IB 

Union Calendar No. 438 

115TH CONGRESS 

2D SESSION H. R. 2226 

[Report No. 115–578] 

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 HOUSE OF REPRESENTATIVES 

APRIL 28, 2017 

Mr. BARR (for himself, Mr. AMODEI, Mr. EMMER, Mr. HILL, Mr. HULTGREN, 

Mr. JOHNSON of Ohio, Mr. LUCAS, Mr. LUETKEMEYER, Mr. MARCHANT, 

Mr. MESSER, Mr. PEARCE, Mr. PITTENGER, Mr. POLIQUIN, Mr. ROYCE

of California, Mr. ROTHFUS, Mr. STEWART, Mr. STIVERS, Mr. TIPTON, 

Mrs. WAGNER, Mr. WALBERG, Mr. WILLIAMS, Mr. DAVIDSON, Mr. KING

of New York, Mr. LOUDERMILK, Mr. MCHENRY, Mr. POSEY, Mr. 

KUSTOFF of Tennessee, Mr. HUIZENGA, Mr. HOLLINGSWORTH, Mr. 

DUFFY, Mr. TROTT, and Mr. BLUM) introduced the following bill; which 

was referred to the Committee on Financial Services 

FEBRUARY 23, 2018 

Additional sponsors: Mr. ARRINGTON, Ms. TENNEY, Mr. ROSS, Mr. KING of 

Iowa, Mr. POE of Texas, Mr. COFFMAN, Mr. WOMACK, Mr. COLE, and 

Mr. BRENDAN F. BOYLE of Pennsylvania 

FEBRUARY 23, 2018 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 28, 2017] 


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•HR 2226 RH

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. 


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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’’. 

6 SEC. 2. MINIMUM STANDARDS FOR RESIDENTIAL MORT7 GAGE LOANS. 

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

9 U.S.C. 1639c(b)) is amended by adding at the end the fol10 lowing: 

11 ‘‘(4) SAFE HARBOR.— 

12 ‘‘(A) IN GENERAL.—A residential mortgage 

13 loan shall be deemed a qualified mortgage loan 

14 for purposes of this subsection if the loan— 

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

16 retained in the portfolio of, a covered insti17 tution; 

18 ‘‘(ii) is in compliance with the limita19 tions with respect to prepayment penalties 

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

21 ‘‘(iii) is in compliance with the re22 quirements related to points and fees under 

23 paragraph (2)(A)(vii); 

24 ‘‘(iv) does not have negative amortiza25 tion terms or interest-only terms; and 


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1 ‘‘(v) is a loan for which the covered in2 stitution considers, documents, and verifies 

3 the debt, income, and financial resources of 

4 the consumer in accordance with subpara5 graph (C). 

6 ‘‘(B) EXCEPTION FOR CERTAIN TRANS7 FERS.—Subparagraph (A) shall not apply to a 

8 residential mortgage loan if the legal title to such 

9 residential mortgage loan is sold, assigned, or 

10 otherwise transferred to another person unless 

11 the legal title to such residential mortgage loan 

12 is sold, assigned, or otherwise transferred— 

13 ‘‘(i) to another person by reason of the 

14 bankruptcy or failure of the covered institu15 tion that originated such loan; 

16 ‘‘(ii) to an insured depository institu17 tion or insured credit union that has less 

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

19 assets on the date of such sale, assignment, 

20 or transfer, if the loan is retained in port21 folio by such insured depository institution 

22 or insured credit union; 

23 ‘‘(iii) pursuant to a merger of the cov24 ered institution that originated such loan 

25 with another person or the acquisition of a 


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1 the covered institution that originated such 

2 loan by another person or of another person 

3 by a covered institution, if the loan is re4 tained in portfolio by the person to whom 

5 the loan is sold, assigned, or otherwise 

6 transferred; or 

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

8 the covered institution that originated such 

9 loan if the loan is considered to be an asset 

10 of such covered institution for regulatory 

11 accounting purposes. 

12 ‘‘(C) CONSIDERATION AND DOCUMENTATION

13 REQUIREMENTS.—The consideration and docu14 mentation requirements described in subpara15 graph (A)(v) shall— 

16 ‘‘(i) not be construed to require compli17 ance with, or documentation in accordance 

18 with, appendix Q to part 1026 of title 12, 

19 Code of Federal Regulations, or any suc20 cessor regulation; and 

21 ‘‘(ii) be construed to permit multiple 

22 methods of documentation. 

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

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

25 means an insured depository institution or 


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1 an insured credit union that, together with 

2 its affiliates, has less than $10,000,000,000 

3 in total consolidated assets on the date on 

4 the origination of a residential mortgage 

5 loan; 

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

7 has the meaning given the term in section 

8 101 of the Federal Credit Union Act (12 

9 U.S.C. 1752); 

10 ‘‘(iii) the term ‘insured depository in11 stitution’ has the meaning given the term in 

12 section 3 of the Federal Deposit Insurance 

13 Act (12 U.S.C. 1813); 

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

15 means a term of a residential mortgage loan 

16 that allows one or more of the periodic pay17 ments made under the loan to be applied 

18 solely to accrued interest and not to the 

19 principal of the loan; and 

20 ‘‘(v) the term ‘negative amortization 

21 term’ means a term of a residential mort22 gage loan under which the payment of peri23 odic payments will result in an increase in 

24 the principal of the loan.’’ 


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Union Calendar No. 438 

115TH CONGRESS 

2D SESSION H. R. 2226 

[Report No. 115–578] 

A BILL 

To amend the Truth in Lending Act to provide a 

tion’s portfolio, and for other purposes. loans held on an originating depository instituqualified mortgages for residential mortgage safe harbor from certain requirements related to 

FEBRUARY 23, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


SSpencer on DSKBBXCHB2PROD with BILLS