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.
 (Sec. 2) This bill specifies that the amount deposited in the Securities and Exchange Commission (SEC) Reserve Fund for FY2018 may not exceed $48 million. TITLE I--TRID IMPROVEMENT (Sec. 101) The bill amends the Real Estate Settlement Procedures of 1974 to modify disclosure requirements&nbsp;applicable to mortgage loan transactions. Specifically, the disclosed charges for any title insurance premium shall be equal to the amount charged for each individual title insurance policy, subject to any discounts as required by either state regulation or the title company rate filings.  TITLE II--PROTECTION OF SOURCE CODE (Sec. 201) The bill amends the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940 to specify that the SEC may not compel a person to produce a source code or similar intellectual property without first issuing a subpoena.  TITLE III--FOSTERING INNOVATION (Sec. 301) The bill amends the Sarbanes-Oxley Act of 2002 with respect to auditor-attestation requirements for public companies.  These requirements shall not apply with respect to any audit report prepared for an issuer that:  ceased to be an emerging growth company on the last day of its fiscal year following the fifth anniversary of its first sale of common equity securities,  had average annual gross revenues of less than $50 million as of its most recently completed fiscal year, and  is not a large accelerated filer.  This exemption shall expire at the earliest of: (1) the last day of the fiscal year 10 years after the issuer's first sale of common equity securities, (2) the end of the fiscal year in which the issuer's average annual gross revenues exceed $50 million, or (3) when the issuer becomes a large accelerated filer.  TITLE IV--NATIONAL SECURITIES EXCHANGE REGULATORY PARITY (Sec. 401) The bill amends the Securities Act of 1933 to exempt from state registration securities qualified for national trading by the SEC and authorized to be listed on a national securities exchange. Currently, securities listed on exchanges specified by statute or rule are exempt.  TITLE V--ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS (Sec. 501) The bill amends the S.A.F.E. Mortgage Licensing Act of 2008 to temporarily allow loan originators that meet specified requirements to continue to originate loans after moving: (1) from one state to another, or (2) from a depository institution to a non-depository institution. (Sec. 502) The bill revises the S.A.F.E. Mortgage Licensing Act's civil liability immunity provisions. 
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