; (2) by striking each such agency or instrumentality and inserting each such agency ; (3) in the flush left matter following paragraph (3), by striking Each such agency or instrumentality and inserting the following: (b) Additional standards Each such agency described under subsection (a) ; and (4) by adding at the end the following new subsection: (c) Exemption for certain mortgage loans Each such agency described under subsection (a) shall exempt, by rule, a real estate appraisal or evaluation conducted in connection with a mortgage loan of $250,000 or less from the standards prescribed under this section, if such loan appears on the balance sheet of the creditor of such loan for a period of not less than 3 years. . 4. Changes required to small bank holding company policy statement on assessment of financial and managerial factors Before the end of the 6-month period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall revise the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors (12 C.F.R. part 225—appendix C) to raise the consolidated asset threshold under such policy statement from $1,000,000,000 (as adjusted by Public Law 113–250 ) to $10,000,000,000. 5. Capital requirements for mortgage servicing assets (a) Repeal of Basel III regulations Not later than the end of the 60-day period beginning on the date of the enactment of this Act, each Federal banking agency shall— (1) repeal all regulations issued by the agency to implement the Basel III capital requirements or the NCUA capital requirements, as applicable, on mortgage servicing assets; and (2) revive or restore any regulation repealed or revised by a regulation described under paragraph (1). (b) New regulations Before any final regulation is issued by a Federal banking agency with respect to capital requirements on mortgage servicing assets, the Federal banking agency shall— (1) issue a new proposed rule for public comment