‘‘(B) change the terms of the loan in a 
manner beneficial so that the loan will no 
longer be a high-cost mortgage.’’. 
SEC. 6. AMENDMENT RELATING TO RIGHT OF RESCISSION. 
Section 130(e) of the Truth in Lending Act (15 
U.S.C. 1640(e)) is amended by inserting after the second 
sentence the following new sentence: ‘‘This subsection also 
shall not bar a person from asserting a right to rescission 
under section 125, in an action to collect the debt or as 
a defense to a judicial or nonjudicial foreclosure after the 
expiration of the time periods for affirmative actions set 
forth in this section and section 125.’’. 
SEC. 7. PROTECTIONS FOR ALL HOME LOANS. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
after section 129 the following new section: 
‘‘§ 129A. Protections for all home loans 
‘‘(a) FLIPPING.—
‘‘(1) IN GENERAL.—No creditor may knowingly 
or intentionally engage in the unfair act or practice 
of flipping. 
‘‘(2) FLIPPING DEFINED.—For purposes of this 
subsection, the term ‘flipping’ means the making of 
a loan or extension of credit to a consumer which re-
finances an existing mortgage when the new loan or
extension of credit does not have reasonable, tan-
gible net benefit to the consumer considering all of 
the circumstances, including the terms of both the 
new and the refinanced loans or credit, the cost of 
the new loan or credit, and the consumer’s cir-
cumstances. 
‘‘(3) TANGIBLE
NET
BENEFIT.—The Board 
may prescribe regulations, in the discretion of the 
Board, defining the term ‘tangible net benefit’ for 
purposes of this subsection. 
‘‘(b) SINGLE PREMIUM CREDIT INSURANCE PROHIB-
ITED.—No creditor may finance, directly or indirectly, in 
connection with any consumer credit transaction that is 
secured by the consumer’s principal dwelling, any credit 
life, credit disability, credit unemployment or credit prop-
erty insurance, or any other accident, loss-of-income, life 
or health insurance, or any payments directly or indirectly 
for any debt cancellation or suspension agreement or con-
tract, except that insurance premiums or debt cancellation 
or suspension fees calculated and paid in full on a monthly 
basis shall not be considered financed by the creditor. 
‘‘(c) ARBITRATION.—
‘‘(1) IN GENERAL.—A consumer credit trans-
action that is secured by the consumer’s principal 
dwelling may not include terms which require arbi-
tration or any other nonjudicial procedure as the 
method for resolving any controversy or settling any 
claims arising out of the transaction. 
‘‘(2) POST-CONTROVERSY AGREEMENTS.—Sub-
ject to paragraph (3), paragraph (1) shall not be 
construed as limiting the right of the consumer and 
the creditor to agree to arbitration or any other non-
judicial procedure as the method for resolving any 
controversy at any time after a dispute or claim 
under the transaction arises. 
‘‘(3) NO WAIVER OF STATUTORY CAUSE OF AC-
TION.—No provision of any consumer credit trans-
action that is secured by the consumer’s principal 
dwelling and no other agreement between the con-
sumer and the creditor shall be applied or inter-
preted so as to bar a consumer from bringing an ac-
tion in an appropriate district court of the United 
States, or any other court of competent jurisdiction, 
pursuant to section 130 or any other provision of 
law, for damages or other relief in connection with 
any alleged violation of this section, any other provi-
sion of this title, or any other Federal law.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended
by inserting after the item relating to section 129 the fol-
lowing new item:
‘‘129A. Protections for all home loans.’’.
SEC. 8. AMENDMENTS TO CIVIL LIABILITY PROVISIONS. 
(a) INCREASE IN AMOUNT OF CIVIL MONEY PEN-
ALTIES FOR CERTAIN VIOLATIONS.—Section 130(a) of 
the Truth in Lending Act (15 U.S.C. 1640(a)) is amend-
ed, in the matter preceding paragraph (1), by striking ‘‘an 
amount equal to the sum’’ and inserting ‘‘an amount equal 
to twice the sum’’. 
(b) STATUTE OF LIMITATIONS EXTENDED FOR SEC-
TION 129 OR 129A VIOLATIONS.—Section 130(e) of the 
Truth in Lending Act (15 U.S.C. 1640(e)) (as amended 
by section 6 of this Act) is amended—
(1) in the first sentence, by striking ‘‘Any ac-
tion’’ and inserting ‘‘Except as provided in the sub-
sequent sentence, any action’’; 
(2) by inserting after the first sentence the fol-
lowing new sentence: ‘‘Any action under this section 
with respect to any violation of section 129 or 129A 
may be brought in any United States district court, 
or in any other court of competent jurisdiction, be-
fore the end of the 3-year period beginning on the 
date of the occurrence of the violation.’’; and