[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3978 Referred in Senate (RFS)]
<DOC>
115th CONGRESS
2d Session
H. R. 3978
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 15, 2018
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To amend the Real Estate Settlement Procedures Act of 1974 to modify
requirements related to mortgage disclosures, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
Sec. 2. Securities and Exchange Commission Reserve Fund.
TITLE I--TRID IMPROVEMENT
Sec. 101. Amendments to mortgage disclosure requirements.
TITLE II--PROTECTION OF SOURCE CODE
Sec. 201. Procedure for obtaining certain intellectual property.
TITLE III--FOSTERING INNOVATION
Sec. 301. Temporary exemption for low-revenue issuers.
TITLE IV--NATIONAL SECURITIES EXCHANGE REGULATORY PARITY
Sec. 401. Nationally traded securities exemption.
TITLE V--ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS
Sec. 501. Eliminating barriers to jobs for loan originators.
Sec. 502. Amendment to civil liability of the Bureau and other
officials.
Sec. 503. Effective date.
SEC. 2. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND.
Notwithstanding section 4(i)(2)(B)(i) of the Securities Exchange
Act of 1934 (15 U.S.C. 78d(i)(2)(B)(i)), the amount deposited in the
Securities and Exchange Commission Reserve Fund for fiscal year 2018
may not exceed $48,000,000.
TITLE I--TRID IMPROVEMENT
SEC. 101. AMENDMENTS TO MORTGAGE DISCLOSURE REQUIREMENTS.
Section 4(a) of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2603(a)) is amended--
(1) by striking ``itemize all charges'' and inserting
``itemize all actual charges'';
(2) by striking ``and all charges imposed upon the seller
in connection with the settlement and'' and inserting ``and the
seller in connection with the settlement. Such forms''; and
(3) by inserting after ``or both.'' the following new
sentence: ``Charges for any title insurance premium disclosed
on such forms shall be equal to the amount charged for each
individual title insurance policy, subject to any discounts as
required by State regulation or the title company rate
filings.''.
TITLE II--PROTECTION OF SOURCE CODE
SEC. 201. PROCEDURE FOR OBTAINING CERTAIN INTELLECTUAL PROPERTY.
(a) Persons Under Securities Act of 1933.--Section 8 of the
Securities Act of 1933 (15 U.S.C. 77h) is amended by adding at the end
the following:
``(g) Procedure for Obtaining Certain Intellectual Property.--The
Commission is not authorized to compel under this title a person to
produce or furnish algorithmic trading source code or similar
intellectual property that forms the basis for design of the
algorithmic trading source code, to the Commission unless the
Commission first issues a subpoena.''.
(b) Persons Under the Securities Exchange Act of 1934.--Section 23
of the Securities Exchange Act of 1934 (15 U.S.C. 78w) is amended by
adding at the end the following:
``(e) Procedure for Obtaining Certain Intellectual Property.--The
Commission is not authorized to compel under this title a person to
produce or furnish algorithmic trading source code or similar
intellectual property that forms the basis for design of the
algorithmic trading source code, to the Commission unless the
Commission first issues a subpoena.''.
(c) Investment Companies.--Section 31 of the Investment Company Act
of 1940 (15 U.S.C. 80a-30) is amended by adding at the end the
following:
``(e) Procedure for Obtaining Certain Intellectual Property.--The
Commission is not authorized to compel under this title an investment
company to produce or furnish algorithmic trading source code or
similar intellectual property that forms the basis for design of the
algorithmic trading source code, to the Commission unless the
Commission first issues a subpoena.''.
(d) Investment Advisers.--Section 204 of the Investment Advisers
Act of 1940 (15 U.S.C. 80b-4) is amended--
(1) by adding at the end the following:
``(f) Procedure for Obtaining Certain Intellectual Property.--The
Commission is not authorized to compel under this title an investment
adviser to produce or furnish algorithmic trading source code or
similar intellectual property that forms the basis for design of the
algorithmic trading source code, to the Commission unless the
Commission first issues a subpoena.''; and
(2) in the second subsection (d), by striking ``(d)'' and
inserting ``(e)''.
TITLE III--FOSTERING INNOVATION
SEC. 301. TEMPORARY EXEMPTION FOR LOW-REVENUE ISSUERS.
Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is
amended by adding at the end the following:
``(d) Temporary Exemption for Low-Revenue Issuers.--
``(1) Low-revenue exemption.--Subsection (b) shall not
apply with respect to an audit report prepared for an issuer
that--
``(A) ceased to be an emerging growth company on
the last day of the fiscal year of the issuer following
the fifth anniversary of the date of the first sale of
common equity securities of the issuer pursuant to an
effective registration statement under the Securities
Act of 1933;
``(B) had average annual gross revenues of less
than $50,000,000 as of its most recently completed
fiscal year; and
``(C) is not a large accelerated filer.
``(2) Expiration of temporary exemption.--An issuer ceases
to be eligible for the exemption described under paragraph (1)
at the earliest of--
``(A) the last day of the fiscal year of the issuer
following the tenth anniversary of the date of the
first sale of common equity securities of the issuer
pursuant to an effective registration statement under
the Securities Act of 1933;
``(B) the last day of the fiscal year of the issuer
during which the average annual gross revenues of the
issuer exceed $50,000,000; or
``(C) the date on which the issuer becomes a large
accelerated filer.
``(3) Definitions.--For purposes of this subsection:
``(A) Average annual gross revenues.--The term
`average annual gross revenues' means the total gross
revenues of an issuer over its most recently completed
three fiscal years divided by three.
``(B) Emerging growth company.--The term `emerging
growth company' has the meaning given such term under
section 3 of the Securities Exchange Act of 1934 (15
U.S.C. 78c).
``(C) Large accelerated filer.--The term `large
accelerated filer' has the meaning given that term
under section 240.12b-2 of title 17, Code of Federal
Regulations, or any successor thereto.''.
TITLE IV--NATIONAL SECURITIES EXCHANGE REGULATORY PARITY
SEC. 401. NATIONALLY TRADED SECURITIES EXEMPTION.
Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C.
77r(b)(1)) is amended--
(1) by striking subparagraph (A);
(2) in subparagraph (B)--
(A) by inserting ``a security designated as
qualified for trading in the national market system
pursuant to section 11A(a)(2) of the Securities
Exchange Act of 1934 that is'' before ``listed''; and
(B) by striking ``that has listing standards that
the Commission determines by rule (on its own
initiative or on the basis of a petition) are
substantially similar to the listing standards
applicable to securities described in subparagraph
(A)'';
(3) in subparagraph (C), by striking ``or (B)''; and
(4) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
TITLE V--ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS
SEC. 501. 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. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.
``(a) Temporary Authority To Originate Loans for Loan Originators
Moving From a Depository Institution to a Non-Depository Institution.--
``(1) In general.--Upon employment 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 an application for a loan
originator license denied, or had such a license
revoked or suspended in any governmental jurisdiction;
``(B) has not been subject to or served with a
cease and desist order in any governmental jurisdiction
or as described in section 1514(c);
``(C) has not been convicted of a 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) was registered in the Nationwide Mortgage
Licensing System and Registry as a loan originator
during the 12-month period preceding the date of
submission of the information required under section
1505(a).
``(2) Period.--The period described in paragraph (1) shall
begin on the date that the individual submits the information
required under section 1505(a) and shall end on the earliest
of--
``(A) the date that the individual withdraws the
application to be a State-licensed loan originator in
the application State;
``(B) the date that the application State denies,
or issues a notice of intent to deny, the application;
``(C) the date that the application State grants a
State license; or
``(D) the date 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.
``(b) 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 (a)(1);
``(B) is employed by a State-licensed mortgage
company in the application State; and
``(C) was licensed in a State that is not the
application State during the 30-day period preceding
the date of submission of the information required
under section 1505(a) in connection with the
application submitted to the application State.
``(2) Period.--The period described in paragraph (1) shall
begin on the date that 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--
``(A) the date that the State-licensed loan
originator withdraws the application to be a State-
licensed loan originator in the application State;
``(B) the date that the application State denies,
or issues a notice of intent to deny, the application;
``(C) the date that the application State grants a
State license; or
``(D) the date 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.
``(c) Applicability.--
``(1) Any person employing an individual who is deemed to
have temporary authority to act as a loan originator in an
application State pursuant to this section shall be subject to
the requirements of this title and to applicable State law to
the same extent as if such individual was a State-licensed loan
originator licensed by the application State.
``(2) Any individual who is deemed to have temporary
authority to act as a loan originator in an application State
pursuant to 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 such individual was a State-licensed loan
originator licensed by the application State.
``(d) Definitions.--In this section, the following definitions
shall apply:
``(1) State-licensed mortgage company.--The term `State-
licensed mortgage company' means an entity licensed or
registered under the law of any State to engage in residential
mortgage loan origination and processing activities.
``(2) 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.''.
(b) Table of Contents Amendment.--The table of contents in section
1(b) of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 4501
note) is amended by inserting after the item relating to section 1517
the following:
``Sec. 1518. Employment transition of loan originators.''.
SEC. 502. AMENDMENT TO CIVIL LIABILITY OF THE BUREAU AND OTHER
OFFICIALS.
Section 1513 of the S.A.F.E. Mortgage Licensing Act of 2008 (12
U.S.C. 5112) is amended by striking ``are loan originators or are
applying for licensing or registration as loan originators.'' and
inserting ``have applied, are applying, or are currently licensed or
registered through the Nationwide Mortgage Licensing System and
Registry. The previous sentence shall only apply to persons in an
industry with respect to which persons were licensed or registered
through the Nationwide Mortgage Licensing System and Registry on the
date of the enactment of this sentence.''.
SEC. 503. EFFECTIVE DATE.
This title and the amendments made by this title shall take effect
on the date that is 18 months after the date of the enactment of this
Act.
Passed the House of Representatives February 14, 2018.
Attest:
KAREN L. HAAS,
Clerk.