Community Lending Enhancement and Regulatory Relief Act of 2017

Summary: Community Lending Enhancement and Regulatory Relief Act of 2017 or the CLEAR Relief Act of 2017 This bill amends the Sarbanes-Oxley Act of 2002 to exempt from specified reporting and attestation requirements a community bank with assets of $1 billion or less. The bill amends the Truth in Lending Act to exempt from certain escrow requirements and residential mortgage loan standards a residential mortgage loan held by&nbsp;a depository institution with assets of $10 billion or less. The bill further amends that Act, as well as the Consumer Protection Act of 2010, to exempt certain creditors from specified disclosure requirements. In addition, the bill amends the Bank Holding Company Act of 1956 to exempt from the Volcker Rule a depository institution with assets of $10&nbsp;billion or less. (The Volcker Rule prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds and private-equity funds.)

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Lending Enhancement and 
Regulatory Relief Act of 2017'' or the ``CLEAR Relief Act of 2017''.

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 
                meaning given the term in section 2 of the Bank Holding 
                Company Act of 1956 (12 U.S.C. 1841);
                    ``(B) the term `insured depository institution' has 
                the meaning given the term 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 meaning given the term in section 10(a) of the 
                Home Owners' Loan Act (12 U.S.C. 1467a(a)).
            ``(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 that, 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. 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) through (4) as 
        subparagraphs (A) through (D), respectively, and adjusting the 
        margins accordingly;
            (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. 4. 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 by adding at the end the following:
                    ``(F) Safe harbor.--
                            ``(i) In general.--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 together 
                                with its affiliates has less than 
                                $10,000,000,000 in total consolidated 
                                assets; and
                                    ``(II) loans described in subclause 
                                (I) shall be deemed to meet the 
                                requirements of subsection (a).
                            ``(ii) Exception for certain transfer.--In 
                        the case of a depository institution that 
                        transfers a loan originated by that institution 
                        to another depository institution by reason of 
                        the bankruptcy or failure of the originating 
                        depository institution or the purchase of the 
                        originating depository institution, the 
                        depository institution acquiring the loan shall 
                        be deemed to have complied with the requirement 
                        under clause (i)(I).''.

SEC. 5. EXEMPTION FROM VOLCKER RULE.

    Section 13(h)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1851(h)(1)) is amended--
            (1) in subparagraph (D), by redesignating clauses (i) and 
        (ii) as subclauses (I) and (II), respectively;
            (2) by redesignating subparagraphs (A) through (D) as 
        clauses (i) through (iv), respectively;
            (3) by striking ``institution that functions solely in a 
        trust or fiduciary capacity, if--'' and inserting the 
        following: ``institution--
                    ``(A) that functions solely in a trust or fiduciary 
                capacity, if--''; and
            (4) in clause (iv)(II), as redesignated, by striking the 
        period at the end and inserting the following: ``; or
                    ``(B) with total consolidated assets of 
                $10,000,000,000 or less.''.

SEC. 6. NO WAIT FOR LOWER MORTGAGE RATES.

    (a) In General.--Section 129(b) of the Truth in Lending Act (15 
U.S.C. 1639(b)) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) No wait for lower rate.--If a creditor extends to a 
        consumer a second offer of credit with a lower annual 
        percentage rate, the transaction may be consummated without 
        regard to the period specified in paragraph (1).''.
    (b) Safe Harbor for Good Faith Compliance With TILA-RESPA 
Integrated Disclosure Rule.--Section 1032(f) of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5532(f)) is amended--
            (1) by striking ``Not later than'' and inserting the 
        following:
            ``(1) In general.--Not later than''; and
            (2) by adding at the end the following:
            ``(2) Safe harbor for good faith compliance.--
                    ``(A) Safe harbor.--Notwithstanding any other 
                provision of law, during the period described in 
                subparagraph (B), an entity that provides the 
                disclosures required under the Truth in Lending Act (15 
                U.S.C. 1601 et seq.) and sections 4 and 5 of the Real 
                Estate Settlement Procedures Act of 1974 (12 U.S.C. 
                2603 and 2604), as in effect on July 31, 2017, shall 
                not be subject to any civil, criminal, or 
                administrative action or penalty for failure to fully 
                comply with any requirement under this subsection.
                    ``(B) Applicable period.--Subparagraph (A) shall 
                apply to an entity during the period beginning on the 
                date of enactment of this paragraph and ending on the 
                date that is 30 days after the date on which a 
                certification by the Director that the model 
                disclosures required under paragraph (1) are accurate 
                and in compliance with all State laws is published in 
                the Federal Register.''.