Creating incentives for small dollar loan originators

(a) Small dollar mortgage defined In this section, the term small dollar mortgage means a mortgage loan that— (1) has an original principal obligation of not more than $70,000; (2) is secured by real property designed for the occupancy of 1 to 4 families; and (3) is— (A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (B) made, guaranteed, or insured by the Department of Veterans Affairs; (C) made, guaranteed, or insured by the Department of Agriculture; or (D) eligible to be purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (b) Requirement To update regulations Not later than 270 days after the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection shall issue regulations to update part 1026 of title 12, Code of Federal Regulations (commonly referred to as Regulation Z) to allow for salaried originators of residential mortgage loans that only originate small dollar mortgages.