[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1491 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1491

  To provide sensible relief to community financial institutions, to 
               protect consumers, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 3, 2015

   Mr. Brown (for himself, Mr. Reed, Mr. Schumer, Mr. Menendez, Mr. 
  Tester, Mr. Warner, Mr. Merkley, Ms. Warren, Ms. Heitkamp, and Mr. 
   Donnelly) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To provide sensible relief to community financial institutions, to 
               protect consumers, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Community Lender 
Regulatory Relief and Consumer Protection Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                   TITLE I--HELPING COMMUNITY LENDERS

Sec. 101. Community bank and credit union portfolio lending.
Sec. 102. Exception to annual written privacy notice requirement under 
                            the Gramm-Leach-Bliley Act.
Sec. 103. Expansion of threshold for 18-month on-site examination 
                            cycle.
Sec. 104. Privately insured credit unions authorized to become members 
                            of a Federal home loan bank.
Sec. 105. Registration threshold for savings and loan holding 
                            companies.
Sec. 106. Transitional license authority.
                     TITLE II--PROTECTING CONSUMERS

Sec. 201. Protecting servicemembers.
Sec. 202. Restoration of the Protecting Tenants at Foreclosure Act of 
                            2009.
Sec. 203. Confidentiality of information shared between State and 
                            Federal financial services regulators.

                   TITLE I--HELPING COMMUNITY LENDERS

SEC. 101. COMMUNITY BANK AND CREDIT UNION PORTFOLIO LENDING.

    Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C. 
1639c(b)(2)) is amended by adding at the end the following:
                    ``(F) Safe harbor.--
                            ``(i) In general.--In this section--
                                    ``(I) the term `qualified 
                                mortgage', as defined in subparagraph 
                                (A), includes any residential mortgage 
                                loan--
                                            ``(aa) that is originated 
                                        by a covered institution and 
                                        continuously retained in 
                                        portfolio by the covered 
                                        institution;
                                            ``(bb) that, except as 
                                        provided in subparagraph (E), 
                                        fully amortizes over a term of 
                                        not longer than 30 years;
                                            ``(cc) that complies with--

                                                    ``(AA) the 
                                                requirements of clauses 
                                                (i), (ii), (iii), (iv), 
                                                (v), and (vii) of 
                                                subparagraph (A); and

                                                    ``(BB) any 
                                                requirements consistent 
                                                with the purposes 
                                                described in paragraph 
                                                (3)(B)(i);

                                            ``(dd) for which the 
                                        covered institution, at or 
                                        before consummation of the 
                                        residential mortgage loan, 
                                        takes into account and verifies 
                                        the monthly debt and income of 
                                        the consumer; and
                                            ``(ee) that is not 
                                        considered a high-cost 
                                        mortgage; and
                                    ``(II) a residential mortgage loan 
                                that meets the requirements of 
                                subclause (I) shall be deemed to meet 
                                the requirements of subsection (a) 
                                until the residential mortgage loan no 
                                longer meets the requirements of 
                                subclause (I).
                            ``(ii) Definition.--In this subparagraph, 
                        the term `covered institution' means--
                                    ``(I) an insured depository 
                                institution or insured credit union 
                                that--
                                            ``(aa) at the time of 
                                        origination of the residential 
                                        mortgage loan, together with 
                                        its affiliates, has less than 
                                        $2,000,000,000 in total 
                                        consolidated assets; and
                                            ``(bb) during the calendar 
                                        year preceding the time of 
                                        origination of the residential 
                                        mortgage loan, originated not 
                                        more than 2,000 residential 
                                        mortgage loans that were--

                                                    ``(AA) sold, 
                                                assigned, or otherwise 
                                                transferred to another 
                                                person; or

                                                    ``(BB) subject to, 
                                                at the time of 
                                                consummation, a 
                                                commitment to be 
                                                acquired by another 
                                                person; or

                                    ``(II) an insured depository 
                                institution or insured credit union 
                                that, at the time of origination of the 
                                residential mortgage loan--
                                            ``(aa) together with its 
                                        affiliates, has more than 
                                        $2,000,000,000 and less than 
                                        $10,000,000,000 in total 
                                        consolidated assets;
                                            ``(bb) is not considered a 
                                        specialty bank, such as a bank 
                                        that offers only a narrow 
                                        product line (including credit 
                                        card or motor vehicle loans) to 
                                        a regional or broader market;
                                            ``(cc) engages in the basic 
                                        activities of lending and 
                                        deposit taking as a significant 
                                        percentage of total assets;
                                            ``(dd) has a limited 
                                        geographic scope; and
                                            ``(ee) meets any other 
                                        criteria as determined by the 
                                        Bureau, including restrictions 
                                        on the volume of residential 
                                        mortgage loans--

                                                    ``(AA) sold, 
                                                assigned, or otherwise 
                                                transferred to another 
                                                person; or

                                                    ``(BB) subject to, 
                                                at the time of 
                                                consummation, a 
                                                commitment to be 
                                                acquired by another 
                                                person.''.

SEC. 102. EXCEPTION TO ANNUAL WRITTEN 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 Written Notice Requirement.--
            ``(1) In general.--A financial institution described in 
        paragraph (2) shall not be required to provide an annual 
        written disclosure under this section until such time as the 
        financial institution fails to comply with subparagraph (A), 
        (B), or (C) of paragraph (2).
            ``(2) Covered institutions.--A financial institution 
        described in this paragraph is a financial institution that--
                    ``(A) 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);
                    ``(B) has not changed its policies and practices 
                with respect 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 section; and
                    ``(C) otherwise provides customers access to such 
                most recent disclosure in electronic or other form 
                permitted by regulations prescribed under section 
                504.''.

SEC. 103. EXPANSION OF THRESHOLD FOR 18-MONTH ON-SITE EXAMINATION 
              CYCLE.

    Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)) is amended--
            (1) in paragraph (4)(A), by striking ``$500,000,000'' and 
        inserting ``$1,000,000,000''; and
            (2) in paragraph (10), by striking ``$500,000,000'' and 
        inserting ``$1,000,000,000''.

SEC. 104. PRIVATELY INSURED CREDIT UNIONS AUTHORIZED TO BECOME MEMBERS 
              OF A FEDERAL HOME LOAN BANK.

    (a) In General.--Section 4(a) of the Federal Home Loan Bank Act (12 
U.S.C. 1424(a)) is amended by adding at the end the following:
            ``(5) Certain privately insured credit unions.--
                    ``(A) In general.--Subject to the requirements of 
                subparagraph (B), a credit union that lacks insurance 
                of its member accounts under Federal law shall be 
                treated as an insured depository institution for 
                purposes of this Act.
                    ``(B) Certification by appropriate state 
                supervisor.--For purposes of this paragraph, a credit 
                union that lacks insurance of its member accounts under 
                Federal law and that has applied for membership in a 
                Federal home loan bank shall be treated as an insured 
                depository institution if the following has occurred:
                            ``(i) Determination by state supervisor of 
                        the credit union.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the appropriate 
                                supervisor of the State in which the 
                                credit union is chartered has 
                                determined that the credit union meets 
                                all the eligibility requirements under 
                                section 201(a) of the Federal Credit 
                                Union Act (12 U.S.C. 1781(a)) to apply 
                                for insurance of its member accounts as 
                                of the date of the application for 
                                membership.
                                    ``(II) Certification deemed 
                                valid.--In the case of any credit union 
                                to which subclause (I) applies, if the 
                                appropriate supervisor of the State in 
                                which such credit union is chartered 
                                fails to make the determination 
                                required pursuant to such subclause by 
                                the end of the 12-month period 
                                beginning on the date on which the 
                                application is submitted to the 
                                supervisor, the credit union shall be 
                                deemed to have met the requirements of 
                                subclause (I).
                            ``(ii) Determination by state supervisor of 
                        the private deposit insurer.--The licensing 
                        entity of the private deposit insurer that is 
                        insuring the member accounts of the credit 
                        union--
                                    ``(I) receives, on an annual basis, 
                                an independent actuarial opinion that 
                                the private insurer has set aside 
                                sufficient reserves for losses; and
                                    ``(II) obtains, as frequently as 
                                appropriate, but not less frequently 
                                than every 36 months, an independent 
                                actuary's study of the capital adequacy 
                                of the private insurer.
                            ``(iii) Submission of financial 
                        information.--The credit union or the 
                        appropriate supervisor of the State in which 
                        such credit union is chartered makes available, 
                        and continues to make available for such time 
                        as the credit union is a member of a Federal 
                        home loan bank, to the Federal Housing Finance 
                        Agency or to the Federal home loan bank all 
                        reports, records, and other information related 
                        to any examinations or inquiries performed by 
                        the supervisor concerning the financial 
                        condition of the credit union, as soon as is 
                        practicable.
                    ``(C) Security interests of federal home loan bank 
                not avoidable.--Notwithstanding any provision of State 
                law authorizing a conservator or liquidating agent of a 
                credit union to repudiate contracts, no such provision 
                shall apply with respect to--
                            ``(i) any extension of credit from any 
                        Federal home loan bank to any credit union that 
                        is a member of any such bank pursuant to this 
                        paragraph; or
                            ``(ii) any security interest in the assets 
                        of such a credit union securing any such 
                        extension of credit.
                    ``(D) Protection for certain federal home loan bank 
                advances.--Notwithstanding any State law to the 
                contrary, if a Bank makes an advance under section 10 
                to a State-chartered credit union that is not federally 
                insured--
                            ``(i) the Bank's interest in any collateral 
                        securing the advance has the same priority and 
                        is afforded the same standing and rights that 
                        the security interest would have had if the 
                        advance had been made to a federally insured 
                        credit union; and
                            ``(ii) the Bank has the same right to 
                        access such collateral that the Bank would have 
                        had if the advance had been made to a federally 
                        insured credit union.''.
    (b) Copies of Audits of Private Insurers of Certain Depository 
Institutions Required To Be Provided to Supervisory Agencies.--Section 
43(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1831t(a)(2)(A)) is amended--
            (1) in clause (i), by striking ``; and'' and inserting a 
        semicolon;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(iii) in the case of depository 
                        institutions described in subsection (e)(2)(A), 
                        the member accounts of which are insured by the 
                        private deposit insurer, which are members of a 
                        Federal home loan bank, to the Federal Housing 
                        Finance Agency, not later than 7 days after the 
                        audit is completed.''.
    (c) GAO Report.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study and submit a report to Congress--
            (1) on the adequacy of insurance reserves held by a private 
        deposit insurer that insures the member accounts of an entity 
        described in section 43(e)(2)(A) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1831t(e)(2)(A)); and
            (2) for an entity described in paragraph (1), the member 
        accounts of which are insured by a private deposit insurer, 
        information on the level of compliance with Federal regulations 
        relating to the disclosure of a lack of Federal deposit 
        insurance.

SEC. 105. REGISTRATION THRESHOLD FOR SAVINGS AND LOAN HOLDING 
              COMPANIES.

    The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is 
amended--
            (1) in section 12(g)--
                    (A) in paragraph (1)(B), by inserting after ``is a 
                bank'' the following: ``, a savings and loan holding 
                company (as such term is defined in section 10 of the 
                Home Owners' Loan Act (12 U.S.C. 1467a(a))),''; and
                    (B) in paragraph (4), by inserting after ``case of 
                a bank'' the following: ``, a savings and loan holding 
                company (as such term is defined in section 10 of the 
                Home Owners' Loan Act (12 U.S.C. 1467a(a))),''; and
            (2) in section 15(d)(1), by striking ``case of bank'' and 
        inserting the following: ``case of a bank, a savings and loan 
        holding company (as such term is defined in section 10 of the 
        Home Owners' Loan Act (12 U.S.C. 1467a(a))),''.

SEC. 106. TRANSITIONAL LICENSE AUTHORITY.

    Section 1504 of the S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5103) is amended--
            (1) in subsection (a), by inserting after ``as the case may 
        be,'' the following: ``and except as provided in subsection 
        (c),''; and
            (2) by adding at the end the following:
    ``(c) Transitional Authority.--
            ``(1) Definition.--In this subsection, the term `covered 
        registered loan originator' means a registered loan originator 
        who--
                    ``(A) submits the information required under 
                section 1505(a); and
                    ``(B) during the 30-day period preceding the date 
                of such submission, met the standard of being qualified 
                under section 129B(b)(1)(A) of the Truth in Lending Act 
                (15 U.S.C. 1639b(b)(1)(A)).
            ``(2) Authority.--Notwithstanding the requirements of 
        subsections (b) through (e) of section 1505, a State may permit 
        a covered registered loan originator to act as a loan 
        originator, under the supervision of a non-depository firm that 
        engages in loan origination in that State, for the 120-day 
        period beginning on the date on which the covered registered 
        loan originator submits the information required under section 
        1505(a).
            ``(3) Limitation.--A covered registered loan originator may 
        not act as a loan originator under paragraph (2) after the date 
        on which the 120-day period described in that paragraph 
        expires.''.

                     TITLE II--PROTECTING CONSUMERS

SEC. 201. PROTECTING SERVICEMEMBERS.

    Section 1002(12) of the Consumer Financial Protection Act of 2010 
(12 U.S.C. 5481(12)) is amended--
            (1) in subparagraph (Q), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (R), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(S) sections 101, 107 (except with respect to 
                bailments), 108 (except with respect to insurance), 201 
                (except with respect to child custody proceedings), 
                207, 301, 302, 303, 305, and 305A of the Servicemembers 
                Civil Relief Act (50 U.S.C. App. 511, 517, 518, 521, 
                527, 531, 532, 533, 535, and 535a).''.

SEC. 202. RESTORATION OF THE PROTECTING TENANTS AT FORECLOSURE ACT OF 
              2009.

    (a) Repeal of Sunset Provision.--Section 704 of the Protecting 
Tenants at Foreclosure Act of 2009 (12 U.S.C. 5201 note; 12 U.S.C. 5220 
note; 42 U.S.C. 1437f note) is repealed.
    (b) Restoration.--Sections 701 through 703 of such Act, the 
provisions of law amended or repealed by such sections, and any 
regulations promulgated pursuant to such sections, as were in effect on 
December 31, 2014, are restored and revived as if the sunset provision 
in section 704 had not taken effect.

SEC. 203. CONFIDENTIALITY OF INFORMATION SHARED BETWEEN STATE AND 
              FEDERAL FINANCIAL SERVICES REGULATORS.

    Section 1512(a) of the S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5111(a)) is amended by inserting ``or financial services'' 
before ``industry''.
                                 <all>