Title I Improving Consumer Access to Mortgage Credit Issue Description House Legislation Senate Legislation

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1 Title I Improving Consumer Access to Mortgage Credit Sec Minimum Standards for Residential Mortgage Loans Provide safe harbor qualified mortgage status for all loans held in portfolio, subject to certain product constraints, by banks with less than $10 billion in assets. H.R Portfolio Lending and Mortgage Access Act Passed HFSC 55-0, amended version mostly aligned with S S CLEAR Relief Act (Moran, Tester, Heitkamp, Tillis) S Portfolio Lending and Mortgage Access Act (Perdue) Sec Safeguarding Access to Habitat For Humanity Language clarifying that an appraiser that voluntarily does not receive a fee for an appraisal (donated appraisal) is not in violation of rules requiring appraisal independence (Habitat for Humanity) H.R Housing Opportunities Made Easier Act (Trott) Passed HFSC 55-0 Passed full House by voice vote S. 310 A bill to clarify that nonprofit organizations such as Habitat for Humanity may accept donated mortgage appraisals, and for other purposes (Portman- Bennet)

2 Title I Improving Consumer Access to Mortgage Credit HR 3221 Securing Access to Affordable Mortgages Act (Kustoff-Luetkemeyer) Sec Exemption from Appraisals of Real Property Located in Rural Areas Provide relief from appraisal requirements in rural areas for loans under $400,000. Passed HFSC this version provides exemption for high cost mortgages up to $250,000, plus other provisions, but does not raise existing threshold to $400,000. Sec Home Mortgage Disclosure Act Adjustment and Study Exemption from HMDA requirements added by Dodd- Frank for banks that have originated fewer than 500 openended lines of credit and 500 closed-ended mortgages in each of the preceding two years, plus a look-back study after two years on availability of data. H.R Home Mortgage Disclosure Adjustment Act (Emmer-Luetkemeyer) Passed HFSC Passed full House (with 9 Ds) amended version identical to S *Similar included in H.R. 10 Financial S Home Mortgage Disclosure Adjustment Act (Rounds, Heitkamp, Tester, Hoeven, Donnelly, Kennedy) Sec Credit Union Residential Loans Provide that a 1- to 4- family dwelling that is not the primary residence of a member will not be considered a member business loan under the Federal Credit Union Act H.R. 389 Credit Union Residential Loan Parity Act (Royce, Huffam, DeFazio, Young) S. 836 Credit Union Residential Loan Parity Act (Wyden, Murkowski, Warren, Markey)

3 Title I Improving Consumer Access to Mortgage Credit Sec Eliminating Barriers to Jobs for Loan Originators Amend S.A.F.E. Act so that loan originators who transfer from a bank to a nonbank or to a new state can continue underwriting loans for 120 days while they are obtaining new licensing H.R (Stivers, Beatty, Sinema, Poliquin) Passed HFSC 60-0 S SAFE Transitional Licensing Act (Heller, Menendez) H.R Preserving Access to Manufactured Housing Act (Barr, Sinema, Sewell, Poliquin, Kustoff, Rice) Sec Protecting Access to Manufactured Homes Clarify that retailers who sell manufactured homes that do not receive compensation are not considered loan originators under TILA Passed HFSC Passed full House (with 27 Ds) includes both loan originator definition and high cost mortgage, so broader than S version S Preserving Access to Manufactured Housing Act (Donnelly, Toomey, Manchin, Cotton, Peters) Sec Escrow Requirements Relating to Certain Consumer Credit Transactions Provide exclusion from escrow requirements for portfolio loans held by small banks that operate predominantly in rural areas. H.R Community Institution Mortgage Relief Act of 2017 (Tenney-Sherman- Williams-Loebsack-Sessions) Passed HFSC S CLEAR Relief Act (Moran, Tester, Heitkamp, Tillis) Passed full House (with 60 Ds) amended version on

4 Title I Improving Consumer Access to Mortgage Credit Floor mostly aligned with S but some meaningful differences Sec No Wait for Lower Mortgage Rates 1) Remove three-day wait period in TRID if the only change from the prior disclosure is a reduction in the consumer s interest rate and 2) Sense of Congress that CFPB should provide clearer, authoritative guidance on certain issues H.R CLEARR Act (Luetkemeyer) S CLEAR Relief Act (Moran, Tester, Heitkamp, Tillis) Title II Regulatory Relief and Protecting Consumer Access to Credit Provide that banks with less than $10 billion in total assets are presumed compliant with Basel III risk-based capital Sec Capital Simplification requirements if they meet a for Qualifying Community Banks simple leverage ratio set by regulators between 8 percent and 10 percent.

5 Title II Regulatory Relief and Protecting Consumer Access to Credit Sec Limited Exception for Reciprocal Deposits Provide that reciprocal deposits of an agent institution will not be considered to be brokered deposits to extent total amount does not exceed lesser of (1) $5 billion or (2) an amount equal to 20 percent of the total liabilities of agent institutions H.R Keeping Capital Local for Underserved Communities Act (Moore, Emmer, Waters, Maloney, Meeks, Heck, Pocan, Clay, Cleaver, Sinema, Stivers, Pittenger, Messer, Zeldin, Huizenga, Hill, Lucas) S Keeping Capital Local for Underserved Communities Act (Warner, Moran, Heitkamp, Perdue, Menendez, Boozman, Van Hollen) Sec Community Bank Relief Exempt banks with less than $10 billion in assets and less than 5% trading assets and liabilities from the Volcker Rule H.R Volcker Rule Relief Act (114 th ) (Love, Neugebauer, Huizenga) S CLEAR Relief Act (Moran, Tester, Heitkamp, Tillis) Sec Removing Naming Restrictions Permit certain hedge funds and private equity funds to share the same name or variation of the same name as a banking entity that is an investment adviser to the hedge fund or private equity fund H.R Investor Clarity and Bank Parity Act (Capuano, Stivers, Meeks, Foster, Gonzalez) Passed HFSC by voice vote Passed full House by voice vote

6 Title II Regulatory Relief and Protecting Consumer Access to Credit Sec Short Form Call Reports Require the Federal banking agencies to reduce reporting requirements for depository institutions with less than $5 billion in total consolidated assets that satisfy other criteria the Federal banking agencies deem appropriate H.R Community Bank Reporting Relief Act (Hultgren, Sewell, Luetkemeyer) Passed HFSC 55-0 identical to S S. 927 CLEAR Plus Act (114 th ) (Moran-Tester) Sec Option for Federal Savings Associations to Operate as Covered Savings Associations Permit Federal savings associations with less than $15 billion in assets to elect to operate with the same powers and duties as national banks without being required to convert their charters H.R Federal Savings Association Charter Flexibility Act (Rothfus-Himes) Passed HFSC 55-0 Passed full House by voice vote does not have $15B cap and certain other changes in S S. 567 Federal Savings Association Charter Flexibility Act (Heitkamp)

7 Title II Regulatory Relief and Protecting Consumer Access to Credit H.R Small Bank Holding Company Relief Act (Love- Gottheimer-Meeks) Sec Small Bank Holding Company Policy Statement Raise threshold for small bank holding company policy statement from $1 billion to $3 billion Passed HFSC (with 11 Ds) identical to S Passed full House (including 50 Ds) S Community Bank Relief Act (Hatch, King, Nelson) *Also in H.R. 10 Financial Sec Application of the Expedited Funds Availability Act Apply Expedited Funds Availability Act to American Samoa and Northern Mariana Islands H.R. 385 To amend the Expedited Funds Availability Act to clarify the application of that Act to American Samoa and the Northern Mariana Island (Radewagen-Sablan) *Also in H.R. 10 Financial Sec Small Public Housing Agencies Provide certain relief for small, rural public housing authorities H.R Small Public Housing Agency Opportunity Act (114 th ) (Palazzo, Ashflord, Bishop, Fleischmann, Frelinghuysen, Harper, Hartzler, Posey, Kuster, Thompson, Westmoreland) S Small Public Housing Agency Opportunity Act (114 th ) (Tester-Fischer)

8 Title II Regulatory Relief and Protecting Consumer Access to Credit Sec Examination Cycle Raises the consolidated asset threshold from $1 billion to $3 billion for banks to qualify for an 18-month examination cycle S Community Lender Exam Act (Donnelly-Heller) Sec International Insurance Capital Standards Accountability Increases transparency and accountability in the development of international insurance standards, and in particular insurance capital standards H.R (Duffy) Passed HFSC 56-4 much more aggressive than S version S International Insurance Capital Standards Accountability Act (Heller-Tester) Sec Budget Transparency for the NCUA. Require NCUA to publish budget annually and hold a public hearing on the budget H.R (114 th ) (Mulvaney), passed HFSC S. 924 (Heller-Warner) Sec Making Online Banking Initiation Legal and Easy Authorizes an insured depository institution or insured credit union to record personal information from, and make a copy of, a driver s license or personal identification card for purposes of opening an account or obtaining a financial product or service through an online service H.R MOBILE Act Passed HFSC 60-0 Passed full House 397-8

9 Title II Regulatory Relief and Protecting Consumer Access to Credit H.R Clarifying Commercial Real Estate Loans (Pittinger) Sec Promoting Construction and Development on Main Street Sec Reducing Identity Fraud. Require that regulators not give construction and development loans a heightened risk weight under risk-based capital rules if they meet certain conditions. Direct the Social Security Administration to accept electronic signatures as consumer consent for financial institutions trying to verify customer ID Passed HFSC Passed full House by voice vote. S (Cotton-Jones) Sec Treasury Report on Risks of Cyber Threats Requires the SEC to report to Congress on the risks and benefits of algorithmic trading in the U.S. capital markets Sec Discretionary Surplus Funds Reduces the cap on surplus funds at the Federal Reserve banks. Title III Protections for Veterans, Consumers, and Homeowners Include a provision to require each of the major credit H.R Protect Act of 2017 S Protect Act of 2017 Sec Protecting Consumers bureaus to give consumers (McHenry) numerous (Perdue) numerous differences Credit access to unlimited free credit differences with S with S freezes, among other provisions.

10 Title III Protections for Veterans, Consumers, and Homeowners Sec Protecting Veterans Credit Prohibit credit reporting agencies from including in a credit report medical debts owed by veterans who received care as part of certain VA programs for a year H.R Protecting Veterans Credit Act (Delaney, Hultgren, Sinema, Walorski, Rouzer, O Rourke, Ruppersberger, Young, Stefanik, Jones, DeFazio, Rush, Bishop, Himes, Gonzalez, Shea-Porter, Dingell, Cartwright, Courtney, Hastings) S. 744 Protecting Veterans Credit Act (Donnelly-Rounds) Sec Immunity from Suit for Disclosure of Financial Exploitation of Senior Citizens Extend immunity from liability to certain individuals who, in good faith and with reasonable care, disclose the suspected exploitation of a senior citizen to a regulatory or law-enforcement agency H.R Senior Safe Act (Sinema-Poliquin) Passed HFSC 60-0 S. 223 Senior$afe Act (Collins- McCaskill) Sec Restoration of the Protecting Tenants at Foreclosure Act of 2009 Permit renters to stay in their homes for at least 90 days if the home is foreclosed on (Protecting Tenants from Foreclosure Act) H.R. 915 Permanently Protecting Tenants at Foreclosure Act (Ellison, Waters, Maloney, Lynch, Moore, Capuano, Grijalva, Butterfield, Smith, Cicilline, Clark, Norton, McGovern, Takano, Cummings, Cartwright, Pocan, Lewis) Section 202 of S Restoration of the Protecting Tenants at Foreclosure Act in the Community Lender Regulatory Relief and Consumer Protection Act (114 th ) (Brown, Reed, Schumer, Menendez, Tester, Warner, Merkley, Warren, Heitkamp, Donnelly) Sec Remediating Lead and Asbestos Hazards Allow Hardest Hit Funds to be used to remediate lead and asbestos hazards in residential properties

11 Title III Protections for Veterans, Consumers, and Homeowners Streamlines administration of FSS by allowing participating public housing authorities to H.R Family Selfcombine their public housing and Sufficiency Act (Duffy-Cleaver- Housing Choice Voucher FSS Ross-Delaney-Capuano- Sec Family Self-Sufficiency accounts, broadening the services S (Blunt-Reed-Scott- Velazquez-Beatty) Program. that can be provided to FSS Menendez) participants, and extending the Passed HFSC 58-0 passed full program to tenants who live in House privately-owned properties backed by project-based rental assistance Sec Property Assessed Clean Energy Financing Apply ability-to-repay portion of TILA to PACE loans (loans that finance efficiency upgrades) H.R PACE Act (Sherman-Royce) S. 838 PACE Act (Cotton, Boozman, Rubio) Sec GAO Report on Consumer Reporting Agencies Require GAO to study various aspects of the consumer reporting agency. Sec Protecting Veterans from Predatory Lending Require VA lenders to demonstrate a material benefit to consumers in order to refinance their mortgages. S (Tillis-Warren) Sec Credit Score Competition. Require Fannie Mae and Freddie Mac to each set up a process to evaluate credit score models. H.R. 898 (Royce-Sewell-Meeks- Pittenger-Sessions-Maloney- Himes-Tipton-Coffman-Green- Rosen) S (Scott-Warner)

12 Title III Protections for Veterans, Consumers, and Homeowners Require GAO to study impact of Hurricane Maria on the rate of Sec GAO Report on Puerto foreclosures, homeownership, Rico foreclosures. defaults, and delinquencies in Puerto Rico. Sec Report on Children s Lead-Based Paint Hazard Prevention and Abatement. Require HUD to issue a report on children s lead-based paint hazard prevention and abatement.. Sec Foreclosure Relief and Extension for Servicemembers. Make permanent a provision of the SCRA requiring a creditor to wait 1 year after a servicemember returns home from active duty before foreclosure. S (Whitehouse-Tester- Peters-Warren-Menendez)

13 Title IV Tailoring Regulations for Certain Bank Holding Companies Sec Enhanced Supervision and Prudential Standards for Certain Bank Holding Companies Raise SIFI threshold from $50B to $100B on day 1. Raise SIFI threshold to $250B in 18 months. Fed can apply standards to banks between $100B and $250B if appropriate for financial stability or safety and soundness. Fed must apply periodic supervisory stress test to banks between $100B and $250B. Provide that the Fed shall (as opposed to may tailor regulations under 165. Raise threshold for company run stress tests from $10B to $250B for all financial companies, except banks above $100B without a holding company subject to company run stress test. Mid-sized bank stress test component: S Main Street Regualtory Fairness Act (Tester, Moran, Heitkamp) Sec Supplementary Leverage Ratio for Custodial Banks Direct banking regulators to exempt cash from denominator of leverage ratio for custody banks H.R Pension, Endowment, and Mutual Fund Access to Banking Act (Rothfus, Foster, Hultgren) Passed HFSC 60-0

14 Title IV Tailoring Regulations for Certain Bank Holding Companies Sec Treatment of Certain Municipal Obligations Direct the FDIC, the Federal Reserve, and the OCC to classify qualifying investment-grade, liquid and readily-marketable municipal securities as level 2B liquid assets under the agencies Liquidity Coverage Ratio final rule H.R Municipal Finance Support Act (Messer, Maloney, Hultgren, Meeks, Kelly, Sewell, Sinema, King, Norton, Moore, Poliquin, Veasey, Sherman, Kind) Passed HFSC by vote of 60-0, passed full House by voice vote. S. 828 A bill to amend the Federal Deposit Insurance Act to require the appropriate Federal banking agencies to treat municipal obligations as level 2B liquid assets, and for other purposes (Rounds) Title V Encouraging Capital Formation Sec National Securities Exchange Regulatory Parity Applies the exemption from State regulation of securities offerings to securities listed or authorized for listing on a national securities exchange rather than naming specific securities exchanges H.R (Royce-Hultgren- Messer-Gottheimer) Passed HFSC 46-14

15 Title V Encouraging Capital Formation Sec SEC Study on Algorithmic Trading Require the Treasury Department to submit a report to Congress on the risks of cyber threats to financial institutions and the U.S. capital markets Sec Annual Review of Government-Business Forum on Capital Formation Amend the Small Business Investment Incentive Act of 1980 with respect to the annual government-business forum of the SEC to review the current status of problems and programs relating to small business capital formation H.R (Poliquin-Vargas) Passed House S. 416 Passed Senate by unanimous consent. Sec Supporting America s Innovators Increase the limit on the number of individuals who can invest in certain venture capital funds before those funds must register as investment companies with the SEC H.R (McHenry-Velazquez) Passed House S. 444 (Heitkamp-Heller) Passed Senate by unanimous consent Sec Securities and Exchange Commission Overpayment Credit Require the SEC to offset future fees and assessments due from a national securities exchange or association that: (1) has previously overpaid such fees and assessments, and (2) H.R (Meeks-Hultgren) Passed HFSC S. 462 (Heller-Heitkamp) Passed Senate by unanimous consent

16 Title V Encouraging Capital Formation informs the SEC of the overpayment within 10 years Sec U.S. Territories Investor Protection. Amend the Investment Company Act of 1940 to apply the Act to investment companies created under the laws of Puerto Rico, the Virgin Islands, or any other U.S. possession H.R (Velazquez-Duffy) Passed HFSC Passed full House by voice vote. S. 484 (Menendez-Hatch) Passed Senate by unanimous consent Sec Encouraging Employee Ownership. Require the SEC to increase, from $5 million to $10 million, the 12-month sales threshold beyond which an issuer is required to provide investors with additional disclosures related to compensatory benefit plans, and require the SEC to index the sales threshold every five years based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics and rounded to the nearest $1 million. H.R (Hultgren-Delaney) Passed House S. 488 (Toomey-Warner) Passed Senate by unanimous consent

17 Title V Encouraging Capital Formation Sec Improving Access to Capital. Direct the SEC to expand its Regulation A+ rules to include companies that are fully reporting companies under the Securities Exchange Act of Regulation A+ implemented Title IV of the JOBS Act by exempting from registration certain securities offerings by smaller issuers H.R (Sinema- Hollingsworth) Passed House Sec Parity for Closed-End Companies Regarding Offering and Proxy Rules. Direct the SEC to revise registration rules to allow a closed-end company to use offering and proxy rules currently available to other issuers of securities, thereby reducing filing requirements and restrictions on communications with investors in certain circumstances H.R (Hollingsworth) Passed House

18 Title VI Protections for Student Borrowers. Sec Protections in the Event of Death or Bankruptcy. Prohibit private student lenders from declaring a default or accelerating a debt against a student borrower on the sole basis of bankruptcy or death of a cosigner, and release co-signers from their obligations following the death of a student borrower H.R (114 th ) (Pascrell) S (Menendez) Sec Rehabilitation of Qualified Education Loans. Allow a private student loan borrower to request that a reported default be removed from a credit report if the borrower successfully participates in a rehabilitation program that a financial institution chooses to offer H.R (114 th ) (Carney- Fincher) S (Peters-Capito) Sec Best Practices for Higher Education Financial Literacy. Require the Treasury Financial Literacy and Education Commission to establish nonbinding best practices for institutions of higher education regarding methods to teach financial literacy skills and inform and assist students when making financial decisions related to student borrowing