II 

115TH CONGRESS 

1ST SESSION S. 2013 

To amend the Truth in Lending Act to provide a safe harbor from certain 

requirements related to qualified mortgages for residential mortgage 

loans held on an originating depository institution’s portfolio, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 26, 2017 

Mr. PERDUE introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Truth in Lending Act to provide a safe harbor 

from certain requirements related to qualified mortgages 

for residential mortgage loans held on an originating 

depository institution’s portfolio, 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 ‘‘Portfolio Lending and 

5 Mortgage Access Act’’. 


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1 SEC. 2. SAFE HARBOR FOR CERTAIN LOANS HELD ON 

2 PORTFOLIO. 

3 (a) IN GENERAL.—Section 129C of the Truth in 

4 Lending Act (15 U.S.C. 1639c) is amended by adding at 

5 the end the following: 

6 ‘‘(j) SAFE HARBOR FOR CERTAIN LOANS HELD ON

7 PORTFOLIO.— 

8 ‘‘(1) SAFE HARBOR FOR CREDITORS THAT ARE

9 DEPOSITORY INSTITUTIONS.— 

10 ‘‘(A) IN GENERAL.—A creditor that is a 

11 depository institution shall not be subject to 

12 suit for failure to comply with subsection (a), 

13 (c)(1), or (f)(2) of this section or section 129H 

14 with respect to a residential mortgage loan, and 

15 the banking regulators shall treat such loan as 

16 a qualified mortgage, if— 

17 ‘‘(i) the creditor has, since the origi18 nation of the loan, held the loan on the 

19 balance sheet of the creditor; and 

20 ‘‘(ii) all prepayment penalties with re21 spect to the loan comply with the limita22 tions described under subsection (c)(3). 

23 ‘‘(B) EXCEPTION FOR CERTAIN TRANS24 FERS.—In the case of a depository institution 

25 that transfers a loan originated by that institu26 tion to another depository institution by reason 


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1 of the bankruptcy or failure of the originating 

2 depository institution or the purchase of the 

3 originating depository institution, the depository 

4 institution transferring such loan shall be 

5 deemed to have complied with the requirement 

6 under subparagraph (A)(i). 

7 ‘‘(2) SAFE HARBOR FOR MORTGAGE ORIGINA8 TORS.—A mortgage originator shall not be subject 

9 to suit for a violation of section 129B(c)(3)(B) for 

10 steering a consumer to a residential mortgage loan 

11 if— 

12 ‘‘(A) the creditor of such loan is a deposi13 tory institution and has informed the mortgage 

14 originator that the creditor intends to hold the 

15 loan on the balance sheet of the creditor for the 

16 life of the loan; and 

17 ‘‘(B) the mortgage originator informs the 

18 consumer that the creditor intends to hold the 

19 loan on the balance sheet of the creditor for the 

20 life of the loan. 

21 ‘‘(3) DEFINITIONS.—For purposes of this sub22 section: 

23 ‘‘(A) BANKING REGULATORS.—The term 

24 ‘banking regulators’ means the Federal banking 


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1 agencies, the Bureau, and the National Credit 

2 Union Administration. 

3 ‘‘(B) DEPOSITORY INSTITUTION.—The 

4 term ‘depository institution’ has the meaning 

5 given that term under section 19(b)(1) of the 

6 Federal Reserve Act (12 U.S.C. 505(b)(1)). 

7 ‘‘(C) FEDERAL BANKING AGENCIES.—The 

8 term ‘Federal banking agencies’ has the mean9 ing given that term under section 3 of the Fed10 eral Deposit Insurance Act.’’. 

11 (b) RULE OF CONSTRUCTION.—Nothing in the 

12 amendment made by this Act may be construed as pre13 venting a balloon loan from qualifying for the safe harbor 

14 provided under section 129C(j) of the Truth in Lending 

15 Act if the balloon loan otherwise meets all of the require16 ments under such subsection (j), regardless of whether the 

17 balloon loan meets the requirements described under 

18 clauses (i) through (iv) of section 129C(b)(2)(E) of such 

19 Act. 

Æ 


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