I 
114TH CONGRESS 
1ST SESSION H. R. 1408 
To require certain Federal banking agencies to conduct a study of the appro-
priate capital requirements for mortgage servicing assets for nonsystemic 
banking institutions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2015 
Mr. PERLMUTTER (for himself and Mr. LUETKEMEYER) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To require certain Federal banking agencies to conduct a 
study of the appropriate capital requirements for mort-
gage servicing assets for nonsystemic banking institu-
tions, 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 ‘‘Mortgage Servicing 
Asset Capital Requirements Act of 2015’’. 
VerDate Sep 11 2014 
02:40 Mar 19, 2015
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1408.IH
H1408
emcdonald on DSK67QTVN1PROD with BILLS
SEC. 2. COMMUNITY FINANCIAL INSTITUTION MORTGAGE 
SERVICING ASSET CAPITAL REQUIREMENTS 
STUDY. 
(a) DEFINITIONS.—For purposes of this section: 
(1) BANKING INSTITUTION.—The term ‘‘bank-
ing institution’’ means an insured depository institu-
tion, Federal credit union, State credit union, bank 
holding company, or savings and loan holding com-
pany. 
(2) BASEL III CAPITAL REQUIREMENTS.—The 
term ‘‘Basel III capital requirements’’ means the 
Global Regulatory Framework for More Resilient 
Banks and Banking Systems issued by the Basel 
Committee on Banking Supervision on December 16, 
2010, as revised on June 1, 2011. 
(3) FEDERAL BANKING AGENCIES.—The term 
‘‘Federal banking agencies’’ means the Board of 
Governors of the Federal Reserve System, the Office 
of the Comptroller of the Currency, the Federal De-
posit Insurance Corporation, and the National Cred-
it Union Administration. 
(4) MORTGAGE SERVICING ASSET.—The term 
‘‘mortgage servicing asset’’ means those assets that 
result from contracts to service loans secured by real 
estate, where such loans are owned by third parties. 
VerDate Sep 11 2014 
02:40 Mar 19, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1408.IH
H1408
emcdonald on DSK67QTVN1PROD with BILLS
(5) 
NCUA 
CAPITAL
REQUIREMENTS.—The 
term ‘‘NCUA capital requirements’’ means the pro-
posed rule of the National Credit Union Administra-
tion titled ‘‘Risk-Based Capital’’ (80 Fed. Reg. 
4340; January 27, 2015). 
(6) NONSYSTEMIC
BANKING
INSTITUTION.— 
The term ‘‘nonsystemic banking institution’’ means 
any banking institution other than an institution 
identified by the Financial Stability Board as a 
‘‘global systemically important bank’’. 
(7) OTHER DEFINITIONS.— 
(A) BANKING
DEFINITIONS.—The terms 
‘‘bank holding company’’, ‘‘insured depository 
institution’’, and ‘‘savings and loan holding 
company’’ have the meanings given such terms, 
respectively, under section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813). 
(B) CREDIT
UNION
DEFINITIONS.—The 
terms ‘‘Federal credit union’’ and ‘‘State credit 
union’’ have the meanings given such terms, re-
spectively, under section 101 of the Federal 
Credit Union Act (12 U.S.C. 1752). 
(b) STUDY
OF
THE APPROPRIATE CAPITAL
FOR 
MORTGAGE SERVICING ASSETS.— 
VerDate Sep 11 2014 
02:40 Mar 19, 2015
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1408.IH
H1408
emcdonald on DSK67QTVN1PROD with BILLS
(1) IN GENERAL.—The Federal banking agen-
cies shall, jointly, conduct a study of the appropriate 
capital requirements for mortgage servicing assets 
for nonsystemic banking institutions. 
(2) ISSUES
TO
BE
STUDIED.—The study re-
quired by this subsection shall include, with a spe-
cific focus on nonsystemic banking institutions— 
(A) the risk to banking institutions of 
holding mortgage servicing assets; 
(B) the history of the market for mortgage 
servicing assets, including particularly the mar-
ket for such assets in the period of the financial 
crisis; 
(C) the ability of banking institutions to 
establish a value for their mortgage servicing 
assets through periodic sales or other means; 
(D) regulatory approaches to mortgage 
servicing assets in addition to capital require-
ments that could be used to address concerns 
about the value of and ability to sell mortgage 
servicing assets; 
(E) the impact of imposing the Basel III 
capital requirements and the NCUA capital re-
quirements on nonsystemic banking institutions 
on their ability to compete in the mortgage 
VerDate Sep 11 2014 
02:40 Mar 19, 2015
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1408.IH
H1408
emcdonald on DSK67QTVN1PROD with BILLS
servicing business, including the need for econo-
mies of scale to compete in that business, and 
on their ability to provide service to consumers 
to whom they have made a mortgage loan; 
(F) an analysis of what the mortgage serv-
icing marketplace would look like if the Basel 
III capital requirements and the NCUA capital 
requirements on mortgage servicing assets— 
(i) were fully implemented; and 
(ii) applied to both banking institu-
tions and nondepository residential mort-
gage loan servicers; 
(G) the significance of problems with mort-
gage servicing assets, if any, in banking institu-
tion failures and problem banking institutions, 
including specifically identifying failed banking 
institutions where mortgage servicing assets 
contributed to the failure; and 
(H) an analysis of the relevance of the 
Basel III capital requirements and the NCUA 
capital requirements on mortgage servicing as-
sets to the banking systems of other significant 
developed countries. 
(3) REPORT TO CONGRESS.—Not later than the 
end of the 6-month period beginning on the date of 
VerDate Sep 11 2014 
02:40 Mar 19, 2015
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1408.IH
H1408
emcdonald on DSK67QTVN1PROD with BILLS
the enactment of this Act, the Federal banking 
agencies shall issue a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the 
House of Representatives containing— 
(A) the results of the study required under 
paragraph (1); and 
(B) any analysis on the specific issue of 
mortgage servicing assets undertaken by the 
Federal banking agencies prior to finalizing 
regulations implementing the Basel III capital 
requirements and the NCUA capital require-
ments. 
(c) DELAY OF RULEMAKING.— 
(1) RULES ON MORTGAGE SERVICING ASSETS.— 
Notwithstanding any other provision of law, no regu-
lation to implement the Basel III capital require-
ments or the NCUA capital requirements with re-
spect to mortgage servicing assets for nonsystemic 
banking institutions shall take effect before the end 
of the 3-month period beginning on the date the re-
port is issued under subsection (b)(3). 
(2) FINAL RULE REQUIREMENTS.—Before any 
final rule is issued by a Federal banking agency with 
respect to capital requirements on mortgage serv-
VerDate Sep 11 2014 
02:40 Mar 19, 2015
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1408.IH
H1408
emcdonald on DSK67QTVN1PROD with BILLS
icing assets for nonsystemic banking institutions, the 
Federal banking agency shall— 
(A) if the related proposed rule was issued 
before the date on which the report is issued 
under subsection (b)(3), issue a new proposed 
rule for public comment; and 
(B) consider regulatory approaches to 
mortgage servicing assets that could address 
concerns about the value of and ability to sell 
mortgage servicing assets. 
Æ 
VerDate Sep 11 2014 
02:40 Mar 19, 2015
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H1408.IH
H1408
emcdonald on DSK67QTVN1PROD with BILLS