[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1408 Engrossed in House (EH)]

114th CONGRESS
  1st Session
                                H. R. 1408

_______________________________________________________________________

                                 AN ACT


 
 To require certain Federal banking agencies to conduct a study of the 
  appropriate capital requirements for mortgage servicing assets for 
             banking 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 ``Mortgage Servicing Asset Capital 
Requirements Act of 2015''.

SEC. 2. STUDY OF MORTGAGE SERVICING ASSETS.

    (a) Definitions.--In this section:
            (1) Banking institution.--The term ``banking institution'' 
        means an insured depository institution, Federal credit union, 
        State credit union, bank holding company, or savings and loan 
        holding company.
            (2) 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.
            (3) Federal banking agencies.--The term ``Federal banking 
        agencies'' means the Board of Governors of the Federal Reserve 
        System, the Office of the Comptroller of the Currency, the 
        Federal Deposit Insurance Corporation, and the National Credit 
        Union Administration.
            (4) Mortgage servicing assets.--The term ``mortgage 
        servicing assets'' means those assets that result from 
        contracts to service loans secured by real estate, where such 
        loans are owned by third parties.
            (5) NCUA capital requirements.--The term ``NCUA capital 
        requirements'' means the proposed rule of the National Credit 
        Union Administration entitled ``Risk-Based Capital'' (80 Fed. 
        Reg. 4340 (January 27, 2015)).
            (6) Other definitions.--
                    (A) Banking definitions.--The terms ``bank holding 
                company'', ``insured depository institution'', and 
                ``savings and loan holding company'' have the meanings 
                given those terms in section 3 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813).
                    (B) Credit union definitions.--The terms ``Federal 
                credit union'' and ``State credit union'' have the 
                meanings given those terms in section 101 of the 
                Federal Credit Union Act (12 U.S.C. 1752).
    (b) Study of the Appropriate Capital for Mortgage Servicing 
Assets.--
            (1) In general.--The Federal banking agencies shall jointly 
        conduct a study of the appropriate capital requirements for 
        mortgage servicing assets for banking institutions.
            (2) Issues to be studied.--The study required under 
        paragraph (1) shall include, with a specific focus on banking 
        institutions--
                    (A) the risk to banking institutions of holding 
                mortgage servicing assets;
                    (B) the history of the market for mortgage 
                servicing assets, including in particular the market 
                for those assets in the period of the financial crisis;
                    (C) the ability of banking institutions to 
                establish a value for mortgage servicing assets of the 
                institution through periodic sales or other means;
                    (D) regulatory approaches to mortgage servicing 
                assets and capital requirements that may be used to 
                address concerns about the value of and ability to sell 
                mortgage servicing assets;
                    (E) the impact of imposing the Basel III capital 
                requirements and the NCUA capital requirements on 
                banking institutions on the ability of those 
                institutions--
                            (i) to compete in the mortgage servicing 
                        business, including the need for economies of 
                        scale to compete in that business; and
                            (ii) to provide service to consumers to 
                        whom the institutions have made mortgage loans;
                    (F) an analysis of what the mortgage servicing 
                marketplace would look like if the Basel III capital 
                requirements and the NCUA capital requirements on 
                mortgage servicing assets--
                            (i) were fully implemented; and
                            (ii) applied to both banking institutions 
                        and nondepository residential mortgage loan 
                        servicers;
                    (G) the significance of problems with mortgage 
                servicing assets, if any, in banking institution 
                failures and problem banking institutions, including 
                specifically identifying failed banking institutions 
                where mortgage servicing assets contributed to the 
                failure; and
                    (H) an analysis of the relevance of the Basel III 
                capital requirements and the NCUA capital requirements 
                on mortgage servicing assets to the banking systems of 
                other significantly developed countries.
            (3) Report to congress.--Not later than 180 days after the 
        date of enactment of this Act, the Federal banking agencies 
        shall submit to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report containing--
                    (A) the results of the study required under 
                paragraph (1);
                    (B) any analysis on the specific issue of mortgage 
                servicing assets undertaken by the Federal banking 
                agencies before finalizing regulations implementing the 
                Basel III capital requirements and the NCUA capital 
                requirements; and
                    (C) any recommendations for legislative or 
                regulatory actions that would address concerns about 
                the value of and ability to sell and the ability of 
                banking institutions to hold mortgage servicing assets.

            Passed the House of Representatives July 14, 2015.

            Attest:

                                                                 Clerk.
114th CONGRESS

  1st Session

                               H. R. 1408

_______________________________________________________________________

                                 AN ACT

 To require certain Federal banking agencies to conduct a study of the 
  appropriate capital requirements for mortgage servicing assets for 
             banking institutions, and for other purposes.