[Congressional Record Volume 164, Number 84 (Tuesday, May 22, 2018)]
[House]
[Pages H4320-H4349]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ECONOMIC GROWTH, REGULATORY RELIEF, AND CONSUMER PROTECTION ACT
Mr. HENSARLING. Mr. Speaker, pursuant to House Resolution 905, I call
up the bill (S. 2155) to promote economic growth, provide tailored
regulatory relief, and enhance consumer protections, and for other
purposes, and ask for its immediate consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 905, the bill
is considered read.
The text of the bill is as follows:
S. 2155
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Economic
Growth, Regulatory Relief, and Consumer Protection Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT
Sec. 101. Minimum standards for residential mortgage loans.
Sec. 102. Safeguarding access to habitat for humanity homes.
Sec. 103. Exemption from appraisals of real property located in rural
areas.
Sec. 104. Home Mortgage Disclosure Act adjustment and study.
Sec. 105. Credit union residential loans.
Sec. 106. Eliminating barriers to jobs for loan originators.
[[Page H4321]]
Sec. 107. Protecting access to manufactured homes.
Sec. 108. Escrow requirements relating to certain consumer credit
transactions.
Sec. 109. No wait for lower mortgage rates.
TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT
Sec. 201. Capital simplification for qualifying community banks.
Sec. 202. Limited exception for reciprocal deposits.
Sec. 203. Community bank relief.
Sec. 204. Removing naming restrictions.
Sec. 205. Short form call reports.
Sec. 206. Option for Federal savings associations to operate as covered
savings associations.
Sec. 207. Small bank holding company policy statement.
Sec. 208. Application of the Expedited Funds Availability Act.
Sec. 209. Small public housing agencies.
Sec. 210. Examination cycle.
Sec. 211. International insurance capital standards accountability.
Sec. 212. Budget transparency for the NCUA.
Sec. 213. Making online banking initiation legal and easy.
Sec. 214. Promoting construction and development on Main Street.
Sec. 215. Reducing identity fraud.
Sec. 216. Treasury report on risks of cyber threats.
Sec. 217. Discretionary surplus funds.
TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS
Sec. 301. Protecting consumers' credit.
Sec. 302. Protecting veterans' credit.
Sec. 303. Immunity from suit for disclosure of financial exploitation
of senior citizens.
Sec. 304. Restoration of the Protecting Tenants at Foreclosure Act of
2009.
Sec. 305. Remediating lead and asbestos hazards.
Sec. 306. Family self-sufficiency program.
Sec. 307. Property Assessed Clean Energy financing.
Sec. 308. GAO report on consumer reporting agencies.
Sec. 309. Protecting veterans from predatory lending.
Sec. 310. Credit score competition.
Sec. 311. GAO report on Puerto Rico foreclosures.
Sec. 312. Report on children's lead-based paint hazard prevention and
abatement.
Sec. 313. Foreclosure relief and extension for servicemembers.
TITLE IV--TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES
Sec. 401. Enhanced supervision and prudential standards for certain
bank holding companies.
Sec. 402. Supplementary leverage ratio for custodial banks.
Sec. 403. Treatment of certain municipal obligations.
TITLE V--ENCOURAGING CAPITAL FORMATION
Sec. 501. National securities exchange regulatory parity.
Sec. 502. SEC study on algorithmic trading.
Sec. 503. Annual review of government-business forum on capital
formation.
Sec. 504. Supporting America's innovators.
Sec. 505. Securities and Exchange Commission overpayment credit.
Sec. 506. U.S. territories investor protection.
Sec. 507. Encouraging employee ownership.
Sec. 508. Improving access to capital.
Sec. 509. Parity for closed-end companies regarding offering and proxy
rules.
TITLE VI--PROTECTIONS FOR STUDENT BORROWERS
Sec. 601. Protections in the event of death or bankruptcy.
Sec. 602. Rehabilitation of private education loans.
Sec. 603. Best practices for higher education financial literacy.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate federal banking agency; company; depository
institution; depository institution holding company.--The
terms ``appropriate Federal banking agency'', ``company'',
``depository institution'', and ``depository institution
holding company'' have the meanings given those terms in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(2) Bank holding company.--The term ``bank holding
company'' has the meaning given the term in section 2 of the
Bank Holding Company Act of 1956 (12 U.S.C. 1841).
TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT
SEC. 101. MINIMUM STANDARDS FOR RESIDENTIAL MORTGAGE LOANS.
Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C.
1639c(b)(2)) is amended by adding at the end the following:
``(F) Safe harbor.--
``(i) Definitions.--In this subparagraph--
``(I) the term `covered institution' means an insured
depository institution or an insured credit union that,
together with its affiliates, has less than $10,000,000,000
in total consolidated assets;
``(II) the term `insured credit union' has the meaning
given the term in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752);
``(III) the term `insured depository institution' has the
meaning given the term in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813);
``(IV) the term `interest-only' means that, under the terms
of the legal obligation, one or more of the periodic payments
may be applied solely to accrued interest and not to loan
principal; and
``(V) the term `negative amortization' means payment of
periodic payments that will result in an increase in the
principal balance under the terms of the legal obligation.
``(ii) Safe harbor.--In this section--
``(I) the term `qualified mortgage' includes any
residential mortgage loan--
``(aa) that is originated and retained in portfolio by a
covered institution;
``(bb) that is in compliance with the limitations with
respect to prepayment penalties described in subsections
(c)(1) and (c)(3);
``(cc) that is in compliance with the requirements of
clause (vii) of subparagraph (A);
``(dd) that does not have negative amortization or
interest-only features; and
``(ee) for which the covered institution considers and
documents the debt, income, and financial resources of the
consumer in accordance with clause (iv); and
``(II) a residential mortgage loan described in subclause
(I) shall be deemed to meet the requirements of subsection
(a).
``(iii) Exception for certain transfers.--A residential
mortgage loan described in clause (ii)(I) shall not qualify
for the safe harbor under clause (ii) if the legal title to
the residential mortgage loan is sold, assigned, or otherwise
transferred to another person unless the residential mortgage
loan is sold, assigned, or otherwise transferred--
``(I) to another person by reason of the bankruptcy or
failure of a covered institution;
``(II) to a covered institution so long as the loan is
retained in portfolio by the covered institution to which the
loan is sold, assigned, or otherwise transferred;
``(III) pursuant to a merger of a covered institution with
another person or the acquisition of a covered institution by
another person or of another person by a covered institution,
so long as the loan is retained in portfolio by the person to
whom the loan is sold, assigned, or otherwise transferred; or
``(IV) to a wholly owned subsidiary of a covered
institution, provided that, after the sale, assignment, or
transfer, the residential mortgage loan is considered to be
an asset of the covered institution for regulatory accounting
purposes.
``(iv) Consideration and documentation requirements.--The
consideration and documentation requirements described in
clause (ii)(I)(ee) shall--
``(I) not be construed to require compliance with, or
documentation in accordance with, appendix Q to part 1026 of
title 12, Code of Federal Regulations, or any successor
regulation; and
``(II) be construed to permit multiple methods of
documentation.''.
SEC. 102. SAFEGUARDING ACCESS TO HABITAT FOR HUMANITY HOMES.
Section 129E(i)(2) of the Truth in Lending Act (15 U.S.C.
1639e(i)(2)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and adjusting the margins
accordingly;
(2) in the matter preceding clause (i), as so redesignated,
by striking ``For purposes of'' and inserting the following:
``(A) In general.--For purposes of''; and
(3) by adding at the end the following:
``(B) Rule of construction related to appraisal
donations.--If a fee appraiser voluntarily donates appraisal
services to an organization eligible to receive tax-
deductible charitable contributions, such voluntary donation
shall be considered customary and reasonable for the purposes
of paragraph (1).''.
SEC. 103. EXEMPTION FROM APPRAISALS OF REAL PROPERTY LOCATED
IN RURAL AREAS.
Title XI of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is
amended by adding at the end the following:
``SEC. 1127. EXEMPTION FROM APPRAISALS OF REAL ESTATE LOCATED
IN RURAL AREAS.
``(a) Definitions.--In this section--
``(1) the term `mortgage originator' has the meaning given
the term in section 103 of the Truth in Lending Act (15
U.S.C. 1602); and
``(2) the term `transaction value' means the amount of a
loan or extension of credit, including a loan or extension of
credit that is part of a pool of loans or extensions of
credit.
``(b) Appraisal Not Required.--Except as provided in
subsection (d), notwithstanding any other provision of law,
an appraisal in connection with a federally related
transaction involving real property or an interest in real
property is not required if--
``(1) the real property or interest in real property is
located in a rural area, as described in section
1026.35(b)(2)(iv)(A) of title 12, Code of Federal
Regulations;
``(2) not later than 3 days after the date on which the
Closing Disclosure Form, made in accordance with the final
rule of the Bureau of Consumer Financial Protection entitled
`Integrated Mortgage Disclosures Under the Real Estate
Settlement Procedures Act (Regulation X) and the Truth in
Lending Act (Regulation Z)' (78 Fed. Reg. 79730 (December
[[Page H4322]]
31, 2013)), relating to the federally related transaction is
given to the consumer, the mortgage originator or its agent,
directly or indirectly--
``(A) has contacted not fewer than 3 State certified
appraisers or State licensed appraisers, as applicable, on
the mortgage originator's approved appraiser list in the
market area in accordance with part 226 of title 12, Code of
Federal Regulations; and
``(B) has documented that no State certified appraiser or
State licensed appraiser, as applicable, was available within
5 business days beyond customary and reasonable fee and
timeliness standards for comparable appraisal assignments, as
documented by the mortgage originator or its agent;
``(3) the transaction value is less than $400,000; and
``(4) the mortgage originator is subject to oversight by a
Federal financial institutions regulatory agency.
``(c) Sale, Assignment, or Transfer.--A mortgage originator
that makes a loan without an appraisal under the terms of
subsection (b) shall not sell, assign, or otherwise transfer
legal title to the loan unless--
``(1) the loan is sold, assigned, or otherwise transferred
to another person by reason of the bankruptcy or failure of
the mortgage originator;
``(2) the loan is sold, assigned, or otherwise transferred
to another person regulated by a Federal financial
institutions regulatory agency, so long as the loan is
retained in portfolio by the person;
``(3) the sale, assignment, or transfer is pursuant to a
merger of the mortgage originator with another person or the
acquisition of the mortgage originator by another person or
of another person by the mortgage originator; or
``(4) the sale, loan, or transfer is to a wholly owned
subsidiary of the mortgage originator, provided that, after
the sale, assignment, or transfer, the loan is considered to
be an asset of the mortgage originator for regulatory
accounting purposes.
``(d) Exception.--Subsection (b) shall not apply if--
``(1) a Federal financial institutions regulatory agency
requires an appraisal under section 225.63(c), 323.3(c),
34.43(c), or 722.3(e) of title 12, Code of Federal
Regulations; or
``(2) the loan is a high-cost mortgage, as defined in
section 103 of the Truth in Lending Act (15 U.S.C. 1602).
``(e) Anti-Evasion.--Each Federal financial institutions
regulatory agency shall ensure that any mortgage originator
that the Federal financial institutions regulatory agency
oversees that makes a significant amount of loans under
subsection (b) is complying with the requirements of
subsection (b)(2) with respect to each loan.''.
SEC. 104. HOME MORTGAGE DISCLOSURE ACT ADJUSTMENT AND STUDY.
(a) In General.--Section 304 of the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2803) is amended--
(1) by redesignating subsection (i) as paragraph (3) and
adjusting the margins accordingly;
(2) by inserting before paragraph (3), as so redesignated,
the following:
``(i) Exemptions.--
``(1) Closed-end mortgage loans.--With respect to an
insured depository institution or insured credit union, the
requirements of paragraphs (5) and (6) of subsection (b)
shall not apply with respect to closed-end mortgage loans if
the insured depository institution or insured credit union
originated fewer than 500 closed-end mortgage loans in each
of the 2 preceding calendar years.
``(2) Open-end lines of credit.--With respect to an insured
depository institution or insured credit union, the
requirements of paragraphs (5) and (6) of subsection (b)
shall not apply with respect to open-end lines of credit if
the insured depository institution or insured credit union
originated fewer than 500 open-end lines of credit in each of
the 2 preceding calendar years.
``(3) Required compliance.--Notwithstanding paragraphs (1)
and (2), an insured depository institution shall comply with
paragraphs (5) and (6) of subsection (b) if the insured
depository institution has received a rating of `needs to
improve record of meeting community credit needs' during each
of its 2 most recent examinations or a rating of `substantial
noncompliance in meeting community credit needs' on its most
recent examination under section 807(b)(2) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2906(b)(2)).''; and
(3) by adding at the end the following:
``(o) Definitions.--In this section--
``(1) the term `insured credit union' has the meaning given
the term in section 101 of the Federal Credit Union Act (12
U.S.C. 1752); and
``(2) the term `insured depository institution' has the
meaning given the term in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).''.
(b) Lookback Study.--
(1) Study.--Not earlier than 2 years after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct a study to evaluate the impact of the
amendments made by subsection (a) on the amount of data
available under the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2801 et seq.) at the national and local level.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that
includes the findings and conclusions of the Comptroller
General with respect to the study required under paragraph
(1).
(c) Technical Correction.--Section 304(i)(3) of the Home
Mortgage Disclosure Act of 1975, as so redesignated by
subsection (a)(1), is amended by striking ``section
303(2)(A)'' and inserting ``section 303(3)(A)''.
SEC. 105. CREDIT UNION RESIDENTIAL LOANS.
(a) Removal From Member Business Loan Limitation.--Section
107A(c)(1)(B)(i) of the Federal Credit Union Act (12 U.S.C.
1757a(c)(1)(B)(i)) is amended by striking ``that is the
primary residence of a member''.
(b) Rule of Construction.--Nothing in this section or the
amendment made by this section shall preclude the National
Credit Union Administration from treating an extension of
credit that is fully secured by a lien on a 1- to 4-family
dwelling that is not the primary residence of a member as a
member business loan for purposes other than the member
business loan limitation requirements under section 107A of
the Federal Credit Union Act (12 U.S.C. 1757a).
SEC. 106. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS.
(a) In General.--The S.A.F.E. Mortgage Licensing Act of
2008 (12 U.S.C. 5101 et seq.) is amended by adding at the end
the following:
``SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.
``(a) Definitions.--In this section:
``(1) Application state.--The term `application State'
means a State in which a registered loan originator or a
State-licensed loan originator seeks to be licensed.
``(2) State-licensed mortgage company.--The term `State-
licensed mortgage company' means an entity that is licensed
or registered under the law of any State to engage in
residential mortgage loan origination and processing
activities.
``(b) Temporary Authority To Originate Loans for Loan
Originators Moving From a Depository Institution to a Non-
Depository Institution.--
``(1) In general.--Upon becoming employed by a State-
licensed mortgage company, an individual who is a registered
loan originator shall be deemed to have temporary authority
to act as a loan originator in an application State for the
period described in paragraph (2) if the individual--
``(A) has not had--
``(i) an application for a loan originator license denied;
or
``(ii) a loan originator license revoked or suspended in
any governmental jurisdiction;
``(B) has not been subject to, or served with, a cease and
desist order--
``(i) in any governmental jurisdiction; or
``(ii) under section 1514(c);
``(C) has not been convicted of a misdemeanor or felony
that would preclude licensure under the law of the
application State;
``(D) has submitted an application to be a State-licensed
loan originator in the application State; and
``(E) was registered in the Nationwide Mortgage Licensing
System and Registry as a loan originator during the 1-year
period preceding the date on which the information required
under section 1505(a) is submitted.
``(2) Period.--The period described in this paragraph shall
begin on the date on which an individual described in
paragraph (1) submits the information required under section
1505(a) and shall end on the earliest of the date--
``(A) on which the individual withdraws the application to
be a State-licensed loan originator in the application State;
``(B) on which the application State denies, or issues a
notice of intent to deny, the application;
``(C) on which the application State grants a State
license; or
``(D) that is 120 days after the date on which the
individual submits the application, if the application is
listed on the Nationwide Mortgage Licensing System and
Registry as incomplete.
``(c) Temporary Authority To Originate Loans for State-
Licensed Loan Originators Moving Interstate.--
``(1) In general.--A State-licensed loan originator shall
be deemed to have temporary authority to act as a loan
originator in an application State for the period described
in paragraph (2) if the State-licensed loan originator--
``(A) meets the requirements of subparagraphs (A), (B),
(C), and (D) of subsection (b)(1);
``(B) is employed by a State-licensed mortgage company in
the application State; and
``(C) was licensed in a State that is not the application
State during the 30-day period preceding the date on which
the information required under section 1505(a) was submitted
in connection with the application submitted to the
application State.
``(2) Period.--The period described in this paragraph shall
begin on the date on which the State-licensed loan originator
submits the information required under section 1505(a) in
connection with the application submitted to the application
State and end on the earliest of the date--
``(A) on which the State-licensed loan originator withdraws
the application to be a State-licensed loan originator in the
application State;
``(B) on which the application State denies, or issues a
notice of intent to deny, the application;
[[Page H4323]]
``(C) on which the application State grants a State
license; or
``(D) that is 120 days after the date on which the State-
licensed loan originator submits the application, if the
application is listed on the Nationwide Mortgage Licensing
System and Registry as incomplete.
``(d) Applicability.--
``(1) Employer of loan originators.--Any person employing
an individual who is deemed to have temporary authority to
act as a loan originator in an application State under this
section shall be subject to the requirements of this title
and to applicable State law to the same extent as if that
individual was a State-licensed loan originator licensed by
the application State.
``(2) Engaging in mortgage loan activities.--Any individual
who is deemed to have temporary authority to act as a loan
originator in an application State under this section and who
engages in residential mortgage loan origination activities
shall be subject to the requirements of this title and to
applicable State law to the same extent as if that individual
was a State-licensed loan originator licensed by the
application State.''.
(b) Table of Contents Amendment.--Section 1(b) of the
Housing and Economic Recovery Act of 2008 (42 U.S.C. 4501
note) is amended by inserting after the item relating to
section 1517 the following:
``Sec. 1518. Employment transition of loan originators.''.
(c) Civil Liability.--Section 1513 of the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5112) is amended by striking
``persons who are loan originators or are applying for
licensing or registration as loan originators.'' and
inserting ``persons who--
``(1) have applied, are applying, or are licensed or
registered through the Nationwide Mortgage Licensing System
and Registry; and
``(2) work in an industry with respect to which persons
were licensed or registered through the Nationwide Mortgage
Licensing System and Registry on the date of enactment of the
Economic Growth, Regulatory Relief, and Consumer Protection
Act.''.
(d) Effective Date.--This section and the amendments made
by this section shall take effect on the date that is 18
months after the date of enactment of this Act.
SEC. 107. PROTECTING ACCESS TO MANUFACTURED HOMES.
Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is
amended--
(1) by redesignating the second subsection (cc) (relating
to definitions relating to mortgage origination and
residential mortgage loans) and subsection (dd) as
subsections (dd) and (ee), respectively; and
(2) in paragraph (2) of subsection (dd), as so
redesignated, by striking subparagraph (C) and inserting the
following:
``(C) does not include any person who is--
``(i) not otherwise described in subparagraph (A) or (B)
and who performs purely administrative or clerical tasks on
behalf of a person who is described in any such subparagraph;
or
``(ii) a retailer of manufactured or modular homes or an
employee of the retailer if the retailer or employee, as
applicable--
``(I) does not receive compensation or gain for engaging in
activities described in subparagraph (A) that is in excess of
any compensation or gain received in a comparable cash
transaction;
``(II) discloses to the consumer--
``(aa) in writing any corporate affiliation with any
creditor; and
``(bb) if the retailer has a corporate affiliation with any
creditor, at least 1 unaffiliated creditor; and
``(III) does not directly negotiate with the consumer or
lender on loan terms (including rates, fees, and other
costs).''.
SEC. 108. ESCROW REQUIREMENTS RELATING TO CERTAIN CONSUMER
CREDIT TRANSACTIONS.
Section 129D of the Truth in Lending Act (15 U.S.C. 1639d)
is amended--
(1) in subsection (c)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and adjusting
the margins accordingly;
(B) in the matter preceding subparagraph (A), as so
redesignated, by striking ``The Board'' and inserting the
following:
``(1) In general.--The Bureau'';
(C) in paragraph (1), as so redesignated, by striking ``the
Board'' each place that term appears and inserting ``the
Bureau''; and
(D) by adding at the end the following:
``(2) Treatment of loans held by smaller institutions.--The
Bureau shall, by regulation, exempt from the requirements of
subsection (a) any loan made by an insured depository
institution or an insured credit union secured by a first
lien on the principal dwelling of a consumer if--
``(A) the insured depository institution or insured credit
union has assets of $10,000,000,000 or less;
``(B) during the preceding calendar year, the insured
depository institution or insured credit union and its
affiliates originated 1,000 or fewer loans secured by a first
lien on a principal dwelling; and
``(C) the transaction satisfies the criteria in sections
1026.35(b)(2)(iii)(A), 1026.35(b)(2)(iii)(D), and
1026.35(b)(2)(v) of title 12, Code of Federal Regulations, or
any successor regulation.''; and
(2) in subsection (i), by adding at the end the following:
``(3) Insured credit union.--The term `insured credit
union' has the meaning given the term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
``(4) Insured depository institution.--The term `insured
depository institution' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).''.
SEC. 109. NO WAIT FOR LOWER MORTGAGE RATES.
(a) In General.--Section 129(b) of the Truth in Lending Act
(15 U.S.C. 1639(b)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) No wait for lower rate.--If a creditor extends to a
consumer a second offer of credit with a lower annual
percentage rate, the transaction may be consummated without
regard to the period specified in paragraph (1) with respect
to the second offer.''.
(b) Sense of Congress.--It is the sense of Congress that,
whereas the Bureau of Consumer Financial Protection issued a
final rule entitled ``Integrated Mortgage Disclosures Under
the Real Estate Settlement Procedures Act (Regulation X) and
the Truth in Lending Act (Regulation Z)'' (78 Fed. Reg. 79730
(December 31, 2013)) (in this subsection referred to as the
``TRID Rule'') to combine the disclosures a consumer receives
in connection with applying for and closing on a mortgage
loan, the Bureau of Consumer Financial Protection should
endeavor to provide clearer, authoritative guidance on--
(1) the applicability of the TRID Rule to mortgage
assumption transactions;
(2) the applicability of the TRID Rule to construction-to-
permanent home loans, and the conditions under which those
loans can be properly originated; and
(3) the extent to which lenders can rely on model
disclosures published by the Bureau of Consumer Financial
Protection without liability if recent changes to regulations
are not reflected in the sample TRID Rule forms published by
the Bureau of Consumer Financial Protection.
TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT
SEC. 201. CAPITAL SIMPLIFICATION FOR QUALIFYING COMMUNITY
BANKS.
(a) Definitions.--In this section:
(1) Community bank leverage ratio.--The term ``Community
Bank Leverage Ratio'' means the ratio of the tangible equity
capital of a qualifying community bank, as reported on the
qualifying community bank's applicable regulatory filing with
the qualifying community bank's appropriate Federal banking
agency, to the average total consolidated assets of the
qualifying community bank, as reported on the qualifying
community bank's applicable regulatory filing with the
qualifying community bank's appropriate Federal banking
agency.
(2) Generally applicable leverage capital requirements;
generally applicable risk-based capital requirements.--The
terms ``generally applicable leverage capital requirements''
and ``generally applicable risk-based capital requirements''
have the meanings given those terms in section 171(a) of the
Financial Stability Act of 2010 (12 U.S.C. 5371(a)).
(3) Qualifying community bank.--
(A) Asset threshold.--The term ``qualifying community
bank'' means a depository institution or depository
institution holding company with total consolidated assets of
less than $10,000,000,000.
(B) Risk profile.--The appropriate Federal banking agencies
may determine that a depository institution or depository
institution holding company (or a class of depository
institutions or depository institution holding companies)
described in subparagraph (A) is not a qualifying community
bank based on the depository institution's or depository
institution holding company's risk profile, which shall be
based on consideration of--
(i) off-balance sheet exposures;
(ii) trading assets and liabilities;
(iii) total notional derivatives exposures; and
(iv) such other factors as the appropriate Federal banking
agencies determine appropriate.
(b) Community Bank Leverage Ratio.--The appropriate Federal
banking agencies shall, through notice and comment rule
making under section 553 of title 5, United States Code--
(1) develop a Community Bank Leverage Ratio of not less
than 8 percent and not more than 10 percent for qualifying
community banks; and
(2) establish procedures for treatment of a qualifying
community bank that has a Community Bank Leverage Ratio that
falls below the percentage developed under paragraph (1)
after exceeding the percentage developed under paragraph (1).
(c) Capital Compliance.--
(1) In general.--Any qualifying community bank that exceeds
the Community Bank Leverage Ratio developed under subsection
(b)(1) shall be considered to have met--
(A) the generally applicable leverage capital requirements
and the generally applicable risk-based capital requirements;
(B) in the case of a qualifying community bank that is a
depository institution, the capital ratio requirements that
are required in order to be considered well capitalized
[[Page H4324]]
under section 38 of the Federal Deposit Insurance Act (12
U.S.C. 1831o) and any regulation implementing that section;
and
(C) any other capital or leverage requirements to which the
qualifying community bank is subject.
(2) Existing authorities.--Nothing in paragraph (1) shall
limit the authority of the appropriate Federal banking
agencies as in effect on the date of enactment of this Act.
(d) Consultation.--The appropriate Federal banking agencies
shall--
(1) consult with the applicable State bank supervisors in
carrying out this section; and
(2) notify the applicable State bank supervisor of any
qualifying community bank that it supervises that exceeds, or
does not exceed after previously exceeding, the Community
Bank Leverage ratio developed under subsection (b)(1).
SEC. 202. LIMITED EXCEPTION FOR RECIPROCAL DEPOSITS.
(a) In General.--Section 29 of the Federal Deposit
Insurance Act (12 U.S.C. 1831f) is amended by adding at the
end the following:
``(i) Limited Exception for Reciprocal Deposits.--
``(1) In general.--Reciprocal deposits of an agent
institution shall not be considered to be funds obtained,
directly or indirectly, by or through a deposit broker to the
extent that the total amount of such reciprocal deposits does
not exceed the lesser of--
``(A) $5,000,000,000; or
``(B) an amount equal to 20 percent of the total
liabilities of the agent institution.
``(2) Definitions.--In this subsection:
``(A) Agent institution.--The term `agent institution'
means an insured depository institution that places a covered
deposit through a deposit placement network at other insured
depository institutions in amounts that are less than or
equal to the standard maximum deposit insurance amount,
specifying the interest rate to be paid for such amounts, if
the insured depository institution--
``(i)(I) when most recently examined under section 10(d)
was found to have a composite condition of outstanding or
good; and
``(II) is well capitalized;
``(ii) has obtained a waiver pursuant to subsection (c); or
``(iii) does not receive an amount of reciprocal deposits
that causes the total amount of reciprocal deposits held by
the agent institution to be greater than the average of the
total amount of reciprocal deposits held by the agent
institution on the last day of each of the 4 calendar
quarters preceding the calendar quarter in which the agent
institution was found not to have a composite condition of
outstanding or good or was determined to be not well
capitalized.
``(B) Covered deposit.--The term `covered deposit' means a
deposit that--
``(i) is submitted for placement through a deposit
placement network by an agent institution; and
``(ii) does not consist of funds that were obtained for the
agent institution, directly or indirectly, by or through a
deposit broker before submission for placement through a
deposit placement network.
``(C) Deposit placement network.--The term `deposit
placement network' means a network in which an insured
depository institution participates, together with other
insured depository institutions, for the processing and
receipt of reciprocal deposits.
``(D) Network member bank.--The term `network member bank'
means an insured depository institution that is a member of a
deposit placement network.
``(E) Reciprocal deposits.--The term `reciprocal deposits'
means deposits received by an agent institution through a
deposit placement network with the same maturity (if any) and
in the same aggregate amount as covered deposits placed by
the agent institution in other network member banks.
``(F) Well capitalized.--The term `well capitalized' has
the meaning given the term in section 38(b)(1).''.
(b) Interest Rate Restriction.--Section 29 of the Federal
Deposit Insurance Act (12 U.S.C. 1831f) is amended by
striking subsection (e) and inserting the following:
``(e) Restriction on Interest Rate Paid.--
``(1) Definitions.--In this subsection--
``(A) the terms `agent institution', `reciprocal deposits',
and `well capitalized' have the meanings given those terms in
subsection (i); and
``(B) the term `covered insured depository institution'
means an insured depository institution that--
``(i) under subsection (c) or (d), accepts funds obtained,
directly or indirectly, by or through a deposit broker; or
``(ii) while acting as an agent institution under
subsection (i), accepts reciprocal deposits while not well
capitalized.
``(2) Prohibition.--A covered insured depository
institution may not pay a rate of interest on funds or
reciprocal deposits described in paragraph (1) that, at the
time that the funds or reciprocal deposits are accepted,
significantly exceeds the limit set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of
interest referred to in paragraph (2) shall be--
``(A) the rate paid on deposits of similar maturity in the
normal market area of the covered insured depository
institution for deposits accepted in the normal market area
of the covered insured depository institution; or
``(B) the national rate paid on deposits of comparable
maturity, as established by the Corporation, for deposits
accepted outside the normal market area of the covered
insured depository institution.''.
SEC. 203. COMMUNITY BANK RELIEF.
Section 13(h)(1) of the Bank Holding Company Act of 1956
(12 U.S.C. 1851(h)(1)) is amended--
(1) in subparagraph (D), by redesignating clauses (i) and
(ii) as subclauses (I) and (II), respectively, and adjusting
the margins accordingly;
(2) by redesignating subparagraphs (A) through (D) as
clauses (i) through (iv), respectively, and adjusting the
margins accordingly;
(3) in the matter preceding clause (i), as so redesignated,
in the second sentence, by striking ``institution that
functions solely in a trust or fiduciary capacity, if--'' and
inserting the following: ``institution--
``(A) that functions solely in a trust or fiduciary
capacity, if--'';
(4) in clause (iv)(II), as so redesignated, by striking the
period at the end and inserting ``; or''; and
(5) by adding at the end the following:
``(B) that does not have and is not controlled by a company
that has--
``(i) more than $10,000,000,000 in total consolidated
assets; and
``(ii) total trading assets and trading liabilities, as
reported on the most recent applicable regulatory filing
filed by the institution, that are more than 5 percent of
total consolidated assets.''.
SEC. 204. REMOVING NAMING RESTRICTIONS.
Section 13 of the Bank Holding Company Act of 1956 (12
U.S.C. 1851) is amended--
(1) in subsection (d)(1)(G)(vi), by inserting before the
semicolon the following: ``, except that the hedge fund or
private equity fund may share the same name or a variation of
the same name as a banking entity that is an investment
adviser to the hedge fund or private equity fund, if--
``(I) such investment adviser is not an insured depository
institution, a company that controls an insured depository
institution, or a company that is treated as a bank holding
company for purposes of section 8 of the International
Banking Act of 1978 (12 U.S.C. 3106);
``(II) such investment adviser does not share the same name
or a variation of the same name as an insured depository
institution, any company that controls an insured depository
institution, or any company that is treated as a bank holding
company for purposes of section 8 of the International
Banking Act of 1978 (12 U.S.C. 3106); and
``(III) such name does not contain the word `bank' ''; and
(2) in subsection (h)(5)(C), by inserting before the period
the following: ``, except as permitted under subsection
(d)(1)(G)(vi)''.
SEC. 205. SHORT FORM CALL REPORTS.
Section 7(a) of the Federal Deposit Insurance Act (12
U.S.C. 1817(a)) is amended by adding at the end the
following:
``(12) Short form reporting.--
``(A) In general.--The appropriate Federal banking agencies
shall issue regulations that allow for a reduced reporting
requirement for a covered depository institution when the
institution makes the first and third report of condition for
a year, as required under paragraph (3).
``(B) Definition.--In this paragraph, the term `covered
depository institution' means an insured depository
institution that--
``(i) has less than $5,000,000,000 in total consolidated
assets; and
``(ii) satisfies such other criteria as the appropriate
Federal banking agencies determine appropriate.''.
SEC. 206. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO OPERATE
AS COVERED SAVINGS ASSOCIATIONS.
The Home Owners' Loan Act (12 U.S.C. 1461 et seq.) is
amended by inserting after section 5 (12 U.S.C. 1464) the
following:
``SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS
ASSOCIATION.
``(a) Definition.--In this section, the term `covered
savings association' means a Federal savings association that
makes an election that is approved under subsection (b).
``(b) Election.--
``(1) In general.--In accordance with the rules issued
under subsection (f), a Federal savings association with
total consolidated assets equal to or less than
$20,000,000,000, as reported by the association to the
Comptroller as of December 31, 2017, may elect to operate as
a covered savings association by submitting a notice to the
Comptroller of that election.
``(2) Approval.--A Federal savings association shall be
deemed to be approved to operate as a covered savings
association beginning on the date that is 60 days after the
date on which the Comptroller receives the notice submitted
under paragraph (1), unless the Comptroller notifies the
Federal savings association that the Federal savings
association is not eligible.
``(c) Rights and Duties.--Notwithstanding any other
provision of law, and except as otherwise provided in this
section, a covered savings association shall--
``(1) have the same rights and privileges as a national
bank that has the main office of the national bank situated
in the same location as the home office of the covered
savings association; and
``(2) be subject to the same duties, restrictions,
penalties, liabilities, conditions, and limitations that
would apply to a national bank described in paragraph (1).
``(d) Treatment of Covered Savings Associations.--A covered
savings association shall be treated as a Federal savings
association for the purposes--
[[Page H4325]]
``(1) of governance of the covered savings association,
including incorporation, bylaws, boards of directors,
shareholders, and distribution of dividends;
``(2) of consolidation, merger, dissolution, conversion
(including conversion to a stock bank or to another charter),
conservatorship, and receivership; and
``(3) determined by regulation of the Comptroller.
``(e) Existing Branches.--A covered savings association may
continue to operate any branch or agency that the covered
savings association operated on the date on which an election
under subsection (b) is approved.
``(f) Rule Making.--The Comptroller shall issue rules to
carry out this section--
``(1) that establish streamlined standards and procedures
that clearly identify required documentation and timelines
for an election under subsection (b);
``(2) that require a Federal savings association that makes
an election under subsection (b) to identify specific assets
and subsidiaries that--
``(A) do not conform to the requirements for assets and
subsidiaries of a national bank; and
``(B) are held by the Federal savings association on the
date on which the Federal savings association submits a
notice of the election;
``(3) that establish--
``(A) a transition process for bringing the assets and
subsidiaries described in paragraph (2) into conformance with
the requirements for a national bank; and
``(B) procedures for allowing the Federal savings
association to submit to the Comptroller an application to
continue to hold assets and subsidiaries described in
paragraph (2) after electing to operate as a covered savings
association;
``(4) that establish standards and procedures to allow a
covered savings association to--
``(A) terminate an election under subsection (b) after an
appropriate period of time; and
``(B) make a subsequent election under subsection (b) after
terminating an election under subparagraph (A);
``(5) that clarify requirements for the treatment of
covered savings associations, including the provisions of law
that apply to covered savings associations; and
``(6) as the Comptroller determines necessary in the
interests of safety and soundness.
``(g) Grandfathered Covered Savings Associations.--Subject
to the rules issued under subsection (f), a covered savings
association may continue to operate as a covered savings
association if, after the date on which the election is made
under subsection (b), the covered savings association has
total consolidated assets greater than $20,000,000,000.''.
SEC. 207. SMALL BANK HOLDING COMPANY POLICY STATEMENT.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Board of Governors
of the Federal Reserve System.
(2) Savings and loan holding company.--The term ``savings
and loan holding company'' has the meaning given the term in
section 10(a) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)).
(b) Changes Required to Small Bank Holding Company Policy
Statement on Assessment of Financial and Managerial
Factors.--Not later than 180 days after the date of enactment
of this Act, the Board shall revise appendix C to part 225 of
title 12, Code of Federal Regulations (commonly known as the
``Small Bank Holding Company and Savings and Loan Holding
Company Policy Statement''), to raise the consolidated asset
threshold under that appendix from $1,000,000,000 to
$3,000,000,000 for any bank holding company or savings and
loan holding company that--
(1) is not engaged in significant nonbanking activities
either directly or through a nonbank subsidiary;
(2) does not conduct significant off-balance sheet
activities (including securitization and asset management or
administration) either directly or through a nonbank
subsidiary; and
(3) does not have a material amount of debt or equity
securities outstanding (other than trust preferred
securities) that are registered with the Securities and
Exchange Commission.
(c) Exclusions.--The Board may exclude any bank holding
company or savings and loan holding company, regardless of
asset size, from the revision under subsection (b) if the
Board determines that such action is warranted for
supervisory purposes.
(d) Conforming Amendment.--Section 171(b)(5) of the
Financial Stability Act of 2010 (12 U.S.C. 5371(b)(5)) is
amended by striking subparagraph (C) and inserting the
following:
``(C) any bank holding company or savings and loan holding
company that is subject to the application of appendix C to
part 225 of title 12, Code of Federal Regulations (commonly
known as the `Small Bank Holding Company and Savings and Loan
Holding Company Policy Statement').''.
SEC. 208. APPLICATION OF THE EXPEDITED FUNDS AVAILABILITY
ACT.
(a) In General.--The Expedited Funds Availability Act (12
U.S.C. 4001 et seq.) is amended--
(1) in section 602 (12 U.S.C. 4001)--
(A) in paragraph (20), by inserting ``, located in the
United States,'' after ``ATM'';
(B) in paragraph (21), by inserting ``American Samoa, the
Commonwealth of the Northern Mariana Islands, Guam,'' after
``Puerto Rico,''; and
(C) in paragraph (23), by inserting ``American Samoa, the
Commonwealth of the Northern Mariana Islands, Guam,'' after
``Puerto Rico,''; and
(2) in section 603(d)(2)(A) (12 U.S.C. 4002(d)(2)(A)), by
inserting ``American Samoa, the Commonwealth of the Northern
Mariana Islands, Guam,'' after ``Puerto Rico,''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date that is 30 days after the date
of enactment of this Act.
SEC. 209. SMALL PUBLIC HOUSING AGENCIES.
(a) Small Public Housing Agencies.--Title I of the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended by adding at the end the following:
``SEC. 38. SMALL PUBLIC HOUSING AGENCIES.
``(a) Definitions.--In this section:
``(1) Housing voucher program.--The term `housing voucher
program' means a program for tenant-based assistance under
section 8.
``(2) Small public housing agency.--The term `small public
housing agency' means a public housing agency--
``(A) for which the sum of the number of public housing
dwelling units administered by the agency and the number of
vouchers under section 8(o) administered by the agency is 550
or fewer; and
``(B) that predominantly operates in a rural area, as
described in section 1026.35(b)(2)(iv)(A) of title 12, Code
of Federal Regulations.
``(3) Troubled small public housing agency.--The term
`troubled small public housing agency' means a small public
housing agency designated by the Secretary as a troubled
small public housing agency under subsection (c)(3).
``(b) Applicability.--Except as otherwise provided in this
section, a small public housing agency shall be subject to
the same requirements as a public housing agency.
``(c) Program Inspections and Evaluations.--
``(1) Public housing projects.--
``(A) Frequency of inspections by secretary.--The Secretary
shall carry out an inspection of the physical condition of a
small public housing agency's public housing projects not
more frequently than once every 3 years, unless the agency
has been designated by the Secretary as a troubled small
public housing agency based on deficiencies in the physical
condition of its public housing projects. Nothing contained
in this subparagraph relieves the Secretary from conducting
lead safety inspections or assessments in accordance with
procedures established by the Secretary under section 302 of
the Lead-Based Paint Poisoning Prevention Act (42 U.S.C.
4822).
``(B) Standards.--The Secretary shall apply to small public
housing agencies the same standards for the acceptable
condition of public housing projects that apply to projects
assisted under section 8.
``(2) Housing voucher program.--Except as required by
section 8(o)(8)(F), a small public housing agency
administering assistance under section 8(o) shall make
periodic physical inspections of each assisted dwelling unit
not less frequently than once every 3 years to determine
whether the unit is maintained in accordance with the
requirements under section 8(o)(8)(A). Nothing contained in
this paragraph relieves a small public housing agency from
conducting lead safety inspections or assessments in
accordance with procedures established by the Secretary under
section 302 of the Lead-Based Paint Poisoning Prevention Act
(42 U.S.C. 4822).
``(3) Troubled small public housing agencies.--
``(A) Public housing program.--Notwithstanding any other
provision of law, the Secretary may designate a small public
housing agency as a troubled small public housing agency with
respect to the public housing program of the small public
housing agency if the Secretary determines that the agency
has failed to maintain the public housing units of the small
public housing agency in a satisfactory physical condition,
based upon an inspection conducted by the Secretary.
``(B) Housing voucher program.--Notwithstanding any other
provision of law, the Secretary may designate a small public
housing agency as a troubled small public housing agency with
respect to the housing voucher program of the small public
housing agency if the Secretary determines that the agency
has failed to comply with the inspection requirements under
paragraph (2).
``(C) Appeals.--
``(i) Establishment.--The Secretary shall establish an
appeals process under which a small public housing agency may
dispute a designation as a troubled small public housing
agency.
``(ii) Official.--The appeals process established under
clause (i) shall provide for a decision by an official who
has not been involved, and is not subordinate to a person who
has been involved, in the original determination to designate
a small public housing agency as a troubled small public
housing agency.
``(D) Corrective action agreement.--
``(i) Agreement required.--Not later than 60 days after the
date on which a small public housing agency is designated as
a troubled public housing agency under subparagraph (A) or
(B), the Secretary and the small
[[Page H4326]]
public housing agency shall enter into a corrective action
agreement under which the small public housing agency shall
undertake actions to correct the deficiencies upon which the
designation is based.
``(ii) Terms of agreement.--A corrective action agreement
entered into under clause (i) shall--
``(I) have a term of 1 year, and shall be renewable at the
option of the Secretary;
``(II) provide, where feasible, for technical assistance to
assist the public housing agency in curing its deficiencies;
``(III) provide for--
``(aa) reconsideration of the designation of the small
public housing agency as a troubled small public housing
agency not less frequently than annually; and
``(bb) termination of the agreement when the Secretary
determines that the small public housing agency is no longer
a troubled small public housing agency; and
``(IV) provide that in the event of substantial
noncompliance by the small public housing agency under the
agreement, the Secretary may--
``(aa) contract with another public housing agency or a
private entity to manage the public housing of the troubled
small public housing agency;
``(bb) withhold funds otherwise distributable to the
troubled small public housing agency;
``(cc) assume possession of, and direct responsibility for,
managing the public housing of the troubled small public
housing agency;
``(dd) petition for the appointment of a receiver, in
accordance with section 6(j)(3)(A)(ii); and
``(ee) exercise any other remedy available to the Secretary
in the event of default under the public housing annual
contributions contract entered into by the small public
housing agency under section 5.
``(E) Emergency actions.--Nothing in this paragraph may be
construed to prohibit the Secretary from taking any emergency
action necessary to protect Federal financial resources or
the health or safety of residents of public housing projects.
``(d) Reduction of Administrative Burdens.--
``(1) Exemption.--Notwithstanding any other provision of
law, a small public housing agency shall be exempt from any
environmental review requirements with respect to a
development or modernization project having a total cost of
not more than $100,000.
``(2) Streamlined procedures.--The Secretary shall, by
rule, establish streamlined procedures for environmental
reviews of small public housing agency development and
modernization projects having a total cost of more than
$100,000.''.
(b) Energy Conservation.--Section 9(e)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437g(e)(2)) is amended
by adding at the end the following:
``(D) Freeze of consumption levels.--
``(i) In general.--A small public housing agency, as
defined in section 38(a), may elect to be paid for its
utility and waste management costs under the formula for a
period, at the discretion of the small public housing agency,
of not more than 20 years based on the small public housing
agency's average annual consumption during the 3-year period
preceding the year in which the election is made (in this
subparagraph referred to as the `consumption base level').
``(ii) Initial adjustment in consumption base level.--The
Secretary shall make an initial one-time adjustment in the
consumption base level to account for differences in the
heating degree day average over the most recent 20-year
period compared to the average in the consumption base level.
``(iii) Adjustments in consumption base level.--The
Secretary shall make adjustments in the consumption base
level to account for an increase or reduction in units, a
change in fuel source, a change in resident controlled
electricity consumption, or for other reasons.
``(iv) Savings.--All cost savings resulting from an
election made by a small public housing agency under this
subparagraph--
``(I) shall accrue to the small public housing agency; and
``(II) may be used for any public housing purpose at the
discretion of the small public housing agency.
``(v) Third parties.--A small public housing agency making
an election under this subparagraph--
``(I) may use, but shall not be required to use, the
services of a third party in its energy conservation program;
and
``(II) shall have the sole discretion to determine the
source, and terms and conditions, of any financing used for
its energy conservation program.''.
(c) Reporting by Agencies Operating in Consortia.--Not
later than 180 days after the date of enactment of this Act,
the Secretary of Housing and Urban Development shall develop
and deploy all electronic information systems necessary to
accommodate full consolidated reporting by public housing
agencies, as defined in section 3(b)(6) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(6)), electing to
operate in consortia under section 13(a) of such Act (42
U.S.C. 1437k(a)).
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the date that is 60 days after
the date of enactment of this Act.
(e) Shared Waiting Lists.--Not later than 1 year after the
date of enactment of this Act, the Secretary of Housing and
Urban Development shall make available to interested public
housing agencies and owners of multifamily properties
receiving assistance from the Department of Housing and Urban
Development 1 or more software programs that will facilitate
the voluntary use of a shared waiting list by multiple public
housing agencies or owners receiving assistance, and shall
publish on the website of the Department of Housing and Urban
Development procedural guidance for implementing shared
waiting lists that includes information on how to obtain the
software.
SEC. 210. EXAMINATION CYCLE.
Section 10(d) of the Federal Deposit Insurance Act (12
U.S.C. 1820(d)) is amended--
(1) in paragraph (4)(A), by striking ``$1,000,000,000'' and
inserting ``$3,000,000,000''; and
(2) in paragraph (10), by striking ``$1,000,000,000'' and
inserting ``$3,000,000,000''.
SEC. 211. INTERNATIONAL INSURANCE CAPITAL STANDARDS
ACCOUNTABILITY.
(a) Findings.--Congress finds that--
(1) the Secretary of the Treasury, Board of Governors of
the Federal Reserve System, and Director of the Federal
Insurance Office shall support increasing transparency at any
global insurance or international standard-setting regulatory
or supervisory forum in which they participate, including
supporting and advocating for greater public observer access
to working groups and committee meetings of the International
Association of Insurance Supervisors; and
(2) to the extent that the Secretary of the Treasury, the
Board of Governors of the Federal Reserve System, and the
Director of the Federal Insurance Office take a position or
reasonably intend to take a position with respect to an
insurance proposal by a global insurance regulatory or
supervisory forum, the Secretary of the Treasury, the Board
of Governors of the Federal Reserve System, and the Director
of the Federal Insurance Office shall achieve consensus
positions with State insurance regulators through the
National Association of Insurance Commissioners, when they
are United States participants in negotiations on insurance
issues before the International Association of Insurance
Supervisors, Financial Stability Board, or any other
international forum of financial regulators or supervisors
that considers such issues.
(b) Insurance Policy Advisory Committee.--
(1) Establishment.--There is established the Insurance
Policy Advisory Committee on International Capital Standards
and Other Insurance Issues at the Board of Governors of the
Federal Reserve System.
(2) Membership.--The Committee shall be composed of not
more than 21 members, all of whom represent a diverse set of
expert perspectives from the various sectors of the United
States insurance industry, including life insurance, property
and casualty insurance and reinsurance, agents and brokers,
academics, consumer advocates, or experts on issues facing
underserved insurance communities and consumers.
(c) Reports.--
(1) Reports and testimony by secretary of the treasury and
chairman of the federal reserve.--
(A) In general.--The Secretary of the Treasury and the
Chairman of the Board of Governors of the Federal Reserve
System, or their designee, shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the
Committee on Financial Services of the House of
Representatives, an annual report and provide annual
testimony to the Committee on Banking, Housing, and Urban
Affairs of the Senate, and the Committee on Financial
Services of the House of Representatives on the efforts of
the Secretary and the Chairman with the National Association
of Insurance Commissioners with respect to global insurance
regulatory or supervisory forums, including--
(i) a description of the insurance regulatory or
supervisory standard-setting issues under discussion at
international standard-setting bodies, including the
Financial Stability Board and the International Association
of Insurance Supervisors;
(ii) a description of the effects that proposals discussed
at international insurance regulatory or supervisory forums
of insurance could have on consumer and insurance markets in
the United States;
(iii) a description of any position taken by the Secretary
of the Treasury, the Board of Governors of the Federal
Reserve System, and the Director of the Federal Insurance
Office in international insurance discussions; and
(iv) a description of the efforts by the Secretary of the
Treasury, the Board of Governors of the Federal Reserve
System, and the Director of the Federal Insurance Office to
increase transparency at the Financial Stability Board with
respect to insurance proposals and the International
Association of Insurance Supervisors, including efforts to
provide additional public access to working groups and
committees of the International Association of Insurance
Supervisors.
(B) Termination.--This paragraph shall terminate on
December 31, 2024.
(2) Reports and testimony by national association of
insurance commissioners.--The National Association of
Insurance Commissioners may provide testimony to Congress on
the issues described in paragraph (1)(A).
[[Page H4327]]
(3) Joint report by the chairman of the federal reserve and
the director of the federal insurance office.--
(A) In general.--The Secretary of the Treasury, the
Chairman of the Board of Governors of the Federal Reserve
System, and the Director of the Federal Insurance Office
shall, in consultation with the National Association of
Insurance Commissioners, complete a study on, and submit to
Congress a report on the results of the study, the impact on
consumers and markets in the United States before supporting
or consenting to the adoption of any final international
insurance capital standard.
(B) Notice and comment.--
(i) Notice.--The Secretary of the Treasury, the Chairman of
the Board of Governors of the Federal Reserve System, and the
Director of the Federal Insurance Office shall provide public
notice before the date on which drafting a report required
under subparagraph (A) is commenced and after the date on
which the draft of the report is completed.
(ii) Opportunity for comment.--There shall be an
opportunity for public comment for a period beginning on the
date on which the report is submitted under subparagraph (A)
and ending on the date that is 60 days after the date on
which the report is submitted.
(C) Review by comptroller general.--The Secretary of the
Treasury, Chairman of the Board of Governors of the Federal
Reserve System, and the Director of the Federal Insurance
Office shall submit to the Comptroller General of the United
States the report described in subparagraph (A) for review.
(4) Report on increase in transparency.--Not later than 180
days after the date of enactment of this Act, the Chairman of
the Board of Governors of the Federal Reserve System and the
Secretary of the Treasury, or their designees, shall submit
to Congress a report and provide testimony to Congress on the
efforts of the Chairman and the Secretary to increase
transparency at meetings of the International Association of
Insurance Supervisors.
SEC. 212. BUDGET TRANSPARENCY FOR THE NCUA.
Section 209(b) of the Federal Credit Union Act (12 U.S.C.
1789(b)) is amended--
(1) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively;
(2) by inserting before paragraph (2), as so redesignated,
the following:
``(1) on an annual basis and prior to the submission of the
detailed business-type budget required under paragraph (2)--
``(A) make publicly available and publish in the Federal
Register a draft of the detailed business-type budget; and
``(B) hold a public hearing, with public notice provided of
the hearing, during which the public may submit comments on
the draft of the detailed business-type budget;''; and
(3) in paragraph (2), as so redesignated--
(A) by inserting ``detailed'' after ``submit a''; and
(B) by inserting ``, which shall address any comment
submitted by the public under paragraph (1)(B)'' after
``Control Act''.
SEC. 213. MAKING ONLINE BANKING INITIATION LEGAL AND EASY.
(a) Definitions.--In this section:
(1) Affiliate.--The term ``affiliate'' has the meaning
given the term in section 2 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841).
(2) Driver's license.--The term ``driver's license'' means
a license issued by a State to an individual that authorizes
the individual to operate a motor vehicle on public streets,
roads, or highways.
(3) Federal bank secrecy laws.--The term ``Federal bank
secrecy laws'' means--
(A) section 21 of the Federal Deposit Insurance Act (12
U.S.C. 1829b);
(B) section 123 of Public Law 91-508 (12 U.S.C. 1953); and
(C) subchapter II of chapter 53 of title 31, United States
Code.
(4) Financial institution.--The term ``financial
institution'' means--
(A) an insured depository institution;
(B) an insured credit union; or
(C) any affiliate of an insured depository institution or
insured credit union.
(5) Financial product or service.--The term ``financial
product or service'' has the meaning given the term in
section 1002 of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5481).
(6) Insured credit union.--The term ``insured credit
union'' has the meaning given the term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
(7) Insured depository institution.--The term ``insured
depository institution'' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(8) Online service.--The term ``online service'' means any
Internet-based service, such as a website or mobile
application.
(9) Personal identification card.--The term ``personal
identification card'' means an identification document issued
by a State or local government to an individual solely for
the purpose of identification of that individual.
(10) Personal information.--The term ``personal
information'' means the information displayed on or
electronically encoded on a driver's license or personal
identification card that is reasonably necessary to fulfill
the purpose and uses permitted by subsection (b).
(11) Scan.--The term ``scan'' means the act of using a
device or software to decipher, in an electronically readable
format, personal information displayed on or electronically
encoded on a driver's license or personal identification
card.
(12) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, and any other commonwealth, possession, or
territory of the United States.
(b) Use of a Driver's License or Personal Identification
Card.--
(1) In general.--When an individual initiates a request
through an online service to open an account with a financial
institution or obtain a financial product or service from a
financial institution, the financial institution may record
personal information from a scan of the driver's license or
personal identification card of the individual, or make a
copy or receive an image of the driver's license or personal
identification card of the individual, and store or retain
such information in any electronic format for the purposes
described in paragraph (2).
(2) Uses of information.--Except as required to comply with
Federal bank secrecy laws, a financial institution may only
use the information obtained under paragraph (1)--
(A) to verify the authenticity of the driver's license or
personal identification card;
(B) to verify the identity of the individual; and
(C) to comply with a legal requirement to record, retain,
or transmit the personal information in connection with
opening an account or obtaining a financial product or
service.
(3) Deletion of image.--A financial institution that makes
a copy or receives an image of a driver's license or personal
identification card of an individual in accordance with
paragraphs (1) and (2) shall, after using the image for the
purposes described in paragraph (2), permanently delete--
(A) any image of the driver's license or personal
identification card, as applicable; and
(B) any copy of any such image.
(4) Disclosure of personal information.--Nothing in this
section shall be construed to amend, modify, or otherwise
affect any State or Federal law that governs a financial
institution's disclosure and security of personal information
that is not publicly available.
(c) Relation to State Law.--The provisions of this section
shall preempt and supersede any State law that conflicts with
a provision of this section, but only to the extent of such
conflict.
SEC. 214. PROMOTING CONSTRUCTION AND DEVELOPMENT ON MAIN
STREET.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.)
is amended by adding at the end the following new section:
``SEC. 51. CAPITAL REQUIREMENTS FOR CERTAIN ACQUISITION,
DEVELOPMENT, OR CONSTRUCTION LOANS.
``(a) In General.--The appropriate Federal banking agencies
may only require a depository institution to assign a
heightened risk weight to a high volatility commercial real
estate (HVCRE) exposure (as such term is defined under
section 324.2 of title 12, Code of Federal Regulations, as of
October 11, 2017, or if a successor regulation is in effect
as of the date of the enactment of this section, such term or
any successor term contained in such successor regulation)
under any risk-based capital requirement if such exposure is
an HVCRE ADC loan.
``(b) HVCRE ADC Loan Defined.--For purposes of this section
and with respect to a depository institution, the term `HVCRE
ADC loan'--
``(1) means a credit facility secured by land or improved
real property that, prior to being reclassified by the
depository institution as a non-HVCRE ADC loan pursuant to
subsection (d)--
``(A) primarily finances, has financed, or refinances the
acquisition, development, or construction of real property;
``(B) has the purpose of providing financing to acquire,
develop, or improve such real property into income-producing
real property; and
``(C) is dependent upon future income or sales proceeds
from, or refinancing of, such real property for the repayment
of such credit facility;
``(2) does not include a credit facility financing--
``(A) the acquisition, development, or construction of
properties that are--
``(i) one- to four-family residential properties;
``(ii) real property that would qualify as an investment in
community development; or
``(iii) agricultural land;
``(B) the acquisition or refinance of existing income-
producing real property secured by a mortgage on such
property, if the cash flow being generated by the real
property is sufficient to support the debt service and
expenses of the real property, in accordance with the
institution's applicable loan underwriting criteria for
permanent financings;
``(C) improvements to existing income-producing improved
real property secured by a mortgage on such property, if the
cash flow being generated by the real property is sufficient
to support the debt service and expenses of the real
property, in accordance with the institution's applicable
loan underwriting criteria for permanent financings; or
``(D) commercial real property projects in which--
[[Page H4328]]
``(i) the loan-to-value ratio is less than or equal to the
applicable maximum supervisory loan-to-value ratio as
determined by the appropriate Federal banking agency;
``(ii) the borrower has contributed capital of at least 15
percent of the real property's appraised, `as completed'
value to the project in the form of--
``(I) cash;
``(II) unencumbered readily marketable assets;
``(III) paid development expenses out-of-pocket; or
``(IV) contributed real property or improvements; and
``(iii) the borrower contributed the minimum amount of
capital described under clause (ii) before the depository
institution advances funds (other than the advance of a
nominal sum made in order to secure the depository
institution's lien against the real property) under the
credit facility, and such minimum amount of capital
contributed by the borrower is contractually required to
remain in the project until the credit facility has been
reclassified by the depository institution as a non-HVCRE ADC
loan under subsection (d);
``(3) does not include any loan made prior to January 1,
2015; and
``(4) does not include a credit facility reclassified as a
non-HVCRE ADC loan under subsection (d).
``(c) Value of Contributed Real Property.--For purposes of
this section, the value of any real property contributed by a
borrower as a capital contribution shall be the appraised
value of the property as determined under standards
prescribed pursuant to section 1110 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3339), in connection with the extension of the
credit facility or loan to such borrower.
``(d) Reclassification as a Non-HVRCE ADC Loan.--For
purposes of this section and with respect to a credit
facility and a depository institution, upon--
``(1) the substantial completion of the development or
construction of the real property being financed by the
credit facility; and
``(2) cash flow being generated by the real property being
sufficient to support the debt service and expenses of the
real property,
in accordance with the institution's applicable loan
underwriting criteria for permanent financings, the credit
facility may be reclassified by the depository institution as
a Non-HVCRE ADC loan.
``(e) Existing Authorities.--Nothing in this section shall
limit the supervisory, regulatory, or enforcement authority
of an appropriate Federal banking agency to further the safe
and sound operation of an institution under the supervision
of the appropriate Federal banking agency.''.
SEC. 215. REDUCING IDENTITY FRAUD.
(a) Purpose.--The purpose of this section is to reduce the
prevalence of synthetic identity fraud, which
disproportionally affects vulnerable populations, such as
minors and recent immigrants, by facilitating the validation
by permitted entities of fraud protection data, pursuant to
electronically received consumer consent, through use of a
database maintained by the Commissioner.
(b) Definitions.--In this section:
(1) Commissioner.--The term ``Commissioner'' means the
Commissioner of the Social Security Administration.
(2) Financial institution.--The term ``financial
institution'' has the meaning given the term in section 509
of the Gramm-Leach-Bliley Act (15 U.S.C. 6809).
(3) Fraud protection data.--The term ``fraud protection
data'' means a combination of the following information with
respect to an individual:
(A) The name of the individual (including the first name
and any family forename or surname of the individual).
(B) The social security number of the individual.
(C) The date of birth (including the month, day, and year)
of the individual.
(4) Permitted entity.--The term ``permitted entity'' means
a financial institution or a service provider, subsidiary,
affiliate, agent, subcontractor, or assignee of a financial
institution.
(c) Efficiency.--
(1) Reliance on existing methods.--The Commissioner shall
evaluate the feasibility of making modifications to any
database that is in existence as of the date of enactment of
this Act or a similar resource such that the database or
resource--
(A) is reasonably designed to effectuate the purpose of
this section; and
(B) meets the requirements of subsection (d).
(2) Execution.--The Commissioner shall make the
modifications necessary to any database that is in existence
as of the date of enactment of this Act or similar resource,
or develop a database or similar resource, to effectuate the
requirements described in paragraph (1).
(d) Protection of Vulnerable Consumers.--The database or
similar resource described in subsection (c) shall--
(1) compare fraud protection data provided in an inquiry by
a permitted entity against such information maintained by the
Commissioner in order to confirm (or not confirm) the
validity of the information provided;
(2) be scalable and accommodate reasonably anticipated
volumes of verification requests from permitted entities with
commercially reasonable uptime and availability; and
(3) allow permitted entities to submit--
(A) 1 or more individual requests electronically for real-
time machine-to-machine (or similar functionality) accurate
responses; and
(B) multiple requests electronically, such as those
provided in a batch format, for accurate electronic responses
within a reasonable period of time from submission, not to
exceed 24 hours.
(e) Certification Required.--Before providing confirmation
of fraud protection data to a permitted entity, the
Commissioner shall ensure that the Commissioner has a
certification from the permitted entity that is dated not
more than 2 years before the date on which that confirmation
is provided that includes the following declarations:
(1) The entity is a permitted entity.
(2) The entity is in compliance with this section.
(3) The entity is, and will remain, in compliance with its
privacy and data security requirements, as described in title
V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.),
with respect to information the entity receives from the
Commissioner pursuant to this section.
(4) The entity will retain sufficient records to
demonstrate its compliance with its certification and this
section for a period of not less than 2 years.
(f) Consumer Consent.--
(1) In general.--Notwithstanding any other provision of law
or regulation, a permitted entity may submit a request to the
database or similar resource described in subsection (c)
only--
(A) pursuant to the written, including electronic, consent
received by a permitted entity from the individual who is the
subject of the request; and
(B) in connection with a credit transaction or any
circumstance described in section 604 of the Fair Credit
Reporting Act (15 U.S.C. 1681b).
(2) Electronic consent requirements.--For a permitted
entity to use the consent of an individual received
electronically pursuant to paragraph (1)(A), the permitted
entity must obtain the individual's electronic signature, as
defined in section 106 of the Electronic Signatures in Global
and National Commerce Act (15 U.S.C. 7006).
(3) Effectuating electronic consent.--No provision of law
or requirement, including section 552a of title 5, United
States Code, shall prevent the use of electronic consent for
purposes of this subsection or for use in any other consent
based verification under the discretion of the Commissioner.
(g) Compliance and Enforcement.--
(1) Audits and monitoring.--The Commissioner may--
(A) conduct audits and monitoring to--
(i) ensure proper use by permitted entities of the database
or similar resource described in subsection (c); and
(ii) deter fraud and misuse by permitted entities with
respect to the database or similar resource described in
subsection (c); and
(B) terminate services for any permitted entity that
prevents or refuses to allow the Commissioner to carry out
the activities described in subparagraph (A).
(2) Enforcement.--
(A) In general.--Notwithstanding any other provision of
law, including the matter preceding paragraph (1) of section
505(a) of the Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)), any
violation of this section and any certification made under
this section shall be enforced in accordance with paragraphs
(1) through (7) of such section 505(a) by the agencies
described in those paragraphs.
(B) Relevant information.--Upon discovery by the
Commissioner, pursuant to an audit described in paragraph
(1), of any violation of this section or any certification
made under this section, the Commissioner shall forward any
relevant information pertaining to that violation to the
appropriate agency described in subparagraph (A) for
evaluation by the agency for purposes of enforcing this
section.
(h) Recovery of Costs.--
(1) In general.--
(A) In general.--Amounts obligated to carry out this
section shall be fully recovered from the users of the
database or verification system by way of advances,
reimbursements, user fees, or other recoveries as determined
by the Commissioner. The funds recovered under this paragraph
shall be deposited as an offsetting collection to the account
providing appropriations for the Social Security
Administration, to be used for the administration of this
section without fiscal year limitation.
(B) Prices fixed by commissioner.--The Commissioner shall
establish the amount to be paid by the users under this
paragraph, including the costs of any services or work
performed, such as any appropriate upgrades, maintenance, and
associated direct and indirect administrative costs, in
support of carrying out the purposes described in this
section, by reimbursement or in advance as determined by the
Commissioner. The amount of such prices shall be periodically
adjusted by the Commissioner to ensure that amounts collected
are sufficient to fully offset the cost of the administration
of this section.
(2) Initial development.--The Commissioner shall not begin
development of a verification system to carry out this
section until the Commissioner determines that amounts equal
to at least 50 percent of program start-up costs have been
collected under paragraph (1).
[[Page H4329]]
(3) Existing resources.--The Commissioner may use funds
designated for information technology modernization to carry
out this section.
(4) Annual report.--The Commissioner shall annually submit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report on the amount of indirect costs to the Social Security
Administration arising as a result of the implementation of
this section.
SEC. 216. TREASURY REPORT ON RISKS OF CYBER THREATS.
Not later than 1 year after the date of enactment of this
Act, the Secretary of the Treasury shall submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives a report on the risks of cyber threats to
financial institutions and capital markets in the United
States, including--
(1) an assessment of the material risks of cyber threats to
financial institutions and capital markets in the United
States;
(2) the impact and potential effects of material cyber
attacks on financial institutions and capital markets in the
United States;
(3) an analysis of how the appropriate Federal banking
agencies and the Securities and Exchange Commission are
addressing the material risks of cyber threats described in
paragraph (1), including--
(A) how the appropriate Federal banking agencies and the
Securities and Exchange Commission are assessing those
threats;
(B) how the appropriate Federal banking agencies and the
Securities and Exchange Commission are assessing the cyber
vulnerabilities and preparedness of financial institutions;
(C) coordination amongst the appropriate Federal banking
agencies and the Securities and Exchange Commission, and
their coordination with other government agencies (including
with respect to regulations, examinations, lexicon,
duplication, and other regulatory tools); and
(D) areas for improvement; and
(4) a recommendation of whether any appropriate Federal
banking agency or the Securities and Exchange Commission
needs additional legal authorities or resources to adequately
assess and address the material risks of cyber threats
described in paragraph (1), given the analysis required by
paragraph (3).
SEC. 217. DISCRETIONARY SURPLUS FUNDS.
Section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C.
289(a)(3)(A)) is amended by striking ``$7,500,000,000'' and
inserting ``$6,825,000,000''.
TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS
SEC. 301. PROTECTING CONSUMERS' CREDIT.
(a) In General.--Section 605A of the Fair Credit Reporting
Act (15 U.S.C. 1681c-1) is amended--
(1) in subsection (a)(1)(A), by striking ``90 days'' and
inserting ``1 year''; and
(2) by adding at the end the following:
``(i) National Security Freeze.--
``(1) Definitions.--For purposes of this subsection:
``(A) The term `consumer reporting agency' means a consumer
reporting agency described in section 603(p).
``(B) The term `proper identification' has the meaning of
such term as used under section 610.
``(C) The term `security freeze' means a restriction that
prohibits a consumer reporting agency from disclosing the
contents of a consumer report that is subject to such
security freeze to any person requesting the consumer report.
``(2) Placement of security freeze.--
``(A) In general.--Upon receiving a direct request from a
consumer that a consumer reporting agency place a security
freeze, and upon receiving proper identification from the
consumer, the consumer reporting agency shall, free of
charge, place the security freeze not later than--
``(i) in the case of a request that is by toll-free
telephone or secure electronic means, 1 business day after
receiving the request directly from the consumer; or
``(ii) in the case of a request that is by mail, 3 business
days after receiving the request directly from the consumer.
``(B) Confirmation and additional information.--Not later
than 5 business days after placing a security freeze under
subparagraph (A), a consumer reporting agency shall--
``(i) send confirmation of the placement to the consumer;
and
``(ii) inform the consumer of--
``(I) the process by which the consumer may remove the
security freeze, including a mechanism to authenticate the
consumer; and
``(II) the consumer's right described in section
615(d)(1)(D).
``(C) Notice to third parties.--A consumer reporting agency
may advise a third party that a security freeze has been
placed with respect to a consumer under subparagraph (A).
``(3) Removal of security freeze.--
``(A) In general.--A consumer reporting agency shall remove
a security freeze placed on the consumer report of a consumer
only in the following cases:
``(i) Upon the direct request of the consumer.
``(ii) The security freeze was placed due to a material
misrepresentation of fact by the consumer.
``(B) Notice if removal not by request.--If a consumer
reporting agency removes a security freeze under subparagraph
(A)(ii), the consumer reporting agency shall notify the
consumer in writing prior to removing the security freeze.
``(C) Removal of security freeze by consumer request.--
Except as provided in subparagraph (A)(ii), a security freeze
shall remain in place until the consumer directly requests
that the security freeze be removed. Upon receiving a direct
request from a consumer that a consumer reporting agency
remove a security freeze, and upon receiving proper
identification from the consumer, the consumer reporting
agency shall, free of charge, remove the security freeze not
later than--
``(i) in the case of a request that is by toll-free
telephone or secure electronic means, 1 hour after receiving
the request for removal; or
``(ii) in the case of a request that is by mail, 3 business
days after receiving the request for removal.
``(D) Third-party requests.--If a third party requests
access to a consumer report of a consumer with respect to
which a security freeze is in effect, where such request is
in connection with an application for credit, and the
consumer does not allow such consumer report to be accessed,
the third party may treat the application as incomplete.
``(E) Temporary removal of security freeze.--Upon receiving
a direct request from a consumer under subparagraph (A)(i),
if the consumer requests a temporary removal of a security
freeze, the consumer reporting agency shall, in accordance
with subparagraph (C), remove the security freeze for the
period of time specified by the consumer.
``(4) Exceptions.--A security freeze shall not apply to the
making of a consumer report for use of the following:
``(A) A person or entity, or a subsidiary, affiliate, or
agent of that person or entity, or an assignee of a financial
obligation owed by the consumer to that person or entity, or
a prospective assignee of a financial obligation owed by the
consumer to that person or entity in conjunction with the
proposed purchase of the financial obligation, with which the
consumer has or had prior to assignment an account or
contract including a demand deposit account, or to whom the
consumer issued a negotiable instrument, for the purposes of
reviewing the account or collecting the financial obligation
owed for the account, contract, or negotiable instrument. For
purposes of this subparagraph, `reviewing the account'
includes activities related to account maintenance,
monitoring, credit line increases, and account upgrades and
enhancements.
``(B) Any Federal, State, or local agency, law enforcement
agency, trial court, or private collection agency acting
pursuant to a court order, warrant, or subpoena.
``(C) A child support agency acting pursuant to part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
``(D) A Federal agency or a State or its agents or assigns
acting to investigate fraud or acting to investigate or
collect delinquent taxes or unpaid court orders or to fulfill
any of its other statutory responsibilities, provided such
responsibilities are consistent with a permissible purpose
under section 604.
``(E) By a person using credit information for the purposes
described under section 604(c).
``(F) Any person or entity administering a credit file
monitoring subscription or similar service to which the
consumer has subscribed.
``(G) Any person or entity for the purpose of providing a
consumer with a copy of the consumer's consumer report or
credit score, upon the request of the consumer.
``(H) Any person using the information in connection with
the underwriting of insurance.
``(I) Any person using the information for employment,
tenant, or background screening purposes.
``(J) Any person using the information for assessing,
verifying, or authenticating a consumer's identity for
purposes other than the granting of credit, or for
investigating or preventing actual or potential fraud.
``(5) Notice of rights.--At any time a consumer is required
to receive a summary of rights required under section 609,
the following notice shall be included:
`` `Consumers Have the Right To Obtain a Security Freeze
`` `You have a right to place a ``security freeze'' on your
credit report, which will prohibit a consumer reporting
agency from releasing information in your credit report
without your express authorization. The security freeze is
designed to prevent credit, loans, and services from being
approved in your name without your consent. However, you
should be aware that using a security freeze to take control
over who gets access to the personal and financial
information in your credit report may delay, interfere with,
or prohibit the timely approval of any subsequent request or
application you make regarding a new loan, credit, mortgage,
or any other account involving the extension of credit.
`` `As an alternative to a security freeze, you have the
right to place an initial or extended fraud alert on your
credit file at no cost. An initial fraud alert is a 1-year
alert that is placed on a consumer's credit file. Upon seeing
a fraud alert display on a consumer's credit file, a business
is required to take steps to verify the consumer's identity
[[Page H4330]]
before extending new credit. If you are a victim of identity
theft, you are entitled to an extended fraud alert, which is
a fraud alert lasting 7 years.
`` `A security freeze does not apply to a person or entity,
or its affiliates, or collection agencies acting on behalf of
the person or entity, with which you have an existing account
that requests information in your credit report for the
purposes of reviewing or collecting the account. Reviewing
the account includes activities related to account
maintenance, monitoring, credit line increases, and account
upgrades and enhancements.'.
``(6) Webpage.--
``(A) Consumer reporting agencies.--A consumer reporting
agency shall establish a webpage that--
``(i) allows a consumer to request a security freeze;
``(ii) allows a consumer to request an initial fraud alert;
``(iii) allows a consumer to request an extended fraud
alert;
``(iv) allows a consumer to request an active duty fraud
alert;
``(v) allows a consumer to opt-out of the use of
information in a consumer report to send the consumer a
solicitation of credit or insurance, in accordance with
section 615(d); and
``(vi) shall not be the only mechanism by which a consumer
may request a security freeze.
``(B) FTC.--The Federal Trade Commission shall establish a
single webpage that includes a link to each webpage
established under subparagraph (A) within the Federal Trade
Commission's website www.Identitytheft.gov, or a successor
website.
``(j) National Protection for Files and Credit Records of
Protected Consumers.--
``(1) Definitions.--As used in this subsection:
``(A) The term `consumer reporting agency' means a consumer
reporting agency described in section 603(p).
``(B) The term `protected consumer' means an individual who
is--
``(i) under the age of 16 years at the time a request for
the placement of a security freeze is made; or
``(ii) an incapacitated person or a protected person for
whom a guardian or conservator has been appointed.
``(C) The term `protected consumer's representative' means
a person who provides to a consumer reporting agency
sufficient proof of authority to act on behalf of a protected
consumer.
``(D) The term `record' means a compilation of information
that--
``(i) identifies a protected consumer;
``(ii) is created by a consumer reporting agency solely for
the purpose of complying with this subsection; and
``(iii) may not be created or used to consider the
protected consumer's credit worthiness, credit standing,
credit capacity, character, general reputation, personal
characteristics, or mode of living.
``(E) The term `security freeze' means a restriction that
prohibits a consumer reporting agency from disclosing the
contents of a consumer report that is the subject of such
security freeze or, in the case of a protected consumer for
whom the consumer reporting agency does not have a file, a
record that is subject to such security freeze to any person
requesting the consumer report for the purpose of opening a
new account involving the extension of credit.
``(F) The term `sufficient proof of authority' means
documentation that shows a protected consumer's
representative has authority to act on behalf of a protected
consumer and includes--
``(i) an order issued by a court of law;
``(ii) a lawfully executed and valid power of attorney;
``(iii) a document issued by a Federal, State, or local
government agency in the United States showing proof of
parentage, including a birth certificate; or
``(iv) with respect to a protected consumer who has been
placed in a foster care setting, a written communication from
a county welfare department or its agent or designee, or a
county probation department or its agent or designee,
certifying that the protected consumer is in a foster care
setting under its jurisdiction.
``(G) The term `sufficient proof of identification' means
information or documentation that identifies a protected
consumer and a protected consumer's representative and
includes--
``(i) a social security number or a copy of a social
security card issued by the Social Security Administration;
``(ii) a certified or official copy of a birth certificate
issued by the entity authorized to issue the birth
certificate; or
``(iii) a copy of a driver's license, an identification
card issued by the motor vehicle administration, or any other
government issued identification.
``(2) Placement of security freeze for a protected
consumer.--
``(A) In general.--Upon receiving a direct request from a
protected consumer's representative that a consumer reporting
agency place a security freeze, and upon receiving sufficient
proof of identification and sufficient proof of authority,
the consumer reporting agency shall, free of charge, place
the security freeze not later than--
``(i) in the case of a request that is by toll-free
telephone or secure electronic means, 1 business day after
receiving the request directly from the protected consumer's
representative; or
``(ii) in the case of a request that is by mail, 3 business
days after receiving the request directly from the protected
consumer's representative.
``(B) Confirmation and additional information.--Not later
than 5 business days after placing a security freeze under
subparagraph (A), a consumer reporting agency shall--
``(i) send confirmation of the placement to the protected
consumer's representative; and
``(ii) inform the protected consumer's representative of
the process by which the protected consumer may remove the
security freeze, including a mechanism to authenticate the
protected consumer's representative.
``(C) Creation of file.--If a consumer reporting agency
does not have a file pertaining to a protected consumer when
the consumer reporting agency receives a direct request under
subparagraph (A), the consumer reporting agency shall create
a record for the protected consumer.
``(3) Prohibition on release of record or file of protected
consumer.--After a security freeze has been placed under
paragraph (2)(A), and unless the security freeze is removed
in accordance with this subsection, a consumer reporting
agency may not release the protected consumer's consumer
report, any information derived from the protected consumer's
consumer report, or any record created for the protected
consumer.
``(4) Removal of a protected consumer security freeze.--
``(A) In general.--A consumer reporting agency shall remove
a security freeze placed on the consumer report of a
protected consumer only in the following cases:
``(i) Upon the direct request of the protected consumer's
representative.
``(ii) Upon the direct request of the protected consumer,
if the protected consumer is not under the age of 16 years at
the time of the request.
``(iii) The security freeze was placed due to a material
misrepresentation of fact by the protected consumer's
representative.
``(B) Notice if removal not by request.--If a consumer
reporting agency removes a security freeze under subparagraph
(A)(iii), the consumer reporting agency shall notify the
protected consumer's representative in writing prior to
removing the security freeze.
``(C) Removal of freeze by request.--Except as provided in
subparagraph (A)(iii), a security freeze shall remain in
place until a protected consumer's representative or
protected consumer described in subparagraph (A)(ii) directly
requests that the security freeze be removed. Upon receiving
a direct request from the protected consumer's representative
or protected consumer described in subparagraph (A)(ii) that
a consumer reporting agency remove a security freeze, and
upon receiving sufficient proof of identification and
sufficient proof of authority, the consumer reporting agency
shall, free of charge, remove the security freeze not later
than--
``(i) in the case of a request that is by toll-free
telephone or secure electronic means, 1 hour after receiving
the request for removal; or
``(ii) in the case of a request that is by mail, 3 business
days after receiving the request for removal.
``(D) Temporary removal of security freeze.--Upon receiving
a direct request from a protected consumer or a protected
consumer's representative under subparagraph (A)(i), if the
protected consumer or protected consumer's representative
requests a temporary removal of a security freeze, the
consumer reporting agency shall, in accordance with
subparagraph (C), remove the security freeze for the period
of time specified by the protected consumer or protected
consumer's representative.''.
(b) Conforming Amendment.--Section 625(b)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681t(b)(1)) is amended--
(1) in subparagraph (H), by striking ``or'' at the end; and
(2) by adding at the end the following:
``(J) subsections (i) and (j) of section 605A relating to
security freezes; or''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 120 days after the date
of enactment of this Act.
SEC. 302. PROTECTING VETERANS' CREDIT.
(a) Purposes.--The purposes of this section are--
(1) to rectify problematic reporting of medical debt
included in a consumer report of a veteran due to
inappropriate or delayed payment for hospital care, medical
services, or extended care services provided in a non-
Department of Veterans Affairs facility under the laws
administered by the Secretary of Veterans Affairs; and
(2) to clarify the process of debt collection for such
medical debt.
(b) Amendments to Fair Credit Reporting Act.--
(1) Veteran's medical debt defined.--Section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a) is amended by
adding at the end the following:
``(z) Veteran.--The term `veteran' has the meaning given
the term in section 101 of title 38, United States Code.
``(aa) Veteran's Medical Debt.--The term `veteran's medical
debt'--
``(1) means a medical collection debt of a veteran owed to
a non-Department of Veterans Affairs health care provider
that was
[[Page H4331]]
submitted to the Department for payment for health care
authorized by the Department of Veterans Affairs; and
``(2) includes medical collection debt that the Department
of Veterans Affairs has wrongfully charged a veteran.''.
(2) Exclusion for veteran's medical debt.--Section 605(a)
of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is
amended by adding at the end the following:
``(7) With respect to a consumer reporting agency described
in section 603(p), any information related to a veteran's
medical debt if the date on which the hospital care, medical
services, or extended care services was rendered relating to
the debt antedates the report by less than 1 year if the
consumer reporting agency has actual knowledge that the
information is related to a veteran's medical debt and the
consumer reporting agency is in compliance with its
obligation under section 302(c)(5) of the Economic Growth,
Regulatory Relief, and Consumer Protection Act.
``(8) With respect to a consumer reporting agency described
in section 603(p), any information related to a fully paid or
settled veteran's medical debt that had been characterized as
delinquent, charged off, or in collection if the consumer
reporting agency has actual knowledge that the information is
related to a veteran's medical debt and the consumer
reporting agency is in compliance with its obligation under
section 302(c)(5) of the Economic Growth, Regulatory Relief,
and Consumer Protection Act.''.
(3) Removal of veteran's medical debt from consumer
report.--Section 611 of the Fair Credit Reporting Act (15
U.S.C. 1681i) is amended--
(A) in subsection (a)(1)(A), by inserting ``and except as
provided in subsection (g)'' after ``subsection (f)''; and
(B) by adding at the end the following:
``(g) Dispute Process for Veteran's Medical Debt.--
``(1) In general.--With respect to a veteran's medical
debt, the veteran may submit a notice described in paragraph
(2), proof of liability of the Department of Veterans Affairs
for payment of that debt, or documentation that the
Department of Veterans Affairs is in the process of making
payment for authorized hospital care, medical services, or
extended care services rendered to a consumer reporting
agency or a reseller to dispute the inclusion of that debt on
a consumer report of the veteran.
``(2) Notification to veteran.--The Department of Veterans
Affairs shall submit to a veteran a notice that the
Department of Veterans Affairs has assumed liability for part
or all of a veteran's medical debt.
``(3) Deletion of information from file.--If a consumer
reporting agency receives notice, proof of liability, or
documentation under paragraph (1), the consumer reporting
agency shall delete all information relating to the veteran's
medical debt from the file of the veteran and notify the
furnisher and the veteran of that deletion.''.
(c) Verification of Veteran's Medical Debt.--
(1) Definitions.--For purposes of this subsection--
(A) the term ``consumer reporting agency'' means a consumer
reporting agency described in section 603(p) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(p)); and
(B) the terms ``veteran'' and ``veteran's medical debt''
have the meanings given those terms in section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a), as added by
subsection (b)(1).
(2) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Veterans Affairs
shall establish a database to allow consumer reporting
agencies to verify whether a debt furnished to a consumer
reporting agency is a veteran's medical debt.
(3) Database features.--The Secretary of Veterans Affairs
shall ensure that the database established under paragraph
(2), to the extent permitted by law, provides consumer
reporting agencies with--
(A) sufficiently detailed and specific information to
verify whether a debt being furnished to the consumer
reporting agency is a veteran's medical debt;
(B) access to verification information in a secure
electronic format;
(C) timely access to verification information; and
(D) any other features that would promote the efficient,
timely, and secure delivery of information that consumer
reporting agencies could use to verify whether a debt is a
veteran's medical debt.
(4) Stakeholder input.--Prior to establishing the database
for verification under paragraph (2), the Secretary of
Veterans Affairs shall publish in the Federal Register a
notice and request for comment that solicits input from
consumer reporting agencies and other stakeholders.
(5) Verification.--Provided the database established under
paragraph (2) is fully functional and the data available to
consumer reporting agencies, a consumer reporting agency
shall use the database as a means to identify a veteran's
medical debt pursuant to paragraphs (7) and (8) of section
605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)),
as added by subsection (b)(2).
(d) Credit Monitoring.--
(1) In general.--Section 605A of the Fair Credit Reporting
Act (15 U.S.C. 1681c-1), as amended by section 301(a), is
amended by adding at the end the following:
``(k) Credit Monitoring.--
``(1) Definitions.--In this subsection:
``(A) The term `active duty military consumer' includes a
member of the National Guard.
``(B) The term `National Guard' has the meaning given the
term in section 101(c) of title 10, United States Code.
``(2) Credit monitoring.--A consumer reporting agency
described in section 603(p) shall provide a free electronic
credit monitoring service that, at a minimum, notifies a
consumer of material additions or modifications to the file
of the consumer at the consumer reporting agency to any
consumer who provides to the consumer reporting agency--
``(A) appropriate proof that the consumer is an active duty
military consumer; and
``(B) contact information of the consumer.
``(3) Rulemaking.--Not later than 1 year after the date of
enactment of this subsection, the Federal Trade Commission
shall promulgate regulations regarding the requirements of
this subsection, which shall at a minimum include--
``(A) a definition of an electronic credit monitoring
service and material additions or modifications to the file
of a consumer; and
``(B) what constitutes appropriate proof.
``(4) Applicability.--
``(A) Sections 616 and 617 shall not apply to any violation
of this subsection.
``(B) This subsection shall be enforced exclusively under
section 621 by the Federal agencies and Federal and State
officials identified in that section.''.
(2) Conforming amendment.--Section 625(b)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as amended by
section 301(b), is amended by adding at the end the
following:
``(K) subsection (k) of section 605A, relating to credit
monitoring for active duty military consumers, as defined in
that subsection;''.
(e) Effective Date.--The amendments made by this section
shall take effect on the date that is 1 year after the date
of enactment of this Act.
SEC. 303. IMMUNITY FROM SUIT FOR DISCLOSURE OF FINANCIAL
EXPLOITATION OF SENIOR CITIZENS.
(a) Immunity.--
(1) Definitions.--In this section--
(A) the term ``Bank Secrecy Act officer'' means an
individual responsible for ensuring compliance with the
requirements mandated by subchapter II of chapter 53 of title
31, United States Code (commonly known as the ``Bank Secrecy
Act'');
(B) the term ``broker-dealer'' means a broker and a dealer,
as those terms are defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a));
(C) the term ``covered agency'' means--
(i) a State financial regulatory agency, including a State
securities or law enforcement authority and a State insurance
regulator;
(ii) each of the Federal agencies represented in the
membership of the Financial Institutions Examination Council
established under section 1004 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C.
3303);
(iii) a securities association registered under section 15A
of the Securities Exchange Act of 1934 (15 U.S.C. 78o-3);
(iv) the Securities and Exchange Commission;
(v) a law enforcement agency; or
(vi) a State or local agency responsible for administering
adult protective service laws;
(D) the term ``covered financial institution'' means--
(i) a credit union;
(ii) a depository institution;
(iii) an investment adviser;
(iv) a broker-dealer;
(v) an insurance company;
(vi) an insurance agency; or
(vii) a transfer agent;
(E) the term ``credit union'' has the meaning given the
term in section 2 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5301);
(F) the term ``depository institution'' has the meaning
given the term in section 3(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(c));
(G) the term ``exploitation'' means the fraudulent or
otherwise illegal, unauthorized, or improper act or process
of an individual, including a caregiver or a fiduciary,
that--
(i) uses the resources of a senior citizen for monetary or
personal benefit, profit, or gain; or
(ii) results in depriving a senior citizen of rightful
access to or use of benefits, resources, belongings, or
assets;
(H) the term ``insurance agency'' means any business entity
that sells, solicits, or negotiates insurance coverage;
(I) the term ``insurance company'' has the meaning given
the term in section 2(a) of the Investment Company Act of
1940 (15 U.S.C. 80a-2(a));
(J) the term ``insurance producer'' means an individual who
is required under State law to be licensed in order to sell,
solicit, or negotiate insurance coverage;
(K) the term ``investment adviser'' has the meaning given
the term in section 202(a) of the Investment Advisers Act of
1940 (15 U.S.C. 80b-2(a));
(L) the term ``investment adviser representative'' means an
individual who--
(i) is employed by, or associated with, an investment
adviser; and
(ii) does not perform solely clerical or ministerial acts;
[[Page H4332]]
(M) the term ``registered representative'' means an
individual who represents a broker-dealer in effecting or
attempting to effect a purchase or sale of securities;
(N) the term ``senior citizen'' means an individual who is
not younger than 65 years of age;
(O) the term ``State'' means each of the several States,
the District of Columbia, and any territory or possession of
the United States;
(P) the term ``State insurance regulator'' has the meaning
given the term in section 315 of the Gramm-Leach-Bliley Act
(15 U.S.C. 6735);
(Q) the term ``State securities or law enforcement
authority'' has the meaning given the term in section
24(f)(4) of the Securities Exchange Act of 1934 (15 U.S.C.
78x(f)(4)); and
(R) the term ``transfer agent'' has the meaning given the
term in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
(2) Immunity from suit.--
(A) Immunity for individuals.--An individual who has
received the training described in subsection (b) shall not
be liable, including in any civil or administrative
proceeding, for disclosing the suspected exploitation of a
senior citizen to a covered agency if the individual, at the
time of the disclosure--
(i) served as a supervisor or in a compliance or legal
function (including as a Bank Secrecy Act officer) for, or,
in the case of a registered representative, investment
adviser representative, or insurance producer, was affiliated
or associated with, a covered financial institution; and
(ii) made the disclosure--
(I) in good faith; and
(II) with reasonable care.
(B) Immunity for covered financial institutions.--A covered
financial institution shall not be liable, including in any
civil or administrative proceeding, for a disclosure made by
an individual described in subparagraph (A) if--
(i) the individual was employed by, or, in the case of a
registered representative, insurance producer, or investment
adviser representative, affiliated or associated with, the
covered financial institution at the time of the disclosure;
and
(ii) before the time of the disclosure, each individual
described in subsection (b)(1) received the training
described in subsection (b).
(C) Rule of construction.--Nothing in subparagraph (A) or
(B) shall be construed to limit the liability of an
individual or a covered financial institution in a civil
action for any act, omission, or fraud that is not a
disclosure described in subparagraph (A).
(b) Training.--
(1) In general.--A covered financial institution or a third
party selected by a covered financial institution may provide
the training described in paragraph (2)(A) to each officer or
employee of, or registered representative, insurance
producer, or investment adviser representative affiliated or
associated with, the covered financial institution who--
(A) is described in subsection (a)(2)(A)(i);
(B) may come into contact with a senior citizen as a
regular part of the professional duties of the individual; or
(C) may review or approve the financial documents, records,
or transactions of a senior citizen in connection with
providing financial services to a senior citizen.
(2) Content.--
(A) In general.--The content of the training that a covered
financial institution or a third party selected by the
covered financial institution may provide under paragraph (1)
shall--
(i) be maintained by the covered financial institution and
made available to a covered agency with examination authority
over the covered financial institution, upon request, except
that a covered financial institution shall not be required to
maintain or make available such content with respect to any
individual who is no longer employed by, or affiliated or
associated with, the covered financial institution;
(ii) instruct any individual attending the training on how
to identify and report the suspected exploitation of a senior
citizen internally and, as appropriate, to government
officials or law enforcement authorities, including common
signs that indicate the financial exploitation of a senior
citizen;
(iii) discuss the need to protect the privacy and respect
the integrity of each individual customer of the covered
financial institution; and
(iv) be appropriate to the job responsibilities of the
individual attending the training.
(B) Timing.--The training under paragraph (1) shall be
provided--
(i) as soon as reasonably practicable; and
(ii) with respect to an individual who begins employment,
or becomes affiliated or associated, with a covered financial
institution after the date of enactment of this Act, not
later than 1 year after the date on which the individual
becomes employed by, or affiliated or associated with, the
covered financial institution in a position described in
subparagraph (A), (B), or (C) of paragraph (1).
(C) Records.--A covered financial institution shall--
(i) maintain a record of each individual who--
(I) is employed by, or affiliated or associated with, the
covered financial institution in a position described in
subparagraph (A), (B), or (C) of paragraph (1); and
(II) has completed the training under paragraph (1),
regardless of whether the training was--
(aa) provided by the covered financial institution or a
third party selected by the covered financial institution;
(bb) completed before the individual was employed by, or
affiliated or associated with, the covered financial
institution; and
(cc) completed before, on, or after the date of enactment
of this Act; and
(ii) upon request, provide a record described in clause (i)
to a covered agency with examination authority over the
covered financial institution.
(c) Relationship to State Law.--Nothing in this section
shall be construed to preempt or limit any provision of State
law, except only to the extent that subsection (a) provides a
greater level of protection against liability to an
individual described in subsection (a)(2)(A) or to a covered
financial institution described in subsection (a)(2)(B) than
is provided under State law.
SEC. 304. RESTORATION OF THE PROTECTING TENANTS AT
FORECLOSURE ACT OF 2009.
(a) Repeal of Sunset Provision.--Section 704 of the
Protecting Tenants at Foreclosure Act of 2009 (12 U.S.C. 5201
note; 12 U.S.C. 5220 note; 42 U.S.C. 1437f note) is repealed.
(b) Restoration.--Sections 701 through 703 of the
Protecting Tenants at Foreclosure Act of 2009, the provisions
of law amended by such sections, and any regulations
promulgated pursuant to such sections, as were in effect on
December 30, 2014, are restored and revived.
(c) Effective Date.--Subsections (a) and (b) shall take
effect on the date that is 30 days after the date of
enactment of this Act.
SEC. 305. REMEDIATING LEAD AND ASBESTOS HAZARDS.
Section 109(a)(1) of the Emergency Economic Stabilization
Act of 2008 (12 U.S.C. 5219(a)(1)) is amended, in the second
sentence, by inserting ``and to remediate lead and asbestos
hazards in residential properties'' before the period at the
end.
SEC. 306. FAMILY SELF-SUFFICIENCY PROGRAM.
(a) In General.--Section 23 of the United States Housing
Act of 1937 (42 U.S.C. 1437u) is amended--
(1) in subsection (a)--
(A) by striking ``public housing and''; and
(B) by striking ``the certificate and voucher programs
under section 8'' and inserting ``sections 8 and 9'';
(2) by amending subsection (b) to read as follows:
``(b) Continuation of Prior Required Programs.--
``(1) In general.--Each public housing agency that was
required to administer a local Family Self-Sufficiency
program on the date of enactment of the Economic Growth,
Regulatory Relief, and Consumer Protection Act shall operate
such local program for, at a minimum, the number of families
the agency was required to serve on the date of enactment of
such Act, subject only to the availability under
appropriations Acts of sufficient amounts for housing
assistance and the requirements of paragraph (2).
``(2) Reduction.--The number of families for which a public
housing agency is required to operate such local program
under paragraph (1) shall be decreased by 1 for each family
from any supported rental housing program administered by
such agency that, after October 21, 1998, fulfills its
obligations under the contract of participation.
``(3) Exception.--The Secretary shall not require a public
housing agency to carry out a mandatory program for a period
of time upon the request of the public housing agency and
upon a determination by the Secretary that implementation is
not feasible because of local circumstances, which may
include--
``(A) lack of supportive services accessible to eligible
families, which shall include insufficient availability of
resources for programs under title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.);
``(B) lack of funding for reasonable administrative costs;
``(C) lack of cooperation by other units of State or local
government; or
``(D) any other circumstances that the Secretary may
consider appropriate.'';
(3) by striking subsection (i);
(4) by redesignating subsections (c), (d), (e), (f), (g),
and (h) as subsections (d), (e), (f), (g), (h), and (i)
respectively;
(5) by inserting after subsection (b), as amended, the
following:
``(c) Eligibility.--
``(1) Eligible families.--A family is eligible to
participate in a local Family Self-Sufficiency program under
this section if--
``(A) at least 1 household member seeks to become and
remain employed in suitable employment or to increase
earnings; and
``(B) the household member receives direct assistance under
section 8 or resides in a unit assisted under section 8 or 9.
``(2) Eligible entities.--The following entities are
eligible to administer a local Family Self-Sufficiency
program under this section:
``(A) A public housing agency administering housing
assistance to or on behalf of an eligible family under
section 8 or 9.
``(B) The owner or sponsor of a multifamily property
receiving project-based rental assistance under section 8, in
accordance with the requirements under subsection (l).'';
(6) in subsection (d), as so redesignated--
(A) in paragraph (1)--
(i) by striking ``public housing agency'' the first time it
appears and inserting ``eligible entity'';
[[Page H4333]]
(ii) in the first sentence, by striking ``each leaseholder
receiving assistance under the certificate and voucher
programs of the public housing agency under section 8 or
residing in public housing administered by the agency'' and
inserting ``a household member of an eligible family''; and
(iii) by striking the third sentence and inserting the
following: ``Housing assistance may not be terminated as a
consequence of either successful completion of the contract
of participation or failure to complete such contract. A
contract of participation shall remain in effect until the
participating family exits the Family Self-Sufficiency
program upon successful graduation or expiration of the
contract of participation, or for other good cause.'';
(B) in paragraph (2)--
(i) in the matter preceding subparagraph (A)--
(I) in the first sentence--
(aa) by striking ``A local program under this section'' and
inserting ``An eligible entity'';
(bb) by striking ``provide'' and inserting ``coordinate'';
and
(cc) by striking ``to'' and inserting ``for''; and
(II) in the second sentence--
(aa) by striking ``provided during'' and inserting
``coordinated for'';
(bb) by striking ``under section 8 or residing in public
housing'' and inserting ``pursuant to section 8 or 9 and for
the duration of the contract of participation''; and
(cc) by inserting ``, but are not limited to'' after ``may
include'';
(ii) in subparagraph (D), by inserting ``or attainment of a
high school equivalency certificate'' after ``high school'';
(iii) by striking subparagraph (G);
(iv) by redesignating subparagraphs (E), (F), and (J) as
subparagraphs (F), (G), and (K) respectively;
(v) by inserting after subparagraph (D) the following:
``(E) education in pursuit of a post-secondary degree or
certification;'';
(vi) in subparagraph (H), by inserting ``financial
literacy, such as training in financial management, financial
coaching, and asset building, and'' after ``training in'';
(vii) in subparagraph (I), by striking ``and'' at the end;
and
(viii) by inserting after subparagraph (I) the following:
``(J) homeownership education and assistance; and''; and
(C) in paragraph (3)--
(i) in the first sentence, by inserting ``the first
recertification of income after'' after ``not later than 5
years after''; and
(ii) in the second sentence--
(I) by striking ``public housing agency'' and inserting
``eligible entity''; and
(II) by striking ``of the agency'';
(D) by amending paragraph (4) to read as follows:
``(4) Employment.--The contract of participation shall
require 1 household member of the participating family to
seek and maintain suitable employment.''; and
(E) by adding at the end the following:
``(5) Nonparticipation.--Assistance under section 8 or 9
for a family that elects not to participate in a Family Self-
Sufficiency program shall not be delayed by reason of such
election.'';
(7) in subsection (e), as so redesignated--
(A) in paragraph (1), by striking ``whose monthly adjusted
income does not exceed 50 percent'' and all that follows
through the period at the end of the third sentence and
inserting ``shall be calculated under the rental provisions
of section 3 or section 8(o), as applicable.'';
(B) in paragraph (2)--
(i) by striking the first sentence and inserting the
following: ``For each participating family, an amount equal
to any increase in the amount of rent paid by the family in
accordance with the provisions of section 3 or 8(o), as
applicable, that is attributable to increases in earned
income by the participating family, shall be placed in an
interest-bearing escrow account established by the eligible
entity on behalf of the participating family. Notwithstanding
any other provision of law, an eligible entity may use funds
it controls under section 8 or 9 for purposes of making the
escrow deposit for participating families assisted under, or
residing in units assisted under, section 8 or 9,
respectively, provided such funds are offset by the increase
in the amount of rent paid by the participating family.'';
(ii) by striking the second sentence and inserting the
following: ``All Family Self-Sufficiency programs
administered under this section shall include an escrow
account.'';
(iii) in the fourth sentence, by striking ``subsection
(c)'' and inserting ``subsection (d)''; and
(iv) in the last sentence--
(I) by striking ``A public housing agency'' and inserting
``An eligible entity''; and
(II) by striking ``the public housing agency'' and
inserting ``such eligible entity''; and
(C) by amending paragraph (3) to read as follows:
``(3) Forfeited escrow.--Any amount placed in an escrow
account established by an eligible entity for a participating
family as required under paragraph (2), that exists after the
end of a contract of participation by a household member of a
participating family that does not qualify to receive the
escrow, shall be used by the eligible entity for the benefit
of participating families in good standing.'';
(8) in subsection (f), as so redesignated, by striking ``,
unless the income of the family equals or exceeds 80 percent
of the median income of the area (as determined by the
Secretary with adjustments for smaller and larger
families)'';
(9) in subsection (g), as so redesignated--
(A) in paragraph (1)--
(i) by striking ``public housing agency'' and inserting
``eligible entity'';
(ii) by striking ``the public housing agency'' and
inserting ``such eligible entity''; and
(iii) by striking ``subsection (g)'' and inserting
``subsection (h)''; and
(B) in paragraph (2)--
(i) by striking ``public housing agency'' and inserting
``eligible entity'' each place that term appears;
(ii) by striking ``or the Job Opportunities and Basic
Skills Training Program under part F of title IV of the
Social Security Act'';
(iii) by inserting ``primary, secondary, and post-
secondary'' after ``public and private''; and
(iv) in the second sentence, by inserting ``and tenants
served by the program'' after ``the unit of general local
government'';
(10) in subsection (h), as so redesignated--
(A) in paragraph (1)--
(i) by striking ``public housing agency'' and inserting
``eligible entity'';
(ii) by striking ``participating in the'' and inserting
``carrying out a''; and
(iii) by striking ``to the Secretary'';
(B) in paragraph (2)--
(i) by striking ``public housing agency'' and inserting
``eligible entity'';
(ii) by striking ``subsection (f)'' and inserting
``subsection (g)'';
(iii) by striking ``residents of the public housing'' and
inserting ``the current and prospective participants of the
program''; and
(iv) by striking ``or the Job Opportunities and Basic
Skills Training Program under part F of title IV of the
Social Security Act''; and
(C) in paragraph (3)--
(i) in subparagraph (C)--
(I) by striking ``subsection (c)(2)'' and inserting
``subsection (d)(2)'';
(II) by striking ``provided to'' and inserting
``coordinated on behalf of participating'';
(III) by inserting ``direct'' before ``assistance''; and
(IV) by striking ``the section 8 and public housing
programs'' and inserting ``sections 8 and 9'';
(ii) in subparagraph (D)--
(I) by striking ``subsection (d)'' and inserting
``subsection (e)''; and
(II) by striking ``public housing agency'' and inserting
``eligible entity'';
(iii) in subparagraph (E), by striking ``deliver'' and
inserting ``coordinate'';
(iv) in subparagraph (H), by striking ``the Job
Opportunities and Basic Skills Training Program under part F
of title IV of the Social Security Act and''; and
(v) in subparagraph (I), by striking ``public housing or
section 8 assistance'' and inserting ``assistance under
section 8 or 9'';
(11) by amending subsection (i), as so redesignated, to
read as follows:
``(i) Family Self-Sufficiency Awards.--
``(1) In general.--Subject to appropriations, the Secretary
shall establish a formula by which annual funds shall be
awarded or as otherwise determined by the Secretary for the
costs incurred by an eligible entity in administering the
Family Self-Sufficiency program under this section.
``(2) Eligibility for awards.--The award established under
paragraph (1) shall provide funding for family self-
sufficiency coordinators as follows:
``(A) Base award.--An eligible entity serving 25 or more
participants in the Family Self-Sufficiency program under
this section is eligible to receive an award equal to the
costs, as determined by the Secretary, of 1 full-time family
self-sufficiency coordinator position. The Secretary may, by
regulation or notice, determine the policy concerning the
award for an eligible entity serving fewer than 25 such
participants, including providing prorated awards or allowing
such entities to combine their programs under this section
for purposes of employing a coordinator.
``(B) Additional award.--An eligible entity that meets
performance standards set by the Secretary is eligible to
receive an additional award sufficient to cover the costs of
filling an additional family self-sufficiency coordinator
position if such entity has 75 or more participating
families, and an additional coordinator for each additional
50 participating families, or such other ratio as may be
established by the Secretary based on the award allocation
evaluation under subparagraph (E).
``(C) State and regional agencies.--For purposes of
calculating the award under this paragraph, each
administratively distinct part of a State or regional
eligible entity may be treated as a separate agency.
``(D) Determination of number of coordinators.--In
determining whether an eligible entity meets a specific
threshold for funding pursuant to this paragraph, the
Secretary shall consider the number of participants enrolled
by the eligible entity in its Family Self-Sufficiency program
as well as other criteria determined by the Secretary.
``(E) Award allocation evaluation.--The Secretary shall
submit to Congress a report evaluating the award allocation
under this subsection, and make recommendations based on this
evaluation and other related findings to modify such
allocation, within 4
[[Page H4334]]
years after the date of enactment of the Economic Growth,
Regulatory Relief, and Consumer Protection Act, and not less
frequently than every 4 years thereafter. The report
requirement under this subparagraph shall terminate after the
Secretary has submitted 2 such reports to Congress.
``(3) Renewals and allocation.--
``(A) In general.--Funds allocated by the Secretary under
this subsection shall be allocated in the following order of
priority:
``(i) First priority.--Renewal of the full cost of all
coordinators in the previous year at each eligible entity
with an existing Family Self-Sufficiency program that meets
applicable performance standards set by the Secretary.
``(ii) Second priority.--New or incremental coordinator
funding authorized under this section.
``(B) Guidance.--If the first priority, as described in
subparagraph (A)(i), cannot be fully satisfied, the Secretary
may prorate the funding for each eligible entity, as long
as--
``(i) each eligible entity that has received funding for at
least 1 part-time coordinator in the prior fiscal year is
provided sufficient funding for at least 1 part-time
coordinator as part of any such proration; and
``(ii) each eligible entity that has received funding for
at least 1 full-time coordinator in the prior fiscal year is
provided sufficient funding for at least 1 full-time
coordinator as part of any such proration.
``(4) Recapture or offset.--Any awards allocated under this
subsection by the Secretary in a fiscal year that have not
been spent by the end of the subsequent fiscal year or such
other time period as determined by the Secretary may be
recaptured by the Secretary and shall be available for
providing additional awards pursuant to paragraph (2)(B), or
may be offset as determined by the Secretary. Funds
appropriated pursuant to this section shall remain available
for 3 years in order to facilitate the re-use of any
recaptured funds for this purpose.
``(5) Performance reporting.--Programs under this section
shall be required to report the number of families enrolled
and graduated, the number of established escrow accounts and
positive escrow balances, and any other information that the
Secretary may require. Program performance shall be reviewed
periodically as determined by the Secretary.
``(6) Incentives for innovation and high performance.--The
Secretary may reserve up to 5 percent of the amounts made
available under this subsection to provide support to or
reward Family Self-Sufficiency programs based on the rate of
successful completion, increased earned income, or other
factors as may be established by the Secretary.'';
(12) in subsection (j)--
(A) by striking ``public housing agency'' and inserting
``eligible entity'';
(B) by striking ``public housing'' before ``units'';
(C) by striking ``in public housing projects administered
by the agency'';
(D) by inserting ``or coordination'' after ``provision'';
and
(E) by striking the last sentence;
(13) in subsection (k), by striking ``public housing
agencies'' and inserting ``eligible entities'';
(14) by striking subsection (n);
(15) by striking subsection (o);
(16) by redesignating subsections (l) and (m) as
subsections (m) and (n), respectively;
(17) by inserting after subsection (k) the following:
``(l) Programs for Tenants in Privately Owned Properties
With Project-Based Assistance.--
``(1) Voluntary availability of fss program.--The owner of
a privately owned property may voluntarily make a Family
Self-Sufficiency program available to the tenants of such
property in accordance with procedures established by the
Secretary. Such procedures shall permit the owner to enter
into a cooperative agreement with a local public housing
agency that administers a Family Self-Sufficiency program or,
at the owner's option, operate a Family Self-Sufficiency
program on its own or in partnership with another owner. An
owner, who voluntarily makes a Family Self-Sufficiency
program available pursuant to this subsection, may access
funding from any residual receipt accounts for the property
to hire a family self-sufficiency coordinator or coordinators
for their program.
``(2) Cooperative agreement.--Any cooperative agreement
entered into pursuant to paragraph (1) shall require the
public housing agency to open its Family Self-Sufficiency
program waiting list to any eligible family residing in the
owner's property who resides in a unit assisted under
project-based rental assistance.
``(3) Treatment of families assisted under this
subsection.--A public housing agency that enters into a
cooperative agreement pursuant to paragraph (1) may count any
family participating in its Family Self-Sufficiency program
as a result of such agreement as part of the calculation of
the award under subsection (i).
``(4) Escrow.--
``(A) Cooperative agreement.--A cooperative agreement
entered into pursuant to paragraph (1) shall provide for the
calculation and tracking of the escrow for participating
residents and for the owner to make available, upon request
of the public housing agency, escrow for participating
residents, in accordance with paragraphs (2) and (3) of
subsection (e), residing in units assisted under section 8.
``(B) Calculation and tracking by owner.--The owner of a
privately owned property who voluntarily makes a Family Self-
Sufficiency program available pursuant to paragraph (1) shall
calculate and track the escrow for participating residents
and make escrow for participating residents available in
accordance with paragraphs (2) and (3) of subsection (e).
``(5) Exception.--This subsection shall not apply to
properties assisted under section 8(o)(13).
``(6) Suspension of enrollment.--In any year, the Secretary
may suspend the enrollment of new families in Family Self-
Sufficiency programs under this subsection based on a
determination that insufficient funding is available for this
purpose.'';
(18) in subsection (m), as so redesignated--
(A) in paragraph (1)--
(i) in the first sentence, by striking ``Each public
housing agency'' and inserting ``Each eligible entity'';
(ii) in the second sentence, by striking ``The report shall
include'' and inserting ``The contents of the report shall
include''; and
(iii) in subparagraph (D)--
(I) by striking ``public housing agency'' and inserting
``eligible entity''; and
(II) by striking ``local''; and
(B) in paragraph (2), by inserting ``and describing any
additional research needs of the Secretary to evaluate the
effectiveness of the program'' after ``under paragraph (1)'';
(19) in subsection (n), as so redesignated, by striking
``may'' and inserting ``shall''; and
(20) by adding at the end the following:
``(o) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means an
entity that meets the requirements under subsection (c)(2) to
administer a Family Self-Sufficiency program under this
section.
``(2) Eligible family.--The term `eligible family' means a
family that meets the requirements under subsection (c)(1) to
participate in the Family Self-Sufficiency program under this
section.
``(3) Participating family.--The term `participating
family' means an eligible family that is participating in the
Family Self-Sufficiency program under this section.''.
(b) Effective Date.--Not later than 360 days after the date
of enactment of this Act, the Secretary of Housing and Urban
Development shall issue regulations to implement this section
and any amendments made by this section, and this section and
any amendments made by this section shall take effect upon
such issuance.
SEC. 307. PROPERTY ASSESSED CLEAN ENERGY FINANCING.
Section 129C(b)(3) of the Truth in Lending Act (15 U.S.C.
1639c(b)(3)) is amended by adding at the end the following:
``(C) Consideration of underwriting requirements for
property assessed clean energy financing.--
``(i) Definition.--In this subparagraph, the term `Property
Assessed Clean Energy financing' means financing to cover the
costs of home improvements that results in a tax assessment
on the real property of the consumer.
``(ii) Regulations.--The Bureau shall prescribe regulations
that carry out the purposes of subsection (a) and apply
section 130 with respect to violations under subsection (a)
of this section with respect to Property Assessed Clean
Energy financing, which shall account for the unique nature
of Property Assessed Clean Energy financing.
``(iii) Collection of information and consultation.--In
prescribing the regulations under this subparagraph, the
Bureau--
``(I) may collect such information and data that the Bureau
determines is necessary; and
``(II) shall consult with State and local governments and
bond-issuing authorities.''.
SEC. 308. GAO REPORT ON CONSUMER REPORTING AGENCIES.
(a) Definitions.--In this section, the terms ``consumer'',
``consumer report'', and ``consumer reporting agency'' have
the meanings given those terms in section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a).
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a comprehensive
report that includes--
(1) a review of the current legal and regulatory structure
for consumer reporting agencies and an analysis of any gaps
in that structure, including, in particular, the rulemaking,
supervisory, and enforcement authority of State and Federal
agencies under the Fair Credit Reporting Act (15 U.S.C. 1681
et seq.), the Gramm-Leach-Bliley Act (Public Law 106-102; 113
Stat. 1338), and any other relevant statutes;
(2) a review of the process by which consumers can appeal
and expunge errors on their consumer reports;
(3) a review of the causes of consumer reporting errors;
(4) a review of the responsibilities of data furnishers to
ensure that accurate information is initially reported to
consumer reporting agencies and to ensure that such
information continues to be accurate;
(5) a review of data security relating to consumer
reporting agencies and their efforts to safeguard consumer
data;
[[Page H4335]]
(6) a review of who has access to, and may use, consumer
reports;
(7) a review of who has control or ownership of a
consumer's credit data;
(8) an analysis of--
(A) which Federal and State regulatory agencies supervise
and enforce laws relating to how consumer reporting agencies
protect consumer data; and
(B) all laws relating to data security applicable to
consumer reporting agencies; and
(9) recommendations to Congress on how to improve the
consumer reporting system, including legislative, regulatory,
and industry-specific recommendations.
SEC. 309. PROTECTING VETERANS FROM PREDATORY LENDING.
(a) Protecting Veterans From Predatory Lending.--
(1) In general.--Subchapter I of chapter 37 of title 38,
United States Code, is amended by adding at the end the
following new section:
``Sec. 3709. Refinancing of housing loans
``(a) Fee Recoupment.--Except as provided in subsection (d)
and notwithstanding section 3703 of this title or any other
provision of law, a loan to a veteran for a purpose specified
in section 3710 of this title that is being refinanced may
not be guaranteed or insured under this chapter unless--
``(1) the issuer of the refinanced loan provides the
Secretary with a certification of the recoupment period for
fees, closing costs, and any expenses (other than taxes,
amounts held in escrow, and fees paid under this chapter)
that would be incurred by the borrower in the refinancing of
the loan;
``(2) all of the fees and incurred costs are scheduled to
be recouped on or before the date that is 36 months after the
date of loan issuance; and
``(3) the recoupment is calculated through lower regular
monthly payments (other than taxes, amounts held in escrow,
and fees paid under this chapter) as a result of the
refinanced loan.
``(b) Net Tangible Benefit Test.--Except as provided in
subsection (d) and notwithstanding section 3703 of this title
or any other provision of law, a loan to a veteran for a
purpose specified in section 3710 of this title that is
refinanced may not be guaranteed or insured under this
chapter unless--
``(1) the issuer of the refinanced loan provides the
borrower with a net tangible benefit test;
``(2) in a case in which the original loan had a fixed rate
mortgage interest rate and the refinanced loan will have a
fixed rate mortgage interest rate, the refinanced loan has a
mortgage interest rate that is not less than 50 basis points
less than the previous loan;
``(3) in a case in which the original loan had a fixed rate
mortgage interest rate and the refinanced loan will have an
adjustable rate mortgage interest rate, the refinanced loan
has a mortgage interest rate that is not less than 200 basis
points less than the previous loan; and
``(4) the lower interest rate is not produced solely from
discount points, unless--
``(A) such points are paid at closing; and
``(B) such points are not added to the principal loan
amount, unless--
``(i) for discount point amounts that are less than or
equal to one discount point, the resulting loan balance after
any fees and expenses allows the property with respect to
which the loan was issued to maintain a loan to value ratio
of 100 percent or less; and
``(ii) for discount point amounts that are greater than one
discount point, the resulting loan balance after any fees and
expenses allows the property with respect to which the loan
was issued to maintain a loan to value ratio of 90 percent or
less.
``(c) Loan Seasoning.--Except as provided in subsection (d)
and notwithstanding section 3703 of this title or any other
provision of law, a loan to a veteran for a purpose specified
in section 3710 of this title that is refinanced may not be
guaranteed or insured under this chapter until the date that
is the later of--
``(1) the date that is 210 days after the date on which the
first monthly payment is made on the loan; and
``(2) the date on which the sixth monthly payment is made
on the loan.
``(d) Cash-out Refinances.--(1) Subsections (a) through (c)
shall not apply in a case of a loan refinancing in which the
amount of the principal for the new loan to be guaranteed or
insured under this chapter is larger than the payoff amount
of the refinanced loan.
``(2) Not later than 180 days after the date of the
enactment of this section, the Secretary shall promulgate
such rules as the Secretary considers appropriate with
respect to refinancing described in paragraph (1) to ensure
that such refinancing is in the financial interest of the
borrower, including rules relating to recoupment, seasoning,
and net tangible benefits.''.
(2) Regulations.--
(A) In general.--In prescribing any regulation to carry out
section 3709 of title 38, United States Code, as added by
paragraph (1), the Secretary of Veterans Affairs may waive
the requirements of sections 551 through 559 of title 5,
United States Code, if--
(i) the Secretary determines that urgent or compelling
circumstances make compliance with such requirements
impracticable or contrary to the public interest;
(ii) the Secretary submits to the Committee on Veterans'
Affairs of the Senate and the Committee on Veterans' Affairs
of the House of Representatives, and publishes in the Federal
Register, notice of such waiver, including a description of
the determination made under clause (i); and
(iii) a period of 10 days elapses following the
notification under clause (ii).
(B) Public notice and comment.--If a regulation prescribed
pursuant to a waiver made under subparagraph (A) is in effect
for a period exceeding 1 year, the Secretary shall provide
the public an opportunity for notice and comment regarding
such regulation.
(C) Effective date.--This paragraph shall take effect on
the date of the enactment of this Act.
(D) Termination date.--The authorities under this paragraph
shall terminate on the date that is 1 year after the date of
the enactment of this Act.
(3) Report on cash-out refinances.--
(A) In general.--Not later than 1 year after the date of
the enactment of this Act, the Secretary shall, in
consultation with the President of the Ginnie Mae, submit to
Congress a report on refinancing--
(i) of loans--
(I) made to veterans for purposes specified in section 3710
of title 38, United States Code; and
(II) that were guaranteed or insured under chapter 37 of
such title; and
(ii) in which the amount of the principal for the new loan
to be guaranteed or insured under such chapter is larger than
the payoff amount of the refinanced loan.
(B) Contents.--The report required by subparagraph (A)
shall include the following:
(i) An assessment of whether additional requirements,
including a net tangible benefit test, fee recoupment period,
and loan seasoning requirement, are necessary to ensure that
the refinancing described in subparagraph (A) is in the
financial interest of the borrower.
(ii) Such recommendations as the Secretary may have for
additional legislative or administrative action to ensure
that refinancing described in subparagraph (A) is carried out
in the financial interest of the borrower.
(4) Clerical amendment.--The table of sections at the
beginning of chapter 37 of title 38, United States Code, is
amended by inserting after the item relating to section 3709
the following new item:
``3709. Refinancing of housing loans.''.
(b) Loan Seasoning for Ginnie Mae Mortgage-backed
Securities.--Section 306(g)(1) of the National Housing Act
(12 U.S.C. 1721(g)(1)) is amended by inserting ``The
Association may not guarantee the timely payment of principal
and interest on a security that is backed by a mortgage
insured or guaranteed under chapter 37 of title 38, United
States Code, and that was refinanced until the later of the
date that is 210 days after the date on which the first
monthly payment is made on the mortgage being refinanced and
the date on which 6 full monthly payments have been made on
the mortgage being refinanced.'' after ``Act of 1992.''.
(c) Report on Liquidity of the Department of Veterans
Affairs Housing Loan Program.--
(1) Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Housing and Urban
Development and the President of the Ginnie Mae shall submit
to the appropriate committees of Congress a report on the
liquidity of the housing loan program under chapter 37 of
title 38, United States Code, in the secondary mortgage
market, which shall--
(A) assess the loans provided under that chapter that
collateralize mortgage-backed securities that are guaranteed
by Ginnie Mae; and
(B) include recommendations for actions that Ginnie Mae
should take to ensure that the liquidity of that housing loan
program is maintained.
(2) Definitions.--In this subsection:
(A) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(i) the Committee on Veterans' Affairs and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(ii) the Committee on Veterans' Affairs and the Committee
on Financial Services of the House of Representatives.
(B) Ginnie mae.--The term ``Ginnie Mae'' means the
Government National Mortgage Association.
(d) Annual Report on Document Disclosure and Consumer
Education.--Not less frequently than once each year, the
Secretary of Veterans Affairs shall issue a publicly
available report that--
(1) examines, with respect to loans provided to veterans
under chapter 37 of title 38, United States Code--
(A) the refinancing of fixed-rate mortgage loans to
adjustable rate mortgage loans;
(B) whether veterans are informed of the risks and
disclosures associated with that refinancing; and
(C) whether advertising materials for that refinancing are
clear and do not contain misleading statements or assertions;
and
(2) includes findings based on any complaints received by
veterans and on an ongoing assessment of the refinancing
market by the Secretary.
SEC. 310. CREDIT SCORE COMPETITION.
(a) Use of Credit Scores by Fannie Mae in Purchasing
Residential Mortgages.--Section 302(b) of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1717(b))
is amended by adding at the end the following:
[[Page H4336]]
``(7)(A) Definitions.--In this paragraph--
``(i) the term `credit score' means a numerical value or a
categorization created by a third party derived from a
statistical tool or modeling system used by a person who
makes or arranges a loan to predict the likelihood of certain
credit behaviors, including default; and
``(ii) the term `residential mortgage' has the meaning
given the term in section 302 of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451).
``(B) Use of Credit Scores.--The corporation shall
condition purchase of a residential mortgage by the
corporation under this subsection on the provision of a
credit score for the borrower only if--
``(i) the credit score is derived from any credit scoring
model that has been validated and approved by the corporation
under this paragraph; and
``(ii) the corporation provides for the use of the credit
score by all of the automated underwriting systems of the
corporation and any other procedures and systems used by the
corporation to purchase residential mortgages that use a
credit score.
``(C) Validation and Approval Process.--The corporation
shall establish a validation and approval process for the use
of credit score models, under which the corporation may not
validate and approve a credit score model unless the credit
score model--
``(i) satisfies minimum requirements of integrity,
reliability, and accuracy;
``(ii) has a historical record of measuring and predicting
default rates and other credit behaviors;
``(iii) is consistent with the safe and sound operation of
the corporation;
``(iv) complies with any standards and criteria established
by the Director of the Federal Housing Finance Agency under
section 1328(1) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992; and
``(v) satisfies any other requirements, as determined by
the corporation.
``(D) Replacement of Credit Score Model.--If the
corporation has validated and approved 1 or more credit score
models under subparagraph (C) and the corporation validates
and approves an additional credit score model, the
corporation may determine that--
``(i) the additional credit score model has replaced the
credit score model or credit score models previously
validated and approved; and
``(ii) the credit score model or credit score models
previously validated and approved shall no longer be
considered validated and approved for the purposes of
subparagraph (B).
``(E) Public Disclosure.--Upon establishing the validation
and approval process required under subparagraph (C), the
corporation shall make publicly available a description of
the validation and approval process.
``(F) Application.--Not later than 30 days after the
effective date of this paragraph, the corporation shall
solicit applications from developers of credit scoring models
for the validation and approval of those models under the
process required under subparagraph (C).
``(G) Timeframe for Determination; Notice.--
``(i) In general.--The corporation shall make a
determination with respect to any application submitted under
subparagraph (F), and provide notice of that determination to
the applicant, before a date established by the corporation
that is not later than 180 days after the date on which an
application is submitted to the corporation.
``(ii) Extensions.--The Director of the Federal Housing
Finance Agency may authorize not more than 2 extensions of
the date established under clause (i), each of which shall
not exceed 30 days, upon a written request and a showing of
good cause by the corporation.
``(iii) Status notice.--The corporation shall provide
notice to an applicant regarding the status of an application
submitted under subparagraph (F) not later than 60 days after
the date on which the application was submitted to the
corporation.
``(iv) Reasons for disapproval.--If an application
submitted under subparagraph (F) is disapproved, the
corporation shall provide to the applicant the reasons for
the disapproval not later than 30 days after a determination
is made under this subparagraph.
``(H) Authority of Director.--If the corporation elects to
use a credit score model under this paragraph, the Director
of the Federal Housing Finance Agency shall require the
corporation to periodically review the validation and
approval process required under subparagraph (C) as the
Director determines necessary to ensure that the process
remains appropriate and adequate and complies with any
standards and criteria established pursuant to section
1328(1) of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992.
``(I) Extension.--If, as of the effective date of this
paragraph, a credit score model has not been approved under
subparagraph (C), the corporation may use a credit score
model that was in use before the effective date of this
paragraph, if necessary to prevent substantial market
disruptions, until the earlier of--
``(i) the date on which a credit score model is validated
and approved under subparagraph (C); or
``(ii) the date that is 2 years after the effective date of
this paragraph.''.
(b) Use of Credit Scores by Freddie Mac in Purchasing
Residential Mortgages.--Section 305 of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454) is amended by
adding at the end the following:
``(d)(1) Definition.--In this subsection, the term `credit
score' means a numerical value or a categorization created by
a third party derived from a statistical tool or modeling
system used by a person who makes or arranges a loan to
predict the likelihood of certain credit behaviors, including
default.
``(2) Use of Credit Scores.--The Corporation shall
condition purchase of a residential mortgage by the
Corporation under this section on the provision of a credit
score for the borrower only if--
``(A) the credit score is derived from any credit scoring
model that has been validated and approved by the Corporation
under this subsection; and
``(B) the Corporation provides for the use of the credit
score by all of the automated underwriting systems of the
Corporation and any other procedures and systems used by the
Corporation to purchase residential mortgages that use a
credit score.
``(3) Validation and Approval Process.--The Corporation
shall establish a validation and approval process for the use
of credit score models, under which the Corporation may not
validate and approve a credit score model unless the credit
score model--
``(A) satisfies minimum requirements of integrity,
reliability, and accuracy;
``(B) has a historical record of measuring and predicting
default rates and other credit behaviors;
``(C) is consistent with the safe and sound operation of
the corporation;
``(D) complies with any standards and criteria established
by the Director of the Federal Housing Finance Agency under
section 1328(1) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992; and
``(E) satisfies any other requirements, as determined by
the Corporation.
``(4) Replacement of Credit Score Model.--If the
Corporation has validated and approved 1 or more credit score
models under paragraph (3) and the Corporation validates and
approves an additional credit score model, the Corporation
may determine that--
``(A) the additional credit score model has replaced the
credit score model or credit score models previously
validated and approved; and
``(B) the credit score model or credit score models
previously validated and approved shall no longer be
considered validated and approved for the purposes of
paragraph (2).
``(5) Public Disclosure.--Upon establishing the validation
and approval process required under paragraph (3), the
Corporation shall make publicly available a description of
the validation and approval process.
``(6) Application.--Not later than 30 days after the
effective date of this subsection, the Corporation shall
solicit applications from developers of credit scoring models
for the validation and approval of those models under the
process required under paragraph (3).
``(7) Timeframe for Determination; Notice.--
``(A) In general.--The Corporation shall make a
determination with respect to any application submitted under
paragraph (6), and provide notice of that determination to
the applicant, before a date established by the Corporation
that is not later than 180 days after the date on which an
application is submitted to the Corporation.
``(B) Extensions.--The Director of the Federal Housing
Finance Agency may authorize not more than 2 extensions of
the date established under subparagraph (A), each of which
shall not exceed 30 days, upon a written request and a
showing of good cause by the Corporation.
``(C) Status notice.--The Corporation shall provide notice
to an applicant regarding the status of an application
submitted under paragraph (6) not later than 60 days after
the date on which the application was submitted to the
Corporation.
``(D) Reasons for disapproval.--If an application submitted
under paragraph (6) is disapproved, the Corporation shall
provide to the applicant the reasons for the disapproval not
later than 30 days after a determination is made under this
paragraph.
``(8) Authority of Director.--If the Corporation elects to
use a credit score under this subsection, the Director of the
Federal Housing Finance Agency shall require the Corporation
to periodically review the validation and approval process
required under paragraph (3) as the Director determines
necessary to ensure that the process remains appropriate and
adequate and complies with any standards and criteria
established pursuant to section 1328(1) of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992.
``(9) Extension.--If, as of the effective date of this
subsection, a credit score model has not been approved under
paragraph (3), the Corporation may use a credit score model
that was in use before the effective date of this subsection,
if necessary to prevent substantial market disruptions, until
the earlier of--
``(A) the date on which a credit score model is validated
and approved under paragraph (3); or
``(B) the date that is 2 years after the effective date of
this subsection.''.
(c) Authority of the Director.--Subpart A of part 2 of
subtitle A of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4541 et seq.) is
amended by adding at the end the following:
[[Page H4337]]
``SEC. 1328. REGULATIONS FOR USE OF CREDIT SCORES.
``The Director shall--
``(1) by regulation, establish standards and criteria for
any process used by an enterprise to validate and approve
credit scoring models pursuant to section 302(b)(7) of the
Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(7)) and section 305(d) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(d)); and
``(2) ensure that any credit scoring model that is
validated and approved by an enterprise under section
302(b)(7) (12 U.S.C. 1717(b)(7)) of the Federal National
Mortgage Association Charter Act or section 305(d) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(d)) meets the requirements of clauses (i), (ii), and
(iii) of section 302(b)(7)(C) of the Federal National
Mortgage Association Charter Act and subparagraphs (A), (B),
and (C) of section 305(d)(3) of the Federal Home Loan
Mortgage Corporation Act, respectively.''.
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the date that is 180 days after
the date of enactment of this Act.
SEC. 311. GAO REPORT ON PUERTO RICO FORECLOSURES.
Not earlier than 1 year after the date of enactment of this
Act, the Comptroller General of the United States shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report on foreclosures in
the Commonwealth of Puerto Rico, including--
(1) the rate of foreclosures in the Commonwealth of Puerto
Rico before and after Hurricane Maria;
(2) the rate of return for housing developers in the
Commonwealth of Puerto Rico before and after Hurricane Maria;
(3) the rate of delinquency in the Commonwealth of Puerto
Rico before and after Hurricane Maria;
(4) the rate of homeownership in the Commonwealth of Puerto
Rico before and after Hurricane Maria; and
(5) the rate of defaults on federally insured mortgages in
the Commonwealth of Puerto Rico before and after Hurricane
Maria.
SEC. 312. REPORT ON CHILDREN'S LEAD-BASED PAINT HAZARD
PREVENTION AND ABATEMENT.
(a) Definitions.--In this section--
(1) the term ``Department'' means the Department of Housing
and Urban Development; and
(2) the term ``public housing agency'' has the meaning
given the term in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)).
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development shall submit to Congress a report that includes--
(1) an overview of existing policies and enforcement of the
Department, including public outreach, relating to lead-based
paint hazard prevention and abatement;
(2) recommendations and best practices for the Department,
public housing agencies, and landlords for improving lead-
based paint hazard prevention standards and Federal lead
prevention and abatement policies to protect the
environmental health and safety of children, including within
housing receiving assistance from or occupied by families
receiving housing assistance from the Department; and
(3) recommendations for legislation to improve lead-based
paint hazard prevention and abatement.
SEC. 313. FORECLOSURE RELIEF AND EXTENSION FOR
SERVICEMEMBERS.
Section 710(d) of the Honoring America's Veterans and
Caring for Camp Lejeune Families Act of 2012 (Public Law 112-
154; 50 U.S.C. 3953 note) is amended by striking paragraphs
(1) and (3).
TITLE IV--TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES
SEC. 401. ENHANCED SUPERVISION AND PRUDENTIAL STANDARDS FOR
CERTAIN BANK HOLDING COMPANIES.
(a) In General.--Section 165 of the Financial Stability Act
of 2010 (12 U.S.C. 5365) is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``$50,000,000,000'' and inserting
``$250,000,000,000''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``may'' and inserting
``shall'';
(ii) in subparagraph (B), by striking ``$50,000,000,000''
and inserting ``the applicable threshold''; and
(iii) by adding at the end the following:
``(C) Risks to financial stability and safety and
soundness.--The Board of Governors may by order or rule
promulgated pursuant to section 553 of title 5, United States
Code, apply any prudential standard established under this
section to any bank holding company or bank holding companies
with total consolidated assets equal to or greater than
$100,000,000,000 to which the prudential standard does not
otherwise apply provided that the Board of Governors--
``(i) determines that application of the prudential
standard is appropriate--
``(I) to prevent or mitigate risks to the financial
stability of the United States, as described in paragraph
(1); or
``(II) to promote the safety and soundness of the bank
holding company or bank holding companies; and
``(ii) takes into consideration the bank holding company's
or bank holding companies' capital structure, riskiness,
complexity, financial activities (including financial
activities of subsidiaries), size, and any other risk-related
factors that the Board of Governors deems appropriate.'';
(2) in subsection (b)(1)--
(A) in subparagraph (A)(iv), by striking ``and credit
exposure report''; and
(B) in subparagraph (B)(ii), by inserting ``, including
credit exposure reports'' before the semicolon at the end;
(3) in subsection (d)(2), in the matter preceding
subparagraph (A), by striking ``shall'' and inserting
``may'';
(4) in subsection (h)(2), by striking ``$10,000,000,000''
each place that term appears and inserting
``$50,000,000,000'';
(5) in subsection (i)--
(A) in paragraph (1)(B)(i)--
(i) by striking ``3'' and inserting ``2''; and
(ii) by striking ``, adverse,''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the first sentence, by striking ``semiannual'' and
inserting ``periodic''; and
(II) in the second sentence--
(aa) by striking ``$10,000,000,000'' and inserting
``$250,000,000,000''; and
(bb) by striking ``annual'' and inserting ``periodic''; and
(ii) in subparagraph (C)(ii)--
(I) by striking ``3'' and inserting ``2''; and
(II) by striking ``, adverse,''; and
(6) in subsection (j)(1), in the first sentence, by
striking ``$50,000,000,000'' and inserting
``$250,000,000,000''.
(b) Rule of Construction.--Nothing in subsection (a) shall
be construed to limit--
(1) the authority of the Board of Governors of the Federal
Reserve System, in prescribing prudential standards under
section 165 of the Financial Stability Act of 2010 (12 U.S.C.
5365) or any other law, to tailor or differentiate among
companies on an individual basis or by category, taking into
consideration their capital structure, riskiness, complexity,
financial activities (including financial activities of their
subsidiaries), size, and any other risk-related factors that
the Board of Governors deems appropriate; or
(2) the supervisory, regulatory, or enforcement authority
of an appropriate Federal banking agency to further the safe
and sound operation of an institution under the supervision
of the appropriate Federal banking agency.
(c) Technical and Conforming Amendments.--
(1) Financial stability act of 2010.--The Financial
Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended--
(A) in section 115(a)(2)(B) (12 U.S.C. 5325(a)(2)(B)), by
striking ``$50,000,000,000'' and inserting ``the applicable
threshold'';
(B) in section 116(a) (12 U.S.C. 5326(a)), in the matter
preceding paragraph (1), by striking ``$50,000,000,000'' and
inserting ``$250,000,000,000'';
(C) in section 121(a) (12 U.S.C. 5331(a)), in the matter
preceding paragraph (1), by striking ``$50,000,000,000'' and
inserting ``$250,000,000,000'';
(D) in section 155(d) (12 U.S.C. 5345(d)), by striking
``50,000,000,000'' and inserting ``$250,000,000,000'';
(E) in section 163(b) (12 U.S.C. 5363(b)), by striking
``$50,000,000,000'' each place that term appears and
inserting ``$250,000,000,000''; and
(F) in section 164 (12 U.S.C. 5364), by striking
``$50,000,000,000'' and inserting ``$250,000,000,000''.
(2) Federal reserve act.--The second subsection (s)
(relating to assessments) of section 11 of the Federal
Reserve Act (12 U.S.C. 248(s)) is amended--
(A) in paragraph (2)--
(i) in subparagraph (A), by striking ``$50,000,000,000''
and inserting ``$100,000,000,000''; and
(ii) in subparagraph (B), by striking ``$50,000,000,000''
and inserting ``$100,000,000,000''; and
(B) by adding at the end the following:
``(3) Tailoring assessments.--In collecting assessments,
fees, or other charges under paragraph (1) from each company
described in paragraph (2) with total consolidated assets of
between $100,000,000,000 and $250,000,000,000, the Board
shall adjust the amount charged to reflect any changes in
supervisory and regulatory responsibilities resulting from
the Economic Growth, Regulatory Relief, and Consumer
Protection Act with respect to each such company.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
that is 18 months after the date of enactment of this Act.
(2) Exception.--Notwithstanding paragraph (1), the
amendments made by this section shall take effect on the date
of enactment of this Act with respect to any bank holding
company with total consolidated assets of less than
$100,000,000,000.
(3) Additional authority.--Before the effective date
described in paragraph (1), the Board of Governors of the
Federal Reserve System may by order exempt any bank holding
company with total consolidated assets of less than
$250,000,000,000 from any prudential standard under section
165 of the Financial Stability Act of 2010 (12 U.S.C. 5365).
(4) Rule of construction.--Nothing in this section shall be
construed to prohibit the Board of Governors of the Federal
Reserve
[[Page H4338]]
System from issuing an order or rule making under section
165(a)(2)(C) of the Financial Stability Act of 2010 (12
U.S.C. 5365(a)(2)(C)), as added by this section, before the
effective date described in paragraph (1).
(e) Supervisory Stress Test.--Beginning on the effective
date described in subsection (d)(1), the Board of Governors
of the Federal Reserve System shall, on a periodic basis,
conduct supervisory stress tests of bank holding companies
with total consolidated assets equal to or greater than
$100,000,000,000 and total consolidated assets of less than
$250,000,000,000 to evaluate whether such bank holding
companies have the capital, on a total consolidated basis,
necessary to absorb losses as a result of adverse economic
conditions.
(f) Global Systemically Important Bank Holding Companies.--
Any bank holding company, regardless of asset size, that has
been identified as a global systemically important BHC under
section 217.402 of title 12, Code of Federal Regulations,
shall be considered a bank holding company with total
consolidated assets equal to or greater than $250,000,000,000
with respect to the application of standards or requirements
under--
(1) this section;
(2) sections 116(a), 121(a), 155(d), 163(b), 164, and 165
of the Financial Stability Act of 2010 (12 U.S.C. 5326(a),
5331(a), 5345(d), 5363(b), 5364, 5365); and
(3) paragraph (2)(A) of the second subsection (s) (relating
to assessments) of section 11 of the Federal Reserve Act (12
U.S.C. 248(s)(2)).
(g) Clarification for Foreign Banks.--Nothing in this
section shall be construed to--
(1) affect the legal effect of the final rule of the Board
of Governors of the Federal Reserve System entitled
``Enhanced Prudential Standards for Bank Holding Companies
and Foreign Banking Organizations'' (79 Fed. Reg. 17240
(March 27, 2014)) as applied to foreign banking organizations
with total consolidated assets equal to or greater than
$100,000,000,000; or
(2) limit the authority of the Board of Governors of the
Federal Reserve System to require the establishment of an
intermediate holding company under, implement enhanced
prudential standards with respect to, or tailor the
regulation of a foreign banking organization with total
consolidated assets equal to or greater than
$100,000,000,000.
SEC. 402. SUPPLEMENTARY LEVERAGE RATIO FOR CUSTODIAL BANKS.
(a) Definition.--In this section, the term ``custodial
bank'' means any depository institution holding company
predominantly engaged in custody, safekeeping, and asset
servicing activities, including any insured depository
institution subsidiary of such a holding company.
(b) Regulations.--
(1) Definition.--In this subsection, the term ``central
bank'' means--
(A) the Federal Reserve System;
(B) the European Central Bank; and
(C) central banks of member countries of the Organisation
for Economic Co-operation and Development, if--
(i) the member country has been assigned a zero percent
risk weight under sections 3.32, 217.32, and 324.32 of title
12, Code of Federal Regulations, or any successor regulation;
and
(ii) the sovereign debt of such member country is not in
default or has not been in default during the previous 5
years.
(2) Regulations.--The appropriate Federal banking agencies
shall promulgate regulations to amend sections 3.10, 217.10,
and 324.10 of title 12, Code of Federal Regulations, to
specify that--
(A) subject to subparagraph (B), funds of a custodial bank
that are deposited with a central bank shall not be taken
into account when calculating the supplementary leverage
ratio as applied to the custodial bank; and
(B) with respect to the funds described in subparagraph
(A), any amount that exceeds the total value of deposits of
the custodial bank that are linked to fiduciary or custodial
and safekeeping accounts shall be taken into account when
calculating the supplementary leverage ratio as applied to
the custodial bank.
(c) Rule of Construction.--Nothing in subsection (b) shall
be construed to limit the authority of the appropriate
Federal banking agencies to tailor or adjust the
supplementary leverage ratio or any other leverage ratio for
any company that is not a custodial bank.
SEC. 403. TREATMENT OF CERTAIN MUNICIPAL OBLIGATIONS.
(a) In General.--Section 18 of the Federal Deposit
Insurance Act (12 U.S.C. 1828) is amended--
(1) by moving subsection (z) so that it appears after
subsection (y); and
(2) by adding at the end the following:
``(aa) Treatment of Certain Municipal Obligations.--
``(1) Definitions.--In this subsection--
``(A) the term `investment grade', with respect to an
obligation, has the meaning given the term in section 1.2 of
title 12, Code of Federal Regulations, or any successor
thereto;
``(B) the term `liquid and readily-marketable' has the
meaning given the term in section 249.3 of title 12, Code of
Federal Regulations, or any successor thereto; and
``(C) the term `municipal obligation' means an obligation
of--
``(i) a State or any political subdivision thereof; or
``(ii) any agency or instrumentality of a State or any
political subdivision thereof.
``(2) Municipal obligations.--For purposes of the final
rule entitled `Liquidity Coverage Ratio: Liquidity Risk
Measurement Standards' (79 Fed. Reg. 61439 (October 10,
2014)), the final rule entitled `Liquidity Coverage Ratio:
Treatment of U.S. Municipal Securities as High-Quality Liquid
Assets' (81 Fed. Reg. 21223 (April 11, 2016)), and any other
regulation that incorporates a definition of the term `high-
quality liquid asset' or another substantially similar term,
the appropriate Federal banking agencies shall treat a
municipal obligation as a high-quality liquid asset that is a
level 2B liquid asset if that obligation is, as of the date
of calculation--
``(A) liquid and readily-marketable; and
``(B) investment grade.''.
(b) Amendment to Liquidity Coverage Ratio Regulations.--Not
later than 90 days after the date of enactment of this Act,
the Federal Deposit Insurance Corporation, the Board of
Governors of the Federal Reserve System, and the Comptroller
of the Currency shall amend the final rule entitled
``Liquidity Coverage Ratio: Liquidity Risk Measurement
Standards'' (79 Fed. Reg. 61439 (October 10, 2014)) and the
final rule entitled ``Liquidity Coverage Ratio: Treatment of
U.S. Municipal Securities as High-Quality Liquid Assets'' (81
Fed. Reg. 21223 (April 11, 2016)) to implement the amendments
made by this section.
TITLE V--ENCOURAGING CAPITAL FORMATION
SEC. 501. NATIONAL SECURITIES EXCHANGE REGULATORY PARITY.
Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C.
77r(b)(1)) is amended--
(1) by striking subparagraph (A);
(2) in subparagraph (B)--
(A) by inserting ``a security designated as qualified for
trading in the national market system pursuant to section
11A(a)(2) of the Securities Exchange Act of 1934 (15 U.S.C.
78k-1(a)(2)) that is'' before ``listed''; and
(B) by striking ``that has listing standards that the
Commission determines by rule (on its own initiative or on
the basis of a petition) are substantially similar to the
listing standards applicable to securities described in
subparagraph (A)'';
(3) in subparagraph (C), by striking ``or (B)''; and
(4) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
SEC. 502. SEC STUDY ON ALGORITHMIC TRADING.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the staff of the Securities and
Exchange Commission shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report
on the risks and benefits of algorithmic trading in capital
markets in the United States.
(b) Matters Required To Be Included.--The matters covered
by the report required by subsection (a) shall include the
following:
(1) An assessment of the effect of algorithmic trading in
equity and debt markets in the United States on the provision
of liquidity in stressed and normal market conditions.
(2) An assessment of the benefits and risks to equity and
debt markets in the United States by algorithmic trading.
(3) An analysis of whether the activity of algorithmic
trading and entities that engage in algorithmic trading are
subject to appropriate Federal supervision and regulation.
(4) A recommendation of whether--
(A) based on the analysis described in paragraphs (1), (2),
and (3), any changes should be made to regulations; and
(B) the Securities and Exchange Commission needs additional
legal authorities or resources to effect the changes
described in subparagraph (A).
SEC. 503. ANNUAL REVIEW OF GOVERNMENT-BUSINESS FORUM ON
CAPITAL FORMATION.
Section 503 of the Small Business Investment Incentive Act
of 1980 (15 U.S.C. 80c-1) is amended by adding at the end the
following:
``(e) The Commission shall--
``(1) review the findings and recommendations of the forum;
and
``(2) each time the forum submits a finding or
recommendation to the Commission, promptly issue a public
statement--
``(A) assessing the finding or recommendation of the forum;
and
``(B) disclosing the action, if any, the Commission intends
to take with respect to the finding or recommendation.''.
SEC. 504. SUPPORTING AMERICA'S INNOVATORS.
Section 3(c)(1) of the Investment Company Act of 1940 (15
U.S.C. 80a-3(c)(1)) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``(or, in the case of a qualifying venture capital fund, 250
persons)'' after ``one hundred persons''; and
(2) by adding at the end the following:
``(C)(i) The term `qualifying venture capital fund' means a
venture capital fund that has not more than $10,000,000 in
aggregate capital contributions and uncalled committed
capital, with such dollar amount to be indexed for inflation
once every 5 years by the Commission, beginning from a
measurement made by the Commission on a date selected by the
Commission, rounded to the nearest $1,000,000.
``(ii) The term `venture capital fund' has the meaning
given the term in section 275.203(l)-1 of title 17, Code of
Federal Regulations, or any successor regulation.''.
[[Page H4339]]
SEC. 505. SECURITIES AND EXCHANGE COMMISSION OVERPAYMENT
CREDIT.
(a) Definitions.--In this section--
(1) the term ``Commission'' means the Securities and
Exchange Commission;
(2) the term ``national securities association'' means an
association that is registered under section 15A of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-3); and
(3) the term ``national securities exchange'' means an
exchange that is registered as a national securities exchange
under section 6 of the Securities Exchange Act of 1934 (15
U.S.C. 78f).
(b) Credit for Overpayment of Fees.--Notwithstanding
section 31(j) of the Securities Exchange Act of 1934 (15
U.S.C. 78ee(j)), and subject to subsection (c) of this
section, if a national securities exchange or a national
securities association has paid fees and assessments to the
Commission in an amount that is more than the amount that the
exchange or association was required to pay under section 31
of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) and,
not later than 10 years after the date of such payment, the
exchange or association informs the Commission about the
payment of such excess amount, the Commission shall offset
future fees and assessments due by that exchange or
association in an amount that is equal to the difference
between the amount that the exchange or association paid and
the amount that the exchange or association was required to
pay under such section 31.
(c) Applicability.--Subsection (b) shall apply only to fees
and assessments that a national securities exchange or a
national securities association was required to pay to the
Commission before the date of enactment of this Act.
SEC. 506. U.S. TERRITORIES INVESTOR PROTECTION.
(a) In General.--Section 6(a) of the Investment Company Act
of 1940 (15 U.S.C. 80a-6(a)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively.
(b) Effective Date and Safe Harbor.--
(1) Effective date.--Except as provided in paragraph (2),
the amendment made by subsection (a) shall take effect on the
date of enactment of this Act.
(2) Safe harbor.--With respect to a company that is exempt
under section 6(a)(1) of the Investment Company Act of 1940
(15 U.S.C. 80a-6(a)(1)) on the day before the date of
enactment of this Act, the amendment made by subsection (a)
shall take effect on the date that is 3 years after the date
of enactment of this Act.
(3) Extension of safe harbor.--The Securities and Exchange
Commission, by rule or regulation upon its own motion, or by
order upon application, may conditionally or unconditionally,
under section 6(c) of the Investment Company Act of 1940 (15
U.S.C. 80a-6(c)), further delay the effective date for a
company described in paragraph (2) for a maximum of 3 years
following the initial 3-year period if, before the end of the
initial 3-year period, the Commission determines that such a
rule, regulation, motion, or order is necessary or
appropriate in the public interest and for the protection of
investors.
SEC. 507. ENCOURAGING EMPLOYEE OWNERSHIP.
Not later than 60 days after the date of the enactment of
this Act, the Securities and Exchange Commission shall revise
section 230.701(e) of title 17, Code of Federal Regulations,
so as to increase from $5,000,000 to $10,000,000 the
aggregate sales price or amount of securities sold during any
consecutive 12-month period in excess of which the issuer is
required under such section to deliver an additional
disclosure to investors. The Commission shall index for
inflation such aggregate sales price or amount every 5 years
to reflect the change in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics,
rounding to the nearest $1,000,000.
SEC. 508. IMPROVING ACCESS TO CAPITAL.
The Securities and Exchange Commission shall amend--
(1) section 230.251 of title 17, Code of Federal
Regulations, to remove the requirement that the issuer not be
subject to section 13 or 15(d) of the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) immediately before the
offering; and
(2) section 230.257 of title 17, Code of Federal
Regulations, with respect to an offering described in section
230.251(a)(2) of title 17, Code of Federal Regulations, to
deem any issuer that is subject to section 13 or 15(d) of the
Securities Exchange Act of 1934 as having met the periodic
and current reporting requirements of section 230.257 of
title 17, Code of Federal Regulations, if such issuer meets
the reporting requirements of section 13 of the Securities
Exchange Act of 1934.
SEC. 509. PARITY FOR CLOSED-END COMPANIES REGARDING OFFERING
AND PROXY RULES.
(a) Revision to Rules.--Not later than the end of the 1-
year period beginning on the date of enactment of this Act,
the Securities and Exchange Commission shall propose and, not
later than 2 years after the date of enactment of this Act,
the Securities and Exchange Commission shall finalize any
rules, as appropriate, to allow any closed-end company, as
defined in section 5(a)(2) of the Investment Company Act of
1940 (15 U.S.C. 80a-5), that is registered as an investment
company under such Act, and is listed on a national
securities exchange or that makes periodic repurchase offers
pursuant to section 270.23c-3 of title 17, Code of Federal
Regulations, to use the securities offering and proxy rules,
subject to conditions the Commission determines appropriate,
that are available to other issuers that are required to file
reports under section 13 or section 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. 78m; 78o(d)). Any action that
the Commission takes pursuant to this subsection shall
consider the availability of information to investors,
including what disclosures constitute adequate information to
be designated as a ``well-known seasoned issuer''.
(b) Treatment if Revisions Not Completed in a Timely
Manner.--If the Commission fails to complete the revisions
required by subsection (a) by the time required by such
subsection, any registered closed-end company that is listed
on a national securities exchange or that makes periodic
repurchase offers pursuant to section 270.23c-3 of title 17,
Code of Federal Regulations, shall be deemed to be an
eligible issuer under the final rule of the Commission titled
``Securities Offering Reform'' (70 Fed. Reg. 44722; published
August 3, 2005).
(c) Rules of Construction.--
(1) No effect on rule 482.--Nothing in this section or the
amendments made by this section shall be construed to impair
or limit in any way a registered closed-end company from
using section 230.482 of title 17, Code of Federal
Regulations, to distribute sales material.
(2) References.--Any reference in this section to a section
of title 17, Code of Federal Regulations, or to any form or
schedule means such rule, section, form, or schedule, or any
successor to any such rule, section, form, or schedule.
TITLE VI--PROTECTIONS FOR STUDENT BORROWERS
SEC. 601. PROTECTIONS IN THE EVENT OF DEATH OR BANKRUPTCY.
(a) In General.--Section 140 of the Truth in Lending Act
(15 U.S.C. 1650) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1) through (8) as
paragraphs (2) through (9), respectively; and
(B) by inserting before paragraph (2), as so redesignated,
the following:
``(1) the term `cosigner'--
``(A) means any individual who is liable for the obligation
of another without compensation, regardless of how designated
in the contract or instrument with respect to that
obligation, other than an obligation under a private
education loan extended to consolidate a consumer's pre-
existing private education loans;
``(B) includes any person the signature of which is
requested as condition to grant credit or to forbear on
collection; and
``(C) does not include a spouse of an individual described
in subparagraph (A), the signature of whom is needed to
perfect the security interest in a loan.''; and
(2) by adding at the end the following:
``(g) Additional Protections Relating to Borrower or
Cosigner of a Private Education Loan.--
``(1) Prohibition on automatic default in case of death or
bankruptcy of non-student obligor.--With respect to a private
education loan involving a student obligor and 1 or more
cosigners, the creditor shall not declare a default or
accelerate the debt against the student obligor on the sole
basis of a bankruptcy or death of a cosigner.
``(2) Cosigner release in case of death of borrower.--
``(A) Release of cosigner.--The holder of a private
education loan, when notified of the death of a student
obligor, shall release within a reasonable timeframe any
cosigner from the obligations of the cosigner under the
private education loan.
``(B) Notification of release.--A holder or servicer of a
private education loan, as applicable, shall within a
reasonable time-frame notify any cosigners for the private
education loan if a cosigner is released from the obligations
of the cosigner for the private education loan under this
paragraph.
``(C) Designation of individual to act on behalf of the
borrower.--Any lender that extends a private education loan
shall provide the student obligor an option to designate an
individual to have the legal authority to act on behalf of
the student obligor with respect to the private education
loan in the event of the death of the student obligor.''.
(b) Applicability.--The amendments made by subsection (a)
shall only apply to private education loan agreements entered
into on or after the date that is 180 days after the date of
enactment of this Act.
SEC. 602. REHABILITATION OF PRIVATE EDUCATION LOANS.
(a) In General.--Section 623(a)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(a)(1)) is amended by adding
at the end the following:
``(E) Rehabilitation of private education loans.--
``(i) In general.--Notwithstanding any other provision of
this section, a consumer may request a financial institution
to remove from a consumer report a reported default regarding
a private education loan, and such information shall not be
considered inaccurate, if--
``(I) the financial institution chooses to offer a loan
rehabilitation program which includes, without limitation, a
requirement of
[[Page H4340]]
the consumer to make consecutive on-time monthly payments in
a number that demonstrates, in the assessment of the
financial institution offering the loan rehabilitation
program, a renewed ability and willingness to repay the loan;
and
``(II) the requirements of the loan rehabilitation program
described in subclause (I) are successfully met.
``(ii) Banking agencies.--
``(I) In general.--If a financial institution is supervised
by a Federal banking agency, the financial institution shall
seek written approval concerning the terms and conditions of
the loan rehabilitation program described in clause (i) from
the appropriate Federal banking agency.
``(II) Feedback.--An appropriate Federal banking agency
shall provide feedback to a financial institution within 120
days of a request for approval under subclause (I).
``(iii) Limitation.--
``(I) In general.--A consumer may obtain the benefits
available under this subsection with respect to
rehabilitating a loan only 1 time per loan.
``(II) Rule of construction.--Nothing in this subparagraph
may be construed to require a financial institution to offer
a loan rehabilitation program or to remove any reported
default from a consumer report as a consideration of a loan
rehabilitation program, except as described in clause (i).
``(iv) Definitions.--For purposes of this subparagraph--
``(I) the term `appropriate Federal banking agency' has the
meaning given the term in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and
``(II) the term `private education loan' has the meaning
given the term in section 140(a) of the Truth in Lending Act
(15 U.S.C. 1650(a)).''.
(b) GAO Study.--
(1) Study.--The Comptroller General of the United States
shall conduct a study, in consultation with the appropriate
Federal banking agencies, regarding--
(A) the implementation of subparagraph (E) of section
623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681s-
2(a)(1)) (referred to in this paragraph as ``the
provision''), as added by subsection (a);
(B) the estimated operational, compliance, and reporting
costs associated with the requirements of the provision;
(C) the effects of the requirements of the provision on the
accuracy of credit reporting;
(D) the risks to safety and soundness, if any, created by
the loan rehabilitation programs described in the provision;
and
(E) a review of the effectiveness and impact on the credit
of participants in any loan rehabilitation programs described
in the provision and whether such programs improved the
ability of participants in the programs to access credit
products.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report that contains all
findings and determinations made in conducting the study
required under paragraph (1).
SEC. 603. BEST PRACTICES FOR HIGHER EDUCATION FINANCIAL
LITERACY.
Section 514(a) of the Financial Literacy and Education
Improvement Act (20 U.S.C. 9703(a)) is amended by adding at
the end the following:
``(3) Best practices for teaching financial literacy.--
``(A) In general.--After soliciting public comments and
consulting with and receiving input from relevant parties,
including a diverse set of institutions of higher education
and other parties, the Commission shall, by not later than 1
year after the date of enactment of the Economic Growth,
Regulatory Relief, and Consumer Protection Act, establish
best practices for institutions of higher education regarding
methods to--
``(i) teach financial literacy skills; and
``(ii) provide useful and necessary information to assist
students at institutions of higher education when making
financial decisions related to student borrowing.
``(B) Best practices.--The best practices described in
subparagraph (A) shall include the following:
``(i) Methods to ensure that each student has a clear sense
of the student's total borrowing obligations, including
monthly payments, and repayment options.
``(ii) The most effective ways to engage students in
financial literacy education, including frequency and timing
of communication with students.
``(iii) Information on how to target different student
populations, including part-time students, first-time
students, and other nontraditional students.
``(iv) Ways to clearly communicate the importance of
graduating on a student's ability to repay student loans.
``(C) Maintenance of best practices.--The Commission shall
maintain and periodically update the best practices
information required under this paragraph and make the best
practices available to the public.
``(D) Rule of construction.--Nothing in this paragraph
shall be construed to require an institution of higher
education to adopt the best practices required under this
paragraph.''.
The SPEAKER pro tempore. The bill shall be debatable for 1 hour,
equally divided and controlled by the chair and ranking minority member
of the Committee on Financial Services.
The gentleman from Texas (Mr. Hensarling) and the gentlewoman from
California (Ms. Maxine Waters) each will control 30 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. HENSARLING. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days to revise and extend their remarks and submit
extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. HENSARLING. Mr. Speaker, I yield myself 3 minutes.
Mr. Speaker, for far too long, far too many people in our country
have struggled to make ends meet. They have struggled to buy a car.
They have struggled to buy a home. They have struggled--they have
struggled for their version of the American Dream.
I hear from these people frequently, Mr. Speaker. I hear from Colton
in Terrell, Texas, who said that he and his wife have been unable to
get a mortgage due to credit and that they were 25, 30 years old and
they had good credit but they were getting denied. They needed a home
to provide a sense of stability, but they couldn't get it due to
Washington's bureaucratic regulations.
Mr. Speaker, I heard from Dirk in Dallas. He said he used to have a
$100,000 line of credit from his bank. He had an unsecured signature
line of credit that he used for working capital for his small business.
He often paid it down to zero, and cash flow was ample, but then the
bank canceled it because of the bureaucratic government burden on the
banking system.
I heard from Sherry in Eustace, who said:
After a divorce 4 years ago, I needed to buy a car because
my car was over 10 years old. I had a checking account in my
name at my credit union, but they didn't loan me money for
the car.
{time} 1400
Mr. Speaker, we hear these stories far too often. The Main Street
banks and credit unions that these people depend on have been suffering
for years under the weight, the load, the volume, the complexity, and
the cost of heavy Washington bureaucratic red tape. They haven't been
able to serve these people to help get them into homes and to help get
them into cars.
As one west Texas banker told me, Mr. Speaker: ``My major risks are
not credit risks, risk of theft, or risk of some robber coming in with
a gun in my office, my number one risk is regulatory risk.''
We have been losing a community bank or credit union every other day
in America and, with it, the hopes and dreams of millions. But today,
that changes. Help is on the way with the Economic Growth, Regulatory
Relief, and Consumer Protection Act.
Mr. Speaker, this is the most pro-growth banking bill in a
generation. You would have to go back to 1999 to Gramm-Leach-Bliley.
Although we didn't have a formal conference with the Senate, I am proud
that over half of the bills in this package, including three-quarters
of the regulatory relief provisions, came from the House. These are the
provisions to help hardworking, struggling taxpayers get into home
mortgages, get into car loans, and get into their small businesses.
This is what will help drive 3 percent economic growth, which is the
birthright of all Americans.
Today is an important day in the history of economic opportunity in
America, and I encourage all of us to support the Economic Growth,
Regulatory Relief, and Consumer Protection Act.
Mr. Speaker, I reserve the balance of my time.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield myself such
time as I may consume.
Mr. Speaker, before I get into the remarks that I prepared, I think I
had better share this information with my colleagues. The FDIC released
its quarterly banking profile today for the first quarter of 2018, and
reported that banks made more money than they ever have. $56 billion in
profits in a single quarter represents a 27.5 percent surge compared to
2017. Some of these profits came from that so-called tax bill that we
passed, which we know was the Republican tax scam law.
[[Page H4341]]
Democrats passed the Dodd-Frank Wall Street Reform and Consumer
Protection Act to prevent another financial crisis and protect
consumers, investors, and our economy. The 2008 financial crisis
resulted in 9 million people losing their jobs, 11 million people
losing their homes to foreclosure, and the loss of $13 trillion in
wealth. It was an economic catastrophe that must never be repeated. Now
my colleagues on the other side of the aisle are determined to help
this President dismantle reforms that are designed to protect us from
that kind of devastation to communities.
Republicans are trying to pass this bill off as an effort solely
designed to benefit small community banks. But the truth is, the bill
is packed with poisonous provisions that benefit the megabanks like
Wells Fargo and companies like Equifax. It also weakens critical
mortgage protections to ensure borrowers can afford their loans, and
prevent discrimination and fraud.
One of the most harmful elements of this bill is its weakening of the
Home Mortgage Disclosure Act, referred to as HMDA, which is a key tool
to detect and prevent discriminatory practices in the mortgage market.
S. 2155 would allow 85 percent of depository institutions to avoid ever
having to report new HMDA data required by Dodd-Frank, even though they
are already collecting the data, badly undermining efforts to ensure
fair lending.
But that is not all. This bill guts many of the protections Democrats
put in place to reduce the risk of bank failures and bailouts and
ensure that bank failures don't bring down the economy. It weakens
stress tests and capital requirements for big banks, and undermines
supervision of large foreign banks like Deutsche Bank.
There is more. Despite Equifax's carelessness in exposing the
personal data of 148 million Americans, S. 2155 rewards Equifax and the
other two national credit bureaus by funneling more business their way.
It also takes away Active Duty servicemembers' rights to sue the credit
bureaus, even if the bureaus fail to provide required free credit
monitoring, or notify them of scams involving their personal
information.
Mr. Speaker, these are just some of the many ways the bill would be
harmful. Republicans have stacked the bill with provisions that have
nothing to do with benefiting hardworking Americans and everything to
do with helping out Wall Street.
Donald Trump and the Republicans already gave a huge gift to big
corporations with the tax scam, which came at the expense of
hardworking Americans. Now they are pushing this rotten giveaway to
Wall Street and big banks that harms consumers and increases the risk
of another financial crisis.
Mr. Speaker, I urge Members to oppose this bill, and I reserve the
balance of my time.
Mr. HENSARLING. Mr. Speaker, I am pleased to yield 2 minutes to the
gentleman from Missouri (Mr. Luetkemeyer), the leading voice in
Congress on trying to bring rationality to the SIFI designation and
accountability to the Financial Stability Oversight Council, the
chairman of the Subcommittee on Financial Institutions and Consumer
Credit.
Mr. LUETKEMEYER. Mr. Speaker, I thank Chairman Hensarling for his
commitment to regulatory relief. We wouldn't be here today if it wasn't
for his diligence and for the hard work of all of the great folks of
the Financial Services Committee, on both sides of the aisle.
Mr. Speaker, in the wake of the financial crisis the American people
needed regulatory relief that would lift the economy. Instead, Congress
responded with a framework that increased the cost of financial
products, restricted access to loans, and redistributed credit from the
middle-income borrowers to the high-income borrowers. Today, too many
consumers are left struggling to get the tools they need to achieve
financial independence.
S. 2155 is a big step in the right direction. The majority of the
provisions included in the bill come from bipartisan House-passed
measures, several of which wer included in my CLEARR Act. Despite what
rhetoric we might hear today, American borrowers are going to benefit
from the relief that extends from this bill.
However, the conversation cannot end with S. 2155. While the
provisions in this legislation are granting important relief, there is
so much more to be done. The Financial Services Committee has marked up
more than 100 bills this Congress, many of which have the support of
the ranking member and deserve to be considered by our colleagues in
the Senate.
We have to continue to rightsize regulation so that it is based not
just on size or a single arbitrary factor, but on thoughtful analysis
of an institution's business model and risk profile. Mr. Speaker,
arbitrary figures don't necessarily guarantee a financial system.
Mr. Speaker, I thank, again, the chairman for his diligent work on
this fine bill, and ask my colleagues to support S. 2155.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield myself such
time as I may consume.
Mr. Speaker, let me repeat: The FDIC released its quarterly banking
profile today for the first quarter of 2018, and reported that banks
made more money than they ever have. I have to say this over and over
again: $56 billion in profits in a single quarter represents a 27.5
percent surge compared to 2017. Some of these profits came from the tax
scam bill that was passed.
These banks are just greedy. They will never get enough. They want to
do away with Dodd-Frank because Dodd-Frank is protecting consumers from
their fraud. Look how much money they are making. All they will tell
you is this is all about community banks.
But let me just tell you that community banks, credit unions, and the
economy are doing great with Dodd-Frank reforms in place. The banking
industry keeps making record profits, an average of $167 billion in
annual profits in the last 3 years. Banks have increased lending to
businesses by 80 percent since 2010. Community banks are outperforming
larger banks in increased lending. Credit unions are growing and have
increased lending by more than 10 percent in 2014, 2015, 2016, and
2017.
Mr. Speaker, what more do they want? How much more money do they want
from consumers? What is it they would have us do? What is it they would
have us get rid of in Dodd-Frank that is protecting the average
consumer, everyday working people? What would they have us do so that
they can make more money?
Mr. Speaker, I reserve the balance of my time.
Mr. HENSARLING. Mr. Speaker, I am pleased to yield 2 minutes to the
gentleman from Michigan (Mr. Huizenga), the lead voice in the House for
capital formation for our start-ups and small businesses, the chairman
of the Subcommittee on Capital Markets, Securities, and Investment.
Mr. HUIZENGA. Mr. Speaker, like in Michigan, like so many other
places around the country, in 2008, we saw a massive economic downturn
where people lost their jobs, lost their savings, and some even lost
their homes. The Obama administration and their allies in Congress put
forward a very flawed solution, which was called Dodd-Frank, which led
to the slowest, weakest recovery in modern history. The American people
were sold a bill of goods.
Now what Congress is trying to do is get at the root cause. That is
not what they had done before. They had denied hardworking families the
economic recovery that they deserve. Economic growth stalled as access
to basic financial services became less and less available to small
businesses and lower income Americans. And America's small and medium-
sized community financial institutions were saddled with a crushing
regulatory burden. We are changing that in this bipartisan bill.
Instead of ending too-big-to-fail, this regulatory monstrosity,
called Dodd-Frank, enshrined too-small-to-succeed. On average, we are
losing a community financial institution a day because of the extensive
burdens placed on them by this one-size-fits-all regulatory structure.
These crushing regulations have made it more difficult for consumers
to access credit to buy a car, realize homeownership, save for
retirement, plan for their kids to go to college, climb the ladder of
opportunity, and grow their small businesses, which are critical to
growing our economy.
Today's bill, the Economic Growth, Regulatory Relief, and Consumer
Protection Act, begins to provide relief to consumers and small
businesses on
[[Page H4342]]
Main Street. This bipartisan bill is combined with the momentum created
by the tax reform bill that we had done previously. This bipartisan
bill will continue to unleash American innovation, jobs, and capital,
while supporting economic growth.
Now, you may have just heard that this is a Republican plan only.
Wrong. Sixty-seven votes in the Senate, including my two Democrat
Senators from Michigan, voted for this bill.
Mr. Speaker, I urge all of my colleagues to vote in favor of this
historic pro-growth bill, which we haven't seen in almost a generation,
not since Gramm-Leach-Bliley. I appreciate all of the work that has
been put into this bill in a bipartisan manner, and I look forward to
supporting it.
Ms. MAXINE WATERS of California. Mr. Speaker, some of the Senators
are saying they wish that they had never voted for the bill.
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from
Massachusetts (Mr. Capuano), a senior member of the Financial Services
Committee.
Mr. CAPUANO. Mr. Speaker, I thank the gentlewoman for yielding.
There are some good things in this bill. I wanted to work with all of
you to enshrine the good things and get rid of the bad things. We all
did. We all offered it for years because Dodd-Frank is a good law, but
it needs amending. We all agree. The limits are on it. We all have
admitted that we just kind of picked them at the time. We were in a
hurry, in a rush. But the amnesia around this place, I guess, is
endemic.
Maybe it is hard for you today to look people in the eye and say:
Gee, maybe you can't afford that loan.
But, for me, the hardest thing was looking people in the eye and
saying: I am sorry you are losing your home. I am sorry you are losing
your job. I am sorry your kids can't go to college because the economy
just collapsed.
The numbers are the numbers. But didn't you get those phone calls?
Didn't you hear from any of your constituents?
And what was your answer? Oh, the regulatory system is terrible.
You didn't answer that. You tried to help, and you couldn't because
the economy had gone down the toilet.
If this bill passes, which it will--I know you wouldn't come to the
floor unless you had the votes. I know that. I can count. When people
ask you the next time we have an economic collapse, when they ask you
what happened, here is the only answer you are going to be able to give
them: I voted for this bill today.
{time} 1415
The SPEAKER pro tempore (Mr. Francis Rooney of Florida). The time of
the gentleman has expired.
Members are reminded to direct their remarks to the Chair.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield an additional
30 seconds to the gentleman from Massachusetts.
Mr. CAPUANO. Mr. Speaker, the details of this bill, getting rid of
HMDA requirements, do you not care about discrimination? Do you not
recognize that it is real and that it exists? But, apparently, you
don't care.
Do you not care that your constituents had their information sold out
from under them and then not protected? But now you are going to give
free credit monitoring only for people in the military--not for your
mother, not for your sister, not for your student children, just for
the military.
The bill has some good provisions in it. I am happy to work with you
on some of these.
This bill goes too far, and you are responsible.
The SPEAKER pro tempore. Members are again reminded to direct their
remarks to the Chair.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Wisconsin (Mr. Duffy), chairman of the Subcommittee on Housing and
Insurance and the author of the Family Self-Sufficiency provision in S.
2155.
Mr. DUFFY. Mr. Speaker, I thank Chairman Hensarling for all of his
work on Dodd-Frank reform.
I think it is important that we look back.
When Dodd-Frank passed, it was passed with a blindfold over our eyes,
because the studies weren't even done about what the root cause of the
crisis even was. Democrats opened up their files and poured every bill
they had dreamed of for 20 years into Dodd-Frank.
And what did it do to my constituents, my small banks and credit
unions? It made them shut their doors or made them consolidate with a
bigger bank. So, now, Spooner, Wisconsin, the decisions of the bank
might not be made in Spooner, but they might be made in Milwaukee or
Chicago or Minneapolis.
I hear my friends talk about banks doing so well right now. Yes,
because there are people who want to borrow money, and the economy is
doing so well, that borrowers can pay back lenders so they make a
little bit of money.
I think what is pretty evident in this conversation is some of my
friends would prefer that we have socialized banking like socialized
healthcare. Let the government, let the Democrats across the aisle run
banking in America.
If you are confused about this debate and whether this is a good or
bad bill, just do one thing: look at where the small community banks
are, look at where the credit unions are. They are clamoring for this
bill, they are begging for this bill, because they can't comply with
Dodd-Frank, the rules and regulations. It is putting them out of
business.
Small credit unions that care about their customers say ``yes'' to
this bill. I hope, too, so do my Democratic friends.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1\1/2\ minutes
to the gentlewoman from New York (Ms. Velazquez), the ranking member of
the Small Business Committee and a senior member of the Financial
Services Committee.
Ms. VELAZQUEZ. Mr. Speaker, I thank the gentlewoman for yielding.
Mr. Speaker, I rise in strong opposition to S. 2155, which strips
back and weakens many of the regulatory tools and safeguards we enacted
in Dodd-Frank.
Make no mistake, Mr. Speaker: this bill will make our financial
system more vulnerable to a financial crisis.
The bill undermines important safety and soundness protections like
stress tests and capital requirements, key reforms that Democrats put
in place following the financial crisis that prevent the risk of bank
bailouts and protect our economy and taxpayers.
The bill also weakens critical consumer protections like Dodd-Frank's
enhanced HMDA data monitoring and reporting requirements. Under this
bill, 85 percent of depository institutions are excused from these
important requirements.
While many financial institutions say that these reporting
requirements are too onerous and too difficult to comply with, S. 2155
will make it harder to determine if lenders are serving the credit
needs of minority borrowers and to identify harmful and discriminatory
lending patterns.
Instead of eliminating important tools like HMDA, we should be
finding ways to eliminate discrimination in lending.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield an additional
20 seconds to the gentlewoman from New York.
Ms. VELAZQUEZ. Mr. Speaker, as ranking member of the House Small
Business Committee, I support targeted reforms that provide relief for
community banks and local credit unions, but this bill does none of
that. It is a solution in search of a problem that harms consumers.
Mr. Speaker, I urge my colleagues to vote ``no'' on this dangerous
bill.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from North Carolina (Mr. McHenry), the vice chairman of the committee
and the Chief Deputy Whip of the majority and author of two provisions
of S. 2155 to promote capital formation and hold credit bureaus fully
accountable.
Mr. McHENRY. Mr. Speaker, I thank the chairman for making this day
possible. Without the architecture of the work that the House Financial
Services Committee did, the Senate wouldn't be able to come to terms
with this major change to Dodd-Frank.
Mr. Speaker, I want to thank my Democratic colleagues for
participating in these bipartisan negotiations that made this day
possible.
The long, dark shadow of the financial crisis is over, and
policymakers
[[Page H4343]]
are now shifting to the much-needed reforms we need in our banking
system.
We know that we have fewer community banks now than we did before the
financial crisis, we have fewer community banks now than we did 5 years
ago, and our communities are more starved for capital now than ever
before, especially with the economy changing and economic growth now
coming back to communities across this country.
Now, today, Congress is coming to terms with a bipartisan bill, a
bipartisan approach to make our banking system more inclusive and more
accessible for everyday Americans.
I am proud my provision that I authored, the Supporting America's
Innovators Act, is included, which helps small businesses get the
investments they need to grow and prosper. Those communities have not
been traditionally focused upon by investors.
I am also proud that this bill allows community banks to get into the
business of lending to their community, getting back into the business
of mortgage lending in their communities. And I am proud that this bill
will allow consumers to freeze their credit reports in the event that
there is a data breach or identity theft.
These are bipartisan pieces of this very important package. It is
high time Congress gets on with it and passes this bill. I look forward
to the outcome of today's vote, and I urge my colleagues to vote
``yes.''
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1\1/2\ minutes
to the gentleman from Texas (Mr. Al Green), ranking member of the
Subcommittee on Oversight and Investigations.
Mr. AL GREEN of Texas. Mr. Speaker, I am amazed at what I am hearing
today, because I was there, and I understand that at the time we
entered the financial crisis, the banks were not lending to each other.
There are many aspects of this to focus on, but today I will simply
focus on the $163 billion that the banks made last year. A better name
for this bill would be ``Too Much Is Not Enough.'' $163 billion, but
that is not enough.
The banks would have us now eliminate the Volcker rule, which
prevents the banks from using the money on the consumer side, taking
that money and moving it over to the investment side, and go to Wall
Street and gamble. If they win, they keep the profits; if they lose,
they can socialize the losses.
This bill is not a bill that benefits consumers. It is a Big Bank
bonanza. Too much is not enough, and too much is too much for me. I
will vote against it.
Mr. HENSARLING. Mr. Speaker, I yield 1 minute to the gentleman from
Oklahoma (Mr. Lucas), the former chairman of the House Agriculture
Committee and a senior member of the Financial Services Committee.
Mr. LUCAS. Mr. Speaker, it has been 10 long years since I was a
conferee on Dodd-Frank. Since then, I have seen credit markets in my
district and across the country dry up, thanks to the increased
regulations.
That is why I am so happy to be speaking on a bill today that will
roll back some of those burdens.
As I have said over the last decade, Dodd-Frank was not written on
the back of the stone tablets. Dodd-Frank will be addressed in this
bill, S. 2155.
S. 2155 is but the first step in making that perception a reality. It
is the first step in bringing financial markets back to true efficiency
and capacity. And, yes, I mean a first step. There are many more things
this Congress could and should do to bring more relief to small
community institutions across the country.
Every year, small financial institutions in Oklahoma have made the
trek here to ask me for relief, any relief. For the first time, I can
give them positive news, which is, thanks to this bill, sure, there is
more to be done, of course, but things in this bill like changes to
stress testing, risk management protocols, required data disclosure,
among other things, will help those who rely on small banks and credit
unions for their financial needs.
Mr. Speaker, I thank Chairman Hensarling for this opportunity to vote
on this bill today.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1 minute to the
gentlewoman from California (Ms. Pelosi), our Democratic leader.
Ms. PELOSI. Mr. Speaker, I thank the gentlewoman for yielding, and I
commend her for her extraordinary leadership in protecting the American
consumer, the American taxpayer, our American financial systems. She
has been just a remarkable, wonderful leader.
Mr. Speaker, I thank our distinguished Whip for yielding so that I
could stay on schedule and for his great leadership as well.
Mr. Speaker, I rise in opposition to this bill, and I do so on behalf
of the hardworking American people. It is a bad bill under the guise of
helping community banks.
It rolls back key safeguards for American consumers, it opens the
door to lending discrimination, and it potentially threatens the
stability of our financial system and our economy.
The bill would take us back to the days when unchecked recklessness
on Wall Street ignited a historic financial meltdown. Wall Street
gambled with the livelihood of consumers, and then it was the middle
class that lost its shirt.
I just want to share with my colleagues on both sides of the aisle
why I have serious concerns about what is happening on the floor today.
It is yet again another weakening of Dodd-Frank.
Here is what I want to call to your mind, because you may not
remember this or you may not have been fully aware of it, but you
should know it.
On the night of September 18, 2008, I called the Secretary of the
Treasury and said: What is happening, that we have had in the past
couple of weeks Lehman, Merrill Lynch, and then in that 24-hour period,
AIG? I said: Can you come to the Capitol to explain tomorrow morning
what is happening so that we can help restore confidence to the markets
and not say anything that would do anything less than that?
He said: Madam Speaker--I was Speaker at the time--tomorrow morning
will be too late.
Tomorrow morning will be too late. Why am I calling you?
So, in any event, the Secretary of the Treasury came to the Capitol
for an emergency meeting. It was a bipartisan meeting, House and
Senate, to inform us that a meltdown was imminent.
What he described to us that night was so stunning, he took us down
to the gates of hell, to a place so deep that even Dante would not have
had a name for that circle in hell, because it was so stunning in terms
of what was happening, the meltdown that was happening to our financial
institutions.
When I asked the Fed Chairman, who was also at the meeting, Ben
Bernanke, what he thought, he said, ``If we do not act immediately, we
will not have an economy by Monday.''
``An economy by Monday.'' We thought it might be one or the other
financial institutions. ``We will not have an economy by Monday.''
To stop the meltdown, the Bush administration requested and Congress
immediately passed emergency funding, the TARP bill. You may be
familiar with it.
To prevent this from ever happening again, we passed Dodd-Frank, the
most extensive banking and financial reforms in decades and the
strongest set of consumer financial protections in history.
{time} 1430
And since the Republicans have taken the majority in the Congress and
now in the White House, there has been a series of weakenings of Dodd-
Frank. So you cannot just view this bill as this bill today, bad enough
as it is, worthy of a ``no,'' unworthy of support, but to see it in
light of a series of weakenings of Dodd-Frank.
The bill dismantles key safeguards that are critical in combating
racial discrimination in lending, despite overwhelming evidence that
people of color are routinely discriminated against by financial
institutions. All year, the GOP has opened the door to discrimination
in our financial system. This is just another discriminatory piece of
legislation.
They pushed a CRA to roll back protections against discrimination in
auto lending. They voted to repeal an executive order requiring Federal
contractors to comply with basic nondiscrimination laws. Big banks are
also using the guise of protecting community banks to help out the
largest banks on Wall Street.
[[Page H4344]]
The bill exempts 26 of the largest banks from the Dodd-Frank Act's
heightened oversight. Since 2007, these same banks have been sued or
cited by the regulators nearly 200 times and paid settlements of $40
billion, some of which they can deduct from their taxes.
Republicans are also using relief for community banks as a way of
undermining the Volcker rule, threatening the stability of the
financial system and the entire economy.
Republicans' willingness to abandon vulnerable Americans and
jeopardize our entire financial system to further enrich wealthy Wall
Street banks is astounding. Today, the FDIC reported that banks, helped
by a massive tax cut, earned record profits in the first quarter of
this year, as they have over the past 3 years as well.
Time after time, Republicans put Wall Street and the rich first and
families last. The American people deserve a Congress that looks out
for them, not one that sells out and leaves them high and dry.
This is a raw deal for the American people. Americans deserve a
better deal, better jobs, better wages, and better futures. Democrats
are fighting to put that economic power back.
Who has the leverage? Put the leverage back in the hands of America's
great middle class, America's working families.
So just remember what they were willing to do leading up to 2008.
They have forgotten, or maybe they don't care, but they want to take us
right back down that path one piece of legislation at a time.
If I know Mr. Hensarling, there is probably more to come, because I
understand he doesn't think this bill goes far enough in the wrong
direction, and he probably wants more.
But whatever that is, today is the judgment we have to make about
this bill that our commitment--and by the way, some of the things they
want to roll back are very harmful to our veterans as well, and they
wanted me to be sure to make that point with you, in addition to all of
the other concerns.
It is a threat to our financial system: $250 billion, I think that
number is too large; the exploitation of the custody banks that some of
the banks already told me they were going to try to pass themselves off
as; the discrimination in lending that is in the bill; the lack of
revealing the information, which is so central to knowing what the
facts are.
Mr. Speaker, for these and so many other reasons, I urge a ``no''
vote.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the
gentlewoman from Missouri (Mrs. Wagner), who is the chair of our
Subcommittee on Oversight and Investigations.
Mrs. WAGNER. Mr. Speaker, since returning to a Republican majority 8
years ago, the Financial Services Committee has set out to introduce
and pass progrowth legislation that lessens the burdens unfairly put on
community banks and credit unions and the customers they serve.
Today's bill will allow for these institutions to do what they do
best: focus on their communities. Mr. Speaker, this is something to
celebrate.
Under the leadership of Chairman Hensarling, our committee has
continuously made the case that the former administration's efforts
were not only misguided, but made basic financial services less
accessible to small businesses and low- and middle-income Americans.
With passage of today's bill, that changes. American families' and
businesses' access to credit will improve. This is credit they can and
will use to buy a new car, achieve the dream of homeownership, expand
their businesses, and, most importantly, create jobs.
It is my sincere hope that we continue the momentum of today's vote
and work with our Senate counterparts to roll back Washington red tape
to further our Nation's economic growth and to continue to give
hardworking Americans better access to affordable financial products.
Mr. Speaker, I urge all Members to support this much-needed
bipartisan legislation.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Maryland (Mr. Hoyer), the distinguished Democratic
whip.
(Mr. HOYER asked and was given permission to revise and extend his
remarks.)
Mr. HOYER. Mr. Speaker, I am constrained to say that the gentlewoman
mentioned the progrowth administration. We had some 98 months of growth
following the worst recession she and I have experienced in our
lifetimes under the policies of the Bush administration.
Mr. Speaker, in the wake of the worst financial collapse since the
Great Depression, the Congress enacted, over the opposition of our
friends in the Republican Party, mostly, the Dodd-Frank reforms to
safeguard our economy and safeguard consumers.
When we passed Dodd-Frank in 2010, no one believed it was perfect. No
legislation is ever perfect. There is nothing wrong with evaluating
Dodd-Frank 8 years after it was enacted to determine what is working
well and where we might improve.
Many Democrats, myself included, support providing regulatory relief
to community banks, and we ought to do that in a bipartisan fashion--
not just a few bipartisan participants, but in a bipartisan fashion.
I have talked to the ranking member. She has indicated that that is
something that she supports as well. However, the bill on the floor
today goes much further and would weaken the rules that Dodd-Frank put
in place.
It would undermine the regulatory framework for all banks. This would
roll back parts of the Home Mortgage Disclosure Act, stress tests for
large banks, and bank capital requirements.
It would also, as has been noted, raise the threshold for the
automatic designation of systemically important financial institutions
from $50 billion to $250 billion.
The changes that are proposed risk making our Nation's financial
system vulnerable to another crisis that would require yet another
taxpayer bailout.
The SPEAKER pro tempore. The time of the gentleman has expired.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield an additional
30 seconds to the gentleman from Maryland.
Mr. HOYER. Mr. Speaker, because of that and because I would like to
see a truly bipartisan bill supported overwhelmingly on both sides of
the aisle to make sure that our community banks are not impacted in a
way that was never intended nor should it be intended by the Congress,
I therefore urge opposition to this particular piece of legislation,
and I thank Ranking Member Waters for her hard work in making its
consequences clear.
Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from
Kentucky (Mr. Barr), the chairman of our Subcommittee on Monetary
Policy and Trade and the author of two provisions on access to
manufactured housing and portfolio lending in S. 2155.
Mr. BARR. Mr. Speaker, I rise today in support of this bipartisan
legislation incorporating 29 bills originated and passed in this House
to ease the regulatory burden on community financial institutions and
their customers. This is the most progrowth financial legislation in a
generation, and I urge my colleagues to support it.
The 2010 financial control law, commonly known as Dodd-Frank, was
supposed to protect consumers. Instead, this 2,300-page monstrosity
unleashed an avalanche of huge new compliance costs on community
financial institutions that had absolutely nothing to do with the
financial crisis. This hurt consumers by forcing small banks and credit
unions to cut back on the products and services they serve their
customers with.
Critics who say this is about Wall Street are wrong. This is not
about Wall Street. This is about community banks, community banks in
eastern Kentucky who told me that they used to make a business judgment
about the creditworthiness of a farmer and now the government, a
bureaucrat, decides whether or not that farmer gets a loan. One
prominent example of this is the ability-to-repay rule, which made it
needlessly difficult for lenders to originate mortgages for
creditworthy borrowers.
The Portfolio Lending and Mortgage Access Act, which I have worked on
since I entered Congress, is included in today's package of reforms and
would expand access to mortgage credit by extending the qualified
mortgage safe harbor to small creditors who hold
[[Page H4345]]
their residential mortgage loans in portfolio rather than selling or
securitizing them, allowing those lenders to satisfy the rule. This
marks a return to relationship banking, where lenders can tailor
products to meet the specific needs of customers without running afoul
of government one-size-fits-all requirements. The result is expanded
access to mortgage credit without additional risk to the financial
system or the taxpayer.
Mr. Speaker, I want to thank Chairman Hensarling and Chairman Crapo
for including this bill in the final legislation, and I want to thank
the Kentucky Bankers Association, the Kentucky Credit Union League, and
their customers for advocating and endorsing this solution.
Mr. Speaker, I encourage my colleagues to vote ``yes'' to finally
unclog the plumbing of our economy and give Americans full access to
the financial system.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1\1/2\ minutes
to the gentleman from Minnesota (Mr. Ellison), the senior member of the
Financial Services Committee.
Mr. ELLISON. Mr. Speaker, I thank the gentlewoman for yielding time
to me.
Mr. Speaker, in just about an hour or so, Congress will vote to roll
back some of the rules for the biggest banks in the country.
Think about that for a minute. Just 10 years after the big banks
crashed the economy, Senate Republicans and some Democrats want to roll
back the rules that were put in place to prevent the next crash.
Some of my colleagues may have forgotten about the bad, bad days of
that crash in 2008, but I sure have not. Millions of people lost their
homes. In fact, 1 in 54 homes was in foreclosure. $2.6 trillion, with a
T, vanished from people's retirement accounts.
Think about that for a moment. Why on Earth would we go back there?
And let me remind everyone here: Before this crash, we heard all this
talk about progrowth. Before the big crash, they said we want to allow
commercial banks and investment banks and insurance companies just to
all conglomerate together. We want to allow banks to use the money of
their depositors to make gambling decisions on Wall Street. We are
going to sell people no-doc, low-doc loans, and we are going to let the
seller get a yield spread premium for steering people to high-cost
loans; and we are going to let them securitize all of it, and if they
lose their money, it is okay because we are going to let them buy
credit default swaps, which is insurance, so that the American people
lose but the big banks and the insurance companies never do.
The SPEAKER pro tempore. The time of the gentleman has expired.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield an additional
30 seconds to the gentleman from Minnesota.
Mr. ELLISON. Mr. Speaker, all this progrowth talk is a movie that we
have seen before. Remember Alan Greenspan telling all us: Let them do
what they want to do. It doesn't matter. You can't interfere with the
market. The market has all the answers.
We found out who had the answers when it came to bailing out Wall
Street. It was the American people.
Mr. Speaker, I urge my colleagues to not vote for this because it
will be the American people who pay, not to mention people who live in
manufactured homes who are going to be allowed to be charged more for
their home choices, and it will open the door to racial discrimination
which has been proved time and time again. This bill is bad. Vote
``no.''
{time} 1445
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Arkansas (Mr. Hill), the committee's majority whip and the author
of the amendment dealing with the Volcker rule.
Mr. HILL. Mr. Speaker, I thank the chairman of the full committee for
having us on the floor today to talk about S. 2155.
I have heard all of this cold water from the opposition today, but
this is the definition of bipartisanship. Sixty-seven votes in the
Senate, in this environment, in this town, is bipartisan. So many of
our bills emanated here in the House with strong bipartisan support.
As a former local chamber of commerce chairman and a local community
banker, I have seen firsthand, Mr. Speaker, the negative effects of the
Dodd-Frank Act since it was passed in 2010.
I know we have had 140 hearings on how to make sense of improving
Dodd-Frank, to rightsize the regulatory system for small financial
institutions, allowing our community banks and credit unions to
actually serve our small businesses and our consumers.
Rather than spending too much time on compliance, these institutions
can redirect resources toward what they do best: approving loans,
mortgages, and providing credit to small business.
This bill has widespread support. You would never know it, listening
to the opposition, but it has widespread support on a bicameral,
bipartisan basis in this building.
One particular provision, led by my friend Mr. Barr from Kentucky, I
know will help hundreds of Arkansans, hardworking families who need
access to credit for manufactured housing in the rural parts of our
State. This bill will help people get housing, thanks to the work of
the Senate and the House.
Mr. Speaker, I encourage my colleagues to vote in favor of S. 2155.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1\1/2\ minutes
to the gentlewoman from New York (Mrs. Carolyn B. Maloney), the ranking
member of the Subcommittee on Capital Markets, Securities, and
Investment of the Financial Services Committee.
Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I rise today in
strong opposition to S. 2155.
It is important to remember why we passed Dodd-Frank in the first
place. We were suffering from the worst financial downturn in our
country. This country suffered $15 trillion in household wealth that
was lost. Eight million people lost their jobs and 6 million people
lost their homes due to unfair and deceptive banking practices.
Dodd-Frank put in place protections for consumers.
Prior to the crisis, predatory lenders saddled unsuspecting borrowers
with toxic mortgages that they didn't understand and could not afford.
Too often, these predatory lenders targeted communities of color, and
when these toxic mortgages blew up, it devastated these communities.
In response, we passed Dodd-Frank, which imposed tough new rules on
mortgage lenders and beefed up our efforts to crack down on lending
discrimination.
This bill would actually roll back some of these important
protections. The bill would undermine fair lending laws by exempting
the majority of lenders from the new reporting requirements on lending
discrimination.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield an additional
30 seconds to the gentlewoman from New York.
Mrs. CAROLYN B. MALONEY of New York. The bill would also weaken the
protections for mobile-home buyers by allowing retailers of mobile
homes to accept kickbacks in exchange for steering borrowers into
predatory loans that they can't afford. It is a terrible practice that
Dodd-Frank outlawed.
The list goes on and on and on.
While the bill does contain some provisions that every House Democrat
has supported, taken together, the bill goes too far in weakening the
key mortgage rules that Dodd-Frank put in place. So I urge my
colleagues to come together in a strong ``no'' vote.
Mr. HENSARLING. Mr. Speaker, I now am very pleased to yield 1\1/2\
minutes to the gentleman from Illinois (Mr. Hultgren), the author of
two different provisions in S. 2155 to give more flexibility to private
companies and small banks with respect to their call reports.
Mr. HULTGREN. Mr. Speaker, first, I want to thank Chairman
Hensarling. Without his incredible commitment and effort, we would not
be here today. I am convinced of that.
Mr. Speaker, I rise today to speak in support of the very bipartisan
S. 2155, the Economic Growth, Regulatory Relief, and Consumer
Protection Act.
I was not here when the Dodd-Frank Act was signed into law, but I
have been interested in addressing some of these damaging effects since
first running for office, and it was a big reason why I ran for
Congress.
[[Page H4346]]
This legislation is a historic opportunity to tailor financial
regulations in order to maximize economic growth in Illinois and across
the country. We need to make sure that our community banks and credit
unions are able to meet the needs of families and neighborhood
businesses.
I am especially happy to see a number of provisions that I had the
privilege of authoring with my colleagues in the House make their way
into this package of bills. They were also very bipartisan bills.
The Community Bank Reporting Relief Act simplifies the call report so
that smaller institutions can better focus on serving their customers.
The Encouraging Employee Ownership Act makes it easier for private
companies to provide ownership to their employees under SEC rule 701 so
they can share in the benefits of growth.
I am also very excited that other legislation that was introduced by
my colleagues that I also had a part in cosponsoring is also part of
this: the MOBILE Act; the Protecting Children from Identity Theft Act;
the Protecting Veterans Credit Act; the Pension, Endowment, and Mutual
Fund Access to Banking Act; the Municipal Finance Support Act; the
National Security Exchange Regulatory Parity Act; and the SEC
Overpayment Credit Act.
I am incredibly supportive of the commonsense reforms that are made
so that our regional banks are not automatically treated like major
Wall Street banks. Please support this bill.
Ms. MAXINE WATERS of California. May I inquire as to how much time I
have remaining.
The SPEAKER pro tempore (Mr. Holding). The gentlewoman from
California has 12 minutes remaining.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1\1/2\ minutes
to the gentleman from Washington (Mr. Heck), a valued member of the
Financial Services Committee.
Mr. HECK. Mr. Speaker, I will regrettably vote ``no'' on S. 2155.
It is regrettable because I believe our local banks and credit unions
are struggling under the weight of regulations. I believe that we have
bank rules that need fixing. I wanted to support a bill that would do
so.
But I cannot vote ``yes'' for two reasons.
First, this bill cannot release the pressure small banks are under
because it does not address the single biggest cause. Every bank and
credit union I have met with cites one regulatory burden as paramount,
and that is the Bank Secrecy Act, CTRs, anti-money laundering. And what
does this bill have? Not one section, not one sentence, not one word.
Secondly, this bill makes changes I believe could set us back. It has
been cited; the increase of SIFI designation from $50 billion to $250
billion is a large step down a dangerous road.
The insurance provision, on the other hand, also goes against my goal
of returning power to State regulators, who provide the greatest
consumer protection.
If my colleagues had been allowed any input, I think we could have
accomplished the goal. But this bill doesn't solve the problem it aims
for and may create new ones. Accordingly, I cannot support it. I ask
Members, as well, to oppose it.
Mr. HENSARLING. Mr. Speaker, I am now very pleased to yield 1\1/2\
minutes to the gentleman from Pennsylvania (Mr. Rothfus), the author of
two different provisions in S. 2155 to bring clarity to the complex
capital rules and flexibility to our savings associations.
Mr. ROTHFUS. Mr. Speaker, I rise in support of this bipartisan
legislation.
Our economy has struggled for years under the weight of misguided
Washington policies. Banks have closed and consolidated, and
communities across this country have lost their local financial
institutions. American families have found it harder to get the funds
they need to buy a home, and small businesses have been starved of
credit to innovate, invest, and hire more workers.
In this economic environment, small businesses have struggled to grow
or even get off the ground. A recent study observed that we are missing
650,000 small businesses because of burdensome regulations relating to
the financial industry over the last 10 years.
Everyone, from the single mom in Ambridge looking to buy her first
home to the entrepreneur in Beaver Falls working to achieve his or her
version of the American Dream, deserves access to financial services
and the chance to thrive in a growing, healthy economy.
Today's bill addresses some of these barriers that have been holding
us back.
I am also proud to say that two of my bills are in this legislation.
One of these bills gives mutual banks the flexibility to evolve so that
they can better serve their communities.
The other bill addresses the unintended negative impacts of the
supplementary leverage ratio on custody banks. This is technical, but
the current SLR actually makes it harder for custody banks to safeguard
cash of pension funds and nonprofit foundations in times of stress.
Today, we fix that.
Both of my bills received unanimous, bipartisan support in the
committee, and I am glad they will soon become law.
Mr. Speaker, I commend Chairman Hensarling for his work on this
legislation, and I urge my colleagues to support this bill.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1\1/2\ minutes
to the gentlewoman from Washington (Ms. Jayapal), a very hardworking
progressive leader.
Ms. JAYAPAL. Mr. Speaker, I rise in strong opposition to S. 2155.
This bill will roll back many consumer protections, including
protections that are critical for civil rights.
This bill will permit 85 percent of depository institutions to avoid
public reporting on their mortgage lending activities. This reporting
is absolutely critical to identifying discrimination against Black
Americans, Latinos, and other minority groups.
Thanks to the public reporting requirement, we know that redlining
still exists in 61 metropolitan areas across our country and that Black
folks and Latinos are more than twice as likely as Whites to be denied
mortgage credit.
It is an unacceptable reality, but it is a reality that we have to
see and acknowledge. The idea that we would roll back these policies
that help us identify these problems, when we have the facts right in
front of us, is simply unthinkable.
I do want to make it clear that I have great sympathy for smaller
banking institutions, including credit unions--I am a proud credit
union member--and our community banks that have called for regulatory
relief.
But let's be clear that, when we do that relief, Congress should be
using a scalpel to create a fix for smaller banks, not taking a
sledgehammer to the entire system that we set up to protect consumers
and Main Street small businesses from the greed of big banks.
Mr. Speaker, I urge my colleagues to vote ``no.''
Mr. HENSARLING. Mr. Speaker, I now yield 1\1/2\ minutes to the
gentleman from Colorado (Mr. Tipton), the author of the MOBILE Act,
Making Online Banking Initiation Legal and Easy.
Mr. TIPTON. Mr. Speaker, for too long, there has been a culture of
disregard for our community financial institutions out of Washington,
D.C.
Regulations that were intended to bring discipline to the Nation's
largest institutions have instead suffocated Main Street and prevented
communities across the country from finding their footing on the path
to prosperity.
The passage of this historic, bipartisan, progrowth package today
will mark a change in the regulatory rhetoric out of Washington.
Communities will be heard instead of ignored. Families will find open
doors where previously they were shut out. And small businesses will be
empowered to grow rather than languish in regulatory uncertainty.
One provision of this legislation that I authored, the MOBILE Act,
embodies exactly the kind of commonsense help for families that today's
vote will provide.
The MOBILE Act will allow consumers across the country to open bank
accounts on their mobile devices using a driver's license or personal
ID, meaning access to financial services will start in your pocket and
be more convenient than ever.
Approximately three-quarters of the 20 percent of the U.S. population
that
[[Page H4347]]
is underbanked has access to a smartphone. This provision will help
these Americans get access to the critical banking services that will
set them on the path to financial success.
Mr. Speaker, this historic package is about unraveling red tape that
stifles the financial success of all Americans, and I urge its passage
here today.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1\1/2\ minutes
to the gentleman from Rhode Island (Mr. Cicilline), co-chair of the
House Democratic Policy and Communications Committee.
Mr. CICILLINE. Mr. Speaker, I thank the gentlewoman for yielding.
Mr. Speaker, I rise in strong opposition to the bank lobbyist act,
which reverses the progress we have made since Wall Street brought our
economy to the brink of collapse in 2008.
This is yet another giveaway from our friends on the other side of
the aisle to the wealthy donors who bankroll their campaigns, and, once
again, working people will get screwed.
Congress established the Consumer Financial Protection Bureau to
protect the middle class from the big banks and corporate special
interests. Since 2010, the CFPB has returned nearly $12 billion to
consumers in all 50 States.
{time} 1500
It has been a big step forward for working people, but this bill
turns the clock back. Republicans are going to let the banks write the
same risky loans that got us into the Great Recession in the first
place. This is a bad deal for the American people. They deserve better.
Let's defeat this bill and put working families first.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Minnesota (Mr. Emmer), the author of the key regulatory relief
provision for small banks and credit unions in S. 2155.
Mr. EMMER. Mr. Speaker, today Congress has a rare opportunity to help
millions of Americans achieve their version of the American Dream.
The Economic Growth, Regulatory Relief, and Consumer Protection Act
is the most significant progrowth, deregulation bill this Chamber has
considered in years. This bipartisan, bicameral legislation will reduce
the amount of red tape that prevents Americans from accessing the
credit they need to buy a home, a car, or start or expand a business.
It will foster economic growth and make regulation efficient,
effective, and tailored. Perhaps most importantly, it will empower
individual Americans to make independent financial decisions and
informed choices in the marketplace.
Dozens of the provisions in S. 2155 originated right here in the
House, and I am pleased to see the text of my Home Mortgage Disclosure
Adjustment Act and Keeping Capital Local for Underserved Communities
Act, legislation that I worked on closely with my colleague from
Wisconsin, Representative Gwen Moore, included in the bill today.
Whether it is in Rockford, St. Cloud, or Forest Lake, Minnesota, I
consistently hear from small banks and credit unions that want to be
that next critical source of capital and support for families,
businesses, and communities around the State. This bill will allow them
to be just that.
Mr. Speaker, I thank Chairman Hensarling for his tireless work on
this legislation, and, knowing full well that our work here is far from
complete, I urge my colleagues to make history today. Support giving
more Americans the opportunity to achieve their American Dream, and
pass S. 2155.
Ms. MAXINE WATERS of California. Mr. Speaker, I reserve the balance
of my time.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Maine (Mr. Poliquin), who is the author of two provisions in S.
2155, the Senior Safe Act and supporting capital formation for small
companies.
Mr. POLIQUIN. Mr. Speaker, I thank the chairman for bringing this
terrific bill to the floor.
Mr. Speaker, the unemployment rate in our great State of Maine is 2.7
percent. This is the lowest rate since the 1950s, and jobs, Mr.
Speaker, are available everywhere for hardworking Mainers who now have
bigger paychecks.
This growing economy, Mr. Speaker, is because taxes are lower and
regulations are fewer. We must keep these reforms going. That is why,
Mr. Speaker, I ask everyone, Republicans and Democrats, to vote ``yes''
on S. 2155.
This bipartisan bill includes two provisions which I have been
pushing for 3 years. First, the Small Business Capital Formation
Enhancement Act makes it easier for small businesses to borrow money
when they need to grow, and that creates more jobs, bigger paychecks,
more opportunity, and more freedom for our families.
Mr. Speaker, secondly, the Senior Safe Act helps protect our
vulnerable seniors against financial scams. The legislation allows, for
example, bank tellers, insurance agencies, and financial advisers to
warn our seniors against draining their savings accounts and wiring the
money to some distant location because someone is pretending to be
their granddaughter in trouble. This bill, the Senior Safe Act, makes
it easier to stop financial scams before they hurt our seniors.
Mr. Speaker, I would like to thank my colleague, Senator Susan
Collins from Maine, for advancing this initiative in the Senate.
Together, we pushed this commonsense provision in both the House and in
the Senate.
I ask everyone, Mr. Speaker, to please vote ``yes'' on this
bipartisan bill, S. 2155, and I thank the chairman for this
opportunity.
Ms. MAXINE WATERS of California. Mr. Speaker, I reserve the balance
of my time.
Mr. HENSARLING. Mr. Speaker, I yield 1 minute to the gentleman from
Texas (Mr. Williams), a fellow Texan who is an incredibly strong
advocate on our committee for small business to obtain credit for their
customers.
Mr. WILLIAMS. Mr. Speaker, I rise today in strong support of S. 2155,
the Economic Growth, Regulatory Relief, and Consumer Protection Act,
which passed the Senate with bipartisan support last month.
This important legislation stems from years of consideration,
hearings, markups, and floor votes in the House, coupled with a
bicameral commitment with the Senate Banking, Housing, and Urban
Affairs Committee to deliver relief for the American people.
More than half of the 53 provisions included in S. 2155 originated in
the House Financial Services Committee, and I applaud the work of the
chairman throughout this lengthy process.
Right now, small community banks cannot keep up with oppressive
regulations that are reluctantly forcing so many to close their doors.
As I have said time and time again, the practice of one-size-fits-all
does not and should not apply to financial institutions. In order to
unleash our economic potential, Congress must act now to repeal
unnecessary regulations while properly tailoring those we need.
Mr. Speaker, S. 2155 will finally provide the relief for our
community banks by cutting through red tape. In turn, small businesses
and the American consumer will now have better access to credit and
encourage more economic growth and consumption.
Make no mistake about it: this economy is roaring. I have been in
business 47 years, and I know what I am talking about.
I am proud to join colleagues in support of this bipartisan,
bicameral legislation and look forward to President Trump's signature
as soon as possible.
In God we trust.
Ms. MAXINE WATERS of California. I continue to reserve the balance of
my time, Mr. Speaker.
Mr. HENSARLING. Mr. Speaker, I yield 1 minute to the gentlewoman from
Utah (Mrs. Love), who is the author of a key regulatory relief
provision to provide small banks the opportunity to grow.
Mrs. LOVE. Mr. Speaker, we have an economy that is humming right now.
Utah's unemployment rate is better than the national average, and it is
the best it has been in 10 years. We are adding jobs--1,400 just last
month.
I am urging a ``yes'' vote on this bill because I want to keep the
good news coming. America needs a financial system that is strong,
resilient, and innovative.
As a former mayor, I know that access to credit is crucial for cities
to build schools and roads, for families to buy a home, and for farmers
to buy tractors. After the 2008 financial crisis, Congress passed laws
to rein in large financial institutions, but the rules went
[[Page H4348]]
too far, and they are hurting the smaller banks, who can't handle all
the red tape. S. 2155 would ease that burden without risk to the rest
of the financial system.
My bill, H.R. 4771, is included in this package to help those small
banks gain the access to capital they need to serve their community.
Mr. Speaker, I urge a ``yes'' vote for the good of people and for the
health of our economy.
Ms. MAXINE WATERS of California. Mr. Speaker, I continue to reserve
the balance of my time.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the
gentlewoman from New York (Ms. Tenney), who is the author of two key
regulatory relief provisions for our community banks and credit unions
in S. 2155.
Ms. TENNEY. Mr. Speaker, I rise in strong support of the bipartisan
Economic Growth, Regulatory Relief, and Consumer Protection Act.
This groundbreaking legislation is vital to rural communities like
mine, where my constituents are actually struggling every day to make
ends meet. This bill allows greater access to capital for consumers and
small businesses that will unleash more opportunities for Main Street
to flourish, finally. However, in order for Main Street to truly
produce, we must ensure our community financial institutions are
healthy, safe, and not overburdened to the point of closure.
In my district in New York, small banks and credit unions are the
lifeline for consumers who seek access to capital. Whether it is a
family buying their first home or a young adult purchasing a new car,
consumers in New York rely heavily on our Nation's community financial
institutions.
I am grateful to have two pieces of bipartisan legislation that
promote relationship banking and regulatory relief that are included in
this bill package today. Two of my bipartisan bills included in this
package are the Small Bank Exam Cycle Improvement Act and the Community
Institution Mortgage Relief Act which offer small, local communities
and financial institutions a little much-needed assistance to help
better serve their communities.
I am proud of the hard work my colleagues have done to craft this
important, bipartisan legislation, and I am very thankful to Chairman
Hensarling for making sure that this bill becomes a reality for
Americans.
Mr. Speaker, S. 2155 will help families in my district achieve
financial independence, and I urge all of my colleagues to support
this, including my cosponsors, Mr. Sherman and Mr. Crist, who I hope
will be joining us in support of this bill.
Ms. MAXINE WATERS of California. Mr. Speaker, may I inquire of Mr.
Hensarling how many speakers he has remaining.
Mr. HENSARLING. Mr. Speaker, I have no more speakers on this side.
I believe I have the right to close.
Ms. WATERS of California. Mr. Speaker, may I inquire as to how much
time I have remaining.
The SPEAKER pro tempore (Mr. Burgess). The gentlewoman has 8 minutes
remaining.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield myself such
time as I may consume.
Mr. Speaker, let me again share with you what should be breaking news
tonight: the FDIC released its quarterly banking profile today for the
first quarter of 2018 and reported that banks made more money than they
ever have.
Mr. Speaker, $56 billion in profits in a single quarter represents a
27.5 percent surge compared to 2017. Some of these profits came from
the Republican tax reform bill that we have called a tax scam law.
The community banks, credit unions, and the economy are doing great
with Dodd-Frank reforms in place. The banking industry keeps making
record profits--an average of $167 billion in annual profits the last 3
years.
Banks have increased lending to businesses by 80 percent since 2010.
Community banks are outperforming larger banks in increased lending,
and the credit unions are growing and have increased lending by more
than 10 percent in 2014, 2015, 2016, and 2017.
Despite all of that, we have this pay of CEOs of banks that
represents so many times more than the median salary in their banks.
Specifically, Wells Fargo's CEO made $17.4 million in 2017, 291 times
the company's median salary. This is in spite of the fact that Wells
Fargo has a track record of consumer abuses while demonstrating that
the numerous fines imposed upon the bank have not been a sufficient
deterrent to stop its pattern of appalling practices.
Let me just identify some of those practices: opening 3.5 million
fraudulent credit card and deposit accounts, for which they were fined
$185 million. It was so bad that former Chair Yellen capped the bank's
size until it cleans up its act.
In addition to that, they were found to have illegal student loan
servicing practices; inappropriate checking account overdraft fees;
unlawful mortgage lending practices, such as overcharging veterans for
refinance loans; and charging customers for automobile insurance
policies they did not need, which resulted in some customers losing
their vehicles.
They were fined $1 billion, but it really doesn't make them any
different. It is just a cost of doing business.
Yet we have my friends on the opposite side of the aisle who come and
ask us to be lenient on the banks, to do away with the Dodd-Frank
reforms, and to forget about what happened in 2008. Somehow it is all
right for these greedy banks to continue the practices that they have.
Despite the fact that Dodd-Frank reined them in, they are doing very
well.
S. 2155, again, is not a community bank bill, and it certainly does
not help consumers, so we should not pretend that that is the case.
Instead of considering improvements to this Senate bill or advancing
narrowly tailored relief, my colleagues on the other side of the aisle
are rubberstamping S. 2155 and advancing a Wall Street wish list that
could jeopardize the stability of our country's financial system.
So, instead of considering a bill to address concerns raised by
community banks, one that I am sure could easily pass both bodies with
overwhelming bipartisan support, House Republicans have instead decided
to take up a bill that is largely designed to fulfill the agenda of
Wall Street's megabanks. Passing this bill with broad support would
send the wrong message to regulators to accelerate their deregulatory
efforts for Wall Street.
It is unfortunate that megabanks have once again piggybacked onto the
substantial goodwill and support that exists to help ease the
regulatory burden for community banks.
S. 2155 is a dangerous measure that weakens key consumer protections
and will make it harder, not easier, to combat unfair mortgage lending
practices. The bill takes advantage of people just trying to make ends
meet for the benefit of the largest banks that are making record
profits.
Make no mistake: I support our Nation's community banks and credit
unions, and I support tailored regulatory relief for those
institutions. That is a fact that I have made clear through my support
of numerous individual measures which have advanced through this
Congress, as well as through my community bank regulatory relief bill
from last Congress.
{time} 1515
I will continue to oppose any efforts to use regulatory relief for
community banks as a vehicle to ram through deregulation for bad actors
and megabanks.
If my words and the words of my colleagues here today are not enough
of a warning, then I would urge Members to listen to the pleas of
hundreds of consumer, civil rights, veteran, religious, and labor
groups that strongly oppose S. 2155.
Though some of my colleagues in Congress may have short memories, the
millions of Americans who lost their homes, their jobs, and their
wealth during the 2008 financial crisis did not.
So I oppose this bill. I want the Members of Congress to stand up on
this very important legislation and say to the greedy banks and the
megabanks: No, you are not going to get away with these kinds of
actions anymore.
Everything that you have done to try to undermine the Dodd-Frank
reforms have resulted in more groups coming out to say: Congress, when
are you going to stop these banks? They are making plenty of money.
They are increasing their profits. Their CEOs are making high salaries.
What more do you want from them?
[[Page H4349]]
I think that our consumers deserve better than any attempt to try and
relieve them of those regulatory actions that would support our
consumers. I would ask for a resounding ``no'' vote on this bill that
would only feed into the greediness of the major banks of America.
Mr. Speaker, I yield back the balance of my time.
Mr. HENSARLING. Mr. Speaker, may I inquire how much time I have
remaining?
The SPEAKER pro tempore. The gentleman from Texas has 3 minutes
remaining.
Mr. HENSARLING. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, since Dodd-Frank was passed, the big banks have become
bigger and the small banks have become fewer. Free checking at banks
has been cut in half. Credit cards: 200 basis points more, 15 percent
fewer. Many creditworthy borrowers are having to pay almost $600 more
for their auto loans.
Mr. Speaker, the American Dream is shrinking. We have 1.6 percent
economic growth, stagnant paychecks, decimated savings, and a
diminished American Dream. That is the legacy of Dodd-Frank.
Mr. Speaker, I wish I could believe 10 percent of what I heard from
the other side of the aisle. I wish it did gut Dodd-Frank. It didn't.
You can't find something in here. It is hard, challenging, to find
anything in this bill that helps what the ranking member calls the so-
called Wall Street megabanks.
Mr. Speaker, listening very carefully to this debate, it is clear
that there are some voices that appear to be driven by their loathing
of banks and credit unions, and there are other voices that are driven
for our love and respect of our fellow citizens, hardworking taxpayers
like Dirk in Colton and Sherry, who I mentioned in my opening
statement, who are trying to capitalize a small business, who are
trying to buy a car that is 10 years old, who are trying to buy that
home. It is their American Dream, and they are being challenged due to
this law.
I have heard so many of my friends on the other side of the aisle
say: Oh, I believe in taking away bureaucracy and red tape from
community financial institutions, and I believe in bipartisanship.
Well, they may believe in it, but they are not voting for it. The
opportunity is right here in front of us with S. 2155, a strong,
bipartisan bill that has come over from the United States Senate. So,
again, they claim they believe it in theory; they just don't believe it
in practice.
Mr. Speaker, at the end of the day, 3 percent economic growth counts.
If you look at the history of our Republic, 3 percent growth is where
all the job creation takes place. It is where the paycheck increases
take place. It is where the poverty reductions take place. It is the
birthright of the American people.
Thankfully, due to the leadership of our President and this Congress,
we now have a 3 percent tax policy. We need a 3 percent regulatory
policy, especially for our community banks and our credit unions, who
help finance the American Dream for all of our citizens.
We should join in unison on this historic day to pass S. 2155, the
Economic Growth, Regulatory Relief, and Consumer Protection Act, for
the help of all our citizens.
Mr. Speaker, I yield back the balance of my time
Mr. PALAZZO. Mr. Speaker, I rise today to discuss the bill before us,
S. 2155. I support a majority of the provisions in this bill, as it
makes crucial changes to federal banking laws that provide much needed
relief from some of the worst, most burdensome financial regulations
that have stifled American small businesses and in turn, harmed
consumers.
I intend to vote in its favor, but I have a real issue with the way
in which we are considering the bill. A huge bill, almost 200 pages--
under a closed rule. The section I want to speak on is a section that
most folks probably don't even realize is in the bill, and that is
Small Public Housing reform, section 209.
This is an issue I've been working on for years now, and while I'm
always happy to see others such as Chairman Crapo caring about it, I'm
frustrated by how haphazardly they are written, and disappointed by how
good they could be.
Let me just go over a couple of things that are in the bill before us
as they relate to small public housing authorities. The Senate tacked
on a rural requirement to the definition of ``small public housing
authority'' which is generally defined as a housing authority operating
550 or fewer combined units or vouchers.
For starters, how many times have we debated USDA's rural definition?
It's one of the most complicated rural definitions that exist--why are
we still using this in new legislation even though we know how
difficult it is to come to a consensus on it? The small PHA definition
of 550 and under covers approximately 76 percent of PHAs across the
country--that number drops to a little over a half when we add the
rural definition.
Moreover, there are already existing distinctions when it comes to
small PHAs--fewer than 250 get to report less, fewer than 400 are
exempt from asset management, etc. Now, we've created a new
subsection--rural or non-rural.
So in theory we could have two PHAs of identical sizes in adjoining
or nearby counties operating under different rules for performance and
oversight. Both likely will have similar resource challenges but only
one of them will get regulatory relief as a result of S. 2155.
We're creating complexity, not lessening it. We move physical
inspection standards currently used in public housing (UPCS) and we
say, let's move them to the less burdensome section 8--which, again,
I'm all for, but we don't clarify which section 8. There are two types
of section 8, tenant-based and project-based. Presumably they meant
tenant-based, but that's something we need to clarify.
These are just a couple of small, non-controversial common sense
corrections.
I'll be introducing authorizing legislation that makes these changes
and a few others that I didn't have time to go over--and hopefully,
we'll be able to attach some technical corrections to a must-pass piece
of legislation I know many others share my frustration, to have this
massive bill shoved down our throat with no opportunity to make the
legislation better.
Isn't that our job as lawmakers? To make sure the bills we pass are
the very best they could be. I applaud the deregulatory efforts on the
financial side as well as the small public housing side, I'm jut
disappointed to see that we don't have the opportunity to make some of
these common sense edits on the front end, instead of having to make
technical corrections afterwards because what has been signed into law
contains well intended, but confusing and imperfect provisions.
Mr. ROYCE of California. Mr. Speaker, it was 5:39 a.m. on June 25,
2010 when we passed the Dodd-Frank Conference Committee Report. At that
early morning hour--other than a need for sleep--there was little we
agreed upon. But one thing stood out, Republicans and Democrats openly
discussed that there were problems in the bill that would need fixing.
We knew some of the unintended (and intended) consequences that
community banks and credit unions would face when looking to lend to
homeowners and small businesses.
Sadly, Mr. Speaker, it has taken nearly 8 years for us to pass into
law any meaningful changes of those sweeping reforms. Smaller
institutions have suffered; they have fewer assets over which to spread
ever-increasing compliance costs. That's what leads to this conundrum
where we have fewer banks today than we did during the Great
Depression.
Today, we take a step in rewriting these wrongs. I'm particular proud
that the bill before us includes many provisions I authored on a
bipartisan basis. S. 2155 provides potential homeownership for the so-
called ``credit invisibles,'' increases small business lending from
credit unions, and improves access to capital for companies looking to
go public and hire more workers.
I urge my colleagues to pass these overdue reforms.
The SPEAKER pro tempore (Mr. Duncan of Tennessee). All time for
debate has expired.
Pursuant to House Resolution 905, the previous question is ordered on
the bill.
The question is on the third reading of the bill.
The bill was ordered to be read a third time, and was read the third
time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HENSARLING. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER. Pursuant to clause 8 of rule XX, further proceedings on
this question will be postponed.
____________________