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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 949 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 949

   To amend the Truth in Lending Act to improve upon the definitions 
provided for points and fees in connection with a mortgage transaction.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 14, 2013

  Mr. Manchin (for himself and Mr. Johanns) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
   To amend the Truth in Lending Act to improve upon the definitions 
provided for points and fees in connection with a mortgage transaction.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Mortgage Choice Act''.

SEC. 2. DEFINITION OF POINTS AND FEES.

    (a) Amendment to Section 103 of TILA.--Section 103(bb)(4) of the 
Truth in Lending Act (15 U.S.C. 1602(bb)(4)) is amended--
            (1) by striking ``paragraph (1)(B)'' and inserting 
        ``paragraph (1)(A) and section 129C'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) all compensation paid directly by a consumer 
                to a mortgage originator, including a mortgage 
                originator that is also the creditor in a table-funded 
                transaction, but not including compensation paid by a 
                mortgage originator or a creditor to an individual 
                employed by the mortgage originator or creditor;'';
            (3) in subparagraph (C)--
                    (A) by inserting ``and insurance'' after ``taxes'';
                    (B) in clause (ii), by inserting ``, except as 
                retained by a creditor or its affiliate as a result of 
                their participation in an affiliated business 
                arrangement (as defined in section 2(7) of the Real 
                Estate Settlement Procedures Act of 1974 (12 U.S.C. 
                2602(7))'' after ``compensation''; and
                    (C) by striking clause (iii) and inserting the 
                following:
                            ``(iii) the charge is--
                                    ``(I) a bona fide third-party 
                                charge not retained by the mortgage 
                                originator, creditor, or an affiliate 
                                of the creditor or mortgage originator; 
                                or
                                    ``(II) a charge set forth in 
                                section 106(e)(1);''; and
            (4) in subparagraph (D)--
                    (A) by striking ``accident,''; and
                    (B) by striking ``or any payments'' and inserting 
                ``and any payments''.
    (b) Amendment to Section 129C of TILA.--Section 129C of the Truth 
in Lending Act (15 U.S.C. 1639c) is amended--
            (1) in subsection (a)(5)(C), by striking ``103'' and all 
        that follows through ``or mortgage originator'' and inserting 
        ``103(bb)(4)''; and
            (2) in subsection (b)(2)(C)(i), by striking ``103'' and all 
        that follows through ``or mortgage originator)'' and inserting 
        ``103(bb)(4)''.
                                 <all>
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