H. R. 4173—758 
entities, as, in the judgment of the Secretary, are necessary or 
proper to effectuate the purposes of this title, to prevent circumven-
tion or evasion of this title, or to facilitate compliance with this 
title. 
SEC. 1210. EVALUATION AND REPORTS TO CONGRESS. 
For each fiscal year in which a program or project is carried 
out under this title, the Secretary shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of Represent-
atives containing a description of the activities funded, amounts 
distributed, and measurable results, as appropriate and available. 
TITLE XIII—PAY IT BACK ACT 
SEC. 1301. SHORT TITLE. 
This title may be cited as the ‘‘Pay It Back Act’’. 
SEC. 1302. AMENDMENT TO REDUCE TARP AUTHORIZATION. 
Section 115(a) of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5225(a)) is amended— 
(1) in paragraph (3)— 
(A) by striking ‘‘, $700,000,000,000, as such amount 
is reduced by $1,259,000,000, as such amount is reduced 
by $1,244,000,000’’ and inserting ‘‘$475,000,000,000’’; and 
(B) by striking ‘‘outstanding at any one time’’; and 
(2) by adding at the end the following: 
‘‘(4) For purposes of this subsection, the amount of 
authority considered to be exercised by the Secretary shall 
not be reduced by— 
‘‘(A) any amounts received by the Secretary before, 
on, or after the date of enactment of the Pay It Back 
Act from repayment of the principal of financial assistance 
by an entity that has received financial assistance under 
the TARP or any other program enacted by the Secretary 
under the authorities granted to the Secretary under this 
Act; 
‘‘(B) any amounts committed for any guarantees pursu-
ant to the TARP that became or become uncommitted; 
or 
‘‘(C) any losses realized by the Secretary. 
‘‘(5) No authority under this Act may be used to incur 
any obligation for a program or initiative that was not initiated 
prior to June 25, 2010.’’. 
SEC. 1303. REPORT. 
Section 106 of the Emergency Economic Stabilization Act of 
2008 (12 U.S.C. 5216) is amended by inserting at the end the 
following: 
‘‘(f) REPORT.—The Secretary of the Treasury shall report to 
Congress every 6 months on amounts received and transferred 
to the general fund under subsection (d).’’.
H. R. 4173—759 
SEC. 1304. AMENDMENTS TO HOUSING AND ECONOMIC RECOVERY ACT 
OF 2008. 
(a) SALE
OF FANNIE MAE OBLIGATIONS
AND SECURITIES
BY 
THE TREASURY; DEFICIT REDUCTION.—Section 304(g)(2) of the Fed-
eral National Mortgage Association Charter Act (12 U.S.C. 
1719(g)(2)) is amended— 
(1) by redesignating subparagraph (C) as subparagraph 
(D); and 
(2) by inserting after subparagraph (B) the following: 
‘‘(C) DEFICIT
REDUCTION.—The Secretary of the 
Treasury shall deposit in the General Fund of the Treasury 
any amounts received by the Secretary from the sale of 
any obligation acquired by the Secretary under this sub-
section, where such amounts shall be— 
‘‘(i) dedicated for the sole purpose of deficit reduc-
tion; and 
‘‘(ii) prohibited from use as an offset for other 
spending increases or revenue reductions.’’. 
(b) SALE OF FREDDIE MAC OBLIGATIONS AND SECURITIES BY 
THE TREASURY; DEFICIT REDUCTION.—Section 306(l)(2) of the Fed-
eral Home Loan Mortgage Corporation Act (12 U.S.C. 1455(l)(2)) 
is amended— 
(1) by redesignating subparagraph (C) as subparagraph 
(D); and 
(2) by inserting after subparagraph (B) the following: 
‘‘(C) DEFICIT
REDUCTION.—The Secretary of the 
Treasury shall deposit in the General Fund of the Treasury 
any amounts received by the Secretary from the sale of 
any obligation acquired by the Secretary under this sub-
section, where such amounts shall be— 
‘‘(i) dedicated for the sole purpose of deficit reduc-
tion; and 
‘‘(ii) prohibited from use as an offset for other 
spending increases or revenue reductions.’’. 
(c) SALE OF FEDERAL HOME LOAN BANKS OBLIGATIONS BY THE 
TREASURY; DEFICIT REDUCTION.—Section 11(l)(2) of the Federal 
Home Loan Bank Act (12 U.S.C. 1431(l)(2)) is amended— 
(1) by redesignating subparagraph (C) as subparagraph 
(D); and 
(2) by inserting after subparagraph (B) the following: 
‘‘(C) DEFICIT
REDUCTION.—The Secretary of the 
Treasury shall deposit in the General Fund of the Treasury 
any amounts received by the Secretary from the sale of 
any obligation acquired by the Secretary under this sub-
section, where such amounts shall be— 
‘‘(i) dedicated for the sole purpose of deficit reduc-
tion; and 
‘‘(ii) prohibited from use as an offset for other 
spending increases or revenue reductions.’’. 
(d) REPAYMENT OF FEES.—Any periodic commitment fee or any 
other fee or assessment paid by the Federal National Mortgage 
Association or Federal Home Loan Mortgage Corporation to the 
Secretary of the Treasury as a result of any preferred stock purchase 
agreement, mortgage-backed security purchase program, or any 
other program or activity authorized or carried out pursuant to 
the authorities granted to the Secretary of the Treasury under 
section 1117 of the Housing and Economic Recovery Act of 2008
H. R. 4173—760 
(Public Law 110–289; 122 Stat. 2683), including any fee agreed 
to by contract between the Secretary and the Association or Cor-
poration, shall be deposited in the General Fund of the Treasury 
where such amounts shall be— 
(1) dedicated for the sole purpose of deficit reduction; and 
(2) prohibited from use as an offset for other spending 
increases or revenue reductions. 
SEC. 1305. FEDERAL HOUSING FINANCE AGENCY REPORT. 
The Director of the Federal Housing Finance Agency shall 
submit to Congress a report on the plans of the Agency to continue 
to support and maintain the Nation’s vital housing industry, while 
at the same time guaranteeing that the American taxpayer will 
not suffer unnecessary losses. 
SEC. 1306. REPAYMENT OF UNOBLIGATED ARRA FUNDS. 
(a) REJECTION OF ARRA FUNDS BY STATE.—Section 1607 of 
the American Recovery and Reinvestment Act of 2009 (Public Law 
111–5; 123 Stat. 305) is amended by adding at the end the following: 
‘‘(d) STATEWIDE REJECTION OF FUNDS.—If funds provided to 
any State in any division of this Act are not accepted for use 
by the Governor of the State pursuant to subsection (a) or by 
the State legislature pursuant to subsection (b), then all such funds 
shall be— 
‘‘(1) rescinded; and 
‘‘(2) deposited in the General Fund of the Treasury where 
such amounts shall be— 
‘‘(A) dedicated for the sole purpose of deficit reduction; 
and 
‘‘(B) prohibited from use as an offset for other spending 
increases or revenue reductions.’’. 
(b) WITHDRAWAL
OR RECAPTURE
OF UNOBLIGATED FUNDS.— 
Title XVI of the American Recovery and Reinvestment Act of 2009 
(Public Law 111–5; 123 Stat. 302) is amended by adding at the 
end the following: 
‘‘SEC. 1613. WITHDRAWAL OR RECAPTURE OF UNOBLIGATED FUNDS. 
‘‘Notwithstanding any other provision of this Act, if the head 
of any executive agency withdraws or recaptures for any reason 
funds appropriated or otherwise made available under this division, 
and such funds have not been obligated by a State to a local 
government or for a specific project, such recaptured funds shall 
be— 
‘‘(1) rescinded; and 
‘‘(2) deposited in the General Fund of the Treasury where 
such amounts shall be— 
‘‘(A) dedicated for the sole purpose of deficit reduction; 
and 
‘‘(B) prohibited from use as an offset for other spending 
increases or revenue reductions.’’. 
(c) RETURN OF UNOBLIGATED FUNDS BY END OF 2012.—Section 
1603 of the American Recovery and Reinvestment Act of 2009 
(Public Law 111–5; 123 Stat. 302) is amended by— 
(1) striking ‘‘All funds’’ and inserting ‘‘(a) IN GENERAL.— 
All funds’’; and 
(2) adding at the end the following: 
‘‘(b) REPAYMENT OF UNOBLIGATED FUNDS.—Any discretionary 
appropriations made available in this division that have not been
H. R. 4173—761 
obligated as of December 31, 2012, are hereby rescinded, and such 
amounts shall be deposited in the General Fund of the Treasury 
where such amounts shall be— 
‘‘(1) dedicated for the sole purpose of deficit reduction; 
and 
‘‘(2) prohibited from use as an offset for other spending 
increases or revenue reductions. 
‘‘(c) PRESIDENTIAL WAIVER AUTHORITY.— 
‘‘(1) IN GENERAL.—The President may waive the require-
ments under subsection (b), if the President determines that 
it is not in the best interest of the Nation to rescind a specific 
unobligated amount after December 31, 2012. 
‘‘(2) REQUESTS.—The head of an executive agency may also 
apply to the President for a waiver from the requirements 
under subsection (b).’’. 
TITLE XIV—MORTGAGE REFORM AND 
ANTI-PREDATORY LENDING ACT 
SEC. 1400. SHORT TITLE; DESIGNATION AS ENUMERATED CONSUMER 
LAW. 
(a) SHORT TITLE.—This title may be cited as the ‘‘Mortgage 
Reform and Anti-Predatory Lending Act’’. 
(b) DESIGNATION AS ENUMERATED CONSUMER LAW UNDER THE 
PURVIEW OF THE BUREAU OF CONSUMER FINANCIAL PROTECTION.— 
Subtitles A, B, C, and E and sections 1471, 1472, 1475, and 1476, 
and the amendments made by such subtitles and sections, shall 
be enumerated consumer laws, as defined in section 1002, and 
come under the purview of the Bureau of Consumer Financial 
Protection for purposes of title X, including the transfer of functions 
and personnel under subtitle F of title X and the savings provisions 
of such subtitle. 
(c) REGULATIONS; EFFECTIVE DATE.— 
(1) REGULATIONS.—The regulations required to be pre-
scribed under this title or the amendments made by this title 
shall— 
(A) be prescribed in final form before the end of the 
18-month period beginning on the designated transfer date; 
and 
(B) take effect not later than 12 months after the 
date of issuance of the regulations in final form. 
(2) EFFECTIVE DATE ESTABLISHED BY RULE.—Except as pro-
vided in paragraph (3), a section, or provision thereof, of this 
title shall take effect on the date on which the final regulations 
implementing such section, or provision, take effect. 
(3) EFFECTIVE DATE.—A section of this title for which regu-
lations have not been issued on the date that is 18 months 
after the designated transfer date shall take effect on such 
date.
H. R. 4173—762 
Subtitle A—Residential Mortgage Loan 
Origination Standards 
SEC. 1401. DEFINITIONS. 
Section 103 of the Truth in Lending Act (15 U.S.C. 1602) 
is amended by adding at the end the following new subsection: 
‘‘(cc) DEFINITIONS RELATING TO MORTGAGE ORIGINATION AND 
RESIDENTIAL MORTGAGE LOANS.— 
‘‘(1) COMMISSION.—Unless otherwise specified, the term 
‘Commission’ means the Federal Trade Commission. 
‘‘(2) MORTGAGE
ORIGINATOR.—The term ‘mortgage origi-
nator’— 
‘‘(A) means any person who, for direct or indirect com-
pensation or gain, or in the expectation of direct or indirect 
compensation or gain— 
‘‘(i) takes a residential mortgage loan application; 
‘‘(ii) assists a consumer in obtaining or applying 
to obtain a residential mortgage loan; or 
‘‘(iii) offers or negotiates terms of a residential 
mortgage loan; 
‘‘(B) includes any person who represents to the public, 
through advertising or other means of communicating or 
providing information (including the use of business cards, 
stationery, brochures, signs, rate lists, or other promotional 
items), that such person can or will provide any of the 
services or perform any of the activities described in 
subparagraph (A); 
‘‘(C) does not include any person who is (i) not other-
wise described in subparagraph (A) or (B) and who performs 
purely administrative or clerical tasks on behalf of a person 
who is described in any such subparagraph, or (ii) an 
employee of a retailer of manufactured homes who is not 
described in clause (i) or (iii) of subparagraph (A) and 
who does not advise a consumer on loan terms (including 
rates, fees, and other costs); 
‘‘(D) does not include a person or entity that only 
performs real estate brokerage activities and is licensed 
or registered in accordance with applicable State law, 
unless such person or entity is compensated by a lender, 
a mortgage broker, or other mortgage originator or by 
any agent of such lender, mortgage broker, or other mort-
gage originator; 
‘‘(E) does not include, with respect to a residential 
mortgage loan, a person, estate, or trust that provides 
mortgage financing for the sale of 3 properties in any 
12-month period to purchasers of such properties, each 
of which is owned by such person, estate, or trust and 
serves as security for the loan, provided that such loan— 
‘‘(i) is not made by a person, estate, or trust that 
has constructed, or acted as a contractor for the 
construction of, a residence on the property in the 
ordinary course of business of such person, estate, or 
trust; 
‘‘(ii) is fully amortizing;
H. R. 4173—763 
‘‘(iii) is with respect to a sale for which the seller 
determines in good faith and documents that the buyer 
has a reasonable ability to repay the loan; 
‘‘(iv) has a fixed rate or an adjustable rate that 
is adjustable after 5 or more years, subject to reason-
able annual and lifetime limitations on interest rate 
increases; and 
‘‘(v) meets any other criteria the Board may pre-
scribe; 
‘‘(F) does not include the creditor (except the creditor 
in a table-funded transaction) under paragraph (1), (2), 
or (4) of section 129B(c); and 
‘‘(G) does not include a servicer or servicer employees, 
agents and contractors, including but not limited to those 
who offer or negotiate terms of a residential mortgage 
loan for purposes of renegotiating, modifying, replacing 
and subordinating principal of existing mortgages where 
borrowers are behind in their payments, in default or have 
a reasonable likelihood of being in default or falling behind. 
‘‘(3) NATIONWIDE MORTGAGE LICENSING SYSTEM AND REG-
ISTRY.—The term ‘Nationwide Mortgage Licensing System and 
Registry’ has the same meaning as in the Secure and Fair 
Enforcement for Mortgage Licensing Act of 2008. 
‘‘(4) OTHER
DEFINITIONS
RELATING
TO
MORTGAGE
ORIGI-
NATOR.—For purposes of this subsection, a person ‘assists a 
consumer in obtaining or applying to obtain a residential mort-
gage loan’ by, among other things, advising on residential mort-
gage loan terms (including rates, fees, and other costs), pre-
paring residential mortgage loan packages, or collecting 
information on behalf of the consumer with regard to a residen-
tial mortgage loan. 
‘‘(5) RESIDENTIAL MORTGAGE LOAN.—The term ‘residential 
mortgage loan’ means any consumer credit 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 includes a dwelling, other than a consumer 
credit transaction under an open end credit plan or, for pur-
poses of sections 129B and 129C and section 128(a) (16), (17), 
(18), and (19), and sections 128(f) and 130(k), and any regula-
tions promulgated thereunder, an extension of credit relating 
to a plan described in section 101(53D) of title 11, United 
States Code. 
‘‘(6) SECRETARY.—The term ‘Secretary’, when used in 
connection with any transaction or person involved with a 
residential mortgage loan, means the Secretary of Housing 
and Urban Development. 
‘‘(7) SERVICER.—The term ‘servicer’ has the same meaning 
as in section 6(i)(2) of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2605(i)(2)).’’. 
SEC. 1402. RESIDENTIAL MORTGAGE LOAN ORIGINATION. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15 
U.S.C. 1631 et seq.) is amended— 
(1) by redesignating the 2nd of the 2 sections designated 
as section 129 (15 U.S.C. 1639a) (relating to duty of servicers 
of residential mortgages) as section 129A; and
H. R. 4173—764 
(2) by inserting after section 129A (as so redesignated) 
the following new section: 
‘‘§ 129B. Residential mortgage loan origination 
‘‘(a) FINDING AND PURPOSE.— 
‘‘(1) FINDING.—The Congress finds that economic stabiliza-
tion would be enhanced by the protection, limitation, and regu-
lation of the terms of residential mortgage credit and the prac-
tices related to such credit, while ensuring that responsible, 
affordable mortgage credit remains available to consumers. 
‘‘(2) PURPOSE.—It is the purpose of this section and section 
129C to assure that consumers are offered and receive residen-
tial mortgage loans on terms that reasonably reflect their ability 
to repay the loans and that are understandable and not unfair, 
deceptive or abusive. 
‘‘(b) DUTY OF CARE.— 
‘‘(1) STANDARD.—Subject to regulations prescribed under 
this subsection, each mortgage originator shall, in addition 
to the duties imposed by otherwise applicable provisions of 
State or Federal law— 
‘‘(A) be qualified and, when required, registered and 
licensed as a mortgage originator in accordance with 
applicable State or Federal law, including the Secure and 
Fair Enforcement for Mortgage Licensing Act of 2008; and 
‘‘(B) include on all loan documents any unique identi-
fier of the mortgage originator provided by the Nationwide 
Mortgage Licensing System and Registry. 
‘‘(2) COMPLIANCE PROCEDURES REQUIRED.—The Board shall 
prescribe regulations requiring depository institutions to estab-
lish and maintain procedures reasonably designed to assure 
and monitor the compliance of such depository institutions, 
the subsidiaries of such institutions, and the employees of 
such institutions or subsidiaries with the requirements of this 
section and the registration procedures established under sec-
tion 1507 of the Secure and Fair Enforcement for Mortgage 
Licensing Act of 2008.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for chapter 
2 of the Truth in Lending Act is amended by inserting after the 
item relating to section 129 the following new items: 
‘‘129A. Fiduciary duty of servicers of pooled residential mortgages. 
‘‘129B. Residential mortgage loan origination.’’. 
SEC. 1403. PROHIBITION ON STEERING INCENTIVES. 
Section 129B of the Truth in Lending Act (as added by section 
1402(a)) is amended by inserting after subsection (b) the following 
new subsection: 
‘‘(c) PROHIBITION ON STEERING INCENTIVES.— 
‘‘(1) IN GENERAL.—For any residential mortgage loan, no 
mortgage originator shall receive from any person and no per-
son shall pay to a mortgage originator, directly or indirectly, 
compensation that varies based on the terms of the loan (other 
than the amount of the principal). 
‘‘(2) RESTRUCTURING OF FINANCING ORIGINATION FEE.— 
‘‘(A) IN GENERAL.—For any mortgage loan, a mortgage 
originator may not receive from any person other than 
the consumer and no person, other than the consumer, 
who knows or has reason to know that a consumer has
H. R. 4173—765 
directly compensated or will directly compensate a mort-
gage originator may pay a mortgage originator any origina-
tion fee or charge except bona fide third party charges 
not retained by the creditor, mortgage originator, or an 
affiliate of the creditor or mortgage originator . 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
a mortgage originator may receive from a person other 
than the consumer an origination fee or charge, and a 
person other than the consumer may pay a mortgage origi-
nator an origination fee or charge, if— 
‘‘(i) the mortgage originator does not receive any 
compensation directly from the consumer; and 
‘‘(ii) the consumer does not make an upfront pay-
ment of discount points, origination points, or fees, 
however denominated (other than bona fide third party 
charges not retained by the mortgage originator, cred-
itor, or an affiliate of the creditor or originator), except 
that the Board may, by rule, waive or provide exemp-
tions to this clause if the Board determines that such 
waiver or exemption is in the interest of consumers 
and in the public interest. 
‘‘(3) REGULATIONS.—The Board shall prescribe regulations 
to prohibit— 
‘‘(A) mortgage originators from steering any consumer 
to a residential mortgage loan that— 
‘‘(i) the consumer lacks a reasonable ability to 
repay (in accordance with regulations prescribed under 
section 129C(a)); or 
‘‘(ii) has predatory characteristics or effects (such 
as equity stripping, excessive fees, or abusive terms); 
‘‘(B) mortgage originators from steering any consumer 
from a residential mortgage loan for which the consumer 
is qualified that is a qualified mortgage (as defined in 
section 129C(b)(2)) to a residential mortgage loan that is 
not a qualified mortgage; 
‘‘(C) abusive or unfair lending practices that promote 
disparities among consumers of equal credit worthiness 
but of different race, ethnicity, gender, or age; and 
‘‘(D) mortgage originators from— 
‘‘(i) mischaracterizing the credit history of a con-
sumer or the residential mortgage loans available to 
a consumer; 
‘‘(ii) 
mischaracterizing 
or 
suborning 
the 
mischaracterization of the appraised value of the prop-
erty securing the extension of credit; or 
‘‘(iii) if unable to suggest, offer, or recommend to 
a consumer a loan that is not more expensive than 
a loan for which the consumer qualifies, discouraging 
a consumer from seeking a residential mortgage loan 
secured by a consumer’s principal dwelling from 
another mortgage originator. 
‘‘(4) RULES OF CONSTRUCTION.—No provision of this sub-
section shall be construed as— 
‘‘(A) permitting any yield spread premium or other 
similar compensation that would, for any residential mort-
gage loan, permit the total amount of direct and indirect 
compensation from all sources permitted to a mortgage
H. R. 4173—766 
originator to vary based on the terms of the loan (other 
than the amount of the principal); 
‘‘(B) limiting or affecting the amount of compensation 
received by a creditor upon the sale of a consummated 
loan to a subsequent purchaser; 
‘‘(C) restricting a consumer’s ability to finance, at the 
option of the consumer, including through principal or rate, 
any origination fees or costs permitted under this sub-
section, or the mortgage originator’s right to receive such 
fees or costs (including compensation) from any person, 
subject to paragraph (2)(B), so long as such fees or costs 
do not vary based on the terms of the loan (other than 
the amount of the principal) or the consumer’s decision 
about whether to finance such fees or costs; or 
‘‘(D) prohibiting incentive payments to a mortgage 
originator based on the number of residential mortgage 
loans originated within a specified period of time.’’. 
SEC. 1404. LIABILITY. 
Section 129B of the Truth in Lending Act is amended by 
inserting after subsection (c) (as added by section 1403) the fol-
lowing new subsection: 
‘‘(d) LIABILITY FOR VIOLATIONS.— 
‘‘(1) IN GENERAL.—For purposes of providing a cause of 
action for any failure by a mortgage originator, other than 
a creditor, to comply with any requirement imposed under 
this section and any regulation prescribed under this section, 
section 130 shall be applied with respect to any such failure 
by substituting ‘mortgage originator’ for ‘creditor’ each place 
such term appears in each such subsection. 
‘‘(2) MAXIMUM.—The maximum amount of any liability of 
a mortgage originator under paragraph (1) to a consumer for 
any violation of this section shall not exceed the greater of 
actual damages or an amount equal to 3 times the total amount 
of direct and indirect compensation or gain accruing to the 
mortgage originator in connection with the residential mortgage 
loan involved in the violation, plus the costs to the consumer 
of the action, including a reasonable attorney’s fee.’’. 
SEC. 1405. REGULATIONS. 
(a) DISCRETIONARY REGULATORY AUTHORITY.—Section 129B of 
the Truth in Lending Act is amended by inserting after subsection 
(d) (as added by section 1404) the following new subsection: 
‘‘(e) DISCRETIONARY REGULATORY AUTHORITY.— 
‘‘(1) IN GENERAL.—The Board shall, by regulations, prohibit 
or condition terms, acts or practices relating to residential 
mortgage loans that the Board finds to be abusive, unfair, 
deceptive, predatory, necessary or proper to ensure that respon-
sible, affordable mortgage credit remains available to con-
sumers in a manner consistent with the purposes of this section 
and section 129C, necessary or proper to effectuate the purposes 
of this section and section 129C, to prevent circumvention or 
evasion thereof, or to facilitate compliance with such sections, 
or are not in the interest of the borrower. 
‘‘(2) APPLICATION.—The regulations prescribed under para-
graph (1) shall be applicable to all residential mortgage loans 
and shall be applied in the same manner as regulations pre-
scribed under section 105.