Title: Community Institution Mortgage Relief Act of 2017
Policy area: Finance and Financial Sector

Summary:
Community Institution Mortgage Relief Act of 2017
This bill amends the Truth in Lending Act to create a safe harbor from requirements for an escrow or impound account for the payment of taxes and hazard insurance in the case of mortgage loans made by a creditor with consolidated assets of $25 billion or less that holds the loan on its balance sheet for three years after its origination.
A creditor shall be deemed to have complied with the three-year balance sheet requirement if it transfers a loan by reason of its bankruptcy or failure, the purchase of it by another, or by a supervisory act or recommendation from a state or federal regulator.
The Consumer Financial Protection Bureau is required to exempt mortgage servicers that service 30,000 or fewer mortgage loans from requirements of the Real Estate Settlement Procedures Act of 1974 pertaining to the servicing of mortgage loans and administration of escrow accounts.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3971 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3971

   To amend the Truth in Lending Act and the Real Estate Settlement 
    Procedures Act of 1974 to modify the requirements for community 
   financial institutions with respect to certain rules relating to 
                mortgage loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 5, 2017

Ms. Tenney (for herself, Mr. Sherman, and Mr. Williams) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
   To amend the Truth in Lending Act and the Real Estate Settlement 
    Procedures Act of 1974 to modify the requirements for community 
   financial institutions with respect to certain rules relating to 
                mortgage loans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Institution Mortgage 
Relief Act of 2017''.

SEC. 2. COMMUNITY FINANCIAL INSTITUTION MORTGAGE RELIEF.

    (a) Exemption From Escrow Requirements for Loans Held by Smaller 
Creditors.--Section 129D of the Truth in Lending Act (15 U.S.C. 1639d) 
is amended--
            (1) by adding at the end the following:
    ``(k) Safe Harbor for Loans Held by Smaller Creditors.--
            ``(1) In general.--A creditor shall not be in violation of 
        subsection (a) with respect to a loan if--
                    ``(A) the creditor has consolidated assets of 
                $25,000,000,000 or less; and
                    ``(B) the creditor holds the loan on the balance 
                sheet of the creditor for the 3-year period beginning 
                on the date of the origination of the loan.
            ``(2) Exception for certain transfers.--In the case of a 
        creditor that transfers a loan to another person by reason of 
        the bankruptcy or failure of the creditor, the purchase of the 
        creditor, or a supervisory act or recommendation from a State 
        or Federal regulator, the creditor shall be deemed to have 
        complied with the requirement under paragraph (1)(B).''; and
            (2) by striking the term ``Board'' each place such term 
        appears and inserting ``Bureau''.
    (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 a servicer that annually services 30,000 or fewer mortgage 
loans, in order to reduce regulatory burdens while appropriately 
balancing consumer protections.''.
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