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Public Law No: 115-174 (05/24/2018)

[115th Congress Public Law 174] [From the U.S. Government Publishing Office] [[Page 1295]] ECONOMIC GROWTH, REGULATORY RELIEF, AND CONSUMER PROTECTION ACT [[Page 132 STAT. 1296]] Public Law 115-174 115th Congress An Act To promote economic growth, provide tailored regulatory relief, and enhance consumer protections, and for other purposes. <<NOTE: May 24, 2018 - [S. 2155]>> Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, <<NOTE: Economic Growth, Regulatory Relief, and Consumer Protection Act.>> SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) <<NOTE: 15 USC 1601 note.>> Short Title.--This Act may be cited as the ``Economic Growth, Regulatory Relief, and Consumer Protection Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions. TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT Sec. 101. Minimum standards for residential mortgage loans. Sec. 102. Safeguarding access to habitat for humanity homes. Sec. 103. Exemption from appraisals of real property located in rural areas. Sec. 104. Home Mortgage Disclosure Act adjustment and study. Sec. 105. Credit union residential loans. Sec. 106. Eliminating barriers to jobs for loan originators. Sec. 107. Protecting access to manufactured homes. Sec. 108. Escrow requirements relating to certain consumer credit transactions. Sec. 109. No wait for lower mortgage rates. TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT Sec. 201. Capital simplification for qualifying community banks. Sec. 202. Limited exception for reciprocal deposits. Sec. 203. Community bank relief. Sec. 204. Removing naming restrictions. Sec. 205. Short form call reports. Sec. 206. Option for Federal savings associations to operate as covered savings associations. Sec. 207. Small bank holding company policy statement. Sec. 208. Application of the Expedited Funds Availability Act. Sec. 209. Small public housing agencies. Sec. 210. Examination cycle. Sec. 211. International insurance capital standards accountability. Sec. 212. Budget transparency for the NCUA. Sec. 213. Making online banking initiation legal and easy. Sec. 214. Promoting construction and development on Main Street. Sec. 215. Reducing identity fraud. Sec. 216. Treasury report on risks of cyber threats. Sec. 217. Discretionary surplus funds. TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS Sec. 301. Protecting consumers' credit. Sec. 302. Protecting veterans' credit. Sec. 303. Immunity from suit for disclosure of financial exploitation of senior citizens. [[Page 132 STAT. 1297]] Sec. 304. Restoration of the Protecting Tenants at Foreclosure Act of 2009. Sec. 305. Remediating lead and asbestos hazards. Sec. 306. Family self-sufficiency program. Sec. 307. Property Assessed Clean Energy financing. Sec. 308. GAO report on consumer reporting agencies. Sec. 309. Protecting veterans from predatory lending. Sec. 310. Credit score competition. Sec. 311. GAO report on Puerto Rico foreclosures. Sec. 312. Report on children's lead-based paint hazard prevention and abatement. Sec. 313. Foreclosure relief and extension for servicemembers. TITLE IV--TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES Sec. 401. Enhanced supervision and prudential standards for certain bank holding companies. Sec. 402. Supplementary leverage ratio for custodial banks. Sec. 403. Treatment of certain municipal obligations. TITLE V--ENCOURAGING CAPITAL FORMATION Sec. 501. National securities exchange regulatory parity. Sec. 502. SEC study on algorithmic trading. Sec. 503. Annual review of government-business forum on capital formation. Sec. 504. Supporting America's innovators. Sec. 505. Securities and Exchange Commission overpayment credit. Sec. 506. U.S. territories investor protection. Sec. 507. Encouraging employee ownership. Sec. 508. Improving access to capital. Sec. 509. Parity for closed-end companies regarding offering and proxy rules. TITLE VI--PROTECTIONS FOR STUDENT BORROWERS Sec. 601. Protections in the event of death or bankruptcy. Sec. 602. Rehabilitation of private education loans. Sec. 603. Best practices for higher education financial literacy. SEC. <<NOTE: 12 USC 5365 note.>> 2. DEFINITIONS. In this Act: (1) Appropriate federal banking agency; company; depository institution; depository institution holding company.--The terms ``appropriate Federal banking agency'', ``company'', ``depository institution'', and ``depository institution holding company'' have the meanings given those terms in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (2) Bank holding company.--The term ``bank holding company'' has the meaning given the term in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841). TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT SEC. 101. MINIMUM STANDARDS FOR RESIDENTIAL MORTGAGE LOANS. Section 129C(b)(2) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)) is amended by adding at the end the following: ``(F) Safe harbor.-- ``(i) Definitions.--In this subparagraph-- ``(I) the term `covered institution' means an insured depository institution or an insured credit union that, together with its affiliates, has less than $10,000,000,000 in total consolidated assets; ``(II) the term `insured credit union' has the meaning given the term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); ``(III) the term `insured depository institution' has the meaning given the term in section 3 of [[Page 132 STAT. 1298]] the Federal Deposit Insurance Act (12 U.S.C. 1813); ``(IV) the term `interest-only' means that, under the terms of the legal obligation, one or more of the periodic payments may be applied solely to accrued interest and not to loan principal; and ``(V) the term `negative amortization' means payment of periodic payments that will result in an increase in the principal balance under the terms of the legal obligation. ``(ii) Safe harbor.--In this section-- ``(I) the term `qualified mortgage' includes any residential mortgage loan-- ``(aa) that is originated and retained in portfolio by a covered institution; ``(bb) that is in compliance with the limitations with respect to prepayment penalties described in subsections (c)(1) and (c)(3); ``(cc) that is in compliance with the requirements of clause (vii) of subparagraph (A); ``(dd) that does not have negative amortization or interest-only features; and ``(ee) for which the covered institution considers and documents the debt, income, and financial resources of the consumer in accordance with clause (iv); and ``(II) a residential mortgage loan described in subclause (I) shall be deemed to meet the requirements of subsection (a). ``(iii) Exception for certain transfers.--A residential mortgage loan described in clause (ii)(I) shall not qualify for the safe harbor under clause (ii) if the legal title to the residential mortgage loan is sold, assigned, or otherwise transferred to another person unless the residential mortgage loan is sold, assigned, or otherwise transferred-- ``(I) to another person by reason of the bankruptcy or failure of a covered institution; ``(II) to a covered institution so long as the loan is retained in portfolio by the covered institution to which the loan is sold, assigned, or otherwise transferred; ``(III) pursuant to a merger of a covered institution with another person or the acquisition of a covered institution by another person or of another person by a covered institution, so long as the loan is retained in portfolio by the person to whom the loan is sold, assigned, or otherwise transferred; or ``(IV) to a wholly owned subsidiary of a covered institution, provided that, after the sale, assignment, or transfer, the residential mortgage loan is considered to be an asset of the covered institution for regulatory accounting purposes. [[Page 132 STAT. 1299]] ``(iv) Consideration and documentation requirements.--The consideration and documentation requirements described in clause (ii)(I)(ee) shall-- ``(I) not be construed to require compliance with, or documentation in accordance with, appendix Q to part 1026 of title 12, Code of Federal Regulations, or any successor regulation; and ``(II) be construed to permit multiple methods of documentation.''. SEC. 102. SAFEGUARDING ACCESS TO HABITAT FOR HUMANITY HOMES. Section 129E(i)(2) of the Truth in Lending Act (15 U.S.C. 1639e(i)(2)) is amended-- (1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly; (2) in the matter preceding clause (i), as so redesignated, by striking ``For purposes of'' and inserting the following: ``(A) In general.--For purposes of''; and (3) by adding at the end the following: ``(B) Rule of construction related to appraisal donations.--If a fee appraiser voluntarily donates appraisal services to an organization eligible to receive tax-deductible charitable contributions, such voluntary donation shall be considered customary and reasonable for the purposes of paragraph (1).''. SEC. 103. EXEMPTION FROM APPRAISALS OF REAL PROPERTY LOCATED IN RURAL AREAS. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is amended by adding at the end the following: ``SEC. 1127. <<NOTE: 12 USC 3356.>> EXEMPTION FROM APPRAISALS OF REAL ESTATE LOCATED IN RURAL AREAS. ``(a) Definitions.--In this section-- ``(1) the term `mortgage originator' has the meaning given the term in section 103 of the Truth in Lending Act (15 U.S.C. 1602); and ``(2) the term `transaction value' means the amount of a loan or extension of credit, including a loan or extension of credit that is part of a pool of loans or extensions of credit. ``(b) Appraisal Not Required.--Except as provided in subsection (d), notwithstanding any other provision of law, an appraisal in connection with a federally related transaction involving real property or an interest in real property is not required if-- ``(1) the real property or interest in real property is located in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations; `` <<NOTE: Deadline.>> (2) not later than 3 days after the date on which the Closing Disclosure Form, made in accordance with the final rule of the Bureau of Consumer Financial Protection entitled `Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)' (78 Fed. Reg. 79730 (December 31, 2013)), relating to the federally related transaction is given to the consumer, the mortgage originator or its agent, directly or indirectly-- [[Page 132 STAT. 1300]] ``(A) has contacted not fewer than 3 State certified appraisers or State licensed appraisers, as applicable, on the mortgage originator's approved appraiser list in the market area in accordance with part 226 of title 12, Code of Federal Regulations; and ``(B) <<NOTE: Time period.>> has documented that no State certified appraiser or State licensed appraiser, as applicable, was available within 5 business days beyond customary and reasonable fee and timeliness standards for comparable appraisal assignments, as documented by the mortgage originator or its agent; ``(3) the transaction value is less than $400,000; and ``(4) the mortgage originator is subject to oversight by a Federal financial institutions regulatory agency. ``(c) Sale, Assignment, or Transfer.--A mortgage originator that makes a loan without an appraisal under the terms of subsection (b) shall not sell, assign, or otherwise transfer legal title to the loan unless-- ``(1) the loan is sold, assigned, or otherwise transferred to another person by reason of the bankruptcy or failure of the mortgage originator; ``(2) the loan is sold, assigned, or otherwise transferred to another person regulated by a Federal financial institutions regulatory agency, so long as the loan is retained in portfolio by the person; ``(3) the sale, assignment, or transfer is pursuant to a merger of the mortgage originator with another person or the acquisition of the mortgage originator by another person or of another person by the mortgage originator; or ``(4) the sale, loan, or transfer is to a wholly owned subsidiary of the mortgage originator, provided that, after the sale, assignment, or transfer, the loan is considered to be an asset of the mortgage originator for regulatory accounting purposes. ``(d) Exception.--Subsection (b) shall not apply if-- ``(1) a Federal financial institutions regulatory agency requires an appraisal under section 225.63(c), 323.3(c), 34.43(c), or 722.3(e) of title 12, Code of Federal Regulations; or ``(2) the loan is a high-cost mortgage, as defined in section 103 of the Truth in Lending Act (15 U.S.C. 1602). ``(e) Anti-Evasion.--Each Federal financial institutions regulatory agency shall ensure that any mortgage originator that the Federal financial institutions regulatory agency oversees that makes a significant amount of loans under subsection (b) is complying with the requirements of subsection (b)(2) with respect to each loan.''. SEC. 104. HOME MORTGAGE DISCLOSURE ACT ADJUSTMENT AND STUDY. (a) In General.--Section 304 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) is amended-- (1) by redesignating subsection (i) as paragraph (3) and adjusting the margins accordingly; (2) by inserting before paragraph (3), as so redesignated, the following: ``(i) <<NOTE: Time periods.>> Exemptions.-- [[Page 132 STAT. 1301]] ``(1) Closed-end mortgage loans.--With respect to an insured depository institution or insured credit union, the requirements of paragraphs (5) and (6) of subsection (b) shall not apply with respect to closed-end mortgage loans if the insured depository institution or insured credit union originated fewer than 500 closed-end mortgage loans in each of the 2 preceding calendar years. ``(2) Open-end lines of credit.--With respect to an insured depository institution or insured credit union, the requirements of paragraphs (5) and (6) of subsection (b) shall not apply with respect to open-end lines of credit if the insured depository institution or insured credit union originated fewer than 500 open-end lines of credit in each of the 2 preceding calendar years. ``(3) Required compliance.--Notwithstanding paragraphs (1) and (2), an insured depository institution shall comply with paragraphs (5) and (6) of subsection (b) if the insured depository institution has received a rating of `needs to improve record of meeting community credit needs' during each of its 2 most recent examinations or a rating of `substantial noncompliance in meeting community credit needs' on its most recent examination under section 807(b)(2) of the Community Reinvestment Act of 1977 (12 U.S.C. 2906(b)(2)).''; and (3) by adding at the end the following: ``(o) Definitions.--In this section-- ``(1) the term `insured credit union' has the meaning given the term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and ``(2) the term `insured depository institution' has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).''. (b) Lookback Study.-- (1) <<NOTE: Time period.>> Study.--Not earlier than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study to evaluate the impact of the amendments made by subsection (a) on the amount of data available under the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) at the national and local level. (2) Report.--Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that includes the findings and conclusions of the Comptroller General with respect to the study required under paragraph (1). (c) Technical Correction.--Section 304(i)(3) of the Home Mortgage Disclosure Act of 1975, as so redesignated by subsection (a)(1), is amended by striking ``section 303(2)(A)'' and inserting ``section 303(3)(A)''. SEC. 105. CREDIT UNION RESIDENTIAL LOANS. (a) Removal From Member Business Loan Limitation.--Section 107A(c)(1)(B)(i) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)(i)) is amended by striking ``that is the primary residence of a member''. (b) <<NOTE: 12 USC 1757a note.>> Rule of Construction.--Nothing in this section or the amendment made by this section shall preclude the National Credit [[Page 132 STAT. 1302]] Union Administration from treating an extension of credit that is fully secured by a lien on a 1- to 4-family dwelling that is not the primary residence of a member as a member business loan for purposes other than the member business loan limitation requirements under section 107A of the Federal Credit Union Act (12 U.S.C. 1757a). SEC. 106. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS. (a) In General.--The S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) is amended by adding at the end the following: ``SEC. 1518. <<NOTE: 12 USC 5117.>> EMPLOYMENT TRANSITION OF LOAN ORIGINATORS. ``(a) Definitions.--In this section: ``(1) Application state.--The term `application State' means a State in which a registered loan originator or a State- licensed loan originator seeks to be licensed. ``(2) State-licensed mortgage company.--The term `State- licensed mortgage company' means an entity that is licensed or registered under the law of any State to engage in residential mortgage loan origination and processing activities. ``(b) Temporary Authority To Originate Loans for Loan Originators Moving From a Depository Institution to a Non-Depository Institution.-- ``(1) In general.--Upon becoming employed by a State- licensed mortgage company, an individual who is a registered loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the individual-- ``(A) has not had-- ``(i) an application for a loan originator license denied; or ``(ii) a loan originator license revoked or suspended in any governmental jurisdiction; ``(B) has not been subject to, or served with, a cease and desist order-- ``(i) in any governmental jurisdiction; or ``(ii) under section 1514(c); ``(C) has not been convicted of a misdemeanor or felony that would preclude licensure under the law of the application State; ``(D) has submitted an application to be a State- licensed loan originator in the application State; and ``(E) <<NOTE: Time period.>> was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 1-year period preceding the date on which the information required under section 1505(a) is submitted. ``(2) Period.--The period described in this paragraph shall begin on the date on which an individual described in paragraph (1) submits the information required under section 1505(a) and shall end on the earliest of the date-- ``(A) on which the individual withdraws the application to be a State-licensed loan originator in the application State; ``(B) on which the application State denies, or issues a notice of intent to deny, the application; [[Page 132 STAT. 1303]] ``(C) on which the application State grants a State license; or ``(D) that is 120 days after the date on which the individual submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. ``(c) Temporary Authority To Originate Loans for State-Licensed Loan Originators Moving Interstate.-- ``(1) In general.--A State-licensed loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the State-licensed loan originator-- ``(A) meets the requirements of subparagraphs (A), (B), (C), and (D) of subsection (b)(1); ``(B) is employed by a State-licensed mortgage company in the application State; and ``(C) <<NOTE: Time period.>> was licensed in a State that is not the application State during the 30- day period preceding the date on which the information required under section 1505(a) was submitted in connection with the application submitted to the application State. ``(2) Period.--The period described in this paragraph shall begin on the date on which the State-licensed loan originator submits the information required under section 1505(a) in connection with the application submitted to the application State and end on the earliest of the date-- ``(A) on which the State-licensed loan originator withdraws the application to be a State-licensed loan originator in the application State; ``(B) on which the application State denies, or issues a notice of intent to deny, the application; ``(C) on which the application State grants a State license; or ``(D) that is 120 days after the date on which the State-licensed loan originator submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. ``(d) Applicability.-- ``(1) Employer of loan originators.--Any person employing an individual who is deemed to have temporary authority to act as a loan originator in an application State under this section shall be subject to the requirements of this title and to applicable State law to the same extent as if that individual was a State- licensed loan originator licensed by the application State. ``(2) Engaging in mortgage loan activities.--Any individual who is deemed to have temporary authority to act as a loan originator in an application State under this section and who engages in residential mortgage loan origination activities shall be subject to the requirements of this title and to applicable State law to the same extent as if that individual was a State-licensed loan originator licensed by the application State.''. (b) Table of Contents Amendment.--Section 1(b) of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 4501 note) [[Page 132 STAT. 1304]] is amended by inserting after the item relating to section 1517 the following: ``Sec. 1518. Employment transition of loan originators.''. (c) Civil Liability.--Section 1513 of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5112) is amended by striking ``persons who are loan originators or are applying for licensing or registration as loan originators.'' and inserting ``persons who-- ``(1) have applied, are applying, or are licensed or registered through the Nationwide Mortgage Licensing System and Registry; and ``(2) work in an industry with respect to which persons were licensed or registered through the Nationwide Mortgage Licensing System and Registry on the date of enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act.''. (d) <<NOTE: 12 USC 5112 note.>> Effective Date.--This section and the amendments made by this section shall take effect on the date that is 18 months after the date of enactment of this Act. SEC. 107. PROTECTING ACCESS TO MANUFACTURED HOMES. Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended-- (1) by redesignating the second subsection (cc) (relating to definitions relating to mortgage origination and residential mortgage loans) and subsection (dd) as subsections (dd) and (ee), respectively; and (2) in paragraph (2) of subsection (dd), as so redesignated, by striking subparagraph (C) and inserting the following: ``(C) does not include any person who is-- ``(i) not otherwise described in subparagraph (A) or (B) and who performs purely administrative or clerical tasks on behalf of a person who is described in any such subparagraph; or ``(ii) a retailer of manufactured or modular homes or an employee of the retailer if the retailer or employee, as applicable-- ``(I) does not receive compensation or gain for engaging in activities described in subparagraph (A) that is in excess of any compensation or gain received in a comparable cash transaction; ``(II) discloses to the consumer-- ``(aa) in writing any corporate affiliation with any creditor; and ``(bb) if the retailer has a corporate affiliation with any creditor, at least 1 unaffiliated creditor; and ``(III) does not directly negotiate with the consumer or lender on loan terms (including rates, fees, and other costs).''. SEC. 108. ESCROW REQUIREMENTS RELATING TO CERTAIN CONSUMER CREDIT TRANSACTIONS. Section 129D of the Truth in Lending Act (15 U.S.C. 1639d) is amended-- (1) in subsection (c)-- [[Page 132 STAT. 1305]] (A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and adjusting the margins accordingly; (B) in the matter preceding subparagraph (A), as so redesignated, by striking ``The Board'' and inserting the following: ``(1) In general.--The Bureau''; (C) in paragraph (1), as so redesignated, by striking ``the Board'' each place that term appears and inserting ``the Bureau''; and (D) by adding at the end the following: ``(2) Treatment of loans held by smaller institutions.--The Bureau shall, by regulation, exempt from the requirements of subsection (a) any loan made by an insured depository institution or an insured credit union secured by a first lien on the principal dwelling of a consumer if-- ``(A) the insured depository institution or insured credit union has assets of $10,000,000,000 or less; ``(B) during the preceding calendar year, the insured depository institution or insured credit union and its affiliates originated 1,000 or fewer loans secured by a first lien on a principal dwelling; and ``(C) the transaction satisfies the criteria in sections 1026.35(b)(2)(iii)(A), 1026.35(b)(2)(iii)(D), and 1026.35(b)(2)(v) of title 12, Code of Federal Regulations, or any successor regulation.''; and (2) <<NOTE: Definitions.>> in subsection (i), by adding at the end the following: ``(3) Insured credit union.--The term `insured credit union' has the meaning given the term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). ``(4) Insured depository institution.--The term `insured depository institution' has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).''. SEC. 109. NO WAIT FOR LOWER MORTGAGE RATES. (a) In General.--Section 129(b) of the Truth in Lending Act (15 U.S.C. 1639(b)) is amended-- (1) by redesignating paragraph (3) as paragraph (4); and (2) by inserting after paragraph (2) the following: ``(3) No wait for lower rate.--If a creditor extends to a consumer a second offer of credit with a lower annual percentage rate, the transaction may be consummated without regard to the period specified in paragraph (1) with respect to the second offer.''. (b) Sense of Congress.--It is the sense of Congress that, whereas the Bureau of Consumer Financial Protection issued a final rule entitled ``Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)'' (78 Fed. Reg. 79730 (December 31, 2013)) (in this subsection referred to as the ``TRID Rule'') to combine the disclosures a consumer receives in connection with applying for and closing on a mortgage loan, the Bureau of Consumer Financial Protection should endeavor to provide clearer, authoritative guidance on-- (1) the applicability of the TRID Rule to mortgage assumption transactions; [[Page 132 STAT. 1306]] (2) the applicability of the TRID Rule to construction-to- permanent home loans, and the conditions under which those loans can be properly originated; and (3) the extent to which lenders can rely on model disclosures published by the Bureau of Consumer Financial Protection without liability if recent changes to regulations are not reflected in the sample TRID Rule forms published by the Bureau of Consumer Financial Protection. TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT SEC. 201. <<NOTE: 12 USC 5371 note.>> CAPITAL SIMPLIFICATION FOR QUALIFYING COMMUNITY BANKS. (a) Definitions.--In this section: (1) Community bank leverage ratio.--The term ``Community Bank Leverage Ratio'' means the ratio of the tangible equity capital of a qualifying community bank, as reported on the qualifying community bank's applicable regulatory filing with the qualifying community bank's appropriate Federal banking agency, to the average total consolidated assets of the qualifying community bank, as reported on the qualifying community bank's applicable regulatory filing with the qualifying community bank's appropriate Federal banking agency. (2) Generally applicable leverage capital requirements; generally applicable risk-based capital requirements.--The terms ``generally applicable leverage capital requirements'' and ``generally applicable risk-based capital requirements'' have the meanings given those terms in section 171(a) of the Financial Stability Act of 2010 (12 U.S.C. 5371(a)). (3) Qualifying community bank.-- (A) Asset threshold.--The term ``qualifying community bank'' means a depository institution or depository institution holding company with total consolidated assets of less than $10,000,000,000. (B) Risk profile.--The appropriate Federal banking agencies may determine that a depository institution or depository institution holding company (or a class of depository institutions or depository institution holding companies) described in subparagraph (A) is not a qualifying community bank based on the depository institution's or depository institution holding company's risk profile, which shall be based on consideration of-- (i) off-balance sheet exposures; (ii) trading assets and liabilities; (iii) total notional derivatives exposures; and (iv) such other factors as the appropriate Federal banking agencies determine appropriate. (b) <<NOTE: Notice.>> Community Bank Leverage Ratio.--The appropriate Federal banking agencies shall, through notice and comment rule making under section 553 of title 5, United States Code-- (1) develop a Community Bank Leverage Ratio of not less than 8 percent and not more than 10 percent for qualifying community banks; and [[Page 132 STAT. 1307]] (2) <<NOTE: Procedures.>> establish procedures for treatment of a qualifying community bank that has a Community Bank Leverage Ratio that falls below the percentage developed under paragraph (1) after exceeding the percentage developed under paragraph (1). (c) Capital Compliance.-- (1) In general.--Any qualifying community bank that exceeds the Community Bank Leverage Ratio developed under subsection (b)(1) shall be considered to have met-- (A) the generally applicable leverage capital requirements and the generally applicable risk-based capital requirements; (B) in the case of a qualifying community bank that is a depository institution, the capital ratio requirements that are required in order to be considered well capitalized under section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o) and any regulation implementing that section; and (C) any other capital or leverage requirements to which the qualifying community bank is subject. (2) Existing authorities.--Nothing in paragraph (1) shall limit the authority of the appropriate Federal banking agencies as in effect on the date of enactment of this Act. (d) Consultation.--The appropriate Federal banking agencies shall-- (1) consult with the applicable State bank supervisors in carrying out this section; and (2) <<NOTE: Notification.>> notify the applicable State bank supervisor of any qualifying community bank that it supervises that exceeds, or does not exceed after previously exceeding, the Community Bank Leverage ratio developed under subsection (b)(1). SEC. 202. LIMITED EXCEPTION FOR RECIPROCAL DEPOSITS. (a) In General.--Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following: ``(i) Limited Exception for Reciprocal Deposits.-- ``(1) In general.--Reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such reciprocal deposits does not exceed the lesser of-- ``(A) $5,000,000,000; or ``(B) an amount equal to 20 percent of the total liabilities of the agent institution. ``(2) Definitions.--In this subsection: ``(A) Agent institution.--The term `agent institution' means an insured depository institution that places a covered deposit through a deposit placement network at other insured depository institutions in amounts that are less than or equal to the standard maximum deposit insurance amount, specifying the interest rate to be paid for such amounts, if the insured depository institution-- ``(i)(I) when most recently examined under section 10(d) was found to have a composite condition of outstanding or good; and ``(II) is well capitalized; [[Page 132 STAT. 1308]] ``(ii) has obtained a waiver pursuant to subsection (c); or ``(iii) does not receive an amount of reciprocal deposits that causes the total amount of reciprocal deposits held by the agent institution to be greater than the average of the total amount of reciprocal deposits held by the agent institution on the last day of each of the 4 calendar quarters preceding the calendar quarter in which the agent institution was found not to have a composite condition of outstanding or good or was determined to be not well capitalized. ``(B) Covered deposit.--The term `covered deposit' means a deposit that-- ``(i) is submitted for placement through a deposit placement network by an agent institution; and ``(ii) does not consist of funds that were obtained for the agent institution, directly or indirectly, by or through a deposit broker before submission for placement through a deposit placement network. ``(C) Deposit placement network.--The term `deposit placement network' means a network in which an insured depository institution participates, together with other insured depository institutions, for the processing and receipt of reciprocal deposits. ``(D) Network member bank.--The term `network member bank' means an insured depository institution that is a member of a deposit placement network. ``(E) Reciprocal deposits.--The term `reciprocal deposits' means deposits received by an agent institution through a deposit placement network with the same maturity (if any) and in the same aggregate amount as covered deposits placed by the agent institution in other network member banks. ``(F) Well capitalized.--The term `well capitalized' has the meaning given the term in section 38(b)(1).''. (b) Interest Rate Restriction.--Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by striking subsection (e) and inserting the following: ``(e) Restriction on Interest Rate Paid.-- ``(1) Definitions.--In this subsection-- ``(A) the terms `agent institution', `reciprocal deposits', and `well capitalized' have the meanings given those terms in subsection (i); and ``(B) the term `covered insured depository institution' means an insured depository institution that-- ``(i) under subsection (c) or (d), accepts funds obtained, directly or indirectly, by or through a deposit broker; or ``(ii) while acting as an agent institution under subsection (i), accepts reciprocal deposits while not well capitalized. ``(2) Prohibition.--A covered insured depository institution may not pay a rate of interest on funds or reciprocal deposits described in paragraph (1) that, at the time that the funds or reciprocal deposits are accepted, significantly exceeds the limit set forth in paragraph (3). [[Page 132 STAT. 1309]] ``(3) Limit on interest rates.--The limit on the rate of interest referred to in paragraph (2) shall be-- ``(A) the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution; or ``(B) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the normal market area of the covered insured depository institution.''. SEC. 203. COMMUNITY BANK RELIEF. Section 13(h)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(h)(1)) is amended-- (1) in subparagraph (D), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly; (2) by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and adjusting the margins accordingly; (3) in the matter preceding clause (i), as so redesignated, in the second sentence, by striking ``institution that functions solely in a trust or fiduciary capacity, if--'' and inserting the following: ``institution-- ``(A) that functions solely in a trust or fiduciary capacity, if--''; (4) in clause (iv)(II), as so redesignated, by striking the period at the end and inserting ``; or''; and (5) by adding at the end the following: ``(B) that does not have and is not controlled by a company that has-- ``(i) more than $10,000,000,000 in total consolidated assets; and ``(ii) total trading assets and trading liabilities, as reported on the most recent applicable regulatory filing filed by the institution, that are more than 5 percent of total consolidated assets.''. SEC. 204. REMOVING NAMING RESTRICTIONS. Section 13 of the Bank Holding Company Act of 1956 (12 U.S.C. 1851) is amended-- (1) in subsection (d)(1)(G)(vi), by inserting before the semicolon the following: ``, except that the hedge fund or private equity fund may share the same name or a variation of the same name as a banking entity that is an investment adviser to the hedge fund or private equity fund, if-- ``(I) such investment adviser is not an insured depository institution, a company that controls an insured depository institution, or a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106); ``(II) such investment adviser does not share the same name or a variation of the same name as an insured depository institution, any company that controls an insured depository institution, or any company that is treated as a bank holding [[Page 132 STAT. 1310]] company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106); and ``(III) such name does not contain the word `bank' ''; and (2) in subsection (h)(5)(C), by inserting before the period the following: ``, except as permitted under subsection (d)(1)(G)(vi)''. SEC. 205. SHORT FORM CALL REPORTS. Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)) is amended by adding at the end the following: ``(12) Short form reporting.-- ``(A) <<NOTE: Regulations.>> In general.--The appropriate Federal banking agencies shall issue regulations that allow for a reduced reporting requirement for a covered depository institution when the institution makes the first and third report of condition for a year, as required under paragraph (3). ``(B) Definition.--In this paragraph, the term `covered depository institution' means an insured depository institution that-- ``(i) has less than $5,000,000,000 in total consolidated assets; and ``(ii) satisfies such other criteria as the appropriate Federal banking agencies determine appropriate.''. SEC. 206. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO OPERATE AS COVERED SAVINGS ASSOCIATIONS. The Home Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended by inserting after section 5 (12 U.S.C. 1464) the following: ``SEC. 5A. <<NOTE: 12 USC 1464a.>> ELECTION TO OPERATE AS A COVERED SAVINGS ASSOCIATION. ``(a) Definition.--In this section, the term `covered savings association' means a Federal savings association that makes an election that is approved under subsection (b). ``(b) <<NOTE: Effective dates.>> Election.-- ``(1) In general.--In accordance with the rules issued under subsection (f), a Federal savings association with total consolidated assets equal to or less than $20,000,000,000, as reported by the association to the Comptroller as of December 31, 2017, may elect to operate as a covered savings association by submitting a notice to the Comptroller of that election. ``(2) <<NOTE: Notification.>> Approval.--A Federal savings association shall be deemed to be approved to operate as a covered savings association beginning on the date that is 60 days after the date on which the Comptroller receives the notice submitted under paragraph (1), unless the Comptroller notifies the Federal savings association that the Federal savings association is not eligible. ``(c) Rights and Duties.--Notwithstanding any other provision of law, and except as otherwise provided in this section, a covered savings association shall-- ``(1) have the same rights and privileges as a national bank that has the main office of the national bank situated in the same location as the home office of the covered savings association; and [[Page 132 STAT. 1311]] ``(2) be subject to the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply to a national bank described in paragraph (1). ``(d) Treatment of Covered Savings Associations.--A covered savings association shall be treated as a Federal savings association for the purposes-- ``(1) of governance of the covered savings association, including incorporation, bylaws, boards of directors, shareholders, and distribution of dividends; ``(2) of consolidation, merger, dissolution, conversion (including conversion to a stock bank or to another charter), conservatorship, and receivership; and ``(3) <<NOTE: Determination.>> determined by regulation of the Comptroller. ``(e) Existing Branches.--A covered savings association may continue to operate any branch or agency that the covered savings association operated on the date on which an election under subsection (b) is approved. ``(f) Rule Making.--The Comptroller shall issue rules to carry out this section-- ``(1) that establish streamlined standards and procedures that clearly identify required documentation and timelines for an election under subsection (b); ``(2) that require a Federal savings association that makes an election under subsection (b) to identify specific assets and subsidiaries that-- ``(A) do not conform to the requirements for assets and subsidiaries of a national bank; and ``(B) are held by the Federal savings association on the date on which the Federal savings association submits a notice of the election; ``(3) that establish-- ``(A) a transition process for bringing the assets and subsidiaries described in paragraph (2) into conformance with the requirements for a national bank; and ``(B) procedures for allowing the Federal savings association to submit to the Comptroller an application to continue to hold assets and subsidiaries described in paragraph (2) after electing to operate as a covered savings association; ``(4) that establish standards and procedures to allow a covered savings association to-- ``(A) terminate an election under subsection (b) after an appropriate period of time; and ``(B) make a subsequent election under subsection (b) after terminating an election under subparagraph (A); ``(5) that clarify requirements for the treatment of covered savings associations, including the provisions of law that apply to covered savings associations; and ``(6) <<NOTE: Determination.>> as the Comptroller determines necessary in the interests of safety and soundness. ``(g) Grandfathered Covered Savings Associations.--Subject to the rules issued under subsection (f), a covered savings association may continue to operate as a covered savings association if, after the date on which the election is made under subsection (b), the covered savings association has total consolidated assets greater than $20,000,000,000.''. [[Page 132 STAT. 1312]] SEC. 207. SMALL BANK HOLDING COMPANY POLICY STATEMENT. (a) <<NOTE: 12 USC 5371 note.>> Definitions.--In this section: (1) Board.--The term ``Board'' means the Board of Governors of the Federal Reserve System. (2) Savings and loan holding company.--The term ``savings and loan holding company'' has the meaning given the term in section 10(a) of the Home Owners' Loan Act (12 U.S.C. 1467a(a)). (b) <<NOTE: Deadline. 12 USC 5371 note.>> Changes Required to Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors.--Not later than 180 days after the date of enactment of this Act, the Board shall revise appendix C to part 225 of title 12, Code of Federal Regulations (commonly known as the ``Small Bank Holding Company and Savings and Loan Holding Company Policy Statement''), to raise the consolidated asset threshold under that appendix from $1,000,000,000 to $3,000,000,000 for any bank holding company or savings and loan holding company that-- (1) is not engaged in significant nonbanking activities either directly or through a nonbank subsidiary; (2) does not conduct significant off-balance sheet activities (including securitization and asset management or administration) either directly or through a nonbank subsidiary; and (3) does not have a material amount of debt or equity securities outstanding (other than trust preferred securities) that are registered with the Securities and Exchange Commission. (c) <<NOTE: 12 USC 5371 note.>> Exclusions.--The Board may exclude any bank holding company or savings and loan holding company, regardless of asset size, from the revision under subsection (b) if the Board determines that such action is warranted for supervisory purposes. (d) Conforming Amendment.--Section 171(b)(5) of the Financial Stability Act of 2010 (12 U.S.C. 5371(b)(5)) is amended by striking subparagraph (C) and inserting the following: ``(C) any bank holding company or savings and loan holding company that is subject to the application of appendix C to part 225 of title 12, Code of Federal Regulations (commonly known as the `Small Bank Holding Company and Savings and Loan Holding Company Policy Statement').''. SEC. 208. APPLICATION OF THE EXPEDITED FUNDS AVAILABILITY ACT. (a) In General.--The Expedited Funds Availability Act (12 U.S.C. 4001 et seq.) is amended-- (1) in section 602 (12 U.S.C. 4001)-- (A) in paragraph (20), by inserting ``, located in the United States,'' after ``ATM''; (B) in paragraph (21), by inserting ``American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,'' after ``Puerto Rico,''; and (C) in paragraph (23), by inserting ``American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,'' after ``Puerto Rico,''; and (2) in section 603(d)(2)(A) (12 U.S.C. 4002(d)(2)(A)), by inserting ``American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,'' after ``Puerto Rico,''. [[Page 132 STAT. 1313]] (b) Effective Date.--The amendments made by this section shall take effect on the date that is 30 days after the date of enactment of this Act. SEC. 209. SMALL PUBLIC HOUSING AGENCIES. (a) Small Public Housing Agencies.--Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following: ``SEC. 38. <<NOTE: 42 USC 1437z-10.>> SMALL PUBLIC HOUSING AGENCIES. ``(a) Definitions.--In this section: ``(1) Housing voucher program.--The term `housing voucher program' means a program for tenant-based assistance under section 8. ``(2) Small public housing agency.--The term `small public housing agency' means a public housing agency-- ``(A) for which the sum of the number of public housing dwelling units administered by the agency and the number of vouchers under section 8(o) administered by the agency is 550 or fewer; and ``(B) that predominantly operates in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations. ``(3) Troubled small public housing agency.--The term `troubled small public housing agency' means a small public housing agency designated by the Secretary as a troubled small public housing agency under subsection (c)(3). ``(b) Applicability.--Except as otherwise provided in this section, a small public housing agency shall be subject to the same requirements as a public housing agency. ``(c) Program Inspections and Evaluations.-- ``(1) Public housing projects.-- ``(A) <<NOTE: Time periods.>> Frequency of inspections by secretary.--The Secretary shall carry out an inspection of the physical condition of a small public housing agency's public housing projects not more frequently than once every 3 years, unless the agency has been designated by the Secretary as a troubled small public housing agency based on deficiencies in the physical condition of its public housing projects. Nothing contained in this subparagraph relieves the Secretary from conducting lead safety inspections or assessments in accordance with procedures established by the Secretary under section 302 of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822). ``(B) Standards.--The Secretary shall apply to small public housing agencies the same standards for the acceptable condition of public housing projects that apply to projects assisted under section 8. ``(2) <<NOTE: Time periods. Determinations.>> Housing voucher program.--Except as required by section 8(o)(8)(F), a small public housing agency administering assistance under section 8(o) shall make periodic physical inspections of each assisted dwelling unit not less frequently than once every 3 years to determine whether the unit is maintained in accordance with the requirements under section 8(o)(8)(A). Nothing contained in this paragraph relieves a small public housing agency from conducting lead safety inspections or assessments in accordance with procedures established by [[Page 132 STAT. 1314]] the Secretary under section 302 of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822). ``(3) Troubled small public housing agencies.-- ``(A) <<NOTE: Determination.>> Public housing program.--Notwithstanding any other provision of law, the Secretary may designate a small public housing agency as a troubled small public housing agency with respect to the public housing program of the small public housing agency if the Secretary determines that the agency has failed to maintain the public housing units of the small public housing agency in a satisfactory physical condition, based upon an inspection conducted by the Secretary. ``(B) <<NOTE: Determination.>> Housing voucher program.--Notwithstanding any other provision of law, the Secretary may designate a small public housing agency as a troubled small public housing agency with respect to the housing voucher program of the small public housing agency if the Secretary determines that the agency has failed to comply with the inspection requirements under paragraph (2). ``(C) Appeals.-- ``(i) Establishment.--The Secretary shall establish an appeals process under which a small public housing agency may dispute a designation as a troubled small public housing agency. ``(ii) Official.--The appeals process established under clause (i) shall provide for a decision by an official who has not been involved, and is not subordinate to a person who has been involved, in the original determination to designate a small public housing agency as a troubled small public housing agency. ``(D) Corrective action agreement.-- ``(i) <<NOTE: Deadline.>> Agreement required.--Not later than 60 days after the date on which a small public housing agency is designated as a troubled public housing agency under subparagraph (A) or (B), the Secretary and the small public housing agency shall enter into a corrective action agreement under which the small public housing agency shall undertake actions to correct the deficiencies upon which the designation is based. ``(ii) Terms of agreement.--A corrective action agreement entered into under clause (i) shall-- ``(I) <<NOTE: Time period.>> have a term of 1 year, and shall be renewable at the option of the Secretary; ``(II) provide, where feasible, for technical assistance to assist the public housing agency in curing its deficiencies; ``(III) provide for-- ``(aa) reconsideration of the designation of the small public housing agency as a troubled small public housing agency not less frequently than annually; and ``(bb) <<NOTE: Determination.>> termination of the agreement when the Secretary determines that the small public housing agency is no longer a troubled small public housing agency; and [[Page 132 STAT. 1315]] ``(IV) provide that in the event of substantial noncompliance by the small public housing agency under the agreement, the Secretary may-- ``(aa) contract with another public housing agency or a private entity to manage the public housing of the troubled small public housing agency; ``(bb) withhold funds otherwise distributable to the troubled small public housing agency; ``(cc) assume possession of, and direct responsibility for, managing the public housing of the troubled small public housing agency; ``(dd) petition for the appointment of a receiver, in accordance with section 6(j)(3)(A)(ii); and ``(ee) exercise any other remedy available to the Secretary in the event of default under the public housing annual contributions contract entered into by the small public housing agency under section 5. ``(E) Emergency actions.--Nothing in this paragraph may be construed to prohibit the Secretary from taking any emergency action necessary to protect Federal financial resources or the health or safety of residents of public housing projects. ``(d) Reduction of Administrative Burdens.-- ``(1) Exemption.--Notwithstanding any other provision of law, a small public housing agency shall be exempt from any environmental review requirements with respect to a development or modernization project having a total cost of not more than $100,000. ``(2) Streamlined procedures.--The Secretary shall, by rule, establish streamlined procedures for environmental reviews of small public housing agency development and modernization projects having a total cost of more than $100,000.''. (b) Energy Conservation.--Section 9(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)(2)) is amended by adding at the end the following: ``(D) Freeze of consumption levels.-- ``(i) <<NOTE: Time periods.>> In general.--A small public housing agency, as defined in section 38(a), may elect to be paid for its utility and waste management costs under the formula for a period, at the discretion of the small public housing agency, of not more than 20 years based on the small public housing agency's average annual consumption during the 3-year period preceding the year in which the election is made (in this subparagraph referred to as the `consumption base level'). ``(ii) <<NOTE: Time period.>> Initial adjustment in consumption base level.--The Secretary shall make an initial one-time adjustment in the consumption base level to account for differences in the heating degree day average over the most recent 20-year period compared to the average in the consumption base level. [[Page 132 STAT. 1316]] ``(iii) Adjustments in consumption base level.--The Secretary shall make adjustments in the consumption base level to account for an increase or reduction in units, a change in fuel source, a change in resident controlled electricity consumption, or for other reasons. ``(iv) Savings.--All cost savings resulting from an election made by a small public housing agency under this subparagraph-- ``(I) shall accrue to the small public housing agency; and ``(II) may be used for any public housing purpose at the discretion of the small public housing agency. ``(v) Third parties.--A small public housing agency making an election under this subparagraph-- ``(I) may use, but shall not be required to use, the services of a third party in its energy conservation program; and ``(II) shall have the sole discretion to determine the source, and terms and conditions, of any financing used for its energy conservation program.''. (c) <<NOTE: 42 USC 1437k note.>> Reporting by Agencies Operating in Consortia.--Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall develop and deploy all electronic information systems necessary to accommodate full consolidated reporting by public housing agencies, as defined in section 3(b)(6) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)), electing to operate in consortia under section 13(a) of such Act (42 U.S.C. 1437k(a)). (d) <<NOTE: 42 USC 1437g note.>> Effective Date.--The amendments made by subsections (a) and (b) shall take effect on the date that is 60 days after the date of enactment of this Act. (e) <<NOTE: Deadline. Web posting. Guidance. 42 USC 1437d note.>> Shared Waiting Lists.--Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall make available to interested public housing agencies and owners of multifamily properties receiving assistance from the Department of Housing and Urban Development 1 or more software programs that will facilitate the voluntary use of a shared waiting list by multiple public housing agencies or owners receiving assistance, and shall publish on the website of the Department of Housing and Urban Development procedural guidance for implementing shared waiting lists that includes information on how to obtain the software. SEC. 210. EXAMINATION CYCLE. Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended-- (1) in paragraph (4)(A), by striking ``$1,000,000,000'' and inserting ``$3,000,000,000''; and (2) in paragraph (10), by striking ``$1,000,000,000'' and inserting ``$3,000,000,000''. SEC. 211. <<NOTE: 31 USC 313 note.>> INTERNATIONAL INSURANCE CAPITAL STANDARDS ACCOUNTABILITY. (a) Findings.--Congress finds that-- [[Page 132 STAT. 1317]] (1) the Secretary of the Treasury, Board of Governors of the Federal Reserve System, and Director of the Federal Insurance Office shall support increasing transparency at any global insurance or international standard-setting regulatory or supervisory forum in which they participate, including supporting and advocating for greater public observer access to working groups and committee meetings of the International Association of Insurance Supervisors; and (2) to the extent that the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, and the Director of the Federal Insurance Office take a position or reasonably intend to take a position with respect to an insurance proposal by a global insurance regulatory or supervisory forum, the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, and the Director of the Federal Insurance Office shall achieve consensus positions with State insurance regulators through the National Association of Insurance Commissioners, when they are United States participants in negotiations on insurance issues before the International Association of Insurance Supervisors, Financial Stability Board, or any other international forum of financial regulators or supervisors that considers such issues. (b) Insurance Policy Advisory Committee.-- (1) Establishment.--There is established the Insurance Policy Advisory Committee on International Capital Standards and Other Insurance Issues at the Board of Governors of the Federal Reserve System. (2) Membership.--The Committee shall be composed of not more than 21 members, all of whom represent a diverse set of expert perspectives from the various sectors of the United States insurance industry, including life insurance, property and casualty insurance and reinsurance, agents and brokers, academics, consumer advocates, or experts on issues facing underserved insurance communities and consumers. (c) Reports.-- (1) Reports and testimony by secretary of the treasury and chairman of the federal reserve.-- (A) In general.--The Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System, or their designee, shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives, an annual report and provide annual testimony to the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives on the efforts of the Secretary and the Chairman with the National Association of Insurance Commissioners with respect to global insurance regulatory or supervisory forums, including-- (i) a description of the insurance regulatory or supervisory standard-setting issues under discussion at international standard-setting bodies, including the Financial Stability Board and the International Association of Insurance Supervisors; [[Page 132 STAT. 1318]] (ii) a description of the effects that proposals discussed at international insurance regulatory or supervisory forums of insurance could have on consumer and insurance markets in the United States; (iii) a description of any position taken by the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, and the Director of the Federal Insurance Office in international insurance discussions; and (iv) a description of the efforts by the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, and the Director of the Federal Insurance Office to increase transparency at the Financial Stability Board with respect to insurance proposals and the International Association of Insurance Supervisors, including efforts to provide additional public access to working groups and committees of the International Association of Insurance Supervisors. (B) Termination.--This paragraph shall terminate on December 31, 2024. (2) Reports and testimony by national association of insurance commissioners.--The National Association of Insurance Commissioners may provide testimony to Congress on the issues described in paragraph (1)(A). (3) Joint report by the chairman of the federal reserve and the director of the federal insurance office.-- (A) <<NOTE: Consultation. Study.>> In general.--The Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve System, and the Director of the Federal Insurance Office shall, in consultation with the National Association of Insurance Commissioners, complete a study on, and submit to Congress a report on the results of the study, the impact on consumers and markets in the United States before supporting or consenting to the adoption of any final international insurance capital standard. (B) Notice and comment.-- (i) Notice.--The Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve System, and the Director of the Federal Insurance Office shall provide public notice before the date on which drafting a report required under subparagraph (A) is commenced and after the date on which the draft of the report is completed. (ii) <<NOTE: Time period.>> Opportunity for comment.--There shall be an opportunity for public comment for a period beginning on the date on which the report is submitted under subparagraph (A) and ending on the date that is 60 days after the date on which the report is submitted. (C) Review by comptroller general.--The Secretary of the Treasury, Chairman of the Board of Governors of the Federal Reserve System, and the Director of the Federal Insurance Office shall submit to the Comptroller General of the United States the report described in subparagraph (A) for review. [[Page 132 STAT. 1319]] (4) Report on increase in transparency.--Not later than 180 days after the date of enactment of this Act, the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, or their designees, shall submit to Congress a report and provide testimony to Congress on the efforts of the Chairman and the Secretary to increase transparency at meetings of the International Association of Insurance Supervisors. SEC. 212. BUDGET TRANSPARENCY FOR THE NCUA. Section 209(b) of the Federal Credit Union Act (12 U.S.C. 1789(b)) is amended-- (1) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; (2) by inserting before paragraph (2), as so redesignated, the following: ``(1) on an annual basis and prior to the submission of the detailed business-type budget required under paragraph (2)-- ``(A) <<NOTE: Public information. Federal Register, publication.>> make publicly available and publish in the Federal Register a draft of the detailed business- type budget; and ``(B) hold a public hearing, with public notice provided of the hearing, during which the public may submit comments on the draft of the detailed business- type budget;''; and (3) in paragraph (2), as so redesignated-- (A) by inserting ``detailed'' after ``submit a''; and (B) by inserting ``, which shall address any comment submitted by the public under paragraph (1)(B)'' after ``Control Act''. SEC. 213. <<NOTE: 12 USC 1829c.>> MAKING ONLINE BANKING INITIATION LEGAL AND EASY. (a) Definitions.--In this section: (1) Affiliate.--The term ``affiliate'' has the meaning given the term in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841). (2) Driver's license.--The term ``driver's license'' means a license issued by a State to an individual that authorizes the individual to operate a motor vehicle on public streets, roads, or highways. (3) Federal bank secrecy laws.--The term ``Federal bank secrecy laws'' means-- (A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); (B) section 123 of Public Law 91-508 (12 U.S.C. 1953); and (C) subchapter II of chapter 53 of title 31, United States Code. (4) Financial institution.--The term ``financial institution'' means-- (A) an insured depository institution; (B) an insured credit union; or (C) any affiliate of an insured depository institution or insured credit union. (5) Financial product or service.--The term ``financial product or service'' has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481). [[Page 132 STAT. 1320]] (6) Insured credit union.--The term ``insured credit union'' has the meaning given the term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (7) Insured depository institution.--The term ``insured depository institution'' has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (8) Online service.--The term ``online service'' means any Internet-based service, such as a website or mobile application. (9) Personal identification card.--The term ``personal identification card'' means an identification document issued by a State or local government to an individual solely for the purpose of identification of that individual. (10) Personal information.--The term ``personal information'' means the information displayed on or electronically encoded on a driver's license or personal identification card that is reasonably necessary to fulfill the purpose and uses permitted by subsection (b). (11) Scan.--The term ``scan'' means the act of using a device or software to decipher, in an electronically readable format, personal information displayed on or electronically encoded on a driver's license or personal identification card. (12) State.--The term ``State'' means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other commonwealth, possession, or territory of the United States. (b) Use of a Driver's License or Personal Identification Card.-- (1) In general.--When an individual initiates a request through an online service to open an account with a financial institution or obtain a financial product or service from a financial institution, the financial institution may record personal information from a scan of the driver's license or personal identification card of the individual, or make a copy or receive an image of the driver's license or personal identification card of the individual, and store or retain such information in any electronic format for the purposes described in paragraph (2). (2) Uses of information.--Except as required to comply with Federal bank secrecy laws, a financial institution may only use the information obtained under paragraph (1)-- (A) to verify the authenticity of the driver's license or personal identification card; (B) to verify the identity of the individual; and (C) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening an account or obtaining a financial product or service. (3) Deletion of image.--A financial institution that makes a copy or receives an image of a driver's license or personal identification card of an individual in accordance with paragraphs (1) and (2) shall, after using the image for the purposes described in paragraph (2), permanently delete-- (A) any image of the driver's license or personal identification card, as applicable; and (B) any copy of any such image. (4) Disclosure of personal information.--Nothing in this section shall be construed to amend, modify, or otherwise [[Page 132 STAT. 1321]] affect any State or Federal law that governs a financial institution's disclosure and security of personal information that is not publicly available. (c) Relation to State Law.--The provisions of this section shall preempt and supersede any State law that conflicts with a provision of this section, but only to the extent of such conflict. SEC. 214. PROMOTING CONSTRUCTION AND DEVELOPMENT ON MAIN STREET. The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by adding at the end the following new section: ``SEC. 51. <<NOTE: 12 USC 1831bb.>> CAPITAL REQUIREMENTS FOR CERTAIN ACQUISITION, DEVELOPMENT, OR CONSTRUCTION LOANS. ``(a) In General.--The appropriate Federal banking agencies may only require a depository institution to assign a heightened risk weight to a high volatility commercial real estate (HVCRE) exposure (as such term is defined under section 324.2 of title 12, Code of Federal Regulations, as of October 11, 2017, or if a successor regulation is in effect as of the date of the enactment of this section, such term or any successor term contained in such successor regulation) under any risk-based capital requirement if such exposure is an HVCRE ADC loan. ``(b) <<NOTE: Definition.>> HVCRE ADC Loan Defined.--For purposes of this section and with respect to a depository institution, the term `HVCRE ADC loan'-- ``(1) means a credit facility secured by land or improved real property that, prior to being reclassified by the depository institution as a non-HVCRE ADC loan pursuant to subsection (d)-- ``(A) primarily finances, has financed, or refinances the acquisition, development, or construction of real property; ``(B) has the purpose of providing financing to acquire, develop, or improve such real property into income-producing real property; and ``(C) is dependent upon future income or sales proceeds from, or refinancing of, such real property for the repayment of such credit facility; ``(2) does not include a credit facility financing-- ``(A) the acquisition, development, or construction of properties that are-- ``(i) one- to four-family residential properties; ``(ii) real property that would qualify as an investment in community development; or ``(iii) agricultural land; ``(B) the acquisition or refinance of existing income-producing real property secured by a mortgage on such property, if the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property, in accordance with the institution's applicable loan underwriting criteria for permanent financings; ``(C) improvements to existing income-producing improved real property secured by a mortgage on such property, if the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property, in accordance with the [[Page 132 STAT. 1322]] institution's applicable loan underwriting criteria for permanent financings; or ``(D) commercial real property projects in which-- ``(i) the loan-to-value ratio is less than or equal to the applicable maximum supervisory loan- to-value ratio as determined by the appropriate Federal banking agency; ``(ii) the borrower has contributed capital of at least 15 percent of the real property's appraised, `as completed' value to the project in the form of-- ``(I) cash; ``(II) unencumbered readily marketable assets; ``(III) paid development expenses out-of-pocket; or ``(IV) contributed real property or improvements; and ``(iii) the borrower contributed the minimum amount of capital described under clause (ii) before the depository institution advances funds (other than the advance of a nominal sum made in order to secure the depository institution's lien against the real property) under the credit facility, and such minimum amount of capital contributed by the borrower is contractually required to remain in the project until the credit facility has been reclassified by the depository institution as a non-HVCRE ADC loan under subsection (d); ``(3) does not include any loan made prior to January 1, 2015; and ``(4) does not include a credit facility reclassified as a non-HVCRE ADC loan under subsection (d). ``(c) Value of Contributed Real Property.--For purposes of this section, the value of any real property contributed by a borrower as a capital contribution shall be the appraised value of the property as determined under standards prescribed pursuant to section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339), in connection with the extension of the credit facility or loan to such borrower. ``(d) Reclassification as a Non-HVRCE ADC Loan.--For purposes of this section and with respect to a credit facility and a depository institution, upon-- ``(1) the substantial completion of the development or construction of the real property being financed by the credit facility; and ``(2) cash flow being generated by the real property being sufficient to support the debt service and expenses of the real property, in accordance with the institution's applicable loan underwriting criteria for permanent financings, the credit facility may be reclassified by the depository institution as a Non-HVCRE ADC loan. ``(e) Existing Authorities.--Nothing in this section shall limit the supervisory, regulatory, or enforcement authority of an appropriate Federal banking agency to further the safe and sound operation of an institution under the supervision of the appropriate Federal banking agency.''. [[Page 132 STAT. 1323]] SEC. 215. <<NOTE: 42 USC 405b.>> REDUCING IDENTITY FRAUD. (a) Purpose.--The purpose of this section is to reduce the prevalence of synthetic identity fraud, which disproportionally affects vulnerable populations, such as minors and recent immigrants, by facilitating the validation by permitted entities of fraud protection data, pursuant to electronically received consumer consent, through use of a database maintained by the Commissioner. (b) Definitions.--In this section: (1) Commissioner.--The term ``Commissioner'' means the Commissioner of the Social Security Administration. (2) Financial institution.--The term ``financial institution'' has the meaning given the term in section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809). (3) Fraud protection data.--The term ``fraud protection data'' means a combination of the following information with respect to an individual: (A) The name of the individual (including the first name and any family forename or surname of the individual). (B) The social security number of the individual. (C) The date of birth (including the month, day, and year) of the individual. (4) Permitted entity.--The term ``permitted entity'' means a financial institution or a service provider, subsidiary, affiliate, agent, subcontractor, or assignee of a financial institution. (c) Efficiency.-- (1) Reliance on existing methods.--The Commissioner shall evaluate the feasibility of making modifications to any database that is in existence as of the date of enactment of this Act or a similar resource such that the database or resource-- (A) is reasonably designed to effectuate the purpose of this section; and (B) meets the requirements of subsection (d). (2) Execution.--The Commissioner shall make the modifications necessary to any database that is in existence as of the date of enactment of this Act or similar resource, or develop a database or similar resource, to effectuate the requirements described in paragraph (1). (d) Protection of Vulnerable Consumers.--The database or similar resource described in subsection (c) shall-- (1) compare fraud protection data provided in an inquiry by a permitted entity against such information maintained by the Commissioner in order to confirm (or not confirm) the validity of the information provided; (2) be scalable and accommodate reasonably anticipated volumes of verification requests from permitted entities with commercially reasonable uptime and availability; and (3) allow permitted entities to submit-- (A) 1 or more individual requests electronically for real-time machine-to-machine (or similar functionality) accurate responses; and (B) multiple requests electronically, such as those provided in a batch format, for accurate electronic responses within a reasonable period of time from submission, not to exceed 24 hours. [[Page 132 STAT. 1324]] (e) <<NOTE: Deadline.>> Certification Required.--Before providing confirmation of fraud protection data to a permitted entity, the Commissioner shall ensure that the Commissioner has a certification from the permitted entity that is dated not more than 2 years before the date on which that confirmation is provided that includes the following declarations: (1) The entity is a permitted entity. (2) The entity is in compliance with this section. (3) The entity is, and will remain, in compliance with its privacy and data security requirements, as described in title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.), with respect to information the entity receives from the Commissioner pursuant to this section. (4) <<NOTE: Time period.>> The entity will retain sufficient records to demonstrate its compliance with its certification and this section for a period of not less than 2 years. (f) Consumer Consent.-- (1) In general.--Notwithstanding any other provision of law or regulation, a permitted entity may submit a request to the database or similar resource described in subsection (c) only-- (A) pursuant to the written, including electronic, consent received by a permitted entity from the individual who is the subject of the request; and (B) in connection with a credit transaction or any circumstance described in section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b). (2) Electronic consent requirements.--For a permitted entity to use the consent of an individual received electronically pursuant to paragraph (1)(A), the permitted entity must obtain the individual's electronic signature, as defined in section 106 of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7006). (3) Effectuating electronic consent.--No provision of law or requirement, including section 552a of title 5, United States Code, shall prevent the use of electronic consent for purposes of this subsection or for use in any other consent based verification under the discretion of the Commissioner. (g) Compliance and Enforcement.-- (1) Audits and monitoring.--The Commissioner may-- (A) conduct audits and monitoring to-- (i) ensure proper use by permitted entities of the database or similar resource described in subsection (c); and (ii) deter fraud and misuse by permitted entities with respect to the database or similar resource described in subsection (c); and (B) terminate services for any permitted entity that prevents or refuses to allow the Commissioner to carry out the activities described in subparagraph (A). (2) Enforcement.-- (A) In general.--Notwithstanding any other provision of law, including the matter preceding paragraph (1) of section 505(a) of the Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)), any violation of this section and any certification made under this section shall be enforced in accordance [[Page 132 STAT. 1325]] with paragraphs (1) through (7) of such section 505(a) by the agencies described in those paragraphs. (B) Relevant information.--Upon discovery by the Commissioner, pursuant to an audit described in paragraph (1), of any violation of this section or any certification made under this section, the Commissioner shall forward any relevant information pertaining to that violation to the appropriate agency described in subparagraph (A) for evaluation by the agency for purposes of enforcing this section. (h) Recovery of Costs.-- (1) In general.-- (A) In general.--Amounts obligated to carry out this section shall be fully recovered from the users of the database or verification system by way of advances, reimbursements, user fees, or other recoveries as determined by the Commissioner. The funds recovered under this paragraph shall be deposited as an offsetting collection to the account providing appropriations for the Social Security Administration, to be used for the administration of this section without fiscal year limitation. (B) Prices fixed by commissioner.--The Commissioner shall establish the amount to be paid by the users under this paragraph, including the costs of any services or work performed, such as any appropriate upgrades, maintenance, and associated direct and indirect administrative costs, in support of carrying out the purposes described in this section, by reimbursement or in advance as determined by the Commissioner. The amount of such prices shall be periodically adjusted by the Commissioner to ensure that amounts collected are sufficient to fully offset the cost of the administration of this section. (2) Initial development.--The Commissioner shall not begin development of a verification system to carry out this section until the Commissioner determines that amounts equal to at least 50 percent of program start-up costs have been collected under paragraph (1). (3) Existing resources.--The Commissioner may use funds designated for information technology modernization to carry out this section. (4) Annual report.--The Commissioner shall annually submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the amount of indirect costs to the Social Security Administration arising as a result of the implementation of this section. SEC. 216. <<NOTE: Deadline.>> TREASURY REPORT ON RISKS OF CYBER THREATS. Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the risks of cyber threats to financial institutions and capital markets in the United States, including-- (1) <<NOTE: Assessment.>> an assessment of the material risks of cyber threats to financial institutions and capital markets in the United States; [[Page 132 STAT. 1326]] (2) the impact and potential effects of material cyber attacks on financial institutions and capital markets in the United States; (3) <<NOTE: Analysis.>> an analysis of how the appropriate Federal banking agencies and the Securities and Exchange Commission are addressing the material risks of cyber threats described in paragraph (1), including-- (A) how the appropriate Federal banking agencies and the Securities and Exchange Commission are assessing those threats; (B) how the appropriate Federal banking agencies and the Securities and Exchange Commission are assessing the cyber vulnerabilities and preparedness of financial institutions; (C) <<NOTE: Coordination.>> coordination amongst the appropriate Federal banking agencies and the Securities and Exchange Commission, and their coordination with other government agencies (including with respect to regulations, examinations, lexicon, duplication, and other regulatory tools); and (D) areas for improvement; and (4) <<NOTE: Recommenda- tions.>> a recommendation of whether any appropriate Federal banking agency or the Securities and Exchange Commission needs additional legal authorities or resources to adequately assess and address the material risks of cyber threats described in paragraph (1), given the analysis required by paragraph (3). SEC. 217. DISCRETIONARY SURPLUS FUNDS. Section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by striking ``$7,500,000,000'' and inserting ``$6,825,000,000''. TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS SEC. 301. PROTECTING CONSUMERS' CREDIT. (a) In General.--Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) is amended-- (1) in subsection (a)(1)(A), by striking ``90 days'' and inserting ``1 year''; and (2) by adding at the end the following: ``(i) National Security Freeze.-- ``(1) Definitions.--For purposes of this subsection: ``(A) The term `consumer reporting agency' means a consumer reporting agency described in section 603(p). ``(B) The term `proper identification' has the meaning of such term as used under section 610. ``(C) The term `security freeze' means a restriction that prohibits a consumer reporting agency from disclosing the contents of a consumer report that is subject to such security freeze to any person requesting the consumer report. ``(2) Placement of security freeze.-- [[Page 132 STAT. 1327]] ``(A) <<NOTE: Deadlines.>> In general.--Upon receiving a direct request from a consumer that a consumer reporting agency place a security freeze, and upon receiving proper identification from the consumer, the consumer reporting agency shall, free of charge, place the security freeze not later than-- ``(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 business day after receiving the request directly from the consumer; or ``(ii) in the case of a request that is by mail, 3 business days after receiving the request directly from the consumer. ``(B) <<NOTE: Deadline.>> Confirmation and additional information.--Not later than 5 business days after placing a security freeze under subparagraph (A), a consumer reporting agency shall-- ``(i) send confirmation of the placement to the consumer; and ``(ii) inform the consumer of-- ``(I) the process by which the consumer may remove the security freeze, including a mechanism to authenticate the consumer; and ``(II) the consumer's right described in section 615(d)(1)(D). ``(C) Notice to third parties.--A consumer reporting agency may advise a third party that a security freeze has been placed with respect to a consumer under subparagraph (A). ``(3) Removal of security freeze.-- ``(A) In general.--A consumer reporting agency shall remove a security freeze placed on the consumer report of a consumer only in the following cases: ``(i) Upon the direct request of the consumer. ``(ii) The security freeze was placed due to a material misrepresentation of fact by the consumer. ``(B) Notice if removal not by request.--If a consumer reporting agency removes a security freeze under subparagraph (A)(ii), the consumer reporting agency shall notify the consumer in writing prior to removing the security freeze. ``(C) <<NOTE: Deadlines.>> Removal of security freeze by consumer request.--Except as provided in subparagraph (A)(ii), a security freeze shall remain in place until the consumer directly requests that the security freeze be removed. Upon receiving a direct request from a consumer that a consumer reporting agency remove a security freeze, and upon receiving proper identification from the consumer, the consumer reporting agency shall, free of charge, remove the security freeze not later than-- ``(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 hour after receiving the request for removal; or ``(ii) in the case of a request that is by mail, 3 business days after receiving the request for removal. ``(D) Third-party requests.--If a third party requests access to a consumer report of a consumer with respect to which a security freeze is in effect, where such request [[Page 132 STAT. 1328]] is in connection with an application for credit, and the consumer does not allow such consumer report to be accessed, the third party may treat the application as incomplete. ``(E) Temporary removal of security freeze.--Upon receiving a direct request from a consumer under subparagraph (A)(i), if the consumer requests a temporary removal of a security freeze, the consumer reporting agency shall, in accordance with subparagraph (C), remove the security freeze for the period of time specified by the consumer. ``(4) Exceptions.--A security freeze shall not apply to the making of a consumer report for use of the following: ``(A) A person or entity, or a subsidiary, affiliate, or agent of that person or entity, or an assignee of a financial obligation owed by the consumer to that person or entity, or a prospective assignee of a financial obligation owed by the consumer to that person or entity in conjunction with the proposed purchase of the financial obligation, with which the consumer has or had prior to assignment an account or contract including a demand deposit account, or to whom the consumer issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owed for the account, contract, or negotiable instrument. For purposes of this subparagraph, `reviewing the account' includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements. ``(B) Any Federal, State, or local agency, law enforcement agency, trial court, or private collection agency acting pursuant to a court order, warrant, or subpoena. ``(C) A child support agency acting pursuant to part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.). ``(D) A Federal agency or a State or its agents or assigns acting to investigate fraud or acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities, provided such responsibilities are consistent with a permissible purpose under section 604. ``(E) By a person using credit information for the purposes described under section 604(c). ``(F) Any person or entity administering a credit file monitoring subscription or similar service to which the consumer has subscribed. ``(G) Any person or entity for the purpose of providing a consumer with a copy of the consumer's consumer report or credit score, upon the request of the consumer. ``(H) Any person using the information in connection with the underwriting of insurance. ``(I) Any person using the information for employment, tenant, or background screening purposes. ``(J) Any person using the information for assessing, verifying, or authenticating a consumer's identity for purposes other than the granting of credit, or for investigating or preventing actual or potential fraud. [[Page 132 STAT. 1329]] ``(5) Notice of rights.--At any time a consumer is required to receive a summary of rights required under section 609, the following notice shall be included: `` `Consumers Have the Right To Obtain a Security Freeze `` `You have a right to place a ``security freeze'' on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit. `` `As an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer's credit file. Upon seeing a fraud alert display on a consumer's credit file, a business is required to take steps to verify the consumer's identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years. `` `A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.'. ``(6) Webpage.-- ``(A) Consumer reporting agencies.--A consumer reporting agency shall establish a webpage that-- ``(i) allows a consumer to request a security freeze; ``(ii) allows a consumer to request an initial fraud alert; ``(iii) allows a consumer to request an extended fraud alert; ``(iv) allows a consumer to request an active duty fraud alert; ``(v) allows a consumer to opt-out of the use of information in a consumer report to send the consumer a solicitation of credit or insurance, in accordance with section 615(d); and ``(vi) shall not be the only mechanism by which a consumer may request a security freeze. ``(B) FTC.--The Federal Trade Commission shall establish a single webpage that includes a link to each webpage established under subparagraph (A) within the Federal Trade Commission's website www.Identitytheft.gov, or a successor website. ``(j) National Protection for Files and Credit Records of Protected Consumers.-- ``(1) Definitions.--As used in this subsection: [[Page 132 STAT. 1330]] ``(A) The term `consumer reporting agency' means a consumer reporting agency described in section 603(p). ``(B) The term `protected consumer' means an individual who is-- ``(i) under the age of 16 years at the time a request for the placement of a security freeze is made; or ``(ii) an incapacitated person or a protected person for whom a guardian or conservator has been appointed. ``(C) The term `protected consumer's representative' means a person who provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected consumer. ``(D) The term `record' means a compilation of information that-- ``(i) identifies a protected consumer; ``(ii) is created by a consumer reporting agency solely for the purpose of complying with this subsection; and ``(iii) may not be created or used to consider the protected consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. ``(E) The term `security freeze' means a restriction that prohibits a consumer reporting agency from disclosing the contents of a consumer report that is the subject of such security freeze or, in the case of a protected consumer for whom the consumer reporting agency does not have a file, a record that is subject to such security freeze to any person requesting the consumer report for the purpose of opening a new account involving the extension of credit. ``(F) The term `sufficient proof of authority' means documentation that shows a protected consumer's representative has authority to act on behalf of a protected consumer and includes-- ``(i) an order issued by a court of law; ``(ii) a lawfully executed and valid power of attorney; ``(iii) a document issued by a Federal, State, or local government agency in the United States showing proof of parentage, including a birth certificate; or ``(iv) with respect to a protected consumer who has been placed in a foster care setting, a written communication from a county welfare department or its agent or designee, or a county probation department or its agent or designee, certifying that the protected consumer is in a foster care setting under its jurisdiction. ``(G) The term `sufficient proof of identification' means information or documentation that identifies a protected consumer and a protected consumer's representative and includes-- ``(i) a social security number or a copy of a social security card issued by the Social Security Administration; [[Page 132 STAT. 1331]] ``(ii) a certified or official copy of a birth certificate issued by the entity authorized to issue the birth certificate; or ``(iii) a copy of a driver's license, an identification card issued by the motor vehicle administration, or any other government issued identification. ``(2) Placement of security freeze for a protected consumer.-- ``(A) <<NOTE: Deadlines.>> In general.--Upon receiving a direct request from a protected consumer's representative that a consumer reporting agency place a security freeze, and upon receiving sufficient proof of identification and sufficient proof of authority, the consumer reporting agency shall, free of charge, place the security freeze not later than-- ``(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 business day after receiving the request directly from the protected consumer's representative; or ``(ii) in the case of a request that is by mail, 3 business days after receiving the request directly from the protected consumer's representative. ``(B) <<NOTE: Deadline.>> Confirmation and additional information.--Not later than 5 business days after placing a security freeze under subparagraph (A), a consumer reporting agency shall-- ``(i) send confirmation of the placement to the protected consumer's representative; and ``(ii) inform the protected consumer's representative of the process by which the protected consumer may remove the security freeze, including a mechanism to authenticate the protected consumer's representative. ``(C) Creation of file.--If a consumer reporting agency does not have a file pertaining to a protected consumer when the consumer reporting agency receives a direct request under subparagraph (A), the consumer reporting agency shall create a record for the protected consumer. ``(3) Prohibition on release of record or file of protected consumer.--After a security freeze has been placed under paragraph (2)(A), and unless the security freeze is removed in accordance with this subsection, a consumer reporting agency may not release the protected consumer's consumer report, any information derived from the protected consumer's consumer report, or any record created for the protected consumer. ``(4) Removal of a protected consumer security freeze.-- ``(A) In general.--A consumer reporting agency shall remove a security freeze placed on the consumer report of a protected consumer only in the following cases: 