[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2155 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
1st Session
S. 2155
To promote economic growth, provide tailored regulatory relief, and
enhance consumer protections, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 16, 2017
Mr. Crapo (for himself, Mr. Donnelly, Ms. Heitkamp, Mr. Tester, Mr.
Warner, Mr. Corker, Mr. Scott, Mr. Cotton, Mr. Rounds, Mrs. McCaskill,
Mr. Perdue, Mr. Manchin, Mr. Tillis, Mr. King, Mr. Kennedy, Mr. Kaine,
Mr. Moran, Mr. Peters, Mr. Risch, and Mr. Bennet) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
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. Property Assessed Clean Energy financing.
Sec. 109. Escrow requirements relating to certain consumer credit
transactions.
Sec. 110. 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. Mutual holding company dividend waivers.
Sec. 210. Small public housing agencies.
Sec. 211. Examination cycle.
Sec. 212. National securities exchange regulatory parity.
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.
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--STUDIES
Sec. 501. Treasury report on risks of cyber threats.
Sec. 502. SEC study on algorithmic trading.
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; or
``(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.
``(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) Definition.--In this section, the term `mortgage originator'
has the meaning given the term in section 103 of the Truth in Lending
Act (15 U.S.C. 1602).
``(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; and
``(B) has documented that no State certified
appraiser or State licensed appraiser, as applicable,
was available within a reasonable amount of time, as
determined by the Federal financial institutions
regulatory agency with oversight of the mortgage
originator, to perform the appraisal in connection with
the federally related transaction;
``(3) the balance of the loan 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; or
``(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.
``(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.''; 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 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) 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
lender; and
``(bb) if the retailer has
a corporate affiliation with
any lender, at least 1
unaffiliated lender; and
``(III) does not directly negotiate
with the consumer or lender on loan
terms (including rates, fees, and other
costs).''.
SEC. 108. 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. 109. ESCROW REQUIREMENTS RELATING TO CERTAIN CONSUMER CREDIT
TRANSACTIONS.
Section 129D(c) of the Truth in Lending Act (15 U.S.C. 1639d(c)) is
amended--
(1) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and adjusting the
margins accordingly;
(2) in the matter preceding subparagraph (A), as so
redesignated, by striking ``The Board'' and inserting the
following:
``(1) In general.--The Bureau'';
(3) in paragraph (1), as so redesignated, by striking ``the
Board'' each place that term appears and inserting ``the
Bureau''; and
(4) 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 otherwise satisfies the
criteria in sections 1026.35(b)(2)(iii) and
1026.35(b)(2)(v) of title 12, Code of Federal
Regulations, or any successor regulation.''.
SEC. 110. 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 qualified
community bank that has a Community Bank Leverage Ratio that is
below the percentage developed under paragraph (1).
(c) Capital Compliance.--
(1) In general.--Any qualifying community bank that meets
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.
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) of the Bank Holding Company Act of 1956 (12 U.S.C.
1851(h)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by redesignating clauses
(i) and (ii) as subclauses (I) and (II), respectively,
and adjusting the margins accordingly;
(B) by redesignating subparagraphs (A) through (D)
as clauses (i) through (iv), respectively, and
adjusting the margins accordingly;
(C) 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--'';
(D) in clause (iv)(II), as so redesignated, by
striking the period at the end and inserting ``; or'';
and
(E) by adding at the end the following:
``(B) with--
``(i) not more than $10,000,000,000 of
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 not 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.--Upon issuance of rules under subsection
(f), and in accordance with those rules, a Federal savings
association with total consolidated assets equal to or less
than $15,000,000,000 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 or 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
$15,000,000,000.''.
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,'' after ``Puerto Rico,''; and
(C) in paragraph (23), by inserting ``American
Samoa, the Commonwealth of the Northern Mariana
Islands,'' 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,'' 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. MUTUAL HOLDING COMPANY DIVIDEND WAIVERS.
Not later than 180 days after the date of enactment of this Act,
the Board of Governors of the Federal Reserve System shall amend
section 239.8(d)(2)(iv) of title 12, Code of Federal Regulations, by
striking ``12 months'' each place that term appears and inserting ``24
months''.
SEC. 210. 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.
``(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.--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).
``(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.
SEC. 211. EXAMINATION CYCLE.
Section 10(d)(4)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)(4)(A)) is amended by striking ``$1,000,000,000'' and inserting
``$3,000,000,000''.
SEC. 212. 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.
TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS
SEC. 301. PROTECTING CONSUMERS' CREDIT.
Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-1)
is amended--
(a) in subsection (a)(1)(A), by striking ``90 days'' and inserting
``1 year''; and
(b) by adding at the end the following:
``(i) Free Annual Freeze Alerts; Additional Protections for Credit
Reports of Minor Consumers.--
``(1) Definition.--In this subsection, the term `freeze
alert' means a restriction placed on the file of a consumer,
prohibiting the ability of a consumer reporting agency to
furnish to any person, for the purpose of opening a new account
involving the extension of credit, the consumer report of the
consumer.
``(2) Free annual freeze alert.--
``(A) In general.--Notwithstanding any other
provision of State law, once every calendar year, free
of charge, upon the direct request of a consumer, or an
individual acting on behalf of or as a personal
representative of the consumer, a consumer reporting
agency that maintains a file on the consumer and has
received appropriate proof of the identity of the
requester shall provide 1 freeze alert in the file of
that consumer that shall remain in effect until the
consumer or requester requests that such freeze alert
be removed.
``(B) Removal of alert.--Notwithstanding any other
provision of State law, once every calendar year, free
of charge, upon the direct request of a consumer, or an
individual acting on behalf of or as a personal
representative of the consumer, a consumer reporting
agency that receives a request to remove a freeze alert
provided under paragraph (1) shall remove such a freeze
alert.
``(C) Rule of construction.--Nothing in this
paragraph shall be construed to limit the authority of
a State to require consumer reporting agencies to
require freeze alerts free of charge.
``(3) Additional protections for credit reports of minor
consumers.--
``(A) In general.--Upon the direct request of an
individual acting on behalf of or as a personal
representative of a minor, a consumer reporting agency
that maintains a file on the minor and has received
appropriate proof of the identity of the requester
shall include a freeze alert, free of charge, in the
file of that minor that shall remain in effect until an
individual acting on behalf of or as a personal
representative of the minor, or in the case of a minor
who is no longer a minor, the minor, requests that such
freeze alert be removed.
``(B) Block of information.--While a freeze alert
under subparagraph (A) is in place, a consumer
reporting agency may not release--
``(i) the consumer report of the minor;
``(ii) any information derived from the
consumer report of the minor; or
``(iii) any record created for the minor.
``(C) Removal.--Notwithstanding any other provision
of State law, a consumer reporting agency that receives
a request for a freeze alert for a minor or a request
to remove a freeze alert for a minor shall provide or
remove the freeze alert, as applicable, free of
charge.''.
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 or medical 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 debt of a veteran arising from health care
provided in a non-Department of Veterans Affairs facility under
the laws administered by the Secretary of Veterans Affairs; and
``(2) includes medical 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) Any information related to a veteran's medical debt
if the date on which the hospital care or medical services was
rendered relating to the debt antedates the report by less than
1 year.
``(8) Any information related to a fully paid or settled
veteran's medical debt that had been characterized as
delinquent, charged off, or in collection.''.
(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
of a consumer, the consumer may submit a notice described in
paragraph (2) along with 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 medical services rendered to a
consumer reporting agency or a reseller to dispute the
inclusion of that debt on a consumer report of the consumer.
``(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 and 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 consumer and notify the
furnisher and the consumer of that deletion.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is 180 days 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 entities 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; and
(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; and
(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 compliance
officer (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 or
repealed 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.
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)(A)--
(i) in the first sentence, by striking
``semiannual'' and inserting ``periodic''; and
(ii) in the second sentence--
(I) by striking ``$10,000,000,000''
and inserting ``$250,000,000,000''; and
(II) by striking ``annual'' and
inserting ``periodic''; 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. 5311(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.--Paragraph (2) of the second
subsection (s) (relating to assessments) of section 11 of the
Federal Reserve Act (12 U.S.C. 248(s)(2)) is amended--
(A) in subparagraph (A)--
(i) by striking ``$50,000,000,000'' and
inserting ``$250,000,000,000''; and
(ii) by inserting ``and'' after the
semicolon at the end;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
(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 not
more 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)).
SEC. 402. SUPPLEMENTARY LEVERAGE RATIO FOR CUSTODIAL BANKS.
(a) Definition.--In this section, the term ``custodial bank'' means
any depository institution or depository institution holding company
for which the level of assets under custody is not less than 30 times
the total consolidated assets of the depository institution or
depository institution holding company, as applicable.
(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 central bank of such member country
has been assigned a zero percent risk weight
under the final rule of the Office of the
Comptroller of the Currency and Board of
Governors of the Federal Reserve System
entitled ``Regulatory Capital Rules: Regulatory
Capital, Implementation of Basel III, Capital
Adequacy, Transition Provisions, Prompt
Corrective Action, Standardized Approach for
Risk-weighted Assets, Market Discipline and
Disclosure Requirements, Advanced Approaches
Risk-Based Capital Rule, and Market Risk
Capital Rule'' (78 Fed. Reg. 62018 (October 11,
2013)) and the final rule of the Federal
Deposit Insurance Corporation entitled
``Regulatory Capital Rules: Regulatory Capital,
Implementation of Basel III, Capital Adequacy,
Transition Provisions, Prompt Corrective
Action, Standardized Approach for Risk-Weighted
Assets, Market Discipline and Disclosure
Requirements, Advanced Approaches Risk-Based
Capital Rule, and Market Risk Capital Rule''
(79 Fed. Reg. 20754 (April 14, 2014)); 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 Act.
TITLE V--STUDIES
SEC. 501. 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. 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).
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