[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1113 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 1113
To amend the Truth in Lending Act to provide a safe harbor from certain
requirements related to qualified mortgages for residential mortgage
loans held on an originating insured depository institution's
portfolio, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2015
Mr. Barr (for himself, Mr. Weber of Texas, Mr. Neugebauer, Mr. Fincher,
Mr. Dold, Mr. Tipton, Mr. Hill, Mr. Lucas, Mr. Rothfus, Mr.
Luetkemeyer, Mr. Stivers, Mr. King of New York, Mr. Hultgren, Mr.
Duffy, Mr. Stutzman, Mr. Guinta, and Mr. Ribble) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act to provide a safe harbor from certain
requirements related to qualified mortgages for residential mortgage
loans held on an originating insured depository institution's
portfolio, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Portfolio Lending and Mortgage
Access Act''.
SEC. 2. SAFE HARBOR FOR CERTAIN LOANS HELD ON PORTFOLIO.
(a) In General.--Section 129C of the Truth in Lending Act (15
U.S.C. 1639c) is amended by adding at the end the following:
``(j) Safe Harbor for Certain Loans Held on Portfolio.--
``(1) Safe harbor for creditors that are insured depository
institutions.--
``(A) In general.--A creditor that is an insured
depository institution shall not be subject to suit for
failure to comply with subsection (a), (c)(1), or
(f)(2) of this section or section 129H with respect to
a residential mortgage loan, and the banking regulators
shall treat such loan as a qualified mortgage, if--
``(i) the creditor has, since the
origination of the loan, held the loan on the
balance sheet of the creditor; and
``(ii) all prepayment penalties with
respect to the loan comply with the limitations
described under subsection (c)(3).
``(B) Exception for certain transfers.--In the case
of an insured depository institution that transfers a
loan originated by that institution to another insured
depository institution by reason of the bankruptcy or
failure of the originating insured depository
institution or the purchase of the originating insured
depository institution, the insured depository
institution transferring such loan shall be deemed to
have complied with the requirement under subparagraph
(A)(i).
``(2) Safe harbor for mortgage originators.--A mortgage
originator shall not be subject to suit for a violation of
section 129B(c)(3)(B) for steering a consumer to a residential
mortgage loan if--
``(A) the creditor of such loan is an insured
depository institution and has informed the mortgage
originator that the creditor intends to hold the loan
on the balance sheet of the creditor for the life of
the loan; and
``(B) the mortgage originator informs the consumer
that the creditor intends to hold the loan on the
balance sheet of the creditor for the life of the loan.
``(3) Definitions.--For purposes of this subsection:
``(A) Banking regulators.--The term `banking
regulators' means the Federal banking agencies and the
Bureau.
``(B) Other terms.--The terms `Federal banking
agencies' and `insured depository institution' have the
meaning given those terms, respectively, under section
3 of the Federal Deposit Insurance Act.''.
(b) Rule of Construction.--Nothing in the amendment made by this
Act may be construed as preventing a balloon loan from qualifying for
the safe harbor provided under section 129C(j) of the Truth in Lending
Act if the balloon loan otherwise meets all of the requirements under
such subsection (j), regardless of whether the balloon loan meets the
requirements described under clauses (i) through (iv) of section
129C(b)(2)(E) of such Act.
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