II 

115TH CONGRESS 

1ST SESSION S. 1002 

To enhance the ability of community financial institutions to foster economic 

growth and serve their communities, boost small businesses, increase 

individual savings, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 2, 2017 

Mr. MORAN (for himself, Mr. TESTER, Ms. HEITKAMP, and Mr. TILLIS) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To enhance the ability of community financial institutions 

to foster economic growth and serve their communities, 

boost small businesses, increase individual savings, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Community Lending 

5 Enhancement and Regulatory Relief Act of 2017’’ or the 

6 ‘‘CLEAR Relief Act of 2017’’. 


lotter on DSK5VPTVN1PROD with BILLS
2 

•S 1002 IS

1 SEC. 2. COMMUNITY BANK EXEMPTION FROM ANNUAL 

2 MANAGEMENT ASSESSMENT OF INTERNAL 

3 CONTROLS REQUIREMENT OF THE SAR4 BANES-OXLEY ACT OF 2002. 

5 Section 404 of the Sarbanes-Oxley Act of 2002 (15 

6 U.S.C. 7262) is amended by adding at the end the fol7 lowing: 

8 ‘‘(d) COMMUNITY BANK EXEMPTION.— 

9 ‘‘(1) DEFINITIONS.—In this subsection— 

10 ‘‘(A) the term ‘bank holding company’ has 

11 the meaning given the term in section 2 of the 

12 Bank Holding Company Act of 1956 (12 

13 U.S.C. 1841); 

14 ‘‘(B) the term ‘insured depository institu15 tion’ has the meaning given the term in section 

16 3 of the Federal Deposit Insurance Act (12 

17 U.S.C. 1813); and 

18 ‘‘(C) the term ‘savings and loan holding 

19 company’ has the meaning given the term in 

20 section 10(a) of the Home Owners’ Loan Act 

21 (12 U.S.C. 1467a(a)). 

22 ‘‘(2) IN GENERAL.—This section and the rules 

23 prescribed under this section shall not apply in any 

24 fiscal year to any bank holding company, savings 

25 and loan holding company, or insured depository in26 stitution that, as of the end of the preceding fiscal 


lotter on DSK5VPTVN1PROD with BILLS
3 

•S 1002 IS

1 year, had total consolidated assets of 

2 $1,000,000,000 or less. 

3 ‘‘(3) ADJUSTMENT OF AMOUNT.—The Commis4 sion shall annually adjust the dollar amount in para5 graph (1) by an amount equal to the percentage in6 crease, for the most recent year, in total assets held 

7 by all bank holding companies, savings and loan 

8 holding companies, and insured depository institu9 tions, as reported by the Federal Deposit Insurance 

10 Corporation.’’. 

11 SEC. 3. ESCROW REQUIREMENTS RELATING TO CERTAIN 

12 CONSUMER CREDIT TRANSACTIONS. 

13 Section 129D(c) of the Truth in Lending Act (15 

14 U.S.C. 1639d(c)) is amended— 

15 (1) by redesignating paragraphs (1) through 

16 (4) as subparagraphs (A) through (D), respectively, 

17 and adjusting the margins accordingly; 

18 (2) by striking ‘‘The Bureau’’ and inserting the 

19 following: 

20 ‘‘(1) IN GENERAL.—The Bureau’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(2) TREATMENT OF LOANS HELD BY SMALLER

23 INSTITUTIONS.—The Bureau shall, by regulation, 

24 exempt from the requirements of subsection (a) any 

25 loan secured by a first lien on the principal dwelling 


lotter on DSK5VPTVN1PROD with BILLS
4 

•S 1002 IS

1 of a consumer, if such loan is held by an insured de2 pository institution having assets of 

3 $10,000,000,000 or less.’’. 

4 SEC. 4. MINIMUM STANDARDS FOR RESIDENTIAL MORT5 GAGE LOANS. 

6 Section 129C(b)(2) of the Truth in Lending Act (15 

7 U.S.C. 1639c(b)(2)) is amended by adding at the end the 

8 following: 

9 ‘‘(F) SAFE HARBOR.— 

10 ‘‘(i) IN GENERAL.—In this section— 

11 ‘‘(I) the term ‘qualified mort12 gage’ includes any mortgage loan that 

13 is originated and retained in portfolio 

14 for a period of not less than 3 years 

15 by a depository institution together 

16 with its affiliates has less than 

17 $10,000,000,000 in total consolidated 

18 assets; and 

19 ‘‘(II) loans described in subclause 

20 (I) shall be deemed to meet the re21 quirements of subsection (a). 

22 ‘‘(ii) EXCEPTION FOR CERTAIN

23 TRANSFER.—In the case of a depository 

24 institution that transfers a loan originated 

25 by that institution to another depository 


lotter on DSK5VPTVN1PROD with BILLS
5 

•S 1002 IS

1 institution by reason of the bankruptcy or 

2 failure of the originating depository insti3 tution or the purchase of the originating 

4 depository institution, the depository insti5 tution acquiring the loan shall be deemed 

6 to have complied with the requirement 

7 under clause (i)(I).’’. 

8 SEC. 5. EXEMPTION FROM VOLCKER RULE. 

9 Section 13(h)(1) of the Bank Holding Company Act 

10 of 1956 (12 U.S.C. 1851(h)(1)) is amended— 

11 (1) in subparagraph (D), by redesignating 

12 clauses (i) and (ii) as subclauses (I) and (II), respec13 tively; 

14 (2) by redesignating subparagraphs (A) through 

15 (D) as clauses (i) through (iv), respectively; 

16 (3) by striking ‘‘institution that functions solely 

17 in a trust or fiduciary capacity, if—’’ and inserting 

18 the following: ‘‘institution— 

19 ‘‘(A) that functions solely in a trust or fi20 duciary capacity, if—’’; and 

21 (4) in clause (iv)(II), as redesignated, by strik22 ing the period at the end and inserting the following: 

23 ‘‘; or 

24 ‘‘(B) with total consolidated assets of 

25 $10,000,000,000 or less.’’. 


lotter on DSK5VPTVN1PROD with BILLS
6 

•S 1002 IS

1 SEC. 6. NO WAIT FOR LOWER MORTGAGE RATES. 

2 (a) IN GENERAL.—Section 129(b) of the Truth in 

3 Lending Act (15 U.S.C. 1639(b)) is amended— 

4 (1) by redesignating paragraph (3) as para5 graph (4); and 

6 (2) by inserting after paragraph (2) the fol7 lowing: 

8 ‘‘(3) NO WAIT FOR LOWER RATE.—If a creditor 

9 extends to a consumer a second offer of credit with 

10 a lower annual percentage rate, the transaction may 

11 be consummated without regard to the period speci12 fied in paragraph (1).’’. 

13 (b) SAFE HARBOR FOR GOOD FAITH COMPLIANCE

14 WITH TILA-RESPA INTEGRATED DISCLOSURE RULE.— 

15 Section 1032(f) of the Consumer Financial Protection Act 

16 of 2010 (12 U.S.C. 5532(f)) is amended— 

17 (1) by striking ‘‘Not later than’’ and inserting 

18 the following: 

19 ‘‘(1) IN GENERAL.—Not later than’’; and 

20 (2) by adding at the end the following: 

21 ‘‘(2) SAFE HARBOR FOR GOOD FAITH COMPLI22 ANCE.— 

23 ‘‘(A) SAFE HARBOR.—Notwithstanding 

24 any other provision of law, during the period 

25 described in subparagraph (B), an entity that 

26 provides the disclosures required under the 


lotter on DSK5VPTVN1PROD with BILLS
7 

•S 1002 IS

1 Truth in Lending Act (15 U.S.C. 1601 et seq.) 

2 and sections 4 and 5 of the Real Estate Settle3 ment Procedures Act of 1974 (12 U.S.C. 2603 

4 and 2604), as in effect on July 31, 2017, shall 

5 not be subject to any civil, criminal, or adminis6 trative action or penalty for failure to fully 

7 comply with any requirement under this sub8 section. 

9 ‘‘(B) APPLICABLE PERIOD.—Subparagraph 

10 (A) shall apply to an entity during the period 

11 beginning on the date of enactment of this 

12 paragraph and ending on the date that is 30 

13 days after the date on which a certification by 

14 the Director that the model disclosures required 

15 under paragraph (1) are accurate and in com16 pliance with all State laws is published in the 

17 Federal Register.’’. 

Æ 


lotter on DSK5VPTVN1PROD with BILLS