I 
115TH CONGRESS 
1ST SESSION H. R. 2133 
To provide regulatory relief to community financial institutions, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 25, 2017 
Mr. LUETKEMEYER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To provide regulatory relief to community financial 
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, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Community Lending 
Enhancement and Regulatory Relief Act of 2017’’ or the 
‘‘CLEARR Act of 2017’’. 
SEC. 2. COMMUNITY INSTITUTION MORTGAGE RELIEF. 
(a) EXEMPTION FROM ESCROW REQUIREMENTS FOR 
LOANS HELD BY SMALL CREDITORS.—Section 129D(c) 
of the Truth in Lending Act (15 U.S.C. 1639d(c)), as 
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added by section 1461(a) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act, is amended— 
(1) by redesignating paragraphs (1), (2), (3), 
and (4) as subparagraphs (A), (B), (C), and (D) 
(and conforming the margins accordingly); 
(2) by striking ‘‘The Board’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—The Bureau’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) TREATMENT OF LOANS HELD BY SMALLER 
CREDITORS.—The Bureau shall, by regulation, exempt 
from the requirements of subsection (a) any loan secured 
by a first lien on a consumer’s principal dwelling, if such 
loan is held by a creditor with assets of $50,000,000,000 
or less.’’. 
(b) MODIFICATION
TO
EXEMPTION
FOR
SMALL 
SERVICERS OF MORTGAGE LOANS.—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 annu-
ally service 30,000 or fewer mortgage loans, in order to 
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reduce regulatory burdens while appropriately balancing 
consumer protections.’’. 
SEC. 3. ACCESS TO AFFORDABLE MORTGAGES. 
(a) EXEMPTION FROM PROPERTY APPRAISAL RE-
QUIREMENTS
FOR LOWER-COST DWELLINGS.—Section 
129H of the Truth in Lending Act (15 U.S.C. 1639h) is 
amended by adding at the end the following new sub-
section: 
‘‘(g) EXEMPTION FOR CERTAIN MORTGAGES.—The 
Bureau, the Comptroller of the Currency, the Federal De-
posit Insurance Corporation, the National Credit Union 
Administration Board, and the Federal Housing Finance 
Agency shall exempt, by rule, a mortgage loan of $250,000 
or less from the requirements of this section if such loan 
appears on the balance sheet of the creditor of such loan 
for a period of not less than 3 years.’’. 
(b) EXEMPTION FROM PENALTIES FOR FAILURE TO 
REPORT APPRAISERS.—Paragraph (1) of section 129E(k) 
of the Truth in Lending Act (15 U.S.C. 1639e(k)(1)) is 
amended by inserting after ‘‘this section’’ the following: 
‘‘, other than subsection (e),’’. 
(c) EXEMPTION FROM APPRAISAL STANDARD RE-
QUIREMENTS
FOR LOWER-COST DWELLINGS.—Section 
1110 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3339) is amended— 
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(1) by striking ‘‘Each Federal financial institu-
tions regulatory agency and the Resolution Trust 
Corporation’’ and inserting the following: 
‘‘(a) REAL ESTATE APPRAISALS
IN CONNECTION 
WITH
FEDERALLY
RELATED
TRANSACTIONS.—Each 
Federal financial institutions regulatory agency’’; 
(2) by striking ‘‘each such agency or instrumen-
tality’’ and inserting ‘‘each such agency’’; 
(3) in the flush left matter following paragraph 
(3), by striking ‘‘Each such agency or instrumen-
tality’’ and inserting the following: 
‘‘(b) ADDITIONAL STANDARDS.—Each such agency 
described under subsection (a)’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(c) 
EXEMPTION
FOR
CERTAIN
MORTGAGE 
LOANS.—Each such agency described under subsection 
(a) shall exempt, by rule, a real estate appraisal or evalua-
tion conducted in connection with a mortgage loan of 
$250,000 or less from the standards prescribed under this 
section, if such loan appears on the balance sheet of the 
creditor of such loan for a period of not less than 3 
years.’’. 
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SEC. 4. CHANGES REQUIRED TO SMALL BANK HOLDING 
COMPANY POLICY STATEMENT ON ASSESS-
MENT OF FINANCIAL AND MANAGERIAL FAC-
TORS. 
Before the end of the 6-month period beginning on 
the date of the enactment of this Act, the Board of Gov-
ernors of the Federal Reserve System shall revise the 
Small Bank Holding Company Policy Statement on As-
sessment of Financial and Managerial Factors (12 C.F.R. 
part 225—appendix C) to raise the consolidated asset 
threshold 
under 
such 
policy 
statement 
from 
$1,000,000,000 (as adjusted by Public Law 113–250) to 
$10,000,000,000. 
SEC. 5. CAPITAL REQUIREMENTS FOR MORTGAGE SERV-
ICING ASSETS. 
(a) REPEAL OF BASEL III REGULATIONS.—Not later 
than the end of the 60-day period beginning on the date 
of the enactment of this Act, each Federal banking agency 
shall— 
(1) repeal all regulations issued by the agency 
to implement the Basel III capital requirements or 
the NCUA capital requirements, as applicable, on 
mortgage servicing assets; and 
(2) revive or restore any regulation repealed or 
revised by a regulation described under paragraph 
(1). 
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(b) NEW REGULATIONS.—Before any final regulation 
is issued by a Federal banking agency with respect to cap-
ital requirements on mortgage servicing assets, the Fed-
eral banking agency shall— 
(1) issue a new proposed rule for public com-
ment; 
(2) submit to Congress a notification of the 
proposed rule and an explanation for the proposed 
rule; and 
(3) consider— 
(A) the history of the market for mortgage 
servicing assets, including particularly the mar-
ket for such assets in the period of the financial 
crisis; 
(B) the impact on consumer access to 
mortgage lending and mortgage servicing; and 
(C) competition in the mortgage servicing 
market, including analysis of the role commu-
nity and mid-sized financial institutions play in 
the mortgage servicing market. 
(c) DEFINITIONS.—For purposes of this section: 
(1) 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 
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Committee on Banking Supervision on December 16, 
2010, as revised on June 1, 2011. 
(2) FEDERAL
BANKING
AGENCY.—The term 
‘‘Federal banking agency’’ means the Board of Gov-
ernors of the Federal Reserve System, the Office of 
the Comptroller of the Currency, the Federal De-
posit Insurance Corporation, or the National Credit 
Union Administration. 
(3) 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. 
(4) 
NCUA 
CAPITAL
REQUIREMENTS.—The 
term ‘‘NCUA capital requirements’’ means the final 
rule of the National Credit Union Administration 
entitled ‘‘Risk-Based Capital’’ (80 Fed. Reg. 66626 
(Oct. 29, 2015)). 
SEC. 6. BUREAU AUTHORITY OVER UNFAIR AND DECEP-
TIVE ACTS OR PRACTICES. 
(a) IN GENERAL.—Section 1031 of the Consumer Fi-
nancial Protection Act of 2010 (12 U.S.C. 5531) is 
amended— 
(1) in the heading of such section, by striking 
‘‘, DECEPTIVE, OR ABUSIVE’’ and inserting ‘‘OR 
DECEPTIVE’’; 
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(2) in subsection (a)— 
(A) by striking ‘‘, deceptive, or abusive’’ 
and inserting ‘‘or deceptive’’; and 
(B) by adding at the end the following: 
‘‘The Bureau may not take any action described 
under this subsection against a covered person 
or service provider unless the Bureau first 
consults the covered person or service provider’s 
primary financial regulatory agency, if any.’’; 
(3) in subsection (b)— 
(A) by striking ‘‘, deceptive, or abusive’’ 
and inserting ‘‘or deceptive’’; and 
(B) by inserting at the end the following: 
‘‘In prescribing any rule under this subsection, 
the Bureau shall comply with the requirements 
of section 18 of the Federal Trade Commission 
Act (15 U.S.C. 57a) applicable to the Federal 
Trade Commission when the Commission pre-
scribes rules and general statements of policy 
under that section with respect to unfair or de-
ceptive acts or practices in or affecting com-
merce.’’; 
(4) by striking subsection (d); and 
(5) by redesignating subsections (e) and (f) as 
subsections (d) and (e), respectively. 
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(b) CONFORMING AMENDMENTS.— 
(1) CONSUMER FINANCIAL PROTECTION ACT OF 
2010.—The Consumer Financial Protection Act of 
2010 (12 U.S.C. 5481 et seq.) is amended— 
(A) by striking ‘‘, deceptive, and abusive’’ 
each place such term appears and inserting 
‘‘and deceptive’’; and 
(B) by striking ‘‘, deceptive, or abusive’’ 
each place such term appears and inserting ‘‘or 
deceptive’’. 
(2) DODD-FRANK WALL STREET REFORM AND 
CONSUMER PROTECTION ACT.—The table of contents 
in section 1(b) of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act is amended, in 
the item relating to section 1031, by striking ‘‘, DE-
CEPTIVE, OR ABUSIVE’’ and inserting ‘‘OR DE-
CEPTIVE’’. 
(3) OMNIBUS APPROPRIATIONS ACT, 2009.—Sec-
tion 626(a)(1) of the Omnibus Appropriations Act, 
2009 (15 U.S.C. 1638 note) is amended by striking 
‘‘, deceptive, or abusive’’ and inserting ‘‘or decep-
tive’’. 
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SEC. 7. AMENDMENTS TO THE EQUAL CREDIT OPPOR-
TUNITY ACT AND THE FAIR HOUSING ACT TO 
REQUIRE INTENT TO DISCRIMINATE. 
(a) AMENDMENT TO EQUAL CREDIT OPPORTUNITY 
ACT.—Subsection (a) of section 701 of the Equal Credit 
Opportunity Act (15 U.S.C. 1691(a)) is amended by in-
serting ‘‘intentionally’’ before ‘‘discriminate’’. 
(b) AMENDMENT TO FAIR HOUSING ACT.—The Fair 
Housing Act (42 U.S.C. 3601 et seq.) is amended— 
(1) in section 804— 
(A) by inserting ‘‘intentionally’’ before 
‘‘discriminate’’ each place such term appears; 
(B) in subsection (a), by inserting ‘‘inten-
tionally’’ before ‘‘refuse’’; 
(C) in subsection (c)— 
(i) by inserting ‘‘intentionally’’ before 
‘‘make’’; and 
(ii) by inserting ‘‘intentionally’’ before 
‘‘cause’’; 
(D) in subsection (d), by inserting ‘‘inten-
tionally’’ before ‘‘represent’’; and 
(E) in subsection (e), by striking ‘‘induce 
or attempt’’ and inserting ‘‘intentionally induce 
or intentionally attempt’’; 
(2) in section 805, by inserting ‘‘intentionally’’ 
before ‘‘discriminate’’; and 
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(3) in section 806, by inserting ‘‘intentionally’’ 
before ‘‘discriminate’’. 
SEC. 8. AMENDMENTS TO THE HOME MORTGAGE DISCLO-
SURE ACT OF 1975. 
(a) LOAN VOLUME THRESHOLD.—Section 304(i) of 
the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 
2803(i)) is amended to read as follows: 
‘‘(i) EXEMPTION FROM CERTAIN DISCLOSURE RE-
QUIREMENTS.— 
‘‘(1) IN GENERAL.—The requirements of sub-
sections (b)(4), (b)(5), and (b)(6) shall not apply 
with respect to any depository institution described 
in section 303(2)(A). 
‘‘(2) CLOSED-END
MORTGAGE
LOANS.—With 
respect to a depository institution, the requirements 
of subsections (a) and (b) shall not apply with re-
spect to closed-end mortgage loans if the depository 
institution originated less than 1,000 closed-end 
mortgage loans in each of the 2 preceding calendar 
years. 
‘‘(3) OPEN-END LINES OF CREDIT.—With re-
spect to a depository institution, the requirements of 
subsections (a) and (b) shall not apply with respect 
to open-end lines of credit if the depository institu-
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tion originated less than 2,000 open-end lines of 
credit in each of the 2 preceding calendar years.’’. 
(b) DATA POINTS.—Section 304(b) of the Home 
Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is 
amended— 
(1) by striking paragraphs (5) and (6); 
(2) in paragraph (3), by inserting ‘‘and’’ at the 
end; and 
(3) in paragraph (4), by striking ‘‘age.’’. 
SEC. 9. REPEAL OF SMALL BUSINESS LOAN COLLECTION 
DATA. 
(a) REPEAL.—Section 704B of the Equal Credit Op-
portunity Act (15 U.S.C. 1691c–2) is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
for title VII of the Consumer Credit Protection Act is 
amended by striking the item relating to section 704B. 
SEC. 10. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI-
NATION REQUESTS AND ORDERS. 
(a) TERMINATION REQUESTS OR ORDERS MUST BE 
MATERIAL.— 
(1) IN
GENERAL.—An appropriate Federal 
banking agency may not formally or informally re-
quest or order a depository institution to terminate 
a specific customer account or group of customer ac-
counts or to otherwise restrict or discourage a de-
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SEC. 16. AMENDMENTS TO ABILITY TO PAY REQUIREMENTS 
FOR MORTGAGE LOANS. 
Section 129C(b)(3) of the Truth in Lending Act (15 
U.S.C. 1639C(b)(3)) is amended— 
(1) by amending subparagraph (A) to read as 
follows: 
‘‘(A) IN GENERAL.— 
‘‘(i) 
BUREAU
REGULATIONS.—The 
Bureau shall prescribe regulations to carry 
out the purposes of this subsection, except 
that the Bureau may not prescribe any 
regulation that addresses modifies any pro-
vision of paragraph (2)(A)(iii), or that ad-
dresses modifies any rule promulgated by 
the Federal Housing Finance Agency pur-
suant to subparagraph (B)(i). Any existing 
regulation of the Bureau that addresses 
modifies paragraph (2)(A)(iii) shall have 
no force or effect as of the date the Fed-
eral Housing Finance Agency prescribes a 
rule pursuant to subparagraph (B)(i)(II). 
‘‘(ii) FEDERAL
HOUSING
FINANCE 
AGENCY
REGULATIONS.—The 
Federal 
Housing Finance Agency shall only pre-
scribe regulations to carry out the pur-
poses of paragraph (2)(A)(iii). The Federal 
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