I 

113TH CONGRESS 

1ST SESSION H. R. 1077 

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 HOUSE OF REPRESENTATIVES 

MARCH 12, 2013 

Mr. HUIZENGA of Michigan (for himself, Mr. ROYCE, Mr. DAVID SCOTT of 

Georgia, Mr. MEEKS, Mr. CLAY, Mr. STIVERS, Mr. PETERS of Michigan, 

and Mr. BACHUS) introduced the following bill; which was referred to the 

Committee on Financial Services 

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. 

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 ‘‘Consumer Mortgage 

5 Choice Act’’. 

6 SEC. 2. DEFINITION OF POINTS AND FEES. 

7 (a) AMENDMENT TO SECTION 103 OF TILA.—Sec8 tion 103(bb)(4) of the Truth in Lending Act (15 U.S.C. 

9 1602(bb)(4)) is amended— 


tkelley on DSK3SPTVN1PROD with BILLS
2 

•HR 1077 IH

1 (1) by striking ‘‘paragraph (1)(B)’’ and insert2 ing ‘‘paragraph (1)(A) and section 129C’’; 

3 (2) in subparagraph (A), by striking ‘‘except in4 terest or the time-price differential’’ and inserting 

5 the following: 

6 ‘‘except— 

7 ‘‘(i) interest and the time-price dif8 ferential; and 

9 ‘‘(ii) the amount of any loan level 

10 price adjustment payment set by the Fed11 eral National Mortgage Association, the 

12 Federal Home Loan Mortgage Corpora13 tion, the Federal Housing Administration, 

14 or similar governmental entity or govern15 ment-sponsored enterprise’’; 

16 (3) by striking subparagraph (B) and inserting 

17 the following new subparagraph: 

18 ‘‘(B) all compensation paid directly by a 

19 consumer to a mortgage originator, including a 

20 mortgage originator that is also the creditor in 

21 a table-funded transaction, but not including 

22 compensation paid by a mortgage originator or 

23 a creditor to an individual employed by the 

24 mortgage originator or creditor’’; 

25 (4) in subparagraph (C)— 


tkelley on DSK3SPTVN1PROD with BILLS
3 

•HR 1077 IH

1 (A) by inserting ‘‘and insurance’’ after 

2 ‘‘taxes’’; 

3 (B) in clause (ii), by inserting ‘‘, except as 

4 retained by a creditor or its affiliate as a result 

5 of their participation in an affiliated business 

6 arrangement (as defined in section 2(7) of the 

7 Real Estate Settlement Procedures Act of 1974 

8 (12 U.S.C. 2602(7))’’ after ‘‘compensation’’; 

9 and 

10 (C) by striking clause (iii) and inserting 

11 the following: 

12 ‘‘(iii) the charge is— 

13 ‘‘(I) a bona fide third-party 

14 charge not retained by the mortgage 

15 originator, creditor, or an affiliate of 

16 the creditor or mortgage originator; or 

17 ‘‘(II) a charge set forth in section 

18 106(e)(1);’’; and 

19 (5) in subparagraph (D)— 

20 (A) by striking ‘‘accident,’’; and 

21 (B) by striking ‘‘or any payments’’ and in22 serting ‘‘and any payments’’. 

23 (b) AMENDMENT TO SECTION 129C OF TILA.—Sec24 tion 129C of the Truth in Lending Act (15 U.S.C. 1639c) 

25 is amended— 


tkelley on DSK3SPTVN1PROD with BILLS
4 

•HR 1077 IH

1 (1) in subsection (a)(5)(C), by striking ‘‘103’’ 

2 and all that follows through ‘‘or mortgage origi3 nator’’ and inserting ‘‘103(bb)(4)’’; and 

4 (2) in subsection (b)(2)(C)(i), by striking ‘‘103’’ 

5 and all that follows through ‘‘or mortgage origi6 nator)’’ and inserting ‘‘103(bb)(4)’’. 

Æ 


tkelley on DSK3SPTVN1PROD with BILLS