Short title; table of contents

(a)

Short title

This Act may be cited as the

Community Lending Enhancement and Regulatory Relief Act of 2013

or the

CLEAR Relief Act of 2013

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Changes required to small bank holding company policy statement on assessment of financial and managerial factors.

Sec. 3. Escrow requirements.

Sec. 4. Exception to annual privacy notice requirement under the Gramm-Leach-Bliley Act.

Sec. 5. Accounting principles cost-benefit requirements.

Sec. 6. Community bank exemption from annual management assessment of internal controls requirement of the Sarbanes-Oxley Act of 2002.

Sec. 7. Certain loans included as qualified mortgages.

Sec. 8. Increase in small servicer exemption.

Sec. 9. Appraiser qualification threshold.

Sec. 10. Coordination among financial institutions.

Changes required to small bank holding company policy statement on assessment of financial and managerial factors

(a)

Small bank holding company policy statement on assessment of financial and managerial factors

(1)

In general

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 publish in the Federal Register proposed revisions to the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors (12 C.F.R. part 225—appendix C) that provide that the policy shall apply to a bank holding company which has pro forma consolidated assets of less than $5,000,000,000 and that— (A)is not engaged in any nonbanking activities involving significant leverage; and (B)does not have a significant amount of outstanding debt that is held by the general public. (2)

Adjustment of amount

The Board of Governors of the Federal Reserve System shall annually adjust the dollar amount referred to in paragraph (1) in the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors by an amount equal to the percentage increase, for the most recent year, in total assets held by all insured depository institutions, as determined by the Board. (b)

Increase in debt-to-Equity ratio of small bank holding company

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 publish in the Federal Register proposed revisions to the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors (12 C.F.R. part 225—appendix C) such that the debt-to-equity ratio allowable for a small bank holding company in order to remain eligible to pay a corporate dividend and to remain eligible for expedited processing procedures under Regulation Y of the Board of Governors of the Federal Reserve System would increase from 1:1 to 3:1.

Escrow requirements

(a)

In general

Section 129D(c) of the Truth in Lending Act, 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 moving such subparagraphs 2 ems to the right; (2)striking The Board and inserting the following:

(1)

In general

The Board

; and

(3)by adding at the end the following new paragraph:

(2)

Treatment of loans held by smaller creditors

The Board shall, by regulation, exempt from the requirements of subsection (a) any loan secured by a first lien on a consumer’s principle dwelling, if such loan is held by a creditor with assets of $10,000,000,000 or less.

Exception to annual privacy notice requirement under the Gramm-Leach-Bliley Act

Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803) is amended by adding at the end the following:

(f)

Exception to annual notice requirement

A financial institution that— (1)provides nonpublic personal information only in accordance with the provisions of subsection (b)(2) or (e) of section 502 or regulations prescribed under section 504(b), and (2)has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to consumers in accordance with this subsection,

shall not be required to provide an annual disclosure under this subsection until such time as the financial institution fails to comply with any criteria described in paragraph (1) or (2).

Accounting principles cost-benefit requirements

Section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)) is amended by adding at the end the following:

(3)

Generally accepted accounting principles cost-benefit requirements

The Commission or its designee shall conduct analyses of the costs and benefits (including economic benefits) of any new or amended accounting principle described under paragraph (1), and may not recognize such new or amended accounting principle, unless the Commission or its designee determines that the benefits to investors of such new or amended accounting principle significantly outweigh its costs.

Community bank exemption from annual management assessment of internal controls requirement of the Sarbanes-Oxley Act of 2002

Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is amended by adding the following new subsection:

(d)

Community bank exemption

(1)

In general

This section shall not apply in any year to any insured depository institution which, as of the close of the preceding year, had total assets, as determined on a consolidated basis, of $10,000,000,000 or less. (2)

Adjustment of amount

The Commission shall annually adjust the dollar amount in paragraph (1) by an amount equal to the percentage increase, for the most recent year, in total assets held by all depository institutions, as reported by the Federal Deposit Insurance Corporation.

Certain loans included as qualified mortgages

Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)) is amended— (1)in subparagraph (A)— (A)in clause (viii), by striking and at the end; (B)in clause (ix), by striking the period at the end and inserting ; and; and (C)by adding at the end the following:

(x)that is originated and retained in portfolio for a period of at least 3 years by a creditor having less than $10,000,000,000 in total assets.

; and

(2)in subparagraph (E)— (A)by striking The Board may, by regulation and inserting The Bureau shall, by regulation; and (B)by amending clause (iv) to read as follows:

(iv)that is extended by a creditor that— (I)originates and retains the balloon loans in portfolio for a period of at least 3 years; and (II)together with all affiliates, has total assets of $10,000,000,000 or less.

Increase in small servicer exemption

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 service 20,000 or fewer mortgage loans, in order to reduce regulatory burdens while appropriately balancing consumer protections.

Appraiser qualification threshold

Section 1112(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3341(b)) is amended— (1)by striking may establish a threshold level at or and inserting shall establish a threshold level of $250,000,; and (2)by striking transactions, if and inserting transactions. Each Federal financial institutions regulatory agency and the Resolution Trust Corporation may establish a higher threshold than $250,000, if.

10.

Coordination among financial institutions

Chapter 53 of title 31, United States Code, is amended— (1)by inserting after section 5332 the following new section:

5333.

Coordination among financial institutions

(a)

In general

In the case of an entry received via an automated clearing house, no receiving depository financial institution shall be required to verify that the entry is not a prohibited transaction, if the originating depository financial institution has warranted, pursuant to the automated clearing house rules governing such entry or otherwise, that the originating depository financial institution has complied with the sanctions programs administered by the Office of Foreign Assets Control in connection with such entry. (b)

Definitions

For purposes of this section: (1)

Automated clearing house

The term automated clearing house means a funds transfer system governed by rules which provide for the interbank clearing of electronic entries for participating depository financial institutions. (2)

Depository financial institution

The term depository financial institution means— (A)any insured depository institution, as such term is defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); (B)any depository institution which is eligible to apply to become an insured depository institution under section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815); (C)any insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and (D)any credit union which is eligible to apply to become an insured credit union pursuant to section 201 of the Federal Credit Union Act (12 U.S.C. 1781). (3)

Entry

The term entry means an order to request for the transfer of funds through an automated clearing house. (4)

Originating depository financial institution

The term originating depository financial institution means a depository financial institution that transmits entries via an automated clearing house for transmittal to a receiving depository financial institution. (5)

Prohibited transaction

The term prohibited transaction means a funds transfer originated on behalf of a person to or from whom funds transfers are restricted by a sanctions program administered by the Office of Foreign Assets Control, including persons appearing on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control. (6)

Receiving depository financial institution

The term receiving depository financial institution means a depository financial institution that receives entries via an automated clearing house from an originating depository financial institution for debit or credit to the accounts of its customers.

; and

(2)in the table of contents for such chapter by inserting after the item relating to section 5332 the following new item:

5333. Coordination among financial institutions.