CLEAR Relief Act of 2013

Summary: Community Lending Enhancement and Regulatory Relief Act of 2013 or CLEAR Relief Act of 2013 - Directs the Board of Governors of the Federal Reserve System (Board) to publish in the Federal Register proposed revisions to the Small Bank Holding Company Policy Statement on the Assessment of Financial and Managerial Factors that: (1) apply the policy to bank holding companies having pro forma consolidated assets of less than $5 billion (adjusted annually), no engagement in nonbanking activities involving significant leverage, and no significant amount of outstanding debt; and (2) increase from 1.1 to 3.1 the debt-to-equity ratio allowable for a small bank holding company in order to retain its eligibility both to pay a corporate dividend and to implement expedited processing procedures under Regulation Y of the Board.   Amends the Truth in Lending Act (TILA) to require the Board to exempt from certain escrow or impound requirements a loan secured by a first lien on a consumer's principal dwelling if the loan is held by a creditor with assets of $10 billion or less. Amends the Gramm-Leach-Bliley Act to exempt from its annual privacy policy notice requirement any financial institution which: (1) provides nonpublic personal information only in accordance with specified requirements, and (2) has not changed its policies and practices regarding disclosures of nonpublic personal information from those disclosed in the most recent disclosure sent to consumers. Amends the Securities Act of 1933 to direct the Securities and Exchange Commission (SEC) to conduct cost-benefit analyses of certain new or amended generally accepted accounting principles. Requires the SEC to determine, as a prerequisite to recognition of such new or amended principles, whether the benefits to investors significantly outweigh the costs. Amends the Sarbanes-Oxley Act of 2002 to exempt community banks having total assets on a consolidated basis of $10 billion or less from mandatory annual management assessment of internal controls. Amends TILA to: (1) add to the definition of a qualified residential mortgage loan that it is originated and retained in a portfolio for at least three years by a creditor having less than $10 billion total assets, and (2) redefine a balloon loan that is a &quot;qualified mortgage&quot; to specify a balloon loan extended by a creditor that originates and retains balloon loans in a portfolio for at least three years, and, together with all affiliates, has total assets of $10 billion or less. Amends the Real Estate Settlement Procedures Act of 1974 to direct the Consumer Financial Protection Bureau (CFPB) to provide either exemptions or adjustments from the mortgage loan servicing and escrow account administration requirements of the Act for servicers of 20,000 or fewer mortgage loans. Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to require federal financial institutions regulatory agencies to establish a $250,000 threshold level at or below which a certified or licensed appraiser is not required to perform appraisals in connection with federally related transactions.  Declares that, if an order to request for the transfer of funds (entry) is received via an automate clearing house, a receiving depository financial institution shall not be required to verify that the entry is not a prohibited transaction if the originating depository financial institution has warranted its compliance with the sanctions programs administered by the Office of Foreign Assets Control in connection with the entry.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) 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''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Changes required to small bank holding company policy statement 
                            on assessment of financial and managerial 
                            factors.
Sec. 3. Escrow requirements.
Sec. 4. Exception to annual privacy notice requirement under the Gramm-
                            Leach-Bliley Act.
Sec. 5. Accounting principles cost-benefit requirements.
Sec. 6. Community bank exemption from annual management assessment of 
                            internal controls requirement of the 
                            Sarbanes-Oxley Act of 2002.
Sec. 7. Certain loans included as qualified mortgages.
Sec. 8. Increase in small servicer exemption.
Sec. 9. Appraiser qualification threshold.
Sec. 10. Coordination among financial institutions.

SEC. 2. CHANGES REQUIRED TO SMALL BANK HOLDING COMPANY POLICY STATEMENT 
              ON ASSESSMENT OF FINANCIAL AND MANAGERIAL FACTORS.

    (a) Small Bank Holding Company Policy Statement on Assessment of 
Financial and Managerial Factors.--
            (1) In general.--Before the end of the 6-month period 
        beginning on the date of the enactment of this Act, the Board 
        of Governors of the Federal Reserve System shall publish in the 
        Federal Register proposed revisions to the Small Bank Holding 
        Company Policy Statement on Assessment of Financial and 
        Managerial Factors (12 C.F.R. part 225--appendix C) that 
        provide that the policy shall apply to a bank holding company 
        which has pro forma consolidated assets of less than 
        $5,000,000,000 and that--
                    (A) is not engaged in any nonbanking activities 
                involving significant leverage; and
                    (B) does not have a significant amount of 
                outstanding debt that is held by the general public.
            (2) Adjustment of amount.--The Board of Governors of the 
        Federal Reserve System shall annually adjust the dollar amount 
        referred to in paragraph (1) in the Small Bank Holding Company 
        Policy Statement on Assessment of Financial and Managerial 
        Factors by an amount equal to the percentage increase, for the 
        most recent year, in total assets held by all insured 
        depository institutions, as determined by the Board.
    (b) Increase in Debt-to-Equity Ratio of Small Bank Holding 
Company.--Before the end of the 6-month period beginning on the date of 
the enactment of this Act, the Board of Governors of the Federal 
Reserve System shall publish in the Federal Register proposed revisions 
to the Small Bank Holding Company Policy Statement on Assessment of 
Financial and Managerial Factors (12 C.F.R. part 225--appendix C) such 
that the debt-to-equity ratio allowable for a small bank holding 
company in order to remain eligible to pay a corporate dividend and to 
remain eligible for expedited processing procedures under Regulation Y 
of the Board of Governors of the Federal Reserve System would increase 
from 1:1 to 3:1.

SEC. 3. ESCROW REQUIREMENTS.

    (a) In General.--Section 129D(c) of the Truth in Lending Act, as 
added by section 1461(a) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, is amended--
            (1) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D) and moving such 
        subparagraphs 2 ems to the right;
            (2) striking ``The Board'' and inserting the following:
            ``(1) In general.--The Board''; and
            (3) by adding at the end the following new paragraph:
    ``(2) Treatment of Loans Held by Smaller Creditors.--The Board 
shall, by regulation, exempt from the requirements of subsection (a) 
any loan secured by a first lien on a consumer's principle dwelling, if 
such loan is held by a creditor with assets of $10,000,000,000 or 
less.''.

SEC. 4. EXCEPTION TO ANNUAL 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 Notice Requirement.--A financial 
institution that--
            ``(1) 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), and
            ``(2) has not changed its policies and practices with 
        regard 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 
        subsection,
shall not be required to provide an annual disclosure under this 
subsection until such time as the financial institution fails to comply 
with any criteria described in paragraph (1) or (2).''.

SEC. 5. ACCOUNTING PRINCIPLES COST-BENEFIT REQUIREMENTS.

    Section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)) is 
amended by adding at the end the following:
            ``(3) Generally accepted accounting principles cost-benefit 
        requirements.--The Commission or its designee shall conduct 
        analyses of the costs and benefits (including economic 
        benefits) of any new or amended accounting principle described 
        under paragraph (1), and may not recognize such new or amended 
        accounting principle, unless the Commission or its designee 
        determines that the benefits to investors of such new or 
        amended accounting principle significantly outweigh its 
        costs.''.

SEC. 6. 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 the following new subsection:
    ``(d) Community Bank Exemption.--
            ``(1) In general.--This section shall not apply in any year 
        to any insured depository institution which, as of the close of 
        the preceding year, had total assets, as determined on a 
        consolidated basis, of $10,000,000,000 or less.
            ``(2) 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 depository institutions, as reported by the 
        Federal Deposit Insurance Corporation.''.

SEC. 7. CERTAIN LOANS INCLUDED AS QUALIFIED MORTGAGES.

    Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C. 
1639c(b)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (viii), by striking ``and'' at the 
                end;
                    (B) in clause (ix), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(x) that is originated and retained in 
                        portfolio for a period of at least 3 years by a 
                        creditor having less than $10,000,000,000 in 
                        total assets.''; and
            (2) in subparagraph (E)--
                    (A) by striking ``The Board may, by regulation'' 
                and inserting ``The Bureau shall, by regulation''; and
                    (B) by amending clause (iv) to read as follows:
                            ``(iv) that is extended by a creditor 
                        that--
                                    ``(I) originates and retains the 
                                balloon loans in portfolio for a period 
                                of at least 3 years; and
                                    ``(II) together with all 
                                affiliates, has total assets of 
                                $10,000,000,000 or less.''.

SEC. 8. INCREASE IN SMALL SERVICER EXEMPTION.

    Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605) is amended by adding at the end the following:
    ``(n) Small Servicer Exemption.--The Bureau shall, by regulation, 
provide exemptions to, or adjustments for, the provisions of this 
section for servicers that service 20,000 or fewer mortgage loans, in 
order to reduce regulatory burdens while appropriately balancing 
consumer protections.''.

SEC. 9. APPRAISER QUALIFICATION THRESHOLD.

    Section 1112(b) of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3341(b)) is amended--
            (1) by striking ``may establish a threshold level at or'' 
        and inserting ``shall establish a threshold level of 
        $250,000,''; and
            (2) by striking ``transactions, if'' and inserting 
        ``transactions. Each Federal financial institutions regulatory 
        agency and the Resolution Trust Corporation may establish a 
        higher threshold than $250,000, if''.

SEC. 10. COORDINATION AMONG FINANCIAL INSTITUTIONS.

    Chapter 53 of title 31, United States Code, is amended--
            (1) by inserting after section 5332 the following new 
        section:
``Sec. 5333. Coordination among financial institutions
    ``(a) In General.--In the case of an entry received via an 
automated clearing house, no receiving depository financial institution 
shall be required to verify that the entry is not a prohibited 
transaction, if the originating depository financial institution has 
warranted, pursuant to the automated clearing house rules governing 
such entry or otherwise, that the originating depository financial 
institution has complied with the sanctions programs administered by 
the Office of Foreign Assets Control in connection with such entry.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Automated clearing house.--The term `automated 
        clearing house' means a funds transfer system governed by rules 
        which provide for the interbank clearing of electronic entries 
        for participating depository financial institutions.
            ``(2) Depository financial institution.--The term 
        `depository financial institution' means--
                    ``(A) any insured depository institution, as such 
                term is defined under section 3 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813);
                    ``(B) any depository institution which is eligible 
                to apply to become an insured depository institution 
                under section 5 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1815);
                    ``(C) any insured credit union, as defined in 
                section 101 of the Federal Credit Union Act (12 U.S.C. 
                1752); and
                    ``(D) any credit union which is eligible to apply 
                to become an insured credit union pursuant to section 
                201 of the Federal Credit Union Act (12 U.S.C. 1781).
            ``(3) Entry.--The term `entry' means an order to request 
        for the transfer of funds through an automated clearing house.
            ``(4) Originating depository financial institution.--The 
        term `originating depository financial institution' means a 
        depository financial institution that transmits entries via an 
        automated clearing house for transmittal to a receiving 
        depository financial institution.
            ``(5) Prohibited transaction.--The term `prohibited 
        transaction' means a funds transfer originated on behalf of a 
        person to or from whom funds transfers are restricted by a 
        sanctions program administered by the Office of Foreign Assets 
        Control, including persons appearing on the list of specially 
        designated nationals and blocked persons maintained by the 
        Office of Foreign Assets Control.
            ``(6) Receiving depository financial institution.--The term 
        `receiving depository financial institution' means a depository 
        financial institution that receives entries via an automated 
        clearing house from an originating depository financial 
        institution for debit or credit to the accounts of its 
        customers.''; and
            (2) in the table of contents for such chapter by inserting 
        after the item relating to section 5332 the following new item:

``5333. Coordination among financial institutions.''.