‘‘(iv) that is extended by a creditor 
that— 
‘‘(I) originates and retains the 
balloon loans in portfolio for a period 
of at least 3 years; and 
‘‘(II) together with all affiliates, 
has total assets of $10,000,000,000 or 
less.’’. 
SEC. 8. 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 
20,000 or fewer mortgage loans, in order to reduce regu-
latory burdens while appropriately balancing consumer 
protections.’’. 
SEC. 9. APPRAISER QUALIFICATION THRESHOLD. 
Section 1112(b) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3341(b)) is amended— 
(1) by striking ‘‘may establish a threshold level 
at or’’ and inserting ‘‘shall establish a threshold level 
of $250,000,’’; and 
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(2) by striking ‘‘transactions, if’’ and inserting 
‘‘transactions. Each Federal financial institutions 
regulatory agency and the Resolution Trust Cor-
poration may establish a higher threshold than 
$250,000, if’’. 
SEC. 10. COORDINATION AMONG FINANCIAL INSTITUTIONS. 
Chapter 53 of title 31, United States Code, is amend-
ed— 
(1) by inserting after section 5332 the following 
new section: 
‘‘§ 5333. Coordination among financial institutions 
‘‘(a) IN GENERAL.—In the case of an entry received 
via an automated clearing house, no receiving depository 
financial institution shall be required to verify that the 
entry is not a prohibited transaction, if the originating de-
pository financial institution has warranted, pursuant to 
the automated clearing house rules governing such entry 
or otherwise, that the originating depository financial in-
stitution has complied with the sanctions programs admin-
istered by the Office of Foreign Assets Control in connec-
tion with such entry. 
‘‘(b) DEFINITIONS.—For purposes of this section: 
‘‘(1) 
AUTOMATED
CLEARING
HOUSE.—The 
term ‘automated clearing house’ means a funds 
transfer system governed by rules which provide for 
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the interbank clearing of electronic entries for par-
ticipating depository financial institutions. 
‘‘(2) DEPOSITORY
FINANCIAL
INSTITUTION.— 
The term ‘depository financial institution’ means— 
‘‘(A) any insured depository institution, as 
such term is defined under section 3 of the 
Federal Deposit Insurance Act (12 U.S.C. 
1813); 
‘‘(B) any depository institution which is el-
igible to apply to become an insured depository 
institution under section 5 of the Federal De-
posit Insurance Act (12 U.S.C. 1815); 
‘‘(C) any insured credit union, as defined 
in section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752); and 
‘‘(D) any credit union which is eligible to 
apply to become an insured credit union pursu-
ant to section 201 of the Federal Credit Union 
Act (12 U.S.C. 1781). 
‘‘(3) ENTRY.—The term ‘entry’ means an order 
to request for the transfer of funds through an auto-
mated clearing house. 
‘‘(4) ORIGINATING DEPOSITORY FINANCIAL IN-
STITUTION.—The term ‘originating depository finan-
cial institution’ means a depository financial institu-
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tion that transmits entries via an automated clearing 
house for transmittal to a receiving depository finan-
cial institution. 
‘‘(5) PROHIBITED
TRANSACTION.—The term 
‘prohibited transaction’ means a funds transfer 
originated on behalf of a person to or from whom 
funds transfers are restricted by a sanctions pro-
gram administered by the Office of Foreign Assets 
Control, including persons appearing on the list of 
specially designated nationals and blocked persons 
maintained by the Office of Foreign Assets Control. 
‘‘(6) RECEIVING DEPOSITORY FINANCIAL INSTI-
TUTION.—The term ‘receiving depository financial 
institution’ means a depository financial institution 
that receives entries via an automated clearing house 
from an originating depository financial institution 
for debit or credit to the accounts of its customers.’’; 
and 
(2) in the table of contents for such chapter by 
inserting after the item relating to section 5332 the 
following new item: 
‘‘5333. Coordination among financial institutions.’’. 
Æ 
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