I 

115TH CONGRESS 

1ST SESSION H. R. 2226 

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 

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, 


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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. SAFE HARBOR FOR CERTAIN LOANS HELD ON 

5 PORTFOLIO. 

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

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

8 the end the following: 

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

10 PORTFOLIO.— 

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

12 DEPOSITORY INSTITUTIONS.— 

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

14 depository institution shall not be subject to 

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

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

17 with respect to a residential mortgage loan, and 

18 the banking regulators shall treat such loan as 

19 a qualified mortgage, if— 

20 ‘‘(i) the creditor has, since the origi21 nation of the loan, held the loan on the 

22 balance sheet of the creditor; and 

23 ‘‘(ii) all prepayment penalties with re24 spect to the loan comply with the limita25 tions described under subsection (c)(3). 


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1 ‘‘(B) EXCEPTION FOR CERTAIN TRANS2 FERS.—In the case of a depository institution 

3 that transfers a loan originated by that institu4 tion to another depository institution by reason 

5 of the bankruptcy or failure of the originating 

6 depository institution or the purchase of the 

7 originating depository institution, the depository 

8 institution transferring such loan shall be 

9 deemed to have complied with the requirement 

10 under subparagraph (A)(i). 

11 ‘‘(2) SAFE HARBOR FOR MORTGAGE ORIGINA12 TORS.—A mortgage originator shall not be subject 

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

14 steering a consumer to a residential mortgage loan 

15 if— 

16 ‘‘(A) the creditor of such loan is a deposi17 tory institution and has informed the mortgage 

18 originator that the creditor intends to hold the 

19 loan on the balance sheet of the creditor for the 

20 life of the loan; and 

21 ‘‘(B) the mortgage originator informs the 

22 consumer that the creditor intends to hold the 

23 loan on the balance sheet of the creditor for the 

24 life of the loan. 


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1 ‘‘(3) DEFINITIONS.—For purposes of this sub2 section: 

3 ‘‘(A) BANKING REGULATORS.—The term 

4 ‘banking regulators’ means the Federal banking 

5 agencies, the Bureau, and the National Credit 

6 Union Administration. 

7 ‘‘(B) DEPOSITORY INSTITUTION.—The 

8 term ‘depository institution’ has the meaning 

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

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

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

12 term ‘Federal banking agencies’ has the mean13 ing given that term under section 3 of the Fed14 eral Deposit Insurance Act.’’. 

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

16 amendment made by this Act may be construed as pre17 venting a balloon loan from qualifying for the safe harbor 

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

19 Act if the balloon loan otherwise meets all of the require20 ments under such subsection (j), regardless of whether the 

21 balloon loan meets the requirements described under 

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

23 Act. 

Æ 


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