Title: Portfolio Lending and Mortgage Access Act
Policy area: Finance and Financial Sector

Summary:
Portfolio Lending and Mortgage Access Act
This bill amends the Truth in Lending Act to modify provisions related to residential mortgage loans. In general, a creditor that is a depository institution shall not be subject to suit for violating specified ability-to-pay requirements with respect to a residential mortgage loan if: (1) the creditor has consistently held the loan on its balance sheet, and (2) prepayment penalties associated with the loan comply with specified limitations. Similarly, a mortgage originator shall not be subject to suit for such a violation if: (1) the creditor is a depository institution; and (2) the creditor informs the mortgage originator, which informs the consumer, that the creditor intends to hold the loan on its balance sheet for the life of the loan.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2226 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2226

To amend the Truth in Lending Act to provide a safe harbor from certain 
 requirements related to qualified mortgages for residential mortgage 
 loans held on an originating depository institution's portfolio, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2017

 Mr. Barr (for himself, Mr. Amodei, Mr. Emmer, Mr. Hill, Mr. Hultgren, 
  Mr. Johnson of Ohio, Mr. Lucas, Mr. Luetkemeyer, Mr. Marchant, Mr. 
     Messer, Mr. Pearce, Mr. Pittenger, Mr. Poliquin, Mr. Royce of 
  California, Mr. Rothfus, Mr. Stewart, Mr. Stivers, Mr. Tipton, Mrs. 
Wagner, Mr. Walberg, Mr. Williams, Mr. Davidson, Mr. King of New York, 
 Mr. Loudermilk, Mr. McHenry, Mr. Posey, Mr. Kustoff of Tennessee, Mr. 
   Huizenga, Mr. Hollingsworth, Mr. Duffy, Mr. Trott, and Mr. Blum) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Truth in Lending Act to provide a safe harbor from certain 
 requirements related to qualified mortgages for residential mortgage 
 loans held on an originating depository institution's portfolio, 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 ``Portfolio Lending and Mortgage 
Access Act''.

SEC. 2. 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 
                        origination of the loan, held the loan on the 
                        balance sheet of the creditor; and
                            ``(ii) all prepayment penalties with 
                        respect to the loan comply with the limitations 
                        described under subsection (c)(3).
                    ``(B) Exception for certain transfers.--In the case 
                of a depository institution that transfers a loan 
                originated by that institution 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 originators.--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 depository 
                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 loan on the 
                balance sheet of the creditor for the life of the loan.
            ``(3) Definitions.--For purposes of this subsection:
                    ``(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 meaning given that term under 
                section 3 of the Federal Deposit Insurance Act.''.
    (b) Rule of Construction.--Nothing in the amendment made by this 
Act may be construed as preventing 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 requirements 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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