I 

114TH CONGRESS 

1ST SESSION H. R. 2642 

To provide sensible relief to community financial institutions, to protect 

consumers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 3, 2015 

Ms. MAXINE WATERS of California (for herself, Mr. CARNEY, Mr. AL GREEN

of Texas, Mr. FOSTER, Mr. SHERMAN, Mrs. CAROLYN B. MALONEY of 

New York, Mr. KILDEE, Mr. DAVID SCOTT of Georgia, Mr. HECK of 

Washington, Mr. PERLMUTTER, Mr. CLEAVER, Mr. MEEKS, Ms. MOORE, 

Mr. HIMES, Mr. DELANEY, Mrs. BEATTY, Mr. VARGAS, Mr. ELLISON, 

Ms. SINEMA, Mr. CAPUANO, Ms. VELA ́ZQUEZ, Mr. MURPHY of Florida, 

Mr. HINOJOSA, Mr. LYNCH, Ms. SEWELL of Alabama, and Mr. CLAY) 

introduced the following bill; which was referred to the Committee on Financial Services 

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’’. 

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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—HELPING COMMUNITY LENDERS 

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. 

3 TITLE I—HELPING COMMUNITY 

4 LENDERS 

5 SEC. 101. COMMUNITY BANK AND CREDIT UNION PORT6 FOLIO LENDING. 

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

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

9 following: 

10 ‘‘(F) SAFE HARBOR.— 

11 ‘‘(i) IN GENERAL.—In this section— 

12 ‘‘(I) the term ‘qualified mort13 gage’, as defined in subparagraph (A), 

14 includes any residential mortgage 

15 loan— 

16 ‘‘(aa) that is originated by a 

17 covered institution and continumstockstill on DSK4VPTVN1PROD with BILLS

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1 ously retained in portfolio by the 

2 covered institution; 

3 ‘‘(bb) that, except as pro4 vided in subparagraph (E), fully 

5 amortizes over a term of not 

6 longer than 30 years; 

7 ‘‘(cc) that complies with— 

8 ‘‘(AA) the requirements 

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

10 (v), and (vii) of subpara11 graph (A); and 

12 ‘‘(BB) any require13 ments consistent with the 

14 purposes described in para15 graph (3)(B)(i); 

16 ‘‘(dd) for which the covered 

17 institution, at or before con18 summation of the residential 

19 mortgage loan, takes into ac20 count and verifies the monthly 

21 debt and income of the consumer; 

22 and 

23 ‘‘(ee) that is not considered 

24 a high-cost mortgage; and 

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1 ‘‘(II) a residential mortgage loan 

2 that meets the requirements of sub3 clause (I) shall be deemed to meet the 

4 requirements of subsection (a) until 

5 the residential mortgage loan no 

6 longer meets the requirements of sub7 clause (I). 

8 ‘‘(ii) DEFINITION.—In this subpara9 graph, the term ‘covered institution’ 

10 means— 

11 ‘‘(I) an insured depository insti12 tution or insured credit union that— 

13 ‘‘(aa) at the time of origina14 tion of the residential mortgage 

15 loan, together with its affiliates, 

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

17 total consolidated assets; and 

18 ‘‘(bb) during the calendar 

19 year preceding the time of origi20 nation of the residential mort21 gage loan, originated not more 

22 than 2,000 residential mortgage 

23 loans that were— 

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1 ‘‘(AA) sold, assigned, or 

2 otherwise transferred to an3 other person; or 

4 ‘‘(BB) subject to, at 

5 the time of consummation, a 

6 commitment to be acquired 

7 by another person; or 

8 ‘‘(II) an insured depository insti9 tution or insured credit union that, at 

10 the time of origination of the residen11 tial mortgage loan— 

12 ‘‘(aa) together with its affili13 ates, has more than 

14 $2,000,000,000 and less than 

15 $10,000,000,000 in total consoli16 dated assets; 

17 ‘‘(bb) is not considered a 

18 specialty bank, such as a bank 

19 that offers only a narrow product 

20 line (including credit card or 

21 motor vehicle loans) to a regional 

22 or broader market; 

23 ‘‘(cc) engages in the basic 

24 activities of lending and deposit 

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1 taking as a significant percentage 

2 of total assets; 

3 ‘‘(dd) has a limited geo4 graphic scope; and 

5 ‘‘(ee) meets any other cri6 teria as determined by the Bu7 reau, including restrictions on 

8 the volume of residential mort9 gage loans— 

10 ‘‘(AA) sold, assigned, or 

11 otherwise transferred to an12 other person; or 

13 ‘‘(BB) subject to, at 

14 the time of consummation, a 

15 commitment to be acquired 

16 by another person.’’. 

17 SEC. 102. EXCEPTION TO ANNUAL WRITTEN PRIVACY NO18 TICE REQUIREMENT UNDER THE GRAMM19 LEACH-BLILEY ACT. 

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

21 U.S.C. 6803) is amended by adding at the end the fol22 lowing: 

23 ‘‘(f) EXCEPTION TO ANNUAL WRITTEN NOTICE RE24 QUIREMENT.— 

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1 ‘‘(1) IN GENERAL.—A financial institution de2 scribed in paragraph (2) shall not be required to 

3 provide an annual written disclosure under this sec4 tion until such time as the financial institution fails 

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

6 paragraph (2). 

7 ‘‘(2) COVERED INSTITUTIONS.—A financial in8 stitution described in this paragraph is a financial 

9 institution that— 

10 ‘‘(A) provides nonpublic personal informa11 tion only in accordance with the provisions of 

12 subsection (b)(2) or (e) of section 502 or regu13 lations prescribed under section 504(b); 

14 ‘‘(B) has not changed its policies and prac15 tices with respect to disclosing nonpublic per16 sonal information from the policies and prac17 tices that were disclosed in the most recent dis18 closure sent to consumers in accordance with 

19 this section; and 

20 ‘‘(C) otherwise provides customers access 

21 to such most recent disclosure in electronic or 

22 other form permitted by regulations prescribed 

23 under section 504.’’. 

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1 SEC. 103. EXPANSION OF THRESHOLD FOR 18-MONTH ON2 SITE EXAMINATION CYCLE. 

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

4 (12 U.S.C. 1820(d)) is amended— 

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

6 ‘‘$500,000,000’’ and inserting ‘‘$1,000,000,000’’; 

7 and 

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

9 ‘‘$500,000,000’’ and inserting ‘‘$1,000,000,000’’. 

10 SEC. 104. PRIVATELY INSURED CREDIT UNIONS AUTHOR11 IZED TO BECOME MEMBERS OF A FEDERAL 

12 HOME LOAN BANK. 

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

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

15 at the end the following: 

16 ‘‘(5) CERTAIN PRIVATELY INSURED CREDIT

17 UNIONS.— 

18 ‘‘(A) IN GENERAL.—Subject to the re19 quirements of subparagraph (B), a credit union 

20 that lacks insurance of its member accounts 

21 under Federal law shall be treated as an in22 sured depository institution for purposes of this 

23 Act. 

24 ‘‘(B) CERTIFICATION BY APPROPRIATE

25 STATE SUPERVISOR.—For purposes of this 

26 paragraph, a credit union that lacks insurance 

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1 of its member accounts under Federal law and 

2 that has applied for membership in a Federal 

3 home loan bank shall be treated as an insured 

4 depository institution if the following has oc5 curred: 

6 ‘‘(i) DETERMINATION BY STATE SU7 PERVISOR OF THE CREDIT UNION.— 

8 ‘‘(I) IN GENERAL.—Subject to 

9 subclause (II), the appropriate super10 visor of the State in which the credit 

11 union is chartered has determined 

12 that the credit union meets all the eli13 gibility requirements under section 

14 201(a) of the Federal Credit Union 

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

16 insurance of its member accounts as 

17 of the date of the application for 

18 membership. 

19 ‘‘(II) CERTIFICATION DEEMED

20 VALID.—In the case of any credit 

21 union to which subclause (I) applies, 

22 if the appropriate supervisor of the 

23 State in which such credit union is 

24 chartered fails to make the determina25 tion required pursuant to such submstockstill on DSK4VPTVN1PROD with BILLS

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1 clause by the end of the 12-month pe2 riod beginning on the date on which 

3 the application is submitted to the su4 pervisor, the credit union shall be 

5 deemed to have met the requirements 

6 of subclause (I). 

7 ‘‘(ii) DETERMINATION BY STATE SU8 PERVISOR OF THE PRIVATE DEPOSIT IN9 SURER.—The licensing entity of the pri10 vate deposit insurer that is insuring the 

11 member accounts of the credit union— 

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

13 an independent actuarial opinion that 

14 the private insurer has set aside suffi15 cient reserves for losses; and 

16 ‘‘(II) obtains, as frequently as 

17 appropriate, but not less frequently 

18 than every 36 months, an independent 

19 actuary’s study of the capital ade20 quacy of the private insurer. 

21 ‘‘(iii) SUBMISSION OF FINANCIAL IN22 FORMATION.—The credit union or the ap23 propriate supervisor of the State in which 

24 such credit union is chartered makes avail25 able, and continues to make available for 

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1 such time as the credit union is a member 

2 of a Federal home loan bank, to the Fed3 eral Housing Finance Agency or to the 

4 Federal home loan bank all reports, 

5 records, and other information related to 

6 any examinations or inquiries performed 

7 by the supervisor concerning the financial 

8 condition of the credit union, as soon as is 

9 practicable. 

10 ‘‘(C) SECURITY INTERESTS OF FEDERAL

11 HOME LOAN BANK NOT AVOIDABLE.—Notwith12 standing any provision of State law authorizing 

13 a conservator or liquidating agent of a credit 

14 union to repudiate contracts, no such provision 

15 shall apply with respect to— 

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

17 Federal home loan bank to any credit 

18 union that is a member of any such bank 

19 pursuant to this paragraph; or 

20 ‘‘(ii) any security interest in the as21 sets of such a credit union securing any 

22 such extension of credit. 

23 ‘‘(D) PROTECTION FOR CERTAIN FEDERAL

24 HOME LOAN BANK ADVANCES.—Notwith25 standing any State law to the contrary, if a 

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1 Bank makes an advance under section 10 to a 

2 State-chartered credit union that is not feder3 ally insured— 

4 ‘‘(i) the Bank’s interest in any collat5 eral securing the advance has the same 

6 priority and is afforded the same standing 

7 and rights that the security interest would 

8 have had if the advance had been made to 

9 a federally insured credit union; and 

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

11 access such collateral that the Bank would 

12 have had if the advance had been made to 

13 a federally insured credit union.’’. 

14 (b) COPIES OF AUDITS OF PRIVATE INSURERS OF

15 CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE

16 PROVIDED TO SUPERVISORY AGENCIES.—Section 

17 43(a)(2)(A) of the Federal Deposit Insurance Act (12 

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

19 (1) in clause (i), by striking ‘‘and’’ at the end; 

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

21 end and inserting a semicolon; and 

22 (3) by inserting at the end the following: 

23 ‘‘(iii) in the case of depository institu24 tions described in subsection (e)(2)(A), the 

25 member accounts of which are insured by 

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1 the private deposit insurer, which are 

2 members of a Federal home loan bank, to 

3 the Federal Housing Finance Agency, not 

4 later than 7 days after the audit is com5 pleted.’’. 

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

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

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

9 report to Congress— 

10 (1) on the adequacy of insurance reserves held 

11 by a private deposit insurer that insures the member 

12 accounts of an entity described in section 

13 43(e)(2)(A) of the Federal Deposit Insurance Act 

14 (12 U.S.C. 1831t(e)(2)(A)); and 

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

16 the member accounts of which are insured by a pri17 vate deposit insurer, information on the level of com18 pliance with Federal regulations relating to the dis19 closure of a lack of Federal deposit insurance. 

20 SEC. 105. REGISTRATION THRESHOLD FOR SAVINGS AND 

21 LOAN HOLDING COMPANIES. 

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

23 et seq.) is amended— 

24 (1) in section 12(g)— 

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

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

3 holding company (as such term is defined in 

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

5 U.S.C. 1467a(a))),’’; and 

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

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

8 loan holding company (as such term is defined 

9 in section 10 of the Home Owners’ Loan Act 

10 (12 U.S.C. 1467a(a))),’’; and 

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

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

13 a savings and loan holding company (as such term 

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

15 Act (12 U.S.C. 1467a(a))),’’. 

16 SEC. 106. TRANSITIONAL LICENSE AUTHORITY. 

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

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

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

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

21 in subsection (c),’’; and 

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

23 ‘‘(c) TRANSITIONAL AUTHORITY.— 

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

2 ‘covered registered loan originator’ means a reg3 istered loan originator who— 

4 ‘‘(A) submits the information required 

5 under section 1505(a); and 

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

7 the date of such submission, met the standard 

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

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

10 1639b(b)(1)(A)). 

11 ‘‘(2) AUTHORITY.—Notwithstanding the re12 quirements of subsections (b) through (e) of section 

13 1505, a State may permit a covered registered loan 

14 originator to act as a loan originator, under the su15 pervision of a non-depository firm that engages in 

16 loan origination in that State, for the 120-day pe17 riod beginning on the date on which the covered reg18 istered loan originator submits the information re19 quired under section 1505(a). 

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

21 originator may not act as a loan originator under 

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

23 period described in that paragraph expires.’’. 

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1 TITLE II—PROTECTING 

2 CONSUMERS 

3 SEC. 201. PROTECTING SERVICEMEMBERS. 

4 Section 1002(12) of the Consumer Financial Protec5 tion Act of 2010 (12 U.S.C. 5481(12)) is amended— 

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

7 and inserting a semicolon; 

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

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

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

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

12 to bailments), 108 (except with respect to in13 surance), 201 (except with respect to child cus14 tody proceedings), 207, 301, 302, 303, 305, 

15 and 305A of the Servicemembers Civil Relief 

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

17 531, 532, 533, 535, and 535a).’’. 

18 SEC. 202. RESTORATION OF THE PROTECTING TENANTS AT 

19 FORECLOSURE ACT OF 2009. 

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

21 the Protecting Tenants at Foreclosure Act of 2009 (12 

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

23 note) is repealed. 

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

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

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1 such sections, and any regulations promulgated pursuant 

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

3 are restored and revived as if the sunset provision in sec4 tion 704 had not taken effect. 

5 SEC. 203. CONFIDENTIALITY OF INFORMATION SHARED BE6 TWEEN STATE AND FEDERAL FINANCIAL 

7 SERVICES REGULATORS. 

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

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

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

Æ 

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