pository institution from entering into or maintain-
ing a banking relationship with a specific customer 
or group of customers unless— 
(A) the agency has a material reason for 
such request or order; and 
(B) such reason is not based solely on rep-
utation risk. 
(2) 
TREATMENT
OF
NATIONAL
SECURITY 
THREATS.—If an appropriate Federal banking agen-
cy believes a specific customer or group of customers 
is, or is acting as a conduit for, an entity which— 
(A) poses a threat to national security; 
(B) is involved in terrorist financing; 
(C) is an agency of the government of 
Iran, North Korea, Syria, or any country listed 
from time to time on the State Sponsors of 
Terrorism list; 
(D) is located in, or is subject to the juris-
diction of, any country specified in subpara-
graph (C); or 
(E) does business with any entity described 
in subparagraph (C) or (D), unless the appro-
priate Federal banking agency determines that 
the customer or group of customers has used 
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due diligence to avoid doing business with any 
entity described in subparagraph (C) or (D), 
such belief shall satisfy the requirement under para-
graph (1). 
(b) NOTICE REQUIREMENT.— 
(1) IN GENERAL.—If an appropriate Federal 
banking agency formally or informally requests or 
orders a depository institution to terminate a spe-
cific customer account or a group of customer ac-
counts, the agency shall— 
(A) provide such request or order to the 
institution in writing; and 
(B) accompany such request or order with 
a written justification for why such termination 
is needed, including any specific laws or regula-
tions the agency believes are being violated by 
the customer or group of customers, if any. 
(2) JUSTIFICATION
REQUIREMENT.—A jus-
tification described under paragraph (1)(B) may not 
be based solely on the reputation risk to the deposi-
tory institution. 
(c) CUSTOMER NOTICE.— 
(1) NOTICE NOT REQUIRED.—Nothing in this 
section shall be construed as requiring a depository 
institution or an appropriate Federal banking agen-
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cy to inform a customer or customers of the jus-
tification for the customer’s account termination de-
scribed under subsection (b). 
(2) NOTICE
PROHIBITED
IN
CASES
OF
NA-
TIONAL SECURITY.—If an appropriate Federal bank-
ing agency requests or orders a depository institu-
tion to terminate a specific customer account or a 
group of customer accounts based on a belief that 
the customer or customers pose a threat to national 
security, neither the depository institution nor the 
appropriate Federal banking agency may inform the 
customer or customers of the justification for the 
customer’s account termination. 
(d) REPORTING REQUIREMENT.—Each appropriate 
Federal banking agency shall issue an annual report to 
the Congress stating— 
(1) the aggregate number of specific customer 
accounts that the agency requested or ordered a de-
pository institution to terminate during the previous 
year; and 
(2) the legal authority on which the agency re-
lied in making such requests and orders and the fre-
quency on which the agency relied on each such au-
thority. 
(e) DEFINITIONS.—For purposes of this section: 
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(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ means— 
(A) the appropriate Federal banking agen-
cy, as defined under section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813); and 
(B) the National Credit Union Administra-
tion, in the case of an insured credit union. 
(2) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ means— 
(A) a depository institution, as defined 
under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813); and 
(B) an insured credit union. 
SEC. 11. AMENDMENTS TO CIVIL PENALTIES UNDER 
FIRREA. 
Section 951 of the Financial Institutions Reform, Re-
covery, and Enforcement Act of 1989 (12 U.S.C. 1833a) 
is amended— 
(1) in subsection (c)(2), by striking ‘‘affecting 
a federally insured financial institution’’ and insert-
ing ‘‘against a federally insured financial institution 
or by a federally insured financial institution against 
an unaffiliated third person’’; and 
(2) in subsection (g)— 
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(A) in the header, by striking ‘‘Subpoenas’’ 
and inserting ‘‘Investigations’’; and 
(B) by amending paragraph (1)(C) to read 
as follows: 
‘‘(C) summon witnesses and require the 
production of any books, papers, correspond-
ence, memoranda, or other records which the 
Attorney General deems relevant or material to 
the inquiry, if the Attorney General— 
‘‘(i) requests a court order from a 
court of competent jurisdiction for such ac-
tions and offers specific and articulable 
facts showing that there are reasonable 
grounds to believe that the information or 
testimony sought is relevant and material 
for conducting an investigation under this 
section; or 
‘‘(ii) either personally or through dele-
gation no lower than the Deputy Attorney 
General, issues and signs a subpoena for 
such actions and such subpoena is sup-
ported by specific and articulable facts 
showing that there are reasonable grounds 
to believe that the information or testi-
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mony sought is relevant for conducting an 
investigation under this section.’’. 
SEC. 12. WAIVER OF WAITING PERIOD. 
Not later than 120 days after the date of the enact-
ment of this Act, the Bureau of Consumer Financial Pro-
tection shall issue regulations establishing a process to 
waive the requirement relating to the timing of providing 
closing disclosures for mortgage loans described under sec-
tion 1026.19(f)(1)(ii) of title 12, Code of Federal Regula-
tions. 
SEC. 13. LIMIT ON BUREAU SUPERVISION. 
The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended— 
(1) 
in 
section 
1025(a), 
by 
striking 
‘‘$10,000,000,000’’ each place such term appears 
and inserting ‘‘$50,000,000,000’’; and 
(2) 
in 
section 
1026(a), 
by 
striking 
‘‘$10,000,000,000’’ each place such term appears 
and inserting ‘‘$50,000,000,000’’. 
SEC. 14. LIMITED EXCEPTION FOR RECIPROCAL DEPOSITS. 
(a) IN GENERAL.—Section 29 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831f) is amended by adding 
at the end the following new subsection: 
‘‘(a) LIMITED EXCEPTION FOR RECIPROCAL DEPOS-
ITS.— 
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‘‘(1) IN GENERAL.—Reciprocal deposits of an 
insured depository institution shall not be considered 
to be funds obtained, directly or indirectly, by or 
through a deposit broker if— 
‘‘(A) when the institution was most re-
cently examined, its composite condition was 
found to be outstanding or good; or 
‘‘(B) the total amount of such reciprocal 
deposits does not exceed the lesser of— 
‘‘(i) $10,000,000,000; or 
‘‘(ii) an amount equal to 20 percent of 
the total liabilities of the insured deposi-
tory institution. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to limit the au-
thority of the Corporation to require, on a case-by- 
case basis, that an agent institution that is less than 
adequately 
capitalized 
(as 
defined 
in 
section 
38(b)(1)(B)) not accept particular types of deposits 
upon finding that the acceptance of such deposits 
constitutes an unsafe or unsound practice with re-
spect to such institution. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) AGENT
INSTITUTION.—The term 
‘agent institution’ means an insured depository 
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institution that places a covered deposit 
through a deposit placement network at other 
insured depository institutions in amounts that 
are less than or equal to the standard max-
imum deposit insurance amount, specifying the 
interest rate to be paid for such amounts, 
where the agent institution— 
‘‘(i) is well capitalized (as defined in 
section 38(b)(1)(A)) or has obtained a 
waiver pursuant to subsection (c) of this 
section; or 
‘‘(ii) does not receive an amount of re-
ciprocal deposits that causes the total 
amount of reciprocal deposits held by the 
agent institution to be greater than the av-
erage of the total amount of reciprocal de-
posits held by the agent institution on the 
last day of each of the 4 calendar quarters 
preceding the calendar quarter in which 
the agent institution was determined to be 
not well capitalized. 
‘‘(B) COVERED DEPOSIT.—The term ‘cov-
ered deposit’ means a deposit that— 
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‘‘(i) 
is 
submitted 
for 
placement 
through a deposit placement network by an 
agent institution; and 
‘‘(ii) does not consist of funds that 
were obtained for the agent institution, di-
rectly or indirectly, by or through a deposit 
broker before submission for placement 
through a deposit placement network. 
‘‘(C) DEPOSIT
PLACEMENT
NETWORK.— 
The term ‘deposit placement network’ means a 
network in which an insured depository institu-
tion participates, together with other insured 
depository institutions, for the processing and 
receipt of reciprocal deposits. 
‘‘(D) NETWORK
MEMBER
BANK.—The 
term ‘network member bank’ means an insured 
depository institution that is a member of a de-
posit placement network. 
‘‘(E) RECIPROCAL
DEPOSITS.—The term 
‘reciprocal deposits’ means deposits received by 
an agent institution through a deposit place-
ment network with the same maturity (if any) 
and in the same aggregate amount as covered 
deposits placed by the agent institution in other 
network member banks.’’. 
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(b) APPLICABILITY.—Nothing in this Act shall be 
construed to limit the application of any provision of the 
Federal Deposit Insurance Act, other than section 29 of 
such Act (12 U.S.C. 1831f), to an insured depository in-
stitution (as defined in section 3(c) of such Act (12 U.S.C. 
1813(c))). 
SEC. 15. SAFE HARBOR FOR CERTAIN LOANS HELD ON 
PORTFOLIO. 
(a) IN GENERAL.—Section 129C of the Truth in 
Lending Act (15 U.S.C. 1639c) is amended by adding at 
the end the following: 
‘‘(j) SAFE HARBOR FOR CERTAIN LOANS HELD ON 
PORTFOLIO.— 
‘‘(1) SAFE HARBOR FOR CREDITORS THAT ARE 
DEPOSITORY INSTITUTIONS.— 
‘‘(A) IN GENERAL.—A creditor that is a 
depository institution shall not be subject to 
suit for failure to comply with subsection (a), 
(c)(1), or (f)(2) of this section or section 129H 
with respect to a residential mortgage loan, and 
the banking regulators shall treat such loan as 
a qualified mortgage, if— 
‘‘(i) the creditor has, since the origi-
nation of the loan, held the loan on the 
balance sheet of the creditor; and 
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‘‘(ii) all prepayment penalties with re-
spect to the loan comply with the limita-
tions described under subsection (c)(3). 
‘‘(B) EXCEPTION
FOR
CERTAIN
TRANS-
FERS.—In the case of a depository institution 
that transfers a loan originated by that institu-
tion to another depository institution by reason 
of the bankruptcy or failure of the originating 
depository institution or the purchase of the 
originating depository institution, the depository 
institution transferring such loan shall be 
deemed to have complied with the requirement 
under subparagraph (A)(i). 
‘‘(2) SAFE HARBOR FOR MORTGAGE ORIGINA-
TORS.—A mortgage originator shall not be subject 
to suit for a violation of section 129B(c)(3)(B) for 
steering a consumer to a residential mortgage loan 
if— 
‘‘(A) the creditor of such loan is a deposi-
tory institution and has informed the mortgage 
originator that the creditor intends to hold the 
loan on the balance sheet of the creditor for the 
life of the loan; and 
‘‘(B) the mortgage originator informs the 
consumer that the creditor intends to hold the 
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loan on the balance sheet of the creditor for the 
life of the loan. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) BANKING
REGULATORS.—The term 
‘banking regulators’ means the Federal banking 
agencies, the Bureau, and the National Credit 
Union Administration. 
‘‘(B) 
DEPOSITORY
INSTITUTION.—The 
term ‘depository institution’ has the meaning 
given that term under section 19(b)(1) of the 
Federal Reserve Act (12 U.S.C. 505(b)(1)). 
‘‘(C) FEDERAL BANKING AGENCIES.—The 
term ‘Federal banking agencies’ has the mean-
ing given that term under section 3 of the Fed-
eral Deposit Insurance Act.’’. 
(b) RULE
OF
CONSTRUCTION.—Nothing in the 
amendment made by this Act may be construed as pre-
venting a balloon loan from qualifying for the safe harbor 
provided under section 129C(j) of the Truth in Lending 
Act if the balloon loan otherwise meets all of the require-
ments under such subsection (j), regardless of whether the 
balloon loan meets the requirements described under 
clauses (i) through (iv) of section 129C(b)(2)(E) of such 
Act. 
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(C) in clause (i), by adding at the end the 
following new subclause: 
‘‘(II) FEDERAL
HOUSING
FI-
NANCE
AGENCY
REGULATIONS.—Not 
later than 180 days after the date of 
the enactment of this subclause, the 
Federal Housing Finance Agency 
shall prescribe regulations to carry 
out the requirements of paragraph 
(2)(A)(iii). Notwithstanding the proce-
dures set forth in section 553 of title 
5, United States Code, the Federal 
Housing Finance Agency shall review 
its promulgated standards under such 
paragraph at least annually, and shall 
publish any proposed adjustments to 
such standards in the Federal Reg-
ister. The Federal Housing Finance 
Agency may not eliminate any re-
quirement or add any new require-
ment under paragraph (2)(A)(iii) un-
less it does so by prescribing a rule 
enacted pursuant to the procedures 
set forth in section 553 of title 5, 
United States Code.’’; and 
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(D) in clause (ii), by striking ‘‘with the 
Board’’ and inserting ‘‘with the Bureau with re-
spect to the requirements under clauses (i), (ii), 
(iv), (v), (vi), (vii), (viii), and (ix) of paragraph 
(2)(A), and in consultation with the Federal 
Housing Finance Agency with respect to the re-
quirement under paragraph (2)(A)(iii)’’. 
Æ 
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