S.Amdt. 2122

SA 2122. Mr. MENENDEZ submitted an amendment intended to be proposed
by him to the bill S. 2155, to promote economic growth, provide
tailored regulatory relief, and enhance consumer protections, and for
other purposes; which was ordered to lie on the table; as follows:

Strike section 101 and insert the following:

SEC. 101. COMMUNITY BANK AND CREDIT UNION PORTFOLIO LENDING.

Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C.
1639c(b)(2)) is amended by adding at the end the following:
``(F) Safe harbor.--
``(i) Definitions.--In this subparagraph:

``(I) Covered institution.--The term `covered institution'
means--

``(aa) an insured depository institution or an insured
credit union that--
``(AA) at the time of origination of the residential
mortgage loan, together with its affiliates, has less than
$2,000,000,000 in total consolidated assets; and
``(BB) during the calendar year preceding the time of
origination of the residential mortgage loan, originated not
more than 2,000 residential mortgage loans that were sold,
assigned, or otherwise transferred to another person or
subject to, at the time of consummation, a commitment to be
acquired by another person; or
``(bb) an insured depository institution or insured credit
union that, at the time of origination of the residential
mortgage loan--
``(AA) together with its affiliates, has more than
$2,000,000,000 and less than $10,000,000,000 in total
consolidated assets;
``(BB) is not considered a specialty bank, such as a bank
that offers only a narrow product line (including credit card
or motor vehicle loans) to a regional or broader market;
``(CC) engages in the basic activities of lending and
deposit taking as a significant percentage of total assets;
``(DD) has a limited geographic scope; and
``(EE) meets any other criteria as determined by the
Bureau, including restrictions on the volume of residential
mortgage loans sold, assigned, or otherwise transferred to
another person or subject to, at the time of consummation, a
commitment to be acquired by another person.

``(II) Insured credit union.--The term `insured credit
union' has the meaning given the term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
``(III) Insured depository institution.--The term `insured
depository institution' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).

``(ii) Safe harbor.--In this section--

``(I) the term `qualified mortgage', as defined in
subparagraph (A), includes any residential mortgage loan--

``(aa) that is originated by a covered institution and
continuously retained in portfolio by the covered
institution;
``(bb) that, except as provided in subparagraph (E), fully
amortizes over a term of not longer than 30 years;
``(cc) that complies with--
``(AA) the requirements of clauses (i), (ii), (iii), (iv),
(v), and (vii) of subparagraph (A); and
``(BB) any requirements consistent with the purposes
described in paragraph (3)(B)(i);
``(dd) for which the covered institution, at or before
consummation of the residential mortgage loan, takes into
account and verifies the monthly debt and income of the
consumer; and
``(ee) that is not considered a high-cost mortgage; and

``(II) a residential mortgage loan that meets the
requirements of subclause (I) shall be deemed to meet the
requirements of subsection (a) until the residential mortgage
loan no longer meets the requirements of subclause (I).''.

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