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there was an unwarranted refusal by such party 
to fully resolve the matter which constitutes the 
basis of such suit; or 
‘‘(B) The party instituting the action 
knew, or should have known, that the action 
was frivolous and malicious. 
‘‘(6) REGULATIONS.—The Board may, by regu-
lation or order, add to, delete, or modify the factors 
listed in paragraph (3) of this subsection.’’. 
(i) NO CALL PROVISION.—Section 129 of the Truth 
in Lending Act (15 U.S.C. 1639) is amended by inserting 
after subsection (q) (as added by subsection (h) of this 
section) the following new subsection: 
‘‘(r) NO CALL PROVISION.—No high-cost home loan 
may contain a provision which permits the creditor, in its 
sole discretion, to accelerate the indebtedness. This provi-
sion shall not apply when repayment of the loan has been 
accelerated by default, pursuant to a due-on-sale provi-
sion, pursuant to a material violation of some other provi-
sion of the loan documents unrelated to the payment 
schedule, or due to any action or omission by the consumer 
that adversely affects the creditor’s security interest in the 
dwelling or any rights of the creditor in such security.’’. 
(j) MODIFICATION AND DEFERRAL FEES PROHIB-
ITED.—Section 129 of the Truth in Lending Act (15
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U.S.C. 1639) is amended by inserting after subsection (r) 
(as added by subsection (i) of this section) the following 
new subsection: 
‘‘(s) MODIFICATION AND DEFERRAL FEES PROHIB-
ITED.— 
‘‘(1) IN GENERAL.—A creditor may not charge 
a consumer any fee to modify, renew, extend, or 
amend a high-cost home loan, or to defer any pay-
ment due under the terms of such loan, unless the 
modification, renewal, extension or amendment re-
sults in a lower annual percentage rate on the loan 
for the consumer and then only if the amount of the 
fee is comparable to fees imposed for similar trans-
actions in connection with consumer credit trans-
actions that are secured by a consumer’s principal 
dwelling and are not high-cost home loans. 
‘‘(2) EXCEPTION FOR CERTAIN WORKOUTS.— 
The restrictions in paragraph (1) shall not apply in 
the case of an existing high-cost home loan that is 
in default or more than 60 days delinquent, if the 
modification, renewal, extension, or amendment is 
part of the resolution or workout of the default or 
delinquency.’’. 
(k) INCREASED INTEREST RATE UPON DEFAULT 
PROHIBITED.—Section 129 of the Truth in Lending Act
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(15 U.S.C. 1639) is amended by inserting after subsection 
(s) (as added by subsection (j) of this section) the fol-
lowing new subsection: 
‘‘(t) INCREASED INTEREST RATE UPON DEFAULT 
PERMITTED
FOR
VARIABLE-RATE
HIGH-COST
HOME 
LOAN.—In the case of a high-cost home loan that is sub-
ject to a variable rate of interest, subsection (d) shall not 
apply to changes in the rate of interest due to any change 
in the index rate, to the extent the change of interest is 
not due in any part to a default by the consumer or a 
permissible acceleration by the creditor.’’. 
(l) PREPAYMENT
OF PERIODIC PAYMENTS FROM 
PROCEEDS PROHIBITED.—Subsection (g) of section 129 
of the Truth in Lending Act (15 U.S.C. 1639) is amended 
to read as follows: 
‘‘(g) PREPAYMENT OF PERIODIC PAYMENTS FROM 
PROCEEDS PROHIBITED.—No high-cost home loan may 
include terms under which more than 2 scheduled pay-
ments of interest or principal due under such loan may 
be paid in advance or otherwise deducted from the pro-
ceeds of the loan.’’. 
(m) PAYOFF STATEMENTS.—Section 129 of the 
Truth in Lending Act (15 U.S.C. 1639) is amended by 
inserting after subsection (t) (as added by subsection (k) 
of this section) the following new subsection:
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‘‘(u) PAYOFF STATEMENTS.— 
‘‘(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 out-
standing balance on a high-cost home loan. 
‘‘(B) TRANSACTION FEE.—When payoff in-
formation referred to in subparagraph (A) is 
provided by facsimile or electronic transmission, 
courier service or other expedited means, 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 
transactions that are secured by the consumer’s 
principal dwelling and are not high-cost home 
loans. 
‘‘(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).
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‘‘(D) MULTIPLE REQUESTS.—If a creditor 
or servicer has provided payoff information re-
ferred to in subparagraph (A) without charge, 
other than the transaction fee allowed by sub-
paragraph (B), on 4 occasions during a cal-
endar year, the creditor or servicer may there-
after charge a reasonable fee for providing such 
information during the remainder of the cal-
endar year. 
‘‘(2) PROMPT DELIVERY.—Payoff balances shall 
be provided within a reasonable time but in any 
event no more than 10 business days after receiving 
a written request by a consumer or a person author-
ized by the consumer to obtain such information.’’. 
(n) DISCRETIONARY REGULATORY AUTHORITY OF 
THE BOARD.—Subsection (l) of section 129 of the Truth 
in Lending Act (15 U.S.C. 1639(l)) is amended— 
(1) by striking paragraph (2) and inserting the 
following new paragraphs: 
‘‘(2) The Board, by regulation or order, shall 
prohibit acts or practices in connection with— 
‘‘(A) mortgage loans that the Board finds 
to be unfair, deceptive, abusive, or designed to 
evade the provisions of this section; and
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‘‘(B) mortgage loans that the Board finds 
to be associated with abusive lending practices, 
or that are otherwise not in the interest of the 
borrower. 
‘‘(3) Notwithstanding paragraph (2), the Board 
shall not have authority to adjust or modify the defi-
nitions contained in section 103(aa) (15 U.S.C. 
1602(aa)) of this title. 
‘‘(4) On a biannual basis, the Board shall hold 
a hearing to solicit and consider input and rec-
ommendations from State Attorneys General and 
other interested parties on whether new regulations 
should be prescribed, or new legislation passed to 
prevent further acts and practices in connection with 
mortgage loans that are abusive or otherwise not in 
the interest of the borrower.’’. 
SEC. 104. AMENDMENTS RELATING TO DISPUTE AND 
ERROR RESOLUTION. 
(a) 
PROHIBITION
ON
ARBITRATION
REQUIRE-
MENTS.—Section 129 of the Truth in Lending Act (15 
U.S.C. 1639) is amended by inserting after subsection (m) 
(as added by subsection (d) of section 103) the following 
new subsection: 
‘‘(n) ARBITRATION.—