,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #abcc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #d1 #bjae ,mr4   
,luetkemey] introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,f9ancial  
,s]vices  ,a ,,bill  ,to provide        
regulatory relief to community f9ancial 
in/itutions1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,community ,l5d+ ,enhancem5t &          
,regulatory ,relief ,act ( #bjae or !   
,,cle>r ,act ( #bjae4  #b4 ,exception to
 annual privacy notice requirem5t "u !  
,gramm-,lea*-,bliley ,act ,section #ejc 
( ! ,gramm-,lea*-,bliley ,act 7#ae      
,u4,s4,c4 #fhjc7 is am5d$ by add+ at !  
end ! foll[+3  7f7 ,exception to annual 
notice requirem5t ,a f9ancial in/itution
 t-- 7#a7 provides nonpublic p]sonal    
in=mation only 9 accordance ) !         
provisions ( subsection 7b77#b7 or 7e7 (
 section #ejb or regulations prescrib$  
"u section #ejd7;b71 &  7#b7 has n *ang$
 its policies & practices ) reg>d to    
disclos+ nonpublic p]sonal in=mation f !

 policies & practices t 7 disclos$ 9 !  
mo/ rec5t disclosure s5t to consum]s 9  
accordance ) ?is section1  %all n be    
requir$ to provide an annual disclosure 
"u ?is section until su* "t z ! f9ancial
 in/itution fails to comply ) any       
crit]ia describ$ 9 p>agraph 7#a7 or     
7#b74  4  #c4 ,community bank mortgage  
s]vic+ asset capital requirem5ts /udy   
7a7 ,def9itions ,= purposes ( ?is       
section3 7#a7 ,bank+ in/itution ,! t]m  
bank+ in/itution means an insur$        
depository in/itution1 ,f$]al cr$it     
union1 ,/ate cr$it union1 bank hold+    
company1 or sav+s & loan hold+ company4 
7#b7 ,basel ,,iii capital requirem5ts ,!
 t]m ,basel ,,iii capital requirem5ts   
means ! ,global ,regulatory ,framework =
 ,m ,resili5t ,banks & ,bank+ ,sy/ems   
issu$ by ! ,basel ,committee on ,bank+  
,sup]vision on ,decemb] #af1 #bjaj1 z   
revis$ on ,june #a1 #bjaa4  7#c7 ,f$]al 
bank+ ag5cies ,! t]m ,f$]al bank+       
ag5cies means ! ,bo>d ( ,gov]nors ( !   
,f$]al ,res]ve ,sy/em1 ! ,(fice ( !     

,comptroll] ( ! ,curr5cy1 ! ,f$]al      
,deposit ,insurance ,corporation1 & !   
,national ,cr$it ,union ,adm9i/ration4  
7#d7 ,mortgage s]vic+ asset ,! t]m      
mortgage s]vic+ asset means ^? assets t 
result f contracts to s]vice loans      
secur$ by real e/ate1 :]e su* loans are 
own$ by ?ird p>ties4  7#e7 ,,ncua       
capital requirem5ts ,! t]m ,,ncua       
capital requirem5ts means ! propos$ rule
 ( ! ,national ,cr$it ,union            
,adm9i/ration titl$ ,risk-,bas$ ,capital
 7#hj ,f$4 ,reg4 #dcdj2 ,janu>y #bg1    
#bjae74  7#f7 ,nonsy/emic bank+         
in/itution ,! t]m nonsy/emic bank+      
in/itution means any bank+ in/itution   
o!r ?an an in/itution id5tifi$ by !     
,f9ancial ,/ability ,bo>d z a global    
sy/emically important bank4  7#g7 ,o!r  
def9itions  7,a7 ,bank+ def9itions ,!   
t]ms bank hold+ company1 insur$         
depository in/itution1 & sav+s & loan   
hold+ company h ! mean+s giv5 su* t]ms1 
respectively1 "u section #c ( ! ,f$]al  
,deposit ,insurance ,act 7#ab ,u4,s4,c4 

#ahac74  7,b7 ,cr$it union def9itions ,!
 t]ms ,f$]al cr$it union & ,/ate cr$it  
union h ! mean+s giv5 su* t]ms1         
respectively1 "u section #aja ( ! ,f$]al
 ,cr$it ,union ,act 7#ab ,u4,s4,c4      
#ageb74  7b7 ,/udy ( ! appropriate      
capital = mortgage s]vic+ assets  7#a7  
,9 g5]al ,! ,f$]al bank+ ag5cies %all1  
jo9tly1 conduct a /udy ( ! appropriate  
capital requirem5ts = mortgage s]vic+   
assets = nonsy/emic bank+ in/itutions4  
7#b7 ,issues ,to be /udi$ ,! /udy       
requir$ by ?is subsection %all include1 
) a specific focus on nonsy/emic bank+  
in/itutions--  7,a7 ! risk to bank+     
in/itutions ( hold+ mortgage s]vic+     
assets2  7,b7 ! hi/ory ( ! m>ket =      
mortgage s]vic+ assets1 includ+         
p>ticul>ly ! m>ket = su* assets 9 !     
p]iod ( ! f9ancial crisis2  7,c7 !      
ability ( bank+ in/itutions to e/abli% a
 value = _! mortgage s]vic+ assets ?r\gh
 p]iodic sales or o!r means2  7,d7      
regulatory approa*es to mortgage s]vic+ 
assets 9 addition to capital requirem5ts

 t c\ld be us$ to address conc]ns ab\t !
 value ( & ability to sell mortgage     
s]vic+ assets2  7,e7 ! impact ( impos+ !
 ,basel ,,iii capital requirem5ts & !   
,,ncua capital requirem5ts on nonsy/emic
 bank+ in/itutions on _! ability to     
compete 9 ! mortgage s]vic+ bus9ess1    
includ+ ! ne$ = economies ( scale to    
compete 9 t bus9ess1 & on _! ability to 
provide s]vice to consum]s to :om !y h  
made a mortgage loan2  7,f7 an analysis 
( :at ! mortgage s]vic+ m>ketplace w\ld 
look l if ! ,basel ,,iii capital        
requirem5ts & ! ,,ncua capital          
requirem5ts on mortgage s]vic+ assets 7 
fully implem5t$2  7,g7 ! significance ( 
problems ) mortgage s]vic+ assets1 if   
any1 9 bank+ in/itution failures &      
problem bank+ in/itutions1 includ+      
specifically id5tify+ fail$ bank+       
in/itutions :]e mortgage s]vic+ assets  
contribut$ to ! failure2 &  7,h7 an     
analysis ( ! relevance ( ! ,basel ,,iii 
capital requirem5ts & ! ,,ncua capital  
requirem5ts on mortgage s]vic+ assets to

 ! bank+ sy/ems ( o!r significant       
develop$ c\ntries4  7#c7 ,report to     
,congress ,n lat] ?an ! end ( ! #a-ye>  
p]iod beg9n+ on ! date ( ! enactm5t (   
?is ,act1 ! ,f$]al bank+ ag5cies %all   
issue a report to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives    
conta9+--  7,a7 ! results ( ! /udy      
requir$ "u p>agraph 7#a72 &  7,b7 any   
analysis on ! specific issue ( mortgage 
s]vic+ assets und]tak5 by ! ,f$]al bank+
 ag5cies prior to f9aliz+ regulations   
implem5t+ ! ,basel ,,iii capital        
requirem5ts & ! ,,ncua capital          
requirem5ts4  7c7 ,delay ( rulemak+     
7#a7 ,rules on mortgage s]vic+ assets   
,not)/&+ any o!r provision ( law1 no    
regulation to implem5t ! ,basel ,,iii   
capital requirem5ts or ! ,,ncua capital 
requirem5ts ) respect to mortgage s]vic+
 assets = nonsy/emic bank+ in/itutions  
%all take effect be=e ! end ( ! #f-mon? 
p]iod beg9n+ on ! date ! report is issu$

 "u subsection 7b77#c74  7#b7 ,f9al rule
 requirem5ts ,be=e any f9al rule is     
issu$ by a ,f$]al bank+ ag5cy ) respect 
to capital requirem5ts on mortgage      
s]vic+ assets = nonsy/emic bank+        
in/itutions1 ! ,f$]al bank+ ag5cy %all--
  7,a7 if ! relat$ propos$ rule 0 issu$ 
be=e ! date on :i* ! report is issu$ "u 
subsection 7b77#c71 issue a new propos$ 
rule = public comm5t2 &  7,b7 consid]   
regulatory approa*es to mortgage s]vic+ 
assets t c\ld address conc]ns ab\t !    
value ( & ability to sell mortgage      
s]vic+ assets4  #d4 ,community          
,in/itution ,mortgage ,relief  7a7      
,exemption f escr[ requirem5ts = loans  
held by small cr$itors ,section         
#abi;,d7c7 ( ! ,tru? 9 ,l5d+ ,act 7#ae  
,u4,s4,c4 #afci;d7c771 z add$ by section
 #adfa7;a7 ( ! ,dodd-,frank ,wall ,/reet
 ,re=m & ,consum] ,protection ,act1 is  
am5d$--  7#a7 by r$esignat+ p>agraphs   
7#a71 7#b71 7#c71 & 7#d7 z subp>agraphs 
7,a71 7,b71 7,c71 & 7,d7 & mov+ su*     
subp>agraphs #b ems to ! "r2  7#b7 by   

/rik+ ,! ,bo>d & ins]t+ ! foll[+3  7#a7 
,9 g5]al ,! ,bo>d  2 &  7#c7 by add+ at 
! end ! foll[+ new p>agraph3  7#b7      
,treatm5t ( loans held by small]        
cr$itors ,! ,bo>d %all1 by regulation1  
exempt f ! requirem5ts ( subsection 7a7 
any loan secur$ by a fir/ li5 on a      
consum]'s pr9ciple dwell+1 if su* loan  
is held by a cr$itor ) assets (         
#aj1jjj1jjj1jjj or less4  4  7b7        
,modification to exemption = small      
s]vic]s ( mortgage loans ,section #f ( !
 ,real ,e/ate ,settlem5t ,proc$ures ,act
 ( #aigd 7#ab ,u4,s4,c4 #bfje7 is am5d$ 
by add+ at ! end ! foll[+3  7n7 ,small  
,s]vic] ,exemption ,! ,bureau %all1 by  
regulation1 provide exemptions to1 or   
adju/m5ts =1 ! provisions ( ?is section 
= s]vic]s t annually s]vice #bj1jjj or  
few] mortgage loans1 9 ord] to r$uce    
regulatory burd5s :ile appropriately    
balanc+ consum] protections4  4  #e4    
,access to ,af=dable ,mortgages  7a7    
,exemption f prop]ty appraisal          
requirem5ts = l[]-,co/ dwell+s ,section 

#abi;,h ( ! ,tru? 9 ,l5d+ ,act 7#ae     
,u4,s4,c4 #afci;h7 is am5d$ by add+ at !
 end ! foll[+ new subsection3  7g7      
,exemption = high]-,risk mortgages ,?is 
section %all n apply to a high]-risk    
mortgage loan ( #bej1jjj or less if su* 
loan appe>s on ! balance %eet ( !       
cr$itor ( su* loan = a p]iod ( n less   
?an #c ye>s4  4  7b7 ,exemption f       
p5alties = failure ,to report apprais]s 
,p>agraph 7#a7 ( section #abi;,e7k7 ( ! 
,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4       
#afci;e7k77#a77 is am5d$ by ins]t+ aft] 
?is section ! foll[+3 1 o!r ?an         
subsection 7e714  7c7 ,exemption f      
appraisal /&>d requirem5ts = l[]-,co/   
dwell+s ,section #aaaj ( ! ,f9ancial    
,in/itutions ,re=m1 ,recov]y1 &         
,en=cem5t ,act ( #aihi 7#ab ,u4,s4,c4   
#ccci7 is am5d$--  7#a7 by /rik+ ,ea*   
,f$]al f9ancial in/itutions regulatory  
ag5cy & ins]t+ ! foll[+3  7a7 ,real     
e/ate appraisals 9 connection ) f$]ally 
relat$ transactions ,ea* ,f$]al f9ancial
 in/itutions regulatory ag5cy  2  7#b7  

by /rik+ ,ea* su* ag5cy or in/rum5tality
 & ins]t+ ! foll[+3  7b7 ,additional    
/&>ds ,ea* su* ag5cy or in/rum5tality   
describ$ "u subsection 7a7  2 &  7#c7 by
 add+ at ! end ! foll[+ new subsection3 
7c7 ,exception = c]ta9 high]-,risk      
mortgage loans ,/&>ds prescrib$ "u ?is  
section %all n apply to a real e/ate    
appraisal or evaluation conduct$ 9      
connection ) a high]-risk mortgage loan 
7z def9$ 9 section #abi;,h7f7 ( ! ,tru? 
9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afci;h7f777
 ( #bej1jjj or less if su* loan appe>s  
on ! balance %eet ( ! cr$itor ( su* loan
 = a p]iod ( n less ?an #c ye>s4  4  #f4
 ,%ort =m call report & exam9ation cycle
  7a7 ,9 g5]al ,section #g7;a7 ( !      
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahag7;a77 is am5d$ by add+ at
 ! end ! foll[+3  7#ab7 ,%ort =m report+
  7,a7 ,9 g5]al ,! appropriate ,f$]al   
bank+ ag5cies %all issue regulations    
all[+ = a r$uc$ report+ requirem5t =    
cov]$ depository in/itutions :5 mak+ !  
fir/ & ?ird report ( condition = a ye>1 

z requir$ pursuant to p>agraph 7#c74    
7,b7 ,cov]$ depository in/itution def9$ 
,= purposes ( ?is p>agraph1 ! t]m cov]$ 
depository in/itution means an insur$   
depository in/itution t-- 7i7 has a     
,,camels composite rat+ ( #a or #b "u ! 
,uni=m ,f9ancial ,in/itutions ,rat+     
,sy/em 7or an equival5t rat+ "u a       
comp>able rat+ sy/em7 z ( ! mo/ rec5t   
exam9ation ( su* in/itution2 &  7ii7    
satisfies su* o!r crit]ia z !           
appropriate ,f$]al bank+ ag5cies det]m9e
 appropriate4  4  7b7 ,long] exam9ation 
cycle ,section #aj7;d7 ( ! ,f$]al       
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahbj7;d77 is am5d$--  7#a7 by          
r$esignat+ p>agraphs 7#e7 ?r\gh 7#aj7 z 
p>agraphs 7#f7 ?r\gh 7#aa71             
respectively2  7#b7 9 ea* ( p>agraphs   
7#h7 & 7#i71 z s r$esignat$1 by /rik+   
p>agraph 7#f7 & ins]t+ p>agraph 7#g72 & 
7#c7 by ins]t+ aft] p>agraph 7#d7 !     
foll[+3  7#e7 #bd-mon? rule = c]ta9     
in/itutions ,) respect to an insur$     
depository in/itution & not)/&+ p>agraph

 7#d71 p>agraphs 7#a71 7#b71 & 7#c7 %all
 apply ) #bd-mon? sub/itut$ = #ab-mon?  
if ! insur$ depository in/itution--     
7,a7 meets ! requirem5ts "u subp>agraphs
 7,b7 ?r\gh 7,d7 ( p>agraph 7#d72 &     
7,b7 is a cov]$ depository in/itution1 z
 def9$ "u section #g7;a77#ab77;,b74  4  
#g4 ,coord9ation among f9ancial         
in/itutions ,*apt] #ec ( title #ca1     
,unit$ ,/ates ,code1 is am5d$-- 7#a7 by 
ins]t+ aft] section #eccb ! foll[+ new  
section3  #eccc4 ,coord9ation among     
f9ancial in/itutions  7a7 ,9 g5]al ,9 ! 
case ( an entry receiv$ via an automat$ 
cle>+ h\se1 no receiv+ depository       
f9ancial in/itution %all be requir$ to  
v]ify t ! entry is n a prohibit$        
transaction1 if ! orig9at+ depository   
f9ancial in/itution has w>rant$1        
pursuant to ! automat$ cle>+ h\se rules 
gov]n+ su* entry or o!rwise1 t !        
orig9at+ depository f9ancial in/itution 
has compli$ ) ! sanctions programs      
adm9i/]$ by ! ,(fice ( ,=eign ,assets   
,control 9 connection ) su* entry4  7b7 

,def9itions ,= purposes ( ?is section3  
7#a7 ,automat$ cle>+ h\se ,! t]m        
automat$ cle>+ h\se means a funds       
transf] sy/em gov]n$ by rules :i*       
provide = ! int]bank cle>+ ( electronic 
entries = p>ticipat+ depository f9ancial
 in/itutions4  7#b7 ,depository f9ancial
 in/itution ,! t]m depository f9ancial  
in/itution means-- 7,a7 any insur$      
depository in/itution1 z su* t]m is     
def9$ "u section #c ( ! ,f$]al ,deposit 
,insurance ,act 7#ab ,u4,s4,c4 #ahac72  
7,b7 any depository in/itution :i* is   
eligible to apply to become an insur$   
depository in/itution "u section #e ( ! 
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahae72  7,c7 any insur$ cr$it
 union1 z def9$ 9 section #aja ( !      
,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4
 #ageb72 &  7,d7 any cr$it union :i* is 
eligible to apply to become an insur$   
cr$it union pursuant to section #bja ( !
 ,f$]al ,cr$it ,union ,act 7#ab         
,u4,s4,c4 #agha74  7#c7 ,entry ,! t]m   
entry means an ord] to reque/ = !       

transf] ( funds ?r\gh an automat$ cle>+ 
h\se4  7#d7 ,orig9at+ depository        
f9ancial in/itution ,! t]m orig9at+     
depository f9ancial in/itution means a  
depository f9ancial in/itution t        
transmits entries via an automat$ cle>+ 
h\se = transmittal to a receiv+         
depository f9ancial in/itution4  7#e7   
,prohibit$ transaction ,! t]m prohibit$ 
transaction means a funds transf]       
orig9at$ on behalf ( a p]son to or f :om
 funds transf]s are re/rict$ by a       
sanctions program adm9i/]$ by ! ,(fice (
 ,=eign ,assets ,control1 includ+ p]sons
 appe>+ on ! li/ ( specially designat$  
nationals & block$ p]sons ma9ta9$ by !  
,(fice ( ,=eign ,assets ,control4  7#f7 
,receiv+ depository f9ancial in/itution 
,! t]m receiv+ depository f9ancial      
in/itution means a depository f9ancial  
in/itution t receives entries via an    
automat$ cle>+ h\se f an orig9at+       
depository f9ancial in/itution = debit  
or cr$it to ! acc\nts ( its cu/om]s4  2 
&  7#b7 9 ! table ( cont5ts = su* *apt] 

by ins]t+ aft] ! item relat+ to section 
#eccb ! foll[+ new item3  #eccc4        
,coord9ation among f9ancial in/itutions4
  4  #h4 ,*anges requir$ to small bank  
hold+ company policy /atem5t on         
assessm5t ( f9ancial & manag]ial factors
  ,be=e ! end ( ! #f-mon? p]iod beg9n+  
on ! date ( ! enactm5t ( ?is ,act1 !    
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em %all revise ! ,small ,bank ,hold+
 ,company ,policy ,/atem5t on ,assessm5t
 ( ,f9ancial & ,manag]ial ,factors 7#ab 
,c4,f4,r4 "p #bbe--;app5dix ,c7 to raise
 ! consolidat$ asset ?re%old "u su*     
policy /atem5t f #a1jjj1jjj1jjj 7z      
adju/$ by ,public ,law #aac-bej7 to     
#e1jjj1jjj1jjj4  #i4 ,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$itors t are depository 
in/itutions  7,a7 ,9 g5]al ,a cr$itor t 
is a 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 ( a          
depository in/itution t transf]s a loan 
orig9at$ by t in/itution to ano!r       
depository in/itution by reason ( !     
bankruptcy or failure ( ! orig9at+      
depository in/itution or ! pur*ase ( !  
orig9at+ depository in/itution1 !       
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$itor ( su* loan is a depository      
in/itution & has in=m$ ! 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$]al     
bank+ ag5cies1 ! ,bureau1 & ! ,national 
,cr$it ,union ,adm9i/ration4  7,b7      
,depository in/itution ,! t]m depository
 in/itution has ! mean+ giv5 t t]m "u   
section #ai7;b77#a7 ( ! ,f$]al ,res]ve  
,act 7#ab ,u4,s4,c4 #eje7;b77#a774  7,c7
 ,f$]al bank+ ag5cies ,! t]m ,f$]al     
bank+ ag5cies has ! mean+ giv5 t t]m "u 
section #c ( ! ,f$]al ,deposit          
,insurance ,act4  4  7b7 ,rule (        
con/ruction ,no?+ 9 ! am5dm5t made by   
?is section 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