69–008 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–450 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3915) TO AMEND THE 

TRUTH IN LENDING ACT TO REFORM CONSUMER MORTGAGE PRACTICES AND PROVIDE ACCOUNTABILITY FOR SUCH PRACTICES, TO ESTABLISH LICENSING AND REGISTRATION REQUIREMENTS FOR RESIDENTIAL MORTGAGE ORIGINATORS, TO PROVIDE CERTAIN MINIMUM 

STANDARDS FOR CONSUMER MORTGAGE LOANS, AND FOR OTHER PURPOSES 

NOVEMBER 14, 2007.—Referred to the House Calendar and ordered to be printed 

Mr. ARCURI, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 825] 

The Committee on Rules, having had under consideration House 

Resolution 825, by a non-record vote, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, under a 

structured rule. The rule provides one hour of general debate 

equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services. The rule 

waives all points of order against consideration of the bill except 

clauses 9 and 10 of rule XXI. The rule provides that the amendment in the nature of a substitute recommended by the Committee 

on Financial Services now printed in the bill shall be considered as 

an original bill for the purpose of amendment and shall be considered as read. The rule waives all points of order against the 

amendment in the nature of a substitute except for clause 10 of 

rule XXI. This waiver does not affect the point of order available 

under clause 9 of rule XXI (regarding earmark disclosure). 

The rule makes in order only those amendments printed in this 

report. The amendments made in order may be offered only in the 

order printed in this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this report equally divided and controlled by the proponent and an opponent, shall not be subject to 

amendment except as specified in this report, and shall not be subVerDate Aug 31 2005 04:33 Nov 15, 2007 Jkt 069008 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR450.XXX HR450

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ject to a demand for a division of the question in the House or in 

the Committee of the Whole. All points of order against the amendments except for clauses 9 and 10 of rule XXI are waived. The rule 

provides one motion to recommit with or without instructions. The 

rule provides that, notwithstanding the operation of the previous 

question, the Chair may postpone further consideration of the bill 

to a time designated by the Speaker. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the bill 

(except for clauses 9 and 10 of rule XXI) includes a waiver of Section 302(f) of the Congressional Budget Act which prohibits consideration of legislation providing new budget authority in excess of 

a committee’s 302(a) allocation of such authority. The waiver of all 

points of order against the committee amendment in the nature of 

a substitute (except for clause 10 of rule XXI) includes a waiver of 

clause 7 of rule XVI, regarding germaneness. 

SUMMARY OF AMENDMENTS MADE IN ORDER

1. Frank (MA)/Bachus (AL): The amendment makes a number of 

technical and conforming changes as well as enhancements to the 

bill including the following: (1) clarifies the definition of loan originator; (2) narrows the scope of the preemption provision to make 

it clear that states cannot use or adopt state laws against 

securitizers/assignees for violations of the national standards or to 

impose remedies outside of the unique Federal remedy established 

in the bill, and to make it clear that actions for fraud, misrepresentation, deception, false advertising or civil rights laws are not preempted; (3) clarifies the registration requirements for the Nationwide Mortgage Licensing System and Registry; (4) allows consumers to obtain a cure from assignee or securitizer if creditor or 

other assignees cease to exist or go bankrupt; (5) clarifies the incentive compensation provision; and (6) adds a monthly disclosure 

requirement for mortgages. (10 minutes) 

2. Kanjorski (PA)/Biggert (IL)/Capito (WV)/Hodes (NH)/Moore, 

Gwen (WI): The amendment, reflecting provisions from H.R. 3837 

(The Escrow, Appraisal, and Mortgage Servicing Improvements 

Act), would better consumer protection by improving mortgage 

servicing, protecting appraiser independence, ensuring better appraisal quality and regulatory oversight, requiring escrows for 

mortgages for borrowers who might experience difficulty with repayment, and establishing disclosure for consumers who waive escrow accounts. (10 minutes) 

3. Maloney (NY): Would require a borrower to receive the option 

of a mortgage without a prepayment penalty, if they are offered an 

amendment with a prepayment penalty. Sets the maximum time 

for a prepayment penalty of 3 years and a maximum prepayment 

amount of 3% of the loan for the first year, 2% for the second year 

and 1% for the third year. (10 minutes) 

4. Watt (NC)/Miller, Brad (NC): This amendment allows for actual damages in the liability section. (10 minutes) 

5. Watt (NC)/Miller, Brad (NC): The amendment requires the assignee to have policies/procedures and to cure the loan to avoid 

being liable for rescission. (10 minutes) 


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6. Watt (NC)/Miller, Brad (NC): The amendment changes the 

irrebuttable presumption under section 203 to a rebuttable presumption for all mortgages that allow a borrower to defer payment 

of principal or interest. (10 minutes) 

7. Hensarling (TX): Amendment would remove the civil liability 

of a lender and cancel the right of rescission for a borrower in instances when a borrower knowingly lied on their mortgage loan application. (10 minutes) 

8. Watt (NC)/Miller, Brad (NC): The second-degree amendment 

to Hensarling #7 adds that the obligor must have had actual 

knowledge of the false material information for the exemption from 

liability to take effect. (10 minutes) 

9. Meeks (NY): The amendment provides that the Nationwide 

Mortgage Licensing System and Registry shall not directly or indirectly offer educational courses for pre-licensure or continuing education for mortgage originators. In approving courses under this 

Act, the Nationwide Mortgage Licensing System and Registry shall 

apply reasonable standards in the review and approval of courses. 

(10 minutes) 

10. Putnam (FL): The amendment would direct the GAO to conduct a study to determine the effects the enactment of H.R. 3915 

will have on the availability and affordability of credit for homebuyers and mortgage lending, and to submit a report to Congress 

containing the findings and conclusions within one year of the enactment of the legislation. (10 minutes) 

11. Brown-Waite (FL): The amendment excludes loans insured by 

the Federal Housing Administration from the provisions of the bill. 

(10 minutes) 

12. Garrett (NJ): The amendment would strike the rebuttable 

presumption under section 203, stating that all qualified safe harbor loans that meet the requirements listed in section 203(c)(3)(C) 

fall under the safe harbor. (10 minutes) 

13. Miller, Brad (NC)/Frank (MA)/Watt (NC): Allow regulators to 

fine mortgage originators, assignees and securitizers who more 

than occasionally (‘‘pattern or practice’’) violate the minimum 

standards for loans established in the bill at least $1 million, 

$25,000 per loan. Proceeds would be held in trust by the US Treasury for the benefit of borrowers who have no other avenue for obtaining a remedy. (10 minutes) 

14. Green, Al (TX): States that educational requirements include 

instruction on fraud, consumer protection, and fair lending issues. 

(10 minutes) 

15. McHenry (NC): The amendment would strike Title III—HighCost Mortgages from the bill. (10 minutes) 

16. Price, Tom (GA): This amendment would exempt prime loans 

from the bill. (10 minutes) 

17. Van Hollen (MD): The amendment requires that in the case 

of a residential mortgage loan, closing costs may not exceed by 

more than 10% any estimate of closing costs disclosed to the consumer in advance of closing. (10 minutes) 

18. Sutton (OH): This amendment would require loan creditors 

or servicers to provide a written notice to consumers with hybrid 

adjustable rate mortgages six months before their interest rates 

are due to reset. This notice would state the new interest rate, an 

explanation of how the new interest rate would be determined, the 


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creditor’s or servicer’s good faith estimate of the monthly payment 

that will apply after the reset, a list of alternatives consumers may 

pursue before the date of adjustment or reset, and contact information for local HUD-approved housing counseling agencies and the 

state housing finance authority. (10 minutes) 

TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE FRANK OF

MASSACHUSETTS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 6, strike line 19 and all that follows through line 22 and 

insert the following new clause: 

(iii) does not include any individual who is not otherwise described in clause (i) or (ii) and who performs 

purely administrative or clerical tasks on behalf of a 

person who is described in any such clause. 

Page 19, strike line 16 and all that follows through line 24, and 

insert the following new subparagraph: 

(B) personal history and experience, including authorization for the Nationwide Mortgage Licensing System and 

Registry to obtain information related to any administrative, civil or criminal findings by any governmental jurisdiction. 

Page 20, line 1, strike ‘‘(b) UNIQUE IDENTIFIER.—The Federal 

banking agencies’’ and insert ‘‘(b) COORDINATION.—

‘‘(1) UNIQUE IDENTIFIER.—The Federal banking agencies’’. 

Page 20, after line 9, insert the following new paragraph: 

(2) NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY

DEVELOPMENT.—To facilitate the transfer of information required by subsection (a)(2), the Nationwide Mortgage Licensing 

System and Registry shall coordinate with the Federal banking 

agencies, through the Financial Institutions Examination 

Council, concerning the development and operation, by such 

System and Registry, of the registration functionality and data 

requirements for loan originators. 

Page 37, line 22, strike the closing quotation marks and the second period. 

Page 37, after line 22, insert the following new paragraph: 

‘‘(10) SERVICER.—The term ‘servicer’ has the same meaning 

as in section 6(i)(2) of the Real Estate Settlement Procedures 

Act of 1974.’’. 

Page 38, beginning on line 12, strike ‘‘, registered, and, when required, licensed’’ and insert ‘‘and, when required, registered and licensed’’. 

Page 40, line 22, strike ‘‘to repay and’’ and all that follows 

through line 25 and insert ‘‘to repay and, in the case of a refinancing of an existing residential mortgage loan, receives a net 

tangible benefit, as determined in accordance with regulations prescribed under subsections (a) and (b) of section 129B.’’

Page 41, line 20, insert ‘‘, the Chairman of the State Liaison 

Committee to the Financial Institutions Examination Council,’’

after ‘‘Secretary’’. 

Page 43, line 13, strike ‘‘ANTI-STEERING’’ and insert ‘‘PROHIBITION ON STEERING INCENTIVES’’. 


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Page 43, line 18, strike ‘‘IN GENERAL’’ and insert ‘‘AMOUNT OF

ORIGINATOR COMPENSATION CANNOT VARY BASED ON TERMS’’

Page 43, beginning on line 20, strike ‘‘(including yield spread premium)’’ and insert ‘‘, including yield spread premium or any equivalent compensation or gain,’’. 

Page 44, line 1, strike ‘‘ANTI-STEERING REGULATIONS’’ and insert 

‘‘REGULATIONS’’. 

Page 44, line 9, insert ‘‘(in accordance with regulations prescribed 

under section 129B(a))’’ before the semicolon. 

Page 44, line 10, insert ‘‘in the case of a refinancing of a residential mortgage loan,’’ after (ii). 

Page 44, line 11, insert ‘‘(in accordance with regulations prescribed under section 129B(b))’’ before the semicolon. 

Page 45, strike line 6 and all that follows through line 11 and 

insert the following new subparagraph: 

‘‘(B) restricting a consumer’s ability to finance, including 

through rate or principal, any origination fees or costs permitted under this subsection, or the originator’s ability to 

receive such fees or costs (including compensation) from 

any person, so long as such fees or costs were fully and 

clearly disclosed to the consumer earlier in the application 

process as required by 129A(a)(1)(C)(ii) and do not vary 

based on the terms of the loan or the consumer’s decision 

about whether to finance such fees or costs; or’’. 

Page 61, after line 15, insert the following new paragraph (and 

redesignate subsequent paragraphs accordingly): 

‘‘(4) ABSENT PARTIES.—

‘‘(A) ABSENT CREDITOR.—Notwithstanding the exemption 

provided in paragraph (3), if the creditor with respect to a 

residential mortgage loan made in violation of subsection 

(a) or (b) has ceased to exist as a matter of law or has filed 

for bankruptcy protection under title 11, United States 

Code, or has had a receiver or liquidating agent appointed, 

a consumer may maintain a civil action against an assignee to cure, but not rescind, the residential mortgage 

loan, plus the costs and reasonable attorney’s fees incurred 

in obtaining such remedy. 

‘‘(B) ABSENT CREDITOR AND ASSIGNEE.—Notwithstanding 

the exemption provided in paragraph (3), if the creditor 

with respect to a residential mortgage loan made in violation of subsection (a) or (b) and each assignee of such loan 

have ceased to exist as a matter of law or have filed for 

bankruptcy protection under title 11, United States Code, 

or have had receivers or liquidating agents appointed, the 

consumer may maintain the civil action referred to in subparagraph (A) against the securitizer.’’. 

Page 61, line 23, insert ‘‘and the payment of such additional costs 

as the obligor may have incurred as a result of the violation and 

in connection with obtaining a cure of the loan, including a reasonable attorney’s fee’’ before the period. 

Page 62, line 15, insert ‘‘OR OBTAIN’’ after ‘‘PROVIDE’’. 

Page 62, line 16, insert ‘‘, or a consumer cannot obtain,’’ after 

‘‘cannot provide’’. 


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Page 65, line 6, insert ‘‘and the consumer would have had a valid 

basis for such an action if it had been brought before the end of 

such period’’ after ‘‘subsection (d)’’. Page 66, beginning on line 21, strike ‘‘that insurance premiums’’ and insert ‘‘that— ‘‘(1) insurance premiums’’. Page 66, line 24, strike the period and insert ‘‘; and’’. Page 66, after line 24, insert the following new paragraph: ‘‘(2) this subsection shall not apply to credit unemployment 

insurance for which the unemployment insurance premiums 

are reasonable and at no additional cost to the consumer, the 

creditor receives no direct or indirect compensation in connection with the unemployment insurance premiums, and the unemployment insurance premiums are paid pursuant to another 

insurance contract and not paid to an affiliate of the creditor.’’. Page 69, strike line 1 and all that follows through line 9 and insert the following new subparagraphs: ‘‘(A) the provision, by the successor in interest, of a notice to vacate to any bona fide tenant at least 90 days before the effective date of the notice to vacate. ‘‘(B) the rights of any bona fide tenant, as of the date of 

such notice of foreclosure— ‘‘(i) under any bona fide lease entered into before the 

notice of foreclosure to occupy the premises until the 

end of the remaining term of the lease or the end of 

the 6-month period beginning on the date of the notice 

of foreclosure, whichever occurs first, subject to the receipt by the tenant of the 90-day notice under subparagraph (A); or ‘‘(ii) without a lease or with a lease terminable at 

will under State law, subject to the receipt by the tenant of the 90-day notice under subparagraph (A); and’’. Page 69, after line 12, insert the following new subparagraph 

(and redesignate subsequent subparagraphs accordingly): 

‘‘(A) the mortgagor under the contract is not the tenant;’’. 

Page 69, beginning on line 15, strike ‘‘tenant to pay’’ and insert 

‘‘receipt of’’. 

Page 69, line 19, strike ‘‘first-time’’. 

Page 70, line 17, strike ‘‘the consumer’’ and insert ‘‘in the case 

of a first-time borrower with respect to a residential mortgage loan 

that is not a qualified mortgage, the first-time borrower’’. 

Page 71, line 25, insert ‘‘or application thereof’’ after ‘‘State law’’. 

Page 72, strike line 5 and all that follows through line 8, and insert ‘‘of such Act or any other State law the terms of which address 

the specific subject matter of subsection (a) (determination of ability to repay) or (b) (requirement of a net tangible benefit) of such 

section 129B.’’. 

Page 72, strike line 9 and all that follows through line 17 and 

insert the following new subsection: 

(b) RULES OF CONSTRUCTION.—No provision of this section shall 

be construed as limiting— (1) the application of any State law against a creditor; 

(2) the availability of remedies based upon fraud, misrepresentation, deception, false advertising, or civil rights laws—


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(A) against any assignee, securitizer, or securitization 

vehicle for its own conduct relating to the making of a residential mortgage loan to a consumer; or 

(B) against any assignee, securitizer, or securitization 

vehicle in the sale or purchase of residential mortgage 

loans or securities; or 

(3) the application of any other State law against any assignee, securitizer, or securitization vehicle except as specifically provided in subsection (a) of this section. 

Page 79, after line 2, insert the following new section (and redesignate the subsequent sections accordingly): 

SEC. 212. DISCLOSURES REQUIRED IN MONTHLY STATEMENTS FOR 

RESIDENTIAL MORTGAGE LOANS. 

Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is 

amended by adding at the end the following new subsection: 

‘‘(e) PERIODIC STATEMENTS FOR RESIDENTIAL MORTGAGE LOANS.—

‘‘(1) IN GENERAL.—The creditor, assignee, or servicer with respect to any residential mortgage loan shall transmit to the obligor, for each billing cycle, a statement setting forth each of 

the following items, to the extent applicable, in a conspicuous 

and prominent manner: 

‘‘(A) The amount of the principal obligation under the 

mortgage. 

‘‘(B) The current interest rate in effect for the loan. 

‘‘(C) The date on which the interest rate may next reset 

or adjust. ‘‘(D) The amount of any prepayment fee to be charged, 

if any. ‘‘(E) A description of any late payment fees. 

‘‘(F) A telephone number and electronic mail address 

that may be used by the obligor to obtain information regarding the mortgage. ‘‘(G) Such other information as the Board may prescribe 

in regulations. 

‘‘(2) DEVELOPMENT AND USE OF STANDARD FORM.—The Federal banking agencies shall jointly develop and prescribe a 

standard form for the disclosure required under this subsection, taking into account that the statements required may 

be transmitted in writing or electronically.’’. 

Page 80, line 23, insert ‘‘(10 percentage points, if the dwelling is 

personal property and the transaction is for less than $50,000)’’

after ‘‘8 percentage points’’. 

Page 81, beginning on line 19, strike ‘‘(8 percent if the dwelling 

is personal property)’’. 

Page 100, line 6, strike ‘‘tangible net benefit’’ and insert ‘‘net tangible benefit (as determined in accordance with regulations prescribed under section 129B(b))’’. 

Page 100, line 10, after the period, insert closing quotation 

marks and a second period. 

Page 100, strike line 11 and all that follows through line 14. 

Page 102, line 23, insert ‘‘at the end of the 6-month period beginning’’ before ‘‘on the date of’’. Page 102, beginning on line 25, strike ‘‘on or after the date’’ and 

insert ‘‘after the end of such period’’. 


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2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE KANJORSKI

OF PENNSYLVANIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 134, after line 13 insert the following new titles (and conform the table of contents accordingly): 

TITLE VI—MORTGAGE SERVICING 

SEC. 601. ESCROW AND IMPOUND ACCOUNTS RELATING TO CERTAIN 

CONSUMER CREDIT TRANSACTIONS. 

(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15 

U.S.C. 1631 et seq.) is amended by inserting after section 129B (as 

added by section 201) the following new section: 

‘‘SEC. 129C. ESCROW OR IMPOUND ACCOUNTS RELATING TO CERTAIN 

CONSUMER CREDIT TRANSACTIONS. 

‘‘(a) IN GENERAL.—Except as provided in subsection (b) or (c), a 

creditor, in connection with the formation or consummation of a 

consumer credit transaction secured by a first lien on the principal 

dwelling of the consumer, other than a consumer credit transaction 

under an open end credit plan or a reverse mortgage, shall establish, at the time of the consummation of such transaction, an escrow or impound account for the payment of taxes and hazard insurance, and, if applicable, flood insurance, mortgage insurance, 

ground rents, and any other required periodic payments or premiums with respect to the property or the loan terms, as provided 

in, and in accordance with, this section. 

‘‘(b) WHEN REQUIRED.—No impound, trust, or other type of account for the payment of property taxes, insurance premiums, or 

other purposes relating to the property may be required as a condition of a real property sale contract or a loan secured by a first 

deed of trust or mortgage on the principal dwelling of the consumer, other than a consumer credit transaction under an open 

end credit plan or a reverse mortgage, except when—

‘‘(1) any such impound, trust, or other type of escrow or impound account for such purposes is required by Federal or 

State law; 

‘‘(2) a loan is made, guaranteed, or insured by a State or 

Federal governmental lending or insuring agency; 

‘‘(3) the consumer’s debt-to-income ratio at the time the home 

mortgage is established taking into account income from all 

sources including the consumer’s employment exceeds 50 percent; 

‘‘(4) the transaction is secured by a first mortgage or lien on 

the consumer’s principal dwelling and the annual percentage 

rate on the credit, at the time of consummation of the transaction, will exceed by more than 3.0 percentage points the yield 

on Treasury securities having comparable periods of maturity 

on the 15th day of the month immediately preceding the month 

in which the application of the extension of credit is received 

by the creditor; 

‘‘(5) a consumer obtains a mortgage referred to in section 

103(aa); 

‘‘(6) the original principal amount of such loan at the time 

of consummation of the transaction is—


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‘‘(A) 90 percent or more of the sale price, if the property 

involved is purchased with the proceeds of the loan; or 

‘‘(B) 90 percent or more of the appraised value of the 

property securing the loan; 

‘‘(7) the combined principal amount of all loans secured by 

the real property exceeds 95 percent of the appraised value of 

the property securing the loans at the time of consummation 

of the last mortgage transaction; 

‘‘(8) the consumer was the subject of a proceeding under title 

11, United States Code, at any time during the 7-year period 

preceding the date of the transaction (as determined on the 

basis of the date of entry of the order for relief or the date of 

adjudication, as the case may be, with respect to such proceeding and included in a consumer report on the consumer 

under the Fair Credit Reporting Act); or 

‘‘(9) so required by the Board pursuant to regulation. 

‘‘(c) DURATION OF MANDATORY ESCROW OR IMPOUND ACCOUNT.—

An escrow or impound account established pursuant to subsection 

(b), shall remain in existence for a minimum period of 5 years and 

until such borrower has sufficient equity in the dwelling securing 

the consumer credit transaction so as to no longer be required to 

maintain private mortgage insurance, or such other period as may 

be provided in regulations to address situations such as borrower 

delinquency, unless the underlying mortgage establishing the account is terminated. 

‘‘(d) CLARIFICATION ON ESCROW ACCOUNTS FOR LOANS NOT MEETING STATUTORY TEST.—For mortgages not covered by the requirements of subsection (b), no provision of this section shall be construed as precluding the establishment of an impound, trust, or 

other type of account for the payment of property taxes, insurance 

premiums, or other purposes relating to the property—

‘‘(1) on terms mutually agreeable to the parties to the loan; 

‘‘(2) at the discretion of the lender or servicer, as provided by 

the contract between the lender or servicer and the borrower; 

or 

‘‘(3) pursuant to the requirements for the escrowing of flood 

insurance payments for regulated lending institutions in section 102(d) of the Flood Disaster Protection Act of 1973. 

‘‘(e) ADMINISTRATION OF MANDATORY ESCROW OR IMPOUND ACCOUNTS.—

‘‘(1) IN GENERAL.—Except as may otherwise be provided for 

in this title or in regulations prescribed by the Board, escrow 

or impound accounts established pursuant to subsection (b) 

shall be established in a federally insured depository institution. 

‘‘(2) ADMINISTRATION.—Except as provided in this section or 

regulations prescribed under this section, an escrow or impound account subject to this section shall be administered in 

accordance with—

‘‘(A) the Real Estate Settlement Procedures Act of 1974 

and regulations prescribed under such Act; 

‘‘(B) the Flood Disaster Protection Act of 1973 and regulations prescribed under such Act; and 


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‘‘(C) the law of the State, if applicable, where the real 

property securing the consumer credit transaction is located. ‘‘(3) APPLICABILITY OF PAYMENT OF INTEREST.—If prescribed 

by applicable State or Federal law, each creditor shall pay interest to the consumer on the amount held in any impound, 

trust, or escrow account that is subject to this section in the 

manner as prescribed by that applicable State or Federal law. ‘‘(4) PENALTY COORDINATION WITH RESPA.—Any action or 

omission on the part of any person which constitutes a violation of the Real Estate Settlement Procedures Act of 1974 or 

any regulation prescribed under such Act for which the person 

has paid any fine, civil money penalty, or other damages shall 

not give rise to any additional fine, civil money penalty, or 

other damages under this section, unless the action or omission 

also constitutes a direct violation of this section. ‘‘(f) DISCLOSURES RELATING TO MANDATORY ESCROW OR IMPOUND

ACCOUNT.—In the case of any impound, trust, or escrow account 

that is subject to this section, the creditor shall disclose by written 

notice to the consumer at least 3 business days before the consummation of the consumer credit transaction giving rise to such 

account or in accordance with timeframes established in prescribed 

regulations the following information: ‘‘(1) The fact that an escrow or impound account will be established at consummation of the transaction. ‘‘(2) The amount required at closing to initially fund the escrow or impound account. ‘‘(3) The amount, in the initial year after the consummation 

of the transaction, of the estimated taxes and hazard insurance, including flood insurance, if applicable, and any other required periodic payments or premiums that reflects, as appropriate, either the taxable assessed value of the real property 

securing the transaction, including the value of any improvements on the property or to be constructed on the property 

(whether or not such construction will be financed from the 

proceeds of the transaction) or the replacement costs of the 

property. 

‘‘(4) The estimated monthly amount payable to be escrowed 

for taxes, hazard insurance (including flood insurance, if applicable) and any other required periodic payments or premiums. 

‘‘(5) The fact that, if the consumer chooses to terminate the 

account at the appropriate time in the future, the consumer 

will become responsible for the payment of all taxes, hazard insurance, and flood insurance, if applicable, as well as any other 

required periodic payments or premiums on the property unless a new escrow or impound account is established. 

‘‘(g) DEFINITIONS.—For purposes of this section, the following 

definitions shall apply: 

‘‘(1) FLOOD INSURANCE.—The term ‘flood insurance’ means 

flood insurance coverage provided under the national flood insurance program pursuant to the National Flood Insurance Act 

of 1968. ‘‘(2) HAZARD INSURANCE.—The term ‘hazard insurance’ shall 

have the same meaning as provided for ‘hazard insurance’, 

‘casualty insurance’, ‘homeowner’s insurance’, or other similar 


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term under the law of the State where the real property securing the consumer credit transaction is located.’’. 

(b) IMPLEMENTATION.—

(1) REGULATIONS.—The Board of Governors of the Federal 

Reserve System, the Comptroller of the Currency, the Director 

of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, the National Credit Union Administration 

Board, (hereafter in this Act referred to as the ‘‘Federal banking agencies’’) and the Federal Trade Commission shall prescribe, in final form, such regulations as determined to be necessary to implement the amendments made by subsection (a) 

before the end of the 180-day period beginning on the date of 

the enactment of this Act. 

(2) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall only apply to covered mortgage loans consummated 

after the end of the 1-year period beginning on the date of the 

publication of final regulations in the Federal Register. 

(c) CLERICAL AMENDMENT.—The table of sections for chapter 2 of 

the Truth in Lending Act is amended by inserting after the item 

relating to section 129B (as added by section 201) the following 

new item: 

‘‘129C. Escrow or impound accounts relating to certain consumer credit transactions.’’. 

SEC. 602. DISCLOSURE NOTICE REQUIRED FOR CONSUMERS WHO 

WAIVE ESCROW SERVICES. 

(a) IN GENERAL.—Section 129C of the Truth in Lending Act (as 

added by section 601) is amended by adding at the end the following new subsection: 

‘‘(h) DISCLOSURE NOTICE REQUIRED FOR CONSUMERS WHO WAIVE

ESCROW SERVICES.—

‘‘(1) IN GENERAL.—If—

‘‘(A) an impound, trust, or other type of account for the 

payment of property taxes, insurance premiums, or other 

purposes relating to real property securing a consumer 

credit transaction is not established in connection with the 

transaction; or 

‘‘(B) a consumer chooses, at any time after such an account is established in connection with any such transaction and in accordance with any statute, regulation, or 

contractual agreement, to close such account, 

the creditor or servicer shall provide a timely and clearly written disclosure to the consumer that advises the consumer of 

the responsibilities of the consumer and implications for the 

consumer in the absence of any such account. 

‘‘(2) DISCLOSURE REQUIREMENTS.—Any disclosure provided to 

a consumer under paragraph (1) shall include the following: 

‘‘(A) Information concerning any applicable fees or costs 

associated with either the non-establishment of any such 

account at the time of the transaction, or any subsequent 

closure of any such account. 

‘‘(B) A clear and prominent notice that the consumer is 

responsible for personally and directly paying the nonescrowed items, in addition to paying the mortgage loan 

payment, in the absence of any such account, and the fact 


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12 

that the costs for taxes, insurance, and related fees can be 

substantial. 

‘‘(C) A clear explanation of the consequences of any failure to pay non-escrowed items, including the possible requirement for the forced placement of insurance by the 

creditor or servicer and the potentially higher cost (including any potential commission payments to the servicer) or 

reduced coverage for the consumer in the event of any 

such creditor-placed insurance.’’. 

(b) IMPLEMENTATION.—

(1) REGULATIONS.—The Federal banking agencies and the 

Federal Trade Commission shall prescribe, in final form, such 

regulations as such agencies determine to be necessary to implement the amendments made by subsection (a) before the 

end of the 180-day period beginning on the date of the enactment of this Act. 

(2) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall only apply in accordance with the regulations established in paragraph (1) and beginning on the date occurring 

180-days after the date of the publication of final regulations 

in the Federal Register. 

SEC. 603. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 

AMENDMENTS. 

(a) SERVICER PROHIBITIONS.—Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the following new subsections: 

‘‘(k) SERVICER PROHIBITIONS.—

‘‘(1) IN GENERAL.—A servicer of a federally related mortgage 

shall not—

‘‘(A) obtain force-placed hazard insurance unless there is 

a reasonable basis to believe the borrower has failed to 

comply with the loan contract’s requirements to maintain 

property insurance; 

‘‘(B) charge fees for responding to valid qualified written 

requests (as defined in regulations which the Secretary 

shall prescribe) under this section; 

‘‘(C) fail to take timely action to respond to a borrower’s 

requests to correct errors relating to allocation of payments, final balances for purposes of paying off the loan, 

or avoiding foreclosure, or other standard servicer’s duties; 

‘‘(D) fail to respond within 10 business days to a request 

from a borrower to provide the identity, address, and other 

relevant contact information about the owner assignee of 

the loan; or 

‘‘(E) fail to comply with any other obligation found by 

the Secretary, by regulation, to be appropriate to carry out 

the consumer protection purposes of this Act. 

‘‘(2) FORCE-PLACED INSURANCE DEFINED.—For purposes of 

this subsection and subsections (l) and (m), the term ‘forceplaced insurance’ means hazard insurance coverage obtained 

by a servicer of a federally related mortgage when the borrower has failed to maintain or renew hazard insurance on 

such property as required of the borrower under the terms of 

the mortgage. 


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‘‘(l) REQUIREMENTS FOR FORCE-PLACED INSURANCE.—A servicer of 

a federally related mortgage shall not be construed as having a 

reasonable basis for obtaining force-placed insurance unless the requirements of this subsection have been met. ‘‘(1) WRITTEN NOTICES TO BORROWER.—A servicer may not 

impose any charge on any borrower for force-placed insurance 

with respect to any property securing a federally related mortgage unless— ‘‘(A) the servicer has sent, by first-class mail, a written 

notice to the borrower containing— ‘‘(i) a reminder of the borrower’s obligation to maintain hazard insurance on the property securing the 

federally related mortgage; ‘‘(ii) a statement that the servicer does not have evidence of insurance coverage of such property; ‘‘(iii) a clear and conspicuous statement of the procedures by which the borrower may demonstrate that 

the borrower already has insurance coverage; and ‘‘(iv) a statement that the servicer may obtain such 

coverage at the borrower’s expense if the borrower 

does not provide such demonstration of the borrower’s 

existing coverage in a timely manner; ‘‘(B) the servicer has sent, by first-class mail, a second 

written notice, at least 30 days after the mailing of the notice under subparagraph (A) that contains all the information described in each clauses of such subparagraph; and ‘‘(C) the servicer has not received from the borrower any 

demonstration of hazard insurance coverage for the property securing the mortgage by the end of the 15-day period 

beginning on the date the notice under subparagraph (B) 

was sent by the servicer. ‘‘(2) SUFFICIENCY OF DEMONSTRATION.—A servicer of a federally related mortgage shall accept any reasonable form of written confirmation from a borrower of existing insurance coverage, which shall include the existing insurance policy number along with the identity of, and contact information for, the 

insurance company or agent. ‘‘(3) TERMINATION OF FORCE-PLACED INSURANCE.—Within 15 

days of the receipt by a servicer of confirmation of a borrower’s 

existing insurance coverage, the servicer shall— ‘‘(A) terminate the force-placed insurance; and 

‘‘(B) refund to the consumer all force-placed insurance 

premiums paid by the borrower during any period during 

which the borrower’s insurance coverage and the forceplaced insurance coverage were each in effect, and any related fees charged to the consumer’s account with respect 

to the force-placed insurance during such period. ‘‘(4) CLARIFICATION WITH RESPECT TO FLOOD DISASTER PROTECTION ACT.—No provision of this section shall be construed 

as prohibiting a servicer from providing simultaneous or concurrent notice of a lack of flood insurance pursuant to section 

102(e) of the Flood Disaster Protection Act of 1973. ‘‘(m) LIMITATIONS ON FORCE-PLACED INSURANCE CHARGES.—All 

charges for force-placed insurance premiums shall be bona fide and 

reasonable in amount. 


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‘‘(n) PROMPT CREDITING OF PAYMENTS REQUIRED.— ‘‘(1) IN GENERAL.—All amounts received by a lender or a 

servicer on a home loan at the address where the borrower has 

been instructed to make payments shall be accepted and credited, or treated as credited, on the business day received, to the 

extent that the borrower has made the full contractual payment and has provided sufficient information to credit the account. ‘‘(2) SCHEDULED METHOD.—If a servicer uses the scheduled 

method of accounting, any regularly scheduled payment made 

prior to the scheduled due date shall be credited no later than 

the due date. ‘‘(3) NOTICE OF NONCREDIT.—If any payment is received by a 

lender or a servicer on a home loan and not credited, or treated 

as credited, the borrower shall be notified within 10 business 

days by mail at the borrower’s last known address of the disposition of the payment, the reason the payment was not credited, or treated as credited to the account, and any actions necessary by the borrower to make the loan current.’’. 

(b) INCREASE IN PENALTY AMOUNTS.—Section 6(f) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(f)) is 

amended—

(1) in paragraphs (1)(B) and (2)(B), by striking ‘‘$1,000’’ each 

place such term appears and inserting ‘‘$2,000’’; and 

(2) in paragraph (2)(B)(i), by striking ‘‘$500,000’’ and inserting ‘‘$1,000,000’’. 

(c) DECREASE IN RESPONSE TIMES.—Section 6(e) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(e)) is 

amended— (1) in paragraph (1)(A), by striking ‘‘20 days’’ and inserting ‘‘10 days’’; 

(2) in paragraph (2), by striking ‘‘60 days’’ and inserting ‘‘30 

days’’; and 

(3) by adding at the end the following new paragraph: 

‘‘(4) LIMITED EXTENSION OF RESPONSE TIME.—The 30-day period described in paragraph (2) may be extended for not more 

than 30 days if, before the end of such 30-day period, the 

servicer notifies the borrower of the extension and the reasons 

for the delay in responding.’’. (d) REQUESTS FOR PAY-OFF AMOUNTS.—Section 6(e) of the Real 

Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(e)) is 

amended by inserting after paragraph (4) (as added by subsection 

(c) of this section) the following new paragraph: 

‘‘(5) REQUESTS FOR PAY-OFF AMOUNTS.—A creditor or servicer 

shall send a payoff balance within 7 business days of the receipt of a written request for such balance from or on behalf 

of the borrower.’’. 

(e) PROMPT REFUND OF ESCROW ACCOUNTS UPON PAYOFF.—Section 6(g) of the Real Estate Settlement Procedures Act of 1974 (12 

U.S.C. 2605(g)) is amended by adding at the end the following new 

sentence: ‘‘Any balance in any such account that is within the 

servicer’s control at the time the loan is paid off shall be promptly 

returned to the borrower within 20 business days or credited to a 

similar account for a new mortgage loan to the borrower with the 

same lender.’’. 


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SEC. 604. MORTGAGE SERVICING STUDIES REQUIRED. 

(a) MORTGAGE SERVICING PRACTICES.—

(1) STUDY.—The Secretary of Housing and Urban Development, in consultation with the Federal banking agencies, and 

the Federal Trade Commission, shall conduct a comprehensive 

study on mortgage servicing practices and their potential for 

fraud and abuse. 

(2) ISSUES TO BE INCLUDED.—In addition to other issues the 

Secretary of Housing and Urban Development, the Federal 

banking agencies, and the Federal Trade Commission may determine to be appropriate and possibly pertinent to the study 

conducted under paragraph (1), the study shall include the following issues: 

(A) A survey of the industry in order to examine the 

issue of the timely or effective posting of payments by 

servicers. 

(B) The employment of daily interest when payments are 

made after a due date. 

(C) The charging of late fees on the entire outstanding 

principal. 

(D) The charging of interest on servicing fees. 

(E) The utilization of collection practices that failed to 

comply with the Fair Debt Collection Practices Act. 

(F) The charging of prepayment penalties when not authorized by either the note or law. 

(G) The employment of unconscionable forbearance 

agreements. 

(H) Foreclosure abuses. 

(3) REPORT.—Before the end of the 12-month period beginning on the date of the enactment of this Act, the Secretary of 

Housing and Urban Development shall submit a report on the 

study conducted under this subsection to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. 

(b) MORTGAGE SERVICING IMPROVEMENTS.—

(1) STUDY.—The Secretary of Housing and Urban Development, in consultation with the Federal banking agencies, and 

the Federal Trade Commission, shall conduct a comprehensive 

study on means to improve the best practices of the mortgage 

servicing industry, and Federal and State laws governing such 

industry. 

(2) REPORT.—Before the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of 

Housing and Urban Development shall submit a report on the 

study conducted under this subsection to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, 

together with such recommendations for administrative or legislative action as the Secretary, in consultation with the Board 

and the Commission, may determine to be appropriate. 

SEC. 605. ESCROWS INCLUDED IN REPAYMENT ANALYSIS. 

(a) IN GENERAL.—Section 128(b) of the Truth in Lending Act (15 

U.S.C. 1638(b)) is amended by adding at the end the following new 

paragraph: 


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‘‘(4) REPAYMENT ANALYSIS REQUIRED TO INCLUDE ESCROW

PAYMENTS.—

‘‘(A) IN GENERAL.—In the case of any consumer credit 

transaction secured by a first mortgage or lien on the principal dwelling of the consumer, other than a consumer 

credit transaction under an open end credit plan or a reverse mortgage, for which an impound, trust, or other type 

of account has been or will be established in connection 

with the transaction for the payment of property taxes, 

hazard and flood (if any) insurance premiums, or other 

periodic payments or premiums with respect to the property, the information required to be provided under subsection (a) with respect to the number, amount, and due 

dates or period of payments scheduled to repay the total 

of payments shall take into account the amount of any 

monthly payment to such account for each such repayment 

in accordance with section 10(a)(2) of the Real Estate Settlement Procedures Act of 1974. 

‘‘(B) ASSESSMENT VALUE.—The amount taken into account under subparagraph (A) for the payment of property 

taxes, hazard and flood (if any) insurance premiums, or 

other periodic payments or premiums with respect to the 

property shall reflect the taxable assessed value of the real 

property securing the transaction after the consummation 

of the transaction, including the value of any improvements on the property or to be constructed on the property 

(whether or not such construction will be financed from 

the proceeds of the transaction), if known, and the replacement costs of the property for hazard insurance, in the initial year after the transaction.’’. 

TITLE VII—APPRAISAL ACTIVITIES 

SEC. 701. PROPERTY APPRAISAL REQUIREMENTS. 

Section 129 of the Truth in Lending Act (15 U.S.C. 1639) is 

amended by inserting after subsection (u) (as added by section 

303(f)) the following new subsection: 

‘‘(v) PROPERTY APPRAISAL REQUIREMENTS.—

‘‘(1) IN GENERAL.—A creditor may not extend credit in the 

form of a mortgage referred to in section 103(aa) to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared in accordance with the requirements of this subsection. 

‘‘(2) APPRAISAL REQUIREMENTS.—

‘‘(A) PHYSICAL PROPERTY VISIT.—An appraisal of property 

to be secured by a mortgage referred to in section 103(aa) 

does not meet the requirement of this subsection unless it 

is performed by a qualified appraiser who conducts a physical property visit of the interior of the mortgaged property. ‘‘(B) SECOND APPRAISAL UNDER CERTAIN CIR- CUMSTANCES.— ‘‘(i) IN GENERAL.—If the purpose of a mortgage referred to in section 103(aa) is to finance the purchase 


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or acquisition of the mortgaged property from a person 

within 180 days of the purchase or acquisition of such 

property by that person at a price that was lower than 

the current sale price of the property, the creditor 

shall obtain a second appraisal from a different qualified appraiser. The second appraisal shall include an 

analysis of the difference in sale prices, changes in 

market conditions, and any improvements made to the 

property between the date of the previous sale and the 

current sale. ‘‘(ii) NO COST TO CONSUMER.—The cost of any second 

appraisal required under clause (i) may not be charged 

to the consumer. ‘‘(C) QUALIFIED APPRAISER DEFINED.—For purposes of 

this subsection, the term ‘qualified appraiser’ means a person who—

‘‘(i) is certified or licensed by the State in which the 

property to be appraised is located; and ‘‘(ii) performs each appraisal in conformity with the 

Uniform Standards of Professional Appraisal Practice 

and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and the regulations prescribed under such title, as in effect on the 

date of the appraisal. ‘‘(3) FREE COPY OF APPRAISAL.—A creditor shall provide 1 

copy of each appraisal conducted in accordance with this subsection in connection with a mortgage referred to in section 

103(aa) to the consumer without charge, and at least 3 days 

prior to the transaction closing date. ‘‘(4) CONSUMER NOTIFICATION.—At the time of the initial 

mortgage application, the consumer shall be provided with a 

statement by the creditor that any appraisal prepared for the 

mortgage is for the sole use of the creditor, and that the consumer may choose to have a separate appraisal conducted at 

their own expense. ‘‘(5) VIOLATIONS.—In addition to any other liability to any 

person under this title, a creditor found to have willfully failed 

to obtain an appraisal as required in this subsection shall be 

liable to the consumer for the sum of $2,000.’’. 

SEC. 702. UNFAIR AND DECEPTIVE PRACTICES AND ACTS RELATING 

TO CERTAIN CONSUMER CREDIT TRANSACTIONS. 

(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15 

U.S.C. 1631 et seq.) is amended by inserting after section 129C (as 

added by section 601) the following new section: 

‘‘SEC. 129D. UNFAIR AND DECEPTIVE PRACTICES AND ACTS RELATING 

TO CERTAIN CONSUMER CREDIT TRANSACTIONS. 

‘‘(a) IN GENERAL.—It shall be unlawful, in providing any services 

for a consumer credit transaction secured by the principal dwelling 

of the consumer, to engage in any unfair or deceptive act or practice as described in or pursuant to regulations prescribed under 

this section. 

‘‘(b) APPRAISAL INDEPENDENCE.—For purposes of subsection (a), 

unfair and deceptive practices shall include—

‘‘(1) any appraisal of a property offered as security for repayment of the consumer credit transaction that is conducted in 


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connection with such transaction in which a person with an interest in the underlying transaction compensates, coerces, extorts, colludes, instructs, induces, bribes, or intimidates a person conducting or involved in an appraisal, or attempts, to 

compensate, coerce, extort, collude, instruct, induce, bribe, or 

intimidate such a person, for the purpose of causing the appraised value assigned, under the appraisal, to the property to 

be based on any factor other than the independent judgment 

of the appraiser; ‘‘(2) mischaracterizing, or suborning any mischaracterization 

of, the appraised value of the property securing the extension 

of the credit; ‘‘(3) seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the making or pricing 

of the transaction; and ‘‘(4) failing to timely compensate an appraiser for a completed appraisal regardless of whether the transaction closes. ‘‘(c) EXCEPTIONS.—The requirements of subsection (b) shall not be 

construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, 

employee of an appraisal management company, or any other person with an interest in a real estate transaction from asking an appraiser to provide 1 or more of the following services: ‘‘(1) Consider additional, appropriate property information, 

including the consideration of additional comparable properties 

to make or support an appraisal. ‘‘(2) Provide further detail, substantiation, or explanation for 

the appraiser’s value conclusion. ‘‘(3) Correct errors in the appraisal report. ‘‘(d) RULEMAKING PROCEEDINGS.—The Board, the Comptroller of 

the Currency, the Director of the Office of Thrift Supervision, the 

Federal Deposit Insurance Corporation, the National Credit Union 

Administration Board, and the Federal Trade Commission— ‘‘(1) shall, for purposes of this section, jointly prescribe regulations defining with specificity acts or practices which are unfair or deceptive in the provision of mortgage lending services 

for a consumer credit transaction secured by the principal 

dwelling of the consumer or mortgage brokerage services for 

such a transaction and defining any terms in this section or 

such regulations; and ‘‘(2) may jointly issue interpretive guidelines and general 

statements of policy with respect to unfair or deceptive acts or 

practices in the provision of mortgage lending services for a 

consumer credit transaction secured by the principal dwelling 

of the consumer and mortgage brokerage services for such a 

transaction, within the meaning of subsections (a), (b), and (c). ‘‘(e) PENALTIES.—

‘‘(1) FIRST VIOLATION.—In addition to the enforcement provisions referred to in section 130, each person who violates this 

section shall forfeit and pay a civil penalty of not more than 

$10,000 for each day any such violation continues. 

‘‘(2) SUBSEQUENT VIOLATIONS.—In the case of any person on 

whom a civil penalty has been imposed under paragraph (1), 

paragraph (1) shall be applied by substituting ‘$20,000’ for ‘$10,000’ with respect to all subsequent violations. 


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‘‘(3) ASSESSMENT.—The agency referred to in subsection (a) 

or (c) of section 108 with respect to any person described in 

paragraph (1) shall assess any penalty under this subsection to 

which such person is subject.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for chapter 2 of 

the Truth in Lending Act is amended by inserting after the item 

relating to section 129C (as added by section 601) the following 

new item: 

‘‘129D. Unfair and deceptive practices and acts relating to certain consumer credit 

transactions.’’. 

SEC. 703. APPRAISAL SUBCOMMITTEE OF FIEC, APPRAISER INDEPENDENCE, AND APPROVED APPRAISER EDUCATION. 

(a) CONSUMER PROTECTION MISSION.—

(1) PURPOSE.—A purpose for the establishment and operation 

of the Appraisal Subcommittee of the Financial Institutions 

Examination Council (hereafter in this section referred to as 

the ‘‘Appraisal Subcommittee’’) shall be to establish a consumer protection mandate. 

(2) FUNCTIONS OF APPRAISAL SUBCOMMITTEE.—It shall be a 

function of the Appraisal Subcommittee to protect the consumer from improper appraisal practices and the predations of 

unlicensed appraisers. 

(3) THRESHOLD LEVELS.—In establishing a threshold level 

under section 1112(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3341(b)), each 

agency shall determine in writing that the threshold level provides reasonable protection for consumers who purchase 1-4 

unit single-family residences. 

(b) ANNUAL REPORT OF APPRAISAL SUBCOMMITTEE.—The annual 

report of the Appraisal Subcommittee under section 1103(a)(4) of 

Financial Institutions Reform, Recovery, and Enforcement Act of 

1989 shall detail the activities of the Appraisal Subcommittee, including the results of all audits of State appraiser regulatory agencies, and provide an accounting of disapproved actions and warnings taken in the previous year, including a description of the conditions causing the disapproval. 

(c) OPEN MEETINGS.—All meetings of the Appraisal Subcommittee shall be held in public session after notice in the Federal 

Register. 

(d) REGULATIONS.—The Appraisal Subcommittee may prescribe 

regulations after notice and opportunity for comment. Any regulations prescribed by the Appraisal Subcommittee shall (unless otherwise provided in this section or title XI of the Financial Institutions 

Reform, Recovery, and Enforcement Act of 1989) be limited to the 

following functions: temporary practice, national registry, information sharing, and enforcement. For purposes of prescribing regulations, the Appraisal Subcommittee shall establish an advisory committee of industry participants, including appraisers, lenders, consumer advocates, and government agencies, and hold regular meetings. 

(e) FIELD APPRAISALS AND APPRAISAL REVIEWS.—All field appraisals performed at a property within a State shall be prepared 

by appraisers licensed in the State where the property is located. 

All Uniform Standards of Professional Appraisal Practice-compliant 


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appraisal reviews shall be performed by an appraiser who is duly 

licensed by a State appraisal board. 

(f) STATE AGENCY REPORTING REQUIREMENT.—Each State with 

an appraiser certifying and licensing agency whose certifications 

and licenses comply with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 shall transmit reports 

on sanctions, disciplinary actions, license and certification revocations, and license and certification suspensions on a timely basis to 

the national registry of the Appraisal Subcommittee. 

(g) REGISTRY FEES MODIFIED.— (1) IN GENERAL.—The annual registry fees for persons performing appraisals in federally related transactions shall be increased from $25 to $40. The maximum amount up to which 

the Appraisal Subcommittee may adjust any registry fees shall 

be increased from $50 to $80 per annum. The Appraisal Subcommittee shall consider at least once every 5 years whether 

to adjust the dollar amount of the registry fees to account for 

inflation. In implementing any change in registry fees, the Appraisal Subcommittee shall provide flexibility to the States for 

multi-year certifications and licenses already in place, as well 

as a transition period to implement the changes in registry 

fees. 

(2) INCREMENTAL REVENUES.—Incremental revenues collected 

pursuant to the increases required by this section shall be 

placed in a separate account at the United States Treasury, entitled the Appraisal Subcommittee Account. 

(h) GRANTS AND REPORTS.— (1) IN GENERAL.—Amounts appropriated for or collected by 

the Appraisal Subcommittee after the date of the enactment of 

this Act shall, in addition to other uses authorized, be used— (A) to make grants to State appraiser regulatory agencies to help defray those costs relating to enforcement activities; and 

(B) to report to all State appraiser certifying and licensing agencies when a license or certification is surrendered, 

revoked, or suspended. 

(2) LIMITATION ON OBLIGATIONS.—Obligations authorized 

under this section may not exceed 75 percent of the fiscal year 

total of incremental increase in fees collected and deposited in 

the Appraisal Subcommittee Account pursuant to section 

703(g) of this Act. 

(i) CRITERIA.—

(1) DEFINITION.—For purposes of this section and title XI of 

the Financial Institutions Reform, Recovery, and Enforcement 

Act of 1989 (notwithstanding section 1116(c) of such title), the 

term ‘‘State licensed appraiser’’ means an individual who has 

satisfied the requirements for State licensing in a State or territory whose criteria for the licensing of a real estate appraiser 

currently meet or exceed the minimum criteria issued by the 

Appraisal Qualifications Board of The Appraisal Foundation 

for the licensing of real estate appraisers. 

(2) MINIMUM QUALIFICATION REQUIREMENTS.—Any requirements established for individuals in the position of ‘‘Trainee 

Appraiser’’ and ‘‘Supervisory Appraiser’’ shall meet or exceed 

the minimum qualification requirements of the Appraiser 


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21 

Qualifications Board of The Appraisal Foundation. The Appraisal Subcommittee shall have the authority to enforce these 

requirements. 

(j) MONITORING OF STATE APPRAISER CERTIFYING AND LICENSING

AGENCIES.—The Appraisal Subcommittee shall monitor State appraiser certifying and licencing agencies for the purpose of determining whether a State agency’s funding and staffing are consistent with the requirements of title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, whether a 

State agency processes complaints and completes exams in a reasonable time period, and whether a State agency reports claims 

and disciplinary actions on a timely basis to the national registry 

maintained by the Appraisal Subcommittee. The Appraisal Subcommittee shall have the authority to impose interim sanctions and 

suspensions. 

(k) RECIPROCITY.—A State appraiser certifying or licensing agency shall issue a reciprocal certification or license for an individual 

from another State when—

(1) the appraiser licensing and certification program of such 

other State is in compliance with the provisions of this title; 

and 

(2) the appraiser holds a valid certification from a State 

whose requirements for certification or licensing meet or exceed the licensure standards established by the State where an 

individual seeks appraisal licensure. 

(l) CONSIDERATION OF PROFESSIONAL APPRAISAL DESIGNATIONS.— No provision of section 1122(d) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 shall be construed as 

prohibiting consideration of designations conferred by recognized 

national professional appraisal organizations, such as sponsoring 

organizations of The Appraisal Foundation. 

(m) APPRAISER INDEPENDENCE.—

(1) PROHIBITIONS ON INTERESTED PARTIES IN A REAL ESTATE

TRANSACTION.—No mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, nor any 

other person with an interest in a real estate transaction involving an appraisal shall improperly influence, or attempt to 

improperly influence, through coercion, extortion, collusion, 

compensation, instruction, inducement, intimidation, non-payment for services rendered, or bribery, the development, reporting, result, or review of a real estate appraisal sought in 

connection with a mortgage loan. 

(2) EXCEPTIONS.—The requirements of paragraph (1) shall 

not be construed as prohibiting a mortgage lender, mortgage 

broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person with an interest in a real estate 

transaction from asking an appraiser to provide 1 or more of 

the following services: 

(A) Consider additional, appropriate property information, including the consideration of additional comparable 

properties to make or support an appraisal. 

(B) Provide further detail, substantiation, or explanation 

for the appraiser’s value conclusion. 


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(C) Correct errors in the appraisal report. 

(3) PROHIBITIONS ON CONFLICTS OF INTEREST.—No certified 

or licensed appraiser conducting an appraisal may have a direct or indirect interest, financial or otherwise, in the property 

or transaction involving the appraisal. 

(4) MANDATORY REPORTING.—Any mortgage lender, mortgage 

broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person with an interest in a real estate 

transaction involving an appraisal who has a reasonable basis 

to believe an appraiser is violating applicable laws, or is otherwise engaging in unethical conduct, shall refer the matter to 

the applicable State appraiser certifying and licensing agency. 

(5) REGULATIONS.—The Federal financial institutions regulatory agencies (as defined in section 1003(1) of the Federal Financial Institutions Examination Council Act of 1978) shall 

prescribe such regulations as may be necessary to carry out the 

provisions of this subsection. 

(6) PENALTIES.—Any person who violates any provision of 

this subsection shall be subject to civil penalties under section 

8(i)(2) of the Federal Deposit Insurance Act or section 206(k)(2) 

of the Federal Credit Union Act, as appropriate. 

(7) PROCEEDING.—A proceeding with respect to a violation of 

this subsection shall be an administrative proceeding which 

may be conducted by a Federal financial institutions regulatory 

agency in accordance with the procedures set forth in subchapter II of chapter 5 of title 5, United States Code. 

(n) APPROVED EDUCATION.—The Appraisal Subcommittee shall 

encourage the States to accept courses approved by the Appraiser 

Qualification Board’s Course Approval Program. 

SEC. 704. STUDY REQUIRED ON IMPROVEMENTS IN APPRAISAL PROCESS AND COMPLIANCE PROGRAMS. 

(a) STUDY.—The Comptroller General shall conduct a comprehensive study on possible improvements in the appraisal process generally, and specifically on the consistency in and the effectiveness 

of, and possible improvements in, State compliance efforts and programs in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. In addition, this 

study shall examine the existing de minimis loan levels established 

by Federal regulators for compliance under title XI and whether 

there is a need to revise them to reflect the addition of consumer 

protection to the purposes and functions of the Appraisal Subcommittee. 

(b) REPORT.—Before the end of the 18-month period beginning on 

the date of the enactment of this Act, the Comptroller General 

shall submit a report on the study under subsection (a) to the Committee on Financial Services of the House of Representatives and 

the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for administrative or legislative action, at the Federal or State level, as the Comptroller 

General may determine to be appropriate. 


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SEC. 705. CONSUMER APPRAISAL DISCLOSURE. 

(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15 

U.S.C. 1631 et seq.) is amended by inserting after section 129D (as 

added by section 702) the following new section: 

‘‘SEC. 129E. CONSUMER APPRAISAL DISCLOSURE. 

‘‘In any case in which an appraisal is performed in connection 

with an extension of credit secured by an interest in real property, 

the creditor or other mortgage originator shall make available to 

the applicant for the extension of credit a copy of all appraisal 

valuation reports upon completion but no later than 3 business 

days prior to the transaction closing date.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for chapter 2 of 

the Truth in Lending Act is amended by inserting after the item 

relating to section 129D (as added by section 702) the following 

new item: 

‘‘129E. Consumer appraisal disclosure.’’. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MALONEY

OF NEW YORK, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 66, after line 3, insert the following new paragraph (and redesignate the subsequent paragraph accordingly): 

‘‘(2) PHASED-OUT PENALTIES ON QUALIFIED MORTGAGES.—A 

qualified mortgage (as defined in subsection (c)) may not contain terms under which a consumer must pay a prepayment 

penalty for paying all or part of the principal after the loan is 

consummated in excess of the following limitations: 

‘‘(A) During the 1-year period beginning on the date the 

loan is consummated, the prepayment penalty shall not exceed an amount equal to 3 percent of the outstanding balance on the loan. 

‘‘(B) During the 1-year period beginning after the period 

described in subparagraph (A), the prepayment penalty 

shall not exceed an amount equal to 2 percent of the outstanding balance on the loan. 

‘‘(C) During the 1-year period beginning after the 1-year 

period described in subparagraph (B), the prepayment penalty shall not exceed an amount equal to 1 percent of the 

outstanding balance on the loan. 

‘‘(D) After the end of the 3-year period beginning on the 

date the loan is consummated, no prepayment penalty may 

be imposed on a qualified mortgage.’’. 

Page 66, after line 11, insert the following new paragraph: 

‘‘(4) OPTION FOR NO PREPAYMENT PENALTY REQUIRED.—A 

creditor may not offer a consumer a residential mortgage loan 

product that has a prepayment penalty for paying all or part 

of the principal after the loan is consummated as a term of the 

loan without offering the consumer a residential mortgage loan 

product that does not have a prepayment penalty as a term of 

the loan.’’. 


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24 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WATT OF

NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 46, line 7, insert ‘‘the greater of actual damages or’’ after 

‘‘shall not exceed’’. 

5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WATT OF

NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 60, line 3, strike ‘‘or’’ and insert ‘‘and’’. 

6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WATT OF

NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 52, strike lines 13 and 14 and insert the following new subparagraph: 

‘‘(B) if such loan is—

‘‘(i) a qualified safe harbor mortgage; or 

‘‘(ii) a nontraditional mortgage.’’. 

Page 56, after line 3, insert the following new subparagraph: 

‘‘(D) NONTRADITIONAL MORTGAGE.—The term ‘nontraditional mortgage’ means any residential mortgage loan that 

allows a borrower to defer payment of principal or interest.’’. 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

HENSARLING OF TEXAS, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

Page 73, after line 25, insert the following new section (and redesignate subsequent sections accordingly): 

SEC. 211. LENDER RIGHTS IN THE CONTEXT OF BORROWER DECEPTION. 

Section 130 of the Truth in Lending Act is amended by adding 

at the end the following new subsection: 

‘‘(j) EXEMPTION FROM LIABILITY AND RESCISSION IN CASE OF BORROWER FRAUD OR DECEPTION.—In addition to any other remedy 

available by law or contract, no creditor, assignee, or securitizer 

shall be liable to an obligor under this section, nor shall it be subject to the right of rescission of any obligor under 129B, if such obligor, or co-obligor, knowingly, or willfully furnished material information known to be false for the purpose of obtaining such residential mortgage loan.’’. 

8. AN AMENDMENT TO THE AMENDMENT NUMBERED 7 BY REPRESENTATIVE HENSARLING TO BE OFFERED BY REPRESENTATIVE

WATT OF NORTH CAROLINA OR A DESIGNEE, DEBATABLE FOR 10 

MINUTES

In the amendment, insert ‘‘and with actual knowledge’’ after 

‘‘willfully’’. 


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25 

9. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MEEKS OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 15, line 10, strike ‘‘reviewed, approved, and’’ and insert ‘‘reviewed, and’’. Page 15, after line 12, insert the following new paragraph: 

(3) LIMITATION AND STANDARDS.— (A) LIMITATION.—To maintain the independence of the 

approval process, the Nationwide Mortgage Licensing System and Registry shall not directly or indirectly offer prelicensure educational courses for loan originators. 

(B) STANDARDS.—In approving courses under this section, the Nationwide Mortgage Licensing System and Registry shall apply reasonable standards in the review and 

approval of courses. 

Page 15, line 13, strike ‘‘and administered’’. Page 15, line 14, insert ‘‘and administered by an approved test 

provider’’ before the period. 

Page 17, line 23, strike ‘‘reviewed, approved, and’’ and insert ‘‘reviewed, and’’. 

Page 18, after line 14, insert the following new paragraph: 

(5) LIMITATION AND STANDARDS.—

(A) LIMITATION.—To maintain the independence of the 

approval process, the Nationwide Mortgage Licensing System and Registry shall not directly or indirectly offer any 

continuing education courses for loan originators. 

(B) STANDARDS.—In approving courses under this section, the Nationwide Mortgage Licensing System and Registry shall apply reasonable standards in the review and 

approval of courses. 

10. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE PUTNAM

OF FLORIDA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 79, after line 20, insert the following new section (and 

amend the table of contents accordingly): 

SEC. 214. REPORT BY THE GAO. 

(a) REPORT REQUIRED.—The Comptroller General shall conduct a 

study to determine the effects the enactment of this Act will have 

on the availability and affordability of credit for homebuyers and 

mortgage lending, including the effect—

(1) on the mortgage market for mortgages that are not within the safe harbor provided in the amendments made by this 

title; 

(2) on the ability of prospective homebuyers to obtain financing; 

(3) on the ability of homeowners facing resets or adjustments 

to refinance—for example, do they have fewer refinancing options due to the unavailability of certain loan products that 

were available before the enactment of this Act; 

(4) on minorities’ ability to access affordable credit compared 

with other prospective borrowers; 

(5) on home sales and construction; 

(6) of extending the rescission right, if any, on adjustable 

rate loans and its impact on litigation; 


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26 

(7) of State foreclosure laws and, if any, an investor’s ability 

to transfer a property after foreclosure; 

(8) of expanding the existing provisions of the Home Ownership and Equity Protection Act of 1994; 

(9) of prohibiting prepayment penalties on high-cost mortgages; and 

(10) of establishing counseling services under the Department of Housing and Urban Development and offered through 

the Office of Housing Counseling. 

(b) REPORT.—Before the end of the 1-year period beginning on 

the date of the enactment of this Act, the Comptroller General 

shall submit a report to the Congress containing the findings and 

conclusions of the Comptroller General with respect to the study 

conducted pursuant to subsection (a). 

11. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BROWNWAITE OF FLORIDA, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 54, line 14, strike ‘‘and’’. 

Page 54, line 16, strike the period and insert ‘‘; and’’. 

Page 54, after line 16, insert the following new clause: 

‘‘(iv) a mortgage insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.).’’. 

12. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE GARRETT

OF NEW JERSEY, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 52, strike line 9 and all that follows through line 15 (and 

redesignate subsequent paragraphs accordingly). 

13. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MILLER

OF NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 64, line 12, strike the closing quotation marks and the second period. 

Page 64, after line 12, insert the following new paragraphs: ‘‘(10) PATTERN OR PRACTICE OF VIOLATIONS.— ‘‘(A) IN GENERAL.—In addition to any money penalty that 

may be imposed by any agency referred to in subsection (a) 

or (c) of section 108 under any provision of law referred to 

in such section in connection with such agency or any 

other enforcement action taken by such agency under such 

section, any creditor, assignee, or securitizer which engages in a pattern or practice of originating, assigning, or 

securitizing residential mortgage loans that violate subsection (a) or (b) shall forfeit and pay a civil penalty of—

‘‘(i) not less than $25,000 for each such loan; and 

‘‘(ii) $1,000,000 for engaging in such pattern or practice. ‘‘(B) INFORMATION.—Any person may submit information 

to any agency referred to in subparagraph (A) regarding 

any pattern or practice of violating subsection (a) or (b) 

and such agency shall promptly bring such complaint to 


bajohnson on PROD1PC71 with REPORTS
27 

the attention of any other such agency which may have jurisdiction over any person involved in the alleged violation. 

‘‘(11) TRUST FUND FOR CONSUMERS WITHOUT REMEDY.—

‘‘(A) IN GENERAL.—Any civil money penalty collected 

under paragraph (10) shall be transferred to the Secretary 

of the Treasury to be held in trust in the Consumers Rescission and Cure Remedial Fund for the benefit of borrowers with residential mortgage loans that were originated in violation of subsection (a) or (b) for which the consumers are eligible for rescission or cure but have no party 

against whom to assert such remedies. 

‘‘(B) REGULATIONS.—The Secretary of the Treasury shall 

prescribe regulations establishing—

‘‘(i) a claims process for consumers described in subparagraph (A) to file claims against the Consumers 

Rescission and Cure Remedial Fund for rescission or 

cure of a residential mortgage loan that was originated in violation of subsection (a) or (b); 

‘‘(ii) a procedure for administrative determination of 

claims, and the allowance or disallowance of any such 

claim, and a review of such determination; and 

‘‘(iii) a process for payment of any claim allowed 

against the Fund to effectuate a rescission or cure as 

part of a final settlement entered into by the consumer 

with the Secretary with respect to such claim. 

‘‘(C) FINALITY.—Any determination by the Secretary 

under this paragraph shall be final and not subject to judicial review.’’. 

14. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE AL GREEN

OF TEXAS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 15, line 7, insert ‘‘which shall include instruction on fraud, 

consumer protection and fair lending issues’’ before the period. 

Page 16, line 6, strike ‘‘and’’ after the semicolon. 

Page 16, line 8, strike the period and insert ‘‘; and’’. 

Page 16, after line 8, insert the following new clause: 

(iv) Federal and State law and regulation, including 

instruction on fraud, consumer protection, and fair 

lending issues. 

Page 17, line 20, insert ‘‘, including education on fraud, consumer 

protection, and fair lending issues.’’. 

15. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MCHENRY

OF NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 80, strike line 1 and all that follows through page 102, line 

26 (all of title III) (and redesignate the subsequent title and sections and conform the table of contents accordingly). 


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28 

16. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE TOM

PRICE OF GEORGIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 36, line 25, insert ‘‘or a qualified mortgage (as defined in 

section 129B(c)(3)(B))’’ before the period at the end. 

17. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE VAN

HOLLEN OF MARYLAND, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

Page 71, line 5, strike the closing quotation marks and the second period. 

Page 71, after line 5, insert the following new subsection: 

‘‘(m) CLOSING COSTS.—In the case of a residential mortgage loan, 

any costs incurred in connection with the consummation of the loan 

may not exceed by more than 10 percent the estimate of the 

amount of such costs disclosed to the consumer in advance of the 

consummation of the loan.’’. 

18. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SUTTON

OF OHIO, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

After section 211, insert the following new section (and redesignate the subsequent sections accordingly): 

SEC. 212. 6-MONTH NOTICE REQUIRED BEFORE RESET OF HYBRID ADJUSTABLE RATE MORTGAGES. 

(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15 

U.S.C. 1631 et seq.) is amended by inserting after section 128 the 

following new section: 

‘‘§ 128A. Reset of hybrid adjustable rate mortgages 

‘‘(a) HYBRID ADJUSTABLE RATE MORTGAGES DEFINED.—For purposes of this section, the term ‘hybrid adjustable rate mortgage’

means a consumer credit transaction secured by the consumer’s 

principal residence with a fixed interest rate for an introductory 

period that adjusts or resets to a variable interest rate after such 

period. 

‘‘(b) NOTICE OF RESET AND ALTERNATIVES.—During the 1-month 

period that ends 6 months before the date on which the interest 

rate in effect during the introductory period of a hybrid adjustable 

rate mortgage adjusts or resets to a variable interest rate, the creditor or servicer of such loan shall provide a written notice, separate 

and distinct from all other correspondence to the consumer, that includes the following: 

‘‘(1) Any index or formula used in making adjustments to or 

resetting the interest rate and a source of information about 

the index or formula. 

‘‘(2) An explanation of how the new interest rate and payment would be determined, including an explanation of how 

the index was adjusted, such as by the addition of a margin. 

‘‘(3) A good faith estimate, based on accepted industry standards, of the creditor or servicer of the amount of the monthly 

payment that will apply after the date of the adjustment or 

reset, and the assumptions on which this estimate is based. 


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29 

‘‘(4) A list of alternatives consumers may pursue before the 

date of adjustment or reset, and descriptions of the actions consumers must take to pursue these alternatives, including— ‘‘(A) refinancing; 

‘‘(B) renegotiation of loan terms; 

‘‘(C) payment forbearances; and 

‘‘(D) pre-foreclosure sales. ‘‘(5) The names, addresses, telephone numbers, and Internet 

addresses of counseling agencies or programs reasonably available to the consumer that have been certified or approved and 

made publicly available by the Secretary of Housing and 

Urban Development or a State housing finance authority (as 

defined in section 1301 of the Financial Institutions Reform, 

Recovery, and Enforcement Act of 1989). ‘‘(6) The address, telephone number, and Internet address for 

the State housing finance authority (as so defined) for the 

State in which the consumer resides.’’. (b) CLERICAL AMENDMENT.—The table of sections for chapter 2 of 

the Truth in Lending Act is amended by inserting after the item 

relating to section 128 the following new item: 

‘‘128A. Reset of hybrid adjustable rate mortgages.’’. 

Æ 


bajohnson on PROD1PC71 with REPORTS