I 
113TH CONGRESS 
2D SESSION 
H. R. 5786 
To amend certain banking statutes to exempt community banks from certain 
regulatory requirements, to include a community bank representative 
in the membership of the Board of Governors of the Federal Reserve 
System, to create a process for a county to be designated as a rural 
area, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 3, 2014 
Mr. LANKFORD (for himself and Mr. WELCH) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To amend certain banking statutes to exempt community 
banks from certain regulatory requirements, to include 
a community bank representative in the membership of 
the Board of Governors of the Federal Reserve System, 
to create a process for a county to be designated as 
a rural area, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Financial Insti-
tutions Regulatory Relief Act of 2014’’. 
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SEC. 2. 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 by adding at the end the 
following: 
‘‘(F) LOANS HELD ON PORTFOLIO.—The 
term ‘qualified mortgage’ includes a residential 
mortgage loan made by a creditor having less 
than $10,000,000,000 in total assets, so long as 
such loan is originated and retained in portfolio 
of the creditor for the duration of the loan 
term.’’. 
SEC. 3. EXEMPTION FROM ESCROW REQUIREMENTS FOR 
LOANS HELD BY SMALL CREDITORS. 
Section 129D(c) of the Truth in Lending Act (15 
U.S.C. 1639d(c)) 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 Bureau’’; and 
(3) by adding at the end the following: 
‘‘(2) TREATMENT OF LOANS HELD BY SMALLER 
CREDITORS.—The Bureau shall, by regulation, exempt 
from the requirements of subsection (a) any loan secured 
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by a first lien on a consumer’s principle dwelling, if such 
loan is held by a creditor with assets of less than 
$10,000,000,000.’’. 
SEC. 4. INCREASE IN SMALL SERVICER EXEMPTION. 
Section 6 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2605) is amended by adding at 
the end the following: 
‘‘(n) SMALL SERVICER EXEMPTION.—The Bureau 
shall, by regulation, provide exemptions to, or adjustments 
for, the provisions of this section for servicers that service 
10,000 or fewer mortgage loans, in order to reduce regu-
latory burdens while appropriately balancing consumer 
protections.’’. 
SEC. 5. 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 
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