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S. 2155 (115th): Economic Growth, Regulatory Relief, and Consumer Protection Act

The text of the bill below is as of Nov 16, 2017 (Introduced).


II

115th CONGRESS

1st Session

S. 2155

IN THE SENATE OF THE UNITED STATES

November 16, 2017

(for himself, Mr. Donnelly, Ms. Heitkamp, Mr. Tester, Mr. Warner, Mr. Corker, Mr. Scott, Mr. Cotton, Mr. Rounds, Mrs. McCaskill, Mr. Perdue, Mr. Manchin, Mr. Tillis, Mr. King, Mr. Kennedy, Mr. Kaine, Mr. Moran, Mr. Peters, Mr. Risch, and Mr. Bennet) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To promote economic growth, provide tailored regulatory relief, and enhance consumer protections, and for other purposes.

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.

Sec. 107. Protecting access to manufactured homes.

Sec. 108. Property Assessed Clean Energy financing.

Sec. 109. Escrow requirements relating to certain consumer credit transactions.

Sec. 110. 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. Mutual holding company dividend waivers.

Sec. 210. Small public housing agencies.

Sec. 211. Examination cycle.

Sec. 212. National securities exchange regulatory parity.

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.

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—Studies

Sec. 501. Treasury report on risks of cyber threats.

Sec. 502. SEC study on algorithmic trading.

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).

I

Improving consumer access to mortgage credit

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; or

(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.

(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.

.

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).

.

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:

1127.

Exemption from appraisals of real estate located in rural areas

(a)

Definition

In this section, the term mortgage originator has the meaning given the term in section 103 of the Truth in Lending Act (15 U.S.C. 1602).

(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 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; and

(B)

has documented that no State certified appraiser or State licensed appraiser, as applicable, was available within a reasonable amount of time, as determined by the Federal financial institutions regulatory agency with oversight of the mortgage originator, to perform the appraisal in connection with the federally related transaction;

(3)

the balance of the loan 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; or

(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.

(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.

.

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.

; 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).

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).

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:

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 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;

(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)

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.

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 lender; and

(bb)

if the retailer has a corporate affiliation with any lender, at least 1 unaffiliated lender; and

(III)

does not directly negotiate with the consumer or lender on loan terms (including rates, fees, and other costs).

.

108.

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.

.

109.

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—

(1)

by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and adjusting the margins accordingly;

(2)

in the matter preceding subparagraph (A), as so redesignated, by striking The Board and inserting the following:

(1)

In general

The Bureau

;

(3)

in paragraph (1), as so redesignated, by striking the Board each place that term appears and inserting the Bureau; and

(4)

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 otherwise satisfies the criteria in sections 1026.35(b)(2)(iii) and 1026.35(b)(2)(v) of title 12, Code of Federal Regulations, or any successor regulation.

.

110.

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.

II

Regulatory relief and protecting consumer access to credit

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 qualified community bank that has a Community Bank Leverage Ratio that is below the percentage developed under paragraph (1).

(c)

Capital compliance

(1)

In general

Any qualifying community bank that meets 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 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.

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.

.

203.

Community bank relief

Section 13(h) of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(h)) is amended—

(1)

in paragraph (1)—

(A)

in subparagraph (D), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly;

(B)

by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and adjusting the margins accordingly;

(C)

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—

;

(D)

in clause (iv)(II), as so redesignated, by striking the period at the end and inserting ; or; and

(E)

by adding at the end the following:

(B)

with—

(i)

not more than $10,000,000,000 of 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 not more than 5 percent of total consolidated assets.

.

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).

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.

.

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:

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

Upon issuance of rules under subsection (f), and in accordance with those rules, a Federal savings association with total consolidated assets equal to or less than $15,000,000,000 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—

(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 or 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 $15,000,000,000.

.

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).

.

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, after Puerto Rico,; and

(C)

in paragraph (23), by inserting American Samoa, the Commonwealth of the Northern Mariana Islands, 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, 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.

209.

Mutual holding company dividend waivers

Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall amend section 239.8(d)(2)(iv) of title 12, Code of Federal Regulations, by striking 12 months each place that term appears and inserting 24 months.

210.

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:

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.

(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

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).

(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 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.

211.

Examination cycle

Section 10(d)(4)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)(4)(A)) is amended by striking $1,000,000,000 and inserting $3,000,000,000.

212.

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.

III

Protections for veterans, consumers, and homeowners

301.

Protecting consumers' credit

Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c–1) is amended—

(a)

in subsection (a)(1)(A), by striking 90 days and inserting 1 year; and

(b)

by adding at the end the following:

(i)

Free annual freeze alerts; additional protections for credit reports of minor consumers

(1)

Definition

In this subsection, the term freeze alert means a restriction placed on the file of a consumer, prohibiting the ability of a consumer reporting agency to furnish to any person, for the purpose of opening a new account involving the extension of credit, the consumer report of the consumer.

(2)

Free annual freeze alert

(A)

In general

Notwithstanding any other provision of State law, once every calendar year, free of charge, upon the direct request of a consumer, or an individual acting on behalf of or as a personal representative of the consumer, a consumer reporting agency that maintains a file on the consumer and has received appropriate proof of the identity of the requester shall provide 1 freeze alert in the file of that consumer that shall remain in effect until the consumer or requester requests that such freeze alert be removed.

(B)

Removal of alert

Notwithstanding any other provision of State law, once every calendar year, free of charge, upon the direct request of a consumer, or an individual acting on behalf of or as a personal representative of the consumer, a consumer reporting agency that receives a request to remove a freeze alert provided under paragraph (1) shall remove such a freeze alert.

(C)

Rule of construction

Nothing in this paragraph shall be construed to limit the authority of a State to require consumer reporting agencies to require freeze alerts free of charge.

(3)

Additional protections for credit reports of minor consumers

(A)

In general

Upon the direct request of an individual acting on behalf of or as a personal representative of a minor, a consumer reporting agency that maintains a file on the minor and has received appropriate proof of the identity of the requester shall include a freeze alert, free of charge, in the file of that minor that shall remain in effect until an individual acting on behalf of or as a personal representative of the minor, or in the case of a minor who is no longer a minor, the minor, requests that such freeze alert be removed.

(B)

Block of information

While a freeze alert under subparagraph (A) is in place, a consumer reporting agency may not release—

(i)

the consumer report of the minor;

(ii)

any information derived from the consumer report of the minor; or

(iii)

any record created for the minor.

(C)

Removal

Notwithstanding any other provision of State law, a consumer reporting agency that receives a request for a freeze alert for a minor or a request to remove a freeze alert for a minor shall provide or remove the freeze alert, as applicable, free of charge.

.

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 or medical 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 debt of a veteran arising from health care provided in a non-Department of Veterans Affairs facility under the laws administered by the Secretary of Veterans Affairs; and

(2)

includes medical 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)

Any information related to a veteran’s medical debt if the date on which the hospital care or medical services was rendered relating to the debt antedates the report by less than 1 year.

(8)

Any information related to a fully paid or settled veteran’s medical debt that had been characterized as delinquent, charged off, or in collection.

.

(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 of a consumer, the consumer may submit a notice described in paragraph (2) along with 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 medical services rendered to a consumer reporting agency or a reseller to dispute the inclusion of that debt on a consumer report of the consumer.

(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 and 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 consumer and notify the furnisher and the consumer of that deletion.

.

(c)

Effective date

The amendments made by this section shall take effect on the date that is 180 days after the date of enactment of this Act.

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 entities 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; and

(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; and

(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;

(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 compliance officer (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.

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 or repealed 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.

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.

IV

Tailoring regulations for certain bank holding companies

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)(A)—

(i)

in the first sentence, by striking semiannual and inserting periodic; and

(ii)

in the second sentence—

(I)

by striking $10,000,000,000 and inserting $250,000,000,000; and

(II)

by striking annual and inserting periodic; 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. 5311(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

Paragraph (2) of the second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act (12 U.S.C. 248(s)(2)) is amended—

(A)

in subparagraph (A)—

(i)

by striking $50,000,000,000 and inserting $250,000,000,000; and

(ii)

by inserting and after the semicolon at the end;

(B)

by striking subparagraph (B); and

(C)

by redesignating subparagraph (C) as subparagraph (B).

(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 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 not more 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)).

402.

Supplementary leverage ratio for custodial banks

(a)

Definition

In this section, the term custodial bank means any depository institution or depository institution holding company for which the level of assets under custody is not less than 30 times the total consolidated assets of the depository institution or depository institution holding company, as applicable.

(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 central bank of such member country has been assigned a zero percent risk weight under the final rule of the Office of the Comptroller of the Currency and Board of Governors of the Federal Reserve System entitled Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule (78 Fed. Reg. 62018 (October 11, 2013)) and the final rule of the Federal Deposit Insurance Corporation entitled Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-Weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule (79 Fed. Reg. 20754 (April 14, 2014)); 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.

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 Act.

V

Studies

501.

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).

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).