Section 1 Short title
This Act may be cited as the “Community Lending Enhancement and Regulatory Relief Act of 2015” or the “CLEAR Relief Act of 2015”.
Community Lending Enhancement and Regulatory Relief Act of 2015
A BILL
To enhance the ability of community financial institutions to foster economic growth and serve their communities, boost small businesses, increase individual savings, and for other purposes.
Sec. 2 Community bank exemption from annual management assessment of internal controls requirement of the Sarbanes-Oxley Act of 2002
Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is amended by adding at the end the following:
“(d) Community bank exemption
“(1) Definitions—In this subsection—
“(A) the term bank holding company has the same meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841);
“(B) the term insured depository institution has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
“(C) the term savings and loan holding company has the same meaning as in section 10 of the Home Owners' Loan Act (12 U.S.C. 1467a).
“(2) In general—This section and the rules prescribed under this section shall not apply in any fiscal year to any bank holding company, savings and loan holding company, or insured depository institution which, as of the end of the preceding fiscal year, had total consolidated assets of $1,000,000,000 or less.
“(3) Adjustment of amount—The Commission shall annually adjust the dollar amount in paragraph (1) by an amount equal to the percentage increase, for the most recent year, in total assets held by all bank holding companies, savings and loan holding companies, and insured depository institutions, as reported by the Federal Deposit Insurance Corporation.”
Sec. 3 Escrow requirements relating to certain consumer credit transactions
Section 129D(c) of the Truth in Lending Act (15 U.S.C. 1639d(c)) is amended—
by redesignating paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), (C), and (D), respectively, and moving the margins 2 ems to the right;
by striking “The Bureau” and inserting the following:
“(1) In general—The Bureau”
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 secured by a first lien on the principal dwelling of a consumer, if such loan is held by an insured depository institution having assets of $10,000,000,000 or less.”
Sec. 4 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—In this section—
“(i) the term qualified mortgage includes any mortgage loan that is originated and retained in portfolio for a period of not less than 3 years by a depository institution having less than $10,000,000,000 in total assets; and
“(ii) loans described in clause (i) shall be deemed to meet the requirements of subsection (a).”
in subparagraph (E)—
by striking “The Bureau may, by regulation,” and inserting “The Bureau shall, by regulation,”; and
by striking clause (iv) and inserting the following:
“(iv) that is extended by an insured depository institution that—
“(I) originates and retains the balloon loans in portfolio for a period of not less than 3 years; and
“(II) together with its affiliates has less than $10,000,000,000 in total consolidated assets.”