Secretary, including an annual update of the mate-
rials used in the curriculum. 
‘‘(c) REPORT.—Upon the completion of the 2-year 
pilot program, the Assistant Secretary shall submit to the 
Secretary of the Treasury and the Congress a report con-
taining a detailed description of the findings and conclu-
sions of the Assistant Secretary with respect to the pilot 
program.’’. 
SEC. 304. ‘‘PLAIN LANGUAGE’’ DISCLOSURES. 
Section 122 of the Truth in Lending Act (15 U.S.C. 
1632) is amended by adding at the end the following new 
subsection: 
‘‘(d) PLAIN AND SIMPLE LANGUAGE DISCLOSURES 
REQUIRED
FOR ALL DISCLOSURES.—The Board shall 
take such action as may be necessary to ensure that all 
disclosures that are required to be provided under this title 
with respect to any consumer credit transaction, including 
all the disclosures required under section 129, shall be 
simple and easy to understand and in a language under-
stood by the consumer.’’. 
SEC. 305. LIMITATION ON USURIOUS INTEREST RATES AND 
UNFAIR PRACTICES. 
(a) REPEAL OF PREEMPTION OF STATE MORTGAGE 
USURY LAWS.— 
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(1) IN GENERAL.—Sections 501, 511, 512, 525, 
526, 527, 528, and 529 of the Depository Institu-
tions Deregulation and Monetary Control Act of 
1980 are hereby repealed. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) 
INSURED
DEPOSITORY
INSTITU-
TIONS.—Section 27 of the Federal Deposit In-
surance Act (12 U.S.C. 1831d) is amended to 
read as follows: 
‘‘SEC. 27. UNIFORM APPLICABILITY OF STATE LAW. 
‘‘In order to prevent discrimination against State- 
chartered insured depository institutions, including in-
sured savings banks and insured branches of foreign 
banks and notwithstanding any other provision of Federal 
law, the provision of the constitution or the laws of any 
State expressly limiting the rate or amount of interest, 
discount points, finance charges, or other charges which 
may be charged, taken, received, or reserved shall apply 
to all depository institutions that are located in, have any 
branch in, or do business in such State with respect to 
customers of any such institution which reside in or are 
located in such State.’’. 
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(B) INSURED
CREDIT
UNIONS.—Section 
205(g) of the Federal Credit Union Act (12 
U.S.C. 1785(g)) is amended to read as follows: 
‘‘(g) UNIFORM APPLICABILITY OF STATE LAW.—In 
order to prevent discrimination against State-chartered in-
sured credit unions and notwithstanding any other provi-
sion of Federal law, the provision of the constitution or 
the laws of any State expressly limiting the rate or amount 
of interest, discount points, finance charges, or other 
charges which may be charged, taken, received, or re-
served shall apply to all credit unions that are located in, 
have any branch in, or do business in such State with re-
spect to customers of any such credit union which reside 
in or are located in such State.’’. 
(b) PROHIBITION ON LOAN ‘‘FLIPPING’’ AND MAN-
DATORY ARBITRATION.— 
(1) IN GENERAL.—Chapter 2 of the Truth in 
Lending Act (15 U.S.C. 1631 et seq.) is amended by 
inserting after section 129 the following new section: 
‘‘§ 129A. Protections for all loans 
‘‘(a) FLIPPING.— 
‘‘(1) IN GENERAL.—No creditor may knowingly 
or intentionally engage in the unfair act or practice 
of flipping. 
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‘‘(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 loan or other extension of credit 
when the new loan or extension of credit does not 
have reasonable, tangible net benefit to the con-
sumer 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 circumstances. 
‘‘(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) ARBITRATION.— 
‘‘(1) IN GENERAL.—A loan or other extension 
of credit subject to this title may not include terms 
which require arbitration or any other nonjudicial 
procedure as the method for resolving any con-
troversy 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-
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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 loan or other extension 
of credit or any agreement between the consumer 
and the creditor shall be applied or interpreted so as 
to bar a consumer from bringing an action in an ap-
propriate district court of the United States, or any 
other court of competent jurisdiction, pursuant to 
section 130 or any other provision of law, for dam-
ages or other relief in connection with any alleged 
violation of this section, any other provision of this 
title, or any other Federal law.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 2 of the Truth in Lending Act is 
amended by inserting after the item relating to sec-
tion 129 the following new item: 
‘‘129A. Protections for all loans.’’. 
(3) REGULATIONS.—The Board of Governors of 
the Federal Reserve System shall publish regulations 
implementing the amendments made by this section 
in final form before the end of the 6-month period 
beginning on the date of enactment of this Act. 
(c) AMENDMENT TO DEFINITION OF HIGH COST 
MORTGAGES.—Subparagraph (A) of section 103(aa)(1) of 
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