Community Lending Enhancement and Regulatory Relief Act of 2013

Summary: 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 &quot;Small Bank Holding Company Statement&quot; 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 &quot;qualified mortgage&quot; 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.

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.''.