,i #aaeth ,,congress #ast ,session ,h4 ,r4 #aifd ,,in ,,the ,,house ,,of ,,representatives ,april #e1 #bjag,mr4 ,williams introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to preserve competition among mortgage lenders1 provide relief from unnecessary regulatory requirements on responsible community mortgage lenders1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,community ,mortgage ,lender ,regulatory ,act of #bjag4 #b4 ,findings ,congress finds the following3 7#a7 ,responsible community mortgage lenders engaged in traditional mortgage lending were not responsible for the recent mortgage crisis4 7#b7 ,responsible community mortgage lenders provide a valuable and critical service to consumers by1 among other things1 fulfilling the housing finance needs of the communities they serve and providing locally based alternative sources for mortgage financing4 7#c7 ,the activities and business practices of responsible community mortgage lenders do not pose a substantial risk to consumers1 and did not pose a substantial risk to consumers when the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act was enacted4 7#d7 ,responsible community mortgage lenders are subject to the oversight and control of various governmental authorities and nongovernmental actors1 including the ,bureau of ,consumer ,financial ,protection1 the ,department of ,housing and ,urban ,development1 the ,federal ,trade ,commission1 ,state supervisory regulators1 local government supervisory regulators1 mortgage loan investors1 warehouse lenders1 and various other authorities or entities4 ,as a result of this oversight and control1 the business practices and activities of responsible community mortgage lenders are safe1 transparent to the public and the government1 and do not pose a threat to consumers1 the public at large1 the ,united ,states financial markets1 or the ,united ,states economy in general4 7#e7 ,responsible community mortgage lenders are unreasonably burdened by increasing regulation geared to problems that they did not create and activities that they did not and do not engage in1 and therefore responsible community mortgage lenders are entitled to relief from certain provisions of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act and its attendant regulations1 including the regulations of the ,bureau of ,consumer ,financial ,protection4 7#f7 ,without relief many responsible community mortgage lenders will be driven from the market thus limiting the consumer's ability to choose a local lender for mortgage financing and dangerously consolidating the mortgage lending market into a smaller number of lenders4 7#g7 ,the preservation of responsible community mortgage lenders is critical to preserving competition and preventing increasing concentration in mortgage lending4 7#h7 ,the ,bureau of ,consumer ,financial ,protection should prioritize its resources and ability to carry out examinations by creating reasonable exclusions for smaller1 responsible mortgage lenders4 #c4 ,definitions ,section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha7 is amended by adding at the end the following3 7#cj7 ,community mortgage lender ,the term community mortgage lender means a lender-- 7,a7 who-- 7i7 in the case of a depository institution or credit union-- 7,i7 has assets of less than #b1jjj1jjj1jjj2 and 7,,ii7 originated fewer than #be1jjj mortgage loans in the preceding calendar year or originated a gross mortgage loan origination volume of less than #e1jjj1jjj1jjj in the preceding calendar year2 or 7ii7 in the case of a person other than a depository institution-- 7,i7 has net worth of less than #ej1jjj1jjj2 and 7,,ii7 originated fewer than #be1jjj mortgage loans in the preceding calendar year or originated a gross mortgage loan origination volume of less than #e1jjj1jjj1jjj in the preceding calendar year2 and 7,b7 had mortgage loan originations in the preceding three calendar years that consisted of #ie percent qualified mortgages when measured by either-- 7i7 the number of mortgage loans originated2 or 7ii7 the dollar volume of mortgage loans originated4 7#ca7 ,responsible community mortgage lender ,the term responsible community mortgage lender means a community mortgage lender who has not been found by a court of competent jurisdiction to have violated the law1 or been subject to a cease and desist order1 relating to its mortgage loan originations-- 7,a7 during the preceding two years2 or 7,b7 since such person began originating mortgage loans1 if such period is less than two years4 7#cb7 ,mortgage loan ,the term mortgage loan means a loan secured by a first lien on a #a-d unit family residence4 7#cc7 ,qualified mortgage ,the term qualified mortgage-- 7,a7 has the meaning given that term under section #abi;,c7b77#b7 of the ,truth in ,lending ,act2 and 7,b7 includes loans insured1 guaranteed1 or administered by-- 7i7 the ,department of ,housing and ,urban ,development1 with regard to mortgages insured under the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjg et seq472 7ii7 the ,department of ,veterans ,affairs1 with regard to a loan made or guaranteed by the ,secretary of ,veterans ,affairs2 7iii7 the ,department of ,agriculture1 with regard to loans guaranteed by the ,secretary of ,agriculture pursuant to section #ejb7;h7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb7;h772 and 7iv7 the ,rural ,housing ,service1 with regard to loans insured by the ,rural ,housing ,service4 4 #d4 ,prioritization of ,bureau examination and enforcement authority resources 7a7 ,in general ,the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha et seq47 is amended by inserting after section #ajca the following3 #ajca;,a4 ,exclusion relating to responsible community mortgage lenders 7a7 ,limitations of examination of responsible community mortgage lenders ,except as permitted in subsection 7b71 the ,bureau may not conduct any audit1 examination1 or investigation of1 or take an enforcement action against1 a responsible community mortgage lender4 7b7 ,referrals by other agencies 7#a7 ,in general ,the ,bureau may conduct an audit1 examination1 or investigation of1 or take an enforcement action against1 a responsible community mortgage lender if requested by-- 7,a7 a ,state or local regulator2 7,b7 a ,federal department or agency that guarantees mortgage loans originated1 held1 or serviced by such lender2 7,c7 the ,federal ,housing ,finance ,agency or entities supervised by such ,agency2 or 7,d7 any other ,federal department or agency that exercises supervisory authority over such lender4 7#b7 ,exception ,paragraph 7#a7 shall not apply to a responsible community mortgage lender that is a depository institution or a credit union4 7c7 ,rule of construction ,nothing in this section shall be construed as modifying1 limiting1 or superseding the operation of any provision of ,federal or ,state law1 or otherwise affecting the authority of any ,federal or ,state department or agency other than the ,bureau4 4 7b7 ,clerical amendment ,the table of contents under section #a7;b7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is amended by inserting after the item relating to section #ajca the following3 ,sec4 #ajca;,a4 ,exclusion relating to responsible community mortgage lenders4 4 #e4 ,streamlined vendor audits 7a7 ,in general ,the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha et seq471 as amended by section #d7;a71 is further amended by inserting after section #ajca;,a the following3 #ajca;,b4 ,vendor audit requirements relating to responsible community mortgage lenders 7a7 ,vendor audits ,the ,bureau and the appropriate ,federal banking agencies may only require a responsible community mortgage lender to perform an audit of a vendor or third-party contractor of the lender if the ,bureau or the appropriate ,federal banking agency1 as applicable1 has reasonable cause to believe that such vendor or third-party contractor is performing services for the lender in a manner that is causing the lender to violate the law4 4 7b7 ,clerical amendment ,the table of contents under section #a7;b7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 as amended by section #d7;b71 is further amended by inserting after the item relating to section #ajca;,a the following3 ,sec4 #ajca;,b4 ,vendor audit requirements relating to responsible community mortgage lenders4 4