115 HR 3971 IH: Community Institution Mortgage Relief Act of 2017 U.S. House of Representatives 2017-10-05 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I115th CONGRESS1st SessionH. R. 3971IN THE HOUSE OF REPRESENTATIVESOctober 5, 2017Ms. Tenney (for herself, Mr. Sherman, and Mr. Williams) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo amend the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974 to modify the requirements for community financial institutions with respect to certain rules relating to mortgage loans, and for other purposes.

1.

Short title

This Act may be cited as the Community Institution Mortgage Relief Act of 2017.

2.

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 $25,000,000,000 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 30,000 or fewer mortgage loans, in order to reduce regulatory burdens while appropriately balancing consumer protections..