II 

115TH CONGRESS 

1ST SESSION S. 1315 

To require the Bureau of Consumer Financial Protection to amend its 

regulations relating to qualified mortgages, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 8, 2017 

Ms. HEITKAMP (for herself and Mr. PORTMAN) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To require the Bureau of Consumer Financial Protection 

to amend its regulations relating to qualified mortgages, 

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 ‘‘Relationship Lending 

5 Preservation Act of 2017’’. 

6 SEC. 2. QUALIFIED MORTGAGE AMENDMENT. 

7 (a) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘affiliate’’ has the meaning given 

2 the term in section 2(k) of the Bank Holding Com3 pany Act of 1956 (12 U.S.C. 1841(k)); 

4 (2) the term ‘‘Bureau’’ means the Bureau of 

5 Consumer Financial Protection; 

6 (3) the terms ‘‘community financial institution’’ 

7 and ‘‘Federal Home Loan Bank System’’ have the 

8 meanings given those terms in section 2 of the Fed9 eral Home Loan Bank Act (12 U.S.C. 1422); 

10 (4) the term ‘‘creditor’’ has the meaning given 

11 that term in section 103 of the Truth in Lending 

12 Act (15 U.S.C. 1602); 

13 (5) the term ‘‘Federal Home Loan Bank’’ 

14 means a bank established under the authority of the 

15 Federal Home Loan Bank Act (12 U.S.C. 1421 et 

16 seq.); and 

17 (6) the term ‘‘qualified mortgage’’ has the 

18 meaning given the term in section 129C(b)(2)(A) of 

19 the Truth in Lending Act (15 U.S.C. 

20 1639c(b)(2)(A)). 

21 (b) REQUIREMENT TO ISSUE REGULATIONS.—Not 

22 later than 9 months after the date of enactment of this 

23 Act, the Bureau shall issue regulations that provide that 

24 the term ‘‘qualified mortgage’’ includes any mortgage loan 

25 that— 


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1 (1) is extended by a creditor that— 

2 (A) together with its affiliates, has less 

3 than $10,000,000,000 in total consolidated as4 sets; and 

5 (B) is a member of a Federal Home Loan 

6 Bank; 

7 (2) meets the requirements of clauses (i), (ii), 

8 (iv), (v), (vii), and (viii) of section 129C(b)(2)(A) of 

9 the Truth in Lending Act (15 U.S.C. 

10 1639c(b)(2)(A)); 

11 (3) is eligible to be purchased by a Federal 

12 Home Loan Bank pursuant to requirements estab13 lished by the Federal Home Loan Bank, including 

14 underwriting and documentation requirements; and 

15 (4) is eligible to be purchased and is held by a 

16 Federal Home Loan Bank pursuant to regulations 

17 issued by the Federal Housing Finance Agency. 

18 (c) ASSESSMENT OF REGULATIONS.— 

19 (1) IN GENERAL.—The Bureau shall conduct, 

20 in consultation with the Federal Housing Finance 

21 Agency, an assessment of the regulations issued 

22 under subsection (b), which shall— 

23 (A) address, among other relevant factors, 

24 the usage of the regulations by community fi25 nancial institutions, the impact of the regulaVerDate Sep 11 2014 23:40 Jun 13, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1315.IS S1315

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1 tions on access to residential mortgage loans, 

2 and whether the Federal Home Loan Banks 

3 have established underwriting and documenta4 tion requirements; and 

5 (B) reflect available evidence and any data 

6 that the Bureau reasonably may collect. 

7 (2) REPORT.—Not later than 4 years after the 

8 date on which the Bureau issues the regulations 

9 under subsection (b), the Bureau shall publish and 

10 submit to the Committee on Banking, Housing, and 

11 Urban Affairs of the Senate and the Committee on 

12 Financial Services of the House of Representatives 

13 a report on the assessment conducted under para14 graph (1). 

15 (3) PUBLIC COMMENT REQUIRED.—Before pub16 lishing the report under paragraph (2), the Bureau 

17 shall invite public comment on recommendations for 

18 modifying, expanding, or eliminating the regulations 

19 issued under subsection (b). 

20 (d) REVISION OF REGULATIONS.—Beginning 5 years 

21 after the date on which the Bureau issues the regulations 

22 under subsection (b), the Bureau may revise those regula23 tions if the Bureau determines that the revision is nec24 essary— 


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1 (1) to protect the safety of mortgage loan bor2 rowers or lenders; or 

3 (2) to increase access to mortgage credit. 

Æ 


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