SEC. 2. ANTI-STEERING. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) by inserting after section 
129 the following new section: 
‘‘§ 129A. Anti-steering requirement 
‘‘(a) PROHIBITION ON STEERING INCENTIVES.—No 
mortgage originator may receive from any person, and no 
person may pay to any mortgage originator, any incentive 
compensation (including yield spread premium) that ac-
crues directly or indirectly to the mortgage originator that 
is based on, or varies with, the terms of any residential 
mortgage loan. 
‘‘(b) REGULATIONS.— 
‘‘(1) AUTHORIZED.—The Board and the Sec-
retary, in consultation with the Commission, may 
prescribe regulations to— 
‘‘(A) further define the terms ‘incentive 
compensation’ and ‘terms of any residential 
mortgage loan’; and 
‘‘(B) provide exceptions to the application 
of paragraph (1), or additional requirements, 
with respect to incentive compensation. 
‘‘(2) CONDITIONS.—In prescribing any regula-
tions that permit an exception to paragraph (1) or 
adds additional requirements, the Board and the 
Secretary shall ensure that such regulations— 
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‘‘(A) promote the interest of the consumer 
in obtaining— 
‘‘(i) the best terms for a residential 
mortgage loan for which the consumer 
qualifies; and 
‘‘(ii) useful information on the nature 
of the residential mortgage loan and the 
relationship of the consumer with the 
mortgage originator; and 
‘‘(B) prohibit mortgage originators from 
steering, counseling, or directing a consumer 
into any residential mortgage loan that is not in 
the consumer’s best interest, based on informa-
tion known by, or provided in good faith to, the 
originator, the characteristics of the property 
that secures or will secure the extension of 
credit, and the loan terms for which the con-
sumer qualifies. 
‘‘(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) 
MORTGAGE
ORIGINATOR.—The 
term 
‘mortgage originator’— 
‘‘(A) means a person who— 
‘‘(i) takes a residential mortgage loan 
application; 
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‘‘(ii) assists a consumer in obtaining 
or applying to obtain a residential mort-
gage loan; or 
‘‘(iii) offers or negotiates terms of a 
mortgage loan, for direct or indirect com-
pensation or gain, or in the expectation of 
direct or indirect compensation or gain; 
‘‘(B) includes any person who represents 
to the public, through advertising or other 
means of communicating or providing informa-
tion (including the use of business cards, sta-
tionery, brochures, signs, rate lists, or other 
promotional items), that such individual can or 
will provide or perform any of the activities de-
scribed in subparagraph (A); and 
‘‘(C) does not include any person who is 
not otherwise described in subparagraph (A) or 
(B) and who performs purely administrative or 
clerical tasks on behalf of a person who is de-
scribed in any such subparagraph. 
‘‘(2) RESIDENTIAL
MORTGAGE
LOAN.—The 
term ‘residential mortgage loan’ means any con-
sumer credit transaction that is secured by a mort-
gage or deed of trust on residential real estate that 
includes a dwelling.’’. 
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(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 fol-
lowing new item: 
‘‘129A. Anti steering requirement.’’. 
Æ 
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