(A) is not engaged in any nonbanking ac-
tivities involving significant leverage; and 
(B) does not have a significant amount of 
outstanding debt that is held by the general 
public. 
(2) ADJUSTMENT OF AMOUNT.—The Board of 
Governors of the Federal Reserve System shall an-
nually adjust the dollar amount referred to in para-
graph (1) in the Small Bank Holding Company Pol-
icy Statement on Assessment of Financial and Man-
agerial Factors by an amount equal to the percent-
age increase, for the most recent year, in total assets 
held by all insured depository institutions, as deter-
mined by the Board. 
(b) INCREASE IN DEBT-TO-EQUITY RATIO OF SMALL 
BANK HOLDING COMPANY.—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 shall publish in the Federal Register proposed re-
visions to the Small Bank Holding Company Policy State-
ment on Assessment of Financial and Managerial Factors 
(12 C.F.R. part 225—appendix C) such that the debt-to- 
equity ratio allowable for a small bank holding company 
in order to remain eligible to pay a corporate dividend and 
to remain eligible for expedited processing procedures 
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under Regulation Y of the Board of Governors of the Fed-
eral Reserve System would increase from 1:1 to 3:1. 
SEC. 3. ESCROW REQUIREMENTS. 
(a) IN GENERAL.—Section 129D(c) of the Truth in 
Lending Act, as added by section 1461(a) of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act, 
is amended— 
(1) by redesignating paragraphs (1), (2), (3), 
and (4) as subparagraphs (A), (B), (C), and (D) 
and moving such subparagraphs 2 ems to the right; 
(2) striking ‘‘The Board’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The Board’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) TREATMENT OF LOANS HELD BY SMALLER 
CREDITORS.—The Board shall, by regulation, exempt 
from the requirements of subsection (a) any loan secured 
by a first lien on a consumer’s principle dwelling, if such 
loan is held by a creditor with assets of $10,000,000,000 
or less.’’. 
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SEC. 4. EXCEPTION TO ANNUAL PRIVACY NOTICE REQUIRE-
MENT UNDER THE GRAMM-LEACH-BLILEY 
ACT. 
Section 503 of the Gramm-Leach-Bliley Act (15 
U.S.C. 6803) is amended by adding at the end the fol-
lowing: 
‘‘(f) EXCEPTION
TO ANNUAL NOTICE REQUIRE-
MENT.—A financial institution that— 
‘‘(1) provides nonpublic personal information 
only in accordance with the provisions of subsection 
(b)(2) or (e) of section 502 or regulations prescribed 
under section 504(b), and 
‘‘(2) has not changed its policies and practices 
with regard to disclosing nonpublic personal infor-
mation from the policies and practices that were dis-
closed in the most recent disclosure sent to con-
sumers in accordance with this subsection, 
shall not be required to provide an annual disclosure under 
this subsection until such time as the financial institution 
fails to comply with any criteria described in paragraph 
(1) or (2).’’. 
SEC. 5. ACCOUNTING PRINCIPLES COST-BENEFIT REQUIRE-
MENTS. 
Section 19(b) of the Securities Act of 1933 (15 
U.S.C. 77s(b)) is amended by adding at the end the fol-
lowing: 
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‘‘(3) 
GENERALLY
ACCEPTED
ACCOUNTING 
PRINCIPLES
COST-BENEFIT
REQUIREMENTS.—The 
Commission or its designee shall conduct analyses of 
the costs and benefits (including economic benefits) 
of any new or amended accounting principle de-
scribed under paragraph (1), and may not recognize 
such new or amended accounting principle, unless 
the Commission or its designee determines that the 
benefits to investors of such new or amended ac-
counting principle significantly outweigh its costs.’’. 
SEC. 6. COMMUNITY BANK EXEMPTION FROM ANNUAL 
MANAGEMENT ASSESSMENT OF INTERNAL 
CONTROLS 
REQUIREMENT 
OF 
THE 
SAR-
BANES-OXLEY ACT OF 2002. 
Section 404 of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7262) is amended by adding the following new sub-
section: 
‘‘(d) COMMUNITY BANK EXEMPTION.— 
‘‘(1) IN GENERAL.—This section shall not apply 
in any year to any insured depository institution 
which, as of the close of the preceding year, had 
total assets, as determined on a consolidated basis, 
of $10,000,000,000 or less. 
‘‘(2) ADJUSTMENT OF AMOUNT.—The Commis-
sion shall annually adjust the dollar amount in para-
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graph (1) by an amount equal to the percentage in-
crease, for the most recent year, in total assets held 
by all depository institutions, as reported by the 
Federal Deposit Insurance Corporation.’’. 
SEC. 7. CERTAIN LOANS INCLUDED AS QUALIFIED MORT-
GAGES. 
Section 129C(b)(2) of the Truth in Lending Act (15 
U.S.C. 1639c(b)(2)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (viii), by striking ‘‘and’’ at 
the end; 
(B) in clause (ix), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(x) that is originated and retained in 
portfolio for a period of at least 3 years by 
a 
creditor 
having 
less 
than 
$10,000,000,000 in total assets.’’; and 
(2) in subparagraph (E)— 
(A) by striking ‘‘The Board may, by regu-
lation’’ and inserting ‘‘The Bureau shall, by 
regulation’’; and 
(B) by amending clause (iv) to read as fol-
lows: 
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