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 $10,000,000,000 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 20,000 or fewer mortgage loans, in order to reduce regulatory burdens while appropriately balancing consumer protections.