I 
115TH CONGRESS 
2D SESSION 
H. R. 5287 
To amend the Truth in Lending Act to clarify the exclusion for seller- 
financers from the definition of mortgage originator, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 14, 2018 
Mr. PEARCE (for himself and Mr. HECK) introduced the following bill; which 
was referred to the Committee on Financial Services 
A BILL 
To amend the Truth in Lending Act to clarify the exclusion 
for seller-financers from the definition of mortgage origi-
nator, 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 ‘‘Preserving Access to 
Rural Installment Transactions for Years Act of 2018’’ 
or the ‘‘PARITY Act of 2018’’. 
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SEC. 2. AMENDMENTS RELATED TO THE EXCLUSION OF 
SELLER-FINANCERS IN THE DEFINITION OF 
MORTGAGE ORIGINATOR. 
Paragraph (2)(E) of the second subsection (cc) of 
section 103 of the Truth in Lending Act (relating to the 
definition of the term ‘‘mortgage originator’’) (15 U.S.C. 
1602(cc)(2)(E)) is amended— 
(1) in the matter preceding clause (i)— 
(A) by striking ‘‘3 properties’’ and insert-
ing ‘‘5 properties’’; 
(B) by striking ‘‘a person, estate, or trust’’ 
and inserting ‘‘a person or entity (including a 
corporation, partnership, proprietorship, asso-
ciation, cooperative, estate, or trust)’’; and 
(C) by striking ‘‘such person, estate, or 
trust’’ and inserting ‘‘such a person or entity’’; 
(2) in clause (i)— 
(A) by inserting ‘‘or’’ after the semicolon; 
(B) by striking ‘‘a person, estate, or trust 
that has constructed’’ and inserting ‘‘such a 
person or entity that— 
‘‘(I) has constructed’’; and 
(C) by inserting at the end the following 
new subclause: 
‘‘(II) has received any other com-
pensation related to such loan, includ-
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ing origination points or fees and ex-
cluding interest payments;’’; 
(3) by striking clauses (ii), (iii), and (iv); and 
(4) by inserting after clause (i) the following 
new clauses: 
‘‘(ii) is not a high-cost mortgage; 
‘‘(iii) does not include terms under 
which the outstanding principal balance 
will increase at any time over the course of 
the loan because the regular periodic pay-
ments do not cover the full amount of in-
terest due; 
‘‘(iv) has— 
‘‘(I) a fixed rate; or 
‘‘(II) an adjustable rate that was 
not determined by a prior contractual 
obligation between the consumer and 
such a person or entity and— 
‘‘(aa) is adjustable after 5 
or more years (as determined by 
the addition of a margin to a 
widely available index rate) sub-
ject to reasonable annual and 
lifetime limitations on interest 
rate increases or is determined 
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by a prior obligation that is in-
cluded in or assumed by the 
terms of the loan; or 
‘‘(bb) with respect to any 
part of such loan contractually 
required to be used to make pay-
ments on an existing mortgage 
loan secured by such a property, 
is adjustable on or after the date 
of a rate adjustment on such ex-
isting mortgage loan; and’’. 
Æ 
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