Community Development Banking and Financial Institutions Act of 1994

TABLE OF CONTENTS: Title I: Community Development and Consumer Protection Subtitle A: Community Development Banking and Financial Institutions Act Subtitle B: Home Ownership and Equity Protection Title II: Small Business Capital Formation Subtitle A: Small Business Loan Securitization Subtitle B: Small Business Capital Enhancement Title III: Paperwork Reduction and Regulatory Improvement Community Development, Credit Enhancement, and Regulatory Improvement Act of 1993 -Title I: Community Development and Consumer Protection - Subtitle A: Community Development Banking and Financial Institutions Act - Community Development Banking and Financial Institutions Act of 1993 - Establishes the Community Development Financial Institutions Fund (the Fund) as a wholly owned government corporation to promote economic revitalization and community development through an investment and assistance program for community development financial institutions. (Sec. 104) Vests Fund management in an Administrator. Directs the Administrator to establish the Community Development Advisory Board (the Board) to advise on Fund policies, but not on the granting or denial of any particular application. Prescribes selection criteria for community partnerships and institutions. Mandates Fund assistance for geographically diverse group of applicants from urban, rural, and Native American communities. Provides for a Fund training program to assist the financial services industry to undertake community development activities. (Sec. 111) Requires the Fund to establish an information clearinghouse. Authorizes the Fund to provide capitalization assistance to enhance the liquidity of community development financial institutions. (Sec. 116) Amends the Federal Credit Union Act to authorize the National Credit Union Administration Board (NCUAB) to invest idle moneys from the Community Development Credit Union Revolving Loan Fund into Treasury securities, and to use the interest earned for technical assistance to community development credit unions. Directs the NCUAB to study and report to certain congressional committees on community development credit activities by credit unions. Authorizes appropriations for FY 1994 through 1997. Subtitle B: Home Ownership and Equity Protection - Amends the Truth in Lending Act to set forth disclosure requirements for high cost mortgages (non-mortgage, non-open end credit plan consumer credit transactions secured by a consumer's principal dwelling) which meet specified criteria with respect to the annual percentage rate and points and fees which exceed certain limits. (Sec. 151) Prohibits such mortgages from containing: (1) prepayment penalties; (2) certain refinancing charges payable to the same creditor; (3) balloon payments; (4) negative amortization; and (5) prepaid payments. (Sec. 152) Imposes a civil penalty for violations of this Act. Title II: Small Business Capital Formation - Subtitle A: Small Business Loan Securitization - Small Business Loan Securitization and Secondary Market Enhancement Act of 1993 - Amends the Securities Exchange Act of 1934 to define a "small business related security" (SBRs) as generally a high rated security that represents or is secured by promissory notes evidencing indebtedness and providing for payments of principal in relation to payments on the notes. Provides that SBRSs shall be exempt from: (1) certain restrictions in the margin and securities delivery rules; (2) certain restrictions on borrowing on securities by and lending among, brokers, dealers, and other members of national securities exchanges; and (3) certain prohibitions on the extension of credit by members of exchanges, brokers, and dealers against a security which was part of a new issue. (Sec. 206) Amends the Home Owners' Loan Act, the Federal Credit Union Act, and related statutes to allow banks, credit unions, and other depository institutions to invest in SBRSs. (Sec. 207) Amends the Secondary Mortgage Market Enhancement Act of 1984 to: (1) authorize any U.S. person or entity to invest in SBRSs to the same extent such person is authorized to invest in U.S. obligations issued; and (2) exempt SBRSs from any State law's security registration and qualification requirements to the same extent that U.S. securities are so exempt. Provides for States to enact provisions prescribing specific requirements for SBRSs, and override the preemptions of this title. (Sec. 208) Requires the accounting principles applicable to the transfer of a small business loan with recourse contained in reports or statements required by appropriate Federal banking agencies to be consistent with generally accepted accounting principles. Requires the amount of capital required to be maintained by a depository institution with respect to the sale of a small business loan with recourse to equal an amount sufficient to meet the institution's reasonable estimated liability under the recourse arrangement. Sets forth capital and reserve requirements for the transfer by qualified insured depository institutions of small business loans with recourse. (Sec. 209) Directs the Secretary of Labor to exempt transactions involving SBRSs from certain restrictions and taxes imposed on "prohibited transactions" under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (thereby allowing pension fund managers to participate in the pooling and packaging of small business loans for sale as securities). (Sec. 210) Requires the Secretary of the Treasury to promulgate regulations providing for the taxation of a small business loan investment conduit and the holder of an interest therein in a manner similar to the taxation of a real estate mortgage investment conduit (REMIC) and the holder of an interest therein under the Internal Revenue Code. Subtitle B: Small Business Capital Enhancement - Establishes the Small Business Capital Enhancement Program to enhance the availability of financing for small business concerns. Authorizes any State to apply to the Secretary of Housing and Urban Development for approval as a participating State eligible for reimbursement. Sets forth application approval criteria. (Sec. 253) Provides that a non-participating State that has its own capital access program providing portfolio insurance for business loans (based on a separate loss reserve fund for each financial institution) may apply for approval as a participating State. Specifies that: (1) if a State is approved, each financial institution with a particular agreement in effect with the State shall immediately be considered a participating financial institution; and (2) a State with an existing program that is approved may continue to implement the program utilizing the reserve funds accumulated under the State program. (Sec. 254) Establishes requirements with respect to the terms of participation agreements. (Sec. 257) Provides for reimbursement by the Secretary of participating States, based on specified formulas. Requires a participating State that withdraws funds from a reserve fund pursuant to terms of the participation agreement to reimburse the Secretary according to a specified formula. (Sec. 260) Authorizes appropriations. Title III: Paperwork Reduction and Regulatory Improvement - Prescribes guidelines under which the Federal banking regulatory agencies must: (1) implement specified measures to reduce paperwork and administrative burdens upon banks; (2) streamline and make uniform various regulatory requirements; (3) eliminate duplicative filings; (4) conduct coordinated and unified regulatory examinations; (5) raise the asset threshold for certain small banking institutions that qualify for an 18-month regulatory examination cycle; (6) simplify and make electronically available the call report filing and disclosure system; and (7) establish an independent intra-agency appellate process. Repeals certain publication requirements. (Sec. 310) Amends the Bank Secrecy Act to permit electronic filing of mandatory currency transaction reports. (Sec. 311) Requires the Secretary of the Treasury to publish all rulings related to reporting for money laundering enforcement, and to issue annual staff commentaries pertaining to them. (Sec. 312) Amends the Real Estate Settlement Procedures Act of 1974 to exempt from its purview certain business and governmental credit transactions. (Sec. 314) Modifies the Federal audit requirements for certain insured institutions whose holding companies provide comparable auditing functions. (Sec. 315) Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to direct the Appraisal Subcommittee to encourage the States to develop reciprocity agreements allowing certified appraisers to perform appraisals in sister States. (Sec. 316) Amends the Home Owners' Loan Act to accelerate the effective date for interaffiliate transactions by well-capitalized savings associations. (Sec. 317) Amends the Federal Deposit Insurance Act (FDIA) to permit agreements made by a governmental entity for the collateralization of deposits notwithstanding changes in the collateral made in accordance with such an agreement. (Sec. 318) Amends the Federal Deposit Insurance Act to repeal the requirement of the Federal Deposit Insurance Corporation Improvements Act of 1991 that the Federal banking regulatory agencies prescribe, to the extent feasible, a minimum ratio of market value to book value for publicly traded shares of bank, thrift or holding company for these institutions. (Sec. 319) Amends the Bank Holding Company Act of 1956 to set forth expedited procedures for forming a bank holding company. (Sec. 320) Amends the Securities Act of 1933 to exempt certain holding company formations from its registration requirements. (Sec. 321) Amends Federal law to reduce the post-approval waiting period for: (1) bank holding company acquisitions; and (2) bank mergers. (Sec. 323) Amends Federal banking law and the Home Owners' Loan Act to authorize national banks and Federal savings associations to purchase shares in a bankers' bank in cases where some of the other investors are depository institution holding companies. (Sec. 325) Amends the FDIA to: (1) require the Attorney General to notify banking regulatory agencies of proposed mergers raising significant competitiveness issues; and (2) allow the FDIC to waive in advance the right to subsequently repudiate an insured depository institution's sale of its credit card accounts receivable. (Sec. 327) Amends the Federal Reserve Act and the FDIA to limit the liability of member banks for deposits made at foreign branches in specified cases of political upheaval. (Sec. 329) Amends the Real Estate Settlement Procedures Act (RESPA) to cite circumstances under which the mandatory disclosures of the Truth in Lending Act may be substituted for those required under RESPA. (Sec. 330) Requires reports to the Congress on: (1) the impact of risk-capital standards upon the safety and soundness of insured depository institutions and the availability of credit; (2) the monetary and budgetary impacts of the payment of interest upon certain sterile reserves held by insured depository institutions; and (3) streamlined home mortgage, small business, and consumer lending procedures.