H. R. 1408
IN THE HOUSE OF REPRESENTATIVES
March 17, 2015
Mr. Perlmutter (for himself and Mr. Luetkemeyer) introduced the following bill; which was referred to the Committee on Financial Services
To require certain Federal banking agencies to conduct a study of the appropriate capital requirements for mortgage servicing assets for nonsystemic banking institutions, and for other purposes.
This Act may be cited as the
Mortgage Servicing Asset Capital Requirements Act of 2015.
Community financial institution mortgage servicing asset capital requirements study
For purposes of this section:
The term banking institution means an insured depository institution, Federal credit union, State credit union, bank holding company, or savings and loan holding company.
Basel III capital requirements
The term Basel III capital requirements means the Global Regulatory Framework for More Resilient Banks and Banking Systems issued by the Basel Committee on Banking Supervision on December 16, 2010, as revised on June 1, 2011.
Federal banking agencies
The term Federal banking agencies means the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Mortgage servicing asset
The term mortgage servicing asset means those assets that result from contracts to service loans secured by real estate, where such loans are owned by third parties.
NCUA capital requirements
The term NCUA capital requirements means the proposed rule of the National Credit Union Administration titled
Risk-Based Capital (80 Fed. Reg. 4340; January 27, 2015).
Nonsystemic banking institution
The term nonsystemic banking institution means any banking institution other than an institution identified by the Financial Stability Board as a
global systemically important bank.
The terms bank holding company, insured depository institution, and savings and loan holding company have the meanings given such terms, respectively, under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
Credit union definitions
The terms Federal credit union and State credit union have the meanings given such terms, respectively, under section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
Study of the appropriate capital for mortgage servicing assets
The Federal banking agencies shall, jointly, conduct a study of the appropriate capital requirements for mortgage servicing assets for nonsystemic banking institutions.
Issues to be studied
The study required by this subsection shall include, with a specific focus on nonsystemic banking institutions—
the risk to banking institutions of holding mortgage servicing assets;
the history of the market for mortgage servicing assets, including particularly the market for such assets in the period of the financial crisis;
the ability of banking institutions to establish a value for their mortgage servicing assets through periodic sales or other means;
regulatory approaches to mortgage servicing assets in addition to capital requirements that could be used to address concerns about the value of and ability to sell mortgage servicing assets;
the impact of imposing the Basel III capital requirements and the NCUA capital requirements on nonsystemic banking institutions on their ability to compete in the mortgage servicing business, including the need for economies of scale to compete in that business, and on their ability to provide service to consumers to whom they have made a mortgage loan;
an analysis of what the mortgage servicing marketplace would look like if the Basel III capital requirements and the NCUA capital requirements on mortgage servicing assets—
were fully implemented; and
applied to both banking institutions and nondepository residential mortgage loan servicers;
the significance of problems with mortgage servicing assets, if any, in banking institution failures and problem banking institutions, including specifically identifying failed banking institutions where mortgage servicing assets contributed to the failure; and
an analysis of the relevance of the Basel III capital requirements and the NCUA capital requirements on mortgage servicing assets to the banking systems of other significant developed countries.
Report to Congress
Not later than the end of the 6-month period beginning on the date of the enactment of this Act, the Federal banking agencies shall issue a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives containing—
the results of the study required under paragraph (1); and
any analysis on the specific issue of mortgage servicing assets undertaken by the Federal banking agencies prior to finalizing regulations implementing the Basel III capital requirements and the NCUA capital requirements.
Delay of rulemaking
Rules on mortgage servicing assets
Notwithstanding any other provision of law, no regulation to implement the Basel III capital requirements or the NCUA capital requirements with respect to mortgage servicing assets for nonsystemic banking institutions shall take effect before the end of the 3-month period beginning on the date the report is issued under subsection (b)(3).
Final rule requirements
Before any final rule is issued by a Federal banking agency with respect to capital requirements on mortgage servicing assets for nonsystemic banking institutions, the Federal banking agency shall—
if the related proposed rule was issued before the date on which the report is issued under subsection (b)(3), issue a new proposed rule for public comment; and
consider regulatory approaches to mortgage servicing assets that could address concerns about the value of and ability to sell mortgage servicing assets.