S. 1349

CLEAR Relief Act of 2013

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II

113th CONGRESS

1st Session

S. 1349

IN THE SENATE OF THE UNITED STATES

July 24, 2013

Mr. Moran (for himself, Mr. Tester, and Mr. Kirk) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To enhance the ability of community financial institutions to foster economic growth and serve their communities, boost small businesses, increase individual savings, and for other purposes.

1.

Short title

This Act may be cited as the Community Lending Enhancement and Regulatory Relief Act of 2013 or the CLEAR Relief Act of 2013.

2.

Community bank exemption from annual management assessment of internal controls requirement of the Sarbanes-Oxley Act of 2002

Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is amended by adding at the end the following:

(d)

Community bank exemption

(1)

Definitions

In this subsection—

(A)

the term bank holding company has the same meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841);

(B)

the term insured depository institution has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and

(C)

the term savings and loan holding company has the same meaning as in section 10 of the Home Owners' Loan Act (12 U.S.C. 1467a).

(2)

In general

This section and the rules prescribed under this section shall not apply in any fiscal year to any bank holding company, savings and loan holding company, or insured depository institution which, as of the end of the preceding fiscal year, had total consolidated assets of $1,000,000,000 or less.

(3)

Adjustment of amount

The Commission shall annually adjust the dollar amount in paragraph (1) by an amount equal to the percentage increase, for the most recent year, in total assets held by all bank holding companies, savings and loan holding companies, and insured depository institutions, as reported by the Federal Deposit Insurance Corporation.

.

3.

Changes required to the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial factors

(a)

Definitions

In this section—

(1)

the term bank holding company has the same meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841);

(2)

the term Board means the Board of Governors of the Federal Reserve System;

(3)

the term financial institution means—

(A)

an insured depository institution;

(B)

a bank holding company;

(C)

a savings and loan holding company; and

(D)

a foreign bank subject to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.);

(4)

the term insured depository institution has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and

(5)

the term savings and loan holding company has the same meaning as in section 10 of the Home Owners' Loan Act (12 U.S.C. 1467a).

(b)

Federal Reserve Board

The policy statement of the Board in the Small Bank Holding Company Statement in part 225 of the appendix to title 12, Code of Federal Regulations (or any successor thereto), shall apply to each financial institution that—

(1)

is otherwise subject to that policy statement; and

(2)

has consolidated assets of less than $5,000,000,000.

4.

Escrow requirements relating to certain consumer credit transactions

Section 129D(c) of the Truth in Lending Act (15 U.S.C. 1639d(c)) is amended—

(1)

by redesignating paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), (C), and (D), respectively, and moving the margins 2 ems to the right;

(2)

by striking The Bureau and inserting the following:

(1)

In general

The Bureau

; and

(3)

by adding at the end the following:

(2)

Treatment of loans held by smaller institutions

The Bureau shall, by regulation, exempt from the requirements of subsection (a) any loan secured by a first lien on the principal dwelling of a consumer, if such loan is held by an insured depository institution having assets of $10,000,000,000 or less.

.

5.

Minimum standards for residential mortgage loans

Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)) is amended—

(1)

by adding at the end the following:

(F)

Safe Harbor

In this section—

(i)

the term qualified mortgage includes any mortgage loan that is originated and retained in portfolio for a period of not less than 3 years by a depository institution having less than $10,000,000,000 in total assets; and

(ii)

loans described in clause (i) shall be deemed to meet the requirements of subsection (a).

; and

(2)

in subparagraph (E)—

(A)

by striking The Bureau may, by regulation, and inserting The Bureau shall, by regulation,; and

(B)

by striking clause (iv) and inserting the following:

(iv)

that is extended by an insured depository institution that—

(I)

originates and retains the balloon loans in portfolio for a period of not less than 3 years; and

(II)

together with its affiliates has less than $10,000,000,000 in total consolidated assets.

.