[Congressional Record Volume 164, Number 40 (Wednesday, March 7, 2018)]
[Senate]
[Pages S1504-S1524]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2151. Mr. CRAPO (for himself, Mr. Donnelly, Ms. Heitkamp, Mr.
Tester, and Mr. Warner) proposed an amendment to the bill S. 2155, to
promote economic growth, provide tailored regulatory relief, and
enhance consumer protections, and for other purposes; as follows:
Strike all after the enacting clause and insert the
following:
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.
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.
[[Page S1505]]
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.''.
[[Page S1506]]
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
[[Page S1507]]
(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--
[[Page S1508]]
``(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
[[Page S1509]]
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.''.
[[Page S1510]]
(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
[[Page S1511]]
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.
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.''.
[[Page S1512]]
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--
[[Page S1513]]
(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
[[Page S1514]]
``(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
[[Page S1515]]
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 section 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
[[Page S1516]]
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
[[Page S1517]]
(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)--
[[Page S1518]]
(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
[[Page S1519]]
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 may 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
[[Page S1520]]
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 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 uses 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 if 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 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)).
[[Page S1521]]
(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.
[[Page S1522]]
(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.
[[Page S1523]]
(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
[[Page S1524]]
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.''.
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