I 
111TH CONGRESS 
1ST SESSION H. R. 1486 
To amend the Fair Credit Reporting Act with respect to requirements relating 
to information contained in consumer reports, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 12, 2009 
Mr. MEEK of Florida introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Fair Credit Reporting Act with respect to 
requirements relating to information contained in con-
sumer reports, 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. 
This Act may be cited as the ‘‘Mortgage Credit Re-
pair Act of 2009’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) The United States housing bubble effec-
tively burst towards the end of 2005, when default 
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rates on subprime and adjustable rate mortgages in-
creased dramatically. 
(2) Mortgages with negative amelioration or 
any other lending mechanism for which the loan 
payment on principal for any period is less than the 
interest charged over that period for some substan-
tial period of time have high default and foreclosure 
rates. 
(3) Mortgages in which there are incidences of 
fraud or lender misconduct have high foreclosure 
rates, including those in which— 
(A) a mortgage was obtained despite the 
lender fraudulently encouraging or requiring 
the borrower to falsify or omit information 
which was then used to call back the loan and 
leading to foreclosure; 
(B) a mortgage was obtained despite the 
failure by the lender to give the borrower prop-
er documentation, including Good Faith Re-
quirements and Truth in Lending Disclosures; 
(C) a mortgage was obtained despite occa-
sions where the borrower was given incomplete 
forms to sign, with the required information 
added by the lender after the borrower’s signa-
ture was obtained; and 
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(D) a mortgage was obtained despite hav-
ing terms which was substantially or wholly dif-
ferent at closing than what was previously 
agreed to. 
(4) Standard, qualifying front-end debt ratios, 
that is the monthly cost of a mortgage principal, in-
terest, taxes, and insurance (PITI) against the gross 
monthly income of the borrower have historically 
been approximately 28%, increasing for those with 
stellar credit histories. 
(5) However, many foreclosures and mortgage- 
related bankruptcies involve borrowers who were 
given mortgages with flat or adjustable rates that 
caused front-end ratios well over 36% in many 
cases. 
(6) The effects of foreclosure or a resulting 
bankruptcy can have a negative impact on an indi-
vidual’s credit history for up to 7 years (10 years for 
bankruptcy) for purchases under $150,000 with re-
lated effects, and effects for purchases over 
$150,000 lasting much longer. 
(7) Borrowers who unknowingly obtained bad, 
improper or fraudulent mortgages which subse-
quently led to foreclosure, should be given the oppor-
tunity to rebuild their credit in a responsible way 
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without the substantial and lingering effects of fore-
closure outweighing present and past responsible 
borrowing practices. 
SEC. 3. AMENDMENT TO DEFINITIONS. 
Section 603 of the Fair Credit Reporting Act (U.S.C. 
1681a) is amended by adding at the end the following new 
subsection: 
‘‘(y) FRONT END RATIO.—The term ‘front end ratio’ 
means a ratio that indicates what portion of an individ-
ual’s income is used to make mortgage payments, cal-
culated by dividing an individual’s gross monthly income 
by their housing expenses, particularly the mortgage prin-
cipal, interest, taxes, and insurance (PITI).’’. 
SEC. 4. SPECIAL CIRCUMSTANCE RELIEF. 
Section 605(a) of the Fair Credit Reporting Act 
(U.S.C. 1681c(a)) is amended— 
(1) by redesignating paragraphs (2), (3), (4), 
(5), and (6) as paragraphs (3), (4), (5), (7), and 
(8), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) Cases under title 11 or under the Bank-
ruptcy Act that, from the date of entry of the order 
for relief or the date of the adjudication, as the case 
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may be, antedate the report by more than 3 years 
when each of the following are met: 
‘‘(A) During a period not less than 6 
months prior to and continuing through the 
time that the bankruptcy is filed, a consumer’s 
front-end debt ratio on a mortgage instrument 
originated or refinanced on or after January 1, 
2003, was 37% or higher. 
‘‘(B) The consumer filed for bankruptcy no 
earlier than January 1, 2004. 
‘‘(C) The consumer has not disputed the 
accuracy of their report under paragraph (6) 
during the period beginning January 1, 2004. 
‘‘(D) The consumer notifies the consumer 
reporting agency directly and is able to submit 
documentation to verify the above before March 
31, 2009.’’; and 
(3) by inserting after paragraph (5) the fol-
lowing new paragraph: 
‘‘(6) Any adverse information excluding bank-
ruptcy, but including closed accounts, accounts in 
collections, accounts charged to profit or loss, repos-
sessions, and foreclosures, shall be excluded if all of 
the following circumstances have occurred: 
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‘‘(A) The adverse information in the con-
sumer’s report was for new accounts and trans-
actions added after the first payment due date 
on the consumer’s mortgage note, where the 
front end ratio then became 37% or higher, but 
not earlier than January 1, 2004. 
‘‘(B) The adverse information in the con-
sumer’s report was not added more than 6 
months after a foreclosure on that consumer’s 
primary residence or March 31, 2009, which-
ever is earlier. 
‘‘(C) The consumer notifies the consumer 
reporting agency directly of their intent to seek 
relief under this paragraph and is able to pro-
vide proper documentation and verification be-
fore March 31, 2009.’’. 
SEC. 5. CONFORMING AMENDMENT. 
Subsection (b) of section 605 of the Fair Credit Re-
porting Act (U.S.C. 1681c(b)) is amended (in the matter 
preceding paragraph (1)) by striking ‘‘paragraphs (1) 
through (5)’’ and inserting ‘‘paragraphs (1), (3), (4), (5), 
and (7)’’. 
Æ 
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