(1) by striking ‘‘or (ii)’’ and inserting ‘‘(ii)’’;
and
(2) by inserting before the semicolon at the end
the following: ‘‘, or (iii) in the case of an individual
action relating to a credit transaction not under an
open end credit plan that is secured by real property
or a dwelling, not less than $200 or greater than
$2,000’’.
SEC. 7. ASSIGNEE LIABILITY.
(a) VIOLATIONS APPARENT ON THE FACE OF TRANS-
ACTION DOCUMENTS.—Section 131 of the Truth in Lend-
ing Act (15 U.S.C. 1641) is amended by adding at the
end the following new subsection:
‘‘(e) LIABILITY OF ASSIGNEE FOR CONSUMER CRED-
IT TRANSACTIONS SECURED BY REAL PROPERTY.—
‘‘(1) IN GENERAL.—Except as otherwise specifi-
cally provided in this title, any civil action against
a creditor for a violation of this title, and any pro-
ceeding under section 108 against a creditor, with
respect to a consumer credit transaction secured by
real property may be maintained against any as-
signee of such creditor only if—
‘‘(A) the violation for which such action or
proceeding is brought is apparent on the face of
the disclosure statement provided in connection
with such transaction pursuant to this title; and
‘‘(B) the assignment to the assignee was
voluntary.
‘‘(2) VIOLATION APPARENT ON THE FACE OF
THE DISCLOSURE DESCRIBED.—For the purpose of
this section, a violation is apparent on the face of
the disclosure statement if—
‘‘(A) the disclosure can be determined to
be incomplete or inaccurate by a comparison
among the disclosure statement, any itemization
of the amount financed, the note, or any other
disclosure of disbursement; or
‘‘(B) the disclosure statement does not use
the terms or format required to be used by this
title.’’.
(b) SERVICER NOT TREATED AS ASSIGNEE.—Section
131 of the Truth in Lending Act (15 U.S.C. 1641) is fur-
ther amended by adding after subsection (e) (as added by
subsection (a) of this section) the following new sub-
section:
‘‘(f) TREATMENT OF SERVICER.—
‘‘(1) IN GENERAL.—A servicer of a consumer
obligation arising from a consumer credit trans-
action shall not be treated as an assignee of such ob-
ligation for purposes of this section unless the
servicer is or was the owner of the obligation.
‘‘(2) SERVICER NOT TREATED AS OWNER ON
BASIS OF ASSIGNMENT FOR ADMINISTRATIVE CON-
VENIENCE.—A servicer of a consumer obligation
arising from a consumer credit transaction shall not
be treated as the owner of the obligation for pur-
poses of this section on the basis of an assignment
of the obligation from the creditor or another as-
signee to the servicer solely for the administrative
convenience of the servicer in servicing the obliga-
tion. Upon written request by the obligor, the
servicer shall provide the obligor, to the best knowl-
edge of the servicer, with the name, address, and
telephone number of the owner of the obligation or
the master servicer of the obligation.
‘‘(3) SERVICER DEFINED.—For purposes of this
subsection, the term ‘servicer’ has the same meaning
as in section 6(i)(2) of the Real Estate Settlement
Procedures Act of 1974.
‘‘(4) APPLICABILITY.—This subsection shall
apply to all consumer credit transactions in existence
or consummated on or after the date of the enact-
ment of the Truth in Lending Act Amendments of
1995.’’.
SEC. 8. RESCISSION RIGHTS IN FORECLOSURE.
Section 125 of the Truth in Lending Act (15 U.S.C.
1635) is amended by inserting after subsection (h) (as
added by section 5 of this Act) the following new sub-
section:
‘‘(i) RESCISSION RIGHTS IN FORECLOSURE.—
‘‘(1) IN
GENERAL.—Notwithstanding section
139, and subject to the time period provided in sub-
section (f), in addition to any other right of rescis-
sion available under this section for a transaction,
after the initiation of any judicial or nonjudicial
foreclosure process on the primary dwelling of an ob-
ligor securing an extension of credit, the obligor
shall have a right to rescind the transaction equiva-
lent to other rescission rights provided by this sec-
tion, if—
‘‘(A) a mortgage broker fee is not included
in the finance charge in accordance with the
laws and regulations in effect at the time the
consumer credit transaction was consummated;
or
‘‘(B) the form of notice of rescission for
the transaction is not the appropriate form of
written notice published and adopted by the
Board or a comparable written notice, and oth-
erwise complied with all the requirements of
this section regarding notice.
‘‘(2) TOLERANCE FOR DISCLOSURES.—Notwith-
standing section 106(f), and subject to the time pe-
riod provided in subsection (f), for the purposes of
exercising any rescission rights after the initiation of
any judicial or nonjudicial foreclosure process on the
principal dwelling of the obligor securing an exten-
sion of credit, the disclosure of the finance charge
and other disclosures affected by any finance charge
shall be treated as being accurate for purposes of
this section if the amount disclosed as the finance
charge does not vary from the actual finance charge
by more than $35 or is greater than the amount re-
quired to be disclosed under this title.
‘‘(3) RIGHT
OF
RECOUPMENT
UNDER
STATE
LAW.—Nothing in this subsection affects a consum-
er’s right of rescission in recoupment under State
law.
‘‘(4) APPLICABILITY.—This subsection shall
apply to all consumer credit transactions in existence
or consummated on or after the date of the enact-
ment of the Truth in Lending Act Amendments of
1995.’’.
Passed the House of Representatives September 27,
1995.
Attest:
Clerk.