,i #aacth ,,congress #b;d ,session ,h4 ,r4 #eghf ,,in ,,the ,,house ,,of ,,representatives ,december #c1 #bjad ,mr4 ,lankford 7for himself and ,mr4 ,welch7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend certain banking statutes to exempt community banks from certain regulatory requirements1 to include a community bank representative in the membership of the ,board of ,governors of the ,federal ,reserve ,system1 to create a process for a county to be designated as a rural area1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,small ,financial ,institutions ,regulatory ,relief ,act of #bjad4 #b4 ,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 by adding at the end the following3 7,f7 ,loans held on portfolio ,the term qualified mortgage includes a residential mortgage loan made by a creditor having less than #aj1jjj1jjj1jjj in total assets1 so long as such loan is originated and retained in portfolio of the creditor for the duration of the loan term4 4 #c4 ,exemption from escrow requirements for loans held by small creditors ,section #abi;,d7c7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;d7c77 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 ,bureau 2 and 7#c7 by adding at the end the following3 7#b7 ,treatment of loans held by smaller creditors ,the ,bureau 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 less than #aj1jjj1jjj1jjj4 4 #d4 ,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 #aj1jjj or fewer mortgage loans1 in order to reduce regulatory burdens while appropriately balancing consumer protections4 4 #e4 ,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 #f4 ,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 #g4 ,membership of ,board of ,governors of the ,federal ,reserve ,system 7a7 ,inclusion of a person with community bank experience ,the first undesignated paragraph of section #aj of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bda7 is amended by inserting after the second sentence the following3 ,the ,board shall at all times have as a member at least #a person with demonstrated experience working in or supervising community banks having less than #aj1jjj1jjj1jjj in total assets4 7b7 ,effective date ,the amendment made by subsection 7a7 shall take effect on the date of enactment of this ,act and apply to appointments made on and after that effective date1 excluding any nomination pending in the ,senate on that date4 #h4 ,designation of rural area 7a7 ,application ,not later than #ij days after the date of the enactment of this ,act1 the ,bureau of ,consumer ,financial ,protection shall establish an application process under which a person who lives or does business in a ,state may1 with respect to an area identified by the person in such ,state that has not been designated by the ,bureau as a rural area for purposes of a ,federal consumer financial law 7as defined under section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj71 apply for such area to be so designated4 7b7 ,evaluation ,criteria ,when evaluating an application submitted under subsection 7a71 the ,bureau shall take into consideration the following factors3 7#a7 ,criteria used by the ,director of the ,bureau of the ,census for classifying geographical areas as rural or urban4 7#b7 ,criteria used by the ,director of the ,office of ,management and ,budget to designate counties as metropolitan or micropolitan or neither4 7#c7 ,criteria used by the ,secretary of ,agriculture to determine property eligibility for rural development programs4 7#d7 ,the ,department of ,agriculture rural-urban commuting area codes4 7#e7 ,a written opinion provided by the ,state's bank supervisor1 as defined under section #c7r7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7r774 7#f7 ,population density4 7c7 ,public ,comment ,period 7#a7 ,in general ,not later than #fj days after receiving an application submitted under subsection 7a71 the ,bureau shall-- 7,a7 publish such application in the ,federal ,register2 and 7,b7 make such application available for public comment for not fewer than #ij days4 7#b7 ,limitation on additional applications ,nothing in this section shall be construed to require the ,bureau1 during the public comment period with respect to an application submitted under subsection 7a71 to accept an additional application with respect to the area that is the subject of the initial application4 7d7 ,decision on ,designation ,not later than #ij days after the end of the public comment period under subsection 7c77#a7 for an application1 the ,bureau shall-- 7#a7 grant or deny such application1 in whole or in part2 and 7#b7 publish such grant or denial in the ,federal ,register1 along with an explanation of what factors the ,bureau relied on in making such determination4 7e7 ,subsequent ,applications ,a decision by the ,bureau under subsection 7d7 to deny an application for an area to be designated as a rural area shall not preclude the ,bureau from accepting a subsequent application submitted under subsection 7a7 for such area to be so designated1 so long as such subsequent application is made after the end of the #ij-;day period beginning on the date that the ,bureau denies the application under subsection 7d74