RELIEVE Act

To provide regulatory easement for lending institutions that enable a vibrant economy. 1. Short title (a) Short title This Act may be cited as the Regulatory Easement for Lending Institutions that Enable a Vibrant Economy Act of 2014 RELIEVE Act (b) Table of Contents The table of contents for this Act is as follows: Sec. 1. Short title. TITLE I—Expansion of small bank holding company policy statement definition Sec. 101. Changes required to small bank holding company policy statement on assessment of financial and managerial factors. Sec. 102. Conforming amendment. Sec. 103. Definitions. TITLE II—Qualified mortgages for rural lenders Sec. 201. Qualified mortgages for rural lenders. TITLE III—Insurance of amounts held on behalf of others Sec. 301. Insurance of amounts held on behalf of others. I Expansion of small bank holding company policy statement definition 101. Changes required to small bank holding company policy statement on assessment of financial and managerial factors (a) In general Before the end of the 6-month period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System (hereafter in this Act referred to as the Board (1) are not engaged in significant nonbanking activities either directly or through a nonbank subsidiary; (2) do not conduct significant off-balance sheet activities (including securitization and asset management or administration) either directly or through a nonbank subsidiary; and (3) do not have a material amount of debt or equity securities outstanding (other than trust preferred securities) that are registered with the Securities and Exchange Commission. (b) Exclusions The Board may exclude any bank holding company or savings and loan holding company, regardless of asset size, from the policy statement under subsection (a) if the Board determines that such action is warranted for supervisory purposes. 102. Conforming amendment Section 171(b)(5)(C) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5371(b)(5)(C)) is amended by inserting or small savings and loan holding company any small bank holding company 103. Definitions For the purposes of this title: (a) Bank holding company The term bank holding company 12 U.S.C. 1841 (b) Savings and loan holding The term savings and loan holding company 12 U.S.C. 1467a(a) II Qualified mortgages for rural lenders 201. Qualified mortgages for rural lenders Section 129C(b)(2) of the Truth in Lending Act ( 15 U.S.C. 1639c(b)(2) (1) in subparagraph (E)(vi)(II), by striking a limit set by the Board 1,000 per year (2) by inserting after subparagraph (E) the following: (F) Rural The term rural (i) a city or town that has a population of greater than 50,000 inhabitants; and (ii) any urbanized area contiguous and adjacent to a city or town described in clause (i). . III Insurance of amounts held on behalf of others 301. Insurance of amounts held on behalf of others Section 207(k) of the Federal Credit Union Act ( 12 U.S.C. 1787(k) (1) in paragraph (1)(A)— (A) by inserting after payable to any member , or to any person with funds lawfully held in a member account, (B) by striking and paragraphs (5) and (6) (2) in paragraph (2)(A), by striking (as determined under paragraph (5)) (3) by redesignating paragraph (5) as paragraph (6); and (4) by inserting after paragraph (4) the following: (5) Coverage for interest on lawyers trust accounts and other similar escrow accounts (A) Pass-through insurance The Administration shall provide pass-through share insurance for the deposits or shares of any interest on lawyers trust account (commonly referred to as IOLTA (B) Treatment of IOLTAs (i) Treatment as escrow accounts For share insurance purposes, IOLTAs are treated as escrow accounts. (ii) Treatment as member accounts IOLTAs and other similar escrow accounts are considered member accounts for purposes of paragraph (1), if the attorney administering the IOLTA or the escrow agent administering the escrow account is a member of the insured credit union in which the funds are held. (C) Definitions For purposes of this paragraph: (i) Interest on lawyers trust account The terms interest on lawyers trust account IOLTA (ii) Pass-through share insurance The term pass-through share insurance (D) Rule of construction No provision of this paragraph shall be construed as authorizing an insured credit union to accept the deposits of an IOLTA or similar escrow account in an amount greater than such credit union is authorized to accept under any other provision of Federal or State law. .

Summary: Regulatory Easement for Lending Institutions that Enable a Vibrant Economy Act of 2014 or the RELIEVE Act - Directs the Board of Governors of the Federal Reserve System to publish in the Federal Register proposed revisions to the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors that apply the policy (unless exclusion is warranted for supervisory purposes) to bank holding companies and savings and loan holding companies with pro forma consolidated assets of less than $1 billion, and which: are not engaged in significant nonbanking activities either directly or through a nonbank subsidiary, do not conduct significant off-balance sheet activities (including securitization and asset management or administration) either directly or through a nonbank subsidiary, and do not have a material amount of debt or equity securities outstanding (other than trust preferred securities) registered with the Securities and Exchange Commission (SEC). Amends the Truth in Lending Act to limit to a city or town with under 50,000 inhabitants the meaning of "rural" with respect to rural lenders which may presume that the applicant for a residential mortgage loan has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments. Amends the Federal Credit Union Act regarding insured amounts payable in connection with a bankrupt state-chartered credit union for which the National Credit Union Administration (NCUA) Board is the liquidating agent. Revises requirements relating to the limitation to the standard maximum share insurance amount ($250,000) for the net amount of share insurance payable to any member at an insured credit union in the event of such a bankruptcy. Applies the limitation also to any person with funds lawfully held in a member account. Requires the Board to provide pass-through share insurance paid by certain lawyers administering deposits or shares of any interest on a lawyer's trust account (IOLTA), or paid by the escrow agent administering other similar escrow accounts. Defines "IOLTA" as a system in which lawyers place certain client funds in interest-bearing or dividend-bearing accounts, with the interest or dividends then used to fund programs such as legal service organizations providing services to clients in need. Treats IOLTAs as escrow accounts for share insurance purposes, and considers them as member accounts if the administering attorney or escrow agent is a member of the insured credit union in which the funds are held.