,i #aacth ,,congress #ast ,session ,h4 ,r4 #agej ,,in ,,the ,,house ,,of ,,representatives ,april #be1 #bjac ,mr4 ,luetkemeyer 7for himself1 ,mr4 ,westmoreland1 and ,mr4 ,gary ,g4 ,miller of ,california7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to enhance the ability of community financial institutions to foster economic growth and serve their communities1 boost small businesses1 increase individual savings1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,community ,lending ,enhancement and ,regulatory ,relief ,act of #bjac or the ,,clear ,relief ,act of #bjac4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,changes required to small bank holding company policy statement on assessment of financial and managerial factors4 ,sec4 #c4 ,escrow requirements4 ,sec4 #d4 ,exception to annual privacy notice requirement under the ,gramm-,leach-,bliley ,act4 ,sec4 #e4 ,accounting principles cost-benefit requirements4 ,sec4 #f4 ,community bank exemption from annual management assessment of internal controls requirement of the ,sarbanes-,oxley ,act of #bjjb4 ,sec4 #g4 ,certain loans included as qualified mortgages4 ,sec4 #h4 ,increase in small servicer exemption4 ,sec4 #i4 ,appraiser qualification threshold4 ,sec4 #aj4 ,coordination among financial institutions4 #b4 ,changes required to small bank holding company policy statement on assessment of financial and managerial factors 7a7 ,small bank holding company policy statement on assessment of financial and managerial factors 7#a7 ,in general ,before the end of the #f-month period beginning on the date of the enactment of this ,act1 the ,board of ,governors of the ,federal ,reserve ,system shall publish in the ,federal ,register proposed revisions to the ,small ,bank ,holding ,company ,policy ,statement on ,assessment of ,financial and ,managerial ,factors 7#ab ,c4,f4,r4 part #bbe--;appendix ,c7 that provide that the policy shall apply to a bank holding company which has pro forma consolidated assets of less than #e1jjj1jjj1jjj and that-- 7,a7 is not engaged in any nonbanking activities involving significant leverage2 and 7,b7 does not have a significant amount of outstanding debt that is held by the general public4 7#b7 ,adjustment of amount ,the ,board of ,governors of the ,federal ,reserve ,system shall annually adjust the dollar amount referred to in paragraph 7#a7 in the ,small ,bank ,holding ,company ,policy ,statement on ,assessment of ,financial and ,managerial ,factors by an amount equal to the percentage increase1 for the most recent year1 in total assets held by all insured depository institutions1 as determined by the ,board4 7b7 ,increase in debt-to-,equity ratio of small bank holding company ,before the end of the #f-month period beginning on the date of the enactment of this ,act1 the ,board of ,governors of the ,federal ,reserve ,system shall publish in the ,federal ,register proposed revisions to the ,small ,bank ,holding ,company ,policy ,statement on ,assessment of ,financial and ,managerial ,factors 7#ab ,c4,f4,r4 part #bbe--;appendix ,c7 such that the debt-to-equity ratio allowable for a small bank holding company in order to remain eligible to pay a corporate dividend and to remain eligible for expedited processing procedures under ,regulation ,y of the ,board of ,governors of the ,federal ,reserve ,system would increase from #a3a to #c3a4 #c4 ,escrow requirements 7a7 ,in general ,section #abi;,d7c7 of the ,truth in ,lending ,act1 as added by section #adfa7;a7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 is amended-- 7#a7 by redesignating paragraphs 7#a71 7#b71 7#c71 and 7#d7 as subparagraphs 7,a71 7,b71 7,c71 and 7,d7 and moving such subparagraphs #b ems to the right2 7#b7 striking ,the ,board and inserting the following3 7#a7 ,in general ,the ,board 2 and 7#c7 by adding at the end the following new paragraph3 7#b7 ,treatment of loans held by smaller creditors ,the ,board shall1 by regulation1 exempt from the requirements of subsection 7a7 any loan secured by a first lien on a consumer's principle dwelling1 if such loan is held by a creditor with assets of #aj1jjj1jjj1jjj or less4 4 #d4 ,exception to annual privacy notice requirement under the ,gramm-,leach-,bliley ,act ,section #ejc of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhjc7 is amended by adding at the end the following3 7f7 ,exception to annual notice requirement ,a financial institution that-- 7#a7 provides nonpublic personal information only in accordance with the provisions of subsection 7b77#b7 or 7e7 of section #ejb or regulations prescribed under section #ejd7;b71 and 7#b7 has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to consumers in accordance with this subsection1 shall not be required to provide an annual disclosure under this subsection until such time as the financial institution fails to comply with any criteria described in paragraph 7#a7 or 7#b74 4 #e4 ,accounting principles cost-benefit requirements ,section #ai7;b7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #ggs7b77 is amended by adding at the end the following3 7#c7 ,generally accepted accounting principles cost-benefit requirements ,the ,commission or its designee shall conduct analyses of the costs and benefits 7including economic benefits7 of any new or amended accounting principle described under paragraph 7#a71 and may not recognize such new or amended accounting principle1 unless the ,commission or its designee determines that the benefits to investors of such new or amended accounting principle significantly outweigh its costs4 4 #f4 ,community bank exemption from annual management assessment of internal controls requirement of the ,sarbanes-,oxley ,act of #bjjb ,section #djd of the ,sarbanes-,oxley ,act of #bjjb 7#ae ,u4,s4,c4 #gbfb7 is amended by adding the following new subsection3 7d7 ,community bank exemption 7#a7 ,in general ,this section shall not apply in any year to any insured depository institution which1 as of the close of the preceding year1 had total assets1 as determined on a consolidated basis1 of #aj1jjj1jjj1jjj or less4 7#b7 ,adjustment of amount ,the ,commission shall annually adjust the dollar amount in paragraph 7#a7 by an amount equal to the percentage increase1 for the most recent year1 in total assets held by all depository institutions1 as reported by the ,federal ,deposit ,insurance ,corporation4 4 #g4 ,certain loans included as qualified mortgages ,section #abi;,c7b77#b7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c7b77#b77 is amended-- 7#a7 in subparagraph 7,a7-- 7,a7 in clause 7viii71 by striking and at the end2 7,b7 in clause 7ix71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7x7 that is originated and retained in portfolio for a period of at least #c years by a creditor having less than #aj1jjj1jjj1jjj in total assets4 2 and 7#b7 in subparagraph 7,e7-- 7,a7 by striking ,the ,board may1 by regulation and inserting ,the ,bureau shall1 by regulation2 and 7,b7 by amending clause 7iv7 to read as follows3 7iv7 that is extended by a creditor that-- 7,i7 originates and retains the balloon loans in portfolio for a period of at least #c years2 and 7,,ii7 together with all affiliates1 has total assets of #aj1jjj1jjj1jjj or less4 4 #h4 ,increase in small servicer exemption ,section #f of the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfje7 is amended by adding at the end the following3 7n7 ,small servicer exemption ,the ,bureau shall1 by regulation1 provide exemptions to1 or adjustments for1 the provisions of this section for servicers that service #bj1jjj or fewer mortgage loans1 in order to reduce regulatory burdens while appropriately balancing consumer protections4 4 #i4 ,appraiser qualification threshold ,section #aaab7;b7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ccda7;b77 is amended-- 7#a7 by striking may establish a threshold level at or and inserting shall establish a threshold level of #bej1jjj12 and 7#b7 by striking transactions1 if and inserting transactions4 ,each ,federal financial institutions regulatory agency and the ,resolution ,trust ,corporation may establish a higher threshold than #bej1jjj1 if4 #aj4 ,coordination among financial institutions ,chapter #ec of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by inserting after section #eccb the following new section3 #eccc4 ,coordination among financial institutions 7a7 ,in general ,in the case of an entry received via an automated clearing house1 no receiving depository financial institution shall be required to verify that the entry is not a prohibited transaction1 if the originating depository financial institution has warranted1 pursuant to the automated clearing house rules governing such entry or otherwise1 that the originating depository financial institution has complied with the sanctions programs administered by the ,office of ,foreign ,assets ,control in connection with such entry4 7b7 ,definitions ,for purposes of this section3 7#a7 ,automated clearing house ,the term automated clearing house means a funds transfer system governed by rules which provide for the interbank clearing of electronic entries for participating depository financial institutions4 7#b7 ,depository financial institution ,the term depository financial institution means-- 7,a7 any insured depository institution1 as such term is defined under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 7,b7 any depository institution which is eligible to apply to become an insured depository institution under section #e of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahae72 7,c7 any insured credit union1 as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb72 and 7,d7 any credit union which is eligible to apply to become an insured credit union pursuant to section #bja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agha74 7#c7 ,entry ,the term entry means an order to request for the transfer of funds through an automated clearing house4 7#d7 ,originating depository financial institution ,the term originating depository financial institution means a depository financial institution that transmits entries via an automated clearing house for transmittal to a receiving depository financial institution4 7#e7 ,prohibited transaction ,the term prohibited transaction means a funds transfer originated on behalf of a person to or from whom funds transfers are restricted by a sanctions program administered by the ,office of ,foreign ,assets ,control1 including persons appearing on the list of specially designated nationals and blocked persons maintained by the ,office of ,foreign ,assets ,control4 7#f7 ,receiving depository financial institution ,the term receiving depository financial institution means a depository financial institution that receives entries via an automated clearing house from an originating depository financial institution for debit or credit to the accounts of its customers4 2 and 7#b7 in the table of contents for such chapter by inserting after the item relating to section #eccb the following new item3 #eccc4 ,coordination among financial institutions4 4