Financial Institutions Regulatory Relief Act of 1995

TABLE OF CONTENTS:

Title I: Reductions in Government Overregulation

Subtitle A: The Home Mortgage Process

Subtitle B: Community Reinvestment Act Amendments

Subtitle C: Consumer Banking Reforms

Subtitle D: Equal Credit Opportunity Act Amendments

Subtitle E: Consumer Leasing Act Amendments

Subtitle F: Federal Home Loan Bank Amendments

Title II: Streamlining Government Regulations

Subtitle A: Regulatory Approval Issues

Subtitle B: Streamlining of Government Regulations;

Miscellaneous Provisions

Title III: Lender Liability

Financial Institutions Regulatory Relief Act of 1995 - Title I: Reductions in Government Overregulation - Subtitle A: The Home Mortgage Process - Amends the Real Estate Settlement Procedures Act (RESPA) to transfer regulatory authority to the Board of Governors of the Federal Reserve System (the Board) from the Secretary of Housing and Urban Development. Eliminates redundant regulators by adding certain administrative enforcement provisions.

(Sec. 102) Amends the Truth in Lending Act (TILA) and RESPA to provide for comparability of terms.

(Sec. 103) Provides for increased regulatory flexibility and exemptive authority for the Board under TILA.

(Sec. 104) Provides for reductions in RESPA regulatory burdens with respect to: (1) lenders' disclosures to federally related mortgage loan applicants relating to assignment, sale, or transfer of loan servicing; (2) second mortgages; and (3) consistency of RESPA and TILA exemption of business loans.

(Sec. 105) Provides for alternative disclosures for adjustable rate mortgages under TILA.

(Sec. 106) Amends TILA with respect to treatment of certain charges, including third party fees, taxes on security instruments or evidences of indebtedness, preparation of loan documents, and fees relating to pest infestations, inspections, and hazards.

(Sec. 107) Exempts from rescission, under TILA, certain transactions (other specified types of mortgages) which constitute refinancings or consolidations of existing extensions of credit and which are secured by a first lien.

(Sec. 108) Adds to TILA provisions relating to tolerances for accuracy and to the basis of disclosure for per diem interest.

(Sec. 109) Amends TILA to establish certain limitations on liability, including: (1) limitations on liability for disclosures relating to certain fees and charges other than finance charges; and (2) an exemption from liability for finance charge disclosures within tolerance limits.

(Sec. 111) Sets forth a limitation on the rescission period under TILA.

(Sec. 112) Revises TILA provisions for the calculation of actual damages.

(Sec. 113) Makes assignees liable, under specified TILA provisions, only if violations are apparent on the face of transaction documents. Provides that a servicer of a consumer credit transaction shall not be treated as: (1) an assignee for liability purposes unless the servicer is the owner of the obligation; or (2) the owner on the basis of an assignment for administrative convenience.

(Sec. 114) Revises certain TILA provisions for recovery of fees.

(Sec. 115) Repeals a provision of the Housing and Urban Development Act of 1968 for homeownership debt counseling notification.

(Sec. 116) Amends the Home Mortgage Disclosure Act of 1975 to revise exemption provisions. Exempts from coverage under such Act specified types of institutions with total assets, in their last full fiscal year, of $50 million or less (currently $10 million or less). Authorizes the Board to exempt those with greater assets where the burden of compliance outweighs the usefulness of the information required to be disclosed. Provides that a depository institution satisfies certain public availability of information requirements if: (1) such information is kept at the home office; (2) notice that such information is available through request to the home office is posted at the specified branch locations; and (3) the information is supplied to the requester in a paper copy or, if acceptable to the requester, via a form of electronic medium.

Subtitle B: Community Reinvestment Act Amendments - Amends the Community Reinvestment Act of 1977 (CRA) to revise the expression of congressional intent.

(Sec. 122) Exempts a regulated financial institution from the examination requirements of, or any regulations issued under, CRA if: (1) its main office (and each branch) is located in a local government unit with a population of not more than 30,000, which is not part of a metropolitan statistical area; and (2) the institution and its parent bank holding company have aggregate assets of not more than $100 million (to be adjusted annually by the annual percentage increase in the consumer price index for urban wage earners and clerical workers).

(Sec. 123) Provides for self-certification of CRA compliance by qualifying financial institutions, with certain public notice requirements.

(Sec. 124) Adds provisions for community input and conclusive rating, including requirements for publication of exam schedule, opportunity for comment, evaluation by the appropriate Federal financial supervisory agency, and procedures for requests for reconsideration of rating.

(Sec. 125) Directs Federal financial supervisory agencies, in conducting certain CRA assessments, to develop compliance standards consistent with the specific nature of special purpose banks (which do not generally accept retail deposits, such as credit card banks and trust banks).

(Sec. 126) Gives institutions credit, for purposes of satisfying CRA requirements, for investments in, and loans, to: (1) minority or women's depository institutions; and (2) joint ventures or other entities or projects providing benefits to distressed communities (whether such institutions or communities are located within or outside of the regulated financial institution's service area.

(Sec. 127) Prohibits regulations requiring certain additional recordkeeping and reporting under CRA.

(Sec. 128) Applies a requirement of metropolitan area distinctions only to institutions that maintain domestic branches in two or more States.

(Sec. 129) Amends the Federal Home Loan Bank Act to make certain reporting requirements inapplicable to members receiving an outstanding or satisfactory grade under specified CRA provisions.

Subtitle C: Consumer Banking Reforms - Amends the Truth in Savings Act (TISA) to prohibit depository institutions or deposit broker from making misleading or inaccurate advertisements or disclosures. Repeals TISA provisions relating to disclosure of interest rates and terms of accounts, account schedules, disclosure requirements for certain accounts, distribution of schedules, periodic statements, civil liability, and effect on State law. Revises provisions for regulations and definitions.

(Sec. 132) Amends the Electronic Fund Transfer Act (EFTA) to revise provisions relating to unauthorized electronic fund transfers.

(Sec. 133) Amends TILA to add provisions relating to cardholder liability for unauthorized use of credit cards.

(Sec. 134) Amends the Federal Deposit Insurance Act to revise provisions for regulations governing insured banks to allow depository institutions or their affiliates or subsidiaries to transfer information among themselves without any restriction or limitation if such possible information sharing is disclosed and the consumer is given the opportunity to direct that such information not be so communicated, prior to initial communication.

(Sec. 135) Revises EFTA definitions of: (1) accepted card or other means of access; and (2) account.

Subtitle D: Equal Credit Opportunity Act Amendments - Equal Credit Opportunity Act Amendments of 1995 - Combines and simplifies the adverse action notification requirements of the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA).

(Sec. 143) Revises ECOA requirements for written notifications of, and statements of reasons for, adverse actions to be given to credit applicants. Exempts from liability for a violation of such requirements any persons who show by a preponderance of the evidence that at the time of the alleged violation they maintained reasonable procedures to assure compliance with such requirements.

(Sec. 144) Revises specified FCRA requirements on users of consumer reports to eliminate coverage of credit denials and of adverse actions based on reports of persons other than consumer reporting agencies.

(Sec. 145) Amends ECOA and the Fair Housing Act to add incentives for self-testing.

(Sec. 146) Provides that creditors shall be deemed in compliance with ECOA nondiscrimination requirements with respect to any credit decision based solely on the use of an empirically derived, demonstrably and statistically sound, credit scoring system if such system does not use: (1) any protected category; or (2) any criterion so directly associated as to be a functional equivalent of such a category. (Does not preclude using age as a factor in such a system as otherwise permitted under ECOA.)

Subtitle E: Consumer Leasing Act Amendments - Consumer Leasing Act Amendments of 1995 - Amends the Consumer Credit Protection Act (CCPA) to direct the Board to: (1) write regulations or staff commentary to update and clarify requirements and definitions for lease disclosures, contracts, and other issues related to consumer leasing which would carry out the purposes of the Consumer Leasing Act; and (2) publish model disclosure forms and clauses to facilitate compliance with such disclosure requirements and aid the consumer in understanding the transaction.

(Sec. 154) Revises CCPA provisions for consumer lease disclosures to require prior separate leasing disclosures of specified items in a tabular format.

(Sec. 155) Revises CCPA provisions relating to consumer lease advertising.

Subtitle F: Federal Home Loan Bank Amendments - Amends the Federal Home Loan Bank Act (FHLBA) to revise an FHLB system membership eligibility location requirement to allow institutions to apply for membership in an adjoining district, for the institution's convenience, with Federal Housing Finance Board (FHFB) approval.

(Sec. 162) Revises FHLBA audit provisions to: (1) prohibit the FHFB from participating in the hiring of external auditors by banks; (2) permit the FHFB to establish requirements for external audit contracts and accounting standards; and (3) require all 12 banks to contract for an annual audit with a single provider.

Title II: Streamlining Government Regulations - Subtitle A: Regulatory Approval Issues - Amends the Bank Holding Company Act (BHCA) to revise and streamline notice and other requirements relating to both nonbanking and bank acquisitions by well-capitalized and well-managed banking organizations.

(Sec. 203) Amends the Federal Deposit Insurance Act to eliminate: (1) Bank Merger Act filing and approval requirements for insured depository institutions already controlled by the same holding company; and (2) redundant approval requirements for "Oakar" transactions (generally, conversion, by acquisition or similar means, of a Bank Insurance Fund member to a Savings Association Insurance Fund member, or vice versa).

(Sec. 205) Amends the Home Owners' Loan Act to eliminate duplicative requirements imposed on bank holding companies.

(Sec. 206) Eliminates a BHCA requirement that approval be obtained for divestitures.

(Sec. 207) Eliminates specified requirements for certain branch applications by: (1) national banking associations, under the Revised Statutes relating to banks and banking; (2) State member banks, under the Federal Reserve Act (FRA); and (3) State nonmember banks, under the Federal Deposit Insurance Act (FDIA).

(Sec. 208) Eliminates branch applications and requirements for automatic teller machines (ATMs) and similar facilities, under the Revised Statutes and FDIA.

(Sec. 209) Eliminates a requirement for approval of investments in bank premises for well-capitalized and well-managed banks.

(Sec. 210) Eliminates specified filing requirements under FDIA for officer and director appointments.

(Sec. 211) Streamlines the BHCA process for determining new nonbanking activities.

Subtitle B: Streamlining of Government Regulations; Miscellaneous Provisions - Eliminates the per-branch capital requirement for national banks and State member banks under the Revised Statutes.

(Sec. 222) Revises FDIA requirements relating to notification of branch closures to exempt specified entities under certain conditions.

(Sec. 223) Amends the Depository Institutions Management Interlocks Act to exempt management officials of depository institutions or holding companies with small market shares from prohibitions against dual service with unaffiliated institutions or companies in the same area, town, or village. Revises provisions relating to dual service among larger organizations. Extends a specified grandfather exemption which allows certain management officials to continue to serve despite interlocks prohibitions.

(Sec. 224) Abolishes the Appraisal Subcommittee established under the Federal Financial Institutions Council Act of 1978, and consolidates its functions into the Financial Institutions Examination Council.

Amends the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) to revise provisions relating to rosters of State certified or licensed appraisers. Provides for reduction of assessments on appraisers.

(Sec. 225) Eliminates certain recordkeeping and reporting requirements relating to loans to executive officers under FRA and BHCA. Permits extensions of credit made under certain FRA provisions pursuant to a benefit or compensation program widely available to employees of the member bank.

(Sec. 226) Amends FDIA to provide for expanded regulatory discretion for small bank examinations.

(Sec. 227) Amends the Right to Financial Privacy Act to revise cost reimbursement provisions to specifically include corporate customers under references to customer records.

(Sec. 228) Amends specified Federal law relating to money and finance to eliminate certain provisions requiring depository institutions to identify their nonbank financial institution customers.

(Sec. 229) Requires each appropriate Federal banking agency to conduct a paperwork reduction review.

(Sec. 230) Repeals certain reporting requirements under the Federal Deposit Insurance Corporation Improvement Act of 1991.

(Sec. 231) Directs the Secretary of the Treasury to revise a specified regulation under the Securities Exchange Act of 1934 to provide for daily confirmations for hold-in-custody repurchase transactions.

(Sec. 232) Requires the Financial Institutions Examining Council to carry out, and report to the Congress on, a regulatory review of regulations.

(Sec. 233) Amends the International Lending Supervision Act to: (1) grant Federal banking agencies discretion in imposing certain country risk requirements with respect to reserves; and (2) repeal certain additional country risk reserve requirements.

(Sec. 234) Revises specified FDIA audit provisions with respect to exemptions due to costs. Authorizes the Federal Deposit Insurance Corporation and the appropriate Federal banking agency to designate certain information in such audits as privileged, confidential, and not available to the public.

(Sec. 235) Sets forth certain due process protections under FDIA and the Federal Credit Union Act.

(Sec. 236) Revises FDIA provisions relating to: (1) culpability standards for outside directors; and (2) rules on deposit taking.

(Sec. 238) Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to revise the transition period for new regulations.

(Sec. 239) Amends the International Banking Act of 1978 to revise provisions relating to foreign bank applications and examinations.

(Sec. 241) Amends TILA to revise provisions relating to second mortgages.

Title III: Lender Liability - Amends FDIA to add provisions relating to lender, fiduciary, and Government agency environmental liabilities.