SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of contents. 
Sec. 2. Securities and Exchange Commission Reserve Fund. 
TITLE I—TRID IMPROVEMENT 
Sec. 101. Amendments to mortgage disclosure requirements. 
TITLE II—PROTECTION OF SOURCE CODE 
Sec. 201. Procedure for obtaining certain intellectual property. 
TITLE III—FOSTERING INNOVATION 
Sec. 301. Temporary exemption for low-revenue issuers. 
TITLE IV—NATIONAL SECURITIES EXCHANGE REGULATORY 
PARITY 
Sec. 401. Nationally traded securities exemption. 
TITLE V—ELIMINATING BARRIERS TO JOBS FOR LOAN 
ORIGINATORS 
Sec. 501. Eliminating barriers to jobs for loan originators. 
Sec. 502. Amendment to civil liability of the Bureau and other officials. 
Sec. 503. Effective date. 
SEC. 2. SECURITIES AND EXCHANGE COMMISSION RE-
SERVE FUND. 
Notwithstanding section 4(i)(2)(B)(i) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78d(i)(2)(B)(i)), 
the amount deposited in the Securities and Exchange 
Commission Reserve Fund for fiscal year 2018 may not 
exceed $48,000,000. 
TITLE I—TRID IMPROVEMENT 
SEC. 101. AMENDMENTS TO MORTGAGE DISCLOSURE RE-
QUIREMENTS. 
Section 4(a) of the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2603(a)) is amended—
(1) by striking ‘‘itemize all charges’’ and insert-
ing ‘‘itemize all actual charges’’; 
(2) by striking ‘‘and all charges imposed upon 
the seller in connection with the settlement and’’ and 
inserting ‘‘and the seller in connection with the set-
tlement. Such forms’’; and 
(3) by inserting after ‘‘or both.’’ the following 
new sentence: ‘‘Charges for any title insurance pre-
mium disclosed on such forms shall be equal to the 
amount charged for each individual title insurance 
policy, subject to any discounts as required by State 
regulation or the title company rate filings.’’. 
TITLE II—PROTECTION OF 
SOURCE CODE 
SEC. 201. PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL PROPERTY. 
(a) PERSONS UNDER SECURITIES ACT OF 1933.— 
Section 8 of the Securities Act of 1933 (15 U.S.C. 77h) 
is amended by adding at the end the following: 
‘‘(g) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL PROPERTY.—The Commission is not authorized 
to compel under this title a person to produce or furnish 
algorithmic trading source code or similar intellectual 
property that forms the basis for design of the algorithmic
trading source code, to the Commission unless the Com-
mission first issues a subpoena.’’. 
(b) PERSONS UNDER THE SECURITIES EXCHANGE 
ACT OF 1934.—Section 23 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78w) is amended by adding at the 
end the following: 
‘‘(e) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL PROPERTY.—The Commission is not authorized 
to compel under this title a person to produce or furnish 
algorithmic trading source code or similar intellectual 
property that forms the basis for design of the algorithmic 
trading source code, to the Commission unless the Com-
mission first issues a subpoena.’’. 
(c) INVESTMENT COMPANIES.—Section 31 of the In-
vestment Company Act of 1940 (15 U.S.C. 80a–30) is 
amended by adding at the end the following: 
‘‘(e) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL PROPERTY.—The Commission is not authorized 
to compel under this title an investment company to 
produce or furnish algorithmic trading source code or 
similar intellectual property that forms the basis for de-
sign of the algorithmic trading source code, to the Com-
mission unless the Commission first issues a subpoena.’’.
(d) INVESTMENT ADVISERS.—Section 204 of the In-
vestment Advisers Act of 1940 (15 U.S.C. 80b–4) is 
amended— 
(1) by adding at the end the following: 
‘‘(f) PROCEDURE FOR OBTAINING CERTAIN INTEL-
LECTUAL PROPERTY.—The Commission is not authorized 
to compel under this title an investment adviser to produce 
or furnish algorithmic trading source code or similar intel-
lectual property that forms the basis for design of the al-
gorithmic trading source code, to the Commission unless 
the Commission first issues a subpoena.’’; and 
(2) in the second subsection (d), by striking 
‘‘(d)’’ and inserting ‘‘(e)’’. 
TITLE III—FOSTERING 
INNOVATION 
SEC. 301. TEMPORARY EXEMPTION FOR LOW-REVENUE 
ISSUERS. 
Section 404 of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7262) is amended by adding at the end the fol-
lowing: 
‘‘(d) TEMPORARY EXEMPTION FOR LOW-REVENUE 
ISSUERS.— 
‘‘(1) LOW-REVENUE
EXEMPTION.—Subsection 
(b) shall not apply with respect to an audit report 
prepared for an issuer that—
‘‘(A) ceased to be an emerging growth 
company on the last day of the fiscal year of 
the issuer following the fifth anniversary of the 
date of the first sale of common equity securi-
ties of the issuer pursuant to an effective reg-
istration statement under the Securities Act of 
1933; 
‘‘(B) had average annual gross revenues of 
less than $50,000,000 as of its most recently 
completed fiscal year; and 
‘‘(C) is not a large accelerated filer. 
‘‘(2) EXPIRATION
OF
TEMPORARY
EXEMP-
TION.—An issuer ceases to be eligible for the exemp-
tion described under paragraph (1) at the earliest 
of— 
‘‘(A) the last day of the fiscal year of the 
issuer following the tenth anniversary of the 
date of the first sale of common equity securi-
ties of the issuer pursuant to an effective reg-
istration statement under the Securities Act of 
1933; 
‘‘(B) the last day of the fiscal year of the 
issuer during which the average annual gross 
revenues of the issuer exceed $50,000,000; or
(2) in subparagraph (B)— 
(A) by inserting ‘‘a security designated as 
qualified for trading in the national market sys-
tem pursuant to section 11A(a)(2) of the Secu-
rities Exchange Act of 1934 that is’’ before 
‘‘listed’’; and 
(B) by striking ‘‘that has listing standards 
that the Commission determines by rule (on its 
own initiative or on the basis of a petition) are 
substantially similar to the listing standards ap-
plicable to securities described in subparagraph 
(A)’’; 
(3) in subparagraph (C), by striking ‘‘or (B)’’; 
and 
(4) by redesignating subparagraphs (B) and 
(C) as subparagraphs (A) and (B), respectively. 
TITLE 
V—ELIMINATING 
BAR-
RIERS TO JOBS FOR LOAN 
ORIGINATORS 
SEC. 501. ELIMINATING BARRIERS TO JOBS FOR LOAN 
ORIGINATORS. 
(a) IN GENERAL.—The S.A.F.E. Mortgage Licensing 
Act of 2008 (12 U.S.C. 5101 et seq.) is amended by add-
ing at the end the following:
‘‘SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINA-
TORS. 
‘‘(a) TEMPORARY AUTHORITY TO ORIGINATE LOANS 
FOR LOAN ORIGINATORS MOVING FROM A DEPOSITORY 
INSTITUTION TO A NON-DEPOSITORY INSTITUTION.— 
‘‘(1) IN
GENERAL.—Upon employment by a 
State-licensed mortgage company, an individual who 
is a registered loan originator shall be deemed to 
have temporary authority to act as a loan originator 
in an application State for the period described in 
paragraph (2) if the individual— 
‘‘(A) has not had an application for a loan 
originator license denied, or had such a license 
revoked or suspended in any governmental ju-
risdiction; 
‘‘(B) has not been subject to or served 
with a cease and desist order in any govern-
mental jurisdiction or as described in section 
1514(c); 
‘‘(C) has not been convicted of a felony 
that would preclude licensure under the law of 
the application State; 
‘‘(D) has submitted an application to be a 
State-licensed loan originator in the application 
State; and
‘‘(E) was registered in the Nationwide 
Mortgage Licensing System and Registry as a 
loan originator during the 12-month period pre-
ceding the date of submission of the informa-
tion required under section 1505(a). 
‘‘(2) PERIOD.—The period described in para-
graph (1) shall begin on the date that the individual 
submits the information required under section 
1505(a) and shall end on the earliest of— 
‘‘(A) the date that the individual with-
draws the application to be a State-licensed 
loan originator in the application State; 
‘‘(B) the date that the application State 
denies, or issues a notice of intent to deny, the 
application; 
‘‘(C) the date that the application State 
grants a State license; or 
‘‘(D) the date that is 120 days after the 
date on which the individual submits the appli-
cation, if the application is listed on the Nation-
wide Mortgage Licensing System and Registry 
as incomplete. 
‘‘(b) TEMPORARY AUTHORITY TO ORIGINATE LOANS 
FOR
STATE-LICENSED
LOAN
ORIGINATORS
MOVING 
INTERSTATE.—
‘‘(1) IN GENERAL.—A State-licensed loan origi-
nator shall be deemed to have temporary authority 
to act as a loan originator in an application State 
for the period described in paragraph (2) if the 
State-licensed loan originator— 
‘‘(A) meets the requirements of subpara-
graphs (A), (B), (C), and (D) of subsection 
(a)(1); 
‘‘(B) is employed by a State-licensed mort-
gage company in the application State; and 
‘‘(C) was licensed in a State that is not the 
application State during the 30-day period pre-
ceding the date of submission of the informa-
tion required under section 1505(a) in connec-
tion with the application submitted to the appli-
cation State. 
‘‘(2) PERIOD.—The period described in para-
graph (1) shall begin on the date that the State-li-
censed loan originator submits the information re-
quired under section 1505(a) in connection with the 
application submitted to the application State and 
end on the earliest of— 
‘‘(A) the date that the State-licensed loan 
originator withdraws the application to be a
State-licensed loan originator in the application 
State; 
‘‘(B) the date that the application State 
denies, or issues a notice of intent to deny, the 
application; 
‘‘(C) the date that the application State 
grants a State license; or 
‘‘(D) the date that is 120 days after the 
date on which the State-licensed loan originator 
submits the application, if the application is 
listed on the Nationwide Mortgage Licensing 
System and Registry as incomplete. 
‘‘(c) APPLICABILITY.— 
‘‘(1) Any person employing an individual who is 
deemed to have temporary authority to act as a loan 
originator in an application State pursuant to this 
section shall be subject to the requirements of this 
title and to applicable State law to the same extent 
as if such individual was a State-licensed loan origi-
nator licensed by the application State. 
‘‘(2) Any individual who is deemed to have tem-
porary authority to act as a loan originator in an ap-
plication State pursuant to this section and who en-
gages in residential mortgage loan origination activi-
ties shall be subject to the requirements of this title
and to applicable State law to the same extent as if 
such individual was a State-licensed loan originator 
licensed by the application State. 
‘‘(d) DEFINITIONS.—In this section, the following 
definitions shall apply: 
‘‘(1) STATE-LICENSED MORTGAGE COMPANY.— 
The term ‘State-licensed mortgage company’ means 
an entity licensed or registered under the law of any 
State to engage in residential mortgage loan origina-
tion and processing activities. 
‘‘(2) APPLICATION STATE.—The term ‘applica-
tion State’ means a State in which a registered loan 
originator or a State-licensed loan originator seeks 
to be licensed.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents in section 1(b) of the Housing and Economic 
Recovery Act of 2008 (42 U.S.C. 4501 note) is amended 
by inserting after the item relating to section 1517 the 
following: 
‘‘Sec. 1518. Employment transition of loan originators.’’. 
SEC. 502. AMENDMENT TO CIVIL LIABILITY OF THE BU-
REAU AND OTHER OFFICIALS. 
Section 1513 of the S.A.F.E. Mortgage Licensing Act 
of 2008 (12 U.S.C. 5112) is amended by striking ‘‘are 
loan originators or are applying for licensing or registra-
tion as loan originators.’’ and inserting ‘‘have applied, are
applying, or are currently licensed or registered through 
the Nationwide Mortgage Licensing System and Registry. 
The previous sentence shall only apply to persons in an 
industry with respect to which persons were licensed or 
registered through the Nationwide Mortgage Licensing 
System and Registry on the date of the enactment of this 
sentence.’’. 
SEC. 503. EFFECTIVE DATE. 
This title and the amendments made by this title 
shall take effect on the date that is 18 months after the 
date of the enactment of this Act. 
Passed the House of Representatives February 14, 
2018. 
Attest: 
Clerk.
115TH CONGRESS 
2D SESSION 
H. R. 3978 
AN ACT 
To amend the Real Estate Settlement Procedures 
Act of 1974 to modify requirements related to 
mortgage disclosures, and for other purposes.