Title: CLEARR Act of 2017
Policy area: Finance and Financial Sector

Summary:
Community Lending Enhancement and Regulatory Relief Act of 2017 or the CLEARR Act of 2017
This bill

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2133 Introduced in House (IH)]

<DOC>






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 Representatives 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 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 annually service 30,000 or fewer mortgage 
loans, in order to reduce regulatory burdens while appropriately 
balancing consumer protections.''.

SEC. 3. ACCESS TO AFFORDABLE MORTGAGES.

    (a) Exemption From Property Appraisal Requirements 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 subsection:
    ``(g) Exemption for Certain Mortgages.--The Bureau, the Comptroller 
of the Currency, the Federal Deposit 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 Requirements for Lower-Cost 
Dwellings.--Section 1110 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--
            (1) by striking ``Each Federal financial institutions 
        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 instrumentality'' and 
        inserting ``each such agency'';
            (3) in the flush left matter following paragraph (3), by 
        striking ``Each such agency or instrumentality'' and inserting 
        the following:
    ``(b) Additional Standards.--Each such agency described under 
subsection (a)''; and
            (4) by adding at the end the following new subsection:
    ``(c) Exemption for Certain Mortgage Loans.--Each such agency 
described under subsection (a) shall exempt, by rule, a real estate 
appraisal or evaluation 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.''.

SEC. 4. CHANGES REQUIRED TO SMALL BANK HOLDING COMPANY POLICY STATEMENT 
              ON ASSESSMENT OF FINANCIAL AND MANAGERIAL FACTORS.

    Before the end of the 6-month period beginning on the date of the 
enactment of this Act, the Board of Governors of the Federal Reserve 
System shall revise the Small Bank Holding Company Policy Statement on 
Assessment 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 SERVICING 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).
    (b) New Regulations.--Before any final regulation is issued by a 
Federal banking agency with respect to capital requirements on mortgage 
servicing assets, the Federal banking agency shall--
            (1) issue a new proposed rule for public comment;
            (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 market 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 community 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 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 Governors of the Federal Reserve 
        System, the Office of the Comptroller of the Currency, the 
        Federal Deposit 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 DECEPTIVE ACTS OR PRACTICES.

    (a) In General.--Section 1031 of the Consumer Financial 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'';
            (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 
                prescribes rules and general statements of policy under 
                that section with respect to unfair or deceptive acts 
                or practices in or affecting commerce.'';
            (4) by striking subsection (d); and
            (5) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
    (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 Reform and Consumer Protection Act is amended, in 
        the item relating to section 1031, by striking ``, deceptive, 
        or abusive'' and inserting ``or deceptive''.
            (3) Omnibus appropriations act, 2009.--Section 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 deceptive''.

SEC. 7. AMENDMENTS TO THE EQUAL CREDIT OPPORTUNITY 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 inserting ``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 
                ``intentionally'' 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 
                ``intentionally'' 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
            (3) in section 806, by inserting ``intentionally'' before 
        ``discriminate''.

SEC. 8. AMENDMENTS TO THE HOME MORTGAGE DISCLOSURE 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 Requirements.--
            ``(1) In general.--The requirements of subsections (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 respect 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 respect 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 institution 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 Opportunity 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 TERMINATION REQUESTS AND 
              ORDERS.

    (a) Termination Requests or Orders Must Be Material.--
            (1) In general.--An appropriate Federal banking agency may 
        not formally or informally request or order a depository 
        institution to terminate a specific customer account or group 
        of customer accounts or to otherwise restrict or discourage a 
        depository institution from entering into or maintaining a 
        banking relationship with a specific customer or group of 
        customers unless--
                    (A) the agency has a material reason for such 
                request or order; and
                    (B) such reason is not based solely on reputation 
                risk.
            (2) Treatment of national security threats.--If an 
        appropriate Federal banking agency believes a specific customer 
        or group of customers is, or is acting as a conduit for, an 
        entity which--
                    (A) poses a threat to national security;
                    (B) is involved in terrorist financing;
                    (C) is an agency of the government of Iran, North 
                Korea, Syria, or any country listed from time to time 
                on the State Sponsors of Terrorism list;
                    (D) is located in, or is subject to the 
                jurisdiction of, any country specified in subparagraph 
                (C); or
                    (E) does business with any entity described in 
                subparagraph (C) or (D), unless the appropriate Federal 
                banking agency determines that the customer or group of 
                customers has used due diligence to avoid doing 
                business with any entity described in subparagraph (C) 
                or (D),
        such belief shall satisfy the requirement under paragraph (1).
    (b) Notice Requirement.--
            (1) In general.--If an appropriate Federal banking agency 
        formally or informally requests or orders a depository 
        institution to terminate a specific customer account or a group 
        of customer accounts, the agency shall--
                    (A) provide such request or order to the 
                institution in writing; and
                    (B) accompany such request or order with a written 
                justification for why such termination is needed, 
                including any specific laws or regulations the agency 
                believes are being violated by the customer or group of 
                customers, if any.
            (2) Justification requirement.--A justification described 
        under paragraph (1)(B) may not be based solely on the 
        reputation risk to the depository institution.
    (c) Customer Notice.--
            (1) Notice not required.--Nothing in this section shall be 
        construed as requiring a depository institution or an 
        appropriate Federal banking agency to inform a customer or 
        customers of the justification for the customer's account 
        termination described under subsection (b).
            (2) Notice prohibited in cases of national security.--If an 
        appropriate Federal banking agency requests or orders a 
        depository institution to terminate a specific customer account 
        or a group of customer accounts based on a belief that the 
        customer or customers pose a threat to national security, 
        neither the depository institution nor the appropriate Federal 
        banking agency may inform the customer or customers of the 
        justification for the customer's account termination.
    (d) Reporting Requirement.--Each appropriate Federal banking agency 
shall issue an annual report to the Congress stating--
            (1) the aggregate number of specific customer accounts that 
        the agency requested or ordered a depository institution to 
        terminate during the previous year; and
            (2) the legal authority on which the agency relied in 
        making such requests and orders and the frequency on which the 
        agency relied on each such authority.
    (e) Definitions.--For purposes of this section:
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' means--
                    (A) the appropriate Federal banking agency, as 
                defined under section 3 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813); and
                    (B) the National Credit Union Administration, in 
                the case of an insured credit union.
            (2) Depository institution.--The term ``depository 
        institution'' means--
                    (A) a depository institution, as defined under 
                section 3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813); and
                    (B) an insured credit union.

SEC. 11. AMENDMENTS TO CIVIL PENALTIES UNDER FIRREA.

    Section 951 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 1833a) is amended--
            (1) in subsection (c)(2), by striking ``affecting a 
        federally insured financial institution'' and inserting 
        ``against a federally insured financial institution or by a 
        federally insured financial institution against an unaffiliated 
        third person''; and
            (2) in subsection (g)--
                    (A) in the header, by striking ``Subpoenas'' and 
                inserting ``Investigations''; and
                    (B) by amending paragraph (1)(C) to read as 
                follows:
                    ``(C) summon witnesses and require the production 
                of any books, papers, correspondence, memoranda, or 
                other records which the Attorney General deems relevant 
                or material to the inquiry, if the Attorney General--
                            ``(i) requests a court order from a court 
                        of competent jurisdiction for such actions and 
                        offers specific and articulable facts showing 
                        that there are reasonable grounds to believe 
                        that the information or testimony sought is 
                        relevant and material for conducting an 
                        investigation under this section; or
                            ``(ii) either personally or through 
                        delegation no lower than the Deputy Attorney 
                        General, issues and signs a subpoena for such 
                        actions and such subpoena is supported by 
                        specific and articulable facts showing that 
                        there are reasonable grounds to believe that 
                        the information or testimony sought is relevant 
                        for conducting an investigation under this 
                        section.''.

SEC. 12. WAIVER OF WAITING PERIOD.

    Not later than 120 days after the date of the enactment of this 
Act, the Bureau of Consumer Financial Protection shall issue 
regulations establishing a process to waive the requirement relating to 
the timing of providing closing disclosures for mortgage loans 
described under section 1026.19(f)(1)(ii) of title 12, Code of Federal 
Regulations.

SEC. 13. LIMIT ON BUREAU SUPERVISION.

    The Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et 
seq.) is amended--
            (1) in section 1025(a), by striking ``$10,000,000,000'' 
        each place such term appears and inserting ``$50,000,000,000''; 
        and
            (2) in section 1026(a), by striking ``$10,000,000,000'' 
        each place such term appears and inserting ``$50,000,000,000''.

SEC. 14. LIMITED EXCEPTION FOR RECIPROCAL DEPOSITS.

    (a) In General.--Section 29 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831f) is amended by adding at the end the following new 
subsection:
    ``(a) Limited Exception for Reciprocal Deposits.--
            ``(1) In general.--Reciprocal deposits of an insured 
        depository institution shall not be considered to be funds 
        obtained, directly or indirectly, by or through a deposit 
        broker if--
                    ``(A) when the institution was most recently 
                examined, its composite condition was found to be 
                outstanding or good; or
                    ``(B) the total amount of such reciprocal deposits 
                does not exceed the lesser of--
                            ``(i) $10,000,000,000; or
                            ``(ii) an amount equal to 20 percent of the 
                        total liabilities of the insured depository 
                        institution.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the authority of the Corporation to 
        require, on a case-by-case basis, that an agent institution 
        that is less than adequately capitalized (as defined in section 
        38(b)(1)(B)) not accept particular types of deposits upon 
        finding that the acceptance of such deposits constitutes an 
        unsafe or unsound practice with respect to such institution.
            ``(3) Definitions.--In this subsection:
                    ``(A) Agent institution.--The term `agent 
                institution' means an insured depository institution 
                that places a covered deposit through a deposit 
                placement network at other insured depository 
                institutions in amounts that are less than or equal to 
                the standard maximum deposit insurance amount, 
                specifying the interest rate to be paid for such 
                amounts, where the agent institution--
                            ``(i) is well capitalized (as defined in 
                        section 38(b)(1)(A)) or has obtained a waiver 
                        pursuant to subsection (c) of this section; or
                            ``(ii) does not receive an amount of 
                        reciprocal deposits that causes the total 
                        amount of reciprocal deposits held by the agent 
                        institution to be greater than the average of 
                        the total amount of reciprocal deposits held by 
                        the agent institution on the last day of each 
                        of the 4 calendar quarters preceding the 
                        calendar quarter in which the agent institution 
                        was determined to be not well capitalized.
                    ``(B) Covered deposit.--The term `covered deposit' 
                means a deposit that--
                            ``(i) is submitted for placement through a 
                        deposit placement network by an agent 
                        institution; and
                            ``(ii) does not consist of funds that were 
                        obtained for the agent institution, directly or 
                        indirectly, by or through a deposit broker 
                        before submission for placement through a 
                        deposit placement network.
                    ``(C) Deposit placement network.--The term `deposit 
                placement network' means a network in which an insured 
                depository institution participates, together with 
                other insured depository institutions, for the 
                processing and receipt of reciprocal deposits.
                    ``(D) Network member bank.--The term `network 
                member bank' means an insured depository institution 
                that is a member of a deposit placement network.
                    ``(E) Reciprocal deposits.--The term `reciprocal 
                deposits' means deposits received by an agent 
                institution through a deposit placement network with 
                the same maturity (if any) and in the same aggregate 
                amount as covered deposits placed by the agent 
                institution in other network member banks.''.
    (b) Applicability.--Nothing in this Act shall be construed to limit 
the application of any provision of the Federal Deposit Insurance Act, 
other than section 29 of such Act (12 U.S.C. 1831f), to an insured 
depository institution (as defined in section 3(c) of such Act (12 
U.S.C. 1813(c))).

SEC. 15. 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.

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 provision of paragraph 
                        (2)(A)(iii), or that addresses modifies any 
                        rule promulgated by the Federal Housing Finance 
                        Agency pursuant 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 
                        Federal 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 prescribe regulations to 
                        carry out the purposes of paragraph 
                        (2)(A)(iii). The Federal Housing Finance Agency 
                        may not prescribe any regulation that addresses 
                        modifies any requirement under clause (i), 
                        (ii), (iv), (v), (vi), (vii), (viii), or (ix) 
                        of paragraph (2)(A), or that addresses modifies 
                        any rule promulgated by the Bureau pursuant to 
                        clause (i) or subparagraph (B)(i)(I).'';
            (2) in subparagraph (B)--
                    (A) by striking ``The Board may'' and inserting
                                    ``(I) Bureau regulations.--The 
                                Bureau may''.
                    (B) in subclause (I), as designated by subparagraph 
                (A), by striking ``compliance with such actions'' and 
                inserting ``, except that the Bureau may not prescribe 
                any regulation that violates the provisions of 
                subparagraph (A). The Bureau may not eliminate any 
                requirement or add any new requirement under clause 
                (i), (ii), (iv), (v), (vi), (vii), (viii), or (ix) of 
                paragraph (2)(A) unless it does so by prescribing a 
                rule enacted pursuant to the procedures set forth in 
                section 553 of title 5, United States Code'';
                    (C) in clause (i), by adding at the end the 
                following new subclause:
                                    ``(II) Federal housing finance 
                                agency regulations.--Not later than 180 
                                days after the date of the enactment of 
                                this subclause, the Federal Housing 
                                Finance Agency shall prescribe 
                                regulations to carry out the 
                                requirements of paragraph (2)(A)(iii). 
                                Notwithstanding the procedures set 
                                forth in section 553 of title 5, United 
                                States Code, the Federal Housing 
                                Finance Agency shall review its 
                                promulgated standards under such 
                                paragraph at least annually, and shall 
                                publish any proposed adjustments to 
                                such standards in the Federal Register. 
                                The Federal Housing Finance Agency may 
                                not eliminate any requirement or add 
                                any new requirement under paragraph 
                                (2)(A)(iii) unless it does so by 
                                prescribing a rule enacted pursuant to 
                                the procedures set forth in section 553 
                                of title 5, United States Code.''; and
                    (D) in clause (ii), by striking ``with the Board'' 
                and inserting ``with the Bureau with respect to the 
                requirements under clauses (i), (ii), (iv), (v), (vi), 
                (vii), (viii), and (ix) of paragraph (2)(A), and in 
                consultation with the Federal Housing Finance Agency 
                with respect to the requirement under paragraph 
                (2)(A)(iii)''.
                                 <all>