H. R. 4173—779 
‘‘§ 128A. Reset of hybrid adjustable rate mortgages 
‘‘(a) HYBRID ADJUSTABLE RATE MORTGAGES DEFINED.—For pur-
poses of this section, the term ‘hybrid adjustable rate mortgage’ 
means a consumer credit transaction secured by the consumer’s 
principal residence with a fixed interest rate for an introductory 
period that adjusts or resets to a variable interest rate after such 
period. 
‘‘(b) NOTICE OF RESET AND ALTERNATIVES.—During the 1-month 
period that ends 6 months before the date on which the interest 
rate in effect during the introductory period of a hybrid adjustable 
rate mortgage adjusts or resets to a variable interest rate or, 
in the case of such an adjustment or resetting that occurs within 
the first 6 months after consummation of such loan, at consumma-
tion, the creditor or servicer of such loan shall provide a written 
notice, separate and distinct from all other correspondence to the 
consumer, that includes the following: 
‘‘(1) Any index or formula used in making adjustments 
to or resetting the interest rate and a source of information 
about the index or formula. 
‘‘(2) An explanation of how the new interest rate and pay-
ment would be determined, including an explanation of how 
the index was adjusted, such as by the addition of a margin. 
‘‘(3) A good faith estimate, based on accepted industry 
standards, of the creditor or servicer of the amount of the 
monthly payment that will apply after the date of the adjust-
ment or reset, and the assumptions on which this estimate 
is based. 
‘‘(4) A list of alternatives consumers may pursue before 
the date of adjustment or reset, and descriptions of the actions 
consumers must take to pursue these alternatives, including— 
‘‘(A) refinancing; 
‘‘(B) renegotiation of loan terms; 
‘‘(C) payment forbearances; and 
‘‘(D) pre-foreclosure sales. 
‘‘(5) The names, addresses, telephone numbers, and Inter-
net addresses of counseling agencies or programs reasonably 
available to the consumer that have been certified or approved 
and made publicly available by the Secretary of Housing and 
Urban Development or a State housing finance authority (as 
defined in section 1301 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989). 
‘‘(6) The address, telephone number, and Internet address 
for the State housing finance authority (as so defined) for 
the State in which the consumer resides. 
‘‘(c) SAVINGS CLAUSE.—The Board may require the notice in 
paragraph (b) or other notice consistent with this Act for adjustable 
rate mortgage loans that are not hybrid adjustable rate mortgage 
loans.’’. 
(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 128 the following new item: 
‘‘128A. Reset of hybrid adjustable rate mortgages.’’. 
SEC. 1419. REQUIRED DISCLOSURES. 
Section 128(a) of Truth in Lending Act (15 U.S.C. 1638(a)) 
is amended by adding at the end the following new paragraphs:
H. R. 4173—780 
‘‘(16) In the case of a variable rate residential mortgage 
loan for which an escrow or impound account will be established 
for the payment of all applicable taxes, insurance, and assess-
ments— 
‘‘(A) the amount of initial monthly payment due under 
the loan for the payment of principal and interest, and 
the amount of such initial monthly payment including the 
monthly payment deposited in the account for the payment 
of all applicable taxes, insurance, and assessments; and 
‘‘(B) the amount of the fully indexed monthly payment 
due under the loan for the payment of principal and 
interest, and the amount of such fully indexed monthly 
payment including the monthly payment deposited in the 
account for the payment of all applicable taxes, insurance, 
and assessments. 
‘‘(17) In the case of a residential mortgage loan, the aggre-
gate amount of settlement charges for all settlement services 
provided in connection with the loan, the amount of charges 
that are included in the loan and the amount of such charges 
the borrower must pay at closing, the approximate amount 
of the wholesale rate of funds in connection with the loan, 
and the aggregate amount of other fees or required payments 
in connection with the loan. 
‘‘(18) In the case of a residential mortgage loan, the aggre-
gate amount of fees paid to the mortgage originator in connec-
tion with the loan, the amount of such fees paid directly by 
the consumer, and any additional amount received by the origi-
nator from the creditor. 
‘‘(19) In the case of a residential mortgage loan, the total 
amount of interest that the consumer will pay over the life 
of the loan as a percentage of the principal of the loan. Such 
amount shall be computed assuming the consumer makes each 
monthly payment in full and on-time, and does not make any 
over-payments.’’. 
SEC. 1420. DISCLOSURES REQUIRED IN MONTHLY STATEMENTS FOR 
RESIDENTIAL MORTGAGE LOANS. 
Section 128 of the Truth in Lending Act (15 U.S.C. 1638) 
is amended by adding at the end the following new subsection: 
‘‘(f) 
PERIODIC
STATEMENTS
FOR
RESIDENTIAL
MORTGAGE 
LOANS.— 
‘‘(1) IN GENERAL.—The creditor, assignee, or servicer with 
respect to any residential mortgage loan shall transmit to the 
obligor, for each billing cycle, a statement setting forth each 
of the following items, to the extent applicable, in a conspicuous 
and prominent manner: 
‘‘(A) The amount of the principal obligation under the 
mortgage. 
‘‘(B) The current interest rate in effect for the loan. 
‘‘(C) The date on which the interest rate may next 
reset or adjust. 
‘‘(D) The amount of any prepayment fee to be charged, 
if any. 
‘‘(E) A description of any late payment fees. 
‘‘(F) A telephone number and electronic mail address 
that may be used by the obligor to obtain information 
regarding the mortgage.
H. R. 4173—781 
‘‘(G) The names, addresses, telephone numbers, and 
Internet addresses of counseling agencies or programs 
reasonably available to the consumer that have been cer-
tified or approved and made publicly available by the Sec-
retary of Housing and Urban Development or a State 
housing finance authority (as defined in section 1301 of 
the Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989). 
‘‘(H) Such other information as the Board may pre-
scribe in regulations. 
‘‘(2) DEVELOPMENT
AND
USE
OF
STANDARD
FORM.—The 
Board shall develop and prescribe a standard form for the 
disclosure required under this subsection, taking into account 
that the statements required may be transmitted in writing 
or electronically. 
‘‘(3) EXCEPTION.—Paragraph (1) shall not apply to any fixed 
rate residential mortgage loan where the creditor, assignee, 
or servicer provides the obligor with a coupon book that provides 
the obligor with substantially the same information as required 
in paragraph (1).’’. 
SEC. 1421. REPORT BY THE GAO. 
(a) REPORT REQUIRED.—The Comptroller General of the United 
States shall conduct a study to determine the effects the enactment 
of this Act will have on the availability and affordability of credit 
for consumers, small businesses, homebuyers, and mortgage 
lending, including the effect— 
(1) on the mortgage market for mortgages that are not 
within the safe harbor provided in the amendments made by 
this subtitle; 
(2) on the ability of prospective homebuyers to obtain 
financing; 
(3) on the ability of homeowners facing resets or adjust-
ments to refinance—for example, do they have fewer refi-
nancing options due to the unavailability of certain loan prod-
ucts that were available before the enactment of this Act; 
(4) on minorities’ ability to access affordable credit com-
pared with other prospective borrowers; 
(5) on home sales and construction; 
(6) of extending the rescission right, if any, on adjustable 
rate loans and its impact on litigation; 
(7) of State foreclosure laws and, if any, an investor’s 
ability to transfer a property after foreclosure; 
(8) of expanding the existing provisions of the Home Owner-
ship and Equity Protection Act of 1994; 
(9) of prohibiting prepayment penalties on high-cost mort-
gages; and 
(10) of establishing counseling services under the Depart-
ment of Housing and Urban Development and offered through 
the Office of Housing Counseling. 
(b) REPORT.—Before the end of the 1-year period beginning 
on the date of the enactment of this Act, the Comptroller General 
shall submit a report to the Congress containing the findings and 
conclusions of the Comptroller General with respect to the study 
conducted pursuant to subsection (a). 
(c) EXAMINATION RELATED TO CERTAIN CREDIT RISK RETENTION 
PROVISIONS.—The report required by subsection (b) shall also
H. R. 4173—782 
include an analysis by the Comptroller General of the effect on 
the capital reserves and funding of lenders of credit risk retention 
provisions for non-qualified mortgages, including an analysis of 
the exceptions and adjustments authorized in section 129C(b)(3) 
of the Truth in Lending Act and a recommendation on whether 
a uniform standard is needed. 
(d) ANALYSIS
OF CREDIT RISK RETENTION PROVISIONS.—The 
report required by subsection (b) shall also include— 
(1) an analysis by the Comptroller General of whether 
the credit risk retention provisions have significantly reduced 
risks to the larger credit market of the repackaging and selling 
of securitized loans on a secondary market; and 
(2) recommendations to the Congress on adjustments that 
should be made, or additional measures that should be under-
taken. 
SEC. 1422. STATE ATTORNEY GENERAL ENFORCEMENT AUTHORITY. 
Section 130(e) of the Truth in Lending Act (15 U.S.C. 1640(e)) 
is amended by striking ‘‘section 129 may also’’ and inserting ‘‘section 
129, 129B, 129C, 129D, 129E, 129F, 129G, or 129H of this Act 
may also’’. 
Subtitle C—High-Cost Mortgages 
SEC. 1431. DEFINITIONS RELATING TO HIGH-COST MORTGAGES. 
(a) HIGH-COST MORTGAGE DEFINED.—Section 103(aa) of the 
Truth in Lending Act (15 U.S.C. 1602(aa)) is amended by striking 
all that precedes paragraph (2) and inserting the following: 
‘‘(aa) HIGH-COST MORTGAGE.— 
‘‘(1) DEFINITION.— 
‘‘(A) IN GENERAL.—The term ‘high-cost mortgage’, and 
a mortgage referred to in this subsection, means a con-
sumer credit transaction that is secured by the consumer’s 
principal dwelling, other than a reverse mortgage trans-
action, if— 
‘‘(i) in the case of a credit transaction secured— 
‘‘(I) by a first mortgage on the consumer’s prin-
cipal dwelling, the annual percentage rate at con-
summation of the transaction will exceed by more 
than 6.5 percentage points (8.5 percentage points, 
if the dwelling is personal property and the trans-
action is for less than $50,000) the average prime 
offer rate, as defined in section 129C(b)(2)(B), for 
a comparable transaction; or 
‘‘(II) by a subordinate or junior mortgage on 
the consumer’s principal dwelling, the annual 
percentage rate at consummation of the trans-
action will exceed by more than 8.5 percentage 
points the average prime offer rate, as defined 
in section 129C(b)(2)(B), for a comparable trans-
action; 
‘‘(ii) the total points and fees payable in connection 
with the transaction, other than bona fide third party 
charges not retained by the mortgage originator, cred-
itor, or an affiliate of the creditor or mortgage origi-
nator, exceed—
H. R. 4173—783 
‘‘(I) in the case of a transaction for $20,000 
or more, 5 percent of the total transaction amount; 
or 
‘‘(II) in the case of a transaction for less than 
$20,000, the lesser of 8 percent of the total trans-
action amount or $1,000 (or such other dollar 
amount as the Board shall prescribe by regulation); 
or 
‘‘(iii) the credit transaction documents permit the 
creditor to charge or collect prepayment fees or pen-
alties more than 36 months after the transaction 
closing or such fees or penalties exceed, in the aggre-
gate, more than 2 percent of the amount prepaid. 
‘‘(B) INTRODUCTORY RATES TAKEN INTO ACCOUNT.—For 
purposes of subparagraph (A)(i), the annual percentage 
rate of interest shall be determined based on the following 
interest rate: 
‘‘(i) In the case of a fixed-rate transaction in which 
the annual percentage rate will not vary during the 
term of the loan, the interest rate in effect on the 
date of consummation of the transaction. 
‘‘(ii) In the case of a transaction in which the 
rate of interest varies solely in accordance with an 
index, the interest rate determined by adding the index 
rate in effect on the date of consummation of the 
transaction to the maximum margin permitted at any 
time during the loan agreement. 
‘‘(iii) In the case of any other transaction in which 
the rate may vary at any time during the term of 
the loan for any reason, the interest charged on the 
transaction at the maximum rate that may be charged 
during the term of the loan. 
‘‘(C) MORTGAGE INSURANCE.—For the purposes of com-
puting the total points and fees under paragraph (4), the 
total points and fees shall exclude— 
‘‘(i) any premium provided by an agency of the 
Federal Government or an agency of a State; 
‘‘(ii) any amount that is not in excess of the amount 
payable under policies in effect at the time of origina-
tion under section 203(c)(2)(A) of the National Housing 
Act (12 U.S.C. 1709(c)(2)(A)), provided that the pre-
mium, charge, or fee is required to be refundable on 
a pro-rated basis and the refund is automatically issued 
upon notification of the satisfaction of the underlying 
mortgage loan; and 
‘‘(iii) any premium paid by the consumer after 
closing.’’. 
(b) ADJUSTMENT OF PERCENTAGE POINTS.—Section 103(aa)(2) 
of the Truth in Lending Act (15 U.S.C. 1602(aa)(2)) is amended 
by striking subparagraph (B) and inserting the following new 
subparagraph: 
‘‘(B) An increase or decrease under subparagraph (A)— 
‘‘(i) may not result in the number of percentage 
points referred to in paragraph (1)(A)(i)(I) being less 
than 6 percentage points or greater than 10 percentage 
points; and
H. R. 4173—784 
‘‘(ii) may not result in the number of percentage 
points referred to in paragraph (1)(A)(i)(II) being less 
than 8 percentage points or greater than 12 percentage 
points.’’. 
(c) POINTS AND FEES DEFINED.— 
(1) IN GENERAL.—Section 103(aa)(4) of the Truth in Lending 
Act (15 U.S.C. 1602(aa)(4)) is amended— 
(A) by striking subparagraph (B) and inserting the 
following: 
‘‘(B) all compensation paid directly or indirectly by 
a consumer or creditor to a mortgage originator from any 
source, including a mortgage originator that is also the 
creditor in a table-funded transaction;’’; 
(B) by redesignating subparagraph (D) as subpara-
graph (G); and 
(C) by inserting after subparagraph (C) the following 
new subparagraphs: 
‘‘(D) premiums or other charges payable at or before 
closing for any credit life, credit disability, credit unemploy-
ment, or credit property 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 contract, 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; 
‘‘(E) the maximum prepayment fees and penalties 
which may be charged or collected under the terms of 
the credit transaction; 
‘‘(F) all prepayment fees or penalties that are incurred 
by the consumer if the loan refinances a previous loan 
made or currently held by the same creditor or an affiliate 
of the creditor; and’’. 
(2) CALCULATION OF POINTS AND FEES FOR OPEN-END CON-
SUMER CREDIT PLANS.—Section 103(aa) of the Truth in Lending 
Act (15 U.S.C. 1602(aa)) is amended— 
(A) by redesignating paragraph (5) as paragraph (6); 
and 
(B) by inserting after paragraph (4) the following new 
paragraph: 
‘‘(5) CALCULATION OF POINTS AND FEES FOR OPEN-END CON-
SUMER CREDIT PLANS.—In the case of open-end consumer credit 
plans, points and fees shall be calculated, for purposes of this 
section and section 129, by adding the total points and fees 
known at or before closing, including the maximum prepayment 
penalties which may be charged or collected under the terms 
of the credit transaction, plus the minimum additional fees 
the consumer would be required to pay to draw down an amount 
equal to the total credit line.’’. 
(d) BONA FIDE DISCOUNT LOAN DISCOUNT POINTS.—Section 103 
of the Truth in Lending Act (15 U.S.C. 1602) is amended by 
inserting after subsection (cc) (as added by section 1401) the fol-
lowing new subsection: 
‘‘(dd) BONA FIDE DISCOUNT POINTS
AND PREPAYMENT PEN-
ALTIES.—For the purposes of determining the amount of points 
and fees for purposes of subsection (aa), either the amounts
H. R. 4173—785 
described in paragraph (1) or (2) of the following paragraphs, but 
not both, shall be excluded: 
‘‘(1) Up to and including 2 bona fide discount points payable 
by the consumer in connection with the mortgage, but only 
if the interest rate from which the mortgage’s interest rate 
will be discounted does not exceed by more than 1 percentage 
point— 
‘‘(A) the average prime offer rate, as defined in section 
129C; or 
‘‘(B) if secured by a personal property loan, the average 
rate on a loan in connection with which insurance is pro-
vided under title I of the National Housing Act (12 U.S.C. 
1702 et seq.). 
‘‘(2) Unless 2 bona fide discount points have been excluded 
under paragraph (1), up to and including 1 bona fide discount 
point payable by the consumer in connection with the mortgage, 
but only if the interest rate from which the mortgage’s interest 
rate will be discounted does not exceed by more than 2 percent-
age points— 
‘‘(A) the average prime offer rate, as defined in section 
129C; or 
‘‘(B) if secured by a personal property loan, the average 
rate on a loan in connection with which insurance is pro-
vided under title I of the National Housing Act (12 U.S.C. 
1702 et seq.). 
‘‘(3) For purposes of paragraph (1), the term ‘bona fide 
discount points’ means loan discount points which are know-
ingly paid by the consumer for the purpose of reducing, and 
which in fact result in a bona fide reduction of, the interest 
rate or time-price differential applicable to the mortgage. 
‘‘(4) Paragraphs (1) and (2) shall not apply to discount 
points used to purchase an interest rate reduction unless the 
amount of the interest rate reduction purchased is reasonably 
consistent with established industry norms and practices for 
secondary mortgage market transactions.’’. 
SEC. 1432. AMENDMENTS TO EXISTING REQUIREMENTS FOR CERTAIN 
MORTGAGES. 
(a) PREPAYMENT PENALTY PROVISIONS.—Section 129(c)(2) of the 
Truth in Lending Act (15 U.S.C. 1639(c)(2)) is hereby repealed. 
(b) NO BALLOON PAYMENTS.—Section 129(e) of the Truth in 
Lending Act (15 U.S.C. 1639(e)) is amended to read as follows: 
‘‘(e) NO BALLOON PAYMENTS.—No high-cost mortgage may con-
tain a scheduled payment that is more than twice as large as 
the average of earlier scheduled payments. This subsection shall 
not apply when the payment schedule is adjusted to the seasonal 
or irregular income of the consumer.’’. 
SEC. 1433. ADDITIONAL REQUIREMENTS FOR CERTAIN MORTGAGES. 
(a) ADDITIONAL REQUIREMENTS FOR CERTAIN MORTGAGES.—Sec-
tion 129 of the Truth in Lending Act (15 U.S.C. 1639) is amended— 
(1) by redesignating subsections (j), (k), (l) and (m) as 
subsections (n), (o), (p), and (q) respectively; and 
(2) by inserting after subsection (i) the following new sub-
sections: 
‘‘(j) RECOMMENDED DEFAULT.—No creditor shall recommend or 
encourage default on an existing loan or other debt prior to and 
in connection with the closing or planned closing of a high-cost
H. R. 4173—786 
mortgage that refinances all or any portion of such existing loan 
or debt. 
‘‘(k) LATE FEES.— 
‘‘(1) IN GENERAL.—No creditor may impose a late payment 
charge or fee in connection with a high-cost mortgage— 
‘‘(A) in an amount in excess of 4 percent of the amount 
of the payment past due; 
‘‘(B) unless the loan documents specifically authorize 
the charge or fee; 
‘‘(C) before the end of the 15-day period beginning 
on the date the payment is due, or in the case of a loan 
on which interest on each installment is paid in advance, 
before the end of the 30-day period beginning on the date 
the payment is due; or 
‘‘(D) more than once with respect to a single late pay-
ment. 
‘‘(2) COORDINATION WITH SUBSEQUENT LATE FEES.—If a pay-
ment is otherwise a full payment for the applicable period 
and is paid on its due date or within an applicable grace 
period, and the only delinquency or insufficiency of payment 
is attributable to any late fee or delinquency charge assessed 
on any earlier payment, no late fee or delinquency charge 
may be imposed on such payment. 
‘‘(3) FAILURE TO MAKE INSTALLMENT PAYMENT.—If, in the 
case of a loan agreement the terms of which provide that 
any payment shall first be applied to any past due principal 
balance, the consumer fails to make an installment payment 
and the consumer subsequently resumes making installment 
payments but has not paid all past due installments, the cred-
itor may impose a separate late payment charge or fee for 
any principal due (without deduction due to late fees or related 
fees) until the default is cured. 
‘‘(l) ACCELERATION OF DEBT.—No high-cost mortgage may con-
tain a provision which permits the creditor to accelerate the indebt-
edness, except when repayment of the loan has been accelerated 
by default in payment, or pursuant to a due-on-sale provision, 
or pursuant to a material violation of some other provision of 
the loan document unrelated to payment schedule. 
‘‘(m) RESTRICTION ON FINANCING POINTS AND FEES.—No cred-
itor may directly or indirectly finance, in connection with any high- 
cost mortgage, any of the following: 
‘‘(1) Any prepayment fee or penalty payable by the con-
sumer in a refinancing transaction if the creditor or an affiliate 
of the creditor is the noteholder of the note being refinanced. 
‘‘(2) Any points or fees.’’. 
(b) PROHIBITIONS ON EVASIONS.—Section 129 of the Truth in 
Lending Act (15 U.S.C. 1639) is amended by inserting after sub-
section (q) (as so redesignated by subsection (a)(1)) the following 
new subsection: 
‘‘(r) PROHIBITIONS
ON
EVASIONS, STRUCTURING
OF
TRANS-
ACTIONS, AND RECIPROCAL ARRANGEMENTS.—A creditor may not 
take any action in connection with a high-cost mortgage— 
‘‘(1) to structure a loan transaction as an open-end credit 
plan or another form of loan for the purpose and with the 
intent of evading the provisions of this title; or
H. R. 4173—787 
‘‘(2) to divide any loan transaction into separate parts for 
the purpose and with the intent of evading provisions of this 
title.’’. 
(c) MODIFICATION OR DEFERRAL FEES.—Section 129 of the Truth 
in Lending Act (15 U.S.C. 1639) is amended by inserting after 
subsection (r) (as added by subsection (b) of this section) the fol-
lowing new subsection: 
‘‘(s) MODIFICATION AND DEFERRAL FEES PROHIBITED.—A cred-
itor, successor in interest, assignee, or any agent of any of the 
above, may not charge a consumer any fee to modify, renew, extend, 
or amend a high-cost mortgage, or to defer any payment due under 
the terms of such mortgage.’’. 
(d) PAYOFF STATEMENT.—Section 129 of the Truth in Lending 
Act (15 U.S.C. 1639) is amended by inserting after subsection 
(s) (as added by subsection (c) of this section) the following new 
subsection: 
‘‘(t) PAYOFF STATEMENT.— 
‘‘(1) FEES.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), no creditor or servicer may charge a fee for informing 
or transmitting to any person the balance due to pay off 
the outstanding balance on a high-cost mortgage. 
‘‘(B) TRANSACTION
FEE.—When payoff information 
referred to in subparagraph (A) is provided by facsimile 
transmission or by a courier service, a creditor or servicer 
may charge a processing fee to cover the cost of such 
transmission or service in an amount not to exceed an 
amount that is comparable to fees imposed for similar 
services provided in connection with consumer credit trans-
actions that are secured by the consumer’s principal 
dwelling and are not high-cost mortgages. 
‘‘(C) FEE DISCLOSURE.—Prior to charging a transaction 
fee as provided in subparagraph (B), a creditor or servicer 
shall disclose that payoff balances are available for free 
pursuant to subparagraph (A). 
‘‘(D) MULTIPLE REQUESTS.—If a creditor or servicer has 
provided payoff information referred to in subparagraph 
(A) without charge, other than the transaction fee allowed 
by subparagraph (B), on 4 occasions during a calendar 
year, the creditor or servicer may thereafter charge a 
reasonable fee for providing such information during the 
remainder of the calendar year. 
‘‘(2) PROMPT DELIVERY.—Payoff balances shall be provided 
within 5 business days after receiving a request by a consumer 
or a person authorized by the consumer to obtain such informa-
tion.’’. 
(e) PRE-LOAN COUNSELING REQUIRED.—Section 129 of the Truth 
in Lending Act (15 U.S.C. 1639) is amended by inserting after 
subsection t) (as added by subsection (d) of this section) the following 
new subsection: 
‘‘(u) PRE-LOAN COUNSELING.— 
‘‘(1) IN
GENERAL.—A creditor may not extend credit to 
a consumer under a high-cost mortgage without first receiving 
certification from a counselor that is approved by the Secretary 
of Housing and Urban Development, or at the discretion of