I 

113TH CONGRESS 

1ST SESSION H. R. 3529 

To provide exemptions from certain mortgage, servicing, and appraisal requirements for non-profit low-income housing providers, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2013 

Mr. MEADOWS (for himself, Mrs. CAPITO, Mr. MURPHY of Florida, and Mr. 

BUTTERFIELD) introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To provide exemptions from certain mortgage, servicing, and 

appraisal requirements for non-profit low-income housing 

providers, 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 ‘‘Protecting Habitat 

5 Homeownership Act’’. 

6 SEC. 2. EXEMPTIONS. 

7 (a) TRUTH IN LENDING ACT.—The Truth in Lend8 ing Act (15 U.S.C. 1601 et seq.) is amended— 

9 (1) in section 128(f) (15 U.S.C. 1638(f))— 


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1 (A) in paragraph (3)— 

2 (i) by striking ‘‘apply to any fixed 

3 rate’’ and inserting the following: ‘‘apply 

4 to— 

5 ‘‘(A) any fixed rate’’; 

6 (ii) by striking the period and insert7 ing ‘‘; or’’; and 

8 (iii) by adding at the end the fol9 lowing: 

10 ‘‘(B) any residential mortgage loan origi11 nated by a non-profit low-income housing pro12 vider.’’; and 

13 (B) by adding at the end the following: 

14 ‘‘(4) NON-PROFIT LOW-INCOME HOUSING PRO15 VIDER DEFINED.—For purposes of this subsection, 

16 the term ‘non-profit low-income housing provider’ 

17 means an organization that— 

18 ‘‘(A) is exempt from taxation pursuant to 

19 section 501(c)(3) of the Internal Revenue Code 

20 of 1986; 

21 ‘‘(B) makes residential mortgage loans— 

22 ‘‘(i) for the purpose of promoting or 

23 facilitating homeownership for poor or low24 income, disabled, or other disadvantaged 

25 persons or families; and 


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1 ‘‘(ii) sets interest rates on such loans 

2 that— 

3 ‘‘(I) are lower than the bank 

4 prime loan rate, as determined under 

5 the Federal Reserve Statistical Re6 lease of selected interest rates (com7 monly referred to as the H.15) by the 

8 Board of Governors of the Federal 

9 Reserve System, for the last day of 

10 the most recent weekly release of such 

11 rates; or 

12 ‘‘(II) are, after adjusting for in13 flation, no-interest loans or loans with 

14 interest rates significantly below the 

15 interest rates for loans for purchase of 

16 single-family housing generally avail17 able in the market; 

18 ‘‘(C) except as described under subpara19 graph (B), does not engage in the business of 

20 a loan originator or mortgage broker; 

21 ‘‘(D) conducts its activities in a manner 

22 that serves public or charitable purposes; 

23 ‘‘(E) receives funding and revenue and 

24 charges fees in a manner that does not 

25 incentivize the organization or its employees to 


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1 act other than in the best interests of its cli2 ents; 

3 ‘‘(F) compensates employees in a manner 

4 that does not incentivize employees to act other 

5 than in the best interests of its clients; and 

6 ‘‘(G) meets such other requirements as the 

7 Bureau determines appropriate.’’. 

8 (2) in section 129C(a) (15 U.S.C. 1639c(a)), by 

9 adding at the end the following: 

10 ‘‘(10) EXEMPTION FOR NON-PROFIT LOW-IN11 COME HOUSING PROVIDERS.—This subsection shall 

12 not apply to a residential mortgage loan made by a 

13 non-profit low-income housing provider (as such 

14 term is defined under section 128(f)(4)).’’; 

15 (3) in section 129E (15 U.S.C. 1638e), by add16 ing at the end the following: 

17 ‘‘(l) EXEMPTION FOR NON-PROFIT LOW-INCOME

18 HOUSING PROVIDERS.—This section shall not apply to a 

19 residential mortgage loan made by a non-profit low-income 

20 housing provider (as such term is defined under section 

21 128(f)(4)), or any services provided with respect to such 

22 a mortgage loan.’’; and 

23 (4) in section 129H (15 U.S.C. 1638h), by add24 ing at the end the following: 


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1 ‘‘(g) EXEMPTION FOR NON-PROFIT LOW-INCOME

2 HOUSING PROVIDERS.—This section shall not apply to a 

3 residential mortgage loan made by a non-profit low-income 

4 housing provider (as such term is defined under section 

5 128(f)(4)).’’. 

6 (b) REAL ESTATE SETTLEMENT PROCEDURES ACT

7 OF 1974.—Section 6(k) of the Real Estate Settlement 

8 Procedures Act of 1974 (12 U.S.C. 2605(k)) is amended 

9 by adding at the end the following: 

10 ‘‘(3) EXEMPTION FOR NON-PROFIT LOW-IN11 COME HOUSING PROVIDERS.—This subsection and 

12 subsections (l) and (m) shall not apply to the serv13 icing of a residential mortgage loan made by a non14 profit low-income housing provider (as such term is 

15 defined under section 128(f)(4) of the Truth in 

16 Lending Act).’’. 

Æ 


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