,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #bacc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #be1 #bjag,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 ( #bjag or !   
,,cle>r ,act ( #bjag4  #b4 ,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 7& con=m+ !    
m>g9s accord+ly72  7#b7 by /rik+ ,!     
,bo>d & ins]t+ ! foll[+3  7#a7 ,9 g5]al 
,! ,bureau  2 &  7#c7 by add+ at ! end !

 foll[+ new p>agraph3  7#b7 ,treatm5t ( 
loans held by small] cr$itors ,! ,bureau
 %all1 by regulation1 exempt f !        
requirem5ts ( subsection 7a7 any loan   
secur$ by a fir/ li5 on a consum]'s     
pr9cipal dwell+1 if su* loan is held by 
a cr$itor ) assets ( #ej1jjj1jjj1jjj or 
less4  4  7b7 ,modification to exemption
 = small s]vic]s ( mortgage loans       
,section #f ( ! ,real ,e/ate ,settlem5t 
,proc$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 #cj1jjj or few] mortgage
 loans1 9 ord] to r$uce regulatory      
burd5s :ile appropriately balanc+       
consum] protections4  4  #c4 ,access to 
,af=dable ,mortgages  7a7 ,exemption f  
prop]ty appraisal requirem5ts = l[]-,co/
 dwell+s ,section #abi;,h ( ! ,tru? 9   
,l5d+ ,act 7#ae ,u4,s4,c4 #afci;h7 is   
am5d$ by add+ at ! end ! foll[+ new     

subsection3  7g7 ,exemption = c]ta9     
mortgages ,! ,bureau1 ! ,comptroll] ( ! 
,curr5cy1 ! ,f$]al ,deposit ,insurance  
,corporation1 ! ,national ,cr$it ,union 
,adm9i/ration ,bo>d1 & ! ,f$]al ,h\s+   
,f9ance ,ag5cy %all exempt1 by rule1 a  
mortgage loan ( #bej1jjj or less f !    
requirem5ts ( ?is section if su* loan   
appe>s on ! balance %eet ( ! cr$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 & ! ,resolution ,tru/ ,corporation
 & ins]t+ ! foll[+3  7a7 ,real e/ate    
appraisals 9 connection ) f$]ally relat$

 transactions ,ea* ,f$]al f9ancial      
in/itutions regulatory ag5cy  2  7#b7 by
 /rik+ ea* su* ag5cy or in/rum5tality & 
ins]t+ ea* su* ag5cy2  7#c7 9 ! flu%    
left matt] foll[+ p>agraph 7#c71 by     
/rik+ ,ea* su* ag5cy or in/rum5tality & 
ins]t+ ! foll[+3  7b7 ,additional /&>ds 
,ea* su* ag5cy describ$ "u subsection   
7a7  2 &  7#d7 by add+ at ! end ! foll[+
 new subsection3  7c7 ,exemption = c]ta9
 mortgage loans ,ea* su* ag5cy describ$ 
"u subsection 7a7 %all exempt1 by rule1 
a real e/ate appraisal or evaluation    
conduct$ 9 connection ) a mortgage loan 
( #bej1jjj or less f ! /&>ds prescrib$  
"u ?is section1 if su* loan appe>s on ! 
balance %eet ( ! cr$itor ( su* loan = a 
p]iod ( n less ?an #c ye>s4  4  #d4     
,*anges requir$ 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               
#aj1jjj1jjj1jjj4  #e4 ,capital          
requirem5ts = mortgage s]vic+ assets    
7a7 ,repeal ( ,basel ,,iii regulations  
,n lat] ?an ! end ( ! #fj-;day p]iod    
beg9n+ on ! date ( ! enactm5t ( ?is     
,act1 ea* ,f$]al bank+ ag5cy %all--     
7#a7 repeal all regulations issu$ by !  
ag5cy to implem5t ! ,basel ,,iii capital
 requirem5ts or ! ,,ncua capital        
requirem5ts1 z applicable1 on mortgage  
s]vic+ assets2 &  7#b7 revive or re/ore 
any regulation repeal$ or revis$ by a   
regulation describ$ "u p>agraph 7#a74   
7b7 ,new regulations ,be=e any f9al     
regulation is issu$ by a ,f$]al bank+   
ag5cy ) respect to capital requirem5ts  
on mortgage s]vic+ assets1 ! ,f$]al     
bank+ ag5cy %all--  7#a7 issue a new    
propos$ rule = public comm5t2  7#b7     

submit to ,congress a notification ( !  
propos$ rule & an explanation = !       
propos$ rule2 &  7#c7 consid]-- 7,a7 !  
hi/ory ( ! m>ket = mortgage s]vic+      
assets1 includ+ p>ticul>ly ! m>ket = su*
 assets 9 ! p]iod ( ! f9ancial crisis2  
7,b7 ! impact on consum] access to      
mortgage l5d+ & mortgage s]vic+2 &  7,c7
 competition 9 ! mortgage s]vic+ m>ket1 
includ+ analysis ( ! role community &   
mid-siz$ f9ancial in/itutions play 9 !  
mortgage s]vic+ m>ket4  7c7 ,def9itions 
,= purposes ( ?is section3 7#a7 ,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#b7 ,f$]al 
bank+ ag5cy ,! t]m ,f$]al bank+ ag5cy   
means ! ,bo>d ( ,gov]nors ( ! ,f$]al    
,res]ve ,sy/em1 ! ,(fice ( ! ,comptroll]
 ( ! ,curr5cy1 ! ,f$]al ,deposit        
,insurance ,corporation1 or ! ,national 

,cr$it ,union ,adm9i/ration4  7#c7      
,mortgage s]vic+ asset ,! t]m mortgage  
s]vic+ asset means ^? assets t result f 
contracts to s]vice loans secur$ by real
 e/ate1 :]e su* loans are own$ by ?ird  
p>ties4  7#d7 ,,ncua capital requirem5ts
 ,! t]m ,,ncua capital requirem5ts means
 ! f9al rule ( ! ,national ,cr$it ,union
 ,adm9i/ration entitl$ ,risk-,bas$      
,capital 7#hj ,f$4 ,reg4 #fffbf 7,oct4  
#bi1 #bjae774  #f4 ,bureau ,au?ority    
,ov] ,unfair & ,deceptive ,acts or      
,practices  7a7 ,9 g5]al ,section #ajca 
( ! ,consum] ,f9ancial ,protection ,act 
( #bjaj 7#ab ,u4,s4,c4 #eeca7 is am5d$--
  7#a7 9 ! head+ ( su* section1 by /rik+
 1 deceptive1 or abusive & ins]t+ or    
deceptive2  7#b7 9 subsection 7a7--     
7,a7 by /rik+ 1 deceptive1 or abusive & 
ins]t+ or deceptive2 &  7,b7 by add+ at 
! end ! foll[+3 ,! ,bureau may n take   
any action describ$ "u ?is subsection   
aga9/ a cov]$ p]son or s]vice provid]   
unless ! ,bureau fir/ consults ! cov]$  
p]son or s]vice provid]'s prim>y        

f9ancial regulatory ag5cy1 if any42     
7#c7 9 subsection 7b7-- 7,a7 by /rik+ 1 
deceptive1 or abusive & ins]t+ or       
deceptive2 &  7,b7 by ins]t+ at ! end ! 
foll[+3 ,9 prescrib+ any rule "u ?is    
subsection1 ! ,bureau %all comply ) !   
requirem5ts ( section #ah ( ! ,f$]al    
,trade ,commission ,act 7#ae ,u4,s4,c4  
#eg;a7 applicable to ! ,f$]al ,trade    
,commission :5 ! ,commission prescribes 
rules & g5]al /atem5ts ( policy "u t    
section ) respect to unfair or deceptive
 acts or practices 9 or affect+         
comm]ce42  7#d7 by /rik+ subsection 7d72
 &  7#e7 by r$esignat+ subsections 7e7 &
 7f7 z subsections 7d7 & 7e71           
respectively4  7b7 ,con=m+ am5dm5ts     
7#a7 ,consum] f9ancial protection act ( 
#bjaj ,! ,consum] ,f9ancial ,protection 
,act ( #bjaj 7#ab ,u4,s4,c4 #edha et    
seq47 is am5d$-- 7,a7 by /rik+ 1        
deceptive1 & abusive ea* place su* t]m  
appe>s & ins]t+ & deceptive2 &  7,b7 by 
/rik+ 1 deceptive1 or abusive ea* place 
su* t]m appe>s & ins]t+ or deceptive4   

7#b7 ,dodd-frank wall /reet re=m &      
consum] protection act ,! table (       
cont5ts 9 section #a7;b7 ( !            
,dodd-,frank ,wall ,/reet ,re=m &       
,consum] ,protection ,act is am5d$1 9 ! 
item relat+ to section #ajca1 by /rik+ 1
 deceptive1 or abusive & ins]t+ or      
deceptive4  7#c7 ,omnibus appropriations
 act1 #bjji ,section #fbf7;a77#a7 ( !   
,omnibus ,appropriations ,act1 #bjji    
7#ae ,u4,s4,c4 #afch note7 is am5d$ by  
/rik+ 1 deceptive1 or abusive & ins]t+  
or deceptive4  #g4 ,am5dm5ts to ! ,equal
 ,cr$it ,opportunity ,act & ! ,fair     
,h\s+ ,act to require int5t to          
discrim9ate  7a7 ,am5dm5t to ,equal     
,cr$it ,opportunity ,act ,subsection 7a7
 ( section #gja ( ! ,equal ,cr$it       
,opportunity ,act 7#ae ,u4,s4,c4        
#afia7;a77 is am5d$ by ins]t+           
int5tionally be=e discrim9ate4  7b7     
,am5dm5t to ,fair ,h\s+ ,act ,! ,fair   
,h\s+ ,act 7#db ,u4,s4,c4 #cfja et seq47
 is am5d$-- 7#a7 9 section #hjd--  7,a7 
by ins]t+ int5tionally be=e discrim9ate 

ea* place su* t]m appe>s2  7,b7 9       
subsection 7a71 by ins]t+ int5tionally  
be=e refuse2  7,c7 9 subsection 7c7--   
7i7 by ins]t+ int5tionally be=e make2 & 
7ii7 by ins]t+ int5tionally be=e cause2 
7,d7 9 subsection 7d71 by ins]t+        
int5tionally be=e repres5t2 &  7,e7 9   
subsection 7e71 by /rik+ induce or      
attempt & ins]t+ int5tionally induce or 
int5tionally attempt2  7#b7 9 section   
#hje1 by ins]t+ int5tionally be=e       
discrim9ate2 &  7#c7 9 section #hjf1 by 
ins]t+ int5tionally be=e discrim9ate4   
#h4 ,am5dm5ts to ! ,home ,mortgage      
,disclosure ,act ( #aige  7a7 ,loan     
volume ?re%old ,section #cjd7;i7 ( !    
,home ,mortgage ,disclosure ,act ( #aige
 7#ab ,u4,s4,c4 #bhjc7;i77 is am5d$ to  
read z foll[s3  7i7 ,exemption ,f ,c]ta9
 ,disclosure ,requirem5ts  7#a7 ,9 g5]al
 ,! requirem5ts ( subsections 7b77#d71  
7b77#e71 & 7b77#f7 %all n apply )       
respect to any depository in/itution    
describ$ 9 section #cjc7b77;,a74  7#b7  
,clos$-end mortgage loans ,) respect to 

a depository in/itution1 ! requirem5ts (
 subsections 7a7 & 7b7 %all n apply )   
respect to clos$-end mortgage loans if !
 depository in/itution orig9at$ less ?an
 #a1jjj clos$-end mortgage loans 9 ea* (
 ! #b prec$+ cal5d> ye>s4  7#c7 ,op5-end
 l9es ( cr$it ,) respect to a depository
 in/itution1 ! requirem5ts ( subsections
 7a7 & 7b7 %all n apply ) respect to    
op5-end l9es ( cr$it if ! depository    
in/itution orig9at$ less ?an #b1jjj     
op5-end l9es ( cr$it 9 ea* ( ! #b prec$+
 cal5d> ye>s4  4  7b7 ,data po9ts       
,section #cjd7;b7 ( ! ,home ,mortgage   
,disclosure ,act ( #aige 7#ab ,u4,s4,c4 
#bhjc7;b77 is am5d$-- 7#a7 by /rik+     
p>agraphs 7#e7 & 7#f72  7#b7 9 p>agraph 
7#c71 by ins]t+ & at ! end2 &  7#c7 9   
p>agraph 7#d71 by /rik+ age44  #i4      
,repeal ( small bus9ess loan collection 
data  7a7 ,repeal ,section #gjd;,b ( !  
,equal ,cr$it ,opportunity ,act 7#ae    
,u4,s4,c4 #afia;c-#b7 is repeal$4  7b7  
,cl]ical am5dm5t ,! table ( sections =  
title ,,vii ( ! ,consum] ,cr$it         

,protection ,act is am5d$ by /rik+ !    
item relat+ to section #gjd;,b4  #aj4   
,requirem5ts = deposit acc\nt t]m9ation 
reque/s & ord]s  7a7 ,t]m9ation reque/s 
or ord]s mu/ be mat]ial  7#a7 ,9 g5]al  
,an appropriate ,f$]al bank+ ag5cy may n
 =mally or in=mally reque/ or ord] a    
depository in/itution to t]m9ate a      
specific cu/om] acc\nt or gr\p ( cu/om] 
acc\nts or to o!rwise re/rict or        
disc\rage a depository in/itution f     
ent]+ into or ma9ta9+ a bank+           
relation%ip ) a specific cu/om] or gr\p 
( cu/om]s unless--  7,a7 ! ag5cy has a  
mat]ial reason = su* reque/ or ord]2 &  
7,b7 su* reason is n bas$ solely on     
reputation risk4  7#b7 ,treatm5t (      
national security ?reats ,if an         
appropriate ,f$]al bank+ ag5cy believes 
a specific cu/om] or gr\p ( cu/om]s is1 
or is act+ z a conduit =1 an entity     
:i*--  7,a7 poses a ?reat to national   
security2  7,b7 is involv$ 9 t]rori/    
f9anc+2  7,c7 is an ag5cy ( ! gov]nm5t (
 ,iran1 ,nor? ,korea1 ,syria1 or any    

c\ntry li/$ f "t to "t on ! ,/ate       
,sponsors ( ,t]rorism li/2  7,d7 is     
locat$ 91 or is subject to !            
jurisdiction (1 any c\ntry specifi$ 9   
subp>agraph 7,c72 or  7,e7 does bus9ess 
) any entity describ$ 9 subp>agraph 7,c7
 or 7,d71 unless ! appropriate ,f$]al   
bank+ ag5cy det]m9es t ! cu/om] or gr\p 
( cu/om]s has us$ due dilig5ce to avoid 
do+ bus9ess ) any entity describ$ 9     
subp>agraph 7,c7 or 7,d71  su* belief   
%all satisfy ! requirem5t "u p>agraph   
7#a74  7b7 ,notice requirem5t  7#a7 ,9  
g5]al ,if an appropriate ,f$]al bank+   
ag5cy =mally or in=mally reque/s or     
ord]s a depository in/itution to t]m9ate
 a specific cu/om] acc\nt or a gr\p (   
cu/om] acc\nts1 ! ag5cy %all--  7,a7    
provide su* reque/ or ord] to !         
in/itution 9 writ+2 &  7,b7 accompany   
su* reque/ or ord] ) a writt5           
ju/ification = :y su* t]m9ation is ne$$1
 includ+ any specific laws or           
regulations ! ag5cy believes are be+    
violat$ by ! cu/om] or gr\p ( cu/om]s1  

if any4  7#b7 ,ju/ification requirem5t  
,a ju/ification describ$ "u p>agraph    
7#a77;,b7 may n be bas$ solely on !     
reputation risk to ! depository         
in/itution4  7c7 ,cu/om] notice  7#a7   
,notice n requir$ ,no?+ 9 ?is section   
%all be con/ru$ z requir+ a depository  
in/itution or an appropriate ,f$]al     
bank+ ag5cy to in=m a cu/om] or cu/om]s 
( ! ju/ification = ! cu/om]'s acc\nt    
t]m9ation describ$ "u subsection 7b74   
7#b7 ,notice prohibit$ 9 cases (        
national security ,if an appropriate    
,f$]al bank+ ag5cy reque/s or ord]s a   
depository in/itution to t]m9ate a      
specific cu/om] acc\nt or a gr\p (      
cu/om] acc\nts bas$ on a belief t !     
cu/om] or cu/om]s pose a ?reat to       
national security1 nei!r ! depository   
in/itution nor ! appropriate ,f$]al     
bank+ ag5cy may in=m ! cu/om] or cu/om]s
 ( ! ju/ification = ! cu/om]'s acc\nt   
t]m9ation4  7d7 ,report+ requirem5t ,ea*
 appropriate ,f$]al bank+ ag5cy %all    
issue an annual report to ! ,congress   

/at+-- 7#a7 ! aggregate numb] ( specific
 cu/om] acc\nts t ! ag5cy reque/$ or    
ord]$ a depository in/itution to t]m9ate
 dur+ ! previ\s ye>2 &  7#b7 ! legal    
au?ority on :i* ! ag5cy reli$ 9 mak+ su*
 reque/s & ord]s & ! frequ5cy on :i* !  
ag5cy reli$ on ea* su* au?ority4  7e7   
,def9itions ,= purposes ( ?is section3  
7#a7 ,appropriate f$]al bank+ ag5cy ,!  
t]m appropriate ,f$]al bank+ ag5cy      
means--  7,a7 ! appropriate ,f$]al bank+
 ag5cy1 z def9$ "u section #c ( ! ,f$]al
 ,deposit ,insurance ,act 7#ab ,u4,s4,c4
 #ahac72 &  7,b7 ! ,national ,cr$it     
,union ,adm9i/ration1 9 ! case ( an     
insur$ cr$it union4  7#b7 ,depository   
in/itution ,! t]m depository in/itution 
means--  7,a7 a depository in/itution1 z
 def9$ "u section #c ( ! ,f$]al ,deposit
 ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 
&  7,b7 an insur$ cr$it union4  #aa4    
,am5dm5ts to civil p5alties "u ,,firrea 
,section #iea ( ! ,f9ancial ,in/itutions
 ,re=m1 ,recov]y1 & ,en=cem5t ,act (    
#aihi 7#ab ,u4,s4,c4 #ahcc;a7 is am5d$--

  7#a7 9 subsection 7c77#b71 by /rik+   
affect+ a f$]ally insur$ f9ancial       
in/itution & ins]t+ aga9/ a f$]ally     
insur$ f9ancial in/itution or by a      
f$]ally insur$ f9ancial in/itution aga9/
 an unaffiliat$ ?ird p]son2 &  7#b7 9   
subsection 7g7-- 7,a7 9 ! head]1 by     
/rik+ ,subpo5as & ins]t+ ,inve/igations2
 &  7,b7 by am5d+ p>agraph 7#a77;,c7 to 
read z foll[s3  7,c7 summon witnesses & 
require ! production ( any books1 pap]s1
 correspond5ce1 memor&a1 or o!r records 
:i* ! ,attorney ,g5]al deems relevant or
 mat]ial to ! inquiry1 if ! ,attorney   
,g5]al--  7i7 reque/s a c\rt ord] f a   
c\rt ( compet5t jurisdiction = su*      
actions & (f]s specific & articulable   
facts %[+ t !re are reasonable gr\nds to
 believe t ! in=mation or te/imony s\ght
 is relevant & mat]ial = conduct+ an    
inve/igation "u ?is section2 or  7ii7   
ei!r p]sonally or ?r\gh delegation no   
l[] ?an ! ,deputy ,attorney ,g5]al1     
issues & signs a subpo5a = su* actions &
 su* subpo5a is support$ by specific &  

articulable facts %[+ t !re are         
reasonable gr\nds to believe t !        
in=mation or te/imony s\ght is relevant 
= conduct+ an inve/igation "u ?is       
section4  4  #ab4 ,waiv] ( wait+ p]iod  
,n lat] ?an #abj days aft] ! date ( !   
enactm5t ( ?is ,act1 ! ,bureau (        
,consum] ,f9ancial ,protection %all     
issue regulations e/abli%+ a process to 
waive ! requirem5t relat+ to ! tim+ (   
provid+ clos+ disclosures = mortgage    
loans describ$ "u section               
#ajbf4ai7;f77#a77;ii7 ( title #ab1 ,code
 ( ,f$]al ,regulations4  #ac4 ,limit on 
,bureau ,sup]vision ,! ,consum]         
,f9ancial ,protection ,act ( #bjaj 7#ab 
,u4,s4,c4 #edha et seq47 is am5d$-- 7#a7
 9 section #ajbe7;a71 by /rik+          
#aj1jjj1jjj1jjj ea* place su* t]m appe>s
 & ins]t+ #ej1jjj1jjj1jjj2 &  7#b7 9    
section #ajbf7;a71 by /rik+             
#aj1jjj1jjj1jjj ea* place su* t]m appe>s
 & ins]t+ #ej1jjj1jjj1jjj4  #ad4 ,limit$
 exception = reciprocal deposits  7a7 ,9
 g5]al ,section #bi ( ! ,f$]al ,deposit 

,insurance ,act 7#ab ,u4,s4,c4 #ahca;f7 
is am5d$ by add+ at ! end ! foll[+ new  
subsection3  7a7 ,limit$ exception =    
reciprocal deposits  7#a7 ,9 g5]al      
,reciprocal deposits ( an insur$        
depository in/itution %all n be consid]$
 to be funds obta9$1 directly or        
indirectly1 by or ?r\gh a deposit brok] 
if--  7,a7 :5 ! in/itution 0 mo/ rec5tly
 exam9$1 its composite condition 0 f\nd 
to be out/&+ or good2 or  7,b7 ! total  
am\nt ( su* reciprocal deposits does n  
exce$ ! less] (-- 7i7 #aj1jjj1jjj1jjj2  
or  7ii7 an am\nt equal to #bj p]c5t ( !
 total liabilities ( ! insur$ depository
 in/itution4  7#b7 ,rule ( con/ruction  
,no?+ 9 ?is subsection %all be con/ru$  
to limit ! au?ority ( ! ,corporation to 
require1 on a case-by-case basis1 t an  
ag5t in/itution t is less ?an adequately
 capitaliz$ 7z def9$ 9 section          
#ch7;b77#a77;,b77 n accept p>ticul>     
types ( deposits ^u f9d+ t ! acceptance 
( su* deposits con/itutes an unsafe or  
uns\nd practice ) respect to su*        

in/itution4  7#c7 ,def9itions ,9 ?is    
subsection3 7,a7 ,ag5t in/itution ,! t]m
 ag5t in/itution means an insur$        
depository in/itution t places a cov]$  
deposit ?r\gh a deposit placem5t network
 at o!r insur$ depository in/itutions 9 
am\nts t are less ?an or equal to ! /&>d
 maximum deposit insurance am\nt1       
specify+ ! int]e/ rate to be paid = su* 
am\nts1 :]e ! ag5t in/itution--  7i7 is 
well capitaliz$ 7z def9$ 9 section      
#ch7;b77#a77;,a77 or has obta9$ a waiv] 
pursuant to subsection 7c7 ( ?is        
section2 or  7ii7 does n receive an     
am\nt ( reciprocal deposits t causes !  
total am\nt ( reciprocal deposits held  
by ! ag5t in/itution to be great] ?an ! 
av]age ( ! total am\nt ( reciprocal     
deposits held by ! ag5t in/itution on ! 
la/ day ( ea* ( ! #d cal5d> qu>t]s      
prec$+ ! cal5d> qu>t] 9 :i* ! ag5t      
in/itution 0 det]m9$ to be n well       
capitaliz$4  7,b7 ,cov]$ deposit ,! t]m 
cov]$ deposit means a deposit t-- 7i7 is
 submitt$ = placem5t ?r\gh a deposit    

placem5t network by an ag5t in/itution2 
&  7ii7 does n consi/ ( funds t 7 obta9$
 = ! ag5t in/itution1 directly or       
indirectly1 by or ?r\gh a deposit brok] 
be=e submission = placem5t ?r\gh a      
deposit placem5t network4  7,c7 ,deposit
 placem5t network ,! t]m deposit        
placem5t network means a network 9 :i*  
an insur$ depository in/itution         
p>ticipates1 toge!r ) o!r insur$        
depository in/itutions1 = ! process+ &  
receipt ( reciprocal deposits4  7,d7    
,network memb] bank ,! t]m network memb]
 bank means an insur$ depository        
in/itution t is a memb] ( a deposit     
placem5t network4  7,e7 ,reciprocal     
deposits ,! t]m reciprocal deposits     
means deposits receiv$ by an ag5t       
in/itution ?r\gh a deposit placem5t     
network ) ! same maturity 7if any7 & 9 !
 same aggregate am\nt z cov]$ deposits  
plac$ by ! ag5t in/itution 9 o!r network
 memb] banks4  4  7b7 ,applicability    
,no?+ 9 ?is ,act %all be con/ru$ to     
limit ! application ( any provision ( ! 

,f$]al ,deposit ,insurance ,act1 o!r ?an
 section #bi ( su* ,act 7#ab ,u4,s4,c4  
#ahca;f71 to an insur$ depository       
in/itution 7z def9$ 9 section #c7;c7 (  
su* ,act 7#ab ,u4,s4,c4 #ahac7;c7774    
#ae4 ,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 ,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 
#af4 ,am5dm5ts to ability to pay        
requirem5ts = mortgage loans ,section   
#abi;,c7b77#c7 ( ! ,tru? 9 ,l5d+ ,act   
7#ae ,u4,s4,c4 #afci;,c7b77#c77 is      

am5d$-- 7#a7 by am5d+ subp>agraph 7,a7  
to read z foll[s3  7,a7 ,9 g5]al  7i7   
,bureau regulations ,! ,bureau %all     
prescribe regulations to c>ry out !     
purposes ( ?is subsection1 except t !   
,bureau may n prescribe any regulation t
 addresses modifies any provision (     
p>agraph 7#b77;,a77iii71 or t addresses 
modifies any rule promulgat$ by ! ,f$]al
 ,h\s+ ,f9ance ,ag5cy pursuant to       
subp>agraph 7,b77i74 ,any exi/+         
regulation ( ! ,bureau t addresses      
modifies p>agraph 7#b77;,a77iii7 %all h 
no =ce or effect z ( ! date ! ,f$]al    
,h\s+ ,f9ance ,ag5cy prescribes a rule  
pursuant to subp>agraph 7,b77i77,,ii74  
7ii7 ,f$]al ,h\s+ ,f9ance ,ag5cy        
regulations ,! ,f$]al ,h\s+ ,f9ance     
,ag5cy %all only prescribe regulations  
to c>ry out ! purposes ( p>agraph       
7#b77;,a77iii74 ,! ,f$]al ,h\s+ ,f9ance 
,ag5cy may n prescribe any regulation t 
addresses modifies any requirem5t "u    
clause 7i71 7ii71 7iv71 7v71 7vi71      
7vii71 7viii71 or 7ix7 ( p>agraph       

7#b77;,a71 or t addresses modifies any  
rule promulgat$ by ! ,bureau pursuant to
 clause 7i7 or subp>agraph 7,b77i77,i74 
2  7#b7 9 subp>agraph 7,b7-- 7,a7 by    
/rik+ ,! ,bo>d may & ins]t+  7,i7       
,bureau regulations ,! ,bureau may  4   
7,b7 9 subclause 7,i71 z designat$ by   
subp>agraph 7,a71 by /rik+ compliance ) 
su* actions & ins]t+ 1 except t !       
,bureau may n prescribe any regulation t
 violates ! provisions ( subp>agraph    
7,a74 ,! ,bureau may n elim9ate any     
requirem5t or add any new requirem5t "u 
clause 7i71 7ii71 7iv71 7v71 7vi71      
7vii71 7viii71 or 7ix7 ( p>agraph       
7#b77;,a7 unless x does s by prescrib+ a
 rule enact$ pursuant to ! proc$ures set
 =? 9 section #eec ( title #e1 ,unit$   
,/ates ,code2  7,c7 9 clause 7i71 by    
add+ at ! end ! foll[+ new subclause3   
7,,ii7 ,f$]al ,h\s+ ,f9ance ,ag5cy      
regulations ,n lat] ?an #ahj days aft] !
 date ( ! enactm5t ( ?is subclause1 !   
,f$]al ,h\s+ ,f9ance ,ag5cy %all        
prescribe regulations to c>ry out !     

requirem5ts ( p>agraph 7#b77;,a77iii74  
,not)/&+ ! proc$ures set =? 9 section   
#eec ( title #e1 ,unit$ ,/ates ,code1 ! 
,f$]al ,h\s+ ,f9ance ,ag5cy %all review 
its promulgat$ /&>ds "u su* p>agraph at 
lea/ annually1 & %all publi% any propos$
 adju/m5ts to su* /&>ds 9 ! ,f$]al      
,regi/]4 ,! ,f$]al ,h\s+ ,f9ance ,ag5cy 
may n elim9ate any requirem5t or add any
 new requirem5t "u p>agraph             
7#b77;,a77iii7 unless x does s by       
prescrib+ a rule enact$ pursuant to !   
proc$ures set =? 9 section #eec ( title 
#e1 ,unit$ ,/ates ,code4  2 &  7,d7 9   
clause 7ii71 by /rik+ ) ! ,bo>d & ins]t+
 ) ! ,bureau ) respect to ! requirem5ts 
"u clauses 7i71 7ii71 7iv71 7v71 7vi71  
7vii71 7viii71 & 7ix7 ( p>agraph        
7#b77;,a71 & 9 consultation ) ! ,f$]al  
,h\s+ ,f9ance ,ag5cy ) respect to !     
requirem5t "u p>agraph 7#b77;,a77iii74