I 

108TH CONGRESS 

2D SESSION H. R. 4719 

To amend the Truth in Lending Act to limit the liability of any assignee 

of a creditor, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2004 

Mr. BAKER (for himself, Mr. ROYCE, and Mr. HENSARLING) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to limit the liability 

of any assignee of a creditor, 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 ‘‘Mortgage Market Pro5 tection Act of 2004’’. 

6 SEC. 2. LIMITATION ON LIABILITY OF THE ASSIGNEE OF A 

7 CREDITOR. 

8 (a) VIOLATIONS APPARENT ON FACE OF DISCLO9 SURE STATEMENTS.—Section 131(a) of Truth in Lending 

10 Act (15 U.S.C. 1641(a)) is amended— 
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1 (1) by striking ‘‘(a) Except as otherwise’’ and 

2 inserting ‘‘(a) CIVIL ACTION AGAINST ASSIGNEES— 

3 ‘‘(1) IN GENERAL.—Except as otherwise pro4 vided’’; 

5 (2) by striking the 2nd sentence; and 

6 (3) by adding at the end the following new 

7 paragraph: 

8 ‘‘(2) VIOLATIONS APPARENT ON FACE OF DOC9 UMENTS.—For the purpose of this section, a viola10 tion is apparent on the face of the disclosure docu11 ment if— 

12 ‘‘(A) the disclosure can be determined to 

13 be incomplete or inaccurate from a comparison 

14 of any disclosure provided pursuant to section 

15 127, 127A, 128, or 129, a uniform disclosure 

16 statement provided pursuant to section 4 of the 

17 Real Estate Settlement Procedures Act of 

18 1974, the promissory note or other instrument 

19 signed by the consumer under which credit was 

20 extended, and any itemization of the amount fi21 nanced; or 

22 ‘‘(B) any disclosure provided pursuant to 

23 section 127, 127A, 128, or 129 does not con24 tain terms required to be used under this 

25 title.’’. 
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1 (b) REPEAL OF RIGHT TO RESCIND ANY CREDIT

2 TRANSACTION AS AGAINST AN ASSIGNEE.—Subsection (c) 

3 of section 131 of the Truth in Lending Act (15 U.S.C. 

4 1641(c)) is amended to read as follows: 

5 ‘‘(c) [Repealed]’’. 

6 (c) LIMITATION ON RIGHTS UPON ASSIGNMENT OF

7 HIGH COST MORTGAGES.—Subsection (d) of section 131 

8 of Truth in Lending Act (15 U.S.C. 1641(d) is amended— 

9 (1) by striking paragraph (1) and inserting the 

10 following new paragraph: 

11 ‘‘(1) IN GENERAL.—Notwithstanding any other 

12 provision of law, any person who purchases or is 

13 otherwise assigned a mortgage referred to in section 

14 103(aa) shall be liable, jointly and severally with the 

15 original creditor and any prior or subsequent as16 signee, for all material violations committed by the 

17 original creditor, to the extent that the violation is 

18 apparent on the face of the disclosure.’’; 

19 (2) by striking paragraph (2) and inserting the 

20 following new paragraph: 

21 ‘‘(2) LIMITATION ON DAMAGES.—Notwith22 standing any other provision of law— 

23 ‘‘(A) a cause of action for a liability de24 scribed in paragraph (1) may be asserted by the 

25 borrower only in an individual action; 
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1 ‘‘(B) in any such action the amount of re2 lief shall not exceed the sum of all of the 

3 amounts that the borrower has paid in connec4 tion with the loan and reasonable attorney’s 

5 fees in such individual action; 

6 ‘‘(C) no such action may be brought after 

7 the end of the 3-year period beginning on the 

8 the date of the violation giving rise to the liabil9 ity; and 

10 ‘‘(D) such cause of action shall constitute 

11 the exclusive remedy of the consumer against 

12 an assignee of a mortgage referred to in section 

13 103(aa).’’; and 

14 (3) by striking paragraph (3) and inserting the 

15 following new paragraph: 

16 ‘‘(3) DENIAL OF RESCISSION RIGHTS AS

17 AGAINST ASSIGNEES OF HIGH COST MORTGAGES.— 

18 Notwithstanding any other provision of this title, no 

19 provision of this title that permits a consumer to 

20 void or rescind a mortgage referred to in section 

21 103(aa) shall apply with respect to any assignee of 

22 such mortgage.’’. 

23 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

24 Subsection (e) of section 131 of the Truth in Lending Act 

25 (15 U.S.C. 1641(e)) is amended to read as follows: 
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1 ‘‘(e) [Repealed]’’. 

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