H.R. 3971 — Reported in House

IB Union Calendar No. 319 115th CONGRESS 1st Session H. R. 3971 [Report No. 115–432] IN THE HOUSE OF REPRESENTATIVES October 5, 2017 Ms. Tenney (for herself, Mr. Sherman, and Mr. Williams) introduced the following bill; which was referred to the Committee on Financial Services November 30, 2017 Additional sponsors: Mr. Loebsack and Mr. Sessions November 30, 2017 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed A BILL To amend the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974 to modify the requirements for community financial institutions with respect to certain rules relating to mortgage loans, and for other purposes. 1. Short title This Act may be cited as the Community Institution Mortgage Relief Act of 2017. 2. Community financial institution mortgage relief (a) Exemption from escrow requirements for loans held by smaller creditors Section 129D of the Truth in Lending Act (15 U.S.C. 1639d) is amended— (1) by adding at the end the following: (k) Safe harbor for loans held by smaller creditors (1) In general A creditor shall not be in violation of subsection (a) with respect to a loan if— (A) the creditor has consolidated assets of $25,000,000,000 or less; and (B) the creditor holds the loan on the balance sheet of the creditor for the 3-year period beginning on the date of the origination of the loan. (2) Exception for certain transfers In the case of a creditor that transfers a loan to another person by reason of the bankruptcy or failure of the creditor, the purchase of the creditor, or a supervisory act or recommendation from a State or Federal regulator, the creditor shall be deemed to have complied with the requirement under paragraph (1)(B). ; and (2) by striking the term Board each place such term appears and inserting Bureau. (b) Modification to exemption for small servicers of mortgage loans Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the following: (n) Small Servicer Exemption The Bureau shall, by regulation, provide exemptions to, or adjustments for, the provisions of this section for a servicer that annually services 30,000 or fewer mortgage loans, in order to reduce regulatory burdens while appropriately balancing consumer protections. . November 30, 2017 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed