To clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, to improve upon the definitions provided for points and fees in connection with a mortgage transaction, and for other purposes.

Bill: 113-hr-5461
Sponsor: full_name: Rep. Barr, Andy [R-KY-6]
Introduced: 2014-09-15
Policy area: Finance and Financial Sector
Subjects: Accounting and auditing

Administrative law and regulatory procedures

Bank accounts, deposits, capital

Banking and financial institutions regulation

Business records

Commodities markets

Commodity Futures Trading Commission

Consumer Financial Protection Bureau

Corporate finance and management

Credit and credit markets

Financial services and investments

Foreign and international corporations

Housing finance and home ownership

Insurance industry and regulation

Securities

User charges and fees
Latest action: action_date: 2014-09-17
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2014-09-15
action_desc: Introduced in House
text: <p>Insurance Capital Standards Clarification Act of 2014 - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act concerning establishment of minimum leverage and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors of the Federal Reserve System. </p> <p>States that federal banking agencies shall not be required to subject any person to such minimum capital requirements, to the extent that such person either: (1) acts in its capacity as a regulated insurance entity regulated by a state insurance regulator, or (2) is a regulated foreign subsidiary engaged in the business of insurance. </p> <p>Exempts from any requirement to prepare holding company financial statements in accordance with Generally Accepted Accounting Principles any Board-supervised depository institution holding company or nonbank financial company that is also a person regulated by a state insurance regulator or a regulated foreign subsidiary (or a regulated foreign affiliate) that files its holding company financial statements using only Statutory Accounting Principles in accordance with state law. </p> <p>Restoring Proven Financing for American Employers Act - Amends the Bank Holding Company Act of 1956 with respect to certain prohibitions on proprietary trading by banking entities and certain relationships with hedge funds and private equity funds (Volcker Rule). Prohibits the Volcker Rule from being construed to require divestiture of any debt securities of collateralized loan obligations issued before January 31, 2014. </p> <p>Declares that a banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it acquires or retains a debt security in it if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation. Defines &quot;collateralized loan obligation&quot; as any issuing entity of an asset-backed security comprised primarily of commercial loans. </p> <p> Mortgage Choice Act of 2014 - Amends the Truth in Lending Act regarding requirements for disclosure to a consumer of points and fees information about a consumer credit transaction, secured by the consumer's principal dwelling, but which is neither a residential mortgage transaction, a reverse mortgage transaction, nor a transaction under an open end credit plan, when the total points and fees the consumer must pay at or before closing will exceed 8% of the total loan amount or $400, whichever is greater. (Such consumer credit transactions might include an equity credit line to which consumer purchases or leases may be charged.) </p> <p>Excludes from the computation of such points and fees any escrow for future payment of insurance. </p> <p>Modifies the criteria for exclusion from the computation of points and fees of certain reasonable charges elsewhere exempted from the computation of the finance charge in extensions of credit secured by an interest in real property. Excludes from points and fees any such reasonable charges even though a creditor receives compensation, but only in so far as the creditor or its affiliate retains the compensation as a result of their participation in an affiliated business arrangement. </p> <p>(An &quot;affiliated business arrangement&quot; is one in which: (1) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1% in a provider of settlement services; and (2) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the provider's selection.)</p> <p>Revises the additional requirement that such a reasonable charge be paid to a third party unaffiliated with the creditor. Requires the charge to be either: (1) a bona fide third party charge not retained by the mortgage originator, creditor, or an affiliate; or (2) a fee or premium for title examination, title insurance, or similar purposes. </p> <p>Modifies the conditions under which federal agencies may exempt refinancings under a streamlined refinancing from an income verification requirement that the consumer has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments. Repeals the exception for bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate from the requirement that total points and fees not exceed 3% of the total new loan amount. (Thus subjects such charges to the same 3% ceiling.) </p> <p> Business Risk Mitigation and Price Stabilization Act of 2013 - Amends the Commodity Exchange Act (CEA) to exempt, from the rules of prudential regulators for swap dealers and major swap participants with respect to initial and variation margin requirements for swaps not cleared by a registered derivatives clearing organization, those swaps in which one of the counterparties: (1) is eligible for an exception from clearing requirements because it is not a financial entity, uses swaps to hedge or mitigate commercial risk, and notifies the Commodity Futures Trading Commission (CFTC) how it meets financial obligations associated with entering into non-cleared swaps; or (2) satisfies specified criteria governing treatment of affiliates in connection with clearing requirements.</p> <p> Amends the Securities Exchange Act of 1934, regarding registration and regulation of security-based swap dealers and major security-based swap participants, to exempt from initial and variation margin requirements for swaps not cleared by a registered derivatives clearing organization a security-based swap in which one of the counterparties: (1) qualifies for a specified exception from clearing requirements, or (2) satisfies certain criteria governing the treatment of affiliates. </p>

action_date: 2014-09-16
action_desc: Passed House without amendment
text: <p><b>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</b></p> <p><b>Title I: Insurance Capital Standards</b> - Insurance Capital Standards Clarification Act of 2014 - (Sec. 102) Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) concerning establishment of minimum leverage and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors of the Federal Reserve System.</p> <p>States that federal banking agencies shall not be required to subject any person to such minimum capital requirements, to the extent that such person either: (1) acts in its capacity as a regulated insurance entity regulated by a state insurance regulator, or (2) is a regulated foreign subsidiary engaged in the business of insurance (including a regulated foreign affiliate of such subsidiary).</p> <p>States that a Board-supervised depository institution holding company or nonbank financial company engaged in the insurance business and regulated by either a state insurance regulator or the National Association of Insurance Commissioners, and which files its holding company financial statements using only Statutory Accounting Principles pursuant to state law, shall not be required by the Board, under this Act or the Home Owners' Loan Act (HOLA), to prepare such financial statements in accordance with Generally Accepted Accounting Principles.</p> <p>Declares that nothing in this Act shall: (1) limit Board authority to conduct any regulatory or supervisory activity of either a depository institution holding company or a non-bank financial company under Board jurisdiction, including the collecting or reporting of any information on an entity or group-wide basis; or (2) excuse the Board from its obligations to comply with Dodd-Frank requirements regarding examination of nonbank financial companies and HOLA requirements regarding examination of savings and loan holding companies. </p> <p><b>Title II: Collateralized Loan Obligations</b> - Restoring Proven Financing for American Employers Act - (Sec. 202) Amends the Bank Holding Company Act of 1956 with respect to certain prohibitions on proprietary trading by banking entities and certain relationships with hedge funds and private equity funds (Volcker Rule).</p> <p>Prescribes rules of construction governing a collateralized loan obligation to prohibit the Volcker Rule from being construed to require divestiture, before July 21, 2017, of any debt securities of collateralized loan obligations issued before January 31, 2014.</p> <p>Declares that a banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it either acquires, has acquired, or retains a debt security in such obligation if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation.</p> <p>Defines &quot;collateralized loan obligation&quot; as any issuing entity of an asset-backed security comprised primarily of commercial loans.</p> <p> Deems an investment manager or adviser to be removed &quot;for cause&quot; if the removal is a result of: </p> <ul> <li>a breach of a material term of the applicable management or advisory agreement or the agreement governing the collateralized loan obligation; </li> <li>the investment manager's or investment adviser's inability to continue to perform its obligations under any such agreement; </li> <li>any other action or inaction by the investment manager or investment adviser that has or could reasonably be expected to have a materially adverse effect on the collateralized loan obligation, if the investment manager or investment adviser fails to cure or take reasonable steps to cure such effect within a reasonable time; or </li> <li>an event or circumstance which threatens, or could reasonably be expected to threaten, the interests of holders of the debt securities. </li> </ul> <p><b>Title III: Definition Of Points And Fees In Mortgage Transactions</b> - Mortgage Choice Act of 2014 - (Sec. 302) Amends the Truth in Lending Act with respect to requirements for disclosure to a consumer of points and fees information about a consumer credit transaction, secured by the consumer's principal dwelling, but which is not a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan, when the total points and fees the consumer must pay at or before closing will exceed 8% of the total loan amount or $400, whichever is greater. (Such consumer credit transactions might include an equity credit line to which consumer purchases or leases may be charged.) </p> <p>Excludes from the computation of such points and fees any escrow for future payment of insurance. </p> <p>Modifies the criteria for exclusion from the computation of points and fees of certain reasonable charges elsewhere exempted from the computation of the finance charge in extensions of credit secured by an interest in real property. Excludes from points and fees any such reasonable charges even though a creditor receives compensation, but only in so far as the creditor or its affiliate retains the compensation as a result of their participation in an affiliated business arrangement. </p> <p>(An &quot;affiliated business arrangement&quot; is one in which: (1) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1% in a provider of settlement services; and (2) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the provider's selection.)</p> <p>Revises the additional requirement that such a reasonable charge be paid to a third party unaffiliated with the creditor. Requires the charge to be either: (1) a bona fide third party charge not retained by the mortgage originator, creditor, or an affiliate; or (2) a fee or premium for title examination, title insurance, or similar purposes. </p> <p>Modifies the conditions under which federal departments and agencies may exempt refinancings under a streamlined refinancing from an income verification requirement that, at the time a refinancing is consummated, the consumer has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments. </p> <p>Repeals the exception for bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate from the requirement that total points and fees not exceed 3% of the total new loan amount. (Thus subjects such charges to the same 3% ceiling.)</p> <p>(Sec. 303) Directs the Consumer Financial Protection Bureau (CFPB) to issue, within 90 days after enactment of this Act, final regulations to it carry out.</p> <p><b>Title IV: Business Risk Mitigation And Price Stabilization</b> - Business Risk Mitigation and Price Stabilization Act of 2014 - (Sec. 402) Amends the Commodity Exchange Act (CEA) to exempt, from the rules of prudential regulators for swap dealers and major swap participants with respect to initial and variation margin requirements for swaps not cleared by a registered derivatives clearing organization, those swaps in which one of the counterparties:</p> <ul> <li>is eligible for an exception from clearing requirements because it is not a financial entity, uses swaps to hedge or mitigate commercial risk, and notifies the Commodity Futures Trading Commission (CFTC) how it meets financial obligations associated with entering into non-cleared swaps;</li> <li>is eligible for a public interest exemption from swap clearing requirements for certain cooperative entities; or</li> <li>satisfies specified criteria governing treatment of affiliates in connection with clearing requirements. </li> </ul> <p>Amends the Securities Exchange Act of 1934 (SEA 1934) regarding registration and regulation of security-based swap dealers and major security-based swap participants, to exempt from initial and variation margin requirements for swaps not cleared by a registered derivatives clearing organization a security-based swap in which one of the counterparties either: (1) qualifies for a specified exception from clearing requirements, or (2) satisfies certain criteria governing the treatment of affiliates.</p>

tv_txt: I 113th CONGRESS 2d Session H. R. 5461 IN THE HOUSE OF REPRESENTATIVES September 15, 2014 Mr. Barr (for himself, Mr. Gary G. Miller of California , Mr. Huizenga of Michigan , and Mr. David Scott of Georgia ) introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committee on Agriculture , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, to improve upon the definitions provided for points and fees in connection with a mortgage transaction, and for other purposes.

1. Table of contents The table of contents for this Act is as follows: Sec. 1. Table of contents. Title I—Insurance Capital Standards Sec. 101. Short title. Sec. 102. Clarification of application of leverage and risk-based capital requirements. Title II—Collateralized loan obligations Sec. 201. Short title. Sec. 202. Rules of construction relating to collateralized loan obligations. Title III—Definition of Points and Fees in Mortgage Transactions Sec. 301. Short title. Sec. 302. Definition of points and fees. Sec. 303. Rulemaking. Title IV—Business Risk Mitigation and Price Stabilization Sec. 401. Short title. Sec. 402. Margin requirements. Sec. 403. Implementation. I Insurance Capital Standards 101. Short title This title may be cited as the Insurance Capital Standards Clarification Act of 2014 . 102. Clarification of application of leverage and risk-based capital requirements Section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5371 ) is amended— (1) in subsection (a), by adding at the end the following: (4) Business of insurance The term business of insurance has the same meaning as in section 1002(3). (5) Person regulated by a state insurance regulator The term person regulated by a State insurance regulator has the same meaning as in section 1002(22). (6) Regulated foreign subsidiary and regulated foreign affiliate The terms regulated foreign subsidiary and regulated foreign affiliate mean a person engaged in the business of insurance in a foreign country that is regulated by a foreign insurance regulatory authority that is a member of the International Association of Insurance Supervisors or other comparable foreign insurance regulatory authority as determined by the Board of Governors following consultation with the State insurance regulators, including the lead State insurance commissioner (or similar State official) of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners, where the person, or its principal United States insurance affiliate, has its principal place of business or is domiciled, but only to the extent that— (A) such person acts in its capacity as a regulated insurance entity; and (B) the Board of Governors does not determine that the capital requirements in a specific foreign jurisdiction are inadequate. (7) Capacity as a regulated insurance entity The term capacity as a regulated insurance entity — (A) includes any action or activity undertaken by a person regulated by a State insurance regulator or a regulated foreign subsidiary or regulated foreign affiliate of such person, as those actions relate to the provision of insurance, or other activities necessary to engage in the business of insurance; and (B) does not include any action or activity, including any financial activity, that is not regulated by a State insurance regulator or a foreign agency or authority and subject to State insurance capital requirements or, in the case of a regulated foreign subsidiary or regulated foreign affiliate, capital requirements imposed by a foreign insurance regulatory authority. ; and (2) by adding at the end the following new subsection: (c) Clarification (1) In general In establishing the minimum leverage capital requirements and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors as required under paragraphs (1) and (2) of subsection (b), the appropriate Federal banking agencies shall not be required to include, for any purpose of this section (including in any determination of consolidation), a person regulated by a State insurance regulator or a regulated foreign subsidiary or a regulated foreign affiliate of such person engaged in the business of insurance, to the extent that such person acts in its capacity as a regulated insurance entity. (2) Rule of construction on board’s authority This subsection shall not be construed to prohibit, modify, limit, or otherwise supersede any other provision of Federal law that provides the Board of Governors authority to issue regulations and orders relating to capital requirements for depository institution holding companies or nonbank financial companies supervised by the Board of Governors. (3) Rule of construction on accounting principles (A) In general A depository institution holding company or nonbank financial company supervised by the Board of Governors of the Federal Reserve that is also a person regulated by a State insurance regulator that is engaged in the business of insurance that files financial statements with a State insurance regulator or the National Association of Insurance Commissioners utilizing only Statutory Accounting Principles in accordance with State law, shall not be required by the Board under the authority of this section or the authority of the Home Owners' Loan Act to prepare such financial statements in accordance with Generally Accepted Accounting Principles. (B) Preservation of authority Nothing in subparagraph (A) shall limit the authority of the Board under any other applicable provision of law to conduct any regulatory or supervisory activity of a depository institution holding company or non-bank financial company supervised by the Board of Governors, including the collection or reporting of any information on an entity or group-wide basis. Nothing in this paragraph shall excuse the Board from its obligations to comply with section 161(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5361(a) ) and section 10(b)(2) of the Home Owners' Loan Act ( 12 U.S.C. 1467a(b)(2) ), as appropriate. . II Collateralized loan obligations 201. Short title This title may be cited as the Restoring Proven Financing for American Employers Act . 202. Rules of construction relating to collateralized loan obligations Section 13(g) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(g) ) is amended by adding at the end the following new paragraphs: (4) Collateralized loan obligations (A) Inapplicability to certain collateralized loan obligations Nothing in this section shall be construed to require the divestiture, prior to July 21, 2017, of any debt securities of collateralized loan obligations, if such debt securities were issued before January 31, 2014. (B) Ownership interest with respect to collateralized loan obligations A banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it acquires, has acquired, or retains a debt security in such collateralized loan obligation if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation. (C) Definitions For purposes of this paragraph: (i) Collateralized loan obligation The term collateralized loan obligation means any issuing entity of an asset-backed security, as defined in section 3(a)(77) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(77) ), that is comprised primarily of commercial loans. (ii) Removal for cause An investment manager or investment adviser shall be deemed to be removed for cause if the investment manager or investment adviser is removed as a result of— (I) a breach of a material term of the applicable management or advisory agreement or the agreement governing the collateralized loan obligation; (II) the inability of the investment manager or investment adviser to continue to perform its obligations under any such agreement; (III) any other action or inaction by the investment manager or investment adviser that has or could reasonably be expected to have a materially adverse effect on the collateralized loan obligation, if the investment manager or investment adviser fails to cure or take reasonable steps to cure such effect within a reasonable time; or (IV) a comparable event or circumstance that threatens, or could reasonably be expected to threaten, the interests of holders of the debt securities. . III Definition of Points and Fees in Mortgage Transactions 301. Short title This title may be cited as the Mortgage Choice Act of 2014 . 302. Definition of points and fees (a) Amendment to section 103 of TILA Section 103(bb)(4) of the Truth in Lending Act ( 15 U.S.C. 1602(bb)(4) ) is amended— (1) by striking paragraph (1)(B) and inserting paragraph (1)(A) and section 129C ; (2) in subparagraph (C)— (A) by inserting and insurance after taxes ; (B) in clause (ii), by inserting , except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2602(7) ) after compensation ; and (C) by striking clause (iii) and inserting the following: (iii) the charge is— (I) a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or (II) a charge set forth in section 106(e)(1); ; and (3) in subparagraph (D)— (A) by striking accident, ; and (B) by striking or any payments and inserting and any payments . (b) Amendment to section 129C of TILA Section 129C of the Truth in Lending Act ( 15 U.S.C. 1639c ) is amended— (1) in subsection (a)(5)(C), by striking 103 and all that follows through or mortgage originator and inserting 103(bb)(4) ; and (2) in subsection (b)(2)(C)(i), by striking 103 and all that follows through or mortgage originator) and inserting 103(bb)(4) . 303. Rulemaking Not later than the end of the 90-day period beginning on the date of the enactment of this Act, the Bureau of Consumer Financial Protection shall issue final regulations to carry out the amendments made by this Act, and such regulations shall be effective upon issuance. IV Business Risk Mitigation and Price Stabilization 401. Short title This title may be cited as the Business Risk Mitigation and Price Stabilization Act of 2013 . 402. Margin requirements (a) Commodity Exchange Act amendment Section 4s(e) of the Commodity Exchange Act ( 7 U.S.C. 6s(e) ), as added by section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4) Applicability with respect to counterparties The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including the initial and variation margin requirements imposed by rules adopted pursuant to paragraphs (2)(A)(ii) and (2)(B)(ii), shall not apply to a swap in which a counterparty qualifies for an exception under section 2(h)(7)(A), or an exemption issued under section 4(c)(1) from the requirements of section 2(h)(1)(A) for cooperative entities as defined in such exemption, or satisfies the criteria in section 2(h)(7)(D). . (b) Securities Exchange Act amendment Section 15F(e) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o–10(e) ), as added by section 764(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4) Applicability with respect to counterparties The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a security-based swap in which a counterparty qualifies for an exception under section 3C(g)(1) or satisfies the criteria in section 3C(g)(4). . 403. Implementation The amendments made by this title to the Commodity Exchange Act shall be implemented— (1) without regard to— (A) chapter 35 of title 44, United States Code; and (B) the notice and comment provisions of section 553 of title 5, United States Code; (2) through the promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued; and (3) such that paragraph (1) shall apply solely to changes to rules and regulations, or proposed rules and regulations, that are limited to and directly a consequence of such amendments.

tv_txt: IIB 113th CONGRESS 2d Session H. R. 5461 IN THE SENATE OF THE UNITED STATES September 17 (legislative day, September 16), 2014 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, to improve upon the definitions provided for points and fees in connection with a mortgage transaction, and for other purposes.

1. Table of contents The table of contents for this Act is as follows: Sec. 1. Table of contents. Title I—Insurance Capital Standards Sec. 101. Short title. Sec. 102. Clarification of application of leverage and risk-based capital requirements. Title II—Collateralized loan obligations Sec. 201. Short title. Sec. 202. Rules of construction relating to collateralized loan obligations. Title III—Definition of Points and Fees in Mortgage Transactions Sec. 301. Short title. Sec. 302. Definition of points and fees. Sec. 303. Rulemaking. Title IV—Business Risk Mitigation and Price Stabilization Sec. 401. Short title. Sec. 402. Margin requirements. Sec. 403. Implementation. I Insurance Capital Standards 101. Short title This title may be cited as the Insurance Capital Standards Clarification Act of 2014 . 102. Clarification of application of leverage and risk-based capital requirements Section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5371 ) is amended— (1) in subsection (a), by adding at the end the following: (4) Business of insurance The term business of insurance has the same meaning as in section 1002(3). (5) Person regulated by a state insurance regulator The term person regulated by a State insurance regulator has the same meaning as in section 1002(22). (6) Regulated foreign subsidiary and regulated foreign affiliate The terms regulated foreign subsidiary and regulated foreign affiliate mean a person engaged in the business of insurance in a foreign country that is regulated by a foreign insurance regulatory authority that is a member of the International Association of Insurance Supervisors or other comparable foreign insurance regulatory authority as determined by the Board of Governors following consultation with the State insurance regulators, including the lead State insurance commissioner (or similar State official) of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners, where the person, or its principal United States insurance affiliate, has its principal place of business or is domiciled, but only to the extent that— (A) such person acts in its capacity as a regulated insurance entity; and (B) the Board of Governors does not determine that the capital requirements in a specific foreign jurisdiction are inadequate. (7) Capacity as a regulated insurance entity The term capacity as a regulated insurance entity — (A) includes any action or activity undertaken by a person regulated by a State insurance regulator or a regulated foreign subsidiary or regulated foreign affiliate of such person, as those actions relate to the provision of insurance, or other activities necessary to engage in the business of insurance; and (B) does not include any action or activity, including any financial activity, that is not regulated by a State insurance regulator or a foreign agency or authority and subject to State insurance capital requirements or, in the case of a regulated foreign subsidiary or regulated foreign affiliate, capital requirements imposed by a foreign insurance regulatory authority. ; and (2) by adding at the end the following new subsection: (c) Clarification (1) In general In establishing the minimum leverage capital requirements and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors as required under paragraphs (1) and (2) of subsection (b), the appropriate Federal banking agencies shall not be required to include, for any purpose of this section (including in any determination of consolidation), a person regulated by a State insurance regulator or a regulated foreign subsidiary or a regulated foreign affiliate of such person engaged in the business of insurance, to the extent that such person acts in its capacity as a regulated insurance entity. (2) Rule of construction on board’s authority This subsection shall not be construed to prohibit, modify, limit, or otherwise supersede any other provision of Federal law that provides the Board of Governors authority to issue regulations and orders relating to capital requirements for depository institution holding companies or nonbank financial companies supervised by the Board of Governors. (3) Rule of construction on accounting principles (A) In general A depository institution holding company or nonbank financial company supervised by the Board of Governors of the Federal Reserve that is also a person regulated by a State insurance regulator that is engaged in the business of insurance that files financial statements with a State insurance regulator or the National Association of Insurance Commissioners utilizing only Statutory Accounting Principles in accordance with State law, shall not be required by the Board under the authority of this section or the authority of the Home Owners' Loan Act to prepare such financial statements in accordance with Generally Accepted Accounting Principles. (B) Preservation of authority Nothing in subparagraph (A) shall limit the authority of the Board under any other applicable provision of law to conduct any regulatory or supervisory activity of a depository institution holding company or non-bank financial company supervised by the Board of Governors, including the collection or reporting of any information on an entity or group-wide basis. Nothing in this paragraph shall excuse the Board from its obligations to comply with section 161(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5361(a) ) and section 10(b)(2) of the Home Owners' Loan Act ( 12 U.S.C. 1467a(b)(2) ), as appropriate. . II Collateralized loan obligations 201. Short title This title may be cited as the Restoring Proven Financing for American Employers Act . 202. Rules of construction relating to collateralized loan obligations Section 13(g) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(g) ) is amended by adding at the end the following new paragraphs: (4) Collateralized loan obligations (A) Inapplicability to certain collateralized loan obligations Nothing in this section shall be construed to require the divestiture, prior to July 21, 2017, of any debt securities of collateralized loan obligations, if such debt securities were issued before January 31, 2014. (B) Ownership interest with respect to collateralized loan obligations A banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it acquires, has acquired, or retains a debt security in such collateralized loan obligation if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation. (C) Definitions For purposes of this paragraph: (i) Collateralized loan obligation The term collateralized loan obligation means any issuing entity of an asset-backed security, as defined in section 3(a)(77) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(77) ), that is comprised primarily of commercial loans. (ii) Removal for cause An investment manager or investment adviser shall be deemed to be removed for cause if the investment manager or investment adviser is removed as a result of— (I) a breach of a material term of the applicable management or advisory agreement or the agreement governing the collateralized loan obligation; (II) the inability of the investment manager or investment adviser to continue to perform its obligations under any such agreement; (III) any other action or inaction by the investment manager or investment adviser that has or could reasonably be expected to have a materially adverse effect on the collateralized loan obligation, if the investment manager or investment adviser fails to cure or take reasonable steps to cure such effect within a reasonable time; or (IV) a comparable event or circumstance that threatens, or could reasonably be expected to threaten, the interests of holders of the debt securities. . III Definition of Points and Fees in Mortgage Transactions 301. Short title This title may be cited as the Mortgage Choice Act of 2014 . 302. Definition of points and fees (a) Amendment to section 103 of TILA Section 103(bb)(4) of the Truth in Lending Act ( 15 U.S.C. 1602(bb)(4) ) is amended— (1) by striking paragraph (1)(B) and inserting paragraph (1)(A) and section 129C ; (2) in subparagraph (C)— (A) by inserting and insurance after taxes ; (B) in clause (ii), by inserting , except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2602(7) ) after compensation ; and (C) by striking clause (iii) and inserting the following: (iii) the charge is— (I) a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or (II) a charge set forth in section 106(e)(1); ; and (3) in subparagraph (D)— (A) by striking accident, ; and (B) by striking or any payments and inserting and any payments . (b) Amendment to section 129 C of TILA Section 129C of the Truth in Lending Act ( 15 U.S.C. 1639c ) is amended— (1) in subsection (a)(5)(C), by striking 103 and all that follows through or mortgage originator) and inserting 103(bb)(4) ; and (2) in subsection (b)(2)(C)(i), by striking 103 and all that follows through or mortgage originator) and inserting 103(bb)(4) . 303. Rulemaking Not later than the end of the 90-day period beginning on the date of the enactment of this Act, the Bureau of Consumer Financial Protection shall issue final regulations to carry out the amendments made by this Act, and such regulations shall be effective upon issuance. IV Business Risk Mitigation and Price Stabilization 401. Short title This title may be cited as the Business Risk Mitigation and Price Stabilization Act of 2014 . 402. Margin requirements (a) Commodity Exchange Act amendment Section 4s(e) of the Commodity Exchange Act ( 7 U.S.C. 6s(e) ), as added by section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4) Applicability with respect to counterparties The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including the initial and variation margin requirements imposed by rules adopted pursuant to paragraphs (2)(A)(ii) and (2)(B)(ii), shall not apply to a swap in which a counterparty qualifies for an exception under section 2(h)(7)(A), or an exemption issued under section 4(c)(1) from the requirements of section 2(h)(1)(A) for cooperative entities as defined in such exemption, or satisfies the criteria in section 2(h)(7)(D). . (b) Securities Exchange Act amendment Section 15F(e) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o–10(e) ), as added by section 764(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4) Applicability with respect to counterparties The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a security-based swap in which a counterparty qualifies for an exception under section 3C(g)(1) or satisfies the criteria in section 3C(g)(4). . 403. Implementation The amendments made by this title to the Commodity Exchange Act shall be implemented— (1) without regard to— (A) chapter 35 of title 44, United States Code; and (B) the notice and comment provisions of section 553 of title 5, United States Code; (2) through the promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued; and (3) such that paragraph (1) shall apply solely to changes to rules and regulations, or proposed rules and regulations, that are limited to and directly a consequence of such amendments.

Passed the House of Representatives September 16, 2014. Karen L. Haas, Clerk

tv_txt: I 113th CONGRESS 2d Session H. R. 5461 IN THE HOUSE OF REPRESENTATIVES AN ACT To clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, to improve upon the definitions provided for points and fees in connection with a mortgage transaction, and for other purposes.

1. Table of contents The table of contents for this Act is as follows: Sec. 1. Table of contents. Title I—Insurance Capital Standards Sec. 101. Short title. Sec. 102. Clarification of application of leverage and risk-based capital requirements. Title II—Collateralized loan obligations Sec. 201. Short title. Sec. 202. Rules of construction relating to collateralized loan obligations. Title III—Definition of Points and Fees in Mortgage Transactions Sec. 301. Short title. Sec. 302. Definition of points and fees. Sec. 303. Rulemaking. Title IV—Business Risk Mitigation and Price Stabilization Sec. 401. Short title. Sec. 402. Margin requirements. Sec. 403. Implementation. I Insurance Capital Standards 101. Short title This title may be cited as the Insurance Capital Standards Clarification Act of 2014 . 102. Clarification of application of leverage and risk-based capital requirements Section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5371 ) is amended— (1) in subsection (a), by adding at the end the following: (4) Business of insurance The term business of insurance has the same meaning as in section 1002(3). (5) Person regulated by a state insurance regulator The term person regulated by a State insurance regulator has the same meaning as in section 1002(22). (6) Regulated foreign subsidiary and regulated foreign affiliate The terms regulated foreign subsidiary and regulated foreign affiliate mean a person engaged in the business of insurance in a foreign country that is regulated by a foreign insurance regulatory authority that is a member of the International Association of Insurance Supervisors or other comparable foreign insurance regulatory authority as determined by the Board of Governors following consultation with the State insurance regulators, including the lead State insurance commissioner (or similar State official) of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners, where the person, or its principal United States insurance affiliate, has its principal place of business or is domiciled, but only to the extent that— (A) such person acts in its capacity as a regulated insurance entity; and (B) the Board of Governors does not determine that the capital requirements in a specific foreign jurisdiction are inadequate. (7) Capacity as a regulated insurance entity The term capacity as a regulated insurance entity — (A) includes any action or activity undertaken by a person regulated by a State insurance regulator or a regulated foreign subsidiary or regulated foreign affiliate of such person, as those actions relate to the provision of insurance, or other activities necessary to engage in the business of insurance; and (B) does not include any action or activity, including any financial activity, that is not regulated by a State insurance regulator or a foreign agency or authority and subject to State insurance capital requirements or, in the case of a regulated foreign subsidiary or regulated foreign affiliate, capital requirements imposed by a foreign insurance regulatory authority. ; and (2) by adding at the end the following new subsection: (c) Clarification (1) In general In establishing the minimum leverage capital requirements and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors as required under paragraphs (1) and (2) of subsection (b), the appropriate Federal banking agencies shall not be required to include, for any purpose of this section (including in any determination of consolidation), a person regulated by a State insurance regulator or a regulated foreign subsidiary or a regulated foreign affiliate of such person engaged in the business of insurance, to the extent that such person acts in its capacity as a regulated insurance entity. (2) Rule of construction on board’s authority This subsection shall not be construed to prohibit, modify, limit, or otherwise supersede any other provision of Federal law that provides the Board of Governors authority to issue regulations and orders relating to capital requirements for depository institution holding companies or nonbank financial companies supervised by the Board of Governors. (3) Rule of construction on accounting principles (A) In general A depository institution holding company or nonbank financial company supervised by the Board of Governors of the Federal Reserve that is also a person regulated by a State insurance regulator that is engaged in the business of insurance that files financial statements with a State insurance regulator or the National Association of Insurance Commissioners utilizing only Statutory Accounting Principles in accordance with State law, shall not be required by the Board under the authority of this section or the authority of the Home Owners' Loan Act to prepare such financial statements in accordance with Generally Accepted Accounting Principles. (B) Preservation of authority Nothing in subparagraph (A) shall limit the authority of the Board under any other applicable provision of law to conduct any regulatory or supervisory activity of a depository institution holding company or non-bank financial company supervised by the Board of Governors, including the collection or reporting of any information on an entity or group-wide basis. Nothing in this paragraph shall excuse the Board from its obligations to comply with section 161(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5361(a) ) and section 10(b)(2) of the Home Owners' Loan Act ( 12 U.S.C. 1467a(b)(2) ), as appropriate. . II Collateralized loan obligations 201. Short title This title may be cited as the Restoring Proven Financing for American Employers Act . 202. Rules of construction relating to collateralized loan obligations Section 13(g) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(g) ) is amended by adding at the end the following new paragraphs: (4) Collateralized loan obligations (A) Inapplicability to certain collateralized loan obligations Nothing in this section shall be construed to require the divestiture, prior to July 21, 2017, of any debt securities of collateralized loan obligations, if such debt securities were issued before January 31, 2014. (B) Ownership interest with respect to collateralized loan obligations A banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it acquires, has acquired, or retains a debt security in such collateralized loan obligation if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation. (C) Definitions For purposes of this paragraph: (i) Collateralized loan obligation The term collateralized loan obligation means any issuing entity of an asset-backed security, as defined in section 3(a)(77) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(77) ), that is comprised primarily of commercial loans. (ii) Removal for cause An investment manager or investment adviser shall be deemed to be removed for cause if the investment manager or investment adviser is removed as a result of— (I) a breach of a material term of the applicable management or advisory agreement or the agreement governing the collateralized loan obligation; (II) the inability of the investment manager or investment adviser to continue to perform its obligations under any such agreement; (III) any other action or inaction by the investment manager or investment adviser that has or could reasonably be expected to have a materially adverse effect on the collateralized loan obligation, if the investment manager or investment adviser fails to cure or take reasonable steps to cure such effect within a reasonable time; or (IV) a comparable event or circumstance that threatens, or could reasonably be expected to threaten, the interests of holders of the debt securities. . III Definition of Points and Fees in Mortgage Transactions 301. Short title This title may be cited as the Mortgage Choice Act of 2014 . 302. Definition of points and fees (a) Amendment to section 103 of TILA Section 103(bb)(4) of the Truth in Lending Act ( 15 U.S.C. 1602(bb)(4) ) is amended— (1) by striking paragraph (1)(B) and inserting paragraph (1)(A) and section 129C ; (2) in subparagraph (C)— (A) by inserting and insurance after taxes ; (B) in clause (ii), by inserting , except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2602(7) ) after compensation ; and (C) by striking clause (iii) and inserting the following: (iii) the charge is— (I) a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or (II) a charge set forth in section 106(e)(1); ; and (3) in subparagraph (D)— (A) by striking accident, ; and (B) by striking or any payments and inserting and any payments . (b) Amendment to section 129 C of TILA Section 129C of the Truth in Lending Act ( 15 U.S.C. 1639c ) is amended— (1) in subsection (a)(5)(C), by striking 103 and all that follows through or mortgage originator) and inserting 103(bb)(4) ; and (2) in subsection (b)(2)(C)(i), by striking 103 and all that follows through or mortgage originator) and inserting 103(bb)(4) . 303. Rulemaking Not later than the end of the 90-day period beginning on the date of the enactment of this Act, the Bureau of Consumer Financial Protection shall issue final regulations to carry out the amendments made by this Act, and such regulations shall be effective upon issuance. IV Business Risk Mitigation and Price Stabilization 401. Short title This title may be cited as the Business Risk Mitigation and Price Stabilization Act of 2014 . 402. Margin requirements (a) Commodity Exchange Act amendment Section 4s(e) of the Commodity Exchange Act ( 7 U.S.C. 6s(e) ), as added by section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4) Applicability with respect to counterparties The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including the initial and variation margin requirements imposed by rules adopted pursuant to paragraphs (2)(A)(ii) and (2)(B)(ii), shall not apply to a swap in which a counterparty qualifies for an exception under section 2(h)(7)(A), or an exemption issued under section 4(c)(1) from the requirements of section 2(h)(1)(A) for cooperative entities as defined in such exemption, or satisfies the criteria in section 2(h)(7)(D). . (b) Securities Exchange Act amendment Section 15F(e) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o–10(e) ), as added by section 764(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4) Applicability with respect to counterparties The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a security-based swap in which a counterparty qualifies for an exception under section 3C(g)(1) or satisfies the criteria in section 3C(g)(4). . 403. Implementation The amendments made by this title to the Commodity Exchange Act shall be implemented— (1) without regard to— (A) chapter 35 of title 44, United States Code; and (B) the notice and comment provisions of section 553 of title 5, United States Code; (2) through the promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued; and (3) such that paragraph (1) shall apply solely to changes to rules and regulations, or proposed rules and regulations, that are limited to and directly a consequence of such amendments.

Passed the House of Representatives September 16, 2014. Karen L. Haas, Clerk.