,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #aaac  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,febru>y #bf1 #bjae   
,mr4 ,b>r 7= himself1 ,mr4 ,web] (      
,texas1 ,mr4 ,neugebau]1 ,mr4 ,f9*]1    
,mr4 ,dold1 ,mr4 ,tipton1 ,mr4 ,hill1   
,mr4 ,lucas1 ,mr4 ,ro?fus1 ,mr4         
,luetkemey]1 ,mr4 ,/iv]s1 ,mr4 ,k+ (    
,new ,york1 ,mr4 ,hultgr51 ,mr4 ,duffy1 
,mr4 ,/utzman1 ,mr4 ,gu9ta1 & ,mr4      
,ribble7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d ! ,tru? 9 
,l5d+ ,act to provide a safe h>bor f    
c]ta9 requirem5ts relat$ to qualifi$    
mortgages = resid5tial mortgage loans   
held on an orig9at+ insur$ depository   
in/itution's portfolio1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,portfolio ,l5d+ &         
,mortgage ,access ,act4  #b4 ,safe h>bor
 = c]ta9 loans held on portfolio  7a7 ,9
 g5]al ,section #abi;,c ( ! ,tru? 9     
,l5d+ ,act 7#ae ,u4,s4,c4 #afci;c7 is   
am5d$ by add+ at ! end ! foll[+3  7j7   

,safe h>bor = c]ta9 loans held on       
portfolio  7#a7 ,safe h>bor = cr$itors t
 are insur$ depository in/itutions  7,a7
 ,9 g5]al ,a cr$itor t is an insur$     
depository in/itution %all n be subject 
to suit = failure to comply ) subsection
 7a71 7c77#a71 or 7f77#b7 ( ?is section 
or section #abi;,h ) respect to a       
resid5tial mortgage loan1 & ! bank+     
regulators %all treat su* loan z a      
qualifi$ mortgage1 if-- 7i7 ! cr$itor   
has1 s9ce ! orig9ation ( ! loan1 held ! 
loan on ! balance %eet ( ! cr$itor2 &   
7ii7 all prepaym5t p5alties ) respect to
 ! loan comply ) ! limitations describ$ 
"u subsection 7c77#c74  7,b7 ,exception 
= c]ta9 transf]s ,9 ! case ( an insur$  
depository in/itution t transf]s a loan 
orig9at$ by t in/itution to ano!r insur$
 depository in/itution by reason ( !    
bankruptcy or failure ( ! orig9at+      
insur$ depository in/itution or !       
pur*ase ( ! orig9at+ insur$ depository  
in/itution1 ! insur$ depository         
in/itution transf]r+ su* loan %all be   

deem$ to h compli$ ) ! requirem5t "u    
subp>agraph 7,a77i74  7#b7 ,safe h>bor =
 mortgage orig9ators ,a mortgage        
orig9ator %all n be subject to suit = a 
violation ( section #abi;,b7c77#c77;,b7 
= /e]+ a consum] to a resid5tial        
mortgage loan if-- 7,a7 ! cr$itor ( su* 
loan is an insur$ depository in/itution 
& has in=m$ ! mortgage orig9ator t !    
cr$itor int5ds to hold ! loan on !      
balance %eet ( ! cr$itor = ! life ( !   
loan2 &  7,b7 ! mortgage orig9ator in=ms
 ! consum] t ! cr$itor int5ds to hold ! 
loan on ! balance %eet ( ! cr$itor = !  
life ( ! loan4  7#c7 ,def9itions ,=     
purposes ( ?is subsection3  7,a7 ,bank+ 
regulators ,! t]m bank+ regulators means
 ! ,f$]al bank+ ag5cies & ! ,bureau4    
7,b7 ,o!r t]ms ,! t]ms ,f$]al bank+     
ag5cies & insur$ depository in/itution h
 ! mean+ giv5 ^? t]ms1 respectively1 "u 
section #c ( ! ,f$]al ,deposit          
,insurance ,act4  4  7b7 ,rule (        
con/ruction ,no?+ 9 ! am5dm5t made by   
?is ,act may be con/ru$ z prev5t+ a     

balloon loan f qualify+ = ! safe h>bor  
provid$ "u section #abi;,c7j7 ( ! ,tru? 
9 ,l5d+ ,act if ! balloon loan o!rwise  
meets all ( ! requirem5ts "u su*        
subsection 7j71 reg>dless ( :e!r !      
balloon loan meets ! requirem5ts        
describ$ "u clauses 7i7 ?r\gh 7iv7 (    
section #abi;,c7b77#b77;,e7 ( su* ,act4