CLEAR Relief Act of 2015

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. Short title This Act may be cited as the Community Lending Enhancement and Regulatory Relief Act of 2015 CLEAR Relief Act of 2015 2. Community bank exemption from annual management assessment of internal controls requirement of the Sarbanes-Oxley Act of 2002 Section 404 of the Sarbanes-Oxley Act of 2002 ( 15 U.S.C. 7262 (d) Community bank exemption (1) Definitions In this subsection— (A) the term bank holding company 12 U.S.C. 1841 (B) the term insured depository institution 12 U.S.C. 1813 (C) the term savings and loan holding company 12 U.S.C. 1467a (2) In general This section and the rules prescribed under this section shall not apply in any fiscal year to any bank holding company, savings and loan holding company, or insured depository institution which, as of the end of the preceding fiscal year, had total consolidated assets of $1,000,000,000 or less. (3) Adjustment of amount The Commission shall annually adjust the dollar amount in paragraph (1) by an amount equal to the percentage increase, for the most recent year, in total assets held by all bank holding companies, savings and loan holding companies, and insured depository institutions, as reported by the Federal Deposit Insurance Corporation. . 3. Escrow requirements relating to certain consumer credit transactions Section 129D(c) of the Truth in Lending Act ( 15 U.S.C. 1639d(c) (1) by redesignating paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), (C), and (D), respectively, and moving the margins 2 ems to the right; (2) by striking The Bureau (1) In general The Bureau ; and (3) by adding at the end the following: (2) Treatment of loans held by smaller institutions The Bureau shall, by regulation, exempt from the requirements of subsection (a) any loan secured by a first lien on the principal dwelling of a consumer, if such loan is held by an insured depository institution having assets of $10,000,000,000 or less. . 4. Minimum standards for residential mortgage loans Section 129C(b)(2) of the Truth in Lending Act ( 15 U.S.C. 1639c(b)(2) (1) by adding at the end the following: (F) Safe Harbor In this section— (i) the term qualified mortgage (ii) loans described in clause (i) shall be deemed to meet the requirements of subsection (a). ; and (2) in subparagraph (E)— (A) by striking The Bureau may, by regulation, The Bureau shall, by regulation, (B) by striking clause (iv) and inserting the following: (iv) that is extended by an insured depository institution that— (I) originates and retains the balloon loans in portfolio for a period of not less than 3 years; and (II) together with its affiliates has less than $10,000,000,000 in total consolidated assets. .

Summary: Community Lending Enhancement and Regulatory Relief Act of 2015 or the CLEAR Relief Act of 2015 Amends the Sarbanes-Oxley Act of 2002 to exempt from its rules regarding management assessment of internal controls the following institutions which, as of the end of the preceding fiscal year, had total consolidated assets of $1 billion or less (adjusted annually according to a certain formula): (1) a bank holding company, (2) a savings and loan holding company, or (3) an insured depository institution. Amends the Truth in Lending Act (TILA) to require the Consumer Financial Protection Bureau (CFPB) to exempt from requirements governing escrow or impound accounts affecting certain consumer credit transactions any loans secured by a first lien on the principal dwelling of a consumer, if such loans are held by an insured depository institution having assets of $10 billion or less. Includes as a qualified mortgage, with respect to the presumption that a qualified residential mortgage loan meets certain minimum standards, any mortgage loan originated and retained in portfolio for at least three years by a depository institution having less than $10 billion in total assets. Requires the CFPB (which currently is merely authorized) to provide by regulation that a "qualified mortgage" includes a balloon loan extended by an insured depository institution that: (1) originates and retains balloon loans in portfolio for at least three years, and (2) together with its affiliates has less than $10 billion in total consolidated assets.