IIB 
114TH CONGRESS 
1ST SESSION H. R. 1408 
IN THE SENATE OF THE UNITED STATES 
JULY 15, 2015 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To require certain Federal banking agencies to conduct a 
study of the appropriate capital requirements for mort-
gage servicing assets for banking institutions, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mortgage Servicing 
Asset Capital Requirements Act of 2015’’. 
SEC. 2. STUDY OF MORTGAGE SERVICING ASSETS. 
(a) DEFINITIONS.—In 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 ASSETS.—The term 
‘‘mortgage servicing assets’’ means those assets that 
result from contracts to service loans secured by real 
estate, where such loans are owned by third parties. 
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(5) 
NCUA 
CAPITAL
REQUIREMENTS.—The 
term ‘‘NCUA capital requirements’’ means the pro-
posed rule of the National Credit Union Administra-
tion entitled ‘‘Risk-Based Capital’’ (80 Fed. Reg. 
4340 (January 27, 2015)). 
(6) OTHER DEFINITIONS.— 
(A) BANKING
DEFINITIONS.—The terms 
‘‘bank holding company’’, ‘‘insured depository 
institution’’, and ‘‘savings and loan holding 
company’’ have the meanings given those terms 
in section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813). 
(B) CREDIT
UNION
DEFINITIONS.—The 
terms ‘‘Federal credit union’’ and ‘‘State credit 
union’’ have the meanings given those terms in 
section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752). 
(b) STUDY
OF
THE APPROPRIATE CAPITAL
FOR 
MORTGAGE SERVICING ASSETS.— 
(1) IN GENERAL.—The Federal banking agen-
cies shall jointly conduct a study of the appropriate 
capital requirements for mortgage servicing assets 
for banking institutions. 
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(2) ISSUES
TO
BE
STUDIED.—The study re-
quired under paragraph (1) shall include, with a 
specific focus on banking institutions— 
(A) the risk to banking institutions of 
holding mortgage servicing assets; 
(B) the history of the market for mortgage 
servicing assets, including in particular the 
market for those assets in the period of the fi-
nancial crisis; 
(C) the ability of banking institutions to 
establish a value for mortgage servicing assets 
of the institution through periodic sales or other 
means; 
(D) regulatory approaches to mortgage 
servicing assets and capital requirements that 
may 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 banking institutions on the abil-
ity of those institutions— 
(i) to compete in the mortgage serv-
icing business, including the need for 
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economies of scale to compete in that busi-
ness; and 
(ii) to provide service to consumers to 
whom the institutions have made mortgage 
loans; 
(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 signifi-
cantly developed countries. 
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(3) REPORT
TO
CONGRESS.—Not later than 
180 days after the date of enactment of this Act, the 
Federal banking agencies shall submit to the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services 
of the House of Representatives a report con-
taining— 
(A) the results of the study required under 
paragraph (1); 
(B) any analysis on the specific issue of 
mortgage servicing assets undertaken by the 
Federal banking agencies before finalizing regu-
lations implementing the Basel III capital re-
quirements and the NCUA capital require-
ments; and 
(C) any recommendations for legislative or 
regulatory actions that would address concerns 
about the value of and ability to sell and the 
ability of banking institutions to hold mortgage 
servicing assets. 
Passed the House of Representatives July 14, 2015. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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