II 

110TH CONGRESS 

2D SESSION S. 3581 

To establish a Federal Mortgage Origination Commission, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 25 (legislative day, SEPTEMBER 17), 2008 

Mr. BOND introduced the following bill; which was read twice and referred to 

the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To establish a Federal Mortgage Origination Commission, 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Mortgage Origination Commission Act of 2008’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

TITLE I—ESTABLISHMENT OF THE MORTGAGE ORIGINATION 

COMMISSION 


wwoods2 on PRODPC68 with BILLS
2 

•S 3581 IS

Sec. 101. Establishment of the Mortgage Origination Commission. 

Sec. 102. Director of the Commission. 

Sec. 103. Deputy Director of the Commission. 

Sec. 104. Personnel, services, and facilities. 

Sec. 105. Funding for Commission operations. 

TITLE II—EVALUATION OF STATE MORTGAGE SUPERVISION AND 

ENFORCEMENT 

Sec. 201. Evaluation criteria. 

Sec. 202. Periodic assessment of State programs. 

Sec. 203. Commission information. 

TITLE III—SUPERVISION OF MORTGAGE COMPANIES AND 

MORTGAGE ORIGINATORS 

Sec. 301. Clarification of Truth in Lending Act enforcement responsibilities. 

Sec. 302. Board of Governors examination authority. 

Sec. 303. Office of Thrift Supervision examination authority. 

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to enhance protection and fair treatment of 

4 consumers in the mortgage origination process by 

5 establishing uniform State minimum licensing and 

6 qualification standards for mortgage originators; 

7 (2) to establish a method to evaluate the ade8 quacy and effectiveness of State licensing, super9 vision, and enforcement programs for regulating 

10 mortgage originators other than federally regulated 

11 depository institutions and their subsidiaries and 

12 employees; 

13 (3) to provide disclosure and transparency to 

14 consumers, investors, and regulators on the ade15 quacy of such State programs; and 

16 (4) to clarify oversight responsibilities and en17 forcement authority under Federal laws governing 


wwoods2 on PRODPC68 with BILLS
3 

•S 3581 IS

1 mortgage origination and lending activities con2 ducted outside of federally regulated depository in3 stitutions and their subsidiaries. 

4 SEC. 3. DEFINITIONS. 

5 For purposes of this Act, the following definitions 

6 shall apply: 

7 (1) COMMISSION.—The term ‘‘Commission’’ 

8 means the Mortgage Origination Commission estab9 lished under this Act. 

10 (2) COMPANY.—The term ‘‘company’’ means 

11 any corporation, limited liability corporation, part12 nership, limited partnership, business trust, business 

13 association, sole proprietorship, or similar organiza14 tion. 

15 (3) DEPOSITORY INSTITUTION.—The term ‘‘de16 pository institution’’ has the same meaning as in 

17 section 3 of the Federal Deposit Insurance Act (12 

18 U.S.C. 1813) and includes any credit union. 

19 (4) MORTGAGE COMPANY.—— 

20 (A) IN GENERAL.—The term ‘‘mortgage 

21 company’’ means a company that, through 

22 mortgage loan originators, engages in the busi23 ness of— 

24 (i) extending residential mortgage 

25 loans to others; or 


wwoods2 on PRODPC68 with BILLS
4 

•S 3581 IS

1 (ii) underwriting or preparing residen2 tial mortgage loan applications on behalf of 

3 or for submission to others. 

4 (B) DEPOSITORY INSTITUTIONS AND SUB5 SIDIARIES EXCLUDED.—The term ‘‘mortgage 

6 company’’ does not include a depository institu7 tion or subsidiary of a depository institution. 

8 (5) MORTGAGE LOAN ORIGINATOR.— 

9 (A) IN GENERAL.—The term ‘‘mortgage 

10 loan originator’’— 

11 (i) means an individual who— 

12 (I) accepts from or prepares for 

13 a consumer a residential mortgage 

14 loan application; 

15 (II) assists a consumer in obtain16 ing or applying to obtain a residential 

17 mortgage loan; or 

18 (III) offers or negotiates terms of 

19 a residential mortgage loan, for direct 

20 or indirect compensation or gain, or in 

21 the expectation of direct or indirect 

22 compensation or gain; 

23 (ii) includes any individual who rep24 resents to the public, through advertising 

25 or other means of communicating or proVerDate Aug 31 2005 00:35 Sep 28, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3581.IS S3581

wwoods2 on PRODPC68 with BILLS
5 

•S 3581 IS

1 viding information (including the use of 

2 business cards, stationery, brochures, 

3 signs, rate lists, or other promotional 

4 items), that such individual can or will pro5 vide or perform any of the activities de6 scribed in clause (i); 

7 (iii) does not include any individual 

8 who is not otherwise described in clause (i) 

9 or (ii) and who performs purely adminis10 trative or clerical tasks on behalf of a per11 son who is described in any such clause; 

12 and 

13 (iv) does not include a person or enti14 ty that only performs real estate brokerage 

15 activities and is licensed or registered as a 

16 real estate broker in accordance with appli17 cable State law, unless the person or entity 

18 is compensated by a lender, a mortgage 

19 broker, or other mortgage loan originator 

20 or by any agent of such lender, mortgage 

21 broker, or other mortgage loan originator. 

22 (B) OTHER DEFINITIONS RELATING TO

23 MORTGAGE LOAN ORIGINATOR.—For purposes 

24 of this paragraph, an individual ‘‘assists a con25 sumer in obtaining or applying to obtain a resiVerDate Aug 31 2005 00:35 Sep 28, 2008 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3581.IS S3581

wwoods2 on PRODPC68 with BILLS
6 

•S 3581 IS

1 dential mortgage loan’’ by, among other things, 

2 advising on loan terms (including rates, fees, 

3 and other costs), preparing loan documents or 

4 packages, or collecting information on behalf of 

5 the consumer with regard to a residential mort6 gage loan. 

7 (C) ADMINISTRATIVE OR CLERICAL

8 TASKS.—For purposes of this paragraph, the 

9 term ‘‘administrative or clerical tasks’’ means 

10 the receipt, collection, or distribution of infor11 mation common for the processing or under12 writing of a loan in the mortgage industry and 

13 communication with a consumer to obtain infor14 mation necessary for the processing or under15 writing of a residential mortgage loan. 

16 (D) REAL ESTATE BROKERAGE ACTIVITY

17 DEFINED.—For purposes of this paragraph, the 

18 term ‘‘real estate brokerage activity’’ means any 

19 activity that involves offering or providing real 

20 estate brokerage services to the public, includ21 ing— 

22 (i) acting as a real estate agent or 

23 real estate broker for a buyer, seller, les24 sor, or lessee of real property; 


wwoods2 on PRODPC68 with BILLS
7 

•S 3581 IS

1 (ii) listing or advertising real property 

2 for sale, purchase, lease, rental, or ex3 change; 

4 (iii) providing advice in connection 

5 with sale, purchase, lease, rental, or ex6 change of real property; 

7 (iv) bringing together parties inter8 ested in the sale, purchase, lease, rental, or 

9 exchange of real property; 

10 (v) negotiating, on behalf of any 

11 party, any portion of a contract relating to 

12 the sale, purchase, lease, rental, or ex13 change of real property (other than in con14 nection with providing financing with re15 spect to any such transaction); 

16 (vi) engaging in any activity for which 

17 a person engaged in the activity is required 

18 to be registered or licensed as a real estate 

19 agent or real estate broker under any ap20 plicable law; and 

21 (vii) offering to engage in any activity, 

22 or act in any capacity, described in clause 

23 (i), (ii), (iii), (iv), (v), or (vi). 


wwoods2 on PRODPC68 with BILLS
8 

•S 3581 IS

1 (6) NATIONWIDE MORTGAGE LICENSING SYS2 TEM AND REGISTRY.—The term ‘‘Nationwide Mort3 gage Licensing System and Registry’’ means— 

4 (A) a mortgage licensing system developed 

5 and maintained by the Conference of State 

6 Banking Supervisors and the American Associa7 tion of Residential Mortgage Regulators for the 

8 registration of, or State licensing and registra9 tion of, mortgage loan originators; or 

10 (B) the alternate mortgage licensing sys11 tem and registry established by the Secretary of 

12 Housing and Urban Development pursuant to 

13 section 1508 of the Housing and Economic Re14 covery Act of 2008 (12 U.S.C. 5107). 

15 (7) RESIDENTIAL MORTGAGE LOAN.—The term 

16 ‘‘residential mortgage loan’’ means any transaction 

17 in which a mortgage, deed of trust, or other consen18 sual security interest is created or retained against 

19 a one-to-four family home, individual unit of a con20 dominium or cooperative, or a mobile home to secure 

21 credit extended to an individual or individuals pri22 marily for personal, family, or household purposes. 

23 (8) STATE.—The term ‘‘State’’ means any 

24 State of the United States, the District of Columbia, 

25 Puerto Rico, and the Virgin Islands. 


wwoods2 on PRODPC68 with BILLS
9 

•S 3581 IS

1 TITLE I—ESTABLISHMENT OF 

2 THE MORTGAGE ORIGINA3 TION COMMISSION 

4 SEC. 101. ESTABLISHMENT OF THE MORTGAGE ORIGINA5 TION COMMISSION. 

6 (a) ESTABLISHMENT; COMPOSITION.—There is es7 tablished the Mortgage Origination Commission which 

8 shall consist of the following: 

9 (1) The Comptroller of the Currency, or des10 ignee. 

11 (2) The Chairman of the Board of Directors of 

12 the Federal Deposit Insurance Corporation, or des13 ignee. 

14 (3) A Governor of the Board of Governors of 

15 the Federal Reserve System designated by the 

16 Chairman of the Board. 

17 (4) The Director, Office of Thrift Supervision, 

18 or designee. 

19 (5) The Chairman of the National Credit Union 

20 Administration Board, or designee. 

21 (6) The Chairman of the State Liaison Com22 mittee of the Federal Financial Institutions Exam23 ination Council elected pursuant to section 1007 of 

24 the Federal Financial Institutions Examination 

25 Council Act of 1978 (12 U.S.C. 3306). 


wwoods2 on PRODPC68 with BILLS
10 

•S 3581 IS

1 (7) The Director of the Commission. 

2 (b) CHAIRMAN.—The Director of the Commission 

3 shall serve as its Chairman. 

4 (c) MEETINGS; QUORUM; VOTING.— 

5 (1) IN GENERAL.—The Commission shall meet 

6 at least semiannually and at the call of the Director 

7 of the Commission or a majority of its members 

8 when there is business to be conducted. 

9 (2) QUORUM.—A majority of the members of 

10 the Commission shall constitute a quorum. 

11 (3) DECISIONS.—Decisions of the Commission 

12 shall be made by the vote of a majority of its mem13 bers. 

14 (d) ADMINISTRATION OF THE ACT.— 

15 (1) IN GENERAL.—The Commission shall have 

16 the authority to administer and interpret this Act, 

17 and to prescribe regulations to carry out this Act. 

18 (2) RULEMAKING.—Rulemaking of the Commis19 sion shall be subject to section 553 of the Adminis20 trative Procedure Act (5 U.S.C. 553). 

21 SEC. 102. DIRECTOR OF THE COMMISSION. 

22 (a) APPOINTMENT.—The Director of the Commission 

23 shall be appointed by the President, by and with the advice 

24 and consent of the Senate, from among individuals who 

25 are citizens of the United States, have recognized and exVerDate Aug 31 2005 00:35 Sep 28, 2008 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3581.IS S3581

wwoods2 on PRODPC68 with BILLS
11 

•S 3581 IS

1 tensive experience in mortgage regulation or mortgage 

2 markets, and have demonstrated expertise in the legal and 

3 regulatory requirements and private sector standards gov4 erning the United States primary and secondary mortgage 

5 markets. The Director shall not hold any other appointed 

6 office during his or her term as Director. 

7 (b) TERM.—The Director shall be appointed for a 

8 term of 5 years. 

9 (c) VACANCY.—A vacancy in the position of the Di10 rector shall be filled in the manner in which the original 

11 appointment was made under subsection (a) of this sec12 tion. 

13 (d) SERVICE AFTER END OF TERM.—The Director 

14 may serve after the expiration of the term for which the 

15 Director was appointed until a successor Director has 

16 been appointed. 

17 (e) AUTHORITY.—The Director is authorized to carry 

18 out, and to delegate to officers, employees, and agents the 

19 authority to carry out, the internal administration of the 

20 Commission, including entering into contracts, appointing 

21 and supervising employees, and distributing business 

22 among members, employees, and administrative units. 

23 SEC. 103. DEPUTY DIRECTOR OF THE COMMISSION. 

24 (a) APPOINTMENT.—The Commission shall have a 

25 Deputy Director who shall be appointed by the Director 


wwoods2 on PRODPC68 with BILLS
12 

•S 3581 IS

1 of the Commission from among individuals who are citi2 zens of the United States, have recognized and extensive 

3 experience in mortgage regulation or mortgage markets, 

4 and have demonstrated expertise in the legal and regu5 latory requirements and private sector standards gov6 erning the United States primary and secondary mortgage 

7 markets. 

8 (b) FUNCTIONS.—The Deputy Director shall have 

9 such functions, powers, and duties as the Director shall 

10 prescribe. In the event of the death, resignation, sickness, 

11 or absence of the Director, the Deputy Director shall serve 

12 as acting Director until the return of the Director or the 

13 appointment of a successor pursuant to section 102. 

14 SEC. 104. PERSONNEL, SERVICES, AND FACILITIES. 

15 (a) USE OF REGULATORY AGENCY PERSONNEL AND

16 FACILITIES.—In carrying out its functions under this Act 

17 the Commission may, to the extent practicable, utilize the 

18 personnel, services, and facilities of the Office of the 

19 Comptroller of the Currency, the Federal Deposit Insur20 ance Corporation, the Board of Governors of the Federal 

21 Reserve System, the Office of Thrift Supervision, and the 

22 National Credit Union Administration, with their consent, 

23 with or without reimbursement. 


wwoods2 on PRODPC68 with BILLS
13 

•S 3581 IS

1 (b) COMPENSATION, AUTHORITY, AND DUTIES OF

2 OFFICERS AND EMPLOYEES; EXPERTS AND CONSULT3 ANTS.—In addition, the Commission may— 

4 (1) subject to the provisions of title 5, United 

5 States Code, relating to the competitive service, clas6 sification, and General Schedule pay rates, appoint 

7 and fix the compensation of such officers and em8 ployees as are necessary to carry the provisions of 

9 this Act, and to prescribe the authority and duties 

10 of such officers and employees; and 

11 (2) obtain the services of experts and consult12 ants as are necessary to carry out the provisions of 

13 this Act. 

14 SEC. 105. FUNDING FOR COMMISSION OPERATIONS. 

15 (a) ANNUAL FEE.—The Commission is authorized to 

16 assess a $25 annual fee from each mortgage loan origi17 nator during the period such individual is licensed by a 

18 State as a condition to performing the functions of a mort19 gage loan originator. 

20 (b) ADJUSTING THE ANNUAL FEE.—The Commis21 sion may adjust the fee assessed pursuant subsection (a) 

22 from time to time, as necessary to carry out its functions 

23 under this Act, up to a maximum of $80 per annum. 

24 (c) INFLATION ADJUSTMENTS.—Ten years after the 

25 effective date of this Act, and at the end of every 10-year 


wwoods2 on PRODPC68 with BILLS
14 

•S 3581 IS

1 period thereafter, the annual fee the Commission is au2 thorized to assess under subsection (a), and the maximum 

3 fee authorized under subsection (b), shall be adjusted by 

4 a percentage equal to the percentage by which the Con5 sumer Price Index (or its successor) for the month of June 

6 preceding the effective date (of this Act for the first ad7 justment, or of the most recent adjustment for subsequent 

8 adjustments) differs from the Consumer Price Index (or 

9 its successor) for the month of June in the year of the 

10 adjustment. 

11 (d) NOTICE OF ADJUSTMENTS.—The Commission 

12 shall publish a brief notice describing each adjustment 

13 pursuant to subsection (b) or (c) in the Federal Register 

14 concurrently with the effectiveness of such adjustment. 

15 (e) FEE COLLECTION BY STATES.—Each State that 

16 licenses individuals to performs the functions of mortgage 

17 loan originators shall collect the annual fee authorized 

18 under subsection (a) from each licensee, except licensees 

19 who provide satisfactory evidence that another State col20 lects his or her annual Commission fee, and shall transmit 

21 such fees to the Commission on an annual basis together 

22 with a reasonable accounting thereof. 

23 (f) FEE COLLECTION BY NATIONWIDE MORTGAGE

24 LICENSING SYSTEM AND REGISTRY.—— 


wwoods2 on PRODPC68 with BILLS
15 

•S 3581 IS

1 (1) IN GENERAL.—If the Commission, following 

2 consultation with the Nationwide Mortgage Licens3 ing System and Registry, determines that the facili4 ties of the Nationwide Mortgage Licensing System 

5 and Registry offers a more convenient and efficient 

6 method for collecting the annual fees authorized pur7 suant to subsection (a) than collection by one or 

8 more States pursuant to subsection (e), the Commis9 sion may notify such States in writing that the Com10 mission will collect fees for mortgage loan origina11 tors licensed by that State through the Nationwide 

12 Mortgage Licensing System and Registry, and the 

13 Nationwide Mortgage Licensing System and Reg14 istry shall collect such fees. 

15 (2) TRANSMISSION.—Each State that receives a 

16 notice under paragraph (1) shall promptly transmit 

17 to the Commission any fees it has collected under 

18 subsection (e), and shall not otherwise be obligated 

19 to collect fees on the Commission’s behalf under sub20 section (e) during the effective period of such notice. 

21 (3) EXPENSES.—The Nationwide Mortgage Li22 censing System and Registry shall— 

23 (A) develop reasonable methods to allocate 

24 its existing and projected expenses to develop, 

25 operate, maintain, and upgrade the Nationwide 


wwoods2 on PRODPC68 with BILLS
16 

•S 3581 IS

1 Mortgage Licensing System and Registry be2 tween— 

3 (i) registered mortgage loan origina4 tors that are employees of depository insti5 tutions or subsidiaries of depository insti6 tutions; and 

7 (ii) other mortgage loan originators 

8 registered or licensed through the System; 

9 and 

10 (B) in establishing the amount of fees to 

11 be collected to defray the costs to develop, oper12 ate, maintain, and upgrade the System, the Na13 tionwide Mortgage Licensing System and Reg14 istry shall not charge such mortgage loan origi15 nators described in clause (i) or (ii) of subpara16 graph (A) fees that exceed amounts reasonably 

17 necessary to defray the expenses attributable to 

18 each such group. 

19 (g) STARTUP FUNDING.— 

20 (1) IN GENERAL.—The Secretary of the Treas21 ury shall pay to the Commission a one-time payment 

22 of $10,000,000 within 30 days after the effective 

23 date of this Act. 

24 (2) REPAYMENT.—The Commission shall repay 

25 the Secretary of the Treasury for such $10,000,000, 


wwoods2 on PRODPC68 with BILLS
17 

•S 3581 IS

1 in full, no later than the 10th anniversary of this 

2 Act’s effective date. 

3 (h) COMMISSION EXPENDITURE AUTHORITY.— 

4 (1) IN GENERAL.—The Commission shall have 

5 the power to enter into contracts, and determine its 

6 necessary expenditures under this Act and the man7 ner in which such expenditures shall be incurred, al8 lowed, and paid out of funds available to the Com9 mission under this section. 

10 (2) ACCOUNT.—Funds available to the Commis11 sion under this section shall be deposited in an ac12 count in the Treasury of the United States, but shall 

13 not be construed to be Government funds or appro14 priated monies, or subject to apportionment for the 

15 purposes of chapter 15 of title 31, United States 

16 Code, or any other authority. 

17 TITLE II—EVALUATION OF 

18 STATE MORTGAGE SUPER19 VISION AND ENFORCEMENT 

20 SEC. 201. EVALUATION CRITERIA. 

21 (a) CRITERIA FOR EVALUATION OF STATE OVER22 SIGHT.—The Commission shall develop criteria and a nu23 merical rating system corresponding to descriptive cat24 egories indicative of a State program’s strength or weak25 ness to evaluate the effectiveness of— 


wwoods2 on PRODPC68 with BILLS
18 

•S 3581 IS

1 (1) systems for licensing, supervision, and en2 forcement with respect to mortgage loan originators 

3 and mortgage companies operating in the State, in4 cluding but not limited to— 

5 (A) implementation of licensing require6 ments that take into account conduct and dis7 ciplinary history; establishment of minimum 

8 educational requirements, testing standards, 

9 and continuing education; establishment of ap10 propriate license denial, suspension, or revoca11 tion procedures; 

12 (B) ongoing supervision and periodic ex13 amination of the activities of mortgage loan 

14 originators and mortgage companies to review 

15 their compliance with applicable law, and to ad16 dress any deficiencies therein; and 

17 (C) administrative and judicial enforce18 ment programs to take corrective action against 

19 mortgage loan originators and mortgage compa20 nies and deter future violations of licensing re21 quirements and applicable law; 

22 (2) mechanisms to collect, evaluate and respond 

23 to complaints against State-licensed mortgage loan 

24 originators and mortgage companies; and 


wwoods2 on PRODPC68 with BILLS
19 

•S 3581 IS

1 (3) such other matters as the Commission de2 termines appropriate in light of the purposes of this 

3 Act. 

4 (b) PUBLICATION OF CRITERIA.—The criteria devel5 oped by the Commission pursuant to subsection (a)— 

6 (1) may be formulated through such processes 

7 as the Commission in its discretion determines are 

8 appropriate in light of the purposes of this Act; and 

9 (2) shall be made available to the public in ac10 cordance with section 203 of this Act. 

11 SEC. 202. PERIODIC ASSESSMENT OF STATE PROGRAMS. 

12 (a) EVALUATION AND REPORTING.—The Commis13 sion shall conduct an evaluation of each State’s programs 

14 for licensing, regulation, and enforcement with respect to 

15 mortgage loan originators and mortgage companies under 

16 the criteria developed pursuant to section 201, and pre17 pare a report containing a narrative evaluation of the ade18 quacy of the State’s programs, including a summary nu19 merical rating for each class of criteria and an overall 

20 composite rating. 

21 (b) PUBLICATION OF REPORTS.—The reports pre22 pared by the Commission pursuant to subsection (a) shall 

23 be made available to the public in accordance with section 

24 203 of this Act. 

25 (c) EVALUATION FREQUENCY.— 


wwoods2 on PRODPC68 with BILLS
20 

•S 3581 IS

1 (1) The Commission shall complete its first 

2 evaluation and report for every State no later than 

3 4 years after the effective date of this Act, and 

4 thereafter shall complete an evaluation and report 

5 for each State not less than once every 36 months. 

6 (2) If a State makes significant changes to its 

7 programs after the Commission has issued its re8 port, and the State submits a written certification to 

9 the Commission describing the reasons why the 

10 State believes changes made are material and likely 

11 to persuade the Commission to increase one or more 

12 of the State’s summary numerical ratings, the Com13 mission shall review the submission and determine 

14 whether to re-evaluate the State’s program, in part 

15 or in full, in advance of the State’s next scheduled 

16 evaluation. 

17 (3) If the Commission does not commence a re18 evaluation within 6 months of a State’s submission 

19 under paragraph (2), the Commission shall issue a 

20 written statement briefly describing the basis for its 

21 decision. 

22 (4) Requests for re-evaluation under paragraph 

23 (2) shall be determined by the Commission, without 

24 delegation to the Director of the Commission. 


wwoods2 on PRODPC68 with BILLS
21 

•S 3581 IS

1 SEC. 203. COMMISSION INFORMATION. 

2 (a) COMMISSION TO MAKE INFORMATION PUBLICLY

3 AVAILABLE.—The Commission shall make its evaluation 

4 criteria developed pursuant to section 201(a) and its eval5 uation reports prepared pursuant to section 202(a) pub6 licly available by— 

7 (1) posting such material on the Commission’s 

8 Internet website; and 

9 (2) delivering copies free of charge upon each 

10 request to an email address and toll-free telephone 

11 number maintained by the Commission for such re12 quests. 

13 (b) COMMISSION’S ACCESS TO RECORDS.—The Com14 mission shall assign the lowest possible summary numer15 ical rating to any State program for which the responsible 

16 State agencies and officials do not cooperate in the Com17 mission’s evaluation process under section 202(a) or allow 

18 complete access to information, records, and personnel the 

19 Commission deems relevant to its evaluation. 

20 (c) CONFIDENTIALITY RETAINED.—Submission of 

21 information to the Commission pursuant to subsection (b) 

22 does not waive or alter its treatment as confidential, privi23 leged, or protected information under State or Federal 

24 law, and information submitted or obtained— 


wwoods2 on PRODPC68 with BILLS
22 

•S 3581 IS

1 (1) is not subject to Federal laws requiring the 

2 disclosure of information held by federal officers or 

3 agencies; and 

4 (2) is not subject to discovery through pro5 ceedings against, or subpoenas naming, the Commis6 sion or its officers or employees. 

7 (d) FREEDOM OF INFORMATION ACT.—The Commis8 sion shall be deemed an ‘‘agency responsible for the regu9 lation or supervision of financial institutions’’ for purposes 

10 of section 552(b)(8) of title 5, United States Code, and 

11 Commission records relating to the evaluation of a State 

12 pursuant to section 202 of this Act shall, with the excep13 tion of the public report prepared by the Commission, be 

14 deemed related to ‘‘examination, operating, or condition 

15 reports’’ for purposes of such section. 

16 TITLE III—SUPERVISION OF 

17 MORTGAGE COMPANIES AND 

18 MORTGAGE ORIGINATORS 

19 SEC. 301. CLARIFICATION OF TRUTH IN LENDING ACT EN20 FORCEMENT RESPONSIBILITIES. 

21 Section 108 of the Truth in Lending Act (15 U.S.C. 

22 1607) is amended— 

23 (1) in subsection (b), by striking each reference 

24 to ‘‘subsection (a)’’ and inserting ‘‘subsection (a) or 

25 (f)’’; and 


wwoods2 on PRODPC68 with BILLS
23 

•S 3581 IS

1 (2) by adding at the end the following: 

2 ‘‘(f) HOLDING COMPANY AFFILIATES.—Compliance 

3 with the requirements imposed under this subchapter shall 

4 be enforced under section 8 of the Federal Deposit Insur5 ance Act (12 U.S.C. 1818) in the case of— 

6 ‘‘(1) bank holding companies, and subsidiaries 

7 (other than depository institutions or subsidiaries of 

8 depository institutions) of bank holding companies, 

9 by the Board; and 

10 ‘‘(2) savings and loan holding companies, and 

11 subsidiaries (other than depository institutions or 

12 subsidiaries of depository institutions) of savings 

13 and loan holding companies, by the Director of the 

14 Office of Thrift Supervision. 

15 ‘‘(g) STATE ENFORCEMENT AUTHORITY.—(1) State 

16 agencies are authorized to enforce compliance with the re17 quirements imposed under this subchapter with respect to 

18 extensions of credit secured by a consumer’s dwelling (in19 cluding residential mortgage transactions) against mort20 gage companies and mortgage loan originators regulated 

21 or licensed by each such State agency. 

22 ‘‘(2) No State agency shall have the authority under 

23 paragraph (1) of this subsection to take any action against 

24 any person covered under subsection (a) of this section, 


wwoods2 on PRODPC68 with BILLS
24 

•S 3581 IS

1 or any subsidiary of such person, or any mortgage loan 

2 originators employed by the foregoing. 

3 ‘‘(3) The authority granted to State agencies under 

4 paragraph (1) of this subsection does not affect the au5 thority conferred under subsection (c) or subsection (f) of 

6 this section. 

7 ‘‘(4) For purposes of this subsection, the terms ‘mort8 gage company’ and ‘mortgage loan originator’ have the 

9 meanings given the terms by section 3 of the Mortgage 

10 Origination Commission Act of 2008.’’. 

11 SEC. 302. BOARD OF GOVERNORS EXAMINATION AUTHOR12 ITY. 

13 Section 5 of the Bank Holding Company Act (12 

14 U.S.C. 1844) is amended— 

15 (1) in section 5(c)(2)(C)(ii), by striking ‘‘any 

16 subsidiary’’ and inserting ‘‘except as provided in 

17 subparagraph (F), any subsidiary,’’; and 

18 (2) in section 5(c)(2), by adding at the end the 

19 following: 

20 ‘‘(F) MORTGAGE COMPANY EXAMINA21 TIONS.—(i) The Board may make examinations 

22 of each bank holding company, and each sub23 sidiary of such holding company, that is a mort24 gage company. 


wwoods2 on PRODPC68 with BILLS
25 

•S 3581 IS

1 ‘‘(ii) The Board shall conduct such exami2 nations not less than once every 18 months. 

3 ‘‘(iii) For purposes of this subparagraph, 

4 the term ‘mortgage company’ has the meaning 

5 given the term by section 3 of the Mortgage 

6 Origination Commission Act of 2008.’’. 

7 SEC. 303. OFFICE OF THRIFT SUPERVISION EXAMINATION 

8 AUTHORITY. 

9 Section 10 of the Home Owners Loan Act (12 U.S.C. 

10 1467a) is amended by adding at the end the following: 

11 ‘‘(u) MORTGAGE COMPANY EXAMINATIONS.— 

12 ‘‘(1) The Director may examine each savings 

13 and loan holding company, and each subsidiary of 

14 such savings and loan holding company, that is a 

15 mortgage company. 

16 ‘‘(2) The Director shall conduct such examina17 tions not less than once every 18 months. 

18 ‘‘(3) For purposes of this subsection, the term 

19 ‘mortgage company’ has the meaning given the term 

20 by section 3 of the Mortgage Origination Commis21 sion Act of 2008.’’. 

Æ 


wwoods2 on PRODPC68 with BILLS