I 
109TH CONGRESS 
1ST SESSION H. R. 1182
To amend the Truth in Lending Act to impose restrictions and limitations 
on high-cost mortgages, to revise the permissible fees and charges on 
certain loans made, to prohibit unfair or deceptive lending practices, 
and to provide for public education and counseling about predatory 
lenders, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 9, 2005
Mr. MILLER of North Carolina (for himself, Mr. WATT, and Mr. FRANK of 
Massachusetts) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Truth in Lending Act to impose restrictions 
and limitations on high-cost mortgages, to revise the 
permissible fees and charges on certain loans made, to 
prohibit unfair or deceptive lending practices, and to 
provide for public education and counseling about preda-
tory lenders, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Prohibit Predatory Lending Act’’.
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions relating to high-cost mortgages. 
Sec. 3. Amendments to existing requirements for certain mortgages. 
Sec. 4. Additional requirements for certain mortgages. 
Sec. 5. Amendment to provision governing correction of errors. 
Sec. 6. Amendment relating to right of rescission. 
Sec. 7. Protections for all home loans. 
Sec. 8. Amendments to civil liability provisions. 
Sec. 9. Regulations.
SEC. 2. DEFINITIONS RELATING TO HIGH-COST MORT-
GAGES. 
(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 para-
graph (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 consumer credit trans-
action that is secured by the consumer’s prin-
cipal dwelling, other than a reverse mortgage 
transaction, if—
‘‘(i) in the case of a loan secured—
‘‘(I) by a first mortgage on the 
consumer’s principal dwelling, the an-
nual percentage rate at consummation 
of the transaction will exceed by more
than 8 percentage points the yield on 
Treasury securities having comparable 
periods of maturity on the 15th day of 
the month immediately preceding the 
month in which the application for the 
extension of credit is received by the 
creditor; or 
‘‘(II) by a subordinate or junior 
mortgage on the consumer’s principal 
dwelling, the annual percentage rate 
at consummation of the transaction 
will exceed by more than 10 percent-
age points the yield on Treasury secu-
rities having comparable periods of 
maturity on the 15th day of the 
month 
immediately 
preceding 
the 
month in which the application for the 
extension of credit is received by the 
creditor; 
‘‘(ii) the total points and fees payable 
in connection with the loan exceed—
‘‘(I) in the case of a loan for 
$20,000 or more, 5 percent of the 
total loan amount; or
‘‘(II) in the case of a loan for 
less than $20,000, the lesser of 8 per-
cent of the total loan amount or 
$1,000; or 
‘‘(iii) the loan documents permit the 
creditor to charge or collect prepayment 
fees or penalties more than 30 months 
after the loan closing or such fees or pen-
alties exceed, in the aggregate, 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 in-
terest rate: 
‘‘(i) In the case of a fixed-rate loan in 
which the annual percentage rate will not 
vary during the term of the loan, the inter-
est rate in effect on the date of consumma-
tion of the transaction. 
‘‘(ii) In the case of a loan in which 
the rate of interest varies solely in accord-
ance with an index, the interest rate deter-
mined by adding the index rate in effect on 
the date of consummation of the trans-