[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2155 Engrossed in Senate (ES)]
<DOC>
115th CONGRESS
2d Session
S. 2155
_______________________________________________________________________
AN ACT
To promote economic growth, provide tailored regulatory relief, and
enhance consumer protections, 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 ``Economic Growth,
Regulatory Relief, and Consumer Protection Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT
Sec. 101. Minimum standards for residential mortgage loans.
Sec. 102. Safeguarding access to habitat for humanity homes.
Sec. 103. Exemption from appraisals of real property located in rural
areas.
Sec. 104. Home Mortgage Disclosure Act adjustment and study.
Sec. 105. Credit union residential loans.
Sec. 106. Eliminating barriers to jobs for loan originators.
Sec. 107. Protecting access to manufactured homes.
Sec. 108. Escrow requirements relating to certain consumer credit
transactions.
Sec. 109. No wait for lower mortgage rates.
TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT
Sec. 201. Capital simplification for qualifying community banks.
Sec. 202. Limited exception for reciprocal deposits.
Sec. 203. Community bank relief.
Sec. 204. Removing naming restrictions.
Sec. 205. Short form call reports.
Sec. 206. Option for Federal savings associations to operate as covered
savings associations.
Sec. 207. Small bank holding company policy statement.
Sec. 208. Application of the Expedited Funds Availability Act.
Sec. 209. Small public housing agencies.
Sec. 210. Examination cycle.
Sec. 211. International insurance capital standards accountability.
Sec. 212. Budget transparency for the NCUA.
Sec. 213. Making online banking initiation legal and easy.
Sec. 214. Promoting construction and development on Main Street.
Sec. 215. Reducing identity fraud.
Sec. 216. Treasury report on risks of cyber threats.
Sec. 217. Discretionary surplus funds.
TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS
Sec. 301. Protecting consumers' credit.
Sec. 302. Protecting veterans' credit.
Sec. 303. Immunity from suit for disclosure of financial exploitation
of senior citizens.
Sec. 304. Restoration of the Protecting Tenants at Foreclosure Act of
2009.
Sec. 305. Remediating lead and asbestos hazards.
Sec. 306. Family self-sufficiency program.
Sec. 307. Property Assessed Clean Energy financing.
Sec. 308. GAO report on consumer reporting agencies.
Sec. 309. Protecting veterans from predatory lending.
Sec. 310. Credit score competition.
Sec. 311. GAO report on Puerto Rico foreclosures.
Sec. 312. Report on children's lead-based paint hazard prevention and
abatement.
Sec. 313. Foreclosure relief and extension for servicemembers.
TITLE IV--TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES
Sec. 401. Enhanced supervision and prudential standards for certain
bank holding companies.
Sec. 402. Supplementary leverage ratio for custodial banks.
Sec. 403. Treatment of certain municipal obligations.
TITLE V--ENCOURAGING CAPITAL FORMATION
Sec. 501. National securities exchange regulatory parity.
Sec. 502. SEC study on algorithmic trading.
Sec. 503. Annual review of government-business forum on capital
formation.
Sec. 504. Supporting America's innovators.
Sec. 505. Securities and Exchange Commission overpayment credit.
Sec. 506. U.S. territories investor protection.
Sec. 507. Encouraging employee ownership.
Sec. 508. Improving access to capital.
Sec. 509. Parity for closed-end companies regarding offering and proxy
rules.
TITLE VI--PROTECTIONS FOR STUDENT BORROWERS
Sec. 601. Protections in the event of death or bankruptcy.
Sec. 602. Rehabilitation of private education loans.
Sec. 603. Best practices for higher education financial literacy.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate federal banking agency; company; depository
institution; depository institution holding company.--The terms
``appropriate Federal banking agency'', ``company'',
``depository institution'', and ``depository institution
holding company'' have the meanings given those terms in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(2) Bank holding company.--The term ``bank holding
company'' has the meaning given the term in section 2 of the
Bank Holding Company Act of 1956 (12 U.S.C. 1841).
TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT
SEC. 101. MINIMUM STANDARDS FOR RESIDENTIAL MORTGAGE LOANS.
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) Definitions.--In this subparagraph--
``(I) the term `covered
institution' means an insured
depository institution or an insured
credit union that, together with its
affiliates, has less than
$10,000,000,000 in total consolidated
assets;
``(II) the term `insured credit
union' has the meaning given the term
in section 101 of the Federal Credit
Union Act (12 U.S.C. 1752);
``(III) the term `insured
depository institution' has the meaning
given the term in section 3 of the
Federal Deposit Insurance Act (12
U.S.C. 1813);
``(IV) the term `interest-only'
means that, under the terms of the
legal obligation, one or more of the
periodic payments may be applied solely
to accrued interest and not to loan
principal; and
``(V) the term `negative
amortization' means payment of periodic
payments that will result in an
increase in the principal balance under
the terms of the legal obligation.
``(ii) Safe harbor.--In this section--
``(I) the term `qualified mortgage'
includes any residential mortgage
loan--
``(aa) that is originated
and retained in portfolio by a
covered institution;
``(bb) that is in
compliance with the limitations
with respect to prepayment
penalties described in
subsections (c)(1) and (c)(3);
``(cc) that is in
compliance with the
requirements of clause (vii) of
subparagraph (A);
``(dd) that does not have
negative amortization or
interest-only features; and
``(ee) for which the
covered institution considers
and documents the debt, income,
and financial resources of the
consumer in accordance with
clause (iv); and
``(II) a residential mortgage loan
described in subclause (I) shall be
deemed to meet the requirements of
subsection (a).
``(iii) Exception for certain transfers.--A
residential mortgage loan described in clause
(ii)(I) shall not qualify for the safe harbor
under clause (ii) if the legal title to the
residential mortgage loan is sold, assigned, or
otherwise transferred to another person unless
the residential mortgage loan is sold,
assigned, or otherwise transferred--
``(I) to another person by reason
of the bankruptcy or failure of a
covered institution;
``(II) to a covered institution so
long as the loan is retained in
portfolio by the covered institution to
which the loan is sold, assigned, or
otherwise transferred;
``(III) pursuant to a merger of a
covered institution with another person
or the acquisition of a covered
institution by another person or of
another person by a covered
institution, so long as the loan is
retained in portfolio by the person to
whom the loan is sold, assigned, or
otherwise transferred; or
``(IV) to a wholly owned subsidiary
of a covered institution, provided
that, after the sale, assignment, or
transfer, the residential mortgage loan
is considered to be an asset of the
covered institution for regulatory
accounting purposes.
``(iv) Consideration and documentation
requirements.--The consideration and
documentation requirements described in clause
(ii)(I)(ee) shall--
``(I) not be construed to require
compliance with, or documentation in
accordance with, appendix Q to part
1026 of title 12, Code of Federal
Regulations, or any successor
regulation; and
``(II) be construed to permit
multiple methods of documentation.''.
SEC. 102. SAFEGUARDING ACCESS TO HABITAT FOR HUMANITY HOMES.
Section 129E(i)(2) of the Truth in Lending Act (15 U.S.C.
1639e(i)(2)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and adjusting the margins
accordingly;
(2) in the matter preceding clause (i), as so redesignated,
by striking ``For purposes of'' and inserting the following:
``(A) In general.--For purposes of''; and
(3) by adding at the end the following:
``(B) Rule of construction related to appraisal
donations.--If a fee appraiser voluntarily donates
appraisal services to an organization eligible to
receive tax-deductible charitable contributions, such
voluntary donation shall be considered customary and
reasonable for the purposes of paragraph (1).''.
SEC. 103. EXEMPTION FROM APPRAISALS OF REAL PROPERTY LOCATED IN RURAL
AREAS.
Title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is amended by adding
at the end the following:
``SEC. 1127. EXEMPTION FROM APPRAISALS OF REAL ESTATE LOCATED IN RURAL
AREAS.
``(a) Definitions.--In this section--
``(1) the term `mortgage originator' has the meaning given
the term in section 103 of the Truth in Lending Act (15 U.S.C.
1602); and
``(2) the term `transaction value' means the amount of a
loan or extension of credit, including a loan or extension of
credit that is part of a pool of loans or extensions of credit.
``(b) Appraisal Not Required.--Except as provided in subsection
(d), notwithstanding any other provision of law, an appraisal in
connection with a federally related transaction involving real property
or an interest in real property is not required if--
``(1) the real property or interest in real property is
located in a rural area, as described in section
1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations;
``(2) not later than 3 days after the date on which the
Closing Disclosure Form, made in accordance with the final rule
of the Bureau of Consumer Financial Protection entitled
`Integrated Mortgage Disclosures Under the Real Estate
Settlement Procedures Act (Regulation X) and the Truth in
Lending Act (Regulation Z)' (78 Fed. Reg. 79730 (December 31,
2013)), relating to the federally related transaction is given
to the consumer, the mortgage originator or its agent, directly
or indirectly--
``(A) has contacted not fewer than 3 State
certified appraisers or State licensed appraisers, as
applicable, on the mortgage originator's approved
appraiser list in the market area in accordance with
part 226 of title 12, Code of Federal Regulations; and
``(B) has documented that no State certified
appraiser or State licensed appraiser, as applicable,
was available within 5 business days beyond customary
and reasonable fee and timeliness standards for
comparable appraisal assignments, as documented by the
mortgage originator or its agent;
``(3) the transaction value is less than $400,000; and
``(4) the mortgage originator is subject to oversight by a
Federal financial institutions regulatory agency.
``(c) Sale, Assignment, or Transfer.--A mortgage originator that
makes a loan without an appraisal under the terms of subsection (b)
shall not sell, assign, or otherwise transfer legal title to the loan
unless--
``(1) the loan is sold, assigned, or otherwise transferred
to another person by reason of the bankruptcy or failure of the
mortgage originator;
``(2) the loan is sold, assigned, or otherwise transferred
to another person regulated by a Federal financial institutions
regulatory agency, so long as the loan is retained in portfolio
by the person;
``(3) the sale, assignment, or transfer is pursuant to a
merger of the mortgage originator with another person or the
acquisition of the mortgage originator by another person or of
another person by the mortgage originator; or
``(4) the sale, loan, or transfer is to a wholly owned
subsidiary of the mortgage originator, provided that, after the
sale, assignment, or transfer, the loan is considered to be an
asset of the mortgage originator for regulatory accounting
purposes.
``(d) Exception.--Subsection (b) shall not apply if--
``(1) a Federal financial institutions regulatory agency
requires an appraisal under section 225.63(c), 323.3(c),
34.43(c), or 722.3(e) of title 12, Code of Federal Regulations;
or
``(2) the loan is a high-cost mortgage, as defined in
section 103 of the Truth in Lending Act (15 U.S.C. 1602).
``(e) Anti-Evasion.--Each Federal financial institutions regulatory
agency shall ensure that any mortgage originator that the Federal
financial institutions regulatory agency oversees that makes a
significant amount of loans under subsection (b) is complying with the
requirements of subsection (b)(2) with respect to each loan.''.
SEC. 104. HOME MORTGAGE DISCLOSURE ACT ADJUSTMENT AND STUDY.
(a) In General.--Section 304 of the Home Mortgage Disclosure Act of
1975 (12 U.S.C. 2803) is amended--
(1) by redesignating subsection (i) as paragraph (3) and
adjusting the margins accordingly;
(2) by inserting before paragraph (3), as so redesignated,
the following:
``(i) Exemptions.--
``(1) Closed-end mortgage loans.--With respect to an
insured depository institution or insured credit union, the
requirements of paragraphs (5) and (6) of subsection (b) shall
not apply with respect to closed-end mortgage loans if the
insured depository institution or insured credit union
originated fewer than 500 closed-end mortgage loans in each of
the 2 preceding calendar years.
``(2) Open-end lines of credit.--With respect to an insured
depository institution or insured credit union, the
requirements of paragraphs (5) and (6) of subsection (b) shall
not apply with respect to open-end lines of credit if the
insured depository institution or insured credit union
originated fewer than 500 open-end lines of credit in each of
the 2 preceding calendar years.
``(3) Required compliance.--Notwithstanding paragraphs (1)
and (2), an insured depository institution shall comply with
paragraphs (5) and (6) of subsection (b) if the insured
depository institution has received a rating of `needs to
improve record of meeting community credit needs' during each
of its 2 most recent examinations or a rating of `substantial
noncompliance in meeting community credit needs' on its most
recent examination under section 807(b)(2) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2906(b)(2)).''; and
(3) by adding at the end the following:
``(o) Definitions.--In this section--
``(1) the term `insured credit union' has the meaning given
the term in section 101 of the Federal Credit Union Act (12
U.S.C. 1752); and
``(2) the term `insured depository institution' has the
meaning given the term in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).''.
(b) Lookback Study.--
(1) Study.--Not earlier than 2 years after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct a study to evaluate the impact of the
amendments made by subsection (a) on the amount of data
available under the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2801 et seq.) at the national and local level.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General of the United
States 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 that includes
the findings and conclusions of the Comptroller General with
respect to the study required under paragraph (1).
(c) Technical Correction.--Section 304(i)(3) of the Home Mortgage
Disclosure Act of 1975, as so redesignated by subsection (a)(1), is
amended by striking ``section 303(2)(A)'' and inserting ``section
303(3)(A)''.
SEC. 105. CREDIT UNION RESIDENTIAL LOANS.
(a) Removal From Member Business Loan Limitation.--Section
107A(c)(1)(B)(i) of the Federal Credit Union Act (12 U.S.C.
1757a(c)(1)(B)(i)) is amended by striking ``that is the primary
residence of a member''.
(b) Rule of Construction.--Nothing in this section or the amendment
made by this section shall preclude the National Credit Union
Administration from treating an extension of credit that is fully
secured by a lien on a 1- to 4-family dwelling that is not the primary
residence of a member as a member business loan for purposes other than
the member business loan limitation requirements under section 107A of
the Federal Credit Union Act (12 U.S.C. 1757a).
SEC. 106. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS.
(a) In General.--The S.A.F.E. Mortgage Licensing Act of 2008 (12
U.S.C. 5101 et seq.) is amended by adding at the end the following:
``SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.
``(a) Definitions.--In this section:
``(1) Application state.--The term `application State'
means a State in which a registered loan originator or a State-
licensed loan originator seeks to be licensed.
``(2) State-licensed mortgage company.--The term `State-
licensed mortgage company' means an entity that is licensed or
registered under the law of any State to engage in residential
mortgage loan origination and processing activities.
``(b) Temporary Authority To Originate Loans for Loan Originators
Moving From a Depository Institution to a Non-Depository Institution.--
``(1) In general.--Upon becoming employed by a State-
licensed mortgage company, an individual who is a registered
loan originator shall be deemed to have temporary authority to
act as a loan originator in an application State for the period
described in paragraph (2) if the individual--
``(A) has not had--
``(i) an application for a loan originator
license denied; or
``(ii) a loan originator license revoked or
suspended in any governmental jurisdiction;
``(B) has not been subject to, or served with, a
cease and desist order--
``(i) in any governmental jurisdiction; or
``(ii) under section 1514(c);
``(C) has not been convicted of a misdemeanor or
felony that would preclude licensure under the law of
the application State;
``(D) has submitted an application to be a State-
licensed loan originator in the application State; and
``(E) was registered in the Nationwide Mortgage
Licensing System and Registry as a loan originator
during the 1-year period preceding the date on which
the information required under section 1505(a) is
submitted.
``(2) Period.--The period described in this paragraph shall
begin on the date on which an individual described in paragraph
(1) submits the information required under section 1505(a) and
shall end on the earliest of the date--
``(A) on which the individual withdraws the
application to be a State-licensed loan originator in
the application State;
``(B) on which the application State denies, or
issues a notice of intent to deny, the application;
``(C) on which the application State grants a State
license; or
``(D) that is 120 days after the date on which the
individual submits the application, if the application
is listed on the Nationwide Mortgage Licensing System
and Registry as incomplete.
``(c) Temporary Authority To Originate Loans for State-Licensed
Loan Originators Moving Interstate.--
``(1) In general.--A State-licensed loan originator shall
be deemed to have temporary authority to act as a loan
originator in an application State for the period described in
paragraph (2) if the State-licensed loan originator--
``(A) meets the requirements of subparagraphs (A),
(B), (C), and (D) of subsection (b)(1);
``(B) is employed by a State-licensed mortgage
company in the application State; and
``(C) was licensed in a State that is not the
application State during the 30-day period preceding
the date on which the information required under
section 1505(a) was submitted in connection with the
application submitted to the application State.
``(2) Period.--The period described in this paragraph shall
begin on the date on which the State-licensed loan originator
submits the information required under section 1505(a) in
connection with the application submitted to the application
State and end on the earliest of the date--
``(A) on which the State-licensed loan originator
withdraws the application to be a State-licensed loan
originator in the application State;
``(B) on which the application State denies, or
issues a notice of intent to deny, the application;
``(C) on which the application State grants a State
license; or
``(D) that is 120 days after the date on which the
State-licensed loan originator submits the application,
if the application is listed on the Nationwide Mortgage
Licensing System and Registry as incomplete.
``(d) Applicability.--
``(1) Employer of loan originators.--Any person employing
an individual who is deemed to have temporary authority to act
as a loan originator in an application State under this section
shall be subject to the requirements of this title and to
applicable State law to the same extent as if that individual
was a State-licensed loan originator licensed by the
application State.
``(2) Engaging in mortgage loan activities.--Any individual
who is deemed to have temporary authority to act as a loan
originator in an application State under this section and who
engages in residential mortgage loan origination activities
shall be subject to the requirements of this title and to
applicable State law to the same extent as if that individual
was a State-licensed loan originator licensed by the
application State.''.
(b) Table of Contents Amendment.--Section 1(b) of the Housing and
Economic Recovery Act of 2008 (42 U.S.C. 4501 note) is amended by
inserting after the item relating to section 1517 the following:
``Sec. 1518. Employment transition of loan originators.''.
(c) Civil Liability.--Section 1513 of the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5112) is amended by striking ``persons
who are loan originators or are applying for licensing or registration
as loan originators.'' and inserting ``persons who--
``(1) have applied, are applying, or are licensed or
registered through the Nationwide Mortgage Licensing System and
Registry; and
``(2) work in an industry with respect to which persons
were licensed or registered through the Nationwide Mortgage
Licensing System and Registry on the date of enactment of the
Economic Growth, Regulatory Relief, and Consumer Protection
Act.''.
(d) Effective Date.--This section and the amendments made by this
section shall take effect on the date that is 18 months after the date
of enactment of this Act.
SEC. 107. PROTECTING ACCESS TO MANUFACTURED HOMES.
Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is
amended--
(1) by redesignating the second subsection (cc) (relating
to definitions relating to mortgage origination and residential
mortgage loans) and subsection (dd) as subsections (dd) and
(ee), respectively; and
(2) in paragraph (2) of subsection (dd), as so
redesignated, by striking subparagraph (C) and inserting the
following:
``(C) does not include any person who is--
``(i) not otherwise described in
subparagraph (A) or (B) and who performs purely
administrative or clerical tasks on behalf of a
person who is described in any such
subparagraph; or
``(ii) a retailer of manufactured or
modular homes or an employee of the retailer if
the retailer or employee, as applicable--
``(I) does not receive compensation
or gain for engaging in activities
described in subparagraph (A) that is
in excess of any compensation or gain
received in a comparable cash
transaction;
``(II) discloses to the consumer--
``(aa) in writing any
corporate affiliation with any
creditor; and
``(bb) if the retailer has
a corporate affiliation with
any creditor, at least 1
unaffiliated creditor; and
``(III) does not directly negotiate
with the consumer or lender on loan
terms (including rates, fees, and other
costs).''.
SEC. 108. ESCROW REQUIREMENTS RELATING TO CERTAIN CONSUMER CREDIT
TRANSACTIONS.
Section 129D of the Truth in Lending Act (15 U.S.C. 1639d) is
amended--
(1) in subsection (c)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and
adjusting the margins accordingly;
(B) in the matter preceding subparagraph (A), as so
redesignated, by striking ``The Board'' and inserting
the following:
``(1) In general.--The Bureau'';
(C) in paragraph (1), as so redesignated, by
striking ``the Board'' each place that term appears and
inserting ``the Bureau''; and
(D) by adding at the end the following:
``(2) Treatment of loans held by smaller institutions.--The
Bureau shall, by regulation, exempt from the requirements of
subsection (a) any loan made by an insured depository
institution or an insured credit union secured by a first lien
on the principal dwelling of a consumer if--
``(A) the insured depository institution or insured
credit union has assets of $10,000,000,000 or less;
``(B) during the preceding calendar year, the
insured depository institution or insured credit union
and its affiliates originated 1,000 or fewer loans
secured by a first lien on a principal dwelling; and
``(C) the transaction satisfies the criteria in
sections 1026.35(b)(2)(iii)(A), 1026.35(b)(2)(iii)(D),
and 1026.35(b)(2)(v) of title 12, Code of Federal
Regulations, or any successor regulation.''; and
(2) in subsection (i), by adding at the end the following:
``(3) Insured credit union.--The term `insured credit
union' has the meaning given the term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
``(4) Insured depository institution.--The term `insured
depository institution' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).''.
SEC. 109. NO WAIT FOR LOWER MORTGAGE RATES.
(a) In General.--Section 129(b) of the Truth in Lending Act (15
U.S.C. 1639(b)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) No wait for lower rate.--If a creditor extends to a
consumer a second offer of credit with a lower annual
percentage rate, the transaction may be consummated without
regard to the period specified in paragraph (1) with respect to
the second offer.''.
(b) Sense of Congress.--It is the sense of Congress that, whereas
the Bureau of Consumer Financial Protection issued a final rule
entitled ``Integrated Mortgage Disclosures Under the Real Estate
Settlement Procedures Act (Regulation X) and the Truth in Lending Act
(Regulation Z)'' (78 Fed. Reg. 79730 (December 31, 2013)) (in this
subsection referred to as the ``TRID Rule'') to combine the disclosures
a consumer receives in connection with applying for and closing on a
mortgage loan, the Bureau of Consumer Financial Protection should
endeavor to provide clearer, authoritative guidance on--
(1) the applicability of the TRID Rule to mortgage
assumption transactions;
(2) the applicability of the TRID Rule to construction-to-
permanent home loans, and the conditions under which those
loans can be properly originated; and
(3) the extent to which lenders can rely on model
disclosures published by the Bureau of Consumer Financial
Protection without liability if recent changes to regulations
are not reflected in the sample TRID Rule forms published by
the Bureau of Consumer Financial Protection.
TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT
SEC. 201. CAPITAL SIMPLIFICATION FOR QUALIFYING COMMUNITY BANKS.
(a) Definitions.--In this section:
(1) Community bank leverage ratio.--The term ``Community
Bank Leverage Ratio'' means the ratio of the tangible equity
capital of a qualifying community bank, as reported on the
qualifying community bank's applicable regulatory filing with
the qualifying community bank's appropriate Federal banking
agency, to the average total consolidated assets of the
qualifying community bank, as reported on the qualifying
community bank's applicable regulatory filing with the
qualifying community bank's appropriate Federal banking agency.
(2) Generally applicable leverage capital requirements;
generally applicable risk-based capital requirements.--The
terms ``generally applicable leverage capital requirements''
and ``generally applicable risk-based capital requirements''
have the meanings given those terms in section 171(a) of the
Financial Stability Act of 2010 (12 U.S.C. 5371(a)).
(3) Qualifying community bank.--
(A) Asset threshold.--The term ``qualifying
community bank'' means a depository institution or
depository institution holding company with total
consolidated assets of less than $10,000,000,000.
(B) Risk profile.--The appropriate Federal banking
agencies may determine that a depository institution or
depository institution holding company (or a class of
depository institutions or depository institution
holding companies) described in subparagraph (A) is not
a qualifying community bank based on the depository
institution's or depository institution holding
company's risk profile, which shall be based on
consideration of--
(i) off-balance sheet exposures;
(ii) trading assets and liabilities;
(iii) total notional derivatives exposures;
and
(iv) such other factors as the appropriate
Federal banking agencies determine appropriate.
(b) Community Bank Leverage Ratio.--The appropriate Federal banking
agencies shall, through notice and comment rule making under section
553 of title 5, United States Code--
(1) develop a Community Bank Leverage Ratio of not less
than 8 percent and not more than 10 percent for qualifying
community banks; and
(2) establish procedures for treatment of a qualifying
community bank that has a Community Bank Leverage Ratio that
falls below the percentage developed under paragraph (1) after
exceeding the percentage developed under paragraph (1).
(c) Capital Compliance.--
(1) In general.--Any qualifying community bank that exceeds
the Community Bank Leverage Ratio developed under subsection
(b)(1) shall be considered to have met--
(A) the generally applicable leverage capital
requirements and the generally applicable risk-based
capital requirements;
(B) in the case of a qualifying community bank that
is a depository institution, the capital ratio
requirements that are required in order to be
considered well capitalized under section 38 of the
Federal Deposit Insurance Act (12 U.S.C. 1831o) and any
regulation implementing that section; and
(C) any other capital or leverage requirements to
which the qualifying community bank is subject.
(2) Existing authorities.--Nothing in paragraph (1) shall
limit the authority of the appropriate Federal banking agencies
as in effect on the date of enactment of this Act.
(d) Consultation.--The appropriate Federal banking agencies shall--
(1) consult with the applicable State bank supervisors in
carrying out this section; and
(2) notify the applicable State bank supervisor of any
qualifying community bank that it supervises that exceeds, or
does not exceed after previously exceeding, the Community Bank
Leverage ratio developed under subsection (b)(1).
SEC. 202. LIMITED EXCEPTION FOR RECIPROCAL DEPOSITS.
(a) In General.--Section 29 of the Federal Deposit Insurance Act
(12 U.S.C. 1831f) is amended by adding at the end the following:
``(i) Limited Exception for Reciprocal Deposits.--
``(1) In general.--Reciprocal deposits of an agent
institution shall not be considered to be funds obtained,
directly or indirectly, by or through a deposit broker to the
extent that the total amount of such reciprocal deposits does
not exceed the lesser of--
``(A) $5,000,000,000; or
``(B) an amount equal to 20 percent of the total
liabilities of the agent institution.
``(2) Definitions.--In this subsection:
``(A) Agent institution.--The term `agent
institution' means an insured depository institution
that places a covered deposit through a deposit
placement network at other insured depository
institutions in amounts that are less than or equal to
the standard maximum deposit insurance amount,
specifying the interest rate to be paid for such
amounts, if the insured depository institution--
``(i)(I) when most recently examined under
section 10(d) was found to have a composite
condition of outstanding or good; and
``(II) is well capitalized;
``(ii) has obtained a waiver pursuant to
subsection (c); or
``(iii) does not receive an amount of
reciprocal deposits that causes the total
amount of reciprocal deposits held by the agent
institution to be greater than the average of
the total amount of reciprocal deposits held by
the agent institution on the last day of each
of the 4 calendar quarters preceding the
calendar quarter in which the agent institution
was found not to have a composite condition of
outstanding or good or was determined to be not
well capitalized.
``(B) Covered deposit.--The term `covered deposit'
means a deposit that--
``(i) is submitted for placement through a
deposit placement network by an agent
institution; and
``(ii) does not consist of funds that were
obtained for the agent institution, directly or
indirectly, by or through a deposit broker
before submission for placement through a
deposit placement network.
``(C) Deposit placement network.--The term `deposit
placement network' means a network in which an insured
depository institution participates, together with
other insured depository institutions, for the
processing and receipt of reciprocal deposits.
``(D) Network member bank.--The term `network
member bank' means an insured depository institution
that is a member of a deposit placement network.
``(E) Reciprocal deposits.--The term `reciprocal
deposits' means deposits received by an agent
institution through a deposit placement network with
the same maturity (if any) and in the same aggregate
amount as covered deposits placed by the agent
institution in other network member banks.
``(F) Well capitalized.--The term `well
capitalized' has the meaning given the term in section
38(b)(1).''.
(b) Interest Rate Restriction.--Section 29 of the Federal Deposit
Insurance Act (12 U.S.C. 1831f) is amended by striking subsection (e)
and inserting the following:
``(e) Restriction on Interest Rate Paid.--
``(1) Definitions.--In this subsection--
``(A) the terms `agent institution', `reciprocal
deposits', and `well capitalized' have the meanings
given those terms in subsection (i); and
``(B) the term `covered insured depository
institution' means an insured depository institution
that--
``(i) under subsection (c) or (d), accepts
funds obtained, directly or indirectly, by or
through a deposit broker; or
``(ii) while acting as an agent institution
under subsection (i), accepts reciprocal
deposits while not well capitalized.
``(2) Prohibition.--A covered insured depository
institution may not pay a rate of interest on funds or
reciprocal deposits described in paragraph (1) that, at the
time that the funds or reciprocal deposits are accepted,
significantly exceeds the limit set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of
interest referred to in paragraph (2) shall be--
``(A) the rate paid on deposits of similar maturity
in the normal market area of the covered insured
depository institution for deposits accepted in the
normal market area of the covered insured depository
institution; or
``(B) the national rate paid on deposits of
comparable maturity, as established by the Corporation,
for deposits accepted outside the normal market area of
the covered insured depository institution.''.
SEC. 203. COMMUNITY BANK RELIEF.
Section 13(h)(1) of the Bank Holding Company Act of 1956 (12 U.S.C.
1851(h)(1)) is amended--
(1) in subparagraph (D), by redesignating clauses (i) and
(ii) as subclauses (I) and (II), respectively, and adjusting
the margins accordingly;
(2) by redesignating subparagraphs (A) through (D) as
clauses (i) through (iv), respectively, and adjusting the
margins accordingly;
(3) in the matter preceding clause (i), as so redesignated,
in the second sentence, by striking ``institution that
functions solely in a trust or fiduciary capacity, if--'' and
inserting the following: ``institution--
``(A) that functions solely in a trust or fiduciary
capacity, if--'';
(4) in clause (iv)(II), as so redesignated, by striking the
period at the end and inserting ``; or''; and
(5) by adding at the end the following:
``(B) that does not have and is not controlled by a
company that has--
``(i) more than $10,000,000,000 in total
consolidated assets; and
``(ii) total trading assets and trading
liabilities, as reported on the most recent
applicable regulatory filing filed by the
institution, that are more than 5 percent of
total consolidated assets.''.
SEC. 204. REMOVING NAMING RESTRICTIONS.
Section 13 of the Bank Holding Company Act of 1956 (12 U.S.C. 1851)
is amended--
(1) in subsection (d)(1)(G)(vi), by inserting before the
semicolon the following: ``, except that the hedge fund or
private equity fund may share the same name or a variation of
the same name as a banking entity that is an investment adviser
to the hedge fund or private equity fund, if--
``(I) such investment adviser is
not an insured depository institution,
a company that controls an insured
depository institution, or a company
that is treated as a bank holding
company for purposes of section 8 of
the International Banking Act of 1978
(12 U.S.C. 3106);
``(II) such investment adviser does
not share the same name or a variation
of the same name as an insured
depository institution, any company
that controls an insured depository
institution, or any company that is
treated as a bank holding company for
purposes of section 8 of the
International Banking Act of 1978 (12
U.S.C. 3106); and
``(III) such name does not contain
the word `bank'''; and
(2) in subsection (h)(5)(C), by inserting before the period
the following: ``, except as permitted under subsection
(d)(1)(G)(vi)''.
SEC. 205. SHORT FORM CALL REPORTS.
Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C.
1817(a)) is amended by adding at the end the following:
``(12) Short form reporting.--
``(A) In general.--The appropriate Federal banking
agencies shall issue regulations that allow for a
reduced reporting requirement for a covered depository
institution when the institution makes the first and
third report of condition for a year, as required under
paragraph (3).
``(B) Definition.--In this paragraph, the term
`covered depository institution' means an insured
depository institution that--
``(i) has less than $5,000,000,000 in total
consolidated assets; and
``(ii) satisfies such other criteria as the
appropriate Federal banking agencies determine
appropriate.''.
SEC. 206. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO OPERATE AS COVERED
SAVINGS ASSOCIATIONS.
The Home Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended by
inserting after section 5 (12 U.S.C. 1464) the following:
``SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS ASSOCIATION.
``(a) Definition.--In this section, the term `covered savings
association' means a Federal savings association that makes an election
that is approved under subsection (b).
``(b) Election.--
``(1) In general.--In accordance with the rules issued
under subsection (f), a Federal savings association with total
consolidated assets equal to or less than $20,000,000,000, as
reported by the association to the Comptroller as of December
31, 2017, may elect to operate as a covered savings association
by submitting a notice to the Comptroller of that election.
``(2) Approval.--A Federal savings association shall be
deemed to be approved to operate as a covered savings
association beginning on the date that is 60 days after the
date on which the Comptroller receives the notice submitted
under paragraph (1), unless the Comptroller notifies the
Federal savings association that the Federal savings
association is not eligible.
``(c) Rights and Duties.--Notwithstanding any other provision of
law, and except as otherwise provided in this section, a covered
savings association shall--
``(1) have the same rights and privileges as a national
bank that has the main office of the national bank situated in
the same location as the home office of the covered savings
association; and
``(2) be subject to the same duties, restrictions,
penalties, liabilities, conditions, and limitations that would
apply to a national bank described in paragraph (1).
``(d) Treatment of Covered Savings Associations.--A covered savings
association shall be treated as a Federal savings association for the
purposes--
``(1) of governance of the covered savings association,
including incorporation, bylaws, boards of directors,
shareholders, and distribution of dividends;
``(2) of consolidation, merger, dissolution, conversion
(including conversion to a stock bank or to another charter),
conservatorship, and receivership; and
``(3) determined by regulation of the Comptroller.
``(e) Existing Branches.--A covered savings association may
continue to operate any branch or agency that the covered savings
association operated on the date on which an election under subsection
(b) is approved.
``(f) Rule Making.--The Comptroller shall issue rules to carry out
this section--
``(1) that establish streamlined standards and procedures
that clearly identify required documentation and timelines for
an election under subsection (b);
``(2) that require a Federal savings association that makes
an election under subsection (b) to identify specific assets
and subsidiaries that--
``(A) do not conform to the requirements for assets
and subsidiaries of a national bank; and
``(B) are held by the Federal savings association
on the date on which the Federal savings association
submits a notice of the election;
``(3) that establish--
``(A) a transition process for bringing the assets
and subsidiaries described in paragraph (2) into
conformance with the requirements for a national bank;
and
``(B) procedures for allowing the Federal savings
association to submit to the Comptroller an application
to continue to hold assets and subsidiaries described
in paragraph (2) after electing to operate as a covered
savings association;
``(4) that establish standards and procedures to allow a
covered savings association to--
``(A) terminate an election under subsection (b)
after an appropriate period of time; and
``(B) make a subsequent election under subsection
(b) after terminating an election under subparagraph
(A);
``(5) that clarify requirements for the treatment of
covered savings associations, including the provisions of law
that apply to covered savings associations; and
``(6) as the Comptroller determines necessary in the
interests of safety and soundness.
``(g) Grandfathered Covered Savings Associations.--Subject to the
rules issued under subsection (f), a covered savings association may
continue to operate as a covered savings association if, after the date
on which the election is made under subsection (b), the covered savings
association has total consolidated assets greater than
$20,000,000,000.''.
SEC. 207. SMALL BANK HOLDING COMPANY POLICY STATEMENT.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Board of Governors
of the Federal Reserve System.
(2) Savings and loan holding company.--The term ``savings
and loan holding company'' has the meaning given the term in
section 10(a) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)).
(b) Changes Required to Small Bank Holding Company Policy Statement
on Assessment of Financial and Managerial Factors.--Not later than 180
days after the date of enactment of this Act, the Board shall revise
appendix C to part 225 of title 12, Code of Federal Regulations
(commonly known as the ``Small Bank Holding Company and Savings and
Loan Holding Company Policy Statement''), to raise the consolidated
asset threshold under that appendix from $1,000,000,000 to
$3,000,000,000 for any bank holding company or savings and loan holding
company that--
(1) is not engaged in significant nonbanking activities
either directly or through a nonbank subsidiary;
(2) does not conduct significant off-balance sheet
activities (including securitization and asset management or
administration) either directly or through a nonbank
subsidiary; and
(3) does not have a material amount of debt or equity
securities outstanding (other than trust preferred securities)
that are registered with the Securities and Exchange
Commission.
(c) Exclusions.--The Board may exclude any bank holding company or
savings and loan holding company, regardless of asset size, from the
revision under subsection (b) if the Board determines that such action
is warranted for supervisory purposes.
(d) Conforming Amendment.--Section 171(b)(5) of the Financial
Stability Act of 2010 (12 U.S.C. 5371(b)(5)) is amended by striking
subparagraph (C) and inserting the following:
``(C) any bank holding company or savings and loan
holding company that is subject to the application of
appendix C to part 225 of title 12, Code of Federal
Regulations (commonly known as the `Small Bank Holding
Company and Savings and Loan Holding Company Policy
Statement').''.
SEC. 208. APPLICATION OF THE EXPEDITED FUNDS AVAILABILITY ACT.
(a) In General.--The Expedited Funds Availability Act (12 U.S.C.
4001 et seq.) is amended--
(1) in section 602 (12 U.S.C. 4001)--
(A) in paragraph (20), by inserting ``, located in
the United States,'' after ``ATM'';
(B) in paragraph (21), by inserting ``American
Samoa, the Commonwealth of the Northern Mariana
Islands, Guam,'' after ``Puerto Rico,''; and
(C) in paragraph (23), by inserting ``American
Samoa, the Commonwealth of the Northern Mariana
Islands, Guam,'' after ``Puerto Rico,''; and
(2) in section 603(d)(2)(A) (12 U.S.C. 4002(d)(2)(A)), by
inserting ``American Samoa, the Commonwealth of the Northern
Mariana Islands, Guam,'' after ``Puerto Rico,''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date that is 30 days after the date of enactment of this
Act.
SEC. 209. SMALL PUBLIC HOUSING AGENCIES.
(a) Small Public Housing Agencies.--Title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at
the end the following:
``SEC. 38. SMALL PUBLIC HOUSING AGENCIES.
``(a) Definitions.--In this section:
``(1) Housing voucher program.--The term `housing voucher
program' means a program for tenant-based assistance under
section 8.
``(2) Small public housing agency.--The term `small public
housing agency' means a public housing agency--
``(A) for which the sum of the number of public
housing dwelling units administered by the agency and
the number of vouchers under section 8(o) administered
by the agency is 550 or fewer; and
``(B) that predominantly operates in a rural area,
as described in section 1026.35(b)(2)(iv)(A) of title
12, Code of Federal Regulations.
``(3) Troubled small public housing agency.--The term
`troubled small public housing agency' means a small public
housing agency designated by the Secretary as a troubled small
public housing agency under subsection (c)(3).
``(b) Applicability.--Except as otherwise provided in this section,
a small public housing agency shall be subject to the same requirements
as a public housing agency.
``(c) Program Inspections and Evaluations.--
``(1) Public housing projects.--
``(A) Frequency of inspections by secretary.--The
Secretary shall carry out an inspection of the physical
condition of a small public housing agency's public
housing projects not more frequently than once every 3
years, unless the agency has been designated by the
Secretary as a troubled small public housing agency
based on deficiencies in the physical condition of its
public housing projects. Nothing contained in this
subparagraph relieves the Secretary from conducting
lead safety inspections or assessments in accordance
with procedures established by the Secretary under
section 302 of the Lead-Based Paint Poisoning
Prevention Act (42 U.S.C. 4822).
``(B) Standards.--The Secretary shall apply to
small public housing agencies the same standards for
the acceptable condition of public housing projects
that apply to projects assisted under section 8.
``(2) Housing voucher program.--Except as required by
section 8(o)(8)(F), a small public housing agency administering
assistance under section 8(o) shall make periodic physical
inspections of each assisted dwelling unit not less frequently
than once every 3 years to determine whether the unit is
maintained in accordance with the requirements under section
8(o)(8)(A). Nothing contained in this paragraph relieves a
small public housing agency from conducting lead safety
inspections or assessments in accordance with procedures
established by the Secretary under section 302 of the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4822).
``(3) Troubled small public housing agencies.--
``(A) Public housing program.--Notwithstanding any
other provision of law, the Secretary may designate a
small public housing agency as a troubled small public
housing agency with respect to the public housing
program of the small public housing agency if the
Secretary determines that the agency has failed to
maintain the public housing units of the small public
housing agency in a satisfactory physical condition,
based upon an inspection conducted by the Secretary.
``(B) Housing voucher program.--Notwithstanding any
other provision of law, the Secretary may designate a
small public housing agency as a troubled small public
housing agency with respect to the housing voucher
program of the small public housing agency if the
Secretary determines that the agency has failed to
comply with the inspection requirements under paragraph
(2).
``(C) Appeals.--
``(i) Establishment.--The Secretary shall
establish an appeals process under which a
small public housing agency may dispute a
designation as a troubled small public housing
agency.
``(ii) Official.--The appeals process
established under clause (i) shall provide for
a decision by an official who has not been
involved, and is not subordinate to a person
who has been involved, in the original
determination to designate a small public
housing agency as a troubled small public
housing agency.
``(D) Corrective action agreement.--
``(i) Agreement required.--Not later than
60 days after the date on which a small public
housing agency is designated as a troubled
public housing agency under subparagraph (A) or
(B), the Secretary and the small public housing
agency shall enter into a corrective action
agreement under which the small public housing
agency shall undertake actions to correct the
deficiencies upon which the designation is
based.
``(ii) Terms of agreement.--A corrective
action agreement entered into under clause (i)
shall--
``(I) have a term of 1 year, and
shall be renewable at the option of the
Secretary;
``(II) provide, where feasible, for
technical assistance to assist the
public housing agency in curing its
deficiencies;
``(III) provide for--
``(aa) reconsideration of
the designation of the small
public housing agency as a
troubled small public housing
agency not less frequently than
annually; and
``(bb) termination of the
agreement when the Secretary
determines that the small
public housing agency is no
longer a troubled small public
housing agency; and
``(IV) provide that in the event of
substantial noncompliance by the small
public housing agency under the
agreement, the Secretary may--
``(aa) contract with
another public housing agency
or a private entity to manage
the public housing of the
troubled small public housing
agency;
``(bb) withhold funds
otherwise distributable to the
troubled small public housing
agency;
``(cc) assume possession
of, and direct responsibility
for, managing the public
housing of the troubled small
public housing agency;
``(dd) petition for the
appointment of a receiver, in
accordance with section
6(j)(3)(A)(ii); and
``(ee) exercise any other
remedy available to the
Secretary in the event of
default under the public
housing annual contributions
contract entered into by the
small public housing agency
under section 5.
``(E) Emergency actions.--Nothing in this paragraph
may be construed to prohibit the Secretary from taking
any emergency action necessary to protect Federal
financial resources or the health or safety of
residents of public housing projects.
``(d) Reduction of Administrative Burdens.--
``(1) Exemption.--Notwithstanding any other provision of
law, a small public housing agency shall be exempt from any
environmental review requirements with respect to a development
or modernization project having a total cost of not more than
$100,000.
``(2) Streamlined procedures.--The Secretary shall, by
rule, establish streamlined procedures for environmental
reviews of small public housing agency development and
modernization projects having a total cost of more than
$100,000.''.
(b) Energy Conservation.--Section 9(e)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437g(e)(2)) is amended by adding at the
end the following:
``(D) Freeze of consumption levels.--
``(i) In general.--A small public housing
agency, as defined in section 38(a), may elect
to be paid for its utility and waste management
costs under the formula for a period, at the
discretion of the small public housing agency,
of not more than 20 years based on the small
public housing agency's average annual
consumption during the 3-year period preceding
the year in which the election is made (in this
subparagraph referred to as the `consumption
base level').
``(ii) Initial adjustment in consumption
base level.--The Secretary shall make an
initial one-time adjustment in the consumption
base level to account for differences in the
heating degree day average over the most recent
20-year period compared to the average in the
consumption base level.
``(iii) Adjustments in consumption base
level.--The Secretary shall make adjustments in
the consumption base level to account for an
increase or reduction in units, a change in
fuel source, a change in resident controlled
electricity consumption, or for other reasons.
``(iv) Savings.--All cost savings resulting
from an election made by a small public housing
agency under this subparagraph--
``(I) shall accrue to the small
public housing agency; and
``(II) may be used for any public
housing purpose at the discretion of
the small public housing agency.
``(v) Third parties.--A small public
housing agency making an election under this
subparagraph--
``(I) may use, but shall not be
required to use, the services of a
third party in its energy conservation
program; and
``(II) shall have the sole
discretion to determine the source, and
terms and conditions, of any financing
used for its energy conservation
program.''.
(c) Reporting by Agencies Operating in Consortia.--Not later than
180 days after the date of enactment of this Act, the Secretary of
Housing and Urban Development shall develop and deploy all electronic
information systems necessary to accommodate full consolidated
reporting by public housing agencies, as defined in section 3(b)(6) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)), electing
to operate in consortia under section 13(a) of such Act (42 U.S.C.
1437k(a)).
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on the date that is 60 days after the date of
enactment of this Act.
(e) Shared Waiting Lists.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban Development
shall make available to interested public housing agencies and owners
of multifamily properties receiving assistance from the Department of
Housing and Urban Development 1 or more software programs that will
facilitate the voluntary use of a shared waiting list by multiple
public housing agencies or owners receiving assistance, and shall
publish on the website of the Department of Housing and Urban
Development procedural guidance for implementing shared waiting lists
that includes information on how to obtain the software.
SEC. 210. 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 ``$1,000,000,000'' and
inserting ``$3,000,000,000''; and
(2) in paragraph (10), by striking ``$1,000,000,000'' and
inserting ``$3,000,000,000''.
SEC. 211. INTERNATIONAL INSURANCE CAPITAL STANDARDS ACCOUNTABILITY.
(a) Findings.--Congress finds that--
(1) the Secretary of the Treasury, Board of Governors of
the Federal Reserve System, and Director of the Federal
Insurance Office shall support increasing transparency at any
global insurance or international standard-setting regulatory
or supervisory forum in which they participate, including
supporting and advocating for greater public observer access to
working groups and committee meetings of the International
Association of Insurance Supervisors; and
(2) to the extent that the Secretary of the Treasury, the
Board of Governors of the Federal Reserve System, and the
Director of the Federal Insurance Office take a position or
reasonably intend to take a position with respect to an
insurance proposal by a global insurance regulatory or
supervisory forum, the Secretary of the Treasury, the Board of
Governors of the Federal Reserve System, and the Director of
the Federal Insurance Office shall achieve consensus positions
with State insurance regulators through the National
Association of Insurance Commissioners, when they are United
States participants in negotiations on insurance issues before
the International Association of Insurance Supervisors,
Financial Stability Board, or any other international forum of
financial regulators or supervisors that considers such issues.
(b) Insurance Policy Advisory Committee.--
(1) Establishment.--There is established the Insurance
Policy Advisory Committee on International Capital Standards
and Other Insurance Issues at the Board of Governors of the
Federal Reserve System.
(2) Membership.--The Committee shall be composed of not
more than 21 members, all of whom represent a diverse set of
expert perspectives from the various sectors of the United
States insurance industry, including life insurance, property
and casualty insurance and reinsurance, agents and brokers,
academics, consumer advocates, or experts on issues facing
underserved insurance communities and consumers.
(c) Reports.--
(1) Reports and testimony by secretary of the treasury and
chairman of the federal reserve.--
(A) In general.--The Secretary of the Treasury and
the Chairman of the Board of Governors of the Federal
Reserve System, or their designee, 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, an annual report and provide
annual testimony to the Committee on Banking, Housing,
and Urban Affairs of the Senate, and the Committee on
Financial Services of the House of Representatives on
the efforts of the Secretary and the Chairman with the
National Association of Insurance Commissioners with
respect to global insurance regulatory or supervisory
forums, including--
(i) a description of the insurance
regulatory or supervisory standard-setting
issues under discussion at international
standard-setting bodies, including the
Financial Stability Board and the International
Association of Insurance Supervisors;
(ii) a description of the effects that
proposals discussed at international insurance
regulatory or supervisory forums of insurance
could have on consumer and insurance markets in
the United States;
(iii) a description of any position taken
by the Secretary of the Treasury, the Board of
Governors of the Federal Reserve System, and
the Director of the Federal Insurance Office in
international insurance discussions; and
(iv) a description of the efforts by the
Secretary of the Treasury, the Board of
Governors of the Federal Reserve System, and
the Director of the Federal Insurance Office to
increase transparency at the Financial
Stability Board with respect to insurance
proposals and the International Association of
Insurance Supervisors, including efforts to
provide additional public access to working
groups and committees of the International
Association of Insurance Supervisors.
(B) Termination.--This paragraph shall terminate on
December 31, 2024.
(2) Reports and testimony by national association of
insurance commissioners.--The National Association of Insurance
Commissioners may provide testimony to Congress on the issues
described in paragraph (1)(A).
(3) Joint report by the chairman of the federal reserve and
the director of the federal insurance office.--
(A) In general.--The Secretary of the Treasury, the
Chairman of the Board of Governors of the Federal
Reserve System, and the Director of the Federal
Insurance Office shall, in consultation with the
National Association of Insurance Commissioners,
complete a study on, and submit to Congress a report on
the results of the study, the impact on consumers and
markets in the United States before supporting or
consenting to the adoption of any final international
insurance capital standard.
(B) Notice and comment.--
(i) Notice.--The Secretary of the Treasury,
the Chairman of the Board of Governors of the
Federal Reserve System, and the Director of the
Federal Insurance Office shall provide public
notice before the date on which drafting a
report required under subparagraph (A) is
commenced and after the date on which the draft
of the report is completed.
(ii) Opportunity for comment.--There shall
be an opportunity for public comment for a
period beginning on the date on which the
report is submitted under subparagraph (A) and
ending on the date that is 60 days after the
date on which the report is submitted.
(C) Review by comptroller general.--The Secretary
of the Treasury, Chairman of the Board of Governors of
the Federal Reserve System, and the Director of the
Federal Insurance Office shall submit to the
Comptroller General of the United States the report
described in subparagraph (A) for review.
(4) Report on increase in transparency.--Not later than 180
days after the date of enactment of this Act, the Chairman of
the Board of Governors of the Federal Reserve System and the
Secretary of the Treasury, or their designees, shall submit to
Congress a report and provide testimony to Congress on the
efforts of the Chairman and the Secretary to increase
transparency at meetings of the International Association of
Insurance Supervisors.
SEC. 212. BUDGET TRANSPARENCY FOR THE NCUA.
Section 209(b) of the Federal Credit Union Act (12 U.S.C. 1789(b))
is amended--
(1) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively;
(2) by inserting before paragraph (2), as so redesignated,
the following:
``(1) on an annual basis and prior to the submission of the
detailed business-type budget required under paragraph (2)--
``(A) make publicly available and publish in the
Federal Register a draft of the detailed business-type
budget; and
``(B) hold a public hearing, with public notice
provided of the hearing, during which the public may
submit comments on the draft of the detailed business-
type budget;''; and
(3) in paragraph (2), as so redesignated--
(A) by inserting ``detailed'' after ``submit a'';
and
(B) by inserting ``, which shall address any
comment submitted by the public under paragraph
(1)(B)'' after ``Control Act''.
SEC. 213. MAKING ONLINE BANKING INITIATION LEGAL AND EASY.
(a) Definitions.--In this section:
(1) Affiliate.--The term ``affiliate'' has the meaning
given the term in section 2 of the Bank Holding Company Act of
1956 (12 U.S.C. 1841).
(2) Driver's license.--The term ``driver's license'' means
a license issued by a State to an individual that authorizes
the individual to operate a motor vehicle on public streets,
roads, or highways.
(3) Federal bank secrecy laws.--The term ``Federal bank
secrecy laws'' means--
(A) section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b);
(B) section 123 of Public Law 91-508 (12 U.S.C.
1953); and
(C) subchapter II of chapter 53 of title 31, United
States Code.
(4) Financial institution.--The term ``financial
institution'' means--
(A) an insured depository institution;
(B) an insured credit union; or
(C) any affiliate of an insured depository
institution or insured credit union.
(5) Financial product or service.--The term ``financial
product or service'' has the meaning given the term in section
1002 of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5481).
(6) Insured credit union.--The term ``insured credit
union'' has the meaning given the term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
(7) Insured depository institution.--The term ``insured
depository institution'' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(8) Online service.--The term ``online service'' means any
Internet-based service, such as a website or mobile
application.
(9) Personal identification card.--The term ``personal
identification card'' means an identification document issued
by a State or local government to an individual solely for the
purpose of identification of that individual.
(10) Personal information.--The term ``personal
information'' means the information displayed on or
electronically encoded on a driver's license or personal
identification card that is reasonably necessary to fulfill the
purpose and uses permitted by subsection (b).
(11) Scan.--The term ``scan'' means the act of using a
device or software to decipher, in an electronically readable
format, personal information displayed on or electronically
encoded on a driver's license or personal identification card.
(12) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, and any other commonwealth, possession, or
territory of the United States.
(b) Use of a Driver's License or Personal Identification Card.--
(1) In general.--When an individual initiates a request
through an online service to open an account with a financial
institution or obtain a financial product or service from a
financial institution, the financial institution may record
personal information from a scan of the driver's license or
personal identification card of the individual, or make a copy
or receive an image of the driver's license or personal
identification card of the individual, and store or retain such
information in any electronic format for the purposes described
in paragraph (2).
(2) Uses of information.--Except as required to comply with
Federal bank secrecy laws, a financial institution may only use
the information obtained under paragraph (1)--
(A) to verify the authenticity of the driver's
license or personal identification card;
(B) to verify the identity of the individual; and
(C) to comply with a legal requirement to record,
retain, or transmit the personal information in
connection with opening an account or obtaining a
financial product or service.
(3) Deletion of image.--A financial institution that makes
a copy or receives an image of a driver's license or personal
identification card of an individual in accordance with
paragraphs (1) and (2) shall, after using the image for the
purposes described in paragraph (2), permanently delete--
(A) any image of the driver's license or personal
identification card, as applicable; and
(B) any copy of any such image.
(4) Disclosure of personal information.--Nothing in this
section shall be construed to amend, modify, or otherwise
affect any State or Federal law that governs a financial
institution's disclosure and security of personal information
that is not publicly available.
(c) Relation to State Law.--The provisions of this section shall
preempt and supersede any State law that conflicts with a provision of
this section, but only to the extent of such conflict.
SEC. 214. PROMOTING CONSTRUCTION AND DEVELOPMENT ON MAIN STREET.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is
amended by adding at the end the following new section:
``SEC. 51. CAPITAL REQUIREMENTS FOR CERTAIN ACQUISITION, DEVELOPMENT,
OR CONSTRUCTION LOANS.
``(a) In General.--The appropriate Federal banking agencies may
only require a depository institution to assign a heightened risk
weight to a high volatility commercial real estate (HVCRE) exposure (as
such term is defined under section 324.2 of title 12, Code of Federal
Regulations, as of October 11, 2017, or if a successor regulation is in
effect as of the date of the enactment of this section, such term or
any successor term contained in such successor regulation) under any
risk-based capital requirement if such exposure is an HVCRE ADC loan.
``(b) HVCRE ADC Loan Defined.--For purposes of this section and
with respect to a depository institution, the term `HVCRE ADC loan'--
``(1) means a credit facility secured by land or improved
real property that, prior to being reclassified by the
depository institution as a non-HVCRE ADC loan pursuant to
subsection (d)--
``(A) primarily finances, has financed, or
refinances the acquisition, development, or
construction of real property;
``(B) has the purpose of providing financing to
acquire, develop, or improve such real property into
income-producing real property; and
``(C) is dependent upon future income or sales
proceeds from, or refinancing of, such real property
for the repayment of such credit facility;
``(2) does not include a credit facility financing--
``(A) the acquisition, development, or construction
of properties that are--
``(i) one- to four-family residential
properties;
``(ii) real property that would qualify as
an investment in community development; or
``(iii) agricultural land;
``(B) the acquisition or refinance of existing
income-producing real property secured by a mortgage on
such property, if the cash flow being generated by the
real property is sufficient to support the debt service
and expenses of the real property, in accordance with
the institution's applicable loan underwriting criteria
for permanent financings;
``(C) improvements to existing income-producing
improved real property secured by a mortgage on such
property, if the cash flow being generated by the real
property is sufficient to support the debt service and
expenses of the real property, in accordance with the
institution's applicable loan underwriting criteria for
permanent financings; or
``(D) commercial real property projects in which--
``(i) the loan-to-value ratio is less than
or equal to the applicable maximum supervisory
loan-to-value ratio as determined by the
appropriate Federal banking agency;
``(ii) the borrower has contributed capital
of at least 15 percent of the real property's
appraised, `as completed' value to the project
in the form of--
``(I) cash;
``(II) unencumbered readily
marketable assets;
``(III) paid development expenses
out-of-pocket; or
``(IV) contributed real property or
improvements; and
``(iii) the borrower contributed the
minimum amount of capital described under
clause (ii) before the depository institution
advances funds (other than the advance of a
nominal sum made in order to secure the
depository institution's lien against the real
property) under the credit facility, and such
minimum amount of capital contributed by the
borrower is contractually required to remain in
the project until the credit facility has been
reclassified by the depository institution as a
non-HVCRE ADC loan under subsection (d);
``(3) does not include any loan made prior to January 1,
2015; and
``(4) does not include a credit facility reclassified as a
non-HVCRE ADC loan under subsection (d).
``(c) Value of Contributed Real Property.--For purposes of this
section, the value of any real property contributed by a borrower as a
capital contribution shall be the appraised value of the property as
determined under standards prescribed pursuant to section 1110 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3339), in connection with the extension of the credit
facility or loan to such borrower.
``(d) Reclassification as a Non-HVRCE ADC Loan.--For purposes of
this section and with respect to a credit facility and a depository
institution, upon--
``(1) the substantial completion of the development or
construction of the real property being financed by the credit
facility; and
``(2) cash flow being generated by the real property being
sufficient to support the debt service and expenses of the real
property,
in accordance with the institution's applicable loan underwriting
criteria for permanent financings, the credit facility may be
reclassified by the depository institution as a Non-HVCRE ADC loan.
``(e) Existing Authorities.--Nothing in this section shall limit
the supervisory, regulatory, or enforcement authority of an appropriate
Federal banking agency to further the safe and sound operation of an
institution under the supervision of the appropriate Federal banking
agency.''.
SEC. 215. REDUCING IDENTITY FRAUD.
(a) Purpose.--The purpose of this section is to reduce the
prevalence of synthetic identity fraud, which disproportionally affects
vulnerable populations, such as minors and recent immigrants, by
facilitating the validation by permitted entities of fraud protection
data, pursuant to electronically received consumer consent, through use
of a database maintained by the Commissioner.
(b) Definitions.--In this section:
(1) Commissioner.--The term ``Commissioner'' means the
Commissioner of the Social Security Administration.
(2) Financial institution.--The term ``financial
institution'' has the meaning given the term in section 509 of
the Gramm-Leach-Bliley Act (15 U.S.C. 6809).
(3) Fraud protection data.--The term ``fraud protection
data'' means a combination of the following information with
respect to an individual:
(A) The name of the individual (including the first
name and any family forename or surname of the
individual).
(B) The social security number of the individual.
(C) The date of birth (including the month, day,
and year) of the individual.
(4) Permitted entity.--The term ``permitted entity'' means
a financial institution or a service provider, subsidiary,
affiliate, agent, subcontractor, or assignee of a financial
institution.
(c) Efficiency.--
(1) Reliance on existing methods.--The Commissioner shall
evaluate the feasibility of making modifications to any
database that is in existence as of the date of enactment of
this Act or a similar resource such that the database or
resource--
(A) is reasonably designed to effectuate the
purpose of this section; and
(B) meets the requirements of subsection (d).
(2) Execution.--The Commissioner shall make the
modifications necessary to any database that is in existence as
of the date of enactment of this Act or similar resource, or
develop a database or similar resource, to effectuate the
requirements described in paragraph (1).
(d) Protection of Vulnerable Consumers.--The database or similar
resource described in subsection (c) shall--
(1) compare fraud protection data provided in an inquiry by
a permitted entity against such information maintained by the
Commissioner in order to confirm (or not confirm) the validity
of the information provided;
(2) be scalable and accommodate reasonably anticipated
volumes of verification requests from permitted entities with
commercially reasonable uptime and availability; and
(3) allow permitted entities to submit--
(A) 1 or more individual requests electronically
for real-time machine-to-machine (or similar
functionality) accurate responses; and
(B) multiple requests electronically, such as those
provided in a batch format, for accurate electronic
responses within a reasonable period of time from
submission, not to exceed 24 hours.
(e) Certification Required.--Before providing confirmation of fraud
protection data to a permitted entity, the Commissioner shall ensure
that the Commissioner has a certification from the permitted entity
that is dated not more than 2 years before the date on which that
confirmation is provided that includes the following declarations:
(1) The entity is a permitted entity.
(2) The entity is in compliance with this section.
(3) The entity is, and will remain, in compliance with its
privacy and data security requirements, as described in title V
of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.), with
respect to information the entity receives from the
Commissioner pursuant to this section.
(4) The entity will retain sufficient records to
demonstrate its compliance with its certification and this
section for a period of not less than 2 years.
(f) Consumer Consent.--
(1) In general.--Notwithstanding any other provision of law
or regulation, a permitted entity may submit a request to the
database or similar resource described in subsection (c) only--
(A) pursuant to the written, including electronic,
consent received by a permitted entity from the
individual who is the subject of the request; and
(B) in connection with a credit transaction or any
circumstance described in section 604 of the Fair
Credit Reporting Act (15 U.S.C. 1681b).
(2) Electronic consent requirements.--For a permitted
entity to use the consent of an individual received
electronically pursuant to paragraph (1)(A), the permitted
entity must obtain the individual's electronic signature, as
defined in section 106 of the Electronic Signatures in Global
and National Commerce Act (15 U.S.C. 7006).
(3) Effectuating electronic consent.--No provision of law
or requirement, including section 552a of title 5, United
States Code, shall prevent the use of electronic consent for
purposes of this subsection or for use in any other consent
based verification under the discretion of the Commissioner.
(g) Compliance and Enforcement.--
(1) Audits and monitoring.--The Commissioner may--
(A) conduct audits and monitoring to--
(i) ensure proper use by permitted entities
of the database or similar resource described
in subsection (c); and
(ii) deter fraud and misuse by permitted
entities with respect to the database or
similar resource described in subsection (c);
and
(B) terminate services for any permitted entity
that prevents or refuses to allow the Commissioner to
carry out the activities described in subparagraph (A).
(2) Enforcement.--
(A) In general.--Notwithstanding any other
provision of law, including the matter preceding
paragraph (1) of section 505(a) of the Gramm-Leach-
Bliley Act (15 U.S.C. 6805(a)), any violation of this
section and any certification made under this section
shall be enforced in accordance with paragraphs (1)
through (7) of such section 505(a) by the agencies
described in those paragraphs.
(B) Relevant information.--Upon discovery by the
Commissioner, pursuant to an audit described in
paragraph (1), of any violation of this section or any
certification made under this section, the Commissioner
shall forward any relevant information pertaining to
that violation to the appropriate agency described in
subparagraph (A) for evaluation by the agency for
purposes of enforcing this section.
(h) Recovery of Costs.--
(1) In general.--
(A) In general.--Amounts obligated to carry out
this section shall be fully recovered from the users of
the database or verification system by way of advances,
reimbursements, user fees, or other recoveries as
determined by the Commissioner. The funds recovered
under this paragraph shall be deposited as an
offsetting collection to the account providing
appropriations for the Social Security Administration,
to be used for the administration of this section
without fiscal year limitation.
(B) Prices fixed by commissioner.--The Commissioner
shall establish the amount to be paid by the users
under this paragraph, including the costs of any
services or work performed, such as any appropriate
upgrades, maintenance, and associated direct and
indirect administrative costs, in support of carrying
out the purposes described in this section, by
reimbursement or in advance as determined by the
Commissioner. The amount of such prices shall be
periodically adjusted by the Commissioner to ensure
that amounts collected are sufficient to fully offset
the cost of the administration of this section.
(2) Initial development.--The Commissioner shall not begin
development of a verification system to carry out this section
until the Commissioner determines that amounts equal to at
least 50 percent of program start-up costs have been collected
under paragraph (1).
(3) Existing resources.--The Commissioner may use funds
designated for information technology modernization to carry
out this section.
(4) Annual report.--The Commissioner shall annually submit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report on the amount of indirect costs to the Social Security
Administration arising as a result of the implementation of
this section.
SEC. 216. TREASURY REPORT ON RISKS OF CYBER THREATS.
Not later than 1 year after the date of enactment of this Act, the
Secretary of the Treasury 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 on the risks of cyber
threats to financial institutions and capital markets in the United
States, including--
(1) an assessment of the material risks of cyber threats to
financial institutions and capital markets in the United
States;
(2) the impact and potential effects of material cyber
attacks on financial institutions and capital markets in the
United States;
(3) an analysis of how the appropriate Federal banking
agencies and the Securities and Exchange Commission are
addressing the material risks of cyber threats described in
paragraph (1), including--
(A) how the appropriate Federal banking agencies
and the Securities and Exchange Commission are
assessing those threats;
(B) how the appropriate Federal banking agencies
and the Securities and Exchange Commission are
assessing the cyber vulnerabilities and preparedness of
financial institutions;
(C) coordination amongst the appropriate Federal
banking agencies and the Securities and Exchange
Commission, and their coordination with other
government agencies (including with respect to
regulations, examinations, lexicon, duplication, and
other regulatory tools); and
(D) areas for improvement; and
(4) a recommendation of whether any appropriate Federal
banking agency or the Securities and Exchange Commission needs
additional legal authorities or resources to adequately assess
and address the material risks of cyber threats described in
paragraph (1), given the analysis required by paragraph (3).
SEC. 217. DISCRETIONARY SURPLUS FUNDS.
Section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C.
289(a)(3)(A)) is amended by striking ``$7,500,000,000'' and inserting
``$6,825,000,000''.
TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS
SEC. 301. PROTECTING CONSUMERS' CREDIT.
(a) In General.--Section 605A of the Fair Credit Reporting Act (15
U.S.C. 1681c-1) is amended--
(1) in subsection (a)(1)(A), by striking ``90 days'' and
inserting ``1 year''; and
(2) by adding at the end the following:
``(i) National Security Freeze.--
``(1) Definitions.--For purposes of this subsection:
``(A) The term `consumer reporting agency' means a
consumer reporting agency described in section 603(p).
``(B) The term `proper identification' has the
meaning of such term as used under section 610.
``(C) The term `security freeze' means a
restriction that prohibits a consumer reporting agency
from disclosing the contents of a consumer report that
is subject to such security freeze to any person
requesting the consumer report.
``(2) Placement of security freeze.--
``(A) In general.--Upon receiving a direct request
from a consumer that a consumer reporting agency place
a security freeze, and upon receiving proper
identification from the consumer, the consumer
reporting agency shall, free of charge, place the
security freeze not later than--
``(i) in the case of a request that is by
toll-free telephone or secure electronic means,
1 business day after receiving the request
directly from the consumer; or
``(ii) in the case of a request that is by
mail, 3 business days after receiving the
request directly from the consumer.
``(B) Confirmation and additional information.--Not
later than 5 business days after placing a security
freeze under subparagraph (A), a consumer reporting
agency shall--
``(i) send confirmation of the placement to
the consumer; and
``(ii) inform the consumer of--
``(I) the process by which the
consumer may remove the security
freeze, including a mechanism to
authenticate the consumer; and
``(II) the consumer's right
described in section 615(d)(1)(D).
``(C) Notice to third parties.--A consumer
reporting agency may advise a third party that a
security freeze has been placed with respect to a
consumer under subparagraph (A).
``(3) Removal of security freeze.--
``(A) In general.--A consumer reporting agency
shall remove a security freeze placed on the consumer
report of a consumer only in the following cases:
``(i) Upon the direct request of the
consumer.
``(ii) The security freeze was placed due
to a material misrepresentation of fact by the
consumer.
``(B) Notice if removal not by request.--If a
consumer reporting agency removes a security freeze
under subparagraph (A)(ii), the consumer reporting
agency shall notify the consumer in writing prior to
removing the security freeze.
``(C) Removal of security freeze by consumer
request.--Except as provided in subparagraph (A)(ii), a
security freeze shall remain in place until the
consumer directly requests that the security freeze be
removed. Upon receiving a direct request from a
consumer that a consumer reporting agency remove a
security freeze, and upon receiving proper
identification from the consumer, the consumer
reporting agency shall, free of charge, remove the
security freeze not later than--
``(i) in the case of a request that is by
toll-free telephone or secure electronic means,
1 hour after receiving the request for removal;
or
``(ii) in the case of a request that is by
mail, 3 business days after receiving the
request for removal.
``(D) Third-party requests.--If a third party
requests access to a consumer report of a consumer with
respect to which a security freeze is in effect, where
such request is in connection with an application for
credit, and the consumer does not allow such consumer
report to be accessed, the third party may treat the
application as incomplete.
``(E) Temporary removal of security freeze.--Upon
receiving a direct request from a consumer under
subparagraph (A)(i), if the consumer requests a
temporary removal of a security freeze, the consumer
reporting agency shall, in accordance with subparagraph
(C), remove the security freeze for the period of time
specified by the consumer.
``(4) Exceptions.--A security freeze shall not apply to the
making of a consumer report for use of the following:
``(A) A person or entity, or a subsidiary,
affiliate, or agent of that person or entity, or an
assignee of a financial obligation owed by the consumer
to that person or entity, or a prospective assignee of
a financial obligation owed by the consumer to that
person or entity in conjunction with the proposed
purchase of the financial obligation, with which the
consumer has or had prior to assignment an account or
contract including a demand deposit account, or to whom
the consumer issued a negotiable instrument, for the
purposes of reviewing the account or collecting the
financial obligation owed for the account, contract, or
negotiable instrument. For purposes of this
subparagraph, `reviewing the account' includes
activities related to account maintenance, monitoring,
credit line increases, and account upgrades and
enhancements.
``(B) Any Federal, State, or local agency, law
enforcement agency, trial court, or private collection
agency acting pursuant to a court order, warrant, or
subpoena.
``(C) A child support agency acting pursuant to
part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.).
``(D) A Federal agency or a State or its agents or
assigns acting to investigate fraud or acting to
investigate or collect delinquent taxes or unpaid court
orders or to fulfill any of its other statutory
responsibilities, provided such responsibilities are
consistent with a permissible purpose under section
604.
``(E) By a person using credit information for the
purposes described under section 604(c).
``(F) Any person or entity administering a credit
file monitoring subscription or similar service to
which the consumer has subscribed.
``(G) Any person or entity for the purpose of
providing a consumer with a copy of the consumer's
consumer report or credit score, upon the request of
the consumer.
``(H) Any person using the information in
connection with the underwriting of insurance.
``(I) Any person using the information for
employment, tenant, or background screening purposes.
``(J) Any person using the information for
assessing, verifying, or authenticating a consumer's
identity for purposes other than the granting of
credit, or for investigating or preventing actual or
potential fraud.
``(5) Notice of rights.--At any time a consumer is required
to receive a summary of rights required under section 609, the
following notice shall be included:
```Consumers Have the Right To Obtain a Security Freeze
```You have a right to place a ``security freeze'' on your credit
report, which will prohibit a consumer reporting agency from releasing
information in your credit report without your express authorization.
The security freeze is designed to prevent credit, loans, and services
from being approved in your name without your consent. However, you
should be aware that using a security freeze to take control over who
gets access to the personal and financial information in your credit
report may delay, interfere with, or prohibit the timely approval of
any subsequent request or application you make regarding a new loan,
credit, mortgage, or any other account involving the extension of
credit.
```As an alternative to a security freeze, you have the right to
place an initial or extended fraud alert on your credit file at no
cost. An initial fraud alert is a 1-year alert that is placed on a
consumer's credit file. Upon seeing a fraud alert display on a
consumer's credit file, a business is required to take steps to verify
the consumer's identity before extending new credit. If you are a
victim of identity theft, you are entitled to an extended fraud alert,
which is a fraud alert lasting 7 years.
```A security freeze does not apply to a person or entity, or its
affiliates, or collection agencies acting on behalf of the person or
entity, with which you have an existing account that requests
information in your credit report for the purposes of reviewing or
collecting the account. Reviewing the account includes activities
related to account maintenance, monitoring, credit line increases, and
account upgrades and enhancements.'.
``(6) Webpage.--
``(A) Consumer reporting agencies.--A consumer
reporting agency shall establish a webpage that--
``(i) allows a consumer to request a
security freeze;
``(ii) allows a consumer to request an
initial fraud alert;
``(iii) allows a consumer to request an
extended fraud alert;
``(iv) allows a consumer to request an
active duty fraud alert;
``(v) allows a consumer to opt-out of the
use of information in a consumer report to send
the consumer a solicitation of credit or
insurance, in accordance with section 615(d);
and
``(vi) shall not be the only mechanism by
which a consumer may request a security freeze.
``(B) FTC.--The Federal Trade Commission shall
establish a single webpage that includes a link to each
webpage established under subparagraph (A) within the
Federal Trade Commission's website
www.Identitytheft.gov, or a successor website.
``(j) National Protection for Files and Credit Records of Protected
Consumers.--
``(1) Definitions.--As used in this subsection:
``(A) The term `consumer reporting agency' means a
consumer reporting agency described in section 603(p).
``(B) The term `protected consumer' means an
individual who is--
``(i) under the age of 16 years at the time
a request for the placement of a security
freeze is made; or
``(ii) an incapacitated person or a
protected person for whom a guardian or
conservator has been appointed.
``(C) The term `protected consumer's
representative' means a person who provides to a
consumer reporting agency sufficient proof of authority
to act on behalf of a protected consumer.
``(D) The term `record' means a compilation of
information that--
``(i) identifies a protected consumer;
``(ii) is created by a consumer reporting
agency solely for the purpose of complying with
this subsection; and
``(iii) may not be created or used to
consider the protected consumer's credit
worthiness, credit standing, credit capacity,
character, general reputation, personal
characteristics, or mode of living.
``(E) The term `security freeze' means a
restriction that prohibits a consumer reporting agency
from disclosing the contents of a consumer report that
is the subject of such security freeze or, in the case
of a protected consumer for whom the consumer reporting
agency does not have a file, a record that is subject
to such security freeze to any person requesting the
consumer report for the purpose of opening a new
account involving the extension of credit.
``(F) The term `sufficient proof of authority'
means documentation that shows a protected consumer's
representative has authority to act on behalf of a
protected consumer and includes--
``(i) an order issued by a court of law;
``(ii) a lawfully executed and valid power
of attorney;
``(iii) a document issued by a Federal,
State, or local government agency in the United
States showing proof of parentage, including a
birth certificate; or
``(iv) with respect to a protected consumer
who has been placed in a foster care setting, a
written communication from a county welfare
department or its agent or designee, or a
county probation department or its agent or
designee, certifying that the protected
consumer is in a foster care setting under its
jurisdiction.
``(G) The term `sufficient proof of identification'
means information or documentation that identifies a
protected consumer and a protected consumer's
representative and includes--
``(i) a social security number or a copy of
a social security card issued by the Social
Security Administration;
``(ii) a certified or official copy of a
birth certificate issued by the entity
authorized to issue the birth certificate; or
``(iii) a copy of a driver's license, an
identification card issued by the motor vehicle
administration, or any other government issued
identification.
``(2) Placement of security freeze for a protected
consumer.--
``(A) In general.--Upon receiving a direct request
from a protected consumer's representative that a
consumer reporting agency place a security freeze, and
upon receiving sufficient proof of identification and
sufficient proof of authority, the consumer reporting
agency shall, free of charge, place the security freeze
not later than--
``(i) in the case of a request that is by
toll-free telephone or secure electronic means,
1 business day after receiving the request
directly from the protected consumer's
representative; or
``(ii) in the case of a request that is by
mail, 3 business days after receiving the
request directly from the protected consumer's
representative.
``(B) Confirmation and additional information.--Not
later than 5 business days after placing a security
freeze under subparagraph (A), a consumer reporting
agency shall--
``(i) send confirmation of the placement to
the protected consumer's representative; and
``(ii) inform the protected consumer's
representative of the process by which the
protected consumer may remove the security
freeze, including a mechanism to authenticate
the protected consumer's representative.
``(C) Creation of file.--If a consumer reporting
agency does not have a file pertaining to a protected
consumer when the consumer reporting agency receives a
direct request under subparagraph (A), the consumer
reporting agency shall create a record for the
protected consumer.
``(3) Prohibition on release of record or file of protected
consumer.--After a security freeze has been placed under
paragraph (2)(A), and unless the security freeze is removed in
accordance with this subsection, a consumer reporting agency
may not release the protected consumer's consumer report, any
information derived from the protected consumer's consumer
report, or any record created for the protected consumer.
``(4) Removal of a protected consumer security freeze.--
``(A) In general.--A consumer reporting agency
shall remove a security freeze placed on the consumer
report of a protected consumer only in the following
cases:
``(i) Upon the direct request of the
protected consumer's representative.
``(ii) Upon the direct request of the
protected consumer, if the protected consumer
is not under the age of 16 years at the time of
the request.
``(iii) The security freeze was placed due
to a material misrepresentation of fact by the
protected consumer's representative.
``(B) Notice if removal not by request.--If a
consumer reporting agency removes a security freeze
under subparagraph (A)(iii), the consumer reporting
agency shall notify the protected consumer's
representative in writing prior to removing the
security freeze.
``(C) Removal of freeze by request.--Except as
provided in subparagraph (A)(iii), a security freeze
shall remain in place until a protected consumer's
representative or protected consumer described in
subparagraph (A)(ii) directly requests that the
security freeze be removed. Upon receiving a direct
request from the protected consumer's representative or
protected consumer described in subparagraph (A)(ii)
that a consumer reporting agency remove a security
freeze, and upon receiving sufficient proof of
identification and sufficient proof of authority, the
consumer reporting agency shall, free of charge, remove
the security freeze not later than--
``(i) in the case of a request that is by
toll-free telephone or secure electronic means,
1 hour after receiving the request for removal;
or
``(ii) in the case of a request that is by
mail, 3 business days after receiving the
request for removal.
``(D) Temporary removal of security freeze.--Upon
receiving a direct request from a protected consumer or
a protected consumer's representative under
subparagraph (A)(i), if the protected consumer or
protected consumer's representative requests a
temporary removal of a security freeze, the consumer
reporting agency shall, in accordance with subparagraph
(C), remove the security freeze for the period of time
specified by the protected consumer or protected
consumer's representative.''.
(b) Conforming Amendment.--Section 625(b)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681t(b)(1)) is amended--
(1) in subparagraph (H), by striking ``or'' at the end; and
(2) by adding at the end the following:
``(J) subsections (i) and (j) of section 605A
relating to security freezes; or''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is 120 days after the date of enactment of this
Act.
SEC. 302. PROTECTING VETERANS' CREDIT.
(a) Purposes.--The purposes of this section are--
(1) to rectify problematic reporting of medical debt
included in a consumer report of a veteran due to inappropriate
or delayed payment for hospital care, medical services, or
extended care services provided in a non-Department of Veterans
Affairs facility under the laws administered by the Secretary
of Veterans Affairs; and
(2) to clarify the process of debt collection for such
medical debt.
(b) Amendments to Fair Credit Reporting Act.--
(1) Veteran's medical debt defined.--Section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a) is amended by
adding at the end the following:
``(z) Veteran.--The term `veteran' has the meaning given the term
in section 101 of title 38, United States Code.
``(aa) Veteran's Medical Debt.--The term `veteran's medical debt'--
``(1) means a medical collection debt of a veteran owed to
a non-Department of Veterans Affairs health care provider that
was submitted to the Department for payment for health care
authorized by the Department of Veterans Affairs; and
``(2) includes medical collection debt that the Department
of Veterans Affairs has wrongfully charged a veteran.''.
(2) Exclusion for veteran's medical debt.--Section 605(a)
of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is
amended by adding at the end the following:
``(7) With respect to a consumer reporting agency described
in section 603(p), any information related to a veteran's
medical debt if the date on which the hospital care, medical
services, or extended care services was rendered relating to
the debt antedates the report by less than 1 year if the
consumer reporting agency has actual knowledge that the
information is related to a veteran's medical debt and the
consumer reporting agency is in compliance with its obligation
under section 302(c)(5) of the Economic Growth, Regulatory
Relief, and Consumer Protection Act.
``(8) With respect to a consumer reporting agency described
in section 603(p), any information related to a fully paid or
settled veteran's medical debt that had been characterized as
delinquent, charged off, or in collection if the consumer
reporting agency has actual knowledge that the information is
related to a veteran's medical debt and the consumer reporting
agency is in compliance with its obligation under section
302(c)(5) of the Economic Growth, Regulatory Relief, and
Consumer Protection Act.''.
(3) Removal of veteran's medical debt from consumer
report.--Section 611 of the Fair Credit Reporting Act (15
U.S.C. 1681i) is amended--
(A) in subsection (a)(1)(A), by inserting ``and
except as provided in subsection (g)'' after
``subsection (f)''; and
(B) by adding at the end the following:
``(g) Dispute Process for Veteran's Medical Debt.--
``(1) In general.--With respect to a veteran's medical
debt, the veteran may submit a notice described in paragraph
(2), proof of liability of the Department of Veterans Affairs
for payment of that debt, or documentation that the Department
of Veterans Affairs is in the process of making payment for
authorized hospital care, medical services, or extended care
services rendered to a consumer reporting agency or a reseller
to dispute the inclusion of that debt on a consumer report of
the veteran.
``(2) Notification to veteran.--The Department of Veterans
Affairs shall submit to a veteran a notice that the Department
of Veterans Affairs has assumed liability for part or all of a
veteran's medical debt.
``(3) Deletion of information from file.--If a consumer
reporting agency receives notice, proof of liability, or
documentation under paragraph (1), the consumer reporting
agency shall delete all information relating to the veteran's
medical debt from the file of the veteran and notify the
furnisher and the veteran of that deletion.''.
(c) Verification of Veteran's Medical Debt.--
(1) Definitions.--For purposes of this subsection--
(A) the term ``consumer reporting agency'' means a
consumer reporting agency described in section 603(p)
of the Fair Credit Reporting Act (15 U.S.C. 1681a(p));
and
(B) the terms ``veteran'' and ``veteran's medical
debt'' have the meanings given those terms in section
603 of the Fair Credit Reporting Act (15 U.S.C. 1681a),
as added by subsection (b)(1).
(2) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Veterans Affairs shall
establish a database to allow consumer reporting agencies to
verify whether a debt furnished to a consumer reporting agency
is a veteran's medical debt.
(3) Database features.--The Secretary of Veterans Affairs
shall ensure that the database established under paragraph (2),
to the extent permitted by law, provides consumer reporting
agencies with--
(A) sufficiently detailed and specific information
to verify whether a debt being furnished to the
consumer reporting agency is a veteran's medical debt;
(B) access to verification information in a secure
electronic format;
(C) timely access to verification information; and
(D) any other features that would promote the
efficient, timely, and secure delivery of information
that consumer reporting agencies could use to verify
whether a debt is a veteran's medical debt.
(4) Stakeholder input.--Prior to establishing the database
for verification under paragraph (2), the Secretary of Veterans
Affairs shall publish in the Federal Register a notice and
request for comment that solicits input from consumer reporting
agencies and other stakeholders.
(5) Verification.--Provided the database established under
paragraph (2) is fully functional and the data available to
consumer reporting agencies, a consumer reporting agency shall
use the database as a means to identify a veteran's medical
debt pursuant to paragraphs (7) and (8) of section 605(a) of
the Fair Credit Reporting Act (15 U.S.C. 1681c(a)), as added by
subsection (b)(2).
(d) Credit Monitoring.--
(1) In general.--Section 605A of the Fair Credit Reporting
Act (15 U.S.C. 1681c-1), as amended by section 301(a), is
amended by adding at the end the following:
``(k) Credit Monitoring.--
``(1) Definitions.--In this subsection:
``(A) The term `active duty military consumer'
includes a member of the National Guard.
``(B) The term `National Guard' has the meaning
given the term in section 101(c) of title 10, United
States Code.
``(2) Credit monitoring.--A consumer reporting agency
described in section 603(p) shall provide a free electronic
credit monitoring service that, at a minimum, notifies a
consumer of material additions or modifications to the file of
the consumer at the consumer reporting agency to any consumer
who provides to the consumer reporting agency--
``(A) appropriate proof that the consumer is an
active duty military consumer; and
``(B) contact information of the consumer.
``(3) Rulemaking.--Not later than 1 year after the date of
enactment of this subsection, the Federal Trade Commission
shall promulgate regulations regarding the requirements of this
subsection, which shall at a minimum include--
``(A) a definition of an electronic credit
monitoring service and material additions or
modifications to the file of a consumer; and
``(B) what constitutes appropriate proof.
``(4) Applicability.--
``(A) Sections 616 and 617 shall not apply to any
violation of this subsection.
``(B) This subsection shall be enforced exclusively
under section 621 by the Federal agencies and Federal
and State officials identified in that section.''.
(2) Conforming amendment.--Section 625(b)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as amended by
section 301(b), is amended by adding at the end the following:
``(K) subsection (k) of section 605A, relating to
credit monitoring for active duty military consumers,
as defined in that subsection;''.
(e) Effective Date.--The amendments made by this section shall take
effect on the date that is 1 year after the date of enactment of this
Act.
SEC. 303. IMMUNITY FROM SUIT FOR DISCLOSURE OF FINANCIAL EXPLOITATION
OF SENIOR CITIZENS.
(a) Immunity.--
(1) Definitions.--In this section--
(A) the term ``Bank Secrecy Act officer'' means an
individual responsible for ensuring compliance with the
requirements mandated by subchapter II of chapter 53 of
title 31, United States Code (commonly known as the
``Bank Secrecy Act'');
(B) the term ``broker-dealer'' means a broker and a
dealer, as those terms are defined in section 3(a) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a));
(C) the term ``covered agency'' means--
(i) a State financial regulatory agency,
including a State securities or law enforcement
authority and a State insurance regulator;
(ii) each of the Federal agencies
represented in the membership of the Financial
Institutions Examination Council established
under section 1004 of the Federal Financial
Institutions Examination Council Act of 1978
(12 U.S.C. 3303);
(iii) a securities association registered
under section 15A of the Securities Exchange
Act of 1934 (15 U.S.C. 78o-3);
(iv) the Securities and Exchange
Commission;
(v) a law enforcement agency; or
(vi) a State or local agency responsible
for administering adult protective service
laws;
(D) the term ``covered financial institution''
means--
(i) a credit union;
(ii) a depository institution;
(iii) an investment adviser;
(iv) a broker-dealer;
(v) an insurance company;
(vi) an insurance agency; or
(vii) a transfer agent;
(E) the term ``credit union'' has the meaning given
the term in section 2 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5301);
(F) the term ``depository institution'' has the
meaning given the term in section 3(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(c));
(G) the term ``exploitation'' means the fraudulent
or otherwise illegal, unauthorized, or improper act or
process of an individual, including a caregiver or a
fiduciary, that--
(i) uses the resources of a senior citizen
for monetary or personal benefit, profit, or
gain; or
(ii) results in depriving a senior citizen
of rightful access to or use of benefits,
resources, belongings, or assets;
(H) the term ``insurance agency'' means any
business entity that sells, solicits, or negotiates
insurance coverage;
(I) the term ``insurance company'' has the meaning
given the term in section 2(a) of the Investment
Company Act of 1940 (15 U.S.C. 80a-2(a));
(J) the term ``insurance producer'' means an
individual who is required under State law to be
licensed in order to sell, solicit, or negotiate
insurance coverage;
(K) the term ``investment adviser'' has the meaning
given the term in section 202(a) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-2(a));
(L) the term ``investment adviser representative''
means an individual who--
(i) is employed by, or associated with, an
investment adviser; and
(ii) does not perform solely clerical or
ministerial acts;
(M) the term ``registered representative'' means an
individual who represents a broker-dealer in effecting
or attempting to effect a purchase or sale of
securities;
(N) the term ``senior citizen'' means an individual
who is not younger than 65 years of age;
(O) the term ``State'' means each of the several
States, the District of Columbia, and any territory or
possession of the United States;
(P) the term ``State insurance regulator'' has the
meaning given the term in section 315 of the Gramm-
Leach-Bliley Act (15 U.S.C. 6735);
(Q) the term ``State securities or law enforcement
authority'' has the meaning given the term in section
24(f)(4) of the Securities Exchange Act of 1934 (15
U.S.C. 78x(f)(4)); and
(R) the term ``transfer agent'' has the meaning
given the term in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).
(2) Immunity from suit.--
(A) Immunity for individuals.--An individual who
has received the training described in subsection (b)
shall not be liable, including in any civil or
administrative proceeding, for disclosing the suspected
exploitation of a senior citizen to a covered agency if
the individual, at the time of the disclosure--
(i) served as a supervisor or in a
compliance or legal function (including as a
Bank Secrecy Act officer) for, or, in the case
of a registered representative, investment
adviser representative, or insurance producer,
was affiliated or associated with, a covered
financial institution; and
(ii) made the disclosure--
(I) in good faith; and
(II) with reasonable care.
(B) Immunity for covered financial institutions.--A
covered financial institution shall not be liable,
including in any civil or administrative proceeding,
for a disclosure made by an individual described in
subparagraph (A) if--
(i) the individual was employed by, or, in
the case of a registered representative,
insurance producer, or investment adviser
representative, affiliated or associated with,
the covered financial institution at the time
of the disclosure; and
(ii) before the time of the disclosure,
each individual described in subsection (b)(1)
received the training described in subsection
(b).
(C) Rule of construction.--Nothing in subparagraph
(A) or (B) shall be construed to limit the liability of
an individual or a covered financial institution in a
civil action for any act, omission, or fraud that is
not a disclosure described in subparagraph (A).
(b) Training.--
(1) In general.--A covered financial institution or a third
party selected by a covered financial institution may provide
the training described in paragraph (2)(A) to each officer or
employee of, or registered representative, insurance producer,
or investment adviser representative affiliated or associated
with, the covered financial institution who--
(A) is described in subsection (a)(2)(A)(i);
(B) may come into contact with a senior citizen as
a regular part of the professional duties of the
individual; or
(C) may review or approve the financial documents,
records, or transactions of a senior citizen in
connection with providing financial services to a
senior citizen.
(2) Content.--
(A) In general.--The content of the training that a
covered financial institution or a third party selected
by the covered financial institution may provide under
paragraph (1) shall--
(i) be maintained by the covered financial
institution and made available to a covered
agency with examination authority over the
covered financial institution, upon request,
except that a covered financial institution
shall not be required to maintain or make
available such content with respect to any
individual who is no longer employed by, or
affiliated or associated with, the covered
financial institution;
(ii) instruct any individual attending the
training on how to identify and report the
suspected exploitation of a senior citizen
internally and, as appropriate, to government
officials or law enforcement authorities,
including common signs that indicate the
financial exploitation of a senior citizen;
(iii) discuss the need to protect the
privacy and respect the integrity of each
individual customer of the covered financial
institution; and
(iv) be appropriate to the job
responsibilities of the individual attending
the training.
(B) Timing.--The training under paragraph (1) shall
be provided--
(i) as soon as reasonably practicable; and
(ii) with respect to an individual who
begins employment, or becomes affiliated or
associated, with a covered financial
institution after the date of enactment of this
Act, not later than 1 year after the date on
which the individual becomes employed by, or
affiliated or associated with, the covered
financial institution in a position described
in subparagraph (A), (B), or (C) of paragraph
(1).
(C) Records.--A covered financial institution
shall--
(i) maintain a record of each individual
who--
(I) is employed by, or affiliated
or associated with, the covered
financial institution in a position
described in subparagraph (A), (B), or
(C) of paragraph (1); and
(II) has completed the training
under paragraph (1), regardless of
whether the training was--
(aa) provided by the
covered financial institution
or a third party selected by
the covered financial
institution;
(bb) completed before the
individual was employed by, or
affiliated or associated with,
the covered financial
institution; and
(cc) completed before, on,
or after the date of enactment
of this Act; and
(ii) upon request, provide a record
described in clause (i) to a covered agency
with examination authority over the covered
financial institution.
(c) Relationship to State Law.--Nothing in this section shall be
construed to preempt or limit any provision of State law, except only
to the extent that subsection (a) provides a greater level of
protection against liability to an individual described in subsection
(a)(2)(A) or to a covered financial institution described in subsection
(a)(2)(B) than is provided under State law.
SEC. 304. 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 the Protecting
Tenants at Foreclosure Act of 2009, the provisions of law amended by
such sections, and any regulations promulgated pursuant to such
sections, as were in effect on December 30, 2014, are restored and
revived.
(c) Effective Date.--Subsections (a) and (b) shall take effect on
the date that is 30 days after the date of enactment of this Act.
SEC. 305. REMEDIATING LEAD AND ASBESTOS HAZARDS.
Section 109(a)(1) of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5219(a)(1)) is amended, in the second sentence, by
inserting ``and to remediate lead and asbestos hazards in residential
properties'' before the period at the end.
SEC. 306. FAMILY SELF-SUFFICIENCY PROGRAM.
(a) In General.--Section 23 of the United States Housing Act of
1937 (42 U.S.C. 1437u) is amended--
(1) in subsection (a)--
(A) by striking ``public housing and''; and
(B) by striking ``the certificate and voucher
programs under section 8'' and inserting ``sections 8
and 9'';
(2) by amending subsection (b) to read as follows:
``(b) Continuation of Prior Required Programs.--
``(1) In general.--Each public housing agency that was
required to administer a local Family Self-Sufficiency program
on the date of enactment of the Economic Growth, Regulatory
Relief, and Consumer Protection Act shall operate such local
program for, at a minimum, the number of families the agency
was required to serve on the date of enactment of such Act,
subject only to the availability under appropriations Acts of
sufficient amounts for housing assistance and the requirements
of paragraph (2).
``(2) Reduction.--The number of families for which a public
housing agency is required to operate such local program under
paragraph (1) shall be decreased by 1 for each family from any
supported rental housing program administered by such agency
that, after October 21, 1998, fulfills its obligations under
the contract of participation.
``(3) Exception.--The Secretary shall not require a public
housing agency to carry out a mandatory program for a period of
time upon the request of the public housing agency and upon a
determination by the Secretary that implementation is not
feasible because of local circumstances, which may include--
``(A) lack of supportive services accessible to
eligible families, which shall include insufficient
availability of resources for programs under title I of
the Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.);
``(B) lack of funding for reasonable administrative
costs;
``(C) lack of cooperation by other units of State
or local government; or
``(D) any other circumstances that the Secretary
may consider appropriate.'';
(3) by striking subsection (i);
(4) by redesignating subsections (c), (d), (e), (f), (g),
and (h) as subsections (d), (e), (f), (g), (h), and (i)
respectively;
(5) by inserting after subsection (b), as amended, the
following:
``(c) Eligibility.--
``(1) Eligible families.--A family is eligible to
participate in a local Family Self-Sufficiency program under
this section if--
``(A) at least 1 household member seeks to become
and remain employed in suitable employment or to
increase earnings; and
``(B) the household member receives direct
assistance under section 8 or resides in a unit
assisted under section 8 or 9.
``(2) Eligible entities.--The following entities are
eligible to administer a local Family Self-Sufficiency program
under this section:
``(A) A public housing agency administering housing
assistance to or on behalf of an eligible family under
section 8 or 9.
``(B) The owner or sponsor of a multifamily
property receiving project-based rental assistance
under section 8, in accordance with the requirements
under subsection (l).'';
(6) in subsection (d), as so redesignated--
(A) in paragraph (1)--
(i) by striking ``public housing agency''
the first time it appears and inserting
``eligible entity'';
(ii) in the first sentence, by striking
``each leaseholder receiving assistance under
the certificate and voucher programs of the
public housing agency under section 8 or
residing in public housing administered by the
agency'' and inserting ``a household member of
an eligible family''; and
(iii) by striking the third sentence and
inserting the following: ``Housing assistance
may not be terminated as a consequence of
either successful completion of the contract of
participation or failure to complete such
contract. A contract of participation shall
remain in effect until the participating family
exits the Family Self-Sufficiency program upon
successful graduation or expiration of the
contract of participation, or for other good
cause.'';
(B) in paragraph (2)--
(i) in the matter preceding subparagraph
(A)--
(I) in the first sentence--
(aa) by striking ``A local
program under this section''
and inserting ``An eligible
entity'';
(bb) by striking
``provide'' and inserting
``coordinate''; and
(cc) by striking ``to'' and
inserting ``for''; and
(II) in the second sentence--
(aa) by striking ``provided
during'' and inserting
``coordinated for'';
(bb) by striking ``under
section 8 or residing in public
housing'' and inserting
``pursuant to section 8 or 9
and for the duration of the
contract of participation'';
and
(cc) by inserting ``, but
are not limited to'' after
``may include'';
(ii) in subparagraph (D), by inserting ``or
attainment of a high school equivalency
certificate'' after ``high school'';
(iii) by striking subparagraph (G);
(iv) by redesignating subparagraphs (E),
(F), and (J) as subparagraphs (F), (G), and (K)
respectively;
(v) by inserting after subparagraph (D) the
following:
``(E) education in pursuit of a post-secondary
degree or certification;'';
(vi) in subparagraph (H), by inserting
``financial literacy, such as training in
financial management, financial coaching, and
asset building, and'' after ``training in'';
(vii) in subparagraph (I), by striking
``and'' at the end; and
(viii) by inserting after subparagraph (I)
the following:
``(J) homeownership education and assistance;
and''; and
(C) in paragraph (3)--
(i) in the first sentence, by inserting
``the first recertification of income after''
after ``not later than 5 years after''; and
(ii) in the second sentence--
(I) by striking ``public housing
agency'' and inserting ``eligible
entity''; and
(II) by striking ``of the agency'';
(D) by amending paragraph (4) to read as follows:
``(4) Employment.--The contract of participation shall
require 1 household member of the participating family to seek
and maintain suitable employment.''; and
(E) by adding at the end the following:
``(5) Nonparticipation.--Assistance under section 8 or 9
for a family that elects not to participate in a Family Self-
Sufficiency program shall not be delayed by reason of such
election.'';
(7) in subsection (e), as so redesignated--
(A) in paragraph (1), by striking ``whose monthly
adjusted income does not exceed 50 percent'' and all
that follows through the period at the end of the third
sentence and inserting ``shall be calculated under the
rental provisions of section 3 or section 8(o), as
applicable.'';
(B) in paragraph (2)--
(i) by striking the first sentence and
inserting the following: ``For each
participating family, an amount equal to any
increase in the amount of rent paid by the
family in accordance with the provisions of
section 3 or 8(o), as applicable, that is
attributable to increases in earned income by
the participating family, shall be placed in an
interest-bearing escrow account established by
the eligible entity on behalf of the
participating family. Notwithstanding any other
provision of law, an eligible entity may use
funds it controls under section 8 or 9 for
purposes of making the escrow deposit for
participating families assisted under, or
residing in units assisted under, section 8 or
9, respectively, provided such funds are offset
by the increase in the amount of rent paid by
the participating family.'';
(ii) by striking the second sentence and
inserting the following: ``All Family Self-
Sufficiency programs administered under this
section shall include an escrow account.'';
(iii) in the fourth sentence, by striking
``subsection (c)'' and inserting ``subsection
(d)''; and
(iv) in the last sentence--
(I) by striking ``A public housing
agency'' and inserting ``An eligible
entity''; and
(II) by striking ``the public
housing agency'' and inserting ``such
eligible entity''; and
(C) by amending paragraph (3) to read as follows:
``(3) Forfeited escrow.--Any amount placed in an escrow
account established by an eligible entity for a participating
family as required under paragraph (2), that exists after the
end of a contract of participation by a household member of a
participating family that does not qualify to receive the
escrow, shall be used by the eligible entity for the benefit of
participating families in good standing.'';
(8) in subsection (f), as so redesignated, by striking ``,
unless the income of the family equals or exceeds 80 percent of
the median income of the area (as determined by the Secretary
with adjustments for smaller and larger families)'';
(9) in subsection (g), as so redesignated--
(A) in paragraph (1)--
(i) by striking ``public housing agency''
and inserting ``eligible entity'';
(ii) by striking ``the public housing
agency'' and inserting ``such eligible
entity''; and
(iii) by striking ``subsection (g)'' and
inserting ``subsection (h)''; and
(B) in paragraph (2)--
(i) by striking ``public housing agency''
and inserting ``eligible entity'' each place
that term appears;
(ii) by striking ``or the Job Opportunities
and Basic Skills Training Program under part F
of title IV of the Social Security Act'';
(iii) by inserting ``primary, secondary,
and post-secondary'' after ``public and
private''; and
(iv) in the second sentence, by inserting
``and tenants served by the program'' after
``the unit of general local government'';
(10) in subsection (h), as so redesignated--
(A) in paragraph (1)--
(i) by striking ``public housing agency''
and inserting ``eligible entity'';
(ii) by striking ``participating in the''
and inserting ``carrying out a''; and
(iii) by striking ``to the Secretary'';
(B) in paragraph (2)--
(i) by striking ``public housing agency''
and inserting ``eligible entity'';
(ii) by striking ``subsection (f)'' and
inserting ``subsection (g)'';
(iii) by striking ``residents of the public
housing'' and inserting ``the current and
prospective participants of the program''; and
(iv) by striking ``or the Job Opportunities
and Basic Skills Training Program under part F
of title IV of the Social Security Act''; and
(C) in paragraph (3)--
(i) in subparagraph (C)--
(I) by striking ``subsection
(c)(2)'' and inserting ``subsection
(d)(2)'';
(II) by striking ``provided to''
and inserting ``coordinated on behalf
of participating'';
(III) by inserting ``direct''
before ``assistance''; and
(IV) by striking ``the section 8
and public housing programs'' and
inserting ``sections 8 and 9'';
(ii) in subparagraph (D)--
(I) by striking ``subsection (d)''
and inserting ``subsection (e)''; and
(II) by striking ``public housing
agency'' and inserting ``eligible
entity'';
(iii) in subparagraph (E), by striking
``deliver'' and inserting ``coordinate'';
(iv) in subparagraph (H), by striking ``the
Job Opportunities and Basic Skills Training
Program under part F of title IV of the Social
Security Act and''; and
(v) in subparagraph (I), by striking
``public housing or section 8 assistance'' and
inserting ``assistance under section 8 or 9'';
(11) by amending subsection (i), as so redesignated, to
read as follows:
``(i) Family Self-Sufficiency Awards.--
``(1) In general.--Subject to appropriations, the Secretary
shall establish a formula by which annual funds shall be
awarded or as otherwise determined by the Secretary for the
costs incurred by an eligible entity in administering the
Family Self-Sufficiency program under this section.
``(2) Eligibility for awards.--The award established under
paragraph (1) shall provide funding for family self-sufficiency
coordinators as follows:
``(A) Base award.--An eligible entity serving 25 or
more participants in the Family Self-Sufficiency
program under this section is eligible to receive an
award equal to the costs, as determined by the
Secretary, of 1 full-time family self-sufficiency
coordinator position. The Secretary may, by regulation
or notice, determine the policy concerning the award
for an eligible entity serving fewer than 25 such
participants, including providing prorated awards or
allowing such entities to combine their programs under
this section for purposes of employing a coordinator.
``(B) Additional award.--An eligible entity that
meets performance standards set by the Secretary is
eligible to receive an additional award sufficient to
cover the costs of filling an additional family self-
sufficiency coordinator position if such entity has 75
or more participating families, and an additional
coordinator for each additional 50 participating
families, or such other ratio as may be established by
the Secretary based on the award allocation evaluation
under subparagraph (E).
``(C) State and regional agencies.--For purposes of
calculating the award under this paragraph, each
administratively distinct part of a State or regional
eligible entity may be treated as a separate agency.
``(D) Determination of number of coordinators.--In
determining whether an eligible entity meets a specific
threshold for funding pursuant to this paragraph, the
Secretary shall consider the number of participants
enrolled by the eligible entity in its Family Self-
Sufficiency program as well as other criteria
determined by the Secretary.
``(E) Award allocation evaluation.--The Secretary
shall submit to Congress a report evaluating the award
allocation under this subsection, and make
recommendations based on this evaluation and other
related findings to modify such allocation, within 4
years after the date of enactment of the Economic
Growth, Regulatory Relief, and Consumer Protection Act,
and not less frequently than every 4 years thereafter.
The report requirement under this subparagraph shall
terminate after the Secretary has submitted 2 such
reports to Congress.
``(3) Renewals and allocation.--
``(A) In general.--Funds allocated by the Secretary
under this subsection shall be allocated in the
following order of priority:
``(i) First priority.--Renewal of the full
cost of all coordinators in the previous year
at each eligible entity with an existing Family
Self-Sufficiency program that meets applicable
performance standards set by the Secretary.
``(ii) Second priority.--New or incremental
coordinator funding authorized under this
section.
``(B) Guidance.--If the first priority, as
described in subparagraph (A)(i), cannot be fully
satisfied, the Secretary may prorate the funding for
each eligible entity, as long as--
``(i) each eligible entity that has
received funding for at least 1 part-time
coordinator in the prior fiscal year is
provided sufficient funding for at least 1
part-time coordinator as part of any such
proration; and
``(ii) each eligible entity that has
received funding for at least 1 full-time
coordinator in the prior fiscal year is
provided sufficient funding for at least 1
full-time coordinator as part of any such
proration.
``(4) Recapture or offset.--Any awards allocated under this
subsection by the Secretary in a fiscal year that have not been
spent by the end of the subsequent fiscal year or such other
time period as determined by the Secretary may be recaptured by
the Secretary and shall be available for providing additional
awards pursuant to paragraph (2)(B), or may be offset as
determined by the Secretary. Funds appropriated pursuant to
this section shall remain available for 3 years in order to
facilitate the re-use of any recaptured funds for this purpose.
``(5) Performance reporting.--Programs under this section
shall be required to report the number of families enrolled and
graduated, the number of established escrow accounts and
positive escrow balances, and any other information that the
Secretary may require. Program performance shall be reviewed
periodically as determined by the Secretary.
``(6) Incentives for innovation and high performance.--The
Secretary may reserve up to 5 percent of the amounts made
available under this subsection to provide support to or reward
Family Self-Sufficiency programs based on the rate of
successful completion, increased earned income, or other
factors as may be established by the Secretary.'';
(12) in subsection (j)--
(A) by striking ``public housing agency'' and
inserting ``eligible entity'';
(B) by striking ``public housing'' before
``units'';
(C) by striking ``in public housing projects
administered by the agency'';
(D) by inserting ``or coordination'' after
``provision''; and
(E) by striking the last sentence;
(13) in subsection (k), by striking ``public housing
agencies'' and inserting ``eligible entities'';
(14) by striking subsection (n);
(15) by striking subsection (o);
(16) by redesignating subsections (l) and (m) as
subsections (m) and (n), respectively;
(17) by inserting after subsection (k) the following:
``(l) Programs for Tenants in Privately Owned Properties With
Project-Based Assistance.--
``(1) Voluntary availability of fss program.--The owner of
a privately owned property may voluntarily make a Family Self-
Sufficiency program available to the tenants of such property
in accordance with procedures established by the Secretary.
Such procedures shall permit the owner to enter into a
cooperative agreement with a local public housing agency that
administers a Family Self-Sufficiency program or, at the
owner's option, operate a Family Self-Sufficiency program on
its own or in partnership with another owner. An owner, who
voluntarily makes a Family Self-Sufficiency program available
pursuant to this subsection, may access funding from any
residual receipt accounts for the property to hire a family
self-sufficiency coordinator or coordinators for their program.
``(2) Cooperative agreement.--Any cooperative agreement
entered into pursuant to paragraph (1) shall require the public
housing agency to open its Family Self-Sufficiency program
waiting list to any eligible family residing in the owner's
property who resides in a unit assisted under project-based
rental assistance.
``(3) Treatment of families assisted under this
subsection.--A public housing agency that enters into a
cooperative agreement pursuant to paragraph (1) may count any
family participating in its Family Self-Sufficiency program as
a result of such agreement as part of the calculation of the
award under subsection (i).
``(4) Escrow.--
``(A) Cooperative agreement.--A cooperative
agreement entered into pursuant to paragraph (1) shall
provide for the calculation and tracking of the escrow
for participating residents and for the owner to make
available, upon request of the public housing agency,
escrow for participating residents, in accordance with
paragraphs (2) and (3) of subsection (e), residing in
units assisted under section 8.
``(B) Calculation and tracking by owner.--The owner
of a privately owned property who voluntarily makes a
Family Self-Sufficiency program available pursuant to
paragraph (1) shall calculate and track the escrow for
participating residents and make escrow for
participating residents available in accordance with
paragraphs (2) and (3) of subsection (e).
``(5) Exception.--This subsection shall not apply to
properties assisted under section 8(o)(13).
``(6) Suspension of enrollment.--In any year, the Secretary
may suspend the enrollment of new families in Family Self-
Sufficiency programs under this subsection based on a
determination that insufficient funding is available for this
purpose.'';
(18) in subsection (m), as so redesignated--
(A) in paragraph (1)--
(i) in the first sentence, by striking
``Each public housing agency'' and inserting
``Each eligible entity'';
(ii) in the second sentence, by striking
``The report shall include'' and inserting
``The contents of the report shall include'';
and
(iii) in subparagraph (D)--
(I) by striking ``public housing
agency'' and inserting ``eligible
entity''; and
(II) by striking ``local''; and
(B) in paragraph (2), by inserting ``and describing
any additional research needs of the Secretary to
evaluate the effectiveness of the program'' after
``under paragraph (1)'';
(19) in subsection (n), as so redesignated, by striking
``may'' and inserting ``shall''; and
(20) by adding at the end the following:
``(o) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means an
entity that meets the requirements under subsection (c)(2) to
administer a Family Self-Sufficiency program under this
section.
``(2) Eligible family.--The term `eligible family' means a
family that meets the requirements under subsection (c)(1) to
participate in the Family Self-Sufficiency program under this
section.
``(3) Participating family.--The term `participating
family' means an eligible family that is participating in the
Family Self-Sufficiency program under this section.''.
(b) Effective Date.--Not later than 360 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development
shall issue regulations to implement this section and any amendments
made by this section, and this section and any amendments made by this
section shall take effect upon such issuance.
SEC. 307. PROPERTY ASSESSED CLEAN ENERGY FINANCING.
Section 129C(b)(3) of the Truth in Lending Act (15 U.S.C.
1639c(b)(3)) is amended by adding at the end the following:
``(C) Consideration of underwriting requirements
for property assessed clean energy financing.--
``(i) Definition.--In this subparagraph,
the term `Property Assessed Clean Energy
financing' means financing to cover the costs
of home improvements that results in a tax
assessment on the real property of the
consumer.
``(ii) Regulations.--The Bureau shall
prescribe regulations that carry out the
purposes of subsection (a) and apply section
130 with respect to violations under subsection
(a) of this section with respect to Property
Assessed Clean Energy financing, which shall
account for the unique nature of Property
Assessed Clean Energy financing.
``(iii) Collection of information and
consultation.--In prescribing the regulations
under this subparagraph, the Bureau--
``(I) may collect such information
and data that the Bureau determines is
necessary; and
``(II) shall consult with State and
local governments and bond-issuing
authorities.''.
SEC. 308. GAO REPORT ON CONSUMER REPORTING AGENCIES.
(a) Definitions.--In this section, the terms ``consumer'',
``consumer report'', and ``consumer reporting agency'' have the
meanings given those terms in section 603 of the Fair Credit Reporting
Act (15 U.S.C. 1681a).
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States 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
comprehensive report that includes--
(1) a review of the current legal and regulatory structure
for consumer reporting agencies and an analysis of any gaps in
that structure, including, in particular, the rulemaking,
supervisory, and enforcement authority of State and Federal
agencies under the Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), the Gramm-Leach-Bliley Act (Public Law 106-102; 113
Stat. 1338), and any other relevant statutes;
(2) a review of the process by which consumers can appeal
and expunge errors on their consumer reports;
(3) a review of the causes of consumer reporting errors;
(4) a review of the responsibilities of data furnishers to
ensure that accurate information is initially reported to
consumer reporting agencies and to ensure that such information
continues to be accurate;
(5) a review of data security relating to consumer
reporting agencies and their efforts to safeguard consumer
data;
(6) a review of who has access to, and may use, consumer
reports;
(7) a review of who has control or ownership of a
consumer's credit data;
(8) an analysis of--
(A) which Federal and State regulatory agencies
supervise and enforce laws relating to how consumer
reporting agencies protect consumer data; and
(B) all laws relating to data security applicable
to consumer reporting agencies; and
(9) recommendations to Congress on how to improve the
consumer reporting system, including legislative, regulatory,
and industry-specific recommendations.
SEC. 309. PROTECTING VETERANS FROM PREDATORY LENDING.
(a) Protecting Veterans From Predatory Lending.--
(1) In general.--Subchapter I of chapter 37 of title 38,
United States Code, is amended by adding at the end the
following new section:
``Sec. 3709. Refinancing of housing loans
``(a) Fee Recoupment.--Except as provided in subsection (d) and
notwithstanding section 3703 of this title or any other provision of
law, a loan to a veteran for a purpose specified in section 3710 of
this title that is being refinanced may not be guaranteed or insured
under this chapter unless--
``(1) the issuer of the refinanced loan provides the
Secretary with a certification of the recoupment period for
fees, closing costs, and any expenses (other than taxes,
amounts held in escrow, and fees paid under this chapter) that
would be incurred by the borrower in the refinancing of the
loan;
``(2) all of the fees and incurred costs are scheduled to
be recouped on or before the date that is 36 months after the
date of loan issuance; and
``(3) the recoupment is calculated through lower regular
monthly payments (other than taxes, amounts held in escrow, and
fees paid under this chapter) as a result of the refinanced
loan.
``(b) Net Tangible Benefit Test.--Except as provided in subsection
(d) and notwithstanding section 3703 of this title or any other
provision of law, a loan to a veteran for a purpose specified in
section 3710 of this title that is refinanced may not be guaranteed or
insured under this chapter unless--
``(1) the issuer of the refinanced loan provides the
borrower with a net tangible benefit test;
``(2) in a case in which the original loan had a fixed rate
mortgage interest rate and the refinanced loan will have a
fixed rate mortgage interest rate, the refinanced loan has a
mortgage interest rate that is not less than 50 basis points
less than the previous loan;
``(3) in a case in which the original loan had a fixed rate
mortgage interest rate and the refinanced loan will have an
adjustable rate mortgage interest rate, the refinanced loan has
a mortgage interest rate that is not less than 200 basis points
less than the previous loan; and
``(4) the lower interest rate is not produced solely from
discount points, unless--
``(A) such points are paid at closing; and
``(B) such points are not added to the principal
loan amount, unless--
``(i) for discount point amounts that are
less than or equal to one discount point, the
resulting loan balance after any fees and
expenses allows the property with respect to
which the loan was issued to maintain a loan to
value ratio of 100 percent or less; and
``(ii) for discount point amounts that are
greater than one discount point, the resulting
loan balance after any fees and expenses allows
the property with respect to which the loan was
issued to maintain a loan to value ratio of 90
percent or less.
``(c) Loan Seasoning.--Except as provided in subsection (d) and
notwithstanding section 3703 of this title or any other provision of
law, a loan to a veteran for a purpose specified in section 3710 of
this title that is refinanced may not be guaranteed or insured under
this chapter until the date that is the later of--
``(1) the date that is 210 days after the date on which the
first monthly payment is made on the loan; and
``(2) the date on which the sixth monthly payment is made
on the loan.
``(d) Cash-out Refinances.--(1) Subsections (a) through (c) shall
not apply in a case of a loan refinancing in which the amount of the
principal for the new loan to be guaranteed or insured under this
chapter is larger than the payoff amount of the refinanced loan.
``(2) Not later than 180 days after the date of the enactment of
this section, the Secretary shall promulgate such rules as the
Secretary considers appropriate with respect to refinancing described
in paragraph (1) to ensure that such refinancing is in the financial
interest of the borrower, including rules relating to recoupment,
seasoning, and net tangible benefits.''.
(2) Regulations.--
(A) In general.--In prescribing any regulation to
carry out section 3709 of title 38, United States Code,
as added by paragraph (1), the Secretary of Veterans
Affairs may waive the requirements of sections 551
through 559 of title 5, United States Code, if--
(i) the Secretary determines that urgent or
compelling circumstances make compliance with
such requirements impracticable or contrary to
the public interest;
(ii) the Secretary submits to the Committee
on Veterans' Affairs of the Senate and the
Committee on Veterans' Affairs of the House of
Representatives, and publishes in the Federal
Register, notice of such waiver, including a
description of the determination made under
clause (i); and
(iii) a period of 10 days elapses following
the notification under clause (ii).
(B) Public notice and comment.--If a regulation
prescribed pursuant to a waiver made under subparagraph
(A) is in effect for a period exceeding 1 year, the
Secretary shall provide the public an opportunity for
notice and comment regarding such regulation.
(C) Effective date.--This paragraph shall take
effect on the date of the enactment of this Act.
(D) Termination date.--The authorities under this
paragraph shall terminate on the date that is 1 year
after the date of the enactment of this Act.
(3) Report on cash-out refinances.--
(A) In general.--Not later than 1 year after the
date of the enactment of this Act, the Secretary shall,
in consultation with the President of the Ginnie Mae,
submit to Congress a report on refinancing--
(i) of loans--
(I) made to veterans for purposes
specified in section 3710 of title 38,
United States Code; and
(II) that were guaranteed or
insured under chapter 37 of such title;
and
(ii) in which the amount of the principal
for the new loan to be guaranteed or insured
under such chapter is larger than the payoff
amount of the refinanced loan.
(B) Contents.--The report required by subparagraph
(A) shall include the following:
(i) An assessment of whether additional
requirements, including a net tangible benefit
test, fee recoupment period, and loan seasoning
requirement, are necessary to ensure that the
refinancing described in subparagraph (A) is in
the financial interest of the borrower.
(ii) Such recommendations as the Secretary
may have for additional legislative or
administrative action to ensure that
refinancing described in subparagraph (A) is
carried out in the financial interest of the
borrower.
(4) Clerical amendment.--The table of sections at the
beginning of chapter 37 of title 38, United States Code, is
amended by inserting after the item relating to section 3709
the following new item:
``3709. Refinancing of housing loans.''.
(b) Loan Seasoning for Ginnie Mae Mortgage-backed Securities.--
Section 306(g)(1) of the National Housing Act (12 U.S.C. 1721(g)(1)) is
amended by inserting ``The Association may not guarantee the timely
payment of principal and interest on a security that is backed by a
mortgage insured or guaranteed under chapter 37 of title 38, United
States Code, and that was refinanced until the later of the date that
is 210 days after the date on which the first monthly payment is made
on the mortgage being refinanced and the date on which 6 full monthly
payments have been made on the mortgage being refinanced.'' after ``Act
of 1992.''.
(c) Report on Liquidity of the Department of Veterans Affairs
Housing Loan Program.--
(1) Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Housing and Urban
Development and the President of the Ginnie Mae shall submit to
the appropriate committees of Congress a report on the
liquidity of the housing loan program under chapter 37 of title
38, United States Code, in the secondary mortgage market, which
shall--
(A) assess the loans provided under that chapter
that collateralize mortgage-backed securities that are
guaranteed by Ginnie Mae; and
(B) include recommendations for actions that Ginnie
Mae should take to ensure that the liquidity of that
housing loan program is maintained.
(2) Definitions.--In this subsection:
(A) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(i) the Committee on Veterans' Affairs and
the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(ii) the Committee on Veterans' Affairs and
the Committee on Financial Services of the
House of Representatives.
(B) Ginnie mae.--The term ``Ginnie Mae'' means the
Government National Mortgage Association.
(d) Annual Report on Document Disclosure and Consumer Education.--
Not less frequently than once each year, the Secretary of Veterans
Affairs shall issue a publicly available report that--
(1) examines, with respect to loans provided to veterans
under chapter 37 of title 38, United States Code--
(A) the refinancing of fixed-rate mortgage loans to
adjustable rate mortgage loans;
(B) whether veterans are informed of the risks and
disclosures associated with that refinancing; and
(C) whether advertising materials for that
refinancing are clear and do not contain misleading
statements or assertions; and
(2) includes findings based on any complaints received by
veterans and on an ongoing assessment of the refinancing market
by the Secretary.
SEC. 310. CREDIT SCORE COMPETITION.
(a) Use of Credit Scores by Fannie Mae in Purchasing Residential
Mortgages.--Section 302(b) of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1717(b)) is amended by adding at the end the
following:
``(7)(A) Definitions.--In this paragraph--
``(i) the term `credit score' means a numerical value or a
categorization created by a third party derived from a
statistical tool or modeling system used by a person who makes
or arranges a loan to predict the likelihood of certain credit
behaviors, including default; and
``(ii) the term `residential mortgage' has the meaning
given the term in section 302 of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451).
``(B) Use of Credit Scores.--The corporation shall condition
purchase of a residential mortgage by the corporation under this
subsection on the provision of a credit score for the borrower only
if--
``(i) the credit score is derived from any credit scoring
model that has been validated and approved by the corporation
under this paragraph; and
``(ii) the corporation provides for the use of the credit
score by all of the automated underwriting systems of the
corporation and any other procedures and systems used by the
corporation to purchase residential mortgages that use a credit
score.
``(C) Validation and Approval Process.--The corporation shall
establish a validation and approval process for the use of credit score
models, under which the corporation may not validate and approve a
credit score model unless the credit score model--
``(i) satisfies minimum requirements of integrity,
reliability, and accuracy;
``(ii) has a historical record of measuring and predicting
default rates and other credit behaviors;
``(iii) is consistent with the safe and sound operation of
the corporation;
``(iv) complies with any standards and criteria established
by the Director of the Federal Housing Finance Agency under
section 1328(1) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992; and
``(v) satisfies any other requirements, as determined by
the corporation.
``(D) Replacement of Credit Score Model.--If the corporation has
validated and approved 1 or more credit score models under subparagraph
(C) and the corporation validates and approves an additional credit
score model, the corporation may determine that--
``(i) the additional credit score model has replaced the
credit score model or credit score models previously validated
and approved; and
``(ii) the credit score model or credit score models
previously validated and approved shall no longer be considered
validated and approved for the purposes of subparagraph (B).
``(E) Public Disclosure.--Upon establishing the validation and
approval process required under subparagraph (C), the corporation shall
make publicly available a description of the validation and approval
process.
``(F) Application.--Not later than 30 days after the effective date
of this paragraph, the corporation shall solicit applications from
developers of credit scoring models for the validation and approval of
those models under the process required under subparagraph (C).
``(G) Timeframe for Determination; Notice.--
``(i) In general.--The corporation shall make a
determination with respect to any application submitted under
subparagraph (F), and provide notice of that determination to
the applicant, before a date established by the corporation
that is not later than 180 days after the date on which an
application is submitted to the corporation.
``(ii) Extensions.--The Director of the Federal Housing
Finance Agency may authorize not more than 2 extensions of the
date established under clause (i), each of which shall not
exceed 30 days, upon a written request and a showing of good
cause by the corporation.
``(iii) Status notice.--The corporation shall provide
notice to an applicant regarding the status of an application
submitted under subparagraph (F) not later than 60 days after
the date on which the application was submitted to the
corporation.
``(iv) Reasons for disapproval.--If an application
submitted under subparagraph (F) is disapproved, the
corporation shall provide to the applicant the reasons for the
disapproval not later than 30 days after a determination is
made under this subparagraph.
``(H) Authority of Director.--If the corporation elects to use a
credit score model under this paragraph, the Director of the Federal
Housing Finance Agency shall require the corporation to periodically
review the validation and approval process required under subparagraph
(C) as the Director determines necessary to ensure that the process
remains appropriate and adequate and complies with any standards and
criteria established pursuant to section 1328(1) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992.
``(I) Extension.--If, as of the effective date of this paragraph, a
credit score model has not been approved under subparagraph (C), the
corporation may use a credit score model that was in use before the
effective date of this paragraph, if necessary to prevent substantial
market disruptions, until the earlier of--
``(i) the date on which a credit score model is validated
and approved under subparagraph (C); or
``(ii) the date that is 2 years after the effective date of
this paragraph.''.
(b) Use of Credit Scores by Freddie Mac in Purchasing Residential
Mortgages.--Section 305 of the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454) is amended by adding at the end the following:
``(d)(1) Definition.--In this subsection, the term `credit score'
means a numerical value or a categorization created by a third party
derived from a statistical tool or modeling system used by a person who
makes or arranges a loan to predict the likelihood of certain credit
behaviors, including default.
``(2) Use of Credit Scores.--The Corporation shall condition
purchase of a residential mortgage by the Corporation under this
section on the provision of a credit score for the borrower only if--
``(A) the credit score is derived from any credit scoring
model that has been validated and approved by the Corporation
under this subsection; and
``(B) the Corporation provides for the use of the credit
score by all of the automated underwriting systems of the
Corporation and any other procedures and systems used by the
Corporation to purchase residential mortgages that use a credit
score.
``(3) Validation and Approval Process.--The Corporation shall
establish a validation and approval process for the use of credit score
models, under which the Corporation may not validate and approve a
credit score model unless the credit score model--
``(A) satisfies minimum requirements of integrity,
reliability, and accuracy;
``(B) has a historical record of measuring and predicting
default rates and other credit behaviors;
``(C) is consistent with the safe and sound operation of
the corporation;
``(D) complies with any standards and criteria established
by the Director of the Federal Housing Finance Agency under
section 1328(1) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992; and
``(E) satisfies any other requirements, as determined by
the Corporation.
``(4) Replacement of Credit Score Model.--If the Corporation has
validated and approved 1 or more credit score models under paragraph
(3) and the Corporation validates and approves an additional credit
score model, the Corporation may determine that--
``(A) the additional credit score model has replaced the
credit score model or credit score models previously validated
and approved; and
``(B) the credit score model or credit score models
previously validated and approved shall no longer be considered
validated and approved for the purposes of paragraph (2).
``(5) Public Disclosure.--Upon establishing the validation and
approval process required under paragraph (3), the Corporation shall
make publicly available a description of the validation and approval
process.
``(6) Application.--Not later than 30 days after the effective date
of this subsection, the Corporation shall solicit applications from
developers of credit scoring models for the validation and approval of
those models under the process required under paragraph (3).
``(7) Timeframe for Determination; Notice.--
``(A) In general.--The Corporation shall make a
determination with respect to any application submitted under
paragraph (6), and provide notice of that determination to the
applicant, before a date established by the Corporation that is
not later than 180 days after the date on which an application
is submitted to the Corporation.
``(B) Extensions.--The Director of the Federal Housing
Finance Agency may authorize not more than 2 extensions of the
date established under subparagraph (A), each of which shall
not exceed 30 days, upon a written request and a showing of
good cause by the Corporation.
``(C) Status notice.--The Corporation shall provide notice
to an applicant regarding the status of an application
submitted under paragraph (6) not later than 60 days after the
date on which the application was submitted to the Corporation.
``(D) Reasons for disapproval.--If an application submitted
under paragraph (6) is disapproved, the Corporation shall
provide to the applicant the reasons for the disapproval not
later than 30 days after a determination is made under this
paragraph.
``(8) Authority of Director.--If the Corporation elects to use a
credit score under this subsection, the Director of the Federal Housing
Finance Agency shall require the Corporation to periodically review the
validation and approval process required under paragraph (3) as the
Director determines necessary to ensure that the process remains
appropriate and adequate and complies with any standards and criteria
established pursuant to section 1328(1) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992.
``(9) Extension.--If, as of the effective date of this subsection,
a credit score model has not been approved under paragraph (3), the
Corporation may use a credit score model that was in use before the
effective date of this subsection, if necessary to prevent substantial
market disruptions, until the earlier of--
``(A) the date on which a credit score model is validated
and approved under paragraph (3); or
``(B) the date that is 2 years after the effective date of
this subsection.''.
(c) Authority of the Director.--Subpart A of part 2 of subtitle A
of the Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4541 et seq.) is amended by adding at the end the
following:
``SEC. 1328. REGULATIONS FOR USE OF CREDIT SCORES.
``The Director shall--
``(1) by regulation, establish standards and criteria for
any process used by an enterprise to validate and approve
credit scoring models pursuant to section 302(b)(7) of the
Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(7)) and section 305(d) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(d)); and
``(2) ensure that any credit scoring model that is
validated and approved by an enterprise under section 302(b)(7)
(12 U.S.C. 1717(b)(7)) of the Federal National Mortgage
Association Charter Act or section 305(d) of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1454(d)) meets the
requirements of clauses (i), (ii), and (iii) of section
302(b)(7)(C) of the Federal National Mortgage Association
Charter Act and subparagraphs (A), (B), and (C) of section
305(d)(3) of the Federal Home Loan Mortgage Corporation Act,
respectively.''.
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on the date that is 180 days after the date of
enactment of this Act.
SEC. 311. GAO REPORT ON PUERTO RICO FORECLOSURES.
Not earlier than 1 year after the date of enactment of this Act,
the Comptroller General of the United States 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 on foreclosures in the Commonwealth of Puerto Rico, including--
(1) the rate of foreclosures in the Commonwealth of Puerto
Rico before and after Hurricane Maria;
(2) the rate of return for housing developers in the
Commonwealth of Puerto Rico before and after Hurricane Maria;
(3) the rate of delinquency in the Commonwealth of Puerto
Rico before and after Hurricane Maria;
(4) the rate of homeownership in the Commonwealth of Puerto
Rico before and after Hurricane Maria; and
(5) the rate of defaults on federally insured mortgages in
the Commonwealth of Puerto Rico before and after Hurricane
Maria.
SEC. 312. REPORT ON CHILDREN'S LEAD-BASED PAINT HAZARD PREVENTION AND
ABATEMENT.
(a) Definitions.--In this section--
(1) the term ``Department'' means the Department of Housing
and Urban Development; and
(2) the term ``public housing agency'' has the meaning
given the term in section 3(b) of the United States Housing Act
of 1937 (42 U.S.C. 1437a(b)).
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Housing and Urban Development shall submit
to Congress a report that includes--
(1) an overview of existing policies and enforcement of the
Department, including public outreach, relating to lead-based
paint hazard prevention and abatement;
(2) recommendations and best practices for the Department,
public housing agencies, and landlords for improving lead-based
paint hazard prevention standards and Federal lead prevention
and abatement policies to protect the environmental health and
safety of children, including within housing receiving
assistance from or occupied by families receiving housing
assistance from the Department; and
(3) recommendations for legislation to improve lead-based
paint hazard prevention and abatement.
SEC. 313. FORECLOSURE RELIEF AND EXTENSION FOR SERVICEMEMBERS.
Section 710(d) of the Honoring America's Veterans and Caring for
Camp Lejeune Families Act of 2012 (Public Law 112-154; 50 U.S.C. 3953
note) is amended by striking paragraphs (1) and (3).
TITLE IV--TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES
SEC. 401. ENHANCED SUPERVISION AND PRUDENTIAL STANDARDS FOR CERTAIN
BANK HOLDING COMPANIES.
(a) In General.--Section 165 of the Financial Stability Act of 2010
(12 U.S.C. 5365) is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``$50,000,000,000'' and
inserting ``$250,000,000,000''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking
``may'' and inserting ``shall'';
(ii) in subparagraph (B), by striking
``$50,000,000,000'' and inserting ``the
applicable threshold''; and
(iii) by adding at the end the following:
``(C) Risks to financial stability and safety and
soundness.--The Board of Governors may by order or rule
promulgated pursuant to section 553 of title 5, United
States Code, apply any prudential standard established
under this section to any bank holding company or bank
holding companies with total consolidated assets equal
to or greater than $100,000,000,000 to which the
prudential standard does not otherwise apply provided
that the Board of Governors--
``(i) determines that application of the
prudential standard is appropriate--
``(I) to prevent or mitigate risks
to the financial stability of the
United States, as described in
paragraph (1); or
``(II) to promote the safety and
soundness of the bank holding company
or bank holding companies; and
``(ii) takes into consideration the bank
holding company's or bank holding companies'
capital structure, riskiness, complexity,
financial activities (including financial
activities of subsidiaries), size, and any
other risk-related factors that the Board of
Governors deems appropriate.'';
(2) in subsection (b)(1)--
(A) in subparagraph (A)(iv), by striking ``and
credit exposure report''; and
(B) in subparagraph (B)(ii), by inserting ``,
including credit exposure reports'' before the
semicolon at the end;
(3) in subsection (d)(2), in the matter preceding
subparagraph (A), by striking ``shall'' and inserting ``may'';
(4) in subsection (h)(2), by striking ``$10,000,000,000''
each place that term appears and inserting ``$50,000,000,000'';
(5) in subsection (i)--
(A) in paragraph (1)(B)(i)--
(i) by striking ``3'' and inserting ``2'';
and
(ii) by striking ``, adverse,''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the first sentence, by
striking ``semiannual'' and inserting
``periodic''; and
(II) in the second sentence--
(aa) by striking
``$10,000,000,000'' and
inserting ``$250,000,000,000'';
and
(bb) by striking ``annual''
and inserting ``periodic''; and
(ii) in subparagraph (C)(ii)--
(I) by striking ``3'' and inserting
``2''; and
(II) by striking ``, adverse,'';
and
(6) in subsection (j)(1), in the first sentence, by
striking ``$50,000,000,000'' and inserting
``$250,000,000,000''.
(b) Rule of Construction.--Nothing in subsection (a) shall be
construed to limit--
(1) the authority of the Board of Governors of the Federal
Reserve System, in prescribing prudential standards under
section 165 of the Financial Stability Act of 2010 (12 U.S.C.
5365) or any other law, to tailor or differentiate among
companies on an individual basis or by category, taking into
consideration their capital structure, riskiness, complexity,
financial activities (including financial activities of their
subsidiaries), size, and any other risk-related factors that
the Board of Governors deems appropriate; or
(2) the supervisory, regulatory, or enforcement authority
of an appropriate Federal banking agency to further the safe
and sound operation of an institution under the supervision of
the appropriate Federal banking agency.
(c) Technical and Conforming Amendments.--
(1) Financial stability act of 2010.--The Financial
Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended--
(A) in section 115(a)(2)(B) (12 U.S.C.
5325(a)(2)(B)), by striking ``$50,000,000,000'' and
inserting ``the applicable threshold'';
(B) in section 116(a) (12 U.S.C. 5326(a)), in the
matter preceding paragraph (1), by striking
``$50,000,000,000'' and inserting ``$250,000,000,000'';
(C) in section 121(a) (12 U.S.C. 5331(a)), in the
matter preceding paragraph (1), by striking
``$50,000,000,000'' and inserting ``$250,000,000,000'';
(D) in section 155(d) (12 U.S.C. 5345(d)), by
striking ``50,000,000,000'' and inserting
``$250,000,000,000'';
(E) in section 163(b) (12 U.S.C. 5363(b)), by
striking ``$50,000,000,000'' each place that term
appears and inserting ``$250,000,000,000''; and
(F) in section 164 (12 U.S.C. 5364), by striking
``$50,000,000,000'' and inserting ``$250,000,000,000''.
(2) Federal reserve act.--The second subsection (s)
(relating to assessments) of section 11 of the Federal Reserve
Act (12 U.S.C. 248(s)) is amended--
(A) in paragraph (2)--
(i) in subparagraph (A), by striking
``$50,000,000,000'' and inserting
``$100,000,000,000''; and
(ii) in subparagraph (B), by striking
``$50,000,000,000'' and inserting
``$100,000,000,000''; and
(B) by adding at the end the following:
``(3) Tailoring assessments.--In collecting assessments,
fees, or other charges under paragraph (1) from each company
described in paragraph (2) with total consolidated assets of
between $100,000,000,000 and $250,000,000,000, the Board shall
adjust the amount charged to reflect any changes in supervisory
and regulatory responsibilities resulting from the Economic
Growth, Regulatory Relief, and Consumer Protection Act with
respect to each such company.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
that is 18 months after the date of enactment of this Act.
(2) Exception.--Notwithstanding paragraph (1), the
amendments made by this section shall take effect on the date
of enactment of this Act with respect to any bank holding
company with total consolidated assets of less than
$100,000,000,000.
(3) Additional authority.--Before the effective date
described in paragraph (1), the Board of Governors of the
Federal Reserve System may by order exempt any bank holding
company with total consolidated assets of less than
$250,000,000,000 from any prudential standard under section 165
of the Financial Stability Act of 2010 (12 U.S.C. 5365).
(4) Rule of construction.--Nothing in this section shall be
construed to prohibit the Board of Governors of the Federal
Reserve System from issuing an order or rule making under
section 165(a)(2)(C) of the Financial Stability Act of 2010 (12
U.S.C. 5365(a)(2)(C)), as added by this section, before the
effective date described in paragraph (1).
(e) Supervisory Stress Test.--Beginning on the effective date
described in subsection (d)(1), the Board of Governors of the Federal
Reserve System shall, on a periodic basis, conduct supervisory stress
tests of bank holding companies with total consolidated assets equal to
or greater than $100,000,000,000 and total consolidated assets of less
than $250,000,000,000 to evaluate whether such bank holding companies
have the capital, on a total consolidated basis, necessary to absorb
losses as a result of adverse economic conditions.
(f) Global Systemically Important Bank Holding Companies.--Any bank
holding company, regardless of asset size, that has been identified as
a global systemically important BHC under section 217.402 of title 12,
Code of Federal Regulations, shall be considered a bank holding company
with total consolidated assets equal to or greater than
$250,000,000,000 with respect to the application of standards or
requirements under--
(1) this section;
(2) sections 116(a), 121(a), 155(d), 163(b), 164, and 165
of the Financial Stability Act of 2010 (12 U.S.C. 5326(a),
5331(a), 5345(d), 5363(b), 5364, 5365); and
(3) paragraph (2)(A) of the second subsection (s) (relating
to assessments) of section 11 of the Federal Reserve Act (12
U.S.C. 248(s)(2)).
(g) Clarification for Foreign Banks.--Nothing in this section shall
be construed to--
(1) affect the legal effect of the final rule of the Board
of Governors of the Federal Reserve System entitled ``Enhanced
Prudential Standards for Bank Holding Companies and Foreign
Banking Organizations'' (79 Fed. Reg. 17240 (March 27, 2014))
as applied to foreign banking organizations with total
consolidated assets equal to or greater than $100,000,000,000;
or
(2) limit the authority of the Board of Governors of the
Federal Reserve System to require the establishment of an
intermediate holding company under, implement enhanced
prudential standards with respect to, or tailor the regulation
of a foreign banking organization with total consolidated
assets equal to or greater than $100,000,000,000.
SEC. 402. SUPPLEMENTARY LEVERAGE RATIO FOR CUSTODIAL BANKS.
(a) Definition.--In this section, the term ``custodial bank'' means
any depository institution holding company predominantly engaged in
custody, safekeeping, and asset servicing activities, including any
insured depository institution subsidiary of such a holding company.
(b) Regulations.--
(1) Definition.--In this subsection, the term ``central
bank'' means--
(A) the Federal Reserve System;
(B) the European Central Bank; and
(C) central banks of member countries of the
Organisation for Economic Co-operation and Development,
if--
(i) the member country has been assigned a
zero percent risk weight under sections 3.32,
217.32, and 324.32 of title 12, Code of Federal
Regulations, or any successor regulation; and
(ii) the sovereign debt of such member
country is not in default or has not been in
default during the previous 5 years.
(2) Regulations.--The appropriate Federal banking agencies
shall promulgate regulations to amend sections 3.10, 217.10,
and 324.10 of title 12, Code of Federal Regulations, to specify
that--
(A) subject to subparagraph (B), funds of a
custodial bank that are deposited with a central bank
shall not be taken into account when calculating the
supplementary leverage ratio as applied to the
custodial bank; and
(B) with respect to the funds described in
subparagraph (A), any amount that exceeds the total
value of deposits of the custodial bank that are linked
to fiduciary or custodial and safekeeping accounts
shall be taken into account when calculating the
supplementary leverage ratio as applied to the
custodial bank.
(c) Rule of Construction.--Nothing in subsection (b) shall be
construed to limit the authority of the appropriate Federal banking
agencies to tailor or adjust the supplementary leverage ratio or any
other leverage ratio for any company that is not a custodial bank.
SEC. 403. TREATMENT OF CERTAIN MUNICIPAL OBLIGATIONS.
(a) In General.--Section 18 of the Federal Deposit Insurance Act
(12 U.S.C. 1828) is amended--
(1) by moving subsection (z) so that it appears after
subsection (y); and
(2) by adding at the end the following:
``(aa) Treatment of Certain Municipal Obligations.--
``(1) Definitions.--In this subsection--
``(A) the term `investment grade', with respect to
an obligation, has the meaning given the term in
section 1.2 of title 12, Code of Federal Regulations,
or any successor thereto;
``(B) the term `liquid and readily-marketable' has
the meaning given the term in section 249.3 of title
12, Code of Federal Regulations, or any successor
thereto; and
``(C) the term `municipal obligation' means an
obligation of--
``(i) a State or any political subdivision
thereof; or
``(ii) any agency or instrumentality of a
State or any political subdivision thereof.
``(2) Municipal obligations.--For purposes of the final
rule entitled `Liquidity Coverage Ratio: Liquidity Risk
Measurement Standards' (79 Fed. Reg. 61439 (October 10, 2014)),
the final rule entitled `Liquidity Coverage Ratio: Treatment of
U.S. Municipal Securities as High-Quality Liquid Assets' (81
Fed. Reg. 21223 (April 11, 2016)), and any other regulation
that incorporates a definition of the term `high-quality liquid
asset' or another substantially similar term, the appropriate
Federal banking agencies shall treat a municipal obligation as
a high-quality liquid asset that is a level 2B liquid asset if
that obligation is, as of the date of calculation--
``(A) liquid and readily-marketable; and
``(B) investment grade.''.
(b) Amendment to Liquidity Coverage Ratio Regulations.--Not later
than 90 days after the date of enactment of this Act, the Federal
Deposit Insurance Corporation, the Board of Governors of the Federal
Reserve System, and the Comptroller of the Currency shall amend the
final rule entitled ``Liquidity Coverage Ratio: Liquidity Risk
Measurement Standards'' (79 Fed. Reg. 61439 (October 10, 2014)) and the
final rule entitled ``Liquidity Coverage Ratio: Treatment of U.S.
Municipal Securities as High-Quality Liquid Assets'' (81 Fed. Reg.
21223 (April 11, 2016)) to implement the amendments made by this
section.
TITLE V--ENCOURAGING CAPITAL FORMATION
SEC. 501. NATIONAL SECURITIES EXCHANGE REGULATORY PARITY.
Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C.
77r(b)(1)) is amended--
(1) by striking subparagraph (A);
(2) in subparagraph (B)--
(A) by inserting ``a security designated as
qualified for trading in the national market system
pursuant to section 11A(a)(2) of the Securities
Exchange Act of 1934 (15 U.S.C. 78k-1(a)(2)) that is''
before ``listed''; and
(B) by striking ``that has listing standards that
the Commission determines by rule (on its own
initiative or on the basis of a petition) are
substantially similar to the listing standards
applicable to securities described in subparagraph
(A)'';
(3) in subparagraph (C), by striking ``or (B)''; and
(4) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
SEC. 502. SEC STUDY ON ALGORITHMIC TRADING.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the staff of the Securities and Exchange
Commission 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 on the risks and benefits of
algorithmic trading in capital markets in the United States.
(b) Matters Required To Be Included.--The matters covered by the
report required by subsection (a) shall include the following:
(1) An assessment of the effect of algorithmic trading in
equity and debt markets in the United States on the provision
of liquidity in stressed and normal market conditions.
(2) An assessment of the benefits and risks to equity and
debt markets in the United States by algorithmic trading.
(3) An analysis of whether the activity of algorithmic
trading and entities that engage in algorithmic trading are
subject to appropriate Federal supervision and regulation.
(4) A recommendation of whether--
(A) based on the analysis described in paragraphs
(1), (2), and (3), any changes should be made to
regulations; and
(B) the Securities and Exchange Commission needs
additional legal authorities or resources to effect the
changes described in subparagraph (A).
SEC. 503. ANNUAL REVIEW OF GOVERNMENT-BUSINESS FORUM ON CAPITAL
FORMATION.
Section 503 of the Small Business Investment Incentive Act of 1980
(15 U.S.C. 80c-1) is amended by adding at the end the following:
``(e) The Commission shall--
``(1) review the findings and recommendations of the forum;
and
``(2) each time the forum submits a finding or
recommendation to the Commission, promptly issue a public
statement--
``(A) assessing the finding or recommendation of
the forum; and
``(B) disclosing the action, if any, the Commission
intends to take with respect to the finding or
recommendation.''.
SEC. 504. SUPPORTING AMERICA'S INNOVATORS.
Section 3(c)(1) of the Investment Company Act of 1940 (15 U.S.C.
80a-3(c)(1)) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``(or, in the case of a qualifying venture capital fund, 250
persons)'' after ``one hundred persons''; and
(2) by adding at the end the following:
``(C)(i) The term `qualifying venture capital fund'
means a venture capital fund that has not more than
$10,000,000 in aggregate capital contributions and
uncalled committed capital, with such dollar amount to
be indexed for inflation once every 5 years by the
Commission, beginning from a measurement made by the
Commission on a date selected by the Commission,
rounded to the nearest $1,000,000.
``(ii) The term `venture capital fund' has the
meaning given the term in section 275.203(l)-1 of title
17, Code of Federal Regulations, or any successor
regulation.''.
SEC. 505. SECURITIES AND EXCHANGE COMMISSION OVERPAYMENT CREDIT.
(a) Definitions.--In this section--
(1) the term ``Commission'' means the Securities and
Exchange Commission;
(2) the term ``national securities association'' means an
association that is registered under section 15A of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-3); and
(3) the term ``national securities exchange'' means an
exchange that is registered as a national securities exchange
under section 6 of the Securities Exchange Act of 1934 (15
U.S.C. 78f).
(b) Credit for Overpayment of Fees.--Notwithstanding section 31(j)
of the Securities Exchange Act of 1934 (15 U.S.C. 78ee(j)), and subject
to subsection (c) of this section, if a national securities exchange or
a national securities association has paid fees and assessments to the
Commission in an amount that is more than the amount that the exchange
or association was required to pay under section 31 of the Securities
Exchange Act of 1934 (15 U.S.C. 78ee) and, not later than 10 years
after the date of such payment, the exchange or association informs the
Commission about the payment of such excess amount, the Commission
shall offset future fees and assessments due by that exchange or
association in an amount that is equal to the difference between the
amount that the exchange or association paid and the amount that the
exchange or association was required to pay under such section 31.
(c) Applicability.--Subsection (b) shall apply only to fees and
assessments that a national securities exchange or a national
securities association was required to pay to the Commission before the
date of enactment of this Act.
SEC. 506. U.S. TERRITORIES INVESTOR PROTECTION.
(a) In General.--Section 6(a) of the Investment Company Act of 1940
(15 U.S.C. 80a-6(a)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively.
(b) Effective Date and Safe Harbor.--
(1) Effective date.--Except as provided in paragraph (2),
the amendment made by subsection (a) shall take effect on the
date of enactment of this Act.
(2) Safe harbor.--With respect to a company that is exempt
under section 6(a)(1) of the Investment Company Act of 1940 (15
U.S.C. 80a-6(a)(1)) on the day before the date of enactment of
this Act, the amendment made by subsection (a) shall take
effect on the date that is 3 years after the date of enactment
of this Act.
(3) Extension of safe harbor.--The Securities and Exchange
Commission, by rule or regulation upon its own motion, or by
order upon application, may conditionally or unconditionally,
under section 6(c) of the Investment Company Act of 1940 (15
U.S.C. 80a-6(c)), further delay the effective date for a
company described in paragraph (2) for a maximum of 3 years
following the initial 3-year period if, before the end of the
initial 3-year period, the Commission determines that such a
rule, regulation, motion, or order is necessary or appropriate
in the public interest and for the protection of investors.
SEC. 507. ENCOURAGING EMPLOYEE OWNERSHIP.
Not later than 60 days after the date of the enactment of this Act,
the Securities and Exchange Commission shall revise section 230.701(e)
of title 17, Code of Federal Regulations, so as to increase from
$5,000,000 to $10,000,000 the aggregate sales price or amount of
securities sold during any consecutive 12-month period in excess of
which the issuer is required under such section to deliver an
additional disclosure to investors. The Commission shall index for
inflation such aggregate sales price or amount every 5 years to reflect
the change in the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics, rounding to the nearest
$1,000,000.
SEC. 508. IMPROVING ACCESS TO CAPITAL.
The Securities and Exchange Commission shall amend--
(1) section 230.251 of title 17, Code of Federal
Regulations, to remove the requirement that the issuer not be
subject to section 13 or 15(d) of the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) immediately before the
offering; and
(2) section 230.257 of title 17, Code of Federal
Regulations, with respect to an offering described in section
230.251(a)(2) of title 17, Code of Federal Regulations, to deem
any issuer that is subject to section 13 or 15(d) of the
Securities Exchange Act of 1934 as having met the periodic and
current reporting requirements of section 230.257 of title 17,
Code of Federal Regulations, if such issuer meets the reporting
requirements of section 13 of the Securities Exchange Act of
1934.
SEC. 509. PARITY FOR CLOSED-END COMPANIES REGARDING OFFERING AND PROXY
RULES.
(a) Revision to Rules.--Not later than the end of the 1-year period
beginning on the date of enactment of this Act, the Securities and
Exchange Commission shall propose and, not later than 2 years after the
date of enactment of this Act, the Securities and Exchange Commission
shall finalize any rules, as appropriate, to allow any closed-end
company, as defined in section 5(a)(2) of the Investment Company Act of
1940 (15 U.S.C. 80a-5), that is registered as an investment company
under such Act, and is listed on a national securities exchange or that
makes periodic repurchase offers pursuant to section 270.23c-3 of title
17, Code of Federal Regulations, to use the securities offering and
proxy rules, subject to conditions the Commission determines
appropriate, that are available to other issuers that are required to
file reports under section 13 or section 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. 78m; 78o(d)). Any action that the
Commission takes pursuant to this subsection shall consider the
availability of information to investors, including what disclosures
constitute adequate information to be designated as a ``well-known
seasoned issuer''.
(b) Treatment if Revisions Not Completed in a Timely Manner.--If
the Commission fails to complete the revisions required by subsection
(a) by the time required by such subsection, any registered closed-end
company that is listed on a national securities exchange or that makes
periodic repurchase offers pursuant to section 270.23c-3 of title 17,
Code of Federal Regulations, shall be deemed to be an eligible issuer
under the final rule of the Commission titled ``Securities Offering
Reform'' (70 Fed. Reg. 44722; published August 3, 2005).
(c) Rules of Construction.--
(1) No effect on rule 482.--Nothing in this section or the
amendments made by this section shall be construed to impair or
limit in any way a registered closed-end company from using
section 230.482 of title 17, Code of Federal Regulations, to
distribute sales material.
(2) References.--Any reference in this section to a section
of title 17, Code of Federal Regulations, or to any form or
schedule means such rule, section, form, or schedule, or any
successor to any such rule, section, form, or schedule.
TITLE VI--PROTECTIONS FOR STUDENT BORROWERS
SEC. 601. PROTECTIONS IN THE EVENT OF DEATH OR BANKRUPTCY.
(a) In General.--Section 140 of the Truth in Lending Act (15 U.S.C.
1650) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1) through (8) as
paragraphs (2) through (9), respectively; and
(B) by inserting before paragraph (2), as so
redesignated, the following:
``(1) the term `cosigner'--
``(A) means any individual who is liable for the
obligation of another without compensation, regardless
of how designated in the contract or instrument with
respect to that obligation, other than an obligation
under a private education loan extended to consolidate
a consumer's pre-existing private education loans;
``(B) includes any person the signature of which is
requested as condition to grant credit or to forbear on
collection; and
``(C) does not include a spouse of an individual
described in subparagraph (A), the signature of whom is
needed to perfect the security interest in a loan.'';
and
(2) by adding at the end the following:
``(g) Additional Protections Relating to Borrower or Cosigner of a
Private Education Loan.--
``(1) Prohibition on automatic default in case of death or
bankruptcy of non-student obligor.--With respect to a private
education loan involving a student obligor and 1 or more
cosigners, the creditor shall not declare a default or
accelerate the debt against the student obligor on the sole
basis of a bankruptcy or death of a cosigner.
``(2) Cosigner release in case of death of borrower.--
``(A) Release of cosigner.--The holder of a private
education loan, when notified of the death of a student
obligor, shall release within a reasonable timeframe
any cosigner from the obligations of the cosigner under
the private education loan.
``(B) Notification of release.--A holder or
servicer of a private education loan, as applicable,
shall within a reasonable time-frame notify any
cosigners for the private education loan if a cosigner
is released from the obligations of the cosigner for
the private education loan under this paragraph.
``(C) Designation of individual to act on behalf of
the borrower.--Any lender that extends a private
education loan shall provide the student obligor an
option to designate an individual to have the legal
authority to act on behalf of the student obligor with
respect to the private education loan in the event of
the death of the student obligor.''.
(b) Applicability.--The amendments made by subsection (a) shall
only apply to private education loan agreements entered into on or
after the date that is 180 days after the date of enactment of this
Act.
SEC. 602. REHABILITATION OF PRIVATE EDUCATION LOANS.
(a) In General.--Section 623(a)(1) of the Fair Credit Reporting Act
(15 U.S.C. 1681s-2(a)(1)) is amended by adding at the end the
following:
``(E) Rehabilitation of private education loans.--
``(i) In general.--Notwithstanding any
other provision of this section, a consumer may
request a financial institution to remove from
a consumer report a reported default regarding
a private education loan, and such information
shall not be considered inaccurate, if--
``(I) the financial institution
chooses to offer a loan rehabilitation
program which includes, without
limitation, a requirement of the
consumer to make consecutive on-time
monthly payments in a number that
demonstrates, in the assessment of the
financial institution offering the loan
rehabilitation program, a renewed
ability and willingness to repay the
loan; and
``(II) the requirements of the loan
rehabilitation program described in
subclause (I) are successfully met.
``(ii) Banking agencies.--
``(I) In general.--If a financial
institution is supervised by a Federal
banking agency, the financial
institution shall seek written approval
concerning the terms and conditions of
the loan rehabilitation program
described in clause (i) from the
appropriate Federal banking agency.
``(II) Feedback.--An appropriate
Federal banking agency shall provide
feedback to a financial institution
within 120 days of a request for
approval under subclause (I).
``(iii) Limitation.--
``(I) In general.--A consumer may
obtain the benefits available under
this subsection with respect to
rehabilitating a loan only 1 time per
loan.
``(II) Rule of construction.--
Nothing in this subparagraph may be
construed to require a financial
institution to offer a loan
rehabilitation program or to remove any
reported default from a consumer report
as a consideration of a loan
rehabilitation program, except as
described in clause (i).
``(iv) Definitions.--For purposes of this
subparagraph--
``(I) the term `appropriate Federal
banking agency' has the meaning given
the term in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813);
and
``(II) the term `private education
loan' has the meaning given the term in
section 140(a) of the Truth in Lending
Act (15 U.S.C. 1650(a)).''.
(b) GAO Study.--
(1) Study.--The Comptroller General of the United States
shall conduct a study, in consultation with the appropriate
Federal banking agencies, regarding--
(A) the implementation of subparagraph (E) of
section 623(a)(1) of the Fair Credit Reporting Act (15
U.S.C. 1681s-2(a)(1)) (referred to in this paragraph as
``the provision''), as added by subsection (a);
(B) the estimated operational, compliance, and
reporting costs associated with the requirements of the
provision;
(C) the effects of the requirements of the
provision on the accuracy of credit reporting;
(D) the risks to safety and soundness, if any,
created by the loan rehabilitation programs described
in the provision; and
(E) a review of the effectiveness and impact on the
credit of participants in any loan rehabilitation
programs described in the provision and whether such
programs improved the ability of participants in the
programs to access credit products.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report that contains all
findings and determinations made in conducting the study
required under paragraph (1).
SEC. 603. BEST PRACTICES FOR HIGHER EDUCATION FINANCIAL LITERACY.
Section 514(a) of the Financial Literacy and Education Improvement
Act (20 U.S.C. 9703(a)) is amended by adding at the end the following:
``(3) Best practices for teaching financial literacy.--
``(A) In general.--After soliciting public comments
and consulting with and receiving input from relevant
parties, including a diverse set of institutions of
higher education and other parties, the Commission
shall, by not later than 1 year after the date of
enactment of the Economic Growth, Regulatory Relief,
and Consumer Protection Act, establish best practices
for institutions of higher education regarding methods
to--
``(i) teach financial literacy skills; and
``(ii) provide useful and necessary
information to assist students at institutions
of higher education when making financial
decisions related to student borrowing.
``(B) Best practices.--The best practices described
in subparagraph (A) shall include the following:
``(i) Methods to ensure that each student
has a clear sense of the student's total
borrowing obligations, including monthly
payments, and repayment options.
``(ii) The most effective ways to engage
students in financial literacy education,
including frequency and timing of communication
with students.
``(iii) Information on how to target
different student populations, including part-
time students, first-time students, and other
nontraditional students.
``(iv) Ways to clearly communicate the
importance of graduating on a student's ability
to repay student loans.
``(C) Maintenance of best practices.--The
Commission shall maintain and periodically update the
best practices information required under this
paragraph and make the best practices available to the
public.
``(D) Rule of construction.--Nothing in this
paragraph shall be construed to require an institution
of higher education to adopt the best practices
required under this paragraph.''.
Passed the Senate March 14, 2018.
Attest:
Secretary.
115th CONGRESS
2d Session
S. 2155
_______________________________________________________________________
AN ACT
To promote economic growth, provide tailored regulatory relief, and
enhance consumer protections, and for other purposes.