[WSBARP] S.2155 - Economic Growth, Regulatory Relief, and Consumer Protection Act - "Christmas wish list"

Wed May 23 08:59:48 PDT 2018

The bi-partisan bill is now sitting at the President’s desk which he is
expected to sign.  Regardless of your political leanings lots to digest.

A couple of items which jumped out to me for my practice. Changes for
post-foreclosure evictions, student loans and free credit freeze.  You
might find something.

https://www.housingwire.com/articles/43443-house-passes-dodd-frank-reform-bill-approval-now-pending-from-president-trump

https://www.congress.gov/bill/115th-congress/senate-bill/2155

(*Sec. 304) The sunset provision of the Protecting Tenants at Foreclosure
Act is repealed, restoring notification requirements and other protections
related to the eviction of renters in foreclosed properties. (The Act
expired on December 31, 2014.)*

*(Sec. 301) The bill amends the Fair Credit Reporting Act to increase the
length of time a consumer reporting agency must include a fraud alert in a
consumer's file. It also: (1) requires a consumer reporting agency to
provide a consumer with free credit freezes and to notify a consumer of
their availability, (2) establishes provisions related to the placement and
removal of these freezes, (3) creates requirements related to
the protection of the credit records of minors.*

*(Sec. 302) The bill limits, and establishes  a dispute process and
verification procedures with respect to, the inclusion of a veteran's
medical debt in a consumer credit report.*

*TITLE VI--PROTECTIONS FOR STUDENT BORROWERS*

*(Sec. 601) The bill amends TILA to prospectively revise provisions
relating to cosigners of private student loans. Specifically, the bill: (1)
prohibits a creditor from declaring a default or accelerating the debt of a
private student loan on the sole basis of the death or bankruptcy of a
cosigner to such a loan, and (2) directs loan holders to release cosigners
from any obligation upon the death of the student borrower.*

*(Sec. 602) The bill amends the Fair Credit Reporting Act to allow a person
to request the removal of a previously reported default regarding a private
education loan from a consumer report if: (1) the lender chooses to offer a
loan-rehabilitation program that requires a number of consecutive on-time
monthly payments demonstrating renewed ability and willingness to repay the
loan, and (2) the consumer meets those requirements. A consumer may obtain
such rehabilitation benefits only once per loan. The GAO shall report on
the implementation of these provisions.*

*Passed Senate amended (03/14/2018)*

*Economic Growth, Regulatory Relief, and Consumer Protection Act*

TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT

(Sec. 101) This bill amends the Truth in Lending Act (TILA) to allow a
depository institution or credit union with assets below a specified
threshold to forgo certain ability-to-pay requirements regarding
residential mortgage loans. Specifically, those requirements are waived if
a loan: (1) is originated by and retained by the institution, (2) complies
with requirements regarding prepayment penalties and points and fees, and
(3) does not have negative amortization or interest-only terms.
Furthermore, for such requirements to be waived, the institution must
consider and verify the debt, income, and financial resources of the
consumer.

The bill also provides for circumstances in which such requirements shall
be waived with respect to a loan that is transferred: (1) by reason of
bankruptcy or failure of the originating institution, (2) to a similar
institution, (3) in the event of a merger, or (4) to a wholly owned
subsidiary of the institution.

(Sec. 102) Mortgage appraisal services donated by a fee appraiser to an
organization eligible to receive tax-deductible charitable contributions
are deemed to be customary and reasonable under TILA.

(Sec. 103) The bill amends the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 to exempt from appraisal requirements certain
federally related, rural real-estate transactions valued below a specified
limit if no certified appraiser is available.

(Sec. 104) The bill amends the Home Mortgage Disclosure Act of 1975 to
exempt from specified public disclosure requirements depository
institutions and credit unions that originate fewer than a specified number
of closed-end mortgages or open-end lines of credit.

The Government Accountability Office (GAO) must report on these changes.

(Sec. 105) The bill amends the Federal Credit Union Act to allow a credit
union to extend a member business loan with respect to a one- to
four-family dwelling, regardless of whether the dwelling is the member's
primary residence. Under current law, a member business loan may be
extended with respect to such a dwelling only if it is the member's primary
residence.

(Sec. 106) The bill amends the S.A.F.E. Mortgage Licensing Act of 2008 to
revise the Act's civil liability immunity provisions and to temporarily
allow loan originators that meet specified requirements to continue to
originate loans after moving: (1) from one state to another, or (2) from a
depository institution to a non-depository institution.

(Sec. 107) The bill amends TILA to specify that a retailer of manufactured
housing that meets certain requirements is generally not a "mortgage
originator" subject to requirements under that Act.

(Sec. 108) The bill exempts from certain escrow requirements a residential
mortgage loan held by a depository institution or credit union that: (1)
has assets of $10 billion or less, (2) originated 1,000 or fewer mortgages
in the preceding year, and (3) meets other specified requirements.

(Sec. 109) The required mortgage disclosure waiting period is eliminated
with respect to a second offer of credit if the creditor offers a consumer
a lower annual percentage rate in the second offer.

TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT

(Sec. 201) Federal banking agencies must develop a specified Community Bank
Leverage Ratio (the ratio of a bank's equity capital to its consolidated
assets) for banks with assets of less than $10 billion. Such banks that
exceed this ratio shall be deemed to be in compliance with all other
capital and leverage requirements. Federal banking agencies may consider a
company's risk profile when evaluating whether it qualifies as a community
bank for purposes of the ratio requirement.

(Sec. 202) The bill amends the Federal Deposit Insurance Act to exclude
reciprocal deposits of an insured depository institution from certain
limitations on prohibited broker deposits if the total reciprocal deposits
of the institution do not exceed the lesser of $5 billion or 20% of its
total liabilities. Reciprocal deposits are deposits that banks make with
each other in equal amounts. (Generally, an insured depository institution
that is not well capitalized may not accept funds obtained by or through
any deposit broker for deposit.)

(Sec. 203) The bill amends the Bank Holding Company Act of 1956 to exempt
from the "Volcker Rule" banks with: (1) total assets valued at less than
$10 billion, and (2) trading assets and liabilities comprising not more
than 5% of total assets. (The Volcker Rule prohibits banking agencies from
engaging in proprietary trading or entering into certain relationships with
hedge funds and private-equity funds.)

(Sec. 204) Volcker Rule restrictions on entity name sharing are eased in
specified circumstances.

(Sec. 205) The bill amends the Federal Deposit Insurance Act to require
federal banking agencies to issue regulations allowing certain small
depository institutions to satisfy reporting requirements with a reduced
Report of Condition and Income (i.e., call report).

(Sec. 206) The bill amends the Home Owners' Loan Act to permit
certain federal savings associations to elect to operate, subject to
supervision by the Office of the Comptroller of the Currency, with the same
rights and duties as national banks (including operating without certain
lending restrictions).

(Sec. 207) The Federal Reserve Board (FRB) must increase, from $1 billion
to $3 billion, the consolidated asset threshold (i.e., permissible debt
level) for a bank holding company or savings and loan holding company that:
(1) is not engaged in significant nonbanking activities; (2) does not
conduct significant off-balance-sheet activities; and (3) does not have a
material amount of debt or equity securities, other than trust-preferred
securities, outstanding. If warranted for supervisory purposes, the FRB may
exclude a company from this threshold increase.

(Sec. 208) The bill amends the Expedited Funds Availability Act to apply
the Act, which governs bank deposit holds, to American Samoa, the
Commonwealth of the Northern Mariana Islands, and Guam. The Act's one-day
extension for certain deposits in noncontiguous states or territories shall
also apply to these territories.

(Sec. 209) The bill amends the United States Housing Act of 1937 to reduce
inspection requirements and environmental-review requirements for certain
smaller, rural public-housing agencies.

(Sec. 210) The bill amends the Federal Deposit Insurance Act to increase
the asset limit below which certain depository institutions are eligible
for an 18-month, instead of a 12-month, examination cycle.

(Sec. 211) The bill creates the Insurance Policy Advisory Committee on
International Capital Standards and Other Insurance Issues at the FRB. The
FRB and the Department of the Treasury must report on: (1) their efforts
regarding global insurance regulatory or supervisory forums, and (2) any
final international insurance capital standards prior to adoption of such
standards.

(Sec. 212) The bill amends the Federal Credit Union Act to require the
National Credit Union Administration to hold public hearings on its draft
annual budget.

(Sec. 213) A financial institution is authorized to record personal
information from a scan, copy, or image of an individual's driver's license
or personal identification card and store the information electronically
when an individual initiates an online request to open an account or obtain
a financial product. The financial institution may use the information for
the purpose of verifying the authenticity of the driver's license or
identification card, verifying the identity of the individual, or complying
with legal requirements. The financial institution must delete any copy or
image of an individual's driver's license or personal identification card
after use.

(Sec. 214) The bill amends the Federal Deposit Insurance Act to specify
that a federal banking agency may not subject a depository institution to
higher capital standards with respect to a high-volatility commercial
real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition,
development, or construction (ADC) loan.

An HVCRE ADC loan : (1) is secured by land or improved real property; (2)
has the purpose of providing financing to acquire, develop, or improve the
real property such that the property becomes income-producing; and (3) is
dependent upon future income or sales proceeds from, or refinancing of, the
real property for the repayment of the loan.

(Sec. 215) The Social Security Administration (SSA) is directed to develop
a database to facilitate the verification of consumer information upon
request by a certified financial institution. Such verification shall be
provided only with the consumer's consent and in connection with a credit
transaction. Users of the database shall pay system costs as determined by
the SSA.

(Sec. 216) The bill directs Treasury to report on the risks of cyber
threats to financial institutions and capital markets.

(Sec. 217) The bill amends the Federal Reserve Act to lower the maximum
allowable amount of surplus funds of the Federal Reserve banks.

TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS

(Sec. 301) The bill amends the Fair Credit Reporting Act to increase the
length of time a consumer reporting agency must include a fraud alert in a
consumer's file. It also: (1) requires a consumer reporting agency to
provide a consumer with free credit freezes and to notify a consumer of
their availability, (2) establishes provisions related to the placement and
removal of these freezes, (3) creates requirements related to
the protection of the credit records of minors.

(Sec. 302) The bill limits, and establishes  a dispute process and
verification procedures with respect to, the inclusion of a veteran's
medical debt in a consumer credit report.

(Sec. 303) The bill extends immunity from liability to certain individuals
employed at financial institutions who, in good faith and with reasonable
care, disclose the suspected exploitation of a senior citizen to a
regulatory or law-enforcement agency. Similarly, the employing financial
institution shall not be liable with respect to disclosures made by such
employees.

The bill allows financial institutions and third-party entities to offer
training related to the suspected financial exploitation of a senior
citizen to specified employees. The bill provides guidance regarding the
content, timing, and record-maintenance requirements of such training.

(Sec. 304) The sunset provision of the Protecting Tenants at Foreclosure
Act is repealed, restoring notification requirements and other protections
related to the eviction of renters in foreclosed properties. (The Act
expired on December 31, 2014.)

(Sec. 305) Treasury may use loan guarantees and credit enhancements to
remediate lead and asbestos hazards in residential properties.

(Sec. 306) The bill amends the United States Housing Act of 1937 to revise
the Family-Self-Sufficiency (FSS) program, an employment and savings
incentive program for families that reside in public housing or have
housing vouchers. Specifically, the bill:

   - combines existing, separately operated FSS programs into a single
   program;
   - extends program eligibility to tenants of certain privately owned
   properties subsidized with project-based rental assistance;
   - revises program requirements related to eligibility, supportive
   services, and escrow deposits; and
   - otherwise modifies the FSS program.

(Sec. 307) The Consumer Financial Protection Bureau is directed to
promulgate ability-to-repay regulations regarding property assessed clean
energy financing.

(Sec. 308) The bill directs the GAO to report on the accuracy and security
of consumer reporting agencies and consumer reports.

(Sec. 309) A refinanced home loan may not be guaranteed by the Department
of Veterans Affairs (VA), unless: (1) a specified minimum time period has
passed between the original loan and the refinancing; and (2) the lender
complies with provisions related to fee recoupment, mortgage interest
rates, and net tangible benefit tests.

The Department of Housing and Urban Development (HUD) and the Government
National Mortgage Association (Ginnie Mae) must report on the liquidity of
the VA Housing Loan Program.

The VA must report annually on refinanced home loans to veterans.

(Sec. 310) The bill amends the Federal National Mortgage Association
Charter Act and the Federal Home Loan Mortgage Corporation Act to allow the
Federal National Mortgage Association (Fannie Mae) and the Federal Home
Loan Mortgage Corporation (Freddie Mac), when determining whether to
purchase a residential mortgage, to consider a borrower's credit score only
if certain procedural requirements are met with respect to the validation
and approval of credit-scoring models.

The Federal Housing Finance Agency must, by regulation, establish standards
and criteria for processes used by Fannie Mae and Freddie Mac to validate
and approve credit-scoring models in accordance with the bill.

(Sec. 311) The GAO is directed to report on foreclosures, homeownership,
and mortgage defaults in Puerto Rico before and after Hurricane Maria.

(Sec. 312) HUD must report on and provide recommendations for lead-based
paint hazard prevention and abatement, with an emphasis on preventing
exposure in children.

(Sec. 313) The bill amends the Honoring America's Veterans and Caring for
Camp Lejeune Families Act of 2012 to make permanent the one-year grace
period during which a servicemember is protected from foreclosure after
leaving military service.

TITLE IV--TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES

(Sec. 401) The bill amends the Financial Stability Act of 2010, with
respect to nonbank financial companies supervised by the FRB and certain
bank holding companies, to:

   - increase the asset threshold at which certain enhanced prudential
   standards shall apply, from $50 billion to $250 billion, while allowing the
   FRB discretion in determining whether a financial institution with assets
   equal or greater than $100 billion must be subject to such standards;
   - increase the asset threshold at which company-run stress tests are
   required, from $10 billion to $250 billion; and
   - increase the asset threshold for mandatory risk committees, from $10
   billion to $50 billion.

(Sec. 402) The bill requires the appropriate federal banking agencies to
exclude, for purposes of calculating a custodial bank's supplementary
leverage ratio, funds of a custodial bank that are deposited with a central
bank. ("Supplementary leverage ratio" is a capital adequacy measure that
refers to the ratio of a banking organization's tier-one capital to its
leverage exposure.) The amount of such funds may not exceed the total value
of deposits of the custodial bank linked to fiduciary or custodial and
safekeeping accounts.

(Sec. 403) This bill amends the Federal Deposit Insurance Act to require
certain municipal obligations to be treated as level 2B liquid assets if
they are investment grade, liquid, and readily marketable. Under current
law, corporate debt securities and publicly traded common-equity shares,
but not municipal obligations, may be treated as level 2B liquid assets
(which are considered to be high-quality assets).

TITLE V--ENCOURAGING CAPITAL FORMATION

(Sec. 501) The bill amends the Securities Act of 1933 to exempt from state
registration securities qualified for national trading by the Securities
and Exchange Commission (SEC) and authorized to be listed on a national
securities exchange. Currently, securities listed on exchanges specified by
statute or SEC rule are exempt.

(Sec. 502) The bill directs the SEC to report on the risks and benefits of
algorithmic trading in capital markets.

(Sec. 504) The bill amends the Investment Company Act of 1940 to exempt
from the definition of an "investment company," for purposes of specified
limitations applicable to such a company under the Act, a qualifying
venture capital fund that has no more than 250 investors. Specifically, the
bill applies to a venture capital fund that has less than $10 million in
aggregate capital contributions and uncalled committed capital. Under
current law, a venture capital fund is considered to be an investment
company if it has more than 100 investors.

(Sec. 505) The bill requires 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) informs the SEC of
the overpayment within 10 years.

(Sec. 506) The bill amends the Investment Company Act of 1940 to apply the
Act to investment companies created under the laws of Puerto Rico, the U.S.
Virgin Islands, or any other U.S. possession.

(Sec. 507) The bill requires 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.

(Sec. 508) The bill expands the applicability to issuers of "Regulation A+"
(which exempts certain smaller offerings from securities registration
requirements).

(Sec. 509) The bill directs 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. (A
closed-end company is a publicly traded investment management company that
sells a limited number of shares to investors in an initial public
offering.)

TITLE VI--PROTECTIONS FOR STUDENT BORROWERS

(Sec. 601) The bill amends TILA to prospectively revise provisions relating
to cosigners of private student loans. Specifically, the bill: (1)
prohibits a creditor from declaring a default or accelerating the debt of a
private student loan on the sole basis of the death or bankruptcy of a
cosigner to such a loan, and (2) directs loan holders to release cosigners
from any obligation upon the death of the student borrower.

(Sec. 602) The bill amends the Fair Credit Reporting Act to allow a person
to request the removal of a previously reported default regarding a private
education loan from a consumer report if: (1) the lender chooses to offer a
loan-rehabilitation program that requires a number of consecutive on-time
monthly payments demonstrating renewed ability and willingness to repay the
loan, and (2) the consumer meets those requirements. A consumer may obtain
such rehabilitation benefits only once per loan. The GAO shall report on
the implementation of these provisions.

(Sec. 603) The bill amends the Financial Literacy and Education Improvement
Act to direct the Financial Literacy and Education Commission to establish
best practices for teaching financial literacy skills at institutions of
higher education.

[image: image002.jpg at 01D33EAD]*Robert R. Rowley* | Attorney at Law

7 S. Howard St, Suite 218

Spokane, WA  99201

Telephone: (509) 252-5074

Mobile: (509) 994-1143

Facsimile: (509) 928-3084

Email: rob at rowleylegal.com

Web Site: www.rowleylegal.com

Practice concentrated on business, real estate and general legal matters in
Washington and Idaho.

[image: cid:image003.gif at 01D33EAD.3FB3F920]
<https://www.facebook.com/rowleylegal>[image:
cid:image004.gif at 01D33EAD.3FB3F920]
<https://www.linkedin.com/pub/rob-rowley/11/172/b20>[image:
cid:image005.gif at 01D33EAD.3FB3F920] <https://twitter.com/ROBERTRROWLEY>[image:
cid:image006.jpg at 01D33EAD.3FB3F920]
<http://www.yelp.com/biz/robert-r-rowley-spokane>

NOTICE: The contents of this message and any attachments may be protected
by the attorney-client privilege, work product doctrine or other applicable
protections.  If you are not the intended recipient or have received this
message in error, please notify the sender and promptly delete the
message.  Thank you for your assistance.

DISCLAIMER: You should recognize that responses provided by e-mail means
are akin to ordinary telephone or face-to-face conversations and do not
reflect the level of factual or legal inquiry or analysis which would be
applied in the case of a formal legal opinion. A formal opinion may very
well reach a different conclusion.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180523/fa616814/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3468 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180523/fa616814/image001.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.gif
Type: image/gif
Size: 1317 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180523/fa616814/image003.gif>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.gif
Type: image/gif
Size: 1295 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180523/fa616814/image004.gif>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.gif
Type: image/gif
Size: 1351 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180523/fa616814/image005.gif>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 2544 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180523/fa616814/image008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image009.jpg
Type: image/jpeg
Size: 1056 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180523/fa616814/image009.jpg>