II 

114TH CONGRESS 

1ST SESSION S. 812 

To enhance the ability of community financial institutions to foster economic 

growth and serve their communities, boost small businesses, increase 

individual savings, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 19, 2015 

Mr. MORAN (for himself, Mr. TESTER, Mr. INHOFE, Mr. PORTMAN, Mr. BARRASSO, and Ms. HEITKAMP) introduced the following bill; which was read 

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

Affairs 

A BILL 

To enhance the ability of community financial institutions 

to foster economic growth and serve their communities, 

boost small businesses, increase individual savings, 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. 

4 This Act may be cited as the ‘‘Community Lending 

5 Enhancement and Regulatory Relief Act of 2015’’ or the 

6 ‘‘CLEAR Relief Act of 2015’’. 


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1 SEC. 2. COMMUNITY BANK EXEMPTION FROM ANNUAL 

2 MANAGEMENT ASSESSMENT OF INTERNAL 

3 CONTROLS REQUIREMENT OF THE SAR4 BANES-OXLEY ACT OF 2002. 

5 Section 404 of the Sarbanes-Oxley Act of 2002 (15 

6 U.S.C. 7262) is amended by adding at the end the fol7 lowing: 

8 ‘‘(d) COMMUNITY BANK EXEMPTION.— 

9 ‘‘(1) DEFINITIONS.—In this subsection— 

10 ‘‘(A) the term ‘bank holding company’ has 

11 the same meaning as in section 2 of the Bank 

12 Holding Company Act of 1956 (12 U.S.C. 

13 1841); 

14 ‘‘(B) the term ‘insured depository institu15 tion’ has the same meaning as in section 3 of 

16 the Federal Deposit Insurance Act (12 U.S.C. 

17 1813); and 

18 ‘‘(C) the term ‘savings and loan holding 

19 company’ has the same meaning as in section 

20 10 of the Home Owners’ Loan Act (12 U.S.C. 

21 1467a). 

22 ‘‘(2) IN GENERAL.—This section and the rules 

23 prescribed under this section shall not apply in any 

24 fiscal year to any bank holding company, savings 

25 and loan holding company, or insured depository in26 stitution which, as of the end of the preceding fiscal 


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1 year, had total consolidated assets of 

2 $1,000,000,000 or less. 

3 ‘‘(3) ADJUSTMENT OF AMOUNT.—The Commis4 sion shall annually adjust the dollar amount in para5 graph (1) by an amount equal to the percentage in6 crease, for the most recent year, in total assets held 

7 by all bank holding companies, savings and loan 

8 holding companies, and insured depository institu9 tions, as reported by the Federal Deposit Insurance 

10 Corporation.’’. 

11 SEC. 3. ESCROW REQUIREMENTS RELATING TO CERTAIN 

12 CONSUMER CREDIT TRANSACTIONS. 

13 Section 129D(c) of the Truth in Lending Act (15 

14 U.S.C. 1639d(c)) is amended— 

15 (1) by redesignating paragraphs (1), (2), (3), 

16 and (4) as subparagraphs (A), (B), (C), and (D), re17 spectively, and moving the margins 2 ems to the 

18 right; 

19 (2) by striking ‘‘The Bureau’’ and inserting the 

20 following: 

21 ‘‘(1) IN GENERAL.—The Bureau’’; and 

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

23 ‘‘(2) TREATMENT OF LOANS HELD BY SMALLER

24 INSTITUTIONS.—The Bureau shall, by regulation, 

25 exempt from the requirements of subsection (a) any 


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1 loan secured by a first lien on the principal dwelling 

2 of a consumer, if such loan is held by an insured de3 pository institution having assets of 

4 $10,000,000,000 or less.’’. 

5 SEC. 4. MINIMUM STANDARDS FOR RESIDENTIAL MORT6 GAGE LOANS. 

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

8 U.S.C. 1639c(b)(2)) is amended— 

9 (1) by adding at the end the following: 

10 ‘‘(F) SAFE HARBOR.—In this section— 

11 ‘‘(i) the term ‘qualified mortgage’ in12 cludes any mortgage loan that is originated 

13 and retained in portfolio for a period of 

14 not less than 3 years by a depository insti15 tution having less than $10,000,000,000 in 

16 total assets; and 

17 ‘‘(ii) loans described in clause (i) shall 

18 be deemed to meet the requirements of 

19 subsection (a).’’; and 

20 (2) in subparagraph (E)— 

21 (A) by striking ‘‘The Bureau may, by reg22 ulation,’’ and inserting ‘‘The Bureau shall, by 

23 regulation,’’; and 

24 (B) by striking clause (iv) and inserting 

25 the following: 


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1 ‘‘(iv) that is extended by an insured 

2 depository institution that— 

3 ‘‘(I) originates and retains the 

4 balloon loans in portfolio for a period 

5 of not less than 3 years; and 

6 ‘‘(II) together with its affiliates 

7 has less than $10,000,000,000 in 

8 total consolidated assets.’’. 

Æ 


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