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

114th CONGRESS
  1st Session
                                H. R. 1408

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2015

    Mr. Perlmutter (for himself and Mr. Luetkemeyer) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To require certain Federal banking agencies to conduct a study of the 
  appropriate capital requirements for mortgage servicing assets for 
       nonsystemic 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. COMMUNITY FINANCIAL INSTITUTION MORTGAGE SERVICING ASSET 
              CAPITAL REQUIREMENTS STUDY.

    (a) Definitions.--For purposes of 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 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.
            (5) NCUA capital requirements.--The term ``NCUA capital 
        requirements'' means the proposed rule of the National Credit 
        Union Administration titled ``Risk-Based Capital'' (80 Fed. 
        Reg. 4340; January 27, 2015).
            (6) Nonsystemic banking institution.--The term 
        ``nonsystemic banking institution'' means any banking 
        institution other than an institution identified by the 
        Financial Stability Board as a ``global systemically important 
        bank''.
            (7) Other definitions.--
                    (A) Banking definitions.--The terms ``bank holding 
                company'', ``insured depository institution'', and 
                ``savings and loan holding company'' have the meanings 
                given such terms, respectively, under 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 such terms, respectively, under 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 nonsystemic 
        banking institutions.
            (2) Issues to be studied.--The study required by this 
        subsection shall include, with a specific focus on nonsystemic 
        banking institutions--
                    (A) the risk to banking institutions of holding 
                mortgage servicing assets;
                    (B) the history of the market for mortgage 
                servicing assets, including particularly the market for 
                such assets in the period of the financial crisis;
                    (C) the ability of banking institutions to 
                establish a value for their mortgage servicing assets 
                through periodic sales or other means;
                    (D) regulatory approaches to mortgage servicing 
                assets in addition to capital requirements that could 
                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 
                nonsystemic banking institutions on their ability to 
                compete in the mortgage servicing business, including 
                the need for economies of scale to compete in that 
                business, and on their ability to provide service to 
                consumers to whom they have made a mortgage loan;
                    (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 significant developed countries.
            (3) Report to congress.--Not later than the end of the 6-
        month period beginning on the date of the enactment of this 
        Act, the Federal banking agencies shall issue a report to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives containing--
                    (A) the results of the study required under 
                paragraph (1); and
                    (B) any analysis on the specific issue of mortgage 
                servicing assets undertaken by the Federal banking 
                agencies prior to finalizing regulations implementing 
                the Basel III capital requirements and the NCUA capital 
                requirements.
    (c) Delay of Rulemaking.--
            (1) Rules on mortgage servicing assets.--Notwithstanding 
        any other provision of law, no regulation to implement the 
        Basel III capital requirements or the NCUA capital requirements 
        with respect to mortgage servicing assets for nonsystemic 
        banking institutions shall take effect before the end of the 3-
        month period beginning on the date the report is issued under 
        subsection (b)(3).
            (2) Final rule requirements.--Before any final rule is 
        issued by a Federal banking agency with respect to capital 
        requirements on mortgage servicing assets for nonsystemic 
        banking institutions, the Federal banking agency shall--
                    (A) if the related proposed rule was issued before 
                the date on which the report is issued under subsection 
                (b)(3), issue a new proposed rule for public comment; 
                and
                    (B) consider regulatory approaches to mortgage 
                servicing assets that could address concerns about the 
                value of and ability to sell mortgage servicing assets.
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