H. R. 1723
IN THE HOUSE OF REPRESENTATIVES
May 4, 2011
Mr. Posey (for himself, Mr. Paul, Mr. Westmoreland, Mr. Issa, Mr. Webster, Mr. Jones, Mr. Manzullo, Mr. Miller of Florida, Mrs. Hartzler, Mr. Pitts, Mr. Flores, Mr. Gohmert, Mr. Bartlett, Mr. Pearce, Mr. Gingrey of Georgia, Mr. McCotter, Mr. Luetkemeyer, and Mr. Thompson of Pennsylvania) introduced the following bill; which was referred to the Committee on Financial Services
To permit certain current loans that would otherwise be treated as non-accrual loans as accrual loans for certain purposes.
This Act may be cited as the
Common Sense Economic Recovery Act of
Treatment of certain loans
For purposes of determining capital requirements or measuring capital of an insured depository institution under section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o) or any other provision of law or regulatory guidance, an insured depository institution that would otherwise be required to treat a loan as a non-accrual loan may treat such loan as an accrual loan, if—
the loan is current;
during the previous 6-month period, no monthly payment on the loan has been more than 30 days delinquent;
the loan is an amortizing loan; and
the payments being made on the loan are not being funded through an interest reserve account.
Equality of treatment for modified mortgage loans
Subsection (a) shall apply to modified mortgage loans, including those loans that meet the criteria for troubled debt restructuring, to the same extent as non-modified mortgage loans, as long as the modified mortgage loans also meet the requirements under paragraphs (1) through (4) of subsection (a).
No additional adverse treatment
With respect to a loan held by an insured depository institution and treated as an accrual loan by reason of subsection (a), an appropriate Federal banking agency may not impose any additional accounting requirements on such institution with respect to such loan compared to the requirements that would otherwise have been placed on such institution with respect to such loan if such loan were not being treated as an accrual loan by reason of subsection (a), if the result of such additional requirement would adversely impact the measurement of capital of the institution.
The Financial Stability Oversight Council shall conduct a study of how best to prevent contradictory guidance from being issued by appropriate Federal banking agencies to insured depository institutions with respect to loan classifications and capital requirements.
Not later than the end of the 60-day period beginning on the date of the enactment of this Act, the Financial Stability Oversight Council shall issue a report to the Congress containing—
all determinations and conclusions made by the Council in carrying out the study required under subsection (a); and
legislative recommendations that the Council believe will prevent contradictory guidance from being issued by appropriate Federal banking agencies to insured depository institutions with respect to loan classifications and capital requirements.
For purposes of this Act, the terms
appropriate Federal banking agency and
institution shall have the meaning given those terms, respectively,
under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
Effective after the end of the 2-year period beginning on the date of the enactment of this Act, this Act shall cease to have any force or effect.