1460 
† HR 4173 EAS 
‘‘(I) by 1.5 or more percentage 
points, in the case of a first lien resi-
dential mortgage loan having an origi-
nal principal obligation amount that 
is equal to or less than the amount of 
the maximum limitation on the origi-
nal principal obligation of a mortgage 
in effect for a residence of the applica-
ble size, as of the date on which such 
interest rate is set, pursuant to the 
sixth sentence of section 305(a)(2) of 
the Federal Home Loan Mortgage Cor-
poration Act (12 U.S.C. 1454(a)(2)); 
‘‘(II) by 2.5 or more percentage 
points, in the case of a first lien resi-
dential mortgage loan having an origi-
nal principal obligation amount that 
is more than the amount of the max-
imum limitation on the original prin-
cipal obligation of a mortgage in effect 
for a residence of the applicable size, as 
of the date on which such interest rate 
is set, pursuant to the sixth sentence of 
section 305(a)(2) of the Federal Home
1461 
† HR 4173 EAS 
Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)); or 
‘‘(III) by 3.5 or more percentage 
points, in the case of a subordinate 
lien residential mortgage loan; 
‘‘(vi) for which the income and finan-
cial resources relied upon to qualify the ob-
ligors on the loan are verified and docu-
mented; 
‘‘(vii) for which the underwriting proc-
ess is based on a payment schedule that 
fully amortizes the loan over the loan term 
and takes into account all applicable taxes, 
insurance, and assessments; 
‘‘(viii) that does not cause the total 
monthly debts of the consumer, including 
amounts under the loan, to exceed a per-
centage established by regulation of the 
monthly gross income of the consumer, or 
such other maximum percentage of such in-
come, as may be prescribed by regulation 
under subsection (g), which rules shall take 
into consideration the income of the con-
sumer available to pay regular expenses
1462 
† HR 4173 EAS 
after payment of all installment and revolv-
ing debt; 
‘‘(ix) for which the total points and 
fees payable in connection with the loan do 
not exceed 2 percent of the total loan 
amount, where the term ‘points and fees’ 
means points and fees as defined by Section 
103(aa)(4) of the Truth in Lending Act (15 
U.S.C. 1602(aa)(4)); and 
‘‘(x) for which the term of the loan does 
not exceed 30 years, except as such term 
may be extended under subsection (g); and 
‘‘(B) any reverse mortgage that is insured 
by the Federal Housing Administration or com-
plies with the condition established in subpara-
graph (A)(v). 
‘‘(4) RESIDENTIAL MORTGAGE LOAN.—The term 
‘residential mortgage loan’ means any consumer cred-
it transaction that is secured by a mortgage, deed of 
trust, or other equivalent consensual security interest 
on a dwelling or on residential real property that in-
cludes a dwelling, other than a consumer credit trans-
action under an open end credit plan or an extension 
of credit relating to a plan described in section 
101(53D) of title 11, United States Code.’’.
1463 
† HR 4173 EAS 
(b) CONFORMING AMENDMENTS.—Section 129(c) of the 
Truth in Lending Act (15 U.S.C. 1639(c)) is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘(1) IN GENERAL.—’’; and 
(3) by redesignating subparagraphs (A) and (B) 
as paragraphs (1) and (2), respectively. 
SEC. 1076. ASSISTANCE FOR ECONOMICALLY VULNERABLE 
INDIVIDUALS AND FAMILIES. 
(a) HERA AMENDMENTS.—Section 1132 of the Hous-
ing and Economic Recovery Act of 2008 (12 U.S.C. 1701x 
note) is amended— 
(1) in subsection (a), by inserting in each of 
paragraphs (1), (2), (3), and (4) ‘‘or economically 
vulnerable individuals and families’’ after ‘‘home-
buyers’’ each place that term appears; 
(2) in subsection (b)(1), by inserting ‘‘or eco-
nomically vulnerable individuals and families’’ after 
‘‘homebuyers’’; 
(3) in subsection (c)(1)— 
(A) in subparagraph (A), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(C) a nonprofit corporation that—
1464 
† HR 4173 EAS 
‘‘(i) is exempt from taxation under sec-
tion 501(c)(3) of the Internal Revenue Code 
of 1986; and 
‘‘(ii) specializes or has expertise in 
working with economically vulnerable indi-
viduals and families, but whose primary 
purpose is not provision of credit counseling 
services.’’; and 
(4) in subsection (d)(1), by striking ‘‘not more 
than 5’’. 
(b) APPLICABILITY.—Amendments made by subsection 
(a) shall not apply to programs authorized by section 1132 
of the Housing and Economic Recovery Act of 2008 (12 
U.S.C. 1701x note) that are funded with appropriations 
prior to fiscal year 2011. 
SEC. 1077. REMITTANCE TRANSFERS. 
(a) TREATMENT OF REMITTANCE TRANSFERS.—The 
Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) is 
amended— 
(1) in section 902(b) (15 U.S.C. 1693(b)), by in-
serting ‘‘and remittance’’ after ‘‘electronic fund’’; 
(2) by redesignating sections 919, 920, 921, and 
922 as sections 920, 921, 922, and 923, respectively; 
and 
(3) by inserting after section 918 the following:
1465 
† HR 4173 EAS 
‘‘SEC. 919. REMITTANCE TRANSFERS. 
‘‘(a) DISCLOSURES
REQUIRED
FOR
REMITTANCE 
TRANSFERS.— 
‘‘(1) IN
GENERAL.—Each remittance transfer 
provider shall make disclosures as required under this 
section and in accordance with rules prescribed by the 
Board. 
‘‘(2) STOREFRONT DISCLOSURES.— 
‘‘(A) IN GENERAL.—At every physical store-
front location owned or controlled by a remit-
tance transfer provider (with respect to remit-
tance transfer activities), the remittance transfer 
provider shall prominently post, and update 
daily, a notice describing a model transfer for 
the amounts of $100 and $200 (in United States 
dollars) showing the amount of currency that 
will be received by the designated recipient, 
using the values of the currency into which the 
funds will be exchanged for the 3 currencies to 
which that particular storefront sends the great-
est number of remittance transfer payments, 
measured irrespective of the value of such pay-
ments. The values shall include all fees charged 
by the remittance transfer provider, taken out of 
the $100 and $200 amounts.
1466 
† HR 4173 EAS 
‘‘(B) ELECTRONIC DISCLOSURE.—Subject to 
the rules prescribed by the Board, a remittance 
transfer provider shall prominently post, and 
update daily, a notice describing a model trans-
fer, as described in subparagraph (A), on the 
Internet site owned or controlled by the remit-
tance transfer provider which senders use to elec-
tronically conduct remittance transfer trans-
actions. 
‘‘(3) SPECIFIC
DISCLOSURES.—In addition to 
any other disclosures applicable under this title, and 
subject to paragraph (4), a remittance transfer pro-
vider shall provide, in writing and in a form that the 
sender may keep, to each sender requesting a remit-
tance transfer, as applicable to the transaction— 
‘‘(A) at the time at which the sender re-
quests a remittance transfer to be initiated, and 
prior to the sender making any payment in con-
nection with the remittance transfer, a disclosure 
describing the amount of currency that will be 
sent to the designated recipient, using the values 
of the currency into which the funds will be ex-
changed; and
1467 
† HR 4173 EAS 
‘‘(B) at the time at which the sender makes 
payment in connection with the remittance 
transfer— 
‘‘(i) a receipt showing— 
‘‘(I) the information described in 
subparagraph (A); 
‘‘(II) the promised date of delivery 
to the designated recipient; and 
‘‘(III) the name and either the 
telephone number or the address of the 
designated recipient; and 
‘‘(ii) a statement containing— 
‘‘(I) information about the rights 
of the sender under this section regard-
ing the resolution of errors; and 
‘‘(II) appropriate contact infor-
mation for— 
‘‘(aa) the remittance transfer 
provider; and 
‘‘(bb) each State or Federal 
agency supervising the remittance 
transfer provider, including its 
State licensing authority or Fed-
eral regulator, as applicable.
1468 
† HR 4173 EAS 
‘‘(4) REQUIREMENTS
RELATING
TO
DISCLO-
SURES.—With respect to each disclosure required to 
be provided under paragraph (3), and subject to 
paragraph (5), a remittance transfer provider shall— 
‘‘(A) provide an initial notice and receipt, 
as required by subparagraphs (A) and (B) of 
paragraph (3), and an error resolution state-
ment, as required by subsection (c), that clearly 
and conspicuously describe the information re-
quired to be disclosed therein; and 
‘‘(B) with respect to any transaction that a 
sender conducts electronically, comply with the 
Electronic Signatures in Global and National 
Commerce Act (15 U.S.C. 7001 et seq.). 
‘‘(5) EXEMPTION AUTHORITY.—The Board may, 
by rule, permit a remittance transfer provider to sat-
isfy the requirements of— 
‘‘(A) paragraph (3)(A) orally, if the trans-
action is conducted entirely by telephone; 
‘‘(B) paragraph (3)(B), by mailing the doc-
uments required under such subparagraph to the 
sender, not later than 1 business day after the 
date on which the transaction is conducted, if the 
transaction is conducted entirely by telephone;
1469 
† HR 4173 EAS 
‘‘(C) subparagraphs (A) and (B) of para-
graph (3) together in one written disclosure, but 
only to the extent that the information provided 
in accordance with paragraph (3)(A) is accurate 
at the time at which payment is made in connec-
tion with the subject remittance transfer; 
‘‘(D) paragraph (3)(A), if a sender initiates 
a transaction to one of those countries displayed, 
in the exact amount of the transfers displayed 
pursuant to paragraph (2), if the Board finds it 
to be appropriate; and 
‘‘(E) paragraph (3)(A), without compliance 
with section 101(c) of the Electronic Signatures 
in Global Commerce Act, if a sender initiates the 
transaction electronically and the information is 
displayed electronically in a manner that the 
sender can keep. 
‘‘(b) FOREIGN LANGUAGE DISCLOSURES.— 
‘‘(1) IN
GENERAL.—The disclosures required 
under this section shall be made in English and in 
each of the same foreign languages principally used 
by the remittance transfer provider, or any of its 
agents, to advertise, solicit, or market, either orally or 
in writing, at that office.
1470 
† HR 4173 EAS 
‘‘(2) ACCOUNTS.—In the case of a sender who 
holds a demand deposit, savings deposit, or other 
asset account with the remittance transfer provider 
(other than an occasional or incidental credit balance 
under an open end credit plan, as defined in section 
103(i) of the Truth in Lending Act), the disclosures 
required under this section shall be made in the lan-
guage or languages principally used by the remittance 
transfer provider to communicate to the sender with 
respect to the account. 
‘‘(c) REMITTANCE TRANSFER ERRORS.— 
‘‘(1) ERROR RESOLUTION.— 
‘‘(A) IN GENERAL.—If a remittance transfer 
provider receives oral or written notice from the 
sender within 180 days of the promised date of 
delivery that an error occurred with respect to a 
remittance transfer, including the amount of 
currency designated in subsection (a)(3)(A) that 
was to be sent to the designated recipient of the 
remittance transfer, using the values of the cur-
rency into which the funds should have been ex-
changed, but was not made available to the des-
ignated recipient in the foreign country, the re-
mittance transfer provider shall resolve the error
1475 
† HR 4173 EAS 
(b) AUTOMATED CLEARINGHOUSE SYSTEM.— 
(1) EXPANSION OF SYSTEM.—The Board of Gov-
ernors shall work with the Federal reserve banks to 
expand the use of the automated clearinghouse system 
for remittance transfers to foreign countries, with a 
focus on countries that receive significant remittance 
transfers from the United States, based on— 
(A) the number, volume, and size of such 
transfers; 
(B) the significance of the volume of such 
transfers relative to the external financial flows 
of the receiving country, including— 
(i) the total amount transferred; and 
(ii) the total volume of payments made 
by United States Government agencies to 
beneficiaries and retirees living abroad; 
(C) the feasibility of such an expansion; 
and 
(D) the ability of the Federal Reserve Sys-
tem to establish payment gateways in different 
geographic regions and currency zones to receive 
remittance transfers and route them through the 
payments systems in the destination countries. 
(2) REPORT TO CONGRESS.—Not later than one 
calendar year after the date of enactment of this Act,
1476 
† HR 4173 EAS 
and on April 30 biennially thereafter during the 10- 
year period beginning on that date of enactment, the 
Board of Governors shall submit a report to the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services 
of the House of Representatives on the status of the 
automated clearinghouse system and its progress in 
complying with the requirements of this subsection. 
The report shall include an analysis of adoption rates 
of International ACH Transactions rules and for-
mats, the efficacy of increasing adoption rates, and 
potential recommendations to increase adoption. 
(c) EXPANSION OF FINANCIAL INSTITUTION PROVISION 
OF REMITTANCE TRANSFERS.— 
(1) PROVISION
OF
GUIDELINES
TO
INSTITU-
TIONS.—Each of the Federal banking agencies and the 
National Credit Union Administration shall provide 
guidelines to financial institutions under the jurisdic-
tion of the agency regarding the offering of low-cost 
remittance transfers and no-cost or low-cost basic con-
sumer accounts, as well as agency services to remit-
tance transfer providers. 
(2) ASSISTANCE TO FINANCIAL LITERACY COM-
MISSION.—As part of its duties as members of the Fi-
nancial Literacy and Education Commission, the Bu-
1477 
† HR 4173 EAS 
reau, the Federal banking agencies, and the National 
Credit Union Administration shall assist the Finan-
cial Literacy and Education Commission in exe-
cuting the Strategy for Assuring Financial Empower-
ment (or the ‘‘SAFE Strategy’’), as it relates to re-
mittances. 
(d) FEDERAL
CREDIT
UNION
ACT
CONFORMING 
AMENDMENT.—Paragraph (12) of section 107 of the Fed-
eral Credit Union Act (12 U.S.C. 1757) is amended to read 
as follows: 
‘‘(12) in accordance with regulations prescribed 
by the Board— 
‘‘(A) to sell, to persons in the field of mem-
bership, negotiable checks (including travelers 
checks), money orders, and other similar money 
transfer instruments (including international 
and domestic electronic fund transfers); 
‘‘(B) to provide remittance transfers, as de-
fined in section 919 of the Electronic Fund 
Transfer Act, to persons in the field of member-
ship; and 
‘‘(C) to cash checks and money orders for 
persons in the field of membership for a fee;’’.
1478 
† HR 4173 EAS 
SEC. 1078. DEPARTMENT OF THE TREASURY STUDY ON 
ENDING THE CONSERVATORSHIP OF FANNIE 
MAE, FREDDIE MAC, AND REFORMING THE 
HOUSING FINANCE SYSTEM. 
(a) STUDY REQUIRED.— 
(1) IN GENERAL.—The Secretary of the Treasury 
shall conduct a study of and develop recommendations 
regarding the options for ending the conservatorship 
of the Federal National Mortgage Association (in this 
section referred to as ‘‘Fannie Mae’’) and the Federal 
Home Loan Mortgage Corporation (in this section re-
ferred to as ‘‘Freddie Mac’’), while minimizing the 
cost to taxpayers, including such options as— 
(A) the gradual wind-down and liquidation 
of such entities; 
(B) the privatization of such entities; 
(C) the incorporation of the functions of 
such entities into a Federal agency; 
(D) the dissolution of Fannie Mae and 
Freddie Mac into smaller companies; or 
(E) any other measures the Secretary deter-
mines appropriate. 
(2) ANALYSES.—The study required under para-
graph (1) shall include an analysis of— 
(A) the role of the Federal Government in 
supporting a stable, well-functioning housing fi-
1479 
† HR 4173 EAS 
nance system, and whether and to what extent 
the Federal Government should bear risks in 
meeting Federal housing finance objectives; 
(B) how the current structure of the housing 
finance system can be improved; 
(C) how the housing finance system should 
support the continued availability of mortgage 
credit to all segments of the market; 
(D) how the housing finance system should 
be structured to ensure that consumers continue 
to have access to 30-year, fixed rate, pre-payable 
mortgages and other mortgage products that have 
simple terms that can be easily understood; 
(E) the role of the Federal Housing Admin-
istration and the Department of Veterans Affairs 
in a future housing system; 
(F) the impact of reforms of the housing fi-
nance system on the financing of rental housing; 
(G) the impact of reforms of the housing fi-
nance system on secondary market liquidity; 
(H) the role of standardization in the hous-
ing finance system; 
(I) how housing finance systems in other 
countries offer insights that can help inform op-
tions for reform in the United States; and
1480 
† HR 4173 EAS 
(J) the options for transition to a reformed 
housing finance system. 
(b) REPORT AND RECOMMENDATIONS.—Not later than 
January 31, 2011, the Secretary of the Treasury shall sub-
mit the report and recommendations required under sub-
section (a) to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives. 
SEC. 1079. REASONABLE FEES AND RULES FOR PAYMENT 
CARD TRANSACTIONS. 
The Electronic Fund Transfer Act (15 U.S.C. 1693 et 
seq.) is amended— 
(1) by redesignating sections 920 and 921 as sec-
tions 921 and 922, respectively; and 
(2) by inserting after section 919 the following: 
‘‘SEC. 920. REASONABLE FEES AND RULES FOR PAYMENT 
CARD TRANSACTIONS. 
‘‘(a) REASONABLE INTERCHANGE TRANSACTION FEES 
FOR ELECTRONIC DEBIT TRANSACTIONS.— 
‘‘(1) REGULATORY AUTHORITY.—The Board shall 
have authority to establish rules, pursuant to section 
553 of title 5, United States Code, regarding any 
interchange transaction fee that an issuer or payment 
card network may charge with respect to an electronic 
debit transaction.
1482 
† HR 4173 EAS 
work for the role of the issuer or the pay-
ment card network in the authorization, 
clearance, or settlement of a particular elec-
tronic debit transaction, which cost shall be 
considered under paragraph (2); and 
‘‘(ii) other costs incurred by an issuer 
or payment card network which are not spe-
cific to a particular electronic debit trans-
action, which costs shall not be considered 
under paragraph (2); and 
‘‘(C) consult, as appropriate, with the 
Comptroller of the Currency, the Board of Direc-
tors of the Federal Deposit Insurance Corpora-
tion, the Director of the Office of Thrift Super-
vision, the National Credit Union Administra-
tion Board, the Administrator of the Small 
Business Administration, and the Director of the 
Bureau of Consumer Financial Protection. 
‘‘(5) EXEMPTION
FOR
SMALL
ISSUERS.—This 
subsection shall not apply to issuers that, together 
with 
affiliates, 
have 
assets 
of 
less 
than 
$10,000,000,000, and the Board shall exempt such 
issuers from rules issued under paragraph (3).
1483 
† HR 4173 EAS 
‘‘(6) EFFECTIVE DATE.—Paragraph (2) shall be-
come effective 12 months after the date of enactment 
of the Consumer Financial Protection Act of 2010. 
‘‘(b) LIMITATION
ON ANTI-COMPETITIVE PAYMENT 
CARD NETWORK RESTRICTIONS.— 
‘‘(1) NO RESTRICTIONS ON OFFERING DISCOUNTS 
FOR
USE
OF
A
COMPETING
PAYMENT
CARD
NET-
WORK.—A payment card network shall not, directly 
or through any agent, processor, or licensed member 
of the network, by contract, requirement, condition, 
penalty, or otherwise, inhibit the ability of any per-
son to provide a discount or in-kind incentive for 
payment through the use of a card or device of an-
other payment card network, provided that the dis-
count or in-kind incentive only differentiates between 
payment card networks and not between other issuers. 
‘‘(2) NO RESTRICTIONS ON OFFERING DISCOUNTS 
FOR USE OF A FORM OF PAYMENT.—A payment card 
network shall not, directly or through any agent, 
processor, or licensed member of the network, by con-
tract, requirement, condition, penalty, or otherwise, 
inhibit the ability of any person to provide a discount 
or in-kind incentive for payment by the use of cash, 
check, debit card, or credit card.
1484 
† HR 4173 EAS 
‘‘(3) NO
RESTRICTIONS
ON
SETTING
TRANS-
ACTION MINIMUMS OR MAXIMUMS.—A payment card 
network shall not, directly or through any agent, 
processor, or licensed member of the network, by con-
tract, requirement, condition, penalty, or otherwise, 
inhibit the ability of any person to set a minimum 
or maximum dollar value for the acceptance by that 
person of credit cards, provided that such minimum 
or maximum dollar value does not differentiate be-
tween issuers or between payment card networks. 
‘‘(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) DEBIT CARD.—The term ‘debit card’— 
‘‘(A) means any card, or other payment 
code or device, issued or approved for use 
through a payment card network to debit an 
asset account for the purpose of transferring 
money between accounts or obtaining goods or 
services, whether authorization is based on signa-
ture, PIN, or other means; 
‘‘(B) includes general use prepaid cards, as 
that term is defined in section 915(a)(2)(A) (15 
U.S.C. 1693l–1(a)(2)(A)); and 
‘‘(C) does not include paper checks.
1485 
† HR 4173 EAS 
‘‘(2) CREDIT CARD.—The term ‘credit card’ has 
the same meaning as in section 103 of the Truth in 
Lending Act (15 U.S.C. 1602). 
‘‘(3) DISCOUNT.—The term ‘discount’— 
‘‘(A) means a reduction made from the 
price that customers are informed is the regular 
price; and 
‘‘(B) does not include any means of increas-
ing the price that customers are informed is the 
regular price. 
‘‘(4) ELECTRONIC
DEBIT
TRANSACTION.—The 
term ‘electronic debit transaction’ means a trans-
action in which a person uses a debit card to debit 
an asset account. 
‘‘(5) INTERCHANGE
TRANSACTION
FEE.—The 
term ‘interchange transaction fee’ means any fee es-
tablished by a payment card network that has been 
established for the purpose of compensating an issuer 
or payment card network for its involvement in an 
electronic debit transaction. 
‘‘(6) ISSUER.—The term ‘issuer’ means any per-
son who issues a debit card, or credit card, or the 
agent of such person with respect to such card. 
‘‘(7) PAYMENT CARD NETWORK.—The term ‘pay-
ment card network’ means an entity that directly, or
1486 
† HR 4173 EAS 
through licensed members, processors, or agents, pro-
vides the proprietary services, infrastructure, and 
software that route information and data to conduct 
transaction authorization, clearance, and settlement, 
and that a person uses in order to accept as a form 
of payment a brand of debit card, credit card or other 
device that may be used to carry out debit or credit 
transactions.’’. 
SEC. 1079A. USE OF CONSUMER REPORTS. 
Section 615 of the Fair Credit Reporting Act (15 
U.S.C. 1681m) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (2) and 
(3) as paragraphs (3) and (4), respectively; 
(B) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) provide to the consumer written or elec-
tronic disclosure— 
‘‘(A) of a numerical credit score as defined 
in section 609(f)(2)(A) used by such person in 
taking any adverse action based in whole or in 
part on any information in a consumer report; 
and
1487 
† HR 4173 EAS 
‘‘(B) of the information set forth in sub-
paragraphs 
(B) 
through 
(E) 
of 
section 
609(f)(1);’’; and 
(C) in paragraph (4) (as so redesignated), 
by striking ‘‘paragraph (2)’’ and inserting 
‘‘paragraph (3)’’; and 
(2) in subsection (h)(5)— 
(A) in subparagraph (C), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (D), by striking the 
period and inserting ‘‘; and’’; and 
(C) by inserting at the end the following: 
‘‘(E) include a statement informing the con-
sumer of— 
‘‘(i) a numerical credit score as defined 
in section 609(f)(2)(A), used by such person 
in connection with the credit decision de-
scribed in paragraph (1) based in whole or 
in part on any information in a consumer 
report; and 
‘‘(ii) the information set forth in sub-
paragraphs (B) through (E) of section 
609(f)(1).’’.