TITLE III—REDUCTIONS IN GOV-
ERNMENT OVERREGULATION
SEC. 300. SHORT TITLE.
Titles III and IV may be cited as the ‘‘Financial In-
stitutions Regulatory Relief Act of 1996’’.
Subtitle A—The Home Mortgage
Process
SEC. 301. REGULATORY AUTHORITY OVER DISCLOSURES
AND 
ESCROW 
ACCOUNTS 
UNDER 
RESPA
TRANSFERRED 
TO 
FEDERAL 
RESERVE
BOARD.
(a) IN GENERAL.—Sections 4, 5, 6, and 10(d) of the
Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2601 et seq.) are amended by striking ‘‘Secretary’’
each place such term appears and inserting ‘‘Board’’.
(b) CLARIFICATION OF PURPOSE.—Section 2(b)(2) of
the Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2601(b)(2)) is amended by inserting the following
before the semicolon at the end: ‘‘without—
‘‘(A) directly regulating settlement services
prices; or
‘‘(B) directly regulating wages to bona fide
employees that are not designed as a subterfuge
to facilitate kickbacks among affiliated compa-
nies’’.
(c) BOARD DEFINED.—Section 3 of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2602) is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(7);
(2) by striking the period at the end of para-
graph (8) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(9) the term ‘Board’ means the Board of Gov-
ernors of the Federal Reserve System.’’.
(d) NEGOTIATED REGULATIONS UNDER SECTIONS 8
AND 9.—Section 8 of the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2607) is amended by adding
at the end the following new subsection:
‘‘(e) NEGOTIATED REGULATIONS.—
‘‘(1) IN
GENERAL.—The Secretary may not
publish a proposed or final regulation under this sec-
tion and section 9 after the date of the enactment
of the Financial Institutions Regulatory Relief Act
of 1996 unless the Secretary has used the negotiated
rulemaking procedure established under subchapter
III of chapter 5 of title 5, United States Code, to
attempt to negotiate and develop the rule.
‘‘(2) CONSISTENCY WITH PURPOSE.—Any regu-
lation prescribed in accordance with paragraph (1)
shall be consistent with the purposes of this title as
set forth in section 2.’’.
(e) ADMINISTRATIVE ENFORCEMENT OF PROHIBI-
TION AGAINST KICKBACKS AND UNEARNED FEES.—Sec-
tion 8 of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2607) is amended by adding after sub-
section (e) (as added by subsection (d) of this section) the
following new subsection:
‘‘(f) ADMINISTRATIVE ENFORCEMENT.—
‘‘(1) IN
GENERAL.—Compliance with the re-
quirements of this section and sections 9 and 12
shall be enforced under this Act—
‘‘(A) in the case of an insured depository
institution (as defined in section 3 of the Fed-
eral Deposit Insurance Act), by the appropriate
Federal banking agency (as defined in such sec-
tion);
‘‘(B) in the case of an insured credit union
(as defined in section 101(7) of the Federal
Credit Union Act), by the National Credit
Union Administration;
‘‘(C) in the case of a bank holding com-
pany (as defined in section 2 of the Bank Hold-
ing Company Act of 1956) and any affiliate of
any such holding company (other than an in-
sured depository institution), by the Board;
‘‘(D) in the case of a savings and loan
holding company (as defined in section 10 of
the Home Owners’ Loan Act) and any affiliate
of any such holding company (other than an in-
sured depository institution), by the Director of
the Office of Thrift Supervision; and
‘‘(E) in the case of any other person, by
the Secretary.
‘‘(2) SPECIAL
RULES
RELATING
TO
DETER-
MINATION OF APPROPRIATE REGULATOR.—
‘‘(A) CASES
OF
MORE
THAN
APPRO-
PRIATE REGULATOR.—If, under paragraph (1),
a company may be regulated by more than 1
agency, the Board shall determine which agency
shall be the responsible agency, notwithstanding
paragraph (1).
‘‘(B) CASES INVOLVING JOINT VENTURES,
PARTNERSHIPS, AND OTHER AFFILIATED BUSI-
NESS ARRANGEMENTS.—If any insured deposi-
tory institution is involved in a joint venture,
partnership, or other affiliated business ar-
rangement with any person who is not an in-
sured depository institution, the agency respon-
sible for enforcing this section and sections 9
and 12 with respect to such insured depository
institution shall be the agency with such re-
sponsibility with respect to such joint venture,
partnership, or other affiliated business ar-
rangement.
‘‘(3) INTERAGENCY
COOPERATION
AND
EN-
FORCEMENT GUIDELINES.—All the agencies referred
to in any subparagraph of paragraph (1) shall co-
operate with each other to develop enforcement
guidelines and other means for achieving effective
compliance with this section and sections 9 and 12.
‘‘(4) PREFERENCE
FOR
CIVIL
ENFORCEMENT
OVER CRIMINAL ENFORCEMENT.—As part of the co-
operative efforts required under paragraph (3), the
agencies referred to in paragraph (1) shall consider
means for achieving compliance with this section and
section 9 through the exercise of administrative en-
forcement authority under this subsection without
resorting to criminal enforcement actions under sub-
section (d) except in appropriate cases.
‘‘(5) EFFECTIVE
DATE.—Paragraphs (1) and
(2) shall not take effect until joint interagency co-
operation and enforcement guidelines are adopted by
all the agencies to which paragraphs (1) and (2)
apply and the enforcement authority of the Sec-
retary with respect to this section and sections 9 and
12 shall continue until such paragraphs take ef-
fect.’’.
(f) INCREASED SCIENTER REQUIREMENT FOR CRIMI-
NAL PENALTY.—Section 8(d) of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2607(d)) is
amended—
(1) in paragraph (1), by inserting ‘‘willfully’’
after ‘‘persons who’’; and
(2) in paragraph (3), by striking ‘‘was not in-
tentional and’’.
(g) REDESIGNATION OF CONTROLLED BUSINESS AR-
RANGEMENTS
AS
AFFILIATED
BUSINESS
ARRANGE-
MENTS.—The Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2601 et seq.) is amended—
(1) in section 3(7), by striking ‘‘controlled busi-
ness arrangement’’ and inserting ‘‘affiliated business
arrangement’’; and
(2) in subsections (c)(4) and (d)(6) of section
8, by striking ‘‘controlled business arrangements’’
and inserting ‘‘affiliated business arrangements’’.
(h) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 4(a) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2603(a)) is
amended by striking ‘‘Federal Home Loan Bank
Board’’ and inserting ‘‘Director of the Office of
Thrift Supervision’’.
(2) Section 8(d)(4) of the Real Estate Settle-
ment 
Procedures 
Act 
of 
1974 
(12 
U.S.C.
2607(d)(4)) is amended by inserting ‘‘any other
agency described in subsection (f)(1),’’ after ‘‘the
Secretary,’’.
(3) Section 10(c)(1)(C) of the Real Estate Set-
tlement Procedures Act of 1974 (12 U.S.C.
2609(c)(1)(C)) is amended by striking ‘‘Not later
than the expiration of the 90-day period beginning
on the date of the enactment of the Cranston-Gon-
zalez National Affordable Housing Act, the’’ and in-
serting ‘‘The’’.
(4) Section 16 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2614) is amend-
ed by striking ‘‘Secretary,’’ and inserting ‘‘Board, an
agency referred to in any subparagraph of section
8(f)(1),’’.
(5) Section 18 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2616) is amend-
ed—
(A) by striking ‘‘Secretary is authorized
to’’ and inserting ‘‘Board and Secretary may
jointly’’;
(B) by striking ‘‘Secretary’’ each place
such term appears other than the 1st place and
inserting ‘‘Board and Secretary’’; and
(C) by striking ‘‘determines that such
laws’’ and inserting ‘‘determine that such
laws’’.
(6) Section 19(a) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2617(a)) is
amended to read as follows:
‘‘(a) REGULATIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Secretary and the Board may prescribe such
regulations, make such interpretations, and grant
such reasonable exemptions for classes of trans-
actions, as may be necessary to achieve the purposes
of this Act.
‘‘(2) APPLICATION.—
‘‘(A) BOARD.—The authority of the Board
under paragraph (1) shall apply with respect
to—
‘‘(i) sections 4, 5, 6, 10, and 12; and
‘‘(ii) sections 3, 7, 17, and 18 to the
extent such sections are applicable with re-
spect to the sections described in clause (i).
‘‘(B) SECRETARY.—The authority of the
Secretary under paragraph (1) shall apply with
respect to—
‘‘(i) sections 8 and 9; and
‘‘(ii) sections 3, 7, 17, and 18 to the
extent such sections are applicable with re-
spect to the sections described in clause
(i).’’.
(7) Section 19(b) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2617(b)) is
amended by inserting ‘‘, the Board,’’ after ‘‘the Sec-
retary’’.
(8) Section 19(c) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2617(c)) is
amended—
(A) in paragraph (1)—
(i) by striking ‘‘Secretary’’ the 1st
place such term appears and inserting
‘‘Board, with respect to any action to en-
force section 4, 5, 6, or 10, and each agen-
cy referred to in any subparagraph of sec-
tion 8(f)(1), with respect to any action to
enforce section 8, 9, or 12,’’; and
(ii) by striking ‘‘Secretary’’ each place
such term appears other than the 1st place
and inserting ‘‘Board or such other agen-
cy’’; and
(B) in paragraph (2), by striking ‘‘Sec-
retary’’ and inserting ‘‘Board or an agency re-
ferred to in any subparagraph of section
8(f)(1)’’.
(9) The heading for section 19 of the Real Es-
tate Settlement Procedures Act of 1974 (12 U.S.C.
2617) is amended to read as follows:
‘‘AUTHORITY OF THE SECRETARY AND THE FEDERAL
RESERVE BOARD’’.
(i) REPEAL OF OBSOLETE PROVISIONS.—The Real
Estate Settlement Procedures Act of 1974 (12 U.S.C.
2601 et seq.) is amended by striking sections 13, 14, and
15.
SEC. 302. SIMPLIFICATION AND UNIFICATION OF DISCLO-
SURES REQUIRED UNDER RESPA AND TILA
FOR MORTGAGE TRANSACTIONS.
(a) IN GENERAL.—With respect to credit trans-
actions which are subject to the Real Estate Settlement
Procedures Act of 1974 and the Truth in Lending Act,
the Board of Governors of the Federal Reserve System
shall take such action as may be necessary before the end
of the 3-month period beginning on the date of the enact-
ment of this Act—
(1) to simplify the disclosures applicable to such
transactions under such Acts, including the timing
of the disclosures; and
(2) to provide a single format for such disclo-
sures which will satisfy the requirements of each
such Act with respect to such transactions.
(b) REGULATIONS.—To the extent that it is nec-
essary to prescribe any regulation in order to effect any
changes required to be made under subsection (a), the pro-
posed regulation shall be published in the Federal Register
before the end of the 3-month period referred to in sub-
section (a).
(c) RECOMMENDATIONS FOR LEGISLATION.—If the
Board of Governors of the Federal Reserve System finds
that legislative action may be necessary or appropriate in
order to simplify and unify the disclosure requirements
under the Real Estate Settlement Procedures Act of 1974
and the Truth in Lending Act, the Board shall submit
a report containing recommendations to the Congress con-
cerning such action.
SEC. 303. INCREASED REGULATORY FLEXIBILITY UNDER
THE TRUTH IN LENDING ACT.
(a) REGULATORY FLEXIBILITY.—Section 104 of the
Truth in Lending Act (15 U.S.C. 1603) is amended by
adding at the end the following new paragraph:
‘‘(7) Transactions for which the Board, by reg-
ulation, determines that coverage under the Act is
not needed to carry out the purposes of the Act.’’.
(b) EXEMPTIVE AUTHORITY.—Section 105 of the
Truth in Lending Act (15 U.S.C. 1604) is amended—
(1) by redesignating subsections (b), (c), and
(d) as subsections (c), (d), and (e), respectively; and
(2) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) EXEMPTIVE AUTHORITY.—
‘‘(1) IN
GENERAL.—The Board shall exempt
from all or parts of this title any class of trans-
actions for which, in the Board’s judgment, coverage
under all or part of this title does not provide a
measurable benefit to consumers in the form of use-
ful information or protection.
‘‘(2) FACTORS TO BE CONSIDERED.—In deter-
mining which classes of transactions to exempt in
whole or in part, the Board shall consider, among
other factors, the following:
‘‘(A) The amount of the loan or closing
costs and whether the disclosures, right of re-
scission, and other provisions are necessary,
particularly for small loans.
‘‘(B) Whether the requirements of this title
complicate, hinder, or make more expensive the
credit process for the class of transactions.
‘‘(C) The status of the borrower, including,
the borrowers’ related financial arrangements,
the financial sophistication of the borrower rel-
ative to the type of transaction, and the impor-
tance of the credit and related supporting prop-
erty to the borrower.’’.
SEC. 304. REDUCTIONS IN RESPA REGULATORY BURDENS;
CLARIFYING AMENDMENTS.
(a) UNNECESSARY DISCLOSURE.—Section 6(a) of the
Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2605) is amended to read as follows:
‘‘(a) DISCLOSURE TO APPLICANT RELATING TO AS-
SIGNMENT, SALE, OR TRANSFER OF LOAN SERVICING.—
‘‘(1) IN GENERAL.—Each person who makes a
federally related mortgage loan shall disclose to each
person who applies for any such loan, at the time of
application for the loan, whether the servicing of any
such loan may be assigned, sold, or transferred to
any other person at any time while such loan is out-
standing.
‘‘(2) SIGNATURE OF APPLICANT.—Any disclo-
sure of the information required under paragraph
(1) shall not be effective for purposes of this section
unless the disclosure is accompanied by a written
statement, in such form as the Secretary shall de-
velop before the expiration of the 180-day period be-
ginning on the date of the enactment of the Finan-
cial Institutions Regulatory Relief Act of 1996, that
the applicant has read and understood the disclosure
and that is evidenced by the signature of the appli-
cant at the place where such statement appears in
the application.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect 180 days after the date
of the enactment of this Act.
(c) SECOND MORTGAGES.—Section 3(1)(A) of the
Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2602(1)(A)) is amended by striking ‘‘or subordi-
nate’’.
(d) CONSISTENCY OF RESPA AND TRUTH IN LEND-
ING ACT EXEMPTION OF BUSINESS LOANS.—Section 7 of
the Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2606) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘This Act’’; and
(2) by inserting at the end the following new
subsection:
‘‘(b) INTERPRETATION.—In issuing regulations pur-
suant to section 19(a) of this Act, the Board shall ensure
that, with regard to subsection (a), the exemption for busi-
ness credit includes all business credit which is exempt
from the Truth in Lending Act in accordance with section
226.3(a) of the regulations prescribed by the Board known
as ‘regulation Z’ (12 C.F.R. 226.3(a)), as in effect on the
date of enactment of the Financial Institutions Regulatory
Relief Act of 1996.’’.
SEC. 305. DISCLOSURES FOR ADJUSTABLE RATE MORT-
GAGES.
(a) IN GENERAL.—Section 127A(a)(2)(G) of the
Truth in Lending Act (15 U.S.C. 1637a(a)(2)(G)) is
amended by inserting before the semicolon ‘‘, or a state-
ment that the monthly payment may increase or decrease
significantly due to increases in the annual percentage
rate’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 127A(b)(3) of the Truth in Lending Act (15
U.S.C. 1637a(b)(3)) is amended by striking ‘‘required
under’’ and inserting ‘‘referred to in’’.
(c) ALTERNATIVE TO HISTORICAL EXAMPLE.—Sec-
tion 128(a) of the Truth in Lending Act (15 U.S.C.
1638(a)) is amended by inserting at the end the following
new paragraph:
‘‘(14) In any variable rate transaction secured
by the consumer’s principal dwelling with a term
greater than 1 year, at the creditors’ option, a state-
ment that the monthly payment may increase or de-
crease substantially, or a historical example illustrat-
ing the effects of interest rate changes implemented
according to the loan program.’’.
(d) ENSURING HONORING OF LOCK-IN PROMISES.—
Section 128(b) of the Truth in Lending Act (15 U.S.C.
1638(b)) is amended by adding at the end the following
new paragraph:
‘‘(3) In the case of a residential mortgage trans-
action, the disclosures under subsection (a) shall include
the following:
‘‘(A) The note rate and points, and a state-
ment, if applicable, that these terms are subject to
change.
‘‘(B) A statement that the creditor must in-
clude the disclosed note rate and points in the credit
agreement unless, in relation to either or both of
those terms—
‘‘(i) the disclosure clearly and conspicu-
ously indicates that the term is subject to
change, or
‘‘(ii) in the case of any term to which
clause (i) does not apply—
‘‘(I) the creditor has clearly and con-
spicuously indicated that the term is condi-
tioned on closing the transaction within a
prescribed time;
‘‘(II) the creditor has promptly and
clearly communicated to the consumer the
information and documentation that the
consumer is required to provide to the
creditor; and
‘‘(III) the consumer has failed to pro-
vide such information and documentation
within a reasonable time after receiving
that communication.’’.
SEC. 306. CERTAIN CHARGES.
Section 106(c) of the Truth in Lending Act (15
U.S.C. 1605(c)) is amended to read as follows:
‘‘(c) TREATMENT OF CERTAIN DEBT CANCELLATION
AND DEFICIENCY WAIVER CONTRACTS.—Charges or pre-
miums for any insurance or for any voluntary noninsur-
ance product, written in connection with any consumer
credit transaction, that provides protections against loss
of or damage to property or against part or all of the debt-
or’s liability for amounts in excess of the value of the col-
lateral securing the debtor’s obligation, or against liability
arising out of the ownership or use of property, shall be
included in the finance charge unless a clear and specific
statement in writing is furnished by the creditor to the
person to whom the credit is extended, setting forth the
cost of the insurance or product if obtained from or
through the creditor, and stating that the person to whom
credit is extended may choose the person through which
the insurance or product is to be obtained.’’.
SEC. 307. EXEMPTIONS FROM RESCISSION.
(a) CERTAIN REFINANCING.—Section 125(e) of the
Truth in Lending Act (15 U.S.C. 1635(e)) is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; or’’; and
(3) by adding at the end the following new
paragraph:
‘‘(5) a transaction, other than a mortgage re-
ferred to in section 103(aa), which—
‘‘(A) is a refinancing of the principal bal-
ance then due and any accrued and unpaid fi-
nance charges of a residential mortgage trans-
action as defined in section 103(w), or is any
subsequent refinancing of such a transaction;
and
‘‘(B) does not provide any new consolida-
tion or new advance.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 125(e)(2) of the Truth in Lending Act (15 U.S.C.
1635(e)(2)) is amended by inserting ‘‘, other than a trans-
action described in subsection (e)(5),’’ after ‘‘a refinancing
or consolidation (with no new advances)’’.
SEC. 308. RECOVERY OF FEES.
Section 125(b) of the Truth in Lending Act (15
U.S.C. 1635) is amended—
(1) in the 1st sentence, by inserting ‘‘, except
any charge for an appraisal report or credit report’’
after ‘‘other charge’’; and
(2) in the 2d sentence, by striking ‘‘otherwise’’
and inserting ‘‘as otherwise required under this sub-
section’’.
SEC. 309. HOME OWNERSHIP DEBT COUNSELING NOTIFICA-
TION.
Section 106(c) of the Housing and Urban Develop-
ment Act of 1968 (12 U.S.C. 1701x(c)) is amended by
striking paragraph (5).
SEC. 310. HOME MORTGAGE DISCLOSURE ACT.
(a) Section 309 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2808) is amended—
(1) 
in 
the 
2d 
sentence, 
by 
striking
‘‘$10,000,000’’ and inserting ‘‘$50,000,000’’; and
(2) by inserting at the end the following new
sentences: ‘‘The Board may also, by regulation, ex-
empt from the provisions of this Act institutions
specified in section 303(2)(A) which have total as-
sets as of their last full fiscal year of $50,000,000
or greater where the burden of complying with this
Act on such institutions outweighs the usefulness of
the information required to be disclosed. The exemp-
tions provided under this section shall not be appli-
cable to an institution which the Board, by order,
has found a reasonable basis to believe is not fulfill-
ing its obligations to serve the housing needs of the
communities and neighborhoods in which it located.
An institution subject to such an order shall be re-
quired to comply with the requirements of this Act
for loans made after the time that the order is is-
sued at such time and for such period as the Board
deems appropriate. The dollar amount in this section
shall be adjusted annually after December 31, 1994,
by the annual percentage increase in the Consumer
Price Index for Urban Wage Earners and Clerical
Workers published by the Bureau of Labor Statis-
tics.’’.
(b) Section 304 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2803) is amended by adding at
the end the following new subsection:
‘‘(m) OPPORTUNITY TO REDUCE COMPLIANCE BUR-
DEN.—
‘‘(1) A depository institution shall be considered
to have satisfied the public availability requirements
of subsection (a) if such institution keeps the infor-
mation required under that subsection at its home
office and provides notice at the branch locations
specified in such subsection that such information is
available upon request from the home office of the
institution. A home office of the depository institu-
tion receiving a request for such information pursu-
ant to this subsection shall provide the information
pertinent to the location of the branch in question
within fifteen days of the receipt of the written re-
quest.
‘‘(2) In complying with paragraph (1), a deposi-
tory institution may provide the individual request-
ing such information, at the institution’s choice,
with—
‘‘(A) a paper copy of the information re-
quested; or
‘‘(B) if acceptable to the individual, the in-
formation through a form of electronic medium,
such as computer disc.’’.
Subtitle B—Community
Reinvestment Act Amendments
SEC. 321. EXPRESSION OF CONGRESSIONAL INTENT.
Subsection (b) of section 802 of the Community Rein-
vestment Act of 1977 (12 U.S.C. 2901) is amended to
read as follows:
‘‘(b) It is the purpose of this title to require each ap-
propriate Federal financial supervisory agency to use its
authority, when examining financial institutions, to en-
courage such institutions to help meet the credit needs of
the local communities in which they are chartered consist-
ent with the safe and sound operation of such institutions.
When examining financial institutions, a supervisory agen-
cy shall not impose additional burden, recordkeeping, or
reporting upon such institutions.’’.
SEC. 322. COMMUNITY REINVESTMENT ACT EXEMPTION.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 809. EXAMINATION EXEMPTION.
‘‘(a) IN GENERAL.—A regulated financial institution
shall not be subject to the examination requirements of
this title or any regulations issued under this section if
‘‘(1) the main office (and each branch of such
institution) is located in a town, political subdivision,
or other unit of general local government no part of
which falls within any metropolitan statistical area;
and
‘‘(2) the aggregate assets of such institution
and any depository institution holding company
which controls such institution is not greater than
$100,000,000.
‘‘(b) ANNUAL ADJUSTMENT.—The dollar amount in
subsection (a)(2) shall be adjusted annually after Decem-
ber 31, 1994, by the annual percentage increase in the
Consumer Price Index for Urban Wage Earners and Cleri-
cal Workers published by the Bureau of Labor Statis-
tics.’’.
SEC. 323. COMMUNITY INPUT AND CONCLUSIVE RATING.
(a) CONFORMING AMENDMENT.—Section 804(a) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by inserting ‘‘conducted in accordance
with section 806A,’’ after ‘‘financial institution,’’.
(b) COMMUNITY INPUT AND CONCLUSIVE RATING.—
The Community Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.) is amended by inserting after section 806
the following new section:
‘‘SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.
‘‘(a) PUBLICATION OF EXAM SCHEDULE AND OPPOR-
TUNITY FOR COMMENT.—
‘‘(1) PUBLICATION OF NOTICE.—Each appro-
priate Federal financial supervisory agency shall—
‘‘(A) publish in the Federal Register, 30
days before the beginning of a calendar quarter,
a listing of institutions scheduled for evaluation
for compliance with this title during such cal-
endar quarter; and
‘‘(B) provide opportunity for written com-
ments from the community on the performance,
under this title, of each institution scheduled
for evaluation.
‘‘(2) COMMENT
PERIOD.—Written comments
may not be submitted to an appropriate Federal fi-
nancial supervisory agency pursuant to paragraph
(1) after the end of the 30-day period beginning on
the first day of the calendar quarter.
‘‘(3) COPY OF COMMENTS.—The agency shall
provide a copy of such comments to the institution.
‘‘(b) EVALUATION.—The appropriate Federal finan-
cial supervisory agency shall—
‘‘(1) evaluate the institution in accordance with
the standards contained in section 804; and
‘‘(2) prepare and publish a written evaluation of
the institution as required under section 807.
‘‘(c) RECONSIDERATION OF RATING.—
‘‘(1) REQUEST FOR RECONSIDERATION.—A re-
consideration of an institution’s rating referred to in
section 807(b)(1)(C), may be requested within 30
days of the rating’s disclosure to the public.
‘‘(2) PROCEDURES FOR REQUEST.—Any such
request shall be made in writing and filed with the
appropriate Federal financial supervisory agency,
and may be filed by the institution or a member of
the community.
‘‘(3) BASIS FOR REQUEST.—Any request for re-
consideration under this subsection shall be based on
significant issues of a substantive nature which are
relevant to the delineated community of the institu-
tion and, in the case of a request by a member of
the community, shall be limited to issues previously
raised in comments submitted pursuant to sub-
section (a).
‘‘(4) COMPLETION
OF
REVIEW.—The appro-
priate Federal financial supervisory agency shall
complete any requested reconsideration within 30
days of the filing of the request.
‘‘(d) CONCLUSIVE RATING.—
‘‘(1) IN GENERAL.—An institution’s rating shall
become conclusive on the later of—
‘‘(A) 30 days after the rating is disclosed
to the public; or
‘‘(B) the completion of any requested re-
consideration by the Federal financial super-
visory agency.
‘‘(2) RATING CONCLUSIVE OF MEETING COMMU-
NITY CREDIT NEEDS.—An institution’s rating shall
be the conclusive assessment of the institution’s
record of meeting the credit needs of its community
for purposes of section 804 until the institution’s
next rating, developed pursuant to an examination,
becomes conclusive.
‘‘(3) SAFE HARBOR.—Institutions which have
received a ‘satisfactory’ or ‘outstanding’ rating shall
be deemed to have met the purposes of section 804.
‘‘(4) RULE OF CONSTRUCTION.—Notwithstand-
ing any other provision of law, no provision of this
section shall be construed as granting a cause of ac-
tion to any person.’’.
(c) OVERALL EVALUATION OF INSTITUTION.—Para-
graph (2) of section 804(a) of the Community Reinvest-
ment Act of 1977 (12 U.S.C. 2903(a)) is amended to read
as follows:
‘‘(2) take such record into account in the over-
all evaluation of the condition of the institution by
the appropriate Federal financial supervisory agen-
cy.’’.
SEC. 324. SPECIAL PURPOSE FINANCIAL INSTITUTIONS.
(a) IN GENERAL.—Section 804 of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended
by adding at the end the following new subsection:
‘‘(c) SPECIAL PURPOSE INSTITUTIONS.—
‘‘(1) IN GENERAL.—In conducting assessments
pursuant to this section at any special purpose insti-
tution, the appropriate Federal financial supervisory
agency shall—
‘‘(A) consider the nature of business such
institution is involved in; and
‘‘(B) assess and take into account the
record of the institution commensurate with the
amount of deposits (as defined in section 3(1)
of the Federal Deposit Insurance Act) received
by such institution.
‘‘(2) STANDARDS.—Each appropriate Federal
financial supervisory agency shall develop standards
under which special purpose institutions may be
deemed to have complied with the requirements of
this title which are consistent with the specific na-
ture of such businesses.’’.
(b) SPECIAL PURPOSE INSTITUTION DEFINED.—
Section 803 of the Community Reinvestment Act of 1977
(12 U.S.C. 2902) is amended by adding at the end the
following new paragraph:
‘‘(5) SPECIAL
PURPOSE
INSTITUTIONS.—The
term ‘special purpose institution’ means a financial
institution that does not generally accept deposits
from the public in amounts of less than $100,000,
such as wholesale, credit card, and trust institu-
tions.’’.
SEC. 325. INCREASED INCENTIVES FOR LENDING TO LOW-
AND MODERATE-INCOME COMMUNITIES.
(a) IN GENERAL.—Section 804(b) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903(b)) is amend-
ed to read as follows:
‘‘(b) POSITIVE CONSIDERATION OF CERTAIN LOANS
AND INVESTMENTS.—In assessing and taking into ac-
count the records of a regulated financial institution under
subsection (a), the appropriate Federal financial super-
visory agency shall—
‘‘(1) consider as a positive factor, consistent
with the safe and sound operation of the institution,
the institution’s investment in or loan to—
‘‘(A) any minority depository institution or
women’s depository institution (as such terms
are defined in section 808(b)) or any low-in-
come credit union;
‘‘(B) any joint venture or other entity or
project which promotes the public welfare in
any distressed community (as defined by such
agency) whether or not the distressed commu-
nity is located in the local community in which
the regulated financial institution is chartered
to do business; and
‘‘(C) targeted low- and moderate-income
communities, including real property loans to
such communities; and
‘‘(2) consider equally with other factors capital
investment, loan participation, and other ventures
undertaken by the institution in cooperation with—
‘‘(A) minority- and women-owned financial
institutions and low-income credit unions to the
extent that these activities help meet the credit
needs of the local communities in which such
institutions are chartered; and
‘‘(B) community development corporations
in extending credit and other financial services
principally to low- and moderate-income persons
and small businesses to the extent that such
community development corporations help meet
the credit needs of the local communities served
by the majority-owned institution.’’.
(b) AMENDMENT TO DEFINITIONS.—Section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended by inserting after paragraph (5) (as
added by section 324(b) of this subtitle) the following new
paragraph:
‘‘(6) STATE
BANK
SUPERVISOR.—The term
‘State bank supervisor’ has the same meaning as in
section 3(r) of the Federal Deposit Insurance Act.’’.
(c) TECHNICAL CORRECTION.—The 1st of the 2
paragraphs designated as paragraph (2) of section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended to read as follows:
‘‘(D) the Director of the Office of Thrift
Supervision with respect to any savings associa-
tion (the deposits of which are insured by the
Federal Deposit Insurance Corporation) and
any savings and loan holding company (other
than a company which is a bank holding com-
pany);’’.
SEC. 
326. 
PROHIBITION 
ON 
ADDITIONAL 
REPORTING
UNDER CRA.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) is amended to read as follows:
‘‘SEC. 806. REGULATIONS.
‘‘(a) IN GENERAL.—
‘‘(1) 
PUBLICATION
REQUIREMENT.—Regula-
tions to carry out the purposes of this title shall be
published by each appropriate Federal financial su-
pervisory agency.
‘‘(2) PROHIBITION
ON
ADDITIONAL
RECORD-
KEEPING.—Regulations prescribed and policy state-
ments, commentary, examiner guidance, or other su-
pervisory material issued under this title shall not
impose any additional recordkeeping on a financial
institution.
‘‘(3) PROHIBITION
ON
LOAN
DATA
COLLEC-
TION.—No loan data may be required to be collected
and reported by a financial institution and no such
data may be made public by any Federal financial
supervisory agency under this title.’’.
SEC. 327. TECHNICAL AMENDMENT.
Section 807(b)(1)(B) of the Community Reinvest-
ment Act (12 U.S.C. 2906) is amended by striking ‘‘The
information’’ and inserting ‘‘In the case of a regulated fi-
nancial institution that maintains domestic branches in 2
or more States, the information’’.
SEC. 328. DUPLICATIVE REPORTING.
Section 10(g) of the Federal Home Loan Bank Act
(12 U.S.C. 1430(g)) is amended by adding at the end the
following new paragraph (3):
‘‘(3) SPECIAL RULE.—This subsection shall not
apply to members receiving a grade of ‘outstanding’
or ‘satisfactory’ under section 807 of the Community
Reinvestment Act of 1977.’’.
SEC. 329. CRA CONGRESSIONAL OVERSIGHT.
(a) SENSE OF CONGRESS RELATING TO AGGRESSIVE
OVERSIGHT.—It is the sense of the Congress that the ap-
propriate committees of the House of Representatives and
the Senate should exercise aggressive oversight of the
adoption and implementation of any regulation by any ap-
propriate Federal financial supervisory agency under the
Community Reinvestment Act of 1977 after the date of
the enactment of this Act.
(b) AGENCY REPORTS REQUIRED.—
(1) IN GENERAL.—Each appropriate Federal fi-
nancial supervisory agency shall submit a report to
‘‘(b) LIMITATION ON REGULATIONS.—No regulation
may be prescribed under this title by any Federal agency
which would—
‘‘(1) require any regulated financial institution
to—
‘‘(A) make any loan or enter into any
other agreement on the basis of any discrimina-
tory criteria prohibited under any law of the
United States; or
‘‘(B) make any loan to, or enter into any
other agreement with, any uncreditworthy per-
son that would jeopardize the safety and sound-
ness of such institution; or
‘‘(2) prevent or hinder in any way a financial
institution’s full responsibility to provide credit to all
segments of the community.
‘‘(c) ENCOURAGE LOANS TO CREDITWORTHY BOR-
ROWERS.—Regulations prescribed under this title shall en-
courage regulated financial institutions to make loans and
extend credit to all creditworthy persons, consistent with
safety and soundness.’’.
Subtitle C—Consumer Banking
Reforms
SEC. 341. TRUTH IN SAVINGS.
(a) PURPOSE.—Section 262 of the Truth in Savings
Act (12 U.S.C. 4301) is amended to read as follows:
‘‘SEC. 262. PURPOSE.
‘‘It is the purpose of this subtitle to ensure that con-
sumers can make a meaningful comparison between the
competing claims of depository institutions with regard to
deposit accounts by requiring that institutions offering in-
terest-bearing accounts pay interest on the full amount of
principal each day in a consumer deposit account at the
rate agreed to be paid by the institution.’’.
(b) PROHIBITION ON MISLEADING OR INACCURATE
ADVERTISEMENTS
AND DISCLOSURES.—Section 263 is
amended to read as follows:
‘‘SEC. 263. PROHIBITION ON MISLEADING OR INACCURATE
ADVERTISEMENTS AND DISCLOSURES.
‘‘No depository institution or deposit broker shall
make any advertisement, announcement, solicitation or
disclosure relating to a deposit account that is inaccurate
or misleading, including any inaccurate or misleading de-
scription of a free or no-cost account, or that misrepre-
sents its deposit contracts.’’.
(c) ACCOUNT INFORMATION UPON OPENING AN AC-
COUNT.—Section 264 of the Truth in Savings Act (12
U.S.C. 4304) is amended to read as follows:
‘‘SEC. 264. ACCOUNT INFORMATION.
‘‘(a) IN GENERAL.—Each depository institution shall
disclose fees, charges, penalties, and interest rates applica-
ble to each class of accounts offered by the institution in
accordance with this section.
‘‘(b) INFORMATION ON FEES AND CHARGES.—Each
depository institution shall disclose the following informa-
tion with respect to any account to a consumer at the time
the account is opened, or at such earlier time as a
consumer may request (and no additional information may
be required to be disclosed under this subtitle by regula-
tion or otherwise with respect to such account):
‘‘(1) A description of all fees, periodic service
charges, penalties, and interest rates which may be
charged or assessed against the account (or against
the account holder in connection with such account),
the amount of any such fees, charges, or penalties
(or the method by which such amount will be cal-
culated), and the conditions under which any such
amount will be assessed.
‘‘(2) All minimum balance requirements that af-
fect fees, charges, and penalties, including a clear
description of how each such minimum balance is
calculated.
‘‘(3) Any minimum amount required with re-
spect to the initial deposit in order to open the ac-
count.
‘‘(c) INFORMATION ON INTEREST RATES.—The dis-
closures required under subsections (a) and (b) with re-
spect to any account shall include the following informa-
tion:
‘‘(1) Any annual rate of simple interest.
‘‘(2) The frequency with which interest will be
compounded and credited.
‘‘(d) NO REGULATIONS AUTHORIZED.—No regula-
tions may be prescribed with respect to this section by the
Board or any agency referred to in this title, including
any regulation to define any terms used in this section.’’.
(d) DISCLOSURE OF CHANGE IN TERMS.—Section
265 of the Truth in Savings Act (12 U.S.C. 4304) is
amended to read as follows:
‘‘SEC. 265. DISCLOSURE OF CHANGE IN TERMS.
‘‘If any change is made in any item required to be
disclosed under section 264, all account holders who may
be affected by such change shall be notified by mail and
provided with a description of such change at least 30
days before the effective date of the change.’’.
(e) REPEAL OF SECTIONS.—Sections 266, 268, 271,
and 273 of the Truth in Savings Act (12 U.S.C. 4304,
4305, 4307, 4310, and 4312, respectively) are hereby re-
pealed.
(f) REDESIGNATION
OF SECTIONS.—Section 267,
270, 272 of the Truth in Savings Act (12 U.S.C. 4306,
4309, and 4311) are redesignated as sections 266, 268,
and 269, respectively.
(g) REDESIGNATION AND AMENDMENT OF SECTION
269.—Section 269 of the Truth in Savings Act (12 U.S.C.
4308) (as determined before the redesignation made by
subsection (f) of this section) is amended to read as fol-
lows:
‘‘SEC. 267. REGULATIONS.
‘‘(a) IN GENERAL.—The Board, after consultation
with each agency referred to in section 268(a) and public
notice and opportunity for comment, shall prescribe regu-
lations to carry out the purpose and provisions of this sub-
title.
‘‘(b) EFFECTIVE DATE OF REGULATIONS.—The pro-
visions of this subtitle shall not apply with respect to any
depository institution before the effective date of regula-
tions prescribed by the Board under this subsection.’’.
100
(h) REDESIGNATION AND AMENDMENT OF SECTION
274.—Section 274 of the Truth in Savings Act (12 U.S.C.
4313) is amended to read as follows:
‘‘SEC. 270. DEFINITIONS.
‘‘For the purposes of this subtitle, the following defi-
nitions shall apply:
‘‘(1) ACCOUNTS.—The term ‘account’ means
any account intended for use by and generally used
by a consumer primarily for personal, family, or
household purposes that is offered by a depository
institution.
‘‘(2) DEPOSIT
BROKER.—The term ‘deposit
broker’—
‘‘(A) has the meaning given to such term
in section 29(f)(1) of the Federal Deposit In-
surance Act; and
‘‘(B) includes any person who solicits any
amount from any other person for deposit in an
insured depository institution.
‘‘(3) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’—
‘‘(A) means an institution described in
clause (i), (ii), (iii), (iv), (v), or (vi) of section
19(b)(1)(A) of the Federal Reserve Act; and
101
‘‘(B) does not include nonautomated credit
unions which were not required to comply with
the requirements of this title as of the date of
the enactment of the Financial Institutions
Regulatory Relief Act of 1996 pursuant to the
determination of the National Credit Union Ad-
ministration Board.
‘‘(4) INTEREST.—The term ‘interest’ includes
dividends paid with respect to share accounts which
are accounts within the meaning of paragraph (1).
‘‘(5) BOARD.—The term ‘Board’ means the
Board of Governors of the Federal Reserve Sys-
tem.’’.
(i) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the effective date of
regulations prescribed by the Board of Governors of
the Federal Reserve System to implement such
amendments.
(2) AUTHORITY TO ISSUE REGULATIONS.—Not-
withstanding paragraph (1), the Board of Governors
of the Federal Reserve System shall prescribe regu-
lations in accordance with the amendment made by
subsection (g).
102
(3) CONTINUED APPLICABILITY OF PROVISIONS
UNTIL EFFECTIVE DATE OF NEW REGULATIONS.—
The Truth in Savings Act, as in effect on the day
before the date of the enactment of this Act, shall
continue to apply on and after such date until the
effective date of the amendments to such Act under
this section.
SEC. 342. INFORMATION SHARING.
Section 18 of the Federal Deposit Insurance Act (12
U.S.C. 1828) is amended by adding at the end the follow-
ing new subsection:
‘‘(s) CUSTOMER ACCESS TO PRODUCTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, any depository institution, or any
affiliate or subsidiary of any depository institution,
may share or exchange information or otherwise
transfer information between or among themselves
without any restriction or limitation if it is clearly
and conspicuously disclosed that the information
may be communicated among such persons and the
consumer is given the opportunity, before the time
that the information is initially communicated, to di-
rect that such information not be communicated
among such persons.
103
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘information’ means any and all
data, records, or other information and material ob-
tained or maintained by any depository institution or
any affiliate or subsidiary thereof in the ordinary
course of its business that relates in any way to a
person (as such term is defined in section 603(b) of
the Fair Credit Reporting Act) who applies for,
maintains, or has maintained an account or credit
relationship with or applied for, purchased or ob-
tained other products or services from any deposi-
tory institution or any affiliate or subsidiary of any
depository institution, regardless of the source of
manner in which the information is obtained or fur-
nished.
‘‘(3) RULE OF CONSTRUCTION.—Any depository
institution, or any affiliate or subsidiary of any de-
pository institution, relying on this subsection shall
not be deemed to be a consumer reporting agency,
user, or third party, and the information itself shall
not constitute a consumer report, within the mean-
ing of the Fair Credit Reporting Act or other similar
law.’’.
104
SEC. 343. ELECTRONIC FUND TRANSFER ACT CLARIFICA-
TION.
(a) DEFINITION
OF ACCEPTED CARD
OR OTHER
MEANS OF ACCESS.—Section 903(1) of the Electronic
Fund Transfer Act (15 U.S.C. 1693a(1)) is amended by
inserting before the semicolon at the end the following:
‘‘, but such term does not include a card, device, or com-
puter that a person may use to pay for transactions
through use of value stored on, or assigned to, the card,
device, or computer itself, except for those transactions
where such card, device, or computer is actually used to
access an account to effect such transaction’’.
(b) DEFINITION OF ACCOUNT.—Section 903(2) of
the Electronic Fund Transfer Act (15 U.S.C. 1693a(2))
is amended by inserting before the semicolon at the end
the following: ‘‘and does not include any value which is
stored on, or assigned to, a card, device, or computer itself
that enables a person to pay for transactions through use
of that stored value’’.
SEC. 344. LIMIT ON RESTITUTION FOR TRUTH IN LENDING
VIOLATIONS IF SAFETY AND SOUNDNESS OF
VIOLATOR WOULD BE AFFECTED.
Section 108(e)(3)(A) of the Truth in Lending Act (15
U.S.C. 1607(e)(3)(A)) is amended—
105
(1) by striking ‘‘in any such case, the agency
may require’’ and inserting ‘‘in any such case, the
agency may (i) require’’;
(2) by striking ‘‘, except that with respect to
any transaction consummated after the effective
date of section 608 of the Truth in Lending Sim-
plification and Reform Act, the agency shall’’ and
inserting ‘‘; or (ii)’’; and
(3) by striking ‘‘reasonable,’’ and inserting
‘‘reasonable if, in the case of an agency referred to
in paragraph (1), (2), or (3) of subsection (a), the
agency determines that a partial adjustment or the
making of partial payments over an extended period
is necessary to avoid causing the creditor to become
undercapitalized (as determined in accordance with
regulations prescribed by such agency under section
38 of the Federal Deposit Insurance Act);’’.
Subtitle D—Equal Credit
Opportunity Act Amendments
SEC. 351. SHORT TITLE.
This subtitle may be cited as the ‘‘Equal Credit Op-
portunity Act Amendments of 1995’’.
SEC. 352. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that both the
Equal Credit Opportunity Act (15 U.S.C. 1691, et seq.)
106
and the Fair Credit Reporting Act (15 U.S.C. 1681, et
seq.) contain requirements that applicants for consumer
credit be given certain information in the event that ad-
verse action is taken on the application. These require-
ments differ in both scope and content and for that reason
are confusing to both the consumer who receives the infor-
mation and the party required to furnish the information.
(b) PURPOSE.—It is the purpose of this subtitle to
combine and simplify the adverse action notification re-
quirements of the Equal Credit Opportunity Act and the
Fair Credit Reporting Act regarding applications for
consumer credit and to make the information that is re-
quired to be furnished more understandable.
SEC. 353. EQUAL CREDIT OPPORTUNITY ACT AMEND-
MENTS.
(a) 
NOTICE
OF
ADVERSE
ACTION.—Section
701(d)(2)(B) of the Equal Credit Opportunity Act (15
U.S.C. 1691(d)(2)(B)) is amended to read as follows:
‘‘(B) giving written notification of adverse
action which discloses—
‘‘(i) the applicant’s right to a state-
ment of reasons within 30 days after re-
ceipt by the creditor of a request made
within 60 days after such notification;
107
‘‘(ii) if credit is denied or the charge
for such credit is increased either wholly or
partly because of information contained in
a consumer report from a consumer re-
porting agency—
‘‘(I) that fact and the name, ad-
dress, and telephone number of the
consumer reporting agency making
the report;
‘‘(II) the consumer’s right to ob-
tain, under section 612, a free copy of
a consumer report on the consumer,
from the consumer reporting agency
referred to in subclause (I) within the
30-day period provided under such
section; and
‘‘(III) the consumer’s right to
dispute, under section 611, with a
consumer reporting agency the accu-
racy or completeness of any informa-
tion in a consumer report furnished
by the agency.
‘‘(iii) if credit is denied or the charge
for credit is increased either wholly or
partly because of information obtained