1. Short title
This Act may be cited as the “Community Institution Mortgage Relief Act of 2014”.
Community Institution Mortgage Relief Act of 2014
A BILL
To modify exemptions for small creditors and mortgage loan servicers, to require a study of appropriate capital requirements for mortgage servicing assets for nonsystemic banking institutions, and for other purposes.
2. Exemption from escrow requirements for loans held by small creditors
Section 129D(c) of the Truth in Lending Act (15 U.S.C. 1639d(c)), as added by section 1461(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended—
by redesignating paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), (C), and (D) and moving such subparagraphs 2 ems to the right;
by striking “The Board” and inserting the following:
“(1) In general—The Board”
by adding at the end the following new paragraph:
“(2) Treatment of loans held by smaller creditors—The Board shall, by regulation, exempt from the requirements of subsection (a) any loan secured by a first lien on a consumer’s principle dwelling, if such loan is held by a creditor with assets of $10,000,000,000 or less.”
3. Modification to exemption for small servicers of mortgage loans
Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the following:
“(n) Small Servicer Exemption—The Bureau shall, by regulation, provide exemptions to, or adjustments for, the provisions of this section for servicers that annually service 20,000 or fewer mortgage loans, in order to reduce regulatory burdens while appropriately balancing consumer protections.”