[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1113 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1113

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 2015

Mr. Barr (for himself, Mr. Weber of Texas, Mr. Neugebauer, Mr. Fincher, 
      Mr. Dold, Mr. Tipton, Mr. Hill, Mr. Lucas, Mr. Rothfus, Mr. 
   Luetkemeyer, Mr. Stivers, Mr. King of New York, Mr. Hultgren, Mr. 
    Duffy, Mr. Stutzman, Mr. Guinta, and Mr. Ribble) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Portfolio Lending and Mortgage 
Access Act''.

SEC. 2. SAFE HARBOR FOR CERTAIN LOANS HELD ON PORTFOLIO.

    (a) In General.--Section 129C of the Truth in Lending Act (15 
U.S.C. 1639c) is amended by adding at the end the following:
    ``(j) Safe Harbor for Certain Loans Held on Portfolio.--
            ``(1) Safe harbor for creditors that are insured depository 
        institutions.--
                    ``(A) In general.--A creditor that is an insured 
                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 an insured depository institution that transfers a 
                loan originated by that institution to another insured 
                depository institution by reason of the bankruptcy or 
                failure of the originating insured depository 
                institution or the purchase of the originating insured 
                depository institution, the insured 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 an insured 
                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 and the 
                Bureau.
                    ``(B) Other terms.--The terms `Federal banking 
                agencies' and `insured depository institution' have the 
                meaning given those terms, respectively, under section 
                3 of the Federal Deposit Insurance Act.''.
    (b) Rule of Construction.--Nothing in the amendment made by this 
Act may be construed as preventing a balloon loan from qualifying for 
the safe harbor provided under section 129C(j) of the Truth in Lending 
Act if the balloon loan otherwise meets all of the requirements under 
such subsection (j), regardless of whether the balloon loan meets the 
requirements described under clauses (i) through (iv) of section 
129C(b)(2)(E) of such Act.
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