II 

114TH CONGRESS 

1ST SESSION S. 1491 

To provide sensible relief to community financial institutions, to protect 

consumers, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 3, 2015 

Mr. BROWN (for himself, Mr. REED, Mr. SCHUMER, Mr. MENENDEZ, Mr. 

TESTER, Mr. WARNER, Mr. MERKLEY, Ms. WARREN, Ms. HEITKAMP, 

and Mr. DONNELLY) introduced the following bill; which was read twice 

and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide sensible relief to community financial institutions, 

to protect consumers, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Community Lender Regulatory Relief and Consumer 

6 Protection Act of 2015’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—HELPING COMMUNITY LENDERS 


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Sec. 101. Community bank and credit union portfolio lending. 

Sec. 102. Exception to annual written privacy notice requirement under the 

Gramm-Leach-Bliley Act. 

Sec. 103. Expansion of threshold for 18-month on-site examination cycle. 

Sec. 104. Privately insured credit unions authorized to become members of a 

Federal home loan bank. 

Sec. 105. Registration threshold for savings and loan holding companies. 

Sec. 106. Transitional license authority. 

TITLE II—PROTECTING CONSUMERS 

Sec. 201. Protecting servicemembers. 

Sec. 202. Restoration of the Protecting Tenants at Foreclosure Act of 2009. 

Sec. 203. Confidentiality of information shared between State and Federal financial services regulators. 

1 TITLE I—HELPING COMMUNITY 

2 LENDERS 

3 SEC. 101. COMMUNITY BANK AND CREDIT UNION PORT4 FOLIO LENDING. 

5 Section 129C(b)(2) of the Truth in Lending Act (15 

6 U.S.C. 1639c(b)(2)) is amended by adding at the end the 

7 following: 

8 ‘‘(F) SAFE HARBOR.— 

9 ‘‘(i) IN GENERAL.—In this section— 

10 ‘‘(I) the term ‘qualified mort11 gage’, as defined in subparagraph (A), 

12 includes any residential mortgage 

13 loan— 

14 ‘‘(aa) that is originated by a 

15 covered institution and continu16 ously retained in portfolio by the 

17 covered institution; 


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1 ‘‘(bb) that, except as pro2 vided in subparagraph (E), fully 

3 amortizes over a term of not 

4 longer than 30 years; 

5 ‘‘(cc) that complies with— 

6 ‘‘(AA) the requirements 

7 of clauses (i), (ii), (iii), (iv), 

8 (v), and (vii) of subpara9 graph (A); and 

10 ‘‘(BB) any require11 ments consistent with the 

12 purposes described in para13 graph (3)(B)(i); 

14 ‘‘(dd) for which the covered 

15 institution, at or before con16 summation of the residential 

17 mortgage loan, takes into ac18 count and verifies the monthly 

19 debt and income of the consumer; 

20 and 

21 ‘‘(ee) that is not considered 

22 a high-cost mortgage; and 

23 ‘‘(II) a residential mortgage loan 

24 that meets the requirements of sub25 clause (I) shall be deemed to meet the 


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1 requirements of subsection (a) until 

2 the residential mortgage loan no 

3 longer meets the requirements of sub4 clause (I). 

5 ‘‘(ii) DEFINITION.—In this subpara6 graph, the term ‘covered institution’ 

7 means— 

8 ‘‘(I) an insured depository insti9 tution or insured credit union that— 

10 ‘‘(aa) at the time of origina11 tion of the residential mortgage 

12 loan, together with its affiliates, 

13 has less than $2,000,000,000 in 

14 total consolidated assets; and 

15 ‘‘(bb) during the calendar 

16 year preceding the time of origi17 nation of the residential mort18 gage loan, originated not more 

19 than 2,000 residential mortgage 

20 loans that were— 

21 ‘‘(AA) sold, assigned, or 

22 otherwise transferred to an23 other person; or 

24 ‘‘(BB) subject to, at 

25 the time of consummation, a 


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1 commitment to be acquired 

2 by another person; or 

3 ‘‘(II) an insured depository insti4 tution or insured credit union that, at 

5 the time of origination of the residen6 tial mortgage loan— 

7 ‘‘(aa) together with its affili8 ates, has more than 

9 $2,000,000,000 and less than 

10 $10,000,000,000 in total consoli11 dated assets; 

12 ‘‘(bb) is not considered a 

13 specialty bank, such as a bank 

14 that offers only a narrow product 

15 line (including credit card or 

16 motor vehicle loans) to a regional 

17 or broader market; 

18 ‘‘(cc) engages in the basic 

19 activities of lending and deposit 

20 taking as a significant percentage 

21 of total assets; 

22 ‘‘(dd) has a limited geo23 graphic scope; and 

24 ‘‘(ee) meets any other cri25 teria as determined by the BuVerDate Sep 11 2014 02:14 Jun 04, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1491.IS S1491

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1 reau, including restrictions on 

2 the volume of residential mort3 gage loans— 

4 ‘‘(AA) sold, assigned, or 

5 otherwise transferred to an6 other person; or 

7 ‘‘(BB) subject to, at 

8 the time of consummation, a 

9 commitment to be acquired 

10 by another person.’’. 

11 SEC. 102. EXCEPTION TO ANNUAL WRITTEN PRIVACY NO12 TICE REQUIREMENT UNDER THE GRAMM13 LEACH-BLILEY ACT. 

14 Section 503 of the Gramm-Leach-Bliley Act (15 

15 U.S.C. 6803) is amended by adding at the end the fol16 lowing: 

17 ‘‘(f) EXCEPTION TO ANNUAL WRITTEN NOTICE RE18 QUIREMENT.— 

19 ‘‘(1) IN GENERAL.—A financial institution de20 scribed in paragraph (2) shall not be required to 

21 provide an annual written disclosure under this sec22 tion until such time as the financial institution fails 

23 to comply with subparagraph (A), (B), or (C) of 

24 paragraph (2). 


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1 ‘‘(2) COVERED INSTITUTIONS.—A financial in2 stitution described in this paragraph is a financial 

3 institution that— 

4 ‘‘(A) provides nonpublic personal informa5 tion only in accordance with the provisions of 

6 subsection (b)(2) or (e) of section 502 or regu7 lations prescribed under section 504(b); 

8 ‘‘(B) has not changed its policies and prac9 tices with respect to disclosing nonpublic per10 sonal information from the policies and prac11 tices that were disclosed in the most recent dis12 closure sent to consumers in accordance with 

13 this section; and 

14 ‘‘(C) otherwise provides customers access 

15 to such most recent disclosure in electronic or 

16 other form permitted by regulations prescribed 

17 under section 504.’’. 

18 SEC. 103. EXPANSION OF THRESHOLD FOR 18-MONTH ON19 SITE EXAMINATION CYCLE. 

20 Section 10(d) of the Federal Deposit Insurance Act 

21 (12 U.S.C. 1820(d)) is amended— 

22 (1) in paragraph (4)(A), by striking 

23 ‘‘$500,000,000’’ and inserting ‘‘$1,000,000,000’’; 

24 and 


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1 (2) in paragraph (10), by striking 

2 ‘‘$500,000,000’’ and inserting ‘‘$1,000,000,000’’. 

3 SEC. 104. PRIVATELY INSURED CREDIT UNIONS AUTHOR4 IZED TO BECOME MEMBERS OF A FEDERAL 

5 HOME LOAN BANK. 

6 (a) IN GENERAL.—Section 4(a) of the Federal Home 

7 Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 

8 at the end the following: 

9 ‘‘(5) CERTAIN PRIVATELY INSURED CREDIT

10 UNIONS.— 

11 ‘‘(A) IN GENERAL.—Subject to the re12 quirements of subparagraph (B), a credit union 

13 that lacks insurance of its member accounts 

14 under Federal law shall be treated as an in15 sured depository institution for purposes of this 

16 Act. 

17 ‘‘(B) CERTIFICATION BY APPROPRIATE

18 STATE SUPERVISOR.—For purposes of this 

19 paragraph, a credit union that lacks insurance 

20 of its member accounts under Federal law and 

21 that has applied for membership in a Federal 

22 home loan bank shall be treated as an insured 

23 depository institution if the following has oc24 curred: 


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1 ‘‘(i) DETERMINATION BY STATE SU2 PERVISOR OF THE CREDIT UNION.— 

3 ‘‘(I) IN GENERAL.—Subject to 

4 subclause (II), the appropriate super5 visor of the State in which the credit 

6 union is chartered has determined 

7 that the credit union meets all the eli8 gibility requirements under section 

9 201(a) of the Federal Credit Union 

10 Act (12 U.S.C. 1781(a)) to apply for 

11 insurance of its member accounts as 

12 of the date of the application for 

13 membership. 

14 ‘‘(II) CERTIFICATION DEEMED

15 VALID.—In the case of any credit 

16 union to which subclause (I) applies, 

17 if the appropriate supervisor of the 

18 State in which such credit union is 

19 chartered fails to make the determina20 tion required pursuant to such sub21 clause by the end of the 12-month pe22 riod beginning on the date on which 

23 the application is submitted to the su24 pervisor, the credit union shall be 


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1 deemed to have met the requirements 

2 of subclause (I). 

3 ‘‘(ii) DETERMINATION BY STATE SU4 PERVISOR OF THE PRIVATE DEPOSIT IN5 SURER.—The licensing entity of the pri6 vate deposit insurer that is insuring the 

7 member accounts of the credit union— 

8 ‘‘(I) receives, on an annual basis, 

9 an independent actuarial opinion that 

10 the private insurer has set aside suffi11 cient reserves for losses; and 

12 ‘‘(II) obtains, as frequently as 

13 appropriate, but not less frequently 

14 than every 36 months, an independent 

15 actuary’s study of the capital ade16 quacy of the private insurer. 

17 ‘‘(iii) SUBMISSION OF FINANCIAL IN18 FORMATION.—The credit union or the ap19 propriate supervisor of the State in which 

20 such credit union is chartered makes avail21 able, and continues to make available for 

22 such time as the credit union is a member 

23 of a Federal home loan bank, to the Fed24 eral Housing Finance Agency or to the 

25 Federal home loan bank all reports, 


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1 records, and other information related to 

2 any examinations or inquiries performed 

3 by the supervisor concerning the financial 

4 condition of the credit union, as soon as is 

5 practicable. 

6 ‘‘(C) SECURITY INTERESTS OF FEDERAL

7 HOME LOAN BANK NOT AVOIDABLE.—Notwith8 standing any provision of State law authorizing 

9 a conservator or liquidating agent of a credit 

10 union to repudiate contracts, no such provision 

11 shall apply with respect to— 

12 ‘‘(i) any extension of credit from any 

13 Federal home loan bank to any credit 

14 union that is a member of any such bank 

15 pursuant to this paragraph; or 

16 ‘‘(ii) any security interest in the as17 sets of such a credit union securing any 

18 such extension of credit. 

19 ‘‘(D) PROTECTION FOR CERTAIN FEDERAL

20 HOME LOAN BANK ADVANCES.—Notwith21 standing any State law to the contrary, if a 

22 Bank makes an advance under section 10 to a 

23 State-chartered credit union that is not feder24 ally insured— 


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1 ‘‘(i) the Bank’s interest in any collat2 eral securing the advance has the same 

3 priority and is afforded the same standing 

4 and rights that the security interest would 

5 have had if the advance had been made to 

6 a federally insured credit union; and 

7 ‘‘(ii) the Bank has the same right to 

8 access such collateral that the Bank would 

9 have had if the advance had been made to 

10 a federally insured credit union.’’. 

11 (b) COPIES OF AUDITS OF PRIVATE INSURERS OF

12 CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE

13 PROVIDED TO SUPERVISORY AGENCIES.—Section 

14 43(a)(2)(A) of the Federal Deposit Insurance Act (12 

15 U.S.C. 1831t(a)(2)(A)) is amended— 

16 (1) in clause (i), by striking ‘‘; and’’ and insert17 ing a semicolon; 

18 (2) in clause (ii), by striking the period at the 

19 end and inserting ‘‘; and’’; and 

20 (3) by adding at the end the following: 

21 ‘‘(iii) in the case of depository institu22 tions described in subsection (e)(2)(A), the 

23 member accounts of which are insured by 

24 the private deposit insurer, which are 

25 members of a Federal home loan bank, to 


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1 the Federal Housing Finance Agency, not 

2 later than 7 days after the audit is com3 pleted.’’. 

4 (c) GAO REPORT.—Not later than 18 months after 

5 the date of enactment of this Act, the Comptroller General 

6 of the United States shall conduct a study and submit a 

7 report to Congress— 

8 (1) on the adequacy of insurance reserves held 

9 by a private deposit insurer that insures the member 

10 accounts of an entity described in section 

11 43(e)(2)(A) of the Federal Deposit Insurance Act 

12 (12 U.S.C. 1831t(e)(2)(A)); and 

13 (2) for an entity described in paragraph (1), 

14 the member accounts of which are insured by a pri15 vate deposit insurer, information on the level of com16 pliance with Federal regulations relating to the dis17 closure of a lack of Federal deposit insurance. 

18 SEC. 105. REGISTRATION THRESHOLD FOR SAVINGS AND 

19 LOAN HOLDING COMPANIES. 

20 The Securities Exchange Act of 1934 (15 U.S.C. 78a 

21 et seq.) is amended— 

22 (1) in section 12(g)— 

23 (A) in paragraph (1)(B), by inserting after 

24 ‘‘is a bank’’ the following: ‘‘, a savings and loan 

25 holding company (as such term is defined in 


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1 section 10 of the Home Owners’ Loan Act (12 

2 U.S.C. 1467a(a))),’’; and 

3 (B) in paragraph (4), by inserting after 

4 ‘‘case of a bank’’ the following: ‘‘, a savings and 

5 loan holding company (as such term is defined 

6 in section 10 of the Home Owners’ Loan Act 

7 (12 U.S.C. 1467a(a))),’’; and 

8 (2) in section 15(d)(1), by striking ‘‘case of 

9 bank’’ and inserting the following: ‘‘case of a bank, 

10 a savings and loan holding company (as such term 

11 is defined in section 10 of the Home Owners’ Loan 

12 Act (12 U.S.C. 1467a(a))),’’. 

13 SEC. 106. TRANSITIONAL LICENSE AUTHORITY. 

14 Section 1504 of the S.A.F.E. Mortgage Licensing Act 

15 of 2008 (12 U.S.C. 5103) is amended— 

16 (1) in subsection (a), by inserting after ‘‘as the 

17 case may be,’’ the following: ‘‘and except as provided 

18 in subsection (c),’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(c) TRANSITIONAL AUTHORITY.— 

21 ‘‘(1) DEFINITION.—In this subsection, the term 

22 ‘covered registered loan originator’ means a reg23 istered loan originator who— 

24 ‘‘(A) submits the information required 

25 under section 1505(a); and 


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1 ‘‘(B) during the 30-day period preceding 

2 the date of such submission, met the standard 

3 of being qualified under section 129B(b)(1)(A) 

4 of the Truth in Lending Act (15 U.S.C. 

5 1639b(b)(1)(A)). 

6 ‘‘(2) AUTHORITY.—Notwithstanding the re7 quirements of subsections (b) through (e) of section 

8 1505, a State may permit a covered registered loan 

9 originator to act as a loan originator, under the su10 pervision of a non-depository firm that engages in 

11 loan origination in that State, for the 120-day pe12 riod beginning on the date on which the covered reg13 istered loan originator submits the information re14 quired under section 1505(a). 

15 ‘‘(3) LIMITATION.—A covered registered loan 

16 originator may not act as a loan originator under 

17 paragraph (2) after the date on which the 120-day 

18 period described in that paragraph expires.’’. 

19 TITLE II—PROTECTING 

20 CONSUMERS 

21 SEC. 201. PROTECTING SERVICEMEMBERS. 

22 Section 1002(12) of the Consumer Financial Protec23 tion Act of 2010 (12 U.S.C. 5481(12)) is amended— 

24 (1) in subparagraph (Q), by striking ‘‘; and’’ 

25 and inserting a semicolon; 


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1 (2) in subparagraph (R), by striking the period 

2 at the end and inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(S) sections 101, 107 (except with respect 

5 to bailments), 108 (except with respect to in6 surance), 201 (except with respect to child cus7 tody proceedings), 207, 301, 302, 303, 305, 

8 and 305A of the Servicemembers Civil Relief 

9 Act (50 U.S.C. App. 511, 517, 518, 521, 527, 

10 531, 532, 533, 535, and 535a).’’. 

11 SEC. 202. RESTORATION OF THE PROTECTING TENANTS AT 

12 FORECLOSURE ACT OF 2009. 

13 (a) REPEAL OF SUNSET PROVISION.—Section 704 of 

14 the Protecting Tenants at Foreclosure Act of 2009 (12 

15 U.S.C. 5201 note; 12 U.S.C. 5220 note; 42 U.S.C. 1437f 

16 note) is repealed. 

17 (b) RESTORATION.—Sections 701 through 703 of 

18 such Act, the provisions of law amended or repealed by 

19 such sections, and any regulations promulgated pursuant 

20 to such sections, as were in effect on December 31, 2014, 

21 are restored and revived as if the sunset provision in sec22 tion 704 had not taken effect. 


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1 SEC. 203. CONFIDENTIALITY OF INFORMATION SHARED BE2 TWEEN STATE AND FEDERAL FINANCIAL 

3 SERVICES REGULATORS. 

4 Section 1512(a) of the S.A.F.E. Mortgage Licensing 

5 Act of 2008 (12 U.S.C. 5111(a)) is amended by inserting 

6 ‘‘or financial services’’ before ‘‘industry’’. 

Æ 


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