I 

116TH CONGRESS 

1ST SESSION H. R. 1036 

To amend the Truth in Lending Act to clarify the exclusion for sellerfinancers from the definition of mortgage originator, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 7, 2019 

Mr. RIGGLEMAN introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to clarify the exclusion 

for seller-financers from the definition of mortgage originator, and for other purposes. 

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 Rural Installment Transactions for Years Act of 2019’’ 

6 or the ‘‘PARITY Act of 2019’’. 


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1 SEC. 2. AMENDMENTS RELATED TO THE EXCLUSION OF 

2 SELLER-FINANCERS IN THE DEFINITION OF 

3 MORTGAGE ORIGINATOR. 

4 Section 103(dd)(2)(E) of the Truth in Lending Act 

5 (15 U.S.C. 1602(dd)(2)(E)) is amended— 

6 (1) in the matter preceding clause (i)— 

7 (A) by striking ‘‘3 properties’’ and insert8 ing ‘‘5 properties’’; 

9 (B) by striking ‘‘a person, estate, or trust’’ 

10 and inserting ‘‘a person or entity (including a 

11 corporation, partnership, proprietorship, asso12 ciation, cooperative, estate, or trust)’’; and 

13 (C) by striking ‘‘such person, estate, or 

14 trust’’ and inserting ‘‘such a person or entity’’; 

15 (2) in clause (i)— 

16 (A) by inserting ‘‘or’’ after the semicolon; 

17 (B) by striking ‘‘a person, estate, or trust 

18 that has constructed’’ and inserting ‘‘such a 

19 person or entity that— 

20 ‘‘(I) has constructed’’; and 

21 (C) by inserting at the end the following 

22 new subclause: 

23 ‘‘(II) has received any other com24 pensation related to such loan, includ25 ing origination points or fees and ex26 cluding interest payments;’’; 


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1 (3) by striking clauses (ii), (iii), and (iv); and 

2 (4) by inserting after clause (i) the following 

3 new clauses: 

4 ‘‘(ii) is not a high-cost mortgage; 

5 ‘‘(iii) does not include terms under 

6 which the outstanding principal balance 

7 will increase at any time over the course of 

8 the loan because the regular periodic pay9 ments do not cover the full amount of in10 terest due; 

11 ‘‘(iv) has— 

12 ‘‘(I) a fixed rate; or 

13 ‘‘(II) an adjustable rate that was 

14 not determined by a prior contractual 

15 obligation between the consumer and 

16 such a person or entity and— 

17 ‘‘(aa) is adjustable after 5 

18 or more years (as determined by 

19 the addition of a margin to a 

20 widely available index rate) sub21 ject to reasonable annual and 

22 lifetime limitations on interest 

23 rate increases or is determined 

24 by a prior obligation that is inVerDate Sep 11 2014 00:48 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1036.IH H1036

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1 cluded in or assumed by the 

2 terms of the loan; or 

3 ‘‘(bb) with respect to any 

4 part of such loan contractually 

5 required to be used to make pay6 ments on an existing mortgage 

7 loan secured by such a property, 

8 is adjustable on or after the date 

9 of a rate adjustment on such ex10 isting mortgage loan; and’’. 

Æ 


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