IIB 
113TH CONGRESS 
2D SESSION 
H. R. 5461 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 17 (legislative day, SEPTEMBER 16), 2014 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To clarify the application of certain leverage and risk-based 
requirements under the Dodd-Frank Wall Street Reform 
and Consumer Protection Act, to improve upon the defi-
nitions provided for points and fees in connection with 
a mortgage transaction, and for other purposes. 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of contents. 
TITLE I—INSURANCE CAPITAL STANDARDS 
Sec. 101. Short title. 
Sec. 102. Clarification of application of leverage and risk-based capital require-
ments. 
TITLE II—COLLATERALIZED LOAN OBLIGATIONS 
Sec. 201. Short title. 
Sec. 202. Rules of construction relating to collateralized loan obligations. 
TITLE III—DEFINITION OF POINTS AND FEES IN MORTGAGE 
TRANSACTIONS 
Sec. 301. Short title. 
Sec. 302. Definition of points and fees. 
Sec. 303. Rulemaking. 
TITLE IV—BUSINESS RISK MITIGATION AND PRICE 
STABILIZATION 
Sec. 401. Short title. 
Sec. 402. Margin requirements. 
Sec. 403. Implementation. 
TITLE I—INSURANCE CAPITAL 
STANDARDS 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Insurance Capital 
Standards Clarification Act of 2014’’. 
SEC. 102. CLARIFICATION OF APPLICATION OF LEVERAGE 
AND RISK-BASED CAPITAL REQUIREMENTS. 
Section 171 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5371) is amend-
ed— 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
(1) in subsection (a), by adding at the end the 
following: 
‘‘(4) BUSINESS
OF
INSURANCE.—The term 
‘business of insurance’ has the same meaning as in 
section 1002(3). 
‘‘(5) PERSON REGULATED BY A STATE INSUR-
ANCE REGULATOR.—The term ‘person regulated by 
a State insurance regulator’ has the same meaning 
as in section 1002(22). 
‘‘(6) REGULATED
FOREIGN
SUBSIDIARY
AND 
REGULATED FOREIGN AFFILIATE.—The terms ‘regu-
lated foreign subsidiary’ and ‘regulated foreign affil-
iate’ mean a person engaged in the business of in-
surance in a foreign country that is regulated by a 
foreign insurance regulatory authority that is a 
member of the International Association of Insur-
ance Supervisors or other comparable foreign insur-
ance regulatory authority as determined by the 
Board of Governors following consultation with the 
State insurance regulators, including the lead State 
insurance commissioner (or similar State official) of 
the insurance holding company system as deter-
mined by the procedures within the Financial Anal-
ysis Handbook adopted by the National Association 
of Insurance Commissioners, where the person, or 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
its principal United States insurance affiliate, has 
its principal place of business or is domiciled, but 
only to the extent that— 
‘‘(A) such person acts in its capacity as a 
regulated insurance entity; and 
‘‘(B) the Board of Governors does not de-
termine that the capital requirements in a spe-
cific foreign jurisdiction are inadequate. 
‘‘(7) CAPACITY AS A REGULATED INSURANCE 
ENTITY.—The term ‘capacity as a regulated insur-
ance entity’— 
‘‘(A) includes any action or activity under-
taken by a person regulated by a State insur-
ance regulator or a regulated foreign subsidiary 
or regulated foreign affiliate of such person, as 
those actions relate to the provision of insur-
ance, or other activities necessary to engage in 
the business of insurance; and 
‘‘(B) does not include any action or activ-
ity, including any financial activity, that is not 
regulated by a State insurance regulator or a 
foreign agency or authority and subject to State 
insurance capital requirements or, in the case of 
a regulated foreign subsidiary or regulated for-
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
eign affiliate, capital requirements imposed by a 
foreign insurance regulatory authority.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(c) CLARIFICATION.— 
‘‘(1) IN
GENERAL.—In establishing the min-
imum leverage capital requirements and minimum 
risk-based capital requirements on a consolidated 
basis for a depository institution holding company or 
a nonbank financial company supervised by the 
Board of Governors as required under paragraphs 
(1) and (2) of subsection (b), the appropriate Fed-
eral banking agencies shall not be required to in-
clude, for any purpose of this section (including in 
any determination of consolidation), a person regu-
lated by a State insurance regulator or a regulated 
foreign subsidiary or a regulated foreign affiliate of 
such person engaged in the business of insurance, to 
the extent that such person acts in its capacity as 
a regulated insurance entity. 
‘‘(2) RULE OF CONSTRUCTION ON BOARD’S AU-
THORITY.—This subsection shall not be construed to 
prohibit, modify, limit, or otherwise supersede any 
other provision of Federal law that provides the 
Board of Governors authority to issue regulations 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
and orders relating to capital requirements for de-
pository institution holding companies or nonbank fi-
nancial companies supervised by the Board of Gov-
ernors. 
‘‘(3) RULE OF CONSTRUCTION ON ACCOUNTING 
PRINCIPLES.— 
‘‘(A) IN GENERAL.—A depository institu-
tion holding company or nonbank financial com-
pany supervised by the Board of Governors of 
the Federal Reserve that is also a person regu-
lated by a State insurance regulator that is en-
gaged in the business of insurance that files fi-
nancial statements with a State insurance regu-
lator or the National Association of Insurance 
Commissioners utilizing only Statutory Ac-
counting Principles in accordance with State 
law, shall not be required by the Board under 
the authority of this section or the authority of 
the Home Owners’ Loan Act to prepare such fi-
nancial statements in accordance with Generally 
Accepted Accounting Principles. 
‘‘(B) PRESERVATION
OF
AUTHORITY.— 
Nothing in subparagraph (A) shall limit the au-
thority of the Board under any other applicable 
provision of law to conduct any regulatory or 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
supervisory activity of a depository institution 
holding company or non-bank financial com-
pany supervised by the Board of Governors, in-
cluding the collection or reporting of any infor-
mation on an entity or group-wide basis. Noth-
ing in this paragraph shall excuse the Board 
from its obligations to comply with section 
161(a) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 
5361(a)) and section 10(b)(2) of the Home 
Owners’ Loan Act (12 U.S.C. 1467a(b)(2)), as 
appropriate.’’. 
TITLE II—COLLATERALIZED 
LOAN OBLIGATIONS 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Restoring Proven Fi-
nancing for American Employers Act’’. 
SEC. 
202. 
RULES 
OF 
CONSTRUCTION 
RELATING 
TO 
COLLATERALIZED LOAN OBLIGATIONS. 
Section 13(g) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1851(g)) is amended by adding at the 
end the following new paragraphs: 
‘‘(4) COLLATERALIZED LOAN OBLIGATIONS.— 
‘‘(A) 
INAPPLICABILITY
TO
CERTAIN 
COLLATERALIZED
LOAN
OBLIGATIONS.—Noth-
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
ing in this section shall be construed to require 
the divestiture, prior to July 21, 2017, of any 
debt securities of collateralized loan obligations, 
if such debt securities were issued before Janu-
ary 31, 2014. 
‘‘(B) OWNERSHIP
INTEREST
WITH
RE-
SPECT
TO
COLLATERALIZED
LOAN
OBLIGA-
TIONS.—A banking entity shall not be consid-
ered to have an ownership interest in a 
collateralized loan obligation because it ac-
quires, has acquired, or retains a debt security 
in such collateralized loan obligation if the debt 
security has no indicia of ownership other than 
the right of the banking entity to participate in 
the removal for cause, or in the selection of a 
replacement after removal for cause or resigna-
tion, of an investment manager or investment 
adviser of the collateralized loan obligation. 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) COLLATERALIZED LOAN OBLIGA-
TION.—The term ‘collateralized loan obli-
gation’ means any issuing entity of an 
asset-backed security, as defined in section 
3(a)(77) of the Securities Exchange Act of 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
1934 (15 U.S.C. 78c(a)(77)), that is com-
prised primarily of commercial loans. 
‘‘(ii) REMOVAL FOR CAUSE.—An in-
vestment manager or investment adviser 
shall be deemed to be removed ‘for cause’ 
if the investment manager or investment 
adviser is removed as a result of— 
‘‘(I) a breach of a material term 
of the applicable management or advi-
sory agreement or the agreement gov-
erning the collateralized loan obliga-
tion; 
‘‘(II) the inability of the invest-
ment manager or investment adviser 
to continue to perform its obligations 
under any such agreement; 
‘‘(III) any other action or inac-
tion by the investment manager or in-
vestment adviser that has or could 
reasonably be expected to have a ma-
terially 
adverse 
effect 
on 
the 
collateralized loan obligation, if the in-
vestment manager or investment ad-
viser fails to cure or take reasonable 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
steps to cure such effect within a rea-
sonable time; or 
‘‘(IV) a comparable event or cir-
cumstance that threatens, or could 
reasonably be expected to threaten, 
the interests of holders of the debt se-
curities.’’. 
TITLE 
III—DEFINITION 
OF 
POINTS AND FEES IN MORT-
GAGE TRANSACTIONS 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Mortgage Choice Act 
of 2014’’. 
SEC. 302. DEFINITION OF POINTS AND FEES. 
(a) AMENDMENT TO SECTION 103 OF TILA.—Sec-
tion 103(bb)(4) of the Truth in Lending Act (15 U.S.C. 
1602(bb)(4)) is amended— 
(1) by striking ‘‘paragraph (1)(B)’’ and insert-
ing ‘‘paragraph (1)(A) and section 129C’’; 
(2) in subparagraph (C)— 
(A) by inserting ‘‘and insurance’’ after 
‘‘taxes’’; 
(B) in clause (ii), by inserting ‘‘, except as 
retained by a creditor or its affiliate as a result 
of their participation in an affiliated business 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
arrangement (as defined in section 2(7) of the 
Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2602(7))’’ after ‘‘compensation’’; 
and 
(C) by striking clause (iii) and inserting 
the following: 
‘‘(iii) the charge is— 
‘‘(I) a bona fide third-party 
charge not retained by the mortgage 
originator, creditor, or an affiliate of 
the creditor or mortgage originator; or 
‘‘(II) a charge set forth in section 
106(e)(1);’’; and 
(3) in subparagraph (D)— 
(A) by striking ‘‘accident,’’; and 
(B) by striking ‘‘or any payments’’ and in-
serting ‘‘and any payments’’. 
(b) AMENDMENT TO SECTION 129C OF TILA.—Sec-
tion 129C of the Truth in Lending Act (15 U.S.C. 1639c) 
is amended— 
(1) in subsection (a)(5)(C), by striking ‘‘103’’ 
and all that follows through ‘‘or mortgage origi-
nator)’’ and inserting ‘‘103(bb)(4)’’; and 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
(2) in subsection (b)(2)(C)(i), by striking ‘‘103’’ 
and all that follows through ‘‘or mortgage origi-
nator)’’ and inserting ‘‘103(bb)(4)’’. 
SEC. 303. RULEMAKING. 
Not later than the end of the 90-day period beginning 
on the date of the enactment of this Act, the Bureau of 
Consumer Financial Protection shall issue final regula-
tions to carry out the amendments made by this Act, and 
such regulations shall be effective upon issuance. 
TITLE IV—BUSINESS RISK MITI-
GATION 
AND 
PRICE 
STA-
BILIZATION 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Business Risk Mitiga-
tion and Price Stabilization Act of 2014’’. 
SEC. 402. MARGIN REQUIREMENTS. 
(a) COMMODITY EXCHANGE ACT AMENDMENT.— 
Section 4s(e) of the Commodity Exchange Act (7 U.S.C. 
6s(e)), as added by section 731 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, is amended 
by adding at the end the following new paragraph: 
‘‘(4) 
APPLICABILITY
WITH
RESPECT
TO 
COUNTERPARTIES.—The requirements of paragraphs 
(2)(A)(ii) and (2)(B)(ii), including the initial and 
variation margin requirements imposed by rules 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS
HR 5461 RFS
adopted pursuant to paragraphs (2)(A)(ii) and 
(2)(B)(ii), shall not apply to a swap in which a 
counterparty qualifies for an exception under section 
2(h)(7)(A), or an exemption issued under section 
4(c)(1) from the requirements of section 2(h)(1)(A) 
for cooperative entities as defined in such exemption, 
or satisfies the criteria in section 2(h)(7)(D).’’. 
(b) SECURITIES EXCHANGE ACT AMENDMENT.— 
Section 15F(e) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–10(e)), as added by section 764(a) of the 
Dodd-Frank Wall Street Reform and Consumer Protec-
tion Act, is amended by adding at the end the following 
new paragraph: 
‘‘(4) 
APPLICABILITY
WITH
RESPECT
TO 
COUNTERPARTIES.—The requirements of paragraphs 
(2)(A)(ii) and (2)(B)(ii) shall not apply to a secu-
rity-based swap in which a counterparty qualifies for 
an exception under section 3C(g)(1) or satisfies the 
criteria in section 3C(g)(4).’’. 
SEC. 403. IMPLEMENTATION. 
The amendments made by this title to the Commodity 
Exchange Act shall be implemented— 
(1) without regard to— 
(A) chapter 35 of title 44, United States 
Code; and 
VerDate Sep 11 2014 
00:18 Sep 18, 2014
Jkt 039200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5461.RFS
H5461
emcdonald on DSK67QTVN1PROD with BILLS