I 

113TH CONGRESS 

1ST SESSION H. R. 1779 

To amend the Truth in Lending Act to modify the definitions of a mortgage 

originator and a high-cost mortgage. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2013 

Mr. FINCHER (for himself, Mr. THOMPSON of Mississippi, and Mr. GARY G. 

MILLER of California) introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to modify the definitions 

of a mortgage originator and a high-cost mortgage. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Preserving Access to 

5 Manufactured Housing Act of 2013’’. 

6 SEC. 2. MORTGAGE ORIGINATOR DEFINITION. 

7 (a) AMENDMENT TO DEFINITION.—Section 1401 of 

8 the Dodd-Frank Wall Street Reform and Consumer Pro9 tection Act is amended, in paragraph (2)(C)(ii) of the 

10 matter proposed to be added to section 103 of the Truth 


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1 in Lending Act, by striking ‘‘an employee of a retailer of 

2 manufactured homes who is not described in clause (i) or 

3 (iii) of subparagraph (A) and who does not advise a con4 sumer on loan terms (including rates, fees, and other 

5 costs)’’ and inserting ‘‘a retailer of manufactured or mod6 ular homes or its employees unless such retailer or its em7 ployees receive compensation or gain for engaging in ac8 tivities described in subparagraph (A) that is in excess of 

9 any compensation or gain received in a comparable cash 

10 transaction’’. 

11 (b) TECHNICAL AMENDMENTS.—(1) Section 1401 of 

12 the Dodd-Frank Wall Street Reform and Consumer Pro13 tection Act is amended, in the matter proposed to be 

14 added to section 103 of the Truth in Lending Act, by re15 designating subsection (cc) as subsection (dd). 

16 (2) Section 1431(d) of the Dodd-Frank Wall Street 

17 Reform and Consumer Protection Act is amended— 

18 (A) by striking ‘‘subsection (cc)’’ and inserting 

19 ‘‘subsection (dd)’’; and 

20 (B) in the matter proposed to be added to sec21 tion 103 of the Truth in Lending Act by redesig22 nating subsection (dd) as subsection (ee). 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall take effect as if included in the provisions 


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1 of the Dodd-Frank Wall Street Reform and Consumer 

2 Protection Act to which they relate. 

3 SEC. 3. HIGH-COST MORTGAGE DEFINITION. 

4 Section 103 of the Truth in Lending Act (15 U.S.C. 

5 1602) is amended— 

6 (1) by redesignating subsection (aa) (relating to 

7 disclosure of greater amount or percentage), as so 

8 designated by section 1100A of Public Law 111– 

9 203, as subsection (bb); 

10 (2) by redesignating subsection (bb) (relating to 

11 high cost mortgages), as so designated by section 

12 1100A of Public Law 111–203, as subsection (aa), 

13 and moving such subsection to immediately follow 

14 subsection (z); and 

15 (3) in subsection (aa)(1)(A), as so redesig16 nated— 

17 (A) in clause (i)(I)— 

18 (i) by striking ‘‘(8.5 percentage 

19 points, if the dwelling is personal property 

20 and the transaction is for less than 

21 $50,000)’’; and 

22 (ii) by striking ‘‘or’’ at the end; 

23 (B) in clause (i)(II), by adding ‘‘or’’ at the 

24 end; 


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1 (C) in clause (i), by adding at the end the 

2 following: 

3 ‘‘(III) by a first mortgage on a 

4 consumer’s principal dwelling that is 

5 considered personal property (or is a 

6 consumer credit transaction that does 

7 not include the purchase of real prop8 erty on which a dwelling is to be 

9 placed), the annual percentage rate at 

10 consummation of the transaction will 

11 exceed the average prime offer rate, 

12 as defined in section 129C(b)(2)(B), 

13 for a comparable transaction, by more 

14 than— 

15 ‘‘(aa) 8.5 percentage points, 

16 in the case of a transaction in an 

17 amount of $50,000 or more, but 

18 less than $75,000 (as such 

19 amounts are adjusted by the Bu20 reau to reflect the change in the 

21 Consumer Price Index); 

22 ‘‘(bb) 10.5 percentage 

23 points, in the case of a trans24 action in an amount of more 

25 than $30,000, but less than 


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1 $50,000 (as such amounts are 

2 adjusted by the Bureau to reflect 

3 the change in the Consumer 

4 Price Index); or 

5 ‘‘(cc) 12.5 percentage 

6 points, in the case of a trans7 action in an amount of $30,000 

8 or less (as such amount is ad9 justed by the Bureau to reflect 

10 the change in the Consumer 

11 Price Index), or a higher percent12 age established by the Bureau 

13 not to exceed 14.5 percentage 

14 points in such cases, if the Bu15 reau determines that the lower 

16 rate would restrict access to cred17 it and that raising the rate would 

18 not have a detrimental impact on 

19 consumer protection.’’; and 

20 (D) in clause (ii)— 

21 (i) in subclause (I), by striking ‘‘or’’ 

22 at the end; and 

23 (ii) by adding at the end the fol24 lowing: 


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1 ‘‘(III) in the case of a trans2 action for less than $75,000 (as such 

3 amount is adjusted by the Bureau to 

4 reflect the change in the Consumer 

5 Price Index) in which the dwelling is 

6 considered personal property (or is a 

7 consumer credit transaction that does 

8 not include the purchase of real prop9 erty on which a dwelling is to be 

10 placed) the greater of 5 percent of the 

11 total transaction amount or $3,000 

12 (as such amount is adjusted by the 

13 Bureau to reflect the change in the 

14 Consumer Price Index); or’’. 

Æ 


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