IIB 

115TH CONGRESS 

2D SESSION H. R. 2226 

IN THE SENATE OF THE UNITED STATES 

MARCH 7, 2018 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Portfolio Lending and 

3 Mortgage Access Act’’. 

4 SEC. 2. MINIMUM STANDARDS FOR RESIDENTIAL MORT5 GAGE LOANS. 

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

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

8 following: 

9 ‘‘(4) SAFE HARBOR.— 

10 ‘‘(A) IN GENERAL.—A residential mort11 gage loan shall be deemed a qualified mortgage 

12 loan for purposes of this subsection if the 

13 loan— 

14 ‘‘(i) is originated by, and continuously 

15 retained in the portfolio of, a covered insti16 tution; 

17 ‘‘(ii) is in compliance with the limita18 tions with respect to prepayment penalties 

19 described in subsections (c)(1) and (c)(3); 

20 ‘‘(iii) is in compliance with the re21 quirements related to points and fees 

22 under paragraph (2)(A)(vii); 

23 ‘‘(iv) does not have negative amortiza24 tion terms or interest-only terms; and 

25 ‘‘(v) is a loan for which the covered 

26 institution considers, documents, and 


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1 verifies the debt, income, and financial re2 sources of the consumer in accordance with 

3 subparagraph (C). 

4 ‘‘(B) EXCEPTION FOR CERTAIN TRANS5 FERS.—Subparagraph (A) shall not apply to a 

6 residential mortgage loan if the legal title to 

7 such residential mortgage loan is sold, assigned, 

8 or otherwise transferred to another person un9 less the legal title to such residential mortgage 

10 loan is sold, assigned, or otherwise trans11 ferred— 

12 ‘‘(i) to another person by reason of 

13 the bankruptcy or failure of the covered in14 stitution that originated such loan; 

15 ‘‘(ii) to an insured depository institu16 tion or insured credit union that has less 

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

18 assets on the date of such sale, assign19 ment, or transfer, if the loan is retained in 

20 portfolio by such insured depository insti21 tution or insured credit union; 

22 ‘‘(iii) pursuant to a merger of the cov23 ered institution that originated such loan 

24 with another person or the acquisition of a 

25 the covered institution that originated such 


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1 loan by another person or of another per2 son by a covered institution, if the loan is 

3 retained in portfolio by the person to whom 

4 the loan is sold, assigned, or otherwise 

5 transferred; or 

6 ‘‘(iv) to a wholly owned subsidiary of 

7 the covered institution that originated such 

8 loan if the loan is considered to be an asset 

9 of such covered institution for regulatory 

10 accounting purposes. 

11 ‘‘(C) CONSIDERATION AND DOCUMENTA12 TION REQUIREMENTS.—The consideration and 

13 documentation requirements described in sub14 paragraph (A)(v) shall— 

15 ‘‘(i) not be construed to require com16 pliance with, or documentation in accord17 ance with, appendix Q to part 1026 of title 

18 12, Code of Federal Regulations, or any 

19 successor regulation; and 

20 ‘‘(ii) be construed to permit multiple 

21 methods of documentation. 

22 ‘‘(D) DEFINITIONS.—In this paragraph— 

23 ‘‘(i) the term ‘covered institution’ 

24 means an insured depository institution or 

25 an insured credit union that, together with 


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1 its affiliates, has less than 

2 $10,000,000,000 in total consolidated as3 sets on the date on the origination of a 

4 residential mortgage loan; 

5 ‘‘(ii) the term ‘insured credit union’ 

6 has the meaning given the term in section 

7 101 of the Federal Credit Union Act (12 

8 U.S.C. 1752); 

9 ‘‘(iii) the term ‘insured depository in10 stitution’ has the meaning given the term 

11 in section 3 of the Federal Deposit Insur12 ance Act (12 U.S.C. 1813); 

13 ‘‘(iv) the term ‘interest-only term’ 

14 means a term of a residential mortgage 

15 loan that allows one or more of the peri16 odic payments made under the loan to be 

17 applied solely to accrued interest and not 

18 to the principal of the loan; and 

19 ‘‘(v) the term ‘negative amortization 

20 term’ means a term of a residential mort21 gage loan under which the payment of 


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1 periodic payments will result in an increase 

2 in the principal of the loan.’’. 

Passed the House of Representatives March 6, 

2018. 

Attest: KAREN L. HAAS, 

Clerk. 


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