creditor may impose a separate late payment charge 
or fee for any principal due (without deduction due 
to late fees or related fees) until the default is cured. 
‘‘(l) ACCELERATION OF DEBT.—No high-cost mortgage 
may contain a provision which permits the creditor, in its 
sole discretion, to accelerate the indebtedness. This provision 
shall not apply when repayment of the loan has been accel-
erated by default, pursuant to a due-on-sale provision, or 
pursuant to a material violation of some other provision 
of the loan documents unrelated to the payment schedule. 
‘‘(m) RESTRICTION
ON
FINANCING
POINTS
AND 
FEES.—No creditor may directly or indirectly finance, in 
connection with any high-cost mortgage, any of the fol-
lowing: 
‘‘(1) Any prepayment fee or penalty payable by 
the consumer in a refinancing transaction if the cred-
itor or an affiliate of the creditor is the noteholder of 
the note being refinanced. 
‘‘(2) Any points or fees.’’. 
(b) PROHIBITIONS ON EVASIONS.—Section 129 of the 
Truth in Lending Act (15 U.S.C. 1639) is amended by in-
serting after subsection (p) (as so redesignated by subsection 
(a)(1)) the following new subsection: 
‘‘(q) PROHIBITIONS ON EVASIONS, STRUCTURING OF 
TRANSACTIONS, 
AND
RECIPROCAL
ARRANGEMENTS.—A 
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creditor may not take any action in connection with a high- 
cost mortgage— 
‘‘(1) to structure a loan transaction as an open- 
end credit plan or another form of loan for the pur-
pose and with the intent of evading the provisions of 
this title; or 
‘‘(2) to divide any loan transaction into separate 
parts for the purpose and with the intent of evading 
provisions of this title.’’. 
(c) MODIFICATION OR DEFERRAL FEES.—Section 129 
of the Truth in Lending Act (15 U.S.C. 1639) is amended 
by inserting after subsection (q) (as added by subsection (b) 
of this section) the following new subsection: 
‘‘(r) MODIFICATION AND DEFERRAL FEES PROHIB-
ITED.—A creditor may not charge a consumer any fee to 
modify, renew, extend, or amend a high-cost mortgage, or 
to defer any payment due under the terms of such mortgage, 
unless the modification, renewal, extension or amendment 
results in a lower annual percentage rate on the mortgage 
for the consumer and then only if the amount of the fee 
is comparable to fees imposed for similar transactions in 
connection with consumer credit transactions that are se-
cured by a consumer’s principal dwelling and are not high- 
cost mortgages.’’. 
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(d) PAYOFF STATEMENT.—Section 129 of the Truth in 
Lending Act (15 U.S.C. 1639) is amended by inserting after 
subsection (r) (as added by subsection (c) of this section) 
the following new subsection: 
‘‘(s) PAYOFF STATEMENT.— 
‘‘(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 mortgage. 
‘‘(B) TRANSACTION FEE.—When payoff in-
formation referred to in subparagraph (A) is 
provided by facsimile transmission or by a cou-
rier service, a creditor or servicer may charge a 
processing fee to cover the cost of such trans-
mission or service in an amount not to exceed an 
amount that is comparable to fees imposed for 
similar services provided in connection with con-
sumer credit transactions that are secured by the 
consumer’s principal dwelling and are not high- 
cost mortgages. 
‘‘(C) FEE DISCLOSURE.—Prior to charging 
a transaction fee as provided in subparagraph 
(B), a creditor or servicer shall disclose that pay-
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off balances are available for free pursuant to 
subparagraph (A). 
‘‘(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 calendar 
year, the creditor or servicer may thereafter 
charge a reasonable fee for providing such infor-
mation during the remainder of the calendar 
year. 
‘‘(2) PROMPT DELIVERY.—Payoff balances shall 
be provided within 5 business days after receiving a 
request by a consumer or a person authorized by the 
consumer to obtain such information.’’. 
(e) PRE-LOAN COUNSELING REQUIRED.—Section 129 
of the Truth in Lending Act (15 U.S.C. 1639) is amended 
by inserting after subsection (s) (as added by subsection (d) 
of this section) the following new subsection: 
‘‘(t) PRE-LOAN COUNSELING.— 
‘‘(1) IN GENERAL.—A creditor may not extend 
credit to a consumer under a high-cost mortgage with-
out first receiving certification from a counselor that 
is approved by the Secretary of Housing and Urban 
Development, or at the discretion of the Secretary, a 
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state housing finance authority, that the consumer 
has received counseling on the advisability of the 
mortgage. Such counselor shall not be employed by the 
creditor or an affiliate of the creditor or be affiliated 
with the creditor. 
‘‘(2) DISCLOSURES REQUIRED PRIOR TO COUN-
SELING.—No counselor may certify that a consumer 
has received counseling on the advisability of the 
high-cost mortgage unless the counselor can verify 
that the consumer has received each statement re-
quired (in connection with such loan) by this section 
or the Real Estate Settlement Procedures Act of 1974 
with respect to the transaction. 
‘‘(3) REGULATIONS.—The Secretary of Housing 
and Urban Development may prescribe such regula-
tions as the Secretary determines to be appropriate to 
carry out the requirements of paragraph (1).’’. 
(f) FLIPPING PROHIBITED.—Section 129 of the Truth 
in Lending Act (15 U.S.C. 1639) is amended by inserting 
after subsection (t) (as added by subsection (e)) the fol-
lowing new subsection: 
‘‘(u) FLIPPING.— 
‘‘(1) IN GENERAL.—No creditor may knowingly 
or intentionally engage in the unfair act or practice 
of flipping in connection with a high-cost mortgage. 
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