To clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, to improve upon the definitions provided for points and fees in connection with a mortgage transaction, and for other purposes.
Latest action · Sep 17, 2014 Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedSep 15, 2014
- Passed HouseSep 16, 2014
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
Title I: Insurance Capital Standards - Insurance Capital Standards Clarification Act of 2014 - (Sec. 102) Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) concerning establishment of minimum leverage and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors of the Federal Reserve System.
States that federal banking agencies shall not be required to subject any person to such minimum capital requirements, to the extent that such person either: (1) acts in its capacity as a regulated insurance entity regulated by a state insurance regulator, or (2) is a regulated foreign subsidiary engaged in the business of insurance (including a regulated foreign affiliate of such subsidiary).
States that a Board-supervised depository institution holding company or nonbank financial company engaged in the insurance business and regulated by either a state insurance regulator or the National Association of Insurance Commissioners, and which files its holding company financial statements using only Statutory Accounting Principles pursuant to state law, shall not be required by the Board, under this Act or the Home Owners' Loan Act (HOLA), to prepare such financial statements in accordance with Generally Accepted Accounting Principles.
Declares that nothing in this Act shall: (1) limit Board authority to conduct any regulatory or supervisory activity of either a depository institution holding company or a non-bank financial company under Board jurisdiction, including the collecting or reporting of any information on an entity or group-wide basis; or (2) excuse the Board from its obligations to comply with Dodd-Frank requirements regarding examination of nonbank financial companies and HOLA requirements regarding examination of savings and loan holding companies.
Title II: Collateralized Loan Obligations - Restoring Proven Financing for American Employers Act - (Sec. 202) Amends the Bank Holding Company Act of 1956 with respect to certain prohibitions on proprietary trading by banking entities and certain relationships with hedge funds and private equity funds (Volcker Rule).
Prescribes rules of construction governing a collateralized loan obligation to prohibit the Volcker Rule from being construed to require divestiture, before July 21, 2017, of any debt securities of collateralized loan obligations issued before January 31, 2014.
Declares that a banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it either acquires, has acquired, or retains a debt security in such obligation if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation.
Defines "collateralized loan obligation" as any issuing entity of an asset-backed security comprised primarily of commercial loans.
Deems an investment manager or adviser to be removed "for cause" if the removal is a result of:
- a breach of a material term of the applicable management or advisory agreement or the agreement governing the collateralized loan obligation;
- the investment manager's or investment adviser's inability to continue to perform its obligations under any such agreement;
- any other action or inaction by the investment manager or investment adviser that has or could reasonably be expected to have a materially adverse effect on the collateralized loan obligation, if the investment manager or investment adviser fails to cure or take reasonable steps to cure such effect within a reasonable time; or
- an event or circumstance which threatens, or could reasonably be expected to threaten, the interests of holders of the debt securities.
Title III: Definition Of Points And Fees In Mortgage Transactions - Mortgage Choice Act of 2014 - (Sec. 302) Amends the Truth in Lending Act with respect to requirements for disclosure to a consumer of points and fees information about a consumer credit transaction, secured by the consumer's principal dwelling, but which is not a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan, when the total points and fees the consumer must pay at or before closing will exceed 8% of the total loan amount or $400, whichever is greater. (Such consumer credit transactions might include an equity credit line to which consumer purchases or leases may be charged.)
Excludes from the computation of such points and fees any escrow for future payment of insurance.
Modifies the criteria for exclusion from the computation of points and fees of certain reasonable charges elsewhere exempted from the computation of the finance charge in extensions of credit secured by an interest in real property. Excludes from points and fees any such reasonable charges even though a creditor receives compensation, but only in so far as the creditor or its affiliate retains the compensation as a result of their participation in an affiliated business arrangement.
(An "affiliated business arrangement" is one in which: (1) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1% in a provider of settlement services; and (2) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the provider's selection.)
Revises the additional requirement that such a reasonable charge be paid to a third party unaffiliated with the creditor. Requires the charge to be either: (1) a bona fide third party charge not retained by the mortgage originator, creditor, or an affiliate; or (2) a fee or premium for title examination, title insurance, or similar purposes.
Modifies the conditions under which federal departments and agencies may exempt refinancings under a streamlined refinancing from an income verification requirement that, at the time a refinancing is consummated, the consumer has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments.
Repeals the exception for bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate from the requirement that total points and fees not exceed 3% of the total new loan amount. (Thus subjects such charges to the same 3% ceiling.)
(Sec. 303) Directs the Consumer Financial Protection Bureau (CFPB) to issue, within 90 days after enactment of this Act, final regulations to it carry out.
Title IV: Business Risk Mitigation And Price Stabilization - Business Risk Mitigation and Price Stabilization Act of 2014 - (Sec. 402) Amends the Commodity Exchange Act (CEA) to exempt, from the rules of prudential regulators for swap dealers and major swap participants with respect to initial and variation margin requirements for swaps not cleared by a registered derivatives clearing organization, those swaps in which one of the counterparties:
- is eligible for an exception from clearing requirements because it is not a financial entity, uses swaps to hedge or mitigate commercial risk, and notifies the Commodity Futures Trading Commission (CFTC) how it meets financial obligations associated with entering into non-cleared swaps;
- is eligible for a public interest exemption from swap clearing requirements for certain cooperative entities; or
- satisfies specified criteria governing treatment of affiliates in connection with clearing requirements.
Amends the Securities Exchange Act of 1934 (SEA 1934) regarding registration and regulation of security-based swap dealers and major security-based swap participants, to exempt from initial and variation margin requirements for swaps not cleared by a registered derivatives clearing organization a security-based swap in which one of the counterparties either: (1) qualifies for a specified exception from clearing requirements, or (2) satisfies certain criteria governing the treatment of affiliates.
Recorded votes 1
Newest first. Open one to see how every member voted.
Cosponsors 3
Members who signed on, in the order they did. All signed on Sep 15, 2014.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-MI | Bill Huizenga | Original | Sep 15, 2014 |
| D-GA | David Scott | Original | Sep 15, 2014 |
| R-CA | Gary G. Miller | Original | Sep 15, 2014 |
Committees 3
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Financial Services Committee | Referred Sep 15, 2014 |
| House | Agriculture Committee | Referred Sep 15, 2014 |
| Senate | Banking, Housing, and Urban Affairs Committee | Referred Sep 17, 2014 |
Actions 11
Everything that happened, newest first.
- Sep 17, 2014Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sep 16, 2014Considered as unfinished business. (consideration: CR H7577)
- Sep 16, 2014Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 327 - 97 (Roll no. 502). (text: CR 9/16/2014 H7508-7510)
- Sep 16, 2014Motion to reconsider laid on the table Agreed to without objection.
- Sep 15, 2014Introduced in House
In the Congressional Record 3
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Extensions | Debate and remarks E1469 | Keith Ellison D-MN | Sep 19, 2014 |
| House · Extensions | Debate and remarks E1423Recorded votes H7577clarify and improve | Jeb Hensarling R-TX | Sep 16, 2014 |
| House | Debate and remarks H7508–H7515Text printed H7508–H7510Lists H7529H.R. 5461–5474 | Andy Barr R-KY, Bill Huizenga R-MI, Carolyn McCarthy D-NY, Keith Ellison D-MN, Maxine Waters D-CA | Sep 15, 2014 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Constitutional authority
The sponsor’s statement, as printed in the page H7529.
CRS reports 3
Congressional Research Service work that CRS links to this bill or the law it became, newest first.
Cite it 3
Products on other subjects that cite it, usually among other measures.
| Product | Title | Kind | Published |
|---|---|---|---|
| R44046 | Insurance Regulation: Background, Overview, and Legislation in the 114th Congress Archived | Report | Dec 30, 2016 |
| R43067 | Insurance Regulation: Issues, Background, and Legislation in the 113th Congress Archived | Report | Jan 2, 2015 |
| R43837 | An Overview of Selected Legislation in the 113th Congress Related to the Consumer Financial Protection Bureau (CFPB) Archived | Report | Dec 29, 2014 |
Related bills 10
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 634 | Business Risk Mitigation and Price Stabilization Act of 2013 | Related bill | Jun 13, 2013 |
| S 888 | A bill to provide end user exemptions from certain provisions of the Commodity Exchange Act and the Securities Exchange Act of 1934. | Related bill | May 8, 2013 |
| S 949 | Consumer Mortgage Choice Act | Related bill | May 14, 2013 |
| S 1577 | Mortgage Choice Act of 2013 | Related bill | Sep 16, 2014 |
| S 2102 | A bill to clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act. | Related bill | Mar 11, 2014 |
Titles 9
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, to improve upon the definitions provided for points and fees in connection with a mortgage transaction, and for other purposes.
- Short Titles as Introduced for portions of this bill
- Mortgage Choice Act of 2014
- Restoring Proven Financing for American Employers Act
- Insurance Capital Standards Clarification Act of 2014
- Business Risk Mitigation and Price Stabilization Act of 2013
- Short Titles as Passed House for portions of this bill
- Mortgage Choice Act of 2014
- Insurance Capital Standards Clarification Act of 2014
- Business Risk Mitigation and Price Stabilization Act of 2014
- Restoring Proven Financing for American Employers Act
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Accounting and auditing
- Administrative law and regulatory procedures
- Bank accounts, deposits, capital
- Banking and financial institutions regulation
- Business records
- Commodities markets
- Commodity Futures Trading Commission
- Consumer Financial Protection Bureau
- Corporate finance and management
- Credit and credit markets
- Finance and Financial Sector
- Financial services and investments
- Foreign and international corporations
- Housing finance and home ownership
- Insurance industry and regulation
- Securities
- User charges and fees
Text 3
Each version as it was printed, newest first.
- Sep 17, 2014Referred in Senate
- Sep 16, 2014Engrossed in House
- Sep 15, 2014Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.