) Nonsystemic banking institution.--The term 
        ``nonsystemic banking institution'' means any banking 
        institution other than an institution identified by the 
        Financial Stability Board as a ``global systemically important 
        bank''.
            (6) Other definitions.--The terms ``bank holding company'', 
        ``insured depository institution'', and ``savings and loan 
        holding company'' have the meanings given such terms, 
        respectively, under section 3 of the Federal Deposit Insurance 
        Act (12 U.S.C. 1813).

SEC. 3. STUDY OF THE APPROPRIATE CAPITAL FOR MORTGAGE SERVICING ASSETS.

    (a) In General.--The Federal banking agencies shall, jointly, 
conduct a study of the appropriate capital requirements for mortgage 
servicing assets for nonsystemic banking institutions.
    (b) Issues To Be Studied.--The study required by this section shall 
include, with a specific focus on nonsystemic banking institutions--
            (1) the risk to insured depository institutions of holding 
        mortgage servicing assets;
            (2) the history of the market for mortgage servicing 
        assets, including particularly the market for such assets in 
        the period of the financial crisis;
            (3) the ability of insured depository institutions to 
        establish a value for their mortgage servicing assets through 
        periodic sales or other means;
            (4) regulatory approaches to mortgage servicing assets in 
        addition to capital requirements that could be used to address 
        concerns about the value of and ability to sell mortgage 
        servicing assets;
            (5) the impact of imposing the Basel III capital 
        requirements on nonsystemic banking institutions on their 
        ability to compete in the mortgage servicing business, 
        including the need for economies of scale to compete in that 
        business, and on their ability to provide service to consumers 
        to whom they have made a mortgage loan;
            (6) an analysis of what the mortgage servicing marketplace 
        would look like if the Basel III capital requirements on 
        mortgage servicing assets were fully implemented;
            (7) the significance of problems with mortgage servicing 
        assets, if any, in insured depository institution failures and 
        problem insured depository institutions, including specifically 
        identifying failed insured depository institutions where 
        mortgage servicing assets contributed to the failure; and
            (8) an analysis of the relevance of the Basel III capital 
        requirements on mortgage servicing assets to the banking 
        systems of other significant developed countries.
    (c) Report to Congress.--Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, the Federal 
banking agencies shall issue a report to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives containing--
            (1) the results of the study required under subsection (a); 
        and
            (2) any analysis on the specific issue of mortgage 
        servicing assets undertaken by the Federal banking agencies 
        prior to finalizing regulations implementing the Basel III 
        capital requirements.

SEC. 4. DELAY OF RULEMAKING.

    (a) Rules on Mortgage Servicing Assets.--Notwithstanding any other 
provision of law, no regulation to implement the Basel III capital 
requirements with respect to mortgage servicing assets for nonsystemic 
banking institutions shall take effect before the end of the 6-month 
period beginning on the date the report is issued under section 3(c).
    (b) Final Rule Requirements.--Before any final rule is issued by a 
Federal banking agency with respect to capital requirements on mortgage 
servicing assets for nonsystemic banking institutions, the Federal 
banking agency shall--
            (1) if the related proposed rule was issued before the date 
        on which the report is issued under section 3(c), issue a new 
        proposed rule for public comment; and
            (2) consider regulatory approaches to mortgage servicing 
        assets that could address concerns about the value of and 
        ability to sell mortgage servicing assets.