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‘‘(12) UNITED
STATES
INSURER.—The term 
‘United States insurer’ means— 
‘‘(A) an insurer that is organized under 
the laws of a State; or 
‘‘(B) a United States branch of a non- 
United States insurer. 
‘‘(q) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated for the Office such sums 
as may be necessary for each fiscal year. 
‘‘SEC. 314. COVERED AGREEMENTS. 
‘‘(a) AUTHORITY.—The Secretary and the United 
States Trade Representative are authorized, jointly, to ne-
gotiate and enter into covered agreements on behalf of the 
United States. 
‘‘(b) REQUIREMENTS
FOR
CONSULTATION
WITH 
CONGRESS.— 
‘‘(1) IN GENERAL.—Before initiating negotia-
tions to enter into a covered agreement under sub-
section (a), during such negotiations, and before en-
tering into any such agreement, the Secretary and 
the United States Trade Representative shall jointly 
consult with the Committee on Financial Services 
and the Committee on Ways and Means of the 
House of Representatives and the Committee on 
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Banking, Housing, and Urban Affairs and the Com-
mittee on Finance of the Senate. 
‘‘(2) SCOPE.—The consultation described in 
paragraph (1) shall include consultation with respect 
to— 
‘‘(A) the nature of the agreement; 
‘‘(B) how and to what extent the agree-
ment will achieve the applicable purposes, poli-
cies, priorities, and objectives of section 313 
and this section; and 
‘‘(C) the implementation of the agreement, 
including the general effect of the agreement on 
existing State laws. 
‘‘(c) SUBMISSION
AND LAYOVER PROVISIONS.—A 
covered agreement under subsection (a) may enter into 
force with respect to the United States only if— 
‘‘(1) the Secretary and the United States Trade 
Representative jointly submit to the congressional 
committees specified in subsection (b)(1), on a day 
on which both Houses of Congress are in session, a 
copy of the final legal text of the agreement; and 
‘‘(2) a period of 90 calendar days beginning on 
the date on which the copy of the final legal text of 
the agreement is submitted to the congressional 
committees under paragraph (1) has expired.’’. 
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(b) DUTIES OF SECRETARY.—Section 321(a) of title 
31, United States Code, is amended— 
(1) in paragraph (7), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (8)(C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(9) advise the President on major domestic 
and international prudential policy issues in connec-
tion with all lines of insurance except health insur-
ance.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter I of chapter 3 of title 31, United States 
Code, is amended by striking the item relating to section 
312 and inserting the following new items: 
‘‘Sec. 312. Terrorism and Financial Intelligence. 
‘‘Sec. 313. Federal Insurance Office. 
‘‘Sec. 314. Covered agreements. 
‘‘Sec. 315. Continuing in office.’’. 
SEC. 8003. REPORT ON GLOBAL REINSURANCE MARKET. 
Not later than September 30, 2011, the Director of 
the Federal Insurance Office appointed under section 
313(b) of title 31, United States Code (as amended by 
section 8002(a)(3) of this title) shall submit to the Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban 
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Affairs of the Senate a report describing the breadth and 
scope of the global reinsurance market and the critical role 
such market plays in supporting insurance in the United 
States. 
SEC. 8004. STUDY ON MODERNIZATION AND IMPROVEMENT 
OF INSURANCE REGULATION IN THE UNITED 
STATES. 
(a) STUDY.—The Director of the Federal Insurance 
Office appointed under section 313(b) of title 31, United 
States Code (as amended by section 8002(a)(3) of this 
title) shall conduct a study on how to modernize and im-
prove the system of insurance regulation in the United 
States. Such study shall include consideration of the fol-
lowing: 
(1) Effective systemic risk regulation with re-
spect to insurance. 
(2) Strong capital standards and an appro-
priate match between capital allocation and liabil-
ities for all risk. 
(3) Meaningful and consistent consumer protec-
tion for insurance products and practices. 
(4) Increased national uniformity through ei-
ther a Federal charter or effective action by the 
States. 
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(5) Improved regulation of insurance companies 
and affiliates on a consolidated basis, including af-
filiates outside of the traditional insurance business. 
(6) International coordination. 
(7) Geographic disparities in access to and cost 
of insurance products. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Director shall submit 
to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate a report containing— 
(1) the results of the study conducted under 
subsection (a); and 
(2) any Federal or State legislative, administra-
tive, or regulatory recommendations that the Direc-
tor considers appropriate with respect to such study 
to modernize and improve the system of insurance 
regulation in the United States. 
(c) CONSULTATION.—In carrying out subsections (a) 
and (b), the Director shall consult with State insurance 
commissioners, consumer organizations, representatives of 
the insurance industry, policyholders, and other persons, 
as the Director considers appropriate. 
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SEC. 8005. SENSE OF CONGRESS REGARDING SIMPLIFIED 
MORTGAGE CONTRACT SUMMARIES. 
It is the sense of Congress that mortgage lenders 
should provide loan applicants with a simplified summary 
of their loan contracts, including an easy-to-read list of 
the basic loan terms, payment information, the existence 
of prepayment penalties or balloon payments, and escrow 
information. 
TITLE VII—MORTGAGE REFORM 
AND ANTI-PREDATORY LEND-
ING ACT 
SEC. 9000. 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 CONSUMER FINANCIAL 
PROTECTION AGENCY.—Subtitles A, B, C, and E and sec-
tions 9501, 9502, and 9506, and the amendments made 
by such subtitles and sections, shall be enumerated con-
sumer laws, as defined in section 4002(16), and come 
under the purview of the Consumer Financial Protection 
Agency for purposes of title IV, including the transfer of 
functions and personnel under subtitle F of title IV and 
the savings provisions of such subtitle. 
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Subtitle A—Residential Mortgage 
Loan Origination Standards 
SEC. 9001. 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 ORIGI-
NATION AND RESIDENTIAL MORTGAGE LOANS.— 
‘‘(1) COMMISSION.—Unless otherwise specified, 
the term ‘Commission’ means the Federal Trade 
Commission. 
‘‘(2) FEDERAL BANKING AGENCIES.—The term 
‘Federal banking agencies’ means the Board of Gov-
ernors of the Federal Reserve System, the Comp-
troller of the Currency, the Director of the Office of 
Thrift Supervision, the Federal Deposit Insurance 
Corporation, and the National Credit Union Admin-
istration Board. All rule writing by the ‘Federal 
banking agencies’ as designated by the Mortgage 
Reform and Anti-Predatory Lending Act will be co-
ordinated through the Financial Institutions Exam-
ination Council in consultation with the Chairman of 
the State Liaison Committee. 
‘‘(3) 
MORTGAGE
ORIGINATOR.—The 
term 
‘mortgage originator’— 
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‘‘(A) means any person who, for direct or 
indirect compensation or gain, or in the expec-
tation 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 mort-
gage 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 informa-
tion (including the use of business cards, sta-
tionery, 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 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, or (ii) an 
employee of a retailer of manufactured homes 
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who is not described in clause (i) or (iii) of sub-
paragraph (A) and who does not advise a con-
sumer on loan terms (including rates, fees, and 
other costs); 
‘‘(D) does not include a person or entity 
that only performs real estate brokerage activi-
ties and is licensed or registered in accordance 
with applicable State law, unless such person or 
entity is compensated for performing such bro-
kerage activities by a lender, a mortgage 
broker, or other mortgage originator or by any 
agent of such lender, mortgage broker, or other 
mortgage 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 1 property in any 36-month period, pro-
vided that such loan— 
‘‘(i) is fully amortizing; 
‘‘(ii) is with respect to a sale for 
which the seller determines in good faith 
and documents that the buyer has a rea-
sonable ability to repay the loan; 
‘‘(iii) has a fixed rate or an adjustable 
rate that is adjustable after 5 or more 
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years, subject to reasonable annual and 
lifetime limitations on interest rate in-
creases; and 
‘‘(iv) meets any other criteria the 
Federal banking agencies may prescribe; 
and 
‘‘(F) 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 pur-
poses 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. 
‘‘(4) NATIONWIDE MORTGAGE LICENSING SYS-
TEM AND REGISTRY.—The term ‘Nationwide Mort-
gage Licensing System and Registry’ has the same 
meaning as in the Secure and Fair Enforcement for 
Mortgage Licensing Act of 2008. 
‘‘(5) OTHER DEFINITIONS RELATING TO MORT-
GAGE
ORIGINATOR.—For purposes of this sub-
section, a person ‘assists a consumer in obtaining or 
applying to obtain a residential mortgage loan’ by, 
among other things, advising on residential mort-
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gage loan terms (including rates, fees, and other 
costs), preparing residential mortgage loan packages, 
or collecting information on behalf of the consumer 
with regard to a residential mortgage loan. 
‘‘(6) RESIDENTIAL
MORTGAGE
LOAN.—The 
term ‘residential mortgage loan’ means any con-
sumer credit transaction that is secured by a mort-
gage, deed of trust, or other equivalent consensual 
security interest on a dwelling or on residential real 
property that includes a dwelling, other than a con-
sumer credit transaction under an open end credit 
plan or, for purposes of sections 129B and 129C 
and section 128(a) (16), (17), and (18), and 128(f) 
and any regulations promulgated thereunder, an ex-
tension of credit relating to a plan described in sec-
tion 101(53D) of title 11, United States Code. 
‘‘(7) 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. 
‘‘(8) SECURITIZATION
VEHICLE.—The term 
‘securitization vehicle’ means a trust, corporation, 
partnership, limited liability entity, special purpose 
entity, or other structure that— 
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‘‘(A) is the issuer, or is created by the 
issuer, of mortgage pass-through certificates, 
participation certificates, mortgage-backed secu-
rities, or other similar securities backed by a 
pool of assets that includes residential mortgage 
loans; and 
‘‘(B) holds such loans. 
‘‘(9) SECURITIZER.—The term ‘securitizer’ 
means the person that transfers, conveys, or assigns, 
or causes the transfer, conveyance, or assignment of, 
residential mortgage loans, including through a spe-
cial purpose vehicle, to any securitization vehicle, ex-
cluding any trustee that holds such loans solely for 
the benefit of the securitization vehicle. 
‘‘(10) SERVICER.—The term ‘servicer’ has the 
same meaning as in section 6(i)(2) of the Real Es-
tate Settlement Procedures Act of 1974.’’. 
SEC. 9002. RESIDENTIAL MORTGAGE LOAN ORIGINATION. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
after section 129A the following new section: 
‘‘§ 129B. Residential mortgage loan origination 
‘‘(a) FINDING AND PURPOSE.— 
‘‘(1) FINDING.—The Congress finds that eco-
nomic stabilization would be enhanced by the protec-
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tion, limitation, and regulation of the terms of resi-
dential mortgage credit and the practices related to 
such credit, while ensuring that responsible, afford-
able mortgage credit remains available to consumers. 
‘‘(2) PURPOSE.—It is the purpose of this sec-
tion and section 129C to assure that consumers are 
offered and receive residential mortgage loans on 
terms that reasonably reflect their ability to repay 
the loans and that are understandable and not un-
fair, deceptive or abusive. 
‘‘(b) DUTY OF CARE.— 
‘‘(1) STANDARD.—Subject to regulations pre-
scribed under this subsection, each mortgage origi-
nator shall, in addition to the duties imposed by oth-
erwise applicable provisions of State or Federal 
law— 
‘‘(A) be qualified and, when required, reg-
istered 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; 
‘‘(B) with respect to each consumer seek-
ing or inquiring about a residential mortgage 
loan, diligently work to present the consumer 
with a range of residential mortgage loan prod-
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ucts for which the consumer likely qualifies and 
which are appropriate to the consumer’s exist-
ing circumstances, based on information known 
by, or obtained in good faith by, the originator; 
‘‘(C) make full, complete, and timely dis-
closure to each such consumer in writing, the 
receipt and understanding of which shall be ac-
knowledged by the signature of the mortgage 
originator and the consumer, of— 
‘‘(i) the comparative costs and bene-
fits of each residential mortgage loan prod-
uct offered, discussed, or referred to by the 
originator (and such comparative costs and 
benefits for each such product shall be pre-
sented side by side and the disclosures for 
each such product shall have equal promi-
nence); 
‘‘(ii) the nature of the originator’s re-
lationship to the consumer (including the 
cost of the services to be provided by the 
originator and a statement that the mort-
gage originator is or is not acting as an 
agent for the consumer, as the case may 
be); and 
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‘‘(iii) any relevant conflicts of interest 
between the originator and the consumer; 
‘‘(D) certify to the creditor, with respect to 
any transaction involving a residential mortgage 
loan, that the mortgage originator has fulfilled 
all requirements applicable to the originator 
under this section with respect to the trans-
action; and 
‘‘(E) include on all loan documents any 
unique identifier of the mortgage originator 
provided by the Nationwide Mortgage Licensing 
System and Registry. 
‘‘(2) CLARIFICATION OF EXTENT OF DUTY TO 
PRESENT RANGE OF PRODUCTS AND APPROPRIATE 
PRODUCTS.— 
‘‘(A) NO DUTY TO OFFER PRODUCTS FOR 
WHICH
ORIGINATOR
IS
NOT
AUTHORIZED
TO 
TAKE
AN
APPLICATION.—Paragraph (1)(B) 
shall not be construed as requiring— 
‘‘(i) a mortgage originator to present 
to any consumer any specific residential 
mortgage loan product that is offered by a 
creditor which does not accept consumer 
referrals from, or consumer applications 
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submitted by or through, such originator; 
or 
‘‘(ii) a creditor to offer products that 
the creditor does not offer to the general 
public. 
‘‘(B) APPROPRIATE LOAN PRODUCT.—For 
purposes of paragraph (1)(B), a residential 
mortgage loan shall be presumed to be appro-
priate for a consumer if— 
‘‘(i) the mortgage originator deter-
mines in good faith, based on then existing 
information and without undergoing a full 
underwriting process, that the consumer 
has a reasonable ability to repay and, in 
the case of a refinancing of an existing res-
idential mortgage loan, receives a net tan-
gible benefit, as determined in accordance 
with regulations prescribed under sub-
sections (a) and (b) of section 129C; and 
‘‘(ii) the loan does not have predatory 
characteristics or effects (such as equity 
stripping and excessive fees and abusive 
terms) as determined in accordance with 
regulations prescribed under paragraph 
(4). 
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‘‘(3) RULES OF CONSTRUCTION.—No provision 
of this subsection shall be construed as— 
‘‘(A) creating an agency or fiduciary rela-
tionship between a mortgage originator and a 
consumer if the originator does not hold himself 
or herself out as such an agent or fiduciary; or 
‘‘(B) restricting a mortgage originator 
from holding himself or herself out as an agent 
or fiduciary of a consumer subject to any addi-
tional duty, requirement, or limitation applica-
ble to agents or fiduciaries under any Federal 
or State law. 
‘‘(4) REGULATIONS.— 
‘‘(A) IN GENERAL.—The Federal banking 
agencies, in consultation with the Secretary, 
and the Commission, shall jointly prescribe reg-
ulations to— 
‘‘(i) further define the duty estab-
lished under paragraph (1); 
‘‘(ii) implement the requirements of 
this subsection; 
‘‘(iii) establish the time period within 
which any disclosure required under para-
graph (1) shall be made to the consumer; 
and 
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‘‘(iv) establish such other require-
ments for any mortgage originator as such 
regulatory agencies may determine to be 
appropriate to meet the purposes of this 
subsection. 
‘‘(B) COMPLEMENTARY AND NONDUPLICA-
TIVE DISCLOSURES.—The agencies referred to 
in subparagraph (A) shall endeavor to make the 
required disclosures to consumers under this 
subsection complementary and nonduplicative 
with other disclosures for mortgage consumers 
to the extent such efforts— 
‘‘(i) are practicable; and 
‘‘(ii) do not reduce the value of any 
such disclosure to recipients of such disclo-
sures. 
‘‘(5) COMPLIANCE PROCEDURES REQUIRED.— 
The Federal banking agencies shall prescribe regula-
tions requiring depository institutions to establish 
and maintain procedures reasonably designed to as-
sure and monitor the compliance of such depository 
institutions, the subsidiaries of such institutions, 
and the employees of such institutions or subsidi-
aries with the requirements of this section and the 
registration procedures established under section 
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1507 of the Secure and Fair Enforcement for Mort-
gage 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 fol-
lowing new items: 
‘‘129A. Fiduciary duty of servicers of pooled residential mortgages. 
‘‘129B. Residential mortgage loan origination.’’. 
SEC. 9003. PROHIBITION ON STEERING INCENTIVES. 
Section 129B of the Truth in Lending Act (as added 
by section 102(a)) is amended by inserting after sub-
section (b) the following new subsection: 
‘‘(c) PROHIBITION ON STEERING INCENTIVES.— 
‘‘(1) IN GENERAL.—For any mortgage loan, the 
total amount of direct and indirect compensation 
from all sources permitted to a mortgage originator 
may not vary based on the terms of the loan (other 
than the amount of the principal). 
‘‘(2) RESTRUCTURING OF FINANCING ORIGINA-
TION FEE.— 
‘‘(A) IN
GENERAL.—For any mortgage 
loan, a mortgage originator may not arrange 
for a consumer to finance through rate any 
origination fee or cost except bona fide third 
party settlement charges not retained by the 
creditor or mortgage originator. 
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‘‘(B) EXCEPTION.—Notwithstanding para-
graph subparagraph (A), a mortgage originator 
may arrange for a consumer to finance through 
rate an origination fee or cost if— 
‘‘(i) the mortgage originator does not 
receive any other compensation from the 
consumer except the compensation that is 
financed through rate; and 
‘‘(ii) the mortgage is a qualified mort-
gage. 
‘‘(3) REGULATIONS.—The Federal banking 
agencies, in consultation with the Secretary and the 
Commission, shall jointly 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 regula-
tions prescribed under section 129C(a)); 
‘‘(ii) in the case of a refinancing of a 
residential mortgage loan, does not provide 
the consumer with a net tangible benefit 
(in accordance with regulations prescribed 
under section 129C(b)); or 
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‘‘(iii) 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(c)(3)) 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; 
‘‘(D) mortgage originators from assessing 
excessive points and fees (as such term is de-
scribed under section 103(aa)(4) of the Truth 
in Lending Act (15 U.S.C. 1602(aa)(4))) to a 
consumer for the origination of a residential 
mortgage loan based on such consumer’s deci-
sion to finance all or part of the payment 
through the rate for such points and fees; and 
‘‘(E) mortgage originators from— 
‘‘(i) mischaracterizing the credit his-
tory of a consumer or the residential mort-
gage loans available to a consumer; 
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‘‘(ii) mischaracterizing or suborning 
the mischaracterization of the appraised 
value of the property securing the exten-
sion 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 con-
sumer from seeking a home mortgage loan 
secured by a consumer’s principal dwelling 
from another mortgage originator. 
‘‘(4) RULES OF CONSTRUCTION.—No provision 
of this subsection shall be construed as— 
‘‘(A) permitting any yield spread premium 
or other similar compensation that would, for 
any mortgage loan, permit the total amount of 
direct and indirect compensation from all 
sources permitted to a mortgage originator to 
vary based on the terms of the loan (other than 
the amount of the principal); 
‘‘(B) affecting the mechanism for pro-
viding the total amount of direct and indirect 
compensation permitted to a mortgage origi-
nator; 
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‘‘(C) limiting or affecting the amount of 
compensation received by a creditor upon the 
sale of a consummated loan to a subsequent 
purchaser; 
‘‘(D) restricting a consumer’s ability to fi-
nance, at the option of the consumer, including 
through principal or rate, any origination fees 
or costs permitted under this subsection, or the 
mortgage originator’s ability to receive such 
fees or costs (including compensation) from any 
person, so long as such fees or costs were lim-
ited by agreement with the consumer and were 
fully and clearly disclosed to the consumer ear-
lier in the application process as required by 
129B(b)(1)(C)(i) and 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 
‘‘(E) prohibiting incentive payments to a 
mortgage originator based on the number of 
residential mortgage loans originated within a 
specified period of time.’’. 
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SEC. 9004. LIABILITY. 
Section 129B of the Truth in Lending Act is amend-
ed by inserting after subsection (c) (as added by section 
103) the following new subsection: 
‘‘(d) LIABILITY FOR VIOLATIONS.— 
‘‘(1) IN GENERAL.—For purposes of providing 
a cause of action for any failure by a mortgage origi-
nator to comply with any requirement imposed 
under this section and any regulation prescribed 
under this section, subsections (a) and (b) of 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 sub-
section. 
‘‘(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 residen-
tial mortgage loan involved in the violation, plus the 
costs to the consumer of the action, including a rea-
sonable attorney’s fee.’’. 
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SEC. 9005. REGULATIONS. 
(a) DISCRETIONARY REGULATORY AUTHORITY.— 
Section 129B of the Truth in Lending Act is amended 
by inserting after subsection (d) (as added by section 104) 
the following new subsection: 
‘‘(e) DISCRETIONARY REGULATORY AUTHORITY.— 
‘‘(1) IN GENERAL.—The Federal banking agen-
cies shall, by regulations issued jointly, prohibit or 
condition terms, acts or practices relating to residen-
tial mortgage loans that the agencies find to be abu-
sive, unfair, deceptive, predatory, inconsistent with 
reasonable underwriting standards, necessary or 
proper to ensure that responsible, affordable mort-
gage credit remains available to consumers in a 
manner consistent with the purposes of this section 
and section 129B, necessary or proper to effectuate 
the purposes of this section and section 129C, to 
prevent circumvention or evasion thereof, or to facili-
tate compliance with such sections, or are not in the 
interest of the borrower. 
‘‘(2) APPLICATION.—The regulations prescribed 
under paragraph (1) shall be applicable to all resi-
dential mortgage loans and shall be applied in the 
same manner as regulations prescribed under section 
105. 
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‘‘(f) Section 129B and any regulations promulgated 
thereunder do not apply to an extension of credit relating 
to a plan described in section 101(53D) of title 11, United 
States Code.’’. 
(b) EFFECTIVE DATE.—The regulations required or 
authorized to be prescribed under this subtitle or the 
amendments made by this subtitle— 
(1) shall be prescribed in final form before the 
end of the 12-month period beginning on the date of 
the enactment of this Act; and 
(2) shall take effect not later than 18 months 
after the date of the enactment of this Act. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
Section 129(l)(2) of the Truth in Lending Act (15 U.S.C. 
1639(l)(2)) is amended by inserting ‘‘referred to in section 
103(aa)’’ after ‘‘loans’’ each place such term appears. 
SEC. 9006. STUDY OF SHARED APPRECIATION MORTGAGES. 
(a) STUDY.—The Secretary of Housing and Urban 
Development, in consultation with the Secretary of the 
Treasury and other relevant agencies, shall conduct a com-
prehensive study to determine prudent statutory and regu-
latory requirements sufficient to provide for the wide-
spread use of shared appreciation mortgages to strengthen 
local housing markets, provide new opportunities for af-
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fordable homeownership, and enable homeowners at risk 
of foreclosure to refinance or modify their mortgages. 
(b) REPORT.—Not later than the expiration of the 
6-month period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Develop-
ment shall submit a report to the Congress on the results 
of the study, which shall include recommendations for the 
regulatory and legislative requirements referred to in sub-
section (a). 
Subtitle B—Minimum Standards 
For Mortgages 
SEC. 9101. ABILITY TO REPAY. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
after section 129B (as added by section 102(a)) the fol-
lowing new section: 
‘‘§ 129C. Minimum standards for residential mortgage 
loans 
‘‘(a) ABILITY TO REPAY.— 
‘‘(1) IN GENERAL.—In accordance with regula-
tions prescribed jointly by the Federal banking agen-
cies, in consultation with the Commission, no cred-
itor may make a residential mortgage loan unless 
the creditor makes a reasonable and good faith de-
termination based on verified and documented infor-
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mation that, at the time the loan is consummated, 
the consumer has a reasonable ability to repay the 
loan, according to its terms, and all applicable taxes, 
insurance, and assessments. 
‘‘(2) MULTIPLE LOANS.—If the creditor knows, 
or has reason to know, that 1 or more residential 
mortgage loans secured by the same dwelling will be 
made to the same consumer, the creditor shall make 
a reasonable and good faith determination, based on 
verified and documented information, that the con-
sumer has a reasonable ability to repay the com-
bined payments of all loans on the same dwelling ac-
cording to the terms of those loans and all applicable 
taxes, insurance, and assessments. 
‘‘(3) BASIS
FOR
DETERMINATION.—A deter-
mination under this subsection of a consumer’s abil-
ity to repay a residential mortgage loan shall include 
consideration of the consumer’s credit history, cur-
rent income, expected income the consumer is rea-
sonably assured of receiving, current obligations, 
debt-to-income ratio, employment status, and other 
financial resources other than the consumer’s equity 
in the dwelling or real property that secures repay-
ment of the loan. 
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‘‘(4) INCOME VERIFICATION.—In order to safe-
guard against fraudulent reporting, any consider-
ation of a consumer’s income history in making a 
determination under this subsection shall include the 
verification of such income by the use of— 
‘‘(A) Internal Revenue Service transcripts 
of tax returns provided by a third party; or 
‘‘(B) such other similar method that quick-
ly and effectively verifies income documentation 
by a third party as the Federal banking agen-
cies may jointly prescribe. 
‘‘(5) NONSTANDARD LOANS.— 
‘‘(A) VARIABLE RATE LOANS THAT DEFER 
REPAYMENT
OF
ANY
PRINCIPAL
OR
INTER-
EST.—For purposes of determining, under this 
subsection, a consumer’s ability to repay a vari-
able rate residential mortgage loan that allows 
or requires the consumer to defer the repay-
ment of any principal or interest, the creditor 
shall use a fully amortizing repayment schedule. 
‘‘(B) INTEREST-ONLY
LOANS.—For pur-
poses of determining, under this subsection, a 
consumer’s ability to repay a residential mort-
gage loan that permits or requires the payment 
of interest only, the creditor shall use the pay-
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ment amount required to amortize the loan by 
its final maturity. 
‘‘(C) CALCULATION FOR NEGATIVE AMOR-
TIZATION.—In making any determination under 
this subsection, a creditor shall also take into 
consideration any balance increase that may ac-
crue from any negative amortization provision. 
‘‘(D) CALCULATION
PROCESS.—For pur-
poses of making any determination under this 
subsection, a creditor shall calculate the month-
ly payment amount for principal and interest on 
any residential mortgage loan by assuming— 
‘‘(i) the loan proceeds are fully dis-
bursed on the date of the consummation of 
the loan; 
‘‘(ii) the loan is to be repaid in sub-
stantially equal monthly amortizing pay-
ments for principal and interest over the 
entire term of the loan with no balloon 
payment, unless the loan contract requires 
more rapid repayment (including balloon 
payment), in which case the calculation 
shall be made (I) in accordance with regu-
lations prescribed by the Federal banking 
agencies, with respect to any loan which 
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has an annual percentage rate that does 
not exceed the average prime offer rate for 
a comparable transaction, as of the date 
the interest rate is set, by 1.5 or more per-
centage points for a first lien residential 
mortgage loan; and by 3.5 or more per-
centage points for a subordinate lien resi-
dential mortgage loan; or (II) using the 
contract’s repayment schedule, with re-
spect to a loan which has an annual per-
centage rate, as of the date the interest 
rate is set, that is at least 1.5 percentage 
points above the average prime offer rate 
for a first lien residential mortgage loan; 
and 3.5 percentage points above the aver-
age prime offer rate for a subordinate lien 
residential mortgage loan; and 
‘‘(iii) the interest rate over the entire 
term of the loan is a fixed rate equal to the 
fully indexed rate at the time of the loan 
closing, without considering the introduc-
tory rate. 
‘‘(E) REFINANCE OF HYBRID LOANS WITH 
CURRENT LENDER.—In considering any appli-
cation for refinancing an existing hybrid loan 
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by the creditor into a standard loan to be made 
by the same creditor in any case in which the 
sole net-tangible benefit to the mortgagor would 
be a reduction in monthly payment and the 
mortgagor has not been delinquent on any pay-
ment on the existing hybrid loan, the creditor 
may— 
‘‘(i) consider the mortgagor’s good 
standing on the existing mortgage; 
‘‘(ii) consider if the extension of new 
credit would prevent a likely default should 
the original mortgage reset and give such 
concerns a higher priority as an acceptable 
underwriting practice; and 
‘‘(iii) offer rate discounts and other 
favorable terms to such mortgagor that 
would be available to new customers with 
high credit ratings based on such under-
writing practice. 
‘‘(6) FULLY-INDEXED
RATE
DEFINED.—For 
purposes of this subsection, the term ‘fully indexed 
rate’ means the index rate prevailing on a residential 
mortgage loan at the time the loan is made plus the 
margin that will apply after the expiration of any in-
troductory interest rates. 
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‘‘(7) REVERSE
MORTGAGES.—This subsection 
shall not apply with respect to any reverse mort-
gage’’. 
(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 129B (as 
added by section 102(b)) the following new item: 
‘‘129C. Minimum standards for residential mortgage loans.’’. 
SEC. 9102. NET TANGIBLE BENEFIT FOR REFINANCING OF 
RESIDENTIAL MORTGAGE LOANS. 
Section 129C of the Truth in Lending Act (as added 
by section 9101(a)) is amended by inserting after sub-
section (a) the following new subsection: 
‘‘(b) NET TANGIBLE BENEFIT FOR REFINANCING OF 
RESIDENTIAL MORTGAGE LOANS.— 
‘‘(1) IN GENERAL.—In accordance with regula-
tions prescribed under paragraph (3), no creditor 
may extend credit in connection with any residential 
mortgage loan that involves a refinancing of a prior 
existing residential mortgage loan unless the creditor 
reasonably and in good faith determines, at the time 
the loan is consummated and on the basis of infor-
mation known by or obtained in good faith by the 
creditor, that the refinanced loan will provide a net 
tangible benefit to the consumer. 
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‘‘(2) CERTAIN LOANS PROVIDING NO NET TAN-
GIBLE BENEFIT.—A residential mortgage loan that 
involves a refinancing of a prior existing residential 
mortgage loan shall not be considered to provide a 
net tangible benefit to the consumer if the costs of 
the refinanced loan, including points, fees and other 
charges, exceed the amount of any newly advanced 
principal without any corresponding changes in the 
terms of the refinanced loan that are advantageous 
to the consumer. 
‘‘(3) NET
TANGIBLE
BENEFIT.—The Federal 
banking agencies shall jointly prescribe regulations 
defining the term ‘net tangible benefit’ for purposes 
of this subsection.’’. 
SEC. 9103. SAFE HARBOR AND REBUTTABLE PRESUMPTION. 
Section 129C of the Truth in Lending Act is amend-
ed by inserting after subsection (b) (as added by section 
9102) the following new subsection: 
‘‘(c) PRESUMPTION OF ABILITY TO REPAY AND NET 
TANGIBLE BENEFIT.— 
‘‘(1) IN GENERAL.—Any creditor with respect 
to any residential mortgage loan, and any assignee 
or securitizer of such loan, may presume that the 
loan has met the requirements of subsections (a) 
and (b), if the loan is a qualified mortgage. 
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‘‘(2) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
‘‘(A) QUALIFIED
MORTGAGE.—The term 
‘qualified mortgage’ means any residential 
mortgage loan— 
‘‘(i) that does not allow a consumer to 
defer repayment of principal or interest, or 
is not otherwise deemed a ‘non-traditional 
mortgage’ under guidance, advisories, or 
regulations prescribed by the Federal 
Banking Agencies; 
‘‘(ii) that does not provide for a re-
payment schedule that results in negative 
amortization at any time; 
‘‘(iii) for which the terms are fully 
amortizing and which does not result in a 
balloon payment, where a ‘balloon pay-
ment’ is a scheduled payment that is more 
than twice as large as the average of ear-
lier scheduled payments; 
‘‘(iv) which has an annual percentage 
rate that does not exceed the average 
prime offer rate for a comparable trans-
action, as of the date the interest rate is 
set— 
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‘‘(I) by 1.5 or more percentage 
points, in the case of a first lien resi-
dential mortgage loan having a 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 mortgage in 
effect for a residence of the applicable 
size, as of the date of such interest 
rate set, pursuant to the sixth sen-
tence of section 305(a)(2) the Federal 
Home Loan Mortgage Corporation 
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 a origi-
nal principal obligation amount that is 
more than the amount of the max-
imum limitation on the original prin-
cipal obligation of mortgage in effect 
for a residence of the applicable size, 
as of the date of such interest rate 
set, pursuant to the sixth sentence of 
section 305(a)(2) the Federal Home 
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Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)); and 
‘‘(III) by 3.5 or more percentage 
points, in the case of a subordinate 
lien residential mortgage loan; 
‘‘(v) for which the income and finan-
cial resources relied upon to qualify the ob-
ligors on the loan are verified and docu-
mented; 
‘‘(vi) in the case of a fixed rate loan, 
for which the underwriting process 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; 
‘‘(vii) in the case of an adjustable rate 
loan, for which the underwriting is based 
on the maximum rate permitted under the 
loan during the first seven years, and a 
payment schedule that fully amortizes the 
loan over the loan term and takes into ac-
count all applicable taxes, insurance, and 
assessments; 
‘‘(viii) that does not cause the con-
sumer’s total monthly debts, including 
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amounts under the loan, to exceed a per-
centage established by regulation of the 
consumer’s monthly gross income or such 
other maximum percentage of such income 
as may be prescribed by regulation under 
paragraph (4), and such rules shall also 
take into consideration the consumer’s in-
come available to pay regular expenses 
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 ‘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 paragraph 
(4). 
‘‘(B) AVERAGE PRIME OFFER RATE.—The 
term ‘average prime offer rate’ means an an-
nual percentage rate that is derived from aver-
age interest rates, points, and other loan pric-
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ing terms currently offered to consumers by a 
representative sample of creditors for mortgage 
transactions that have low risk pricing charac-
teristics. 
‘‘(C) REVERSE
MORTGAGES.—For pur-
poses of this subsection, the term ‘qualified 
mortgage’ includes any reverse mortgage that is 
insured by the Federal Housing Administration 
or complies with the condition established in 
subparagraph (A)(iv). 
‘‘(3) PUBLICATION OF AVERAGE PRIME OFFER 
RATE AND APR THRESHOLDS.—The Board— 
‘‘(A) shall publish, and update at least 
weekly, average prime offer rates; 
‘‘(B) may publish multiple rates based on 
varying types of mortgage transactions; and 
‘‘(C) shall adjust the thresholds of 1.50 
percentage points in paragraph (2)(A)(iv)(I), 
2.50 
percentage 
points 
in 
paragraph 
(2)(A)(iv)(II), and 3.50 percentage points in 
paragraph (2)(A)(v)(III), as necessary to reflect 
significant changes in market conditions and to 
effectuate the purposes of the Mortgage Reform 
and Anti-Predatory Lending Act. 
‘‘(4) REGULATIONS.— 
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‘‘(A) IN GENERAL.—The Federal banking 
agencies shall jointly prescribe regulations to 
carry out the purposes of this subsection. 
‘‘(B) REVISION
OF
SAFE
HARBOR
CRI-
TERIA.— 
‘‘(i) IN GENERAL.—The Federal bank-
ing agencies may jointly prescribe regula-
tions that revise, add to, or subtract from 
the criteria that define a qualified mort-
gage upon a finding that such regulations 
are necessary or proper to ensure that re-
sponsible, affordable mortgage credit re-
mains available to consumers in a manner 
consistent with the purposes of this sec-
tion, necessary and appropriate to effec-
tuate the purposes of this section and sec-
tion 129B, to prevent circumvention or 
evasion thereof, or to facilitate compliance 
with such sections. 
‘‘(ii) LOAN
DEFINITION.—The fol-
lowing agencies shall, in consultation with 
the Federal banking agencies, prescribe 
rules defining the types of loans they in-
sure, guarantee or administer, as the case 
may be, that are Qualified Mortgages for 
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purposes of subsection (c)(1)(A) upon a 
finding that such rules are consistent with 
the purposes of this section and section 
129B, to prevent circumvention or evasion 
thereof, or to facilitate compliance with 
such sections— 
‘‘(I) The Department of Housing 
and Urban Development, with regard 
to mortgages insured under title II of 
the National Housing Act (12 U.S.C. 
1707 et seq.); 
‘‘(II) The Secretary of Veterans 
Affairs, with regard to a loan made or 
guaranteed by the Secretary of Vet-
erans Affairs; 
‘‘(III) The Secretary of Agri-
culture, with regard loans guaranteed 
by the Secretary of Agriculture pursu-
ant to 42 U.S.C. 1472(h); 
‘‘(IV) The Federal Housing Fi-
nance Agency, with regard to loans 
meeting the conforming loan stand-
ards of the Federal National Mort-
gage Corporation or the Federal 
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Home Loan Mortgage Corporation; 
and 
‘‘(V) The Rural Housing Service, 
with regard to loans insured by the 
Rural Housing Service.’’. 
SEC. 9104. LIABILITY. 
Section 129C of the Truth in Lending Act is amend-
ed by inserting after subsection (c) (as added by section 
9103) the following new subsection: 
‘‘(d) LIABILITY FOR VIOLATIONS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) RESCISSION.—In addition to any 
other liability under this title for a violation by 
a creditor of subsection (a) or (b) (for example 
under section 130) and subject to the statute of 
limitations in paragraph (9), a civil action may 
be maintained against a creditor for a violation 
of subsection (a) or (b) with respect to a resi-
dential mortgage loan for the rescission of the 
loan, and such additional costs as the obligor 
may have incurred as a result of the violation 
and in connection with obtaining a rescission of 
the loan, including a reasonable attorney’s fee. 
‘‘(B) CURE.—A creditor shall not be liable 
for rescission under subparagraph (A) with re-
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spect to a residential mortgage loan if, no later 
than 90 days after the receipt of notification 
from the consumer that the loan violates sub-
section (a) or (b), the creditor, acting in good 
faith, a cure. 
‘‘(2) LIMITED ASSIGNEE AND SECURITIZER LI-
ABILITY.—Notwithstanding sections 125(e) and 131 
and except as provided in paragraph (3), a civil ac-
tion which may be maintained against a creditor 
with respect to a residential mortgage loan for a vio-
lation of subsection (a) or (b) may be maintained 
against any assignee or securitizer of such residen-
tial mortgage loan, who has acted in good faith, for 
the following liabilities only: 
‘‘(A) Rescission of the loan. 
‘‘(B) Such additional costs as the obligor 
may have incurred as a result of the violation 
and in connection with obtaining a rescission of 
the loan, including a reasonable attorney’s fee. 
‘‘(3) ASSIGNEE
AND
SECURITIZER
EXEMP-
TION.—No assignee or securitizer of a residential 
mortgage loan that has exercised reasonable due dili-
gence in complying with the requirements of sub-
sections (a) and (b), consistent with reasonable due 
diligence practices prescribed by the Federal banking 
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agencies, shall be liable under paragraph (2) with re-
spect to such loan if, no later than 90 days after the 
receipt of notification from the consumer that the 
loan violates subsection (a) or (b), the assignee or 
securitizer provides a cure so that the loan satisfies 
the requirements of subsections (a) and (b). 
‘‘(4) ABSENT PARTIES.— 
‘‘(A) 
ABSENT
CREDITOR.—Notwith-
standing the exemption provided in paragraph 
(3), if the creditor with respect to a residential 
mortgage loan made in violation of subsection 
(a) or (b) has ceased to exist as a matter of law 
or has filed for bankruptcy protection under 
title 11, United States Code, or has had a re-
ceiver, conservator, or liquidating agent ap-
pointed, a consumer may maintain a civil action 
against an assignee to cure the residential 
mortgage loan, plus the costs and reasonable 
attorney’s fees incurred in obtaining such rem-
edy. 
‘‘(B) ABSENT CREDITOR AND ASSIGNEE.— 
Notwithstanding the exemption provided in 
paragraph (3), if the creditor with respect to a 
residential mortgage loan made in violation of 
subsection (a) or (b) and each assignee of such 
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loan have ceased to exist as a matter of law or 
have filed for bankruptcy protection under title 
11, United States Code, or have had receivers, 
conservators, or liquidating agents appointed, 
the consumer may maintain the civil action re-
ferred to in subparagraph (A) against the 
securitizer. 
‘‘(5) CURE
DEFINED.—For purposes of this 
subsection, the term ‘cure’ means, with respect to a 
residential mortgage loan that violates subsection (a) 
or (b), the modification or refinancing, at no cost to 
the consumer, of the loan to provide terms that sat-
isfy the requirements of subsections (a) and (b) and 
the payment of such additional costs as the obligor 
may have incurred in connection with obtaining a 
cure of the loan, including a reasonable attorney’s 
fee. 
‘‘(6) DISAGREEMENT OVER CURE.—If any cred-
itor, assignee, or securitizer and a consumer fail to 
reach agreement on a cure with respect to a residen-
tial mortgage loan that violates subsection (a) or (b), 
or the consumer fails to accept a cure proffered by 
a creditor, assignee, or securitizer— 
‘‘(A) the creditor, assignee, or securitizer 
may provide the cure; and 
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‘‘(B) the consumer may challenge the ade-
quacy of the cure during the 6-month period be-
ginning when the cure is provided. 
If the consumer’s challenge, under this paragraph, 
of a cure is successful, the creditor, assignee, or 
securitizer shall be liable to the consumer for rescis-
sion of the loan and such additional costs under 
paragraph (2). 
‘‘(7) INABILITY TO PROVIDE OR OBTAIN RE-
SCISSION.—If a creditor, assignee, or securitizer 
cannot provide, or a consumer cannot obtain, rescis-
sion under paragraph (1) or (2), the liability of such 
creditor, assignee, or securitizer shall be met by pro-
viding the financial equivalent of a rescission, to-
gether with such additional costs as the obligor may 
have incurred as a result of the violation and in con-
nection with obtaining a rescission of the loan, in-
cluding a reasonable attorney’s fee. 
‘‘(8) NO CLASS ACTIONS AGAINST ASSIGNEE OR 
SECURITIZER
UNDER
PARAGRAPH (2).—Only indi-
vidual actions may be brought against an assignee 
or securitizer of a residential mortgage loan for a 
violation of subsection (a) or (b). 
‘‘(9) STATUTE OF LIMITATIONS.—The liability 
of a creditor, assignee, or securitizer under this sub-
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section shall apply in any original action against a 
creditor under paragraph (1) or an assignee or 
securitizer under paragraph (2) which is brought be-
fore— 
‘‘(A) in the case of any residential mort-
gage loan other than a loan to which subpara-
graph (B) applies, the end of the 3-year period 
beginning on the date the loan is consummated; 
or 
‘‘(B) in the case of a residential mortgage 
loan that provides for a fixed interest rate for 
an introductory period and then resets or ad-
justs to a variable rate or that provides for a 
nonamortizing payment schedule and then con-
verts to an amortizing payment schedule, the 
earlier of— 
‘‘(i) the end of the 1-year period be-
ginning on the date of such reset, adjust-
ment, or conversion; or 
‘‘(ii) the end of the 6-year period be-
ginning on the date the loan is con-
summated. 
‘‘(10) TRUSTEES, POOLS, AND INVESTORS IN 
POOLS EXCLUDED.—In the case of residential mort-
gage loans acquired or aggregated for the purpose of 
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including such loans in a pool of assets held for the 
purpose of issuing or selling instruments rep-
resenting interests in such pools including through a 
securitization vehicle, the terms ‘assignee’ and 
‘securitizer’, as used in this section, do not include 
the securitization vehicle, any trustee that holds 
such loans solely for the benefit of the securitization 
vehicle, the pools of such loans or any original or 
subsequent purchaser of any interest in the 
securitization vehicle or any instrument representing 
a direct or indirect interest in such pool. 
‘‘(e) OBLIGATION OF SECURITIZERS, AND PRESERVA-
TION OF BORROWER REMEDIES.— 
‘‘(1) OBLIGATION
TO
RETAIN
ACCESS.—Any 
securitizer of a residential mortgage loan sold or to 
be sold as part of a securitization vehicle shall, in 
any document or contract providing for the transfer, 
conveyance, 
or 
the 
establishment 
of 
such 
securitization vehicle, reserve the right and preserve 
the ability— 
‘‘(A) to identify and obtain access to any 
such loan; 
‘‘(B) to acquire any such loan in the event 
of a violation of subsection (a) or (b) of this 
section; and 
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‘‘(C) to provide to the consumer any and 
all remedies provided for under this title for 
any violation of this title. 
‘‘(2) ADDITIONAL DAMAGES.—Any creditor, as-
signee, or securitizer of a residential mortgage loan 
that is subject to a remedy under subsection (d) and 
has failed to comply with paragraph (1) shall be 
subject to additional exemplary or punitive damages 
not to exceed the original principal balance of such 
loan. 
‘‘(3) CONTACT
INFORMATION
NOTICE.—The 
servicer with respect to a residential mortgage loan 
shall provide a written notice to a consumer identi-
fying the name and contact information of the cred-
itor or any assignee or securitizer who should be 
contacted by the consumer for any reason con-
cerning the consumer’s rights with respect to the 
loan. Such notice shall be provided— 
‘‘(A) upon request of the consumer; 
‘‘(B) whenever there is a change in owner-
ship of a residential mortgage loan; or 
‘‘(C) on a regular basis, not less than an-
nually. 
‘‘(f) RULES TO ESTABLISH PROCESS.—The Board 
shall promulgate rules to govern the rescission process es-
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tablished for violations of subsections (a) and (b) of this 
section. Such rules shall provide that notice given to a 
servicer or holder is sufficient notice regardless of the 
identity of the party or the parties liable under this title.’’. 
SEC. 9105. DEFENSE TO FORECLOSURE. 
Section 129C of the Truth in Lending Act is amend-
ed by inserting after subsection (f) (as added by section 
9104) the following new subsections: 
‘‘(g) DEFENSE TO FORECLOSURE.—Notwithstanding 
any other provision of law— 
‘‘(1) when the holder of a residential mortgage 
loan or anyone acting for such holder initiates a ju-
dicial or nonjudicial foreclosure— 
‘‘(A) a consumer who has the right to re-
scind under this section with respect to such 
loan against the creditor or any assignee or 
securitizer may assert such right as a defense 
to foreclosure or counterclaim to such fore-
closure against the holder, or 
‘‘(B) if the foreclosure proceeding begins 
after the end of the period during which a con-
sumer may bring an action for rescission under 
subsection (d) and the consumer would have 
had a valid basis for such an action if it had 
been brought before the end of such period, the 
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consumer may seek actual damages incurred by 
reason of the violation which gave rise to the 
right of rescission, together with costs of the 
action, including a reasonable attorney’s fee 
against the creditor or any assignee or 
securitizer; and 
‘‘(2) such holder or anyone acting for such 
holder or any other applicable third party may sell, 
transfer, convey, or assign a residential mortgage 
loan to a creditor, any assignee, or any securitizer, 
or their designees, subject to the rights of the con-
sumer described in this subsection, to effect a rescis-
sion or cure.’’. 
SEC. 9106. ADDITIONAL STANDARDS AND REQUIREMENTS. 
(a) IN GENERAL.—Section 129C of the Truth in 
Lending Act is amended by inserting after subsection (g) 
(as added by section 9105) the following new subsections: 
‘‘(h) PROHIBITION ON CERTAIN PREPAYMENT PEN-
ALTIES.— 
‘‘(1) PROHIBITED ON CERTAIN LOANS.—A resi-
dential mortgage loan that is not a ‘qualified mort-
gage’ may not contain terms under which a con-
sumer must pay a prepayment penalty for paying all 
or part of the principal after the loan is con-
summated. For purposes of this subsection, a ‘quali-
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fied mortgage’ may not include a residential mort-
gage loan that has an adjustable rate. 
‘‘(2) PHASED-OUT
PENALTIES
ON
QUALIFIED 
MORTGAGES.—A qualified mortgage (as defined in 
subsection (c)) may not contain terms under which 
a consumer must pay a prepayment penalty for pay-
ing all or part of the principal after the loan is con-
summated in excess of the following limitations: 
‘‘(A) During the 1-year period beginning 
on the date the loan is consummated, the pre-
payment penalty shall not exceed an amount 
equal to 3 percent of the outstanding balance 
on the loan. 
‘‘(B) During the 1-year period beginning 
after the period described in subparagraph (A), 
the prepayment penalty shall not exceed an 
amount equal to 2 percent of the outstanding 
balance on the loan. 
‘‘(C) During the 1-year period beginning 
after the 1-year period described in subpara-
graph (B), the prepayment penalty shall not ex-
ceed an amount equal to 1 percent of the out-
standing balance on the loan. 
‘‘(D) After the end of the 3-year period be-
ginning on the date the loan is consummated, 
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no prepayment penalty may be imposed on a 
qualified mortgage. 
‘‘(3) OPTION FOR NO PREPAYMENT PENALTY 
REQUIRED.—A creditor may not offer a consumer a 
residential mortgage loan product that has a prepay-
ment penalty for paying all or part of the principal 
after the loan is consummated as a term of the loan 
without offering the consumer a residential mort-
gage loan product that does not have a prepayment 
penalty as a term of the loan. 
‘‘(i) SINGLE PREMIUM CREDIT INSURANCE PROHIB-
ITED.—No creditor may finance, directly or indirectly, in 
connection with any residential mortgage loan or with any 
extension of credit under an open end consumer credit 
plan secured by the principal dwelling of the consumer 
(other than a reverse mortgage), any credit life, credit dis-
ability, credit unemployment or credit property insurance, 
or any other accident, loss-of-income, life or health insur-
ance, or any payments directly or indirectly for any debt 
cancellation or suspension agreement or contract, except 
that— 
‘‘(1) insurance premiums or debt cancellation or 
suspension fees calculated and paid in full on a 
monthly basis shall not be considered financed by 
the creditor; and 
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‘‘(2) this subsection shall not apply to credit 
unemployment insurance for which the unemploy-
ment insurance premiums are reasonable, the cred-
itor receives no direct or indirect compensation in 
connection with the unemployment insurance pre-
miums, and the unemployment insurance premiums 
are paid pursuant to another insurance contract and 
not paid to an affiliate of the creditor. 
‘‘(j) ARBITRATION.— 
‘‘(1) IN
GENERAL.—No residential mortgage 
loan and no extension of credit under an open end 
consumer credit plan secured by the principal dwell-
ing of the consumer, other than a reverse mortgage, 
may include terms which require arbitration or any 
other nonjudicial procedure as the method for resolv-
ing any controversy or settling any claims arising 
out of the transaction. 
‘‘(2) POST-CONTROVERSY AGREEMENTS.—Sub-
ject to paragraph (3), paragraph (1) shall not be 
construed as limiting the right of the consumer and 
the creditor, any assignee, or any securitizer to 
agree to arbitration or any other nonjudicial proce-
dure as the method for resolving any controversy at 
any time after a dispute or claim under the trans-
action arises. 
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‘‘(3) NO WAIVER OF STATUTORY CAUSE OF AC-
TION.—No provision of any residential mortgage 
loan or of any extension of credit under an open end 
consumer credit plan secured by the principal dwell-
ing of the consumer (other than a reverse mort-
gage), and no other agreement between the con-
sumer and the creditor relating to the residential 
mortgage loan or extension of credit referred to in 
paragraph (1), shall be applied or interpreted so as 
to bar a consumer from bringing an action in an ap-
propriate district court of the United States, or any 
other court of competent jurisdiction, pursuant to 
section 130 or any other provision of law, for dam-
ages or other relief in connection with any alleged 
violation of this section, any other provision of this 
title, or any other Federal law. 
‘‘(k) MORTGAGES
WITH
NEGATIVE
AMORTIZA-
TION.—No creditor may extend credit to a borrower in 
connection with a consumer credit transaction under an 
open or closed end consumer credit plan secured by a 
dwelling or residential real property that includes a dwell-
ing, other than a reverse mortgage, that provides or per-
mits a payment plan that may, at any time over the term 
of the extension of credit, result in negative amortization 
unless, before such transaction is consummated— 
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‘‘(1) the creditor provides the consumer with a 
statement that— 
‘‘(A) the pending transaction will or may, 
as the case may be, result in negative amortiza-
tion; 
‘‘(B) describes negative amortization in 
such manner as the Federal banking agencies 
shall prescribe; 
‘‘(C) negative amortization increases the 
outstanding principal balance of the account; 
and 
‘‘(D) negative amortization reduces the 
consumer’s equity in the dwelling or real prop-
erty; and 
‘‘(2) in the case of a first-time borrower with 
respect to a residential mortgage loan that is not a 
qualified mortgage, the first-time borrower provides 
the creditor with sufficient documentation to dem-
onstrate that the consumer received homeownership 
counseling from organizations or counselors certified 
by the Secretary of Housing and Urban Develop-
ment as competent to provide such counseling.’’. 
(b) CONFORMING AMENDMENT RELATING TO EN-
FORCEMENT.—Section 108(a) of the Truth in Lending 
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Act (15 U.S.C. 1607(a)) is amended by inserting after 
paragraph (6) the following new paragraph: 
‘‘(7) sections 21B and 21C of the Securities 
Exchange Act of 1934, in the case of a broker or 
dealer, other than a depository institution, by the 
Securities and Exchange Commission.’’. 
(c) PROTECTION AGAINST LOSS
OF ANTI-DEFI-
CIENCY PROTECTION.—Section 129C of the Truth in 
Lending Act is amended by inserting after subsection (k) 
(as added by subsection (a) of this section) the following 
new subsection (and designated succeeding subsections ac-
cordingly): 
‘‘(l) PROTECTION AGAINST LOSS
OF ANTI-DEFI-
CIENCY PROTECTION.— 
‘‘(1) DEFINITION.—For purposes of this sub-
section, the term ‘anti-deficiency law’ means the law 
of any State which provides that, in the event of 
foreclosure on the residential property of a consumer 
securing a mortgage, the consumer is not liable, in 
accordance with the terms and limitations of such 
State law, for any deficiency between the sale price 
obtained on such property through foreclosure and 
the outstanding balance of the mortgage. 
‘‘(2) NOTICE AT TIME OF CONSUMMATION.—In 
the case of any residential mortgage loan that is, or 
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upon consummation will be, subject to protection 
under an anti-deficiency law, the creditor or mort-
gage originator shall provide a written notice to the 
consumer describing the protection provided by the 
anti-deficiency law and the significance for the con-
sumer of the loss of such protection before such loan 
is consummated. 
‘‘(3) NOTICE
BEFORE
REFINANCING
THAT 
WOULD CAUSE LOSS OF PROTECTION.—In the case 
of any residential mortgage loan that is subject to 
protection under an anti-deficiency law, if a creditor 
or mortgage originator provides an application to a 
consumer, or receives an application from a con-
sumer, for any type of refinancing for such loan that 
would cause the loan to lose the protection of such 
anti-deficiency law, the creditor or mortgage origi-
nator shall provide a written notice to the consumer 
describing the protection provided by the anti-defi-
ciency law and the significance for the consumer of 
the loss of such protection before any agreement for 
any such refinancing is consummated.’’. 
(d) POLICY REGARDING ACCEPTANCE OF PARTIAL 
PAYMENT.—Section 129C of the Truth in Lending Act 
is amended by inserting after subsection (l) (as added by 
subsection (c)) the following new subsection: 
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‘‘(m) POLICY REGARDING ACCEPTANCE OF PARTIAL 
PAYMENT.—In the case of any residential mortgage loan, 
a creditor shall disclose prior to settlement or, in the case 
of a person becoming a creditor with respect to an existing 
residential mortgage loan, at the time such person be-
comes a creditor— 
‘‘(1) the creditor’s policy regarding the accept-
ance of partial payments; and 
‘‘(2) if partial payments are accepted, how such 
payments will be applied to such mortgage and if 
such payments will be placed in escrow.’’. 
SEC. 9107. RULE OF CONSTRUCTION. 
Except as otherwise expressly provided in section 
129B or 129C of the Truth in Lending Act (as added by 
this subtitle), no provision of such section 129B or 129C 
shall be construed as superseding, repealing, or affecting 
any duty, right, obligation, privilege, or remedy of any per-
son under any other provision of the Truth in Lending 
Act or any other provision of Federal or State law. 
SEC. 9108. EFFECT ON STATE LAWS. 
(a) IN GENERAL.—Except as provided in subsection 
(b), section 129C(d) of the Truth in Lending Act (as 
added by section 9104) shall supersede any State law to 
the extent that it provides additional remedies against any 
assignee, securitizer, or securitization vehicle for a viola-
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tion of subsection (a) or (b) of section 129C of such Act 
or any other State law the terms of which address the 
specific subject matter of subsection (a) (determination of 
ability to repay) or (b) (requirement of a net tangible ben-
efit) of section 129C of such Act, and the remedies de-
scribed in section 129C(d) shall constitute the sole rem-
edies against any assignee, securitizer, or securitization 
vehicle for such violations. 
(b) RULES OF CONSTRUCTION.—No provision of this 
section shall be construed as limiting— 
(1) the application of any State law, or the 
availability of remedies under such law, against a 
creditor for a particular residential mortgage loan 
regardless of whether such creditor also acts as an 
assignee, securitizer, or securitization vehicle for 
such loan; 
(2) the application of any State law, or the 
availability of remedies under such law, against an 
assignee, securitizer, or securitization vehicle under 
State law, other than a provision of such law the 
terms of which address the specific subject matter of 
subsection (a) (determination of ability to repay) or 
(b) (requirement of a net tangible benefit) of section 
129C of such Act; 
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(3)(A) the application of any State law, or the 
availability of remedies under such law, against an 
assignee, securitizer or securitization vehicle for its 
participation in or direction of the credit or under-
writing decisions of a creditor relating to the making 
of a residential mortgage loan; or 
(B) the ability of a consumer to assert any 
rights against or obtain any remedies from an as-
signee, securitizer or securitization vehicle with re-
spect to a residential mortgage loan as a defense to 
foreclosure under section 129C(g); 
(4) the availability of any equitable remedies, 
including injunctive relief, under State law; or 
(5) notwithstanding paragraph (2), the avail-
ability of any remedies under State law against any 
assignee, securitizer or securitization vehicle that— 
(A) are in addition to those remedies pro-
vided for in section 129C; and 
(B) were in effect on the date of enactment 
of this Act. 
SEC. 9109. REGULATIONS. 
Regulations required or authorized to be prescribed 
under this subtitle or the amendments made by this sub-
title— 
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(1) shall be prescribed in final form before the 
end of the 12-month period beginning on the date of 
the enactment of this Act; and 
(2) shall take effect not later than 18 months 
after the date of the enactment of this Act. 
SEC. 9110. AMENDMENTS TO CIVIL LIABILITY PROVISIONS. 
(a) INCREASE IN AMOUNT OF CIVIL MONEY PEN-
ALTIES FOR CERTAIN VIOLATIONS.—Section 130(a)(2) of 
the Truth in Lending Act (15 U.S.C. 1640(a)(2)) is 
amended— 
(1) by striking ‘‘$100’’ and inserting ‘‘$200’’; 
(2) 
by 
striking 
‘‘$1,000’’ 
and 
inserting 
‘‘$2,000’’; and 
(3) by striking ‘‘$500,000’’ and inserting 
‘‘$1,000,000’’. 
(b) STATUTE OF LIMITATIONS EXTENDED FOR SEC-
TION 129 VIOLATIONS.—Section 130(e) of the Truth in 
Lending Act (15 U.S.C. 1640(e)) is amended— 
(1) in the first sentence, by striking ‘‘Any ac-
tion’’ and inserting ‘‘Except as provided in the sub-
sequent sentence, any action’’; and 
(2) by inserting after the first sentence the fol-
lowing new sentence: ‘‘Any action under this section 
with respect to any violation of section 129 may be 
brought in any United States district court, or in 
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any other court of competent jurisdiction, before the 
end of the 3-year period beginning on the date of the 
occurrence of the violation.’’. 
SEC. 9111. LENDER RIGHTS IN THE CONTEXT OF BOR-
ROWER DECEPTION. 
Section 130 of the Truth in Lending Act is amended 
by adding at the end the following new subsection: 
‘‘(k) EXEMPTION FROM LIABILITY AND RESCISSION 
IN CASE OF BORROWER FRAUD OR DECEPTION.—In ad-
dition to any other remedy available by law or contract, 
no creditor, assignee, or securitizer shall be liable to an 
obligor under this section, nor shall it be subject to the 
right of rescission of any obligor under 129B, if such obli-
gor, or co-obligor, knowingly, or willfully and with actual 
knowledge furnished material information known to be 
false for the purpose of obtaining such residential mort-
gage loan.’’. 
SEC. 9112. SIX-MONTH NOTICE REQUIRED BEFORE RESET 
OF HYBRID ADJUSTABLE RATE MORTGAGES. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
after section 128 the following new section: 
‘‘§ 128A. Reset of hybrid adjustable rate mortgages 
‘‘(a) HYBRID ADJUSTABLE RATE MORTGAGES DE-
FINED.—For purposes of this section, the term ‘hybrid ad-
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justable rate mortgage’ means a consumer credit trans-
action secured by the consumer’s principal residence with 
a fixed interest rate for an introductory period that ad-
justs or resets to a variable interest rate after such period. 
‘‘(b) NOTICE OF RESET AND ALTERNATIVES.—Dur-
ing the 1-month period that ends 6 months before the date 
on which the interest rate in effect during the introductory 
period of a hybrid adjustable rate mortgage adjusts or 
resets to a variable interest rate or, in the case of such 
an adjustment or resetting that occurs within the first 6 
months after consummation of such loan, at consumma-
tion, the creditor or servicer of such loan shall provide a 
written notice, separate and distinct from all other cor-
respondence to the consumer, that includes the following: 
‘‘(1) Any index or formula used in making ad-
justments to or resetting the interest rate and a 
source of information about the index or formula. 
‘‘(2) An explanation of how the new interest 
rate and payment would be determined, including an 
explanation of how the index was adjusted, such as 
by the addition of a margin. 
‘‘(3) A good faith estimate, based on accepted 
industry standards, of the creditor or servicer of the 
amount of the monthly payment that will apply after 
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the date of the adjustment or reset, and the assump-
tions on which this estimate is based. 
‘‘(4) A list of alternatives consumers may pur-
sue before the date of adjustment or reset, and de-
scriptions of the actions consumers must take to 
pursue these alternatives, including— 
‘‘(A) refinancing; 
‘‘(B) renegotiation of loan terms; 
‘‘(C) payment forbearances; and 
‘‘(D) pre-foreclosure sales. 
‘‘(5) The names, addresses, telephone numbers, 
and Internet addresses of counseling agencies or 
programs reasonably available to the consumer that 
have been certified or approved and made publicly 
available by the Secretary of Housing and Urban 
Development or a State housing finance authority 
(as defined in section 1301 of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 
1989). 
‘‘(6) The address, telephone number, and Inter-
net address for the State housing finance authority 
(as so defined) for the State in which the consumer 
resides.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended 
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by inserting after the item relating to section 128 the fol-
lowing new item: 
‘‘128A. Reset of hybrid adjustable rate mortgages.’’. 
SEC. 9113. REQUIRED DISCLOSURES. 
Section 128(a) of Truth in Lending Act (15 U.S.C. 
1638(a)) is amended by adding at the end the following 
new paragraphs: 
‘‘(16) In the case of a variable rate residential 
mortgage loan for which an escrow or impound ac-
count will be established for the payment of all ap-
plicable taxes, insurance, and assessments— 
‘‘(A) the amount of initial monthly pay-
ment due under the loan for the payment of 
principal and interest, and the amount of such 
initial monthly payment including the monthly 
payment deposited in the account for the pay-
ment of all applicable taxes, insurance, and as-
sessments; and 
‘‘(B) the amount of the fully indexed 
monthly payment due under the loan for the 
payment of principal and interest, and the 
amount of such fully indexed monthly payment 
including the monthly payment deposited in the 
account for the payment of all applicable taxes, 
insurance, and assessments. 
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‘‘(17) In the case of a residential mortgage 
loan, the aggregate amount of settlement charges for 
all settlement services provided in connection with 
the loan, the amount of charges that are included in 
the loan and the amount of such charges the bor-
rower must pay at closing, the approximate amount 
of the wholesale rate of funds in connection with the 
loan, and the aggregate amount of other fees or re-
quired payments in connection with the loan. 
‘‘(18) In the case of a residential mortgage 
loan, the aggregate amount of fees paid to the mort-
gage originator in connection with the loan, the 
amount of such fees paid directly by the consumer, 
and any additional amount received by the originator 
from the creditor. 
‘‘(19) In the case of a residential mortgage 
loan, the total amount of interest that the consumer 
will pay over the life of the loan as a percentage of 
the principal of the loan. Such amount shall be com-
puted assuming the consumer makes each monthly 
payment in full and on-time, and does not make any 
over-payments.’’. 
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SEC. 9114. DISCLOSURES REQUIRED IN MONTHLY STATE-
MENTS 
FOR 
RESIDENTIAL 
MORTGAGE 
LOANS. 
Section 128 of the Truth in Lending Act (15 U.S.C. 
1638) is amended by adding at the end the following new 
subsection: 
‘‘(f) PERIODIC
STATEMENTS
FOR
RESIDENTIAL 
MORTGAGE LOANS.— 
‘‘(1) IN GENERAL.—The creditor, assignee, or 
servicer with respect to any residential mortgage 
loan shall transmit to the obligor, for each billing 
cycle, a statement setting forth each of the following 
items, to the extent applicable, in a conspicuous and 
prominent manner: 
‘‘(A) The amount of the principal obliga-
tion under the mortgage. 
‘‘(B) The current interest rate in effect for 
the loan. 
‘‘(C) The date on which the interest rate 
may next reset or adjust. 
‘‘(D) The amount of any prepayment fee 
to be charged, if any. 
‘‘(E) A description of any late payment 
fees. 
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‘‘(F) A telephone number and electronic 
mail address that may be used by the obligor to 
obtain information regarding the mortgage. 
‘‘(G) The names, addresses, telephone 
numbers, and Internet addresses of counseling 
agencies or programs reasonably available to 
the consumer that have been certified or ap-
proved and made publicly available by the Sec-
retary of Housing and Urban Development or a 
State housing finance authority (as defined in 
section 1301 of the Financial Institutions Re-
form, Recovery, and Enforcement Act of 1989). 
‘‘(H) Such other information as the Board 
may prescribe in regulations. 
‘‘(2) DEVELOPMENT AND USE OF STANDARD 
FORM.—The Federal banking agencies shall jointly 
develop and prescribe a standard form for the disclo-
sure required under this subsection, taking into ac-
count that the statements required may be trans-
mitted in writing or electronically.’’. 
SEC. 9115. LEGAL ASSISTANCE FOR FORECLOSURE-RE-
LATED ISSUES. 
(a) ESTABLISHMENT.—The Secretary of Housing 
and Urban Development (hereafter in this section referred 
to as the ‘‘Secretary’’ shall establish a program for making 
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grants for providing a full range of foreclosure legal assist-
ance to low- and moderate-income homeowners and ten-
ants related to home ownership preservation, home fore-
closure prevention, and tenancy associated with home fore-
closure. 
(b) COMPETITIVE ALLOCATION.—The Secretary shall 
allocate amounts made available for grants under this sec-
tion to State and local legal organizations on the basis 
of a competitive process. For purposes of this subsection 
‘‘State and local legal organizations’’ are those State and 
local organizations whose primary business or mission is 
to provide legal assistance. 
(c) PRIORITY
TO CERTAIN AREAS.—In allocating 
amounts in accordance with subsection (b), the Secretary 
shall give priority consideration to State and local legal 
organizations that are operating in the 100 metropolitan 
statistical areas (as that term is defined by the Director 
of the Office of Management and Budget) with the highest 
home foreclosure rates. 
(d) LEGAL ASSISTANCE.— 
(1) IN GENERAL.—Any State or local legal or-
ganization that receives financial assistance pursu-
ant to this section may use such amounts only to as-
sist— 
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(A) homeowners of owner-occupied homes 
with mortgages in default, in danger of default, 
or subject to or at risk of foreclosure; and 
(B) tenants at risk of or subject to eviction 
as a result of foreclosure of the property in 
which such tenant resides. 
(2) COMMENCE
USE
WITHIN
DAYS.—Any 
State or local legal organization that receives finan-
cial assistance pursuant to this section shall begin 
using any financial assistance received under this 
section within 90 days after receipt of the assist-
ance. 
(3) PROHIBITION
ON
CLASS
ACTIONS.—No 
funds provided to a State or local legal organization 
under this section may be used to support any class 
action litigation. 
(4) LIMITATION ON LEGAL ASSISTANCE.—Legal 
assistance funded with amounts provided under this 
section shall be limited to mortgage-related default, 
eviction, or foreclosure proceedings, without regard 
to whether such foreclosure is judicial or nonjudicial. 
(5) EFFECTIVE
DATE.—Notwithstanding sec-
tion 9116, this subsection shall take effect on the 
date of the enactment of this Act. 
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(e) LIMITATION
ON
DISTRIBUTION
OF
ASSIST-
ANCE.— 
(1) IN GENERAL.—None of the amounts made 
available under this section shall be distributed to— 
(A) any organization which has been con-
victed for a violation under Federal law relating 
to an election for Federal office; or 
(B) any organization which employs appli-
cable individuals. 
(2) DEFINITION
OF
APPLICABLE
INDIVID-
UALS.—In this subsection, the term ‘‘applicable indi-
vidual’’ means an individual who— 
(A) is— 
(i) employed by the organization in a 
permanent or temporary capacity; 
(ii) contracted or retained by the or-
ganization; or 
(iii) acting on behalf of, or with the 
express or apparent authority of, the orga-
nization; and 
(B) has been convicted for a violation 
under Federal law relating to an election for 
Federal office. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
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$35,000,000 for each of fiscal years 2009 through 2012 
for grants under this section. 
SEC. 9116. EFFECTIVE DATE. 
The amendments made by this subtitle shall apply to 
transactions consummated on or after the effective date 
of the regulations specified in section 9109. 
SEC. 9117. REPORT BY THE GAO. 
(a) REPORT REQUIRED.—The Comptroller General 
shall conduct a study to determine the effects the enact-
ment of this Act will have on the availability and afford-
ability of credit for consumers, small businesses, home-
buyers, and mortgage lending, including the effect— 
(1) on the mortgage market for mortgages that 
are not within the safe harbor provided in the 
amendments made by this subtitle; 
(2) on the ability of prospective homebuyers to 
obtain financing; 
(3) on the ability of homeowners facing resets 
or adjustments to refinance—for example, do they 
have fewer refinancing options due to the unavail-
ability of certain loan products that were available 
before the enactment of this Act; 
(4) on minorities’ ability to access affordable 
credit compared with other prospective borrowers; 
(5) on home sales and construction; 
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(6) of extending the rescission right, if any, on 
adjustable rate loans and its impact on litigation; 
(7) of State foreclosure laws and, if any, an in-
vestor’s ability to transfer a property after fore-
closure; 
(8) of expanding the existing provisions of the 
Home Ownership and Equity Protection Act of 
1994; 
(9) of prohibiting prepayment penalties on 
high-cost mortgages; and 
(10) of establishing counseling services under 
the Department of Housing and Urban Development 
and offered through the Office of Housing Coun-
seling. 
(b) REPORT.—Before the end of the 1-year period be-
ginning on the date of the enactment of this Act, the 
Comptroller General shall submit a report to the Congress 
containing the findings and conclusions of the Comptroller 
General with respect to the study conducted pursuant to 
subsection (a). 
(c) EXAMINATION RELATED TO CERTAIN CREDIT 
RISK RETENTION PROVISIONS.—The report required by 
subsection (b) shall also include an analysis by the Comp-
troller General of the effect on the capital reserves and 
funding of lenders of credit risk retention provisions for 
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non-qualified mortgages, including an analysis of the ex-
ceptions 
and 
adjustments 
authorized 
in 
section 
129C(l)(3)(A) of the Truth in Lending Act and a rec-
ommendation on whether a uniform standard is needed. 
(d) ANALYSIS OF CREDIT RISK RETENTION PROVI-
SIONS.—The report required by subsection (b) shall also 
include— 
(1) an analysis by the Comptroller General of 
whether the credit risk retention provisions have sig-
nificantly reduced risks to the larger credit market 
of the repackaging and selling of securitized loans on 
a secondary market; and 
(2) recommendations to the Congress on adjust-
ments that should be made, or additional measures 
that should be undertaken. 
SEC. 9118. STATE ATTORNEY GENERAL ENFORCEMENT AU-
THORITY. 
Section 130(e) of the Truth in Lending Act (15 
U.S.C. 1640(e)) is amended by striking ‘‘section 129 may 
also’’ and inserting ‘‘section 129, 129B, or 129C of this 
Act may also’’. 
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Subtitle C—High-Cost Mortgages 
SEC. 9201. DEFINITIONS RELATING TO HIGH-COST MORT-
GAGES. 
(a) 
HIGH-COST
MORTGAGE
DEFINED.—Section 
103(aa) of the Truth in Lending Act (15 U.S.C. 
1602(aa)) is amended by striking all that precedes para-
graph (2) and inserting the following: 
‘‘(aa) HIGH-COST MORTGAGE.— 
‘‘(1) DEFINITION.— 
‘‘(A) IN
GENERAL.—The term ‘high-cost 
mortgage’, and a mortgage referred to in this 
subsection, means a consumer credit trans-
action that is secured by the consumer’s prin-
cipal dwelling, other than a reverse mortgage 
transaction, if— 
‘‘(i) in the case of a credit transaction 
secured— 
‘‘(I) by a first mortgage on the 
consumer’s principal dwelling, the an-
nual percentage rate at consummation 
of the transaction will exceed by more 
than 6.5 percentage points (8.5 per-
centage points, if the dwelling is per-
sonal property and the transaction is 
for less than $50,000) the average 
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prime offer rate, as defined in section 
129C(c)(2)(B), 
for 
a 
comparable 
transaction; or 
‘‘(II) by a subordinate or junior 
mortgage on the consumer’s principal 
dwelling, the annual percentage rate 
at consummation of the transaction 
will exceed by more than 8.5 percent-
age points the average prime offer 
rate, 
as 
defined 
in 
section 
129C(c)(2)(B), 
for 
a 
comparable 
transaction; 
‘‘(ii) the total points and fees payable 
in connection with the transaction ex-
ceed— 
‘‘(I) in the case of a transaction 
for $20,000 or more, 5 percent of the 
total transaction amount; or 
‘‘(II) in the case of a transaction 
for less than $20,000, the lesser of 8 
percent 
of 
the 
total 
transaction 
amount or $1,000 (or such other dol-
lar amount as the Board shall pre-
scribe by regulation); or 
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‘‘(iii) the credit transaction documents 
permit the creditor to charge or collect pre-
payment fees or penalties more than 36 
months after the transaction closing or 
such fees or penalties exceed, in the aggre-
gate, more than 2 percent of the amount 
prepaid. 
‘‘(B) INTRODUCTORY RATES TAKEN INTO 
ACCOUNT.—For 
purposes 
of 
subparagraph 
(A)(i), the annual percentage rate of interest 
shall be determined based on the following in-
terest rate: 
‘‘(i) In the case of a fixed-rate trans-
action in which the annual percentage rate 
will not vary during the term of the loan, 
the interest rate in effect on the date of 
consummation of the transaction. 
‘‘(ii) In the case of a transaction in 
which the rate of interest varies solely in 
accordance with an index, the interest rate 
determined by adding the index rate in ef-
fect on the date of consummation of the 
transaction to the maximum margin per-
mitted at any time during the transaction 
agreement. 
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‘‘(iii) In the case of any other trans-
action in which the rate may vary at any 
time during the term of the loan for any 
reason, the interest charged on the trans-
action at the maximum rate that may be 
charged during the term of the trans-
action.’’. 
(b) ADJUSTMENT OF PERCENTAGE POINTS.—Section 
103(aa)(2) of the Truth in Lending Act (15 U.S.C. 
1602(aa)(2)) is amended by striking subparagraph (B) 
and inserting the following new subparagraph: 
‘‘(B) An increase or decrease under sub-
paragraph (A)— 
‘‘(i) may not result in the number of 
percentage points referred to in paragraph 
(1)(A)(i)(I) being less than 6 percentage 
points or greater than 10 percentage 
points; and 
‘‘(ii) may not result in the number of 
percentage points referred to in paragraph 
(1)(A)(i)(II) being less than 8 percentage 
points or greater than 12 percentage 
points.’’. 
(c) POINTS AND FEES DEFINED.— 
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(1) IN
GENERAL.—Section 103(aa)(4) of the 
Truth in Lending Act (15 U.S.C. 1602(aa)(4)) is 
amended— 
(A) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) all compensation paid directly or indi-
rectly by a consumer or creditor to a mortgage 
originator from any source, including a mort-
gage originator that originates a loan in the 
name of the creditor in a table-funded trans-
action;’’; 
(B) in subparagraph (C)(ii), by inserting 
‘‘except where applied to the charges set forth 
in section 106(e)(1) where a creditor may re-
ceive indirect compensation solely as a result of 
obtaining distributions of profits from an affili-
ated entity based on its ownership interest in 
compliance with section 8(c)(4) of the Real Es-
tate Settlement Procedures Act of 1974’’ before 
the semicolon at the end; 
(C) in subparagraph (C)(iii), by striking ‘‘; 
and’’ and inserting ‘‘, except as provided for in 
clause (ii);’’; 
(D) by redesignating subparagraph (D) as 
subparagraph (G); and 
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(E) by inserting after subparagraph (C) 
the following new subparagraphs: 
‘‘(D) premiums or other charges payable at 
or before closing for any credit life, credit dis-
ability, credit unemployment, or credit property 
insurance, or any other accident, loss-of-income, 
life or health insurance, or any payments di-
rectly or indirectly for any debt cancellation or 
suspension agreement or contract, except that 
insurance premiums or debt cancellation or sus-
pension fees calculated and paid in full on a 
monthly basis shall not be considered financed 
by the creditor; 
‘‘(E) except as provided in subsection (cc), 
the maximum prepayment fees and penalties 
which may be charged or collected under the 
terms of the credit transaction; 
‘‘(F) all prepayment fees or penalties that 
are incurred by the consumer if the loan refi-
nances a previous loan made or currently held 
by the same creditor or an affiliate of the cred-
itor; and’’. 
(2) CALCULATION OF POINTS AND FEES FOR 
OPEN-END
CONSUMER
CREDIT
PLANS.—Section 
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103(aa) of the Truth in Lending Act (15 U.S.C. 
1602(aa)) is amended— 
(A) by redesignating paragraph (5) as 
paragraph (6); and 
(B) by inserting after paragraph (4) the 
following new paragraph: 
‘‘(5) CALCULATION OF POINTS AND FEES FOR 
OPEN-END CONSUMER CREDIT PLANS.—In the case 
of open-end consumer credit plans, points and fees 
shall be calculated, for purposes of this section and 
section 129, by adding the total points and fees 
known at or before closing, including the maximum 
prepayment penalties which may be charged or col-
lected under the terms of the credit transaction, plus 
the minimum additional fees the consumer would be 
required to pay to draw down an amount equal to 
the total credit line.’’. 
(d) BONA
FIDE
DISCOUNT
LOAN
DISCOUNT 
POINTS.—Section 103 of the Truth in Lending Act (15 
U.S.C. 1602) is amended by inserting after subsection (cc) 
(as added by section 101) the following new subsection: 
‘‘(dd) BONA FIDE DISCOUNT POINTS AND PREPAY-
MENT PENALTIES.—For the purposes of determining the 
amount of points and fees for purposes of subsection (aa), 
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either the amounts described in paragraph (1) or (2) of 
the following paragraphs, but not both, shall be excluded: 
‘‘(1) Up to and including 2 bona fide discount 
points payable by the consumer in connection with 
the mortgage, but only if the interest rate from 
which the mortgage’s interest rate will be discounted 
does not exceed by more than 1 percentage point— 
‘‘(A) the required net yield for a 90-day 
standard mandatory delivery commitment for a 
reasonably comparable loan from either the 
Federal National Mortgage Association or the 
Federal Home Loan Mortgage Corporation, 
whichever is greater; or 
‘‘(B) if secured by a personal property 
loan, the average rate on a loan in connection 
with which insurance is provided under title I 
of the National Housing Act (12 U.S.C. 1702 
et seq.). 
‘‘(2) Unless 2 bona fide discount points have 
been excluded under paragraph (1), up to and in-
cluding 1 bona fide discount point payable by the 
consumer in connection with the mortgage, but only 
if the interest rate from which the mortgage’s inter-
est rate will be discounted does not exceed by more 
than 2 percentage points— 
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‘‘(A) the required net yield for a 90-day 
standard mandatory delivery commitment for a 
reasonably comparable loan from either the 
Federal National Mortgage Association or the 
Federal Home Loan Mortgage Corporation, 
whichever is greater; or 
‘‘(B) if secured by a personal property 
loan, the average rate on a loan in connection 
with which insurance is provided under title I 
of the National Housing Act (12 U.S.C. 1702 
et seq.). 
‘‘(3) For purposes of paragraph (1), the term 
‘bona fide discount points’ means loan discount 
points which are knowingly paid by the consumer for 
the purpose of reducing, and which in fact result in 
a bona fide reduction of, the interest rate or time- 
price differential applicable to the mortgage. 
‘‘(4) Paragraphs (1) and (2) shall not apply to 
discount points used to purchase an interest rate re-
duction unless the amount of the interest rate reduc-
tion purchased is reasonably consistent with estab-
lished industry norms and practices for secondary 
mortgage market transactions.’’. 
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SEC. 9202. AMENDMENTS TO EXISTING REQUIREMENTS 
FOR CERTAIN MORTGAGES. 
(a) PREPAYMENT PENALTY PROVISIONS.—Section 
129(c)(2) of the Truth in Lending Act (15 U.S.C. 
1639(c)(2)) is hereby repealed. 
(b) NO BALLOON PAYMENTS.—Section 129(e) of the 
Truth in Lending Act (15 U.S.C. 1639(e)) is amended to 
read as follows: 
‘‘(e) NO BALLOON PAYMENTS.—No high-cost mort-
gage may contain a scheduled payment that is more than 
twice as large as the average of earlier scheduled pay-
ments. This subsection shall not apply when the payment 
schedule is adjusted to the seasonal or irregular income 
of the consumer or in the case of a balance due under 
the customary terms of a reverse mortgage.’’. 
SEC. 9203. ADDITIONAL REQUIREMENTS FOR CERTAIN 
MORTGAGES. 
(a) ADDITIONAL
REQUIREMENTS
FOR
CERTAIN 
MORTGAGES.—Section 129 of the Truth in Lending Act 
(15 U.S.C. 1639) is amended— 
(1) by redesignating subsections (j), (k) and (l) 
as subsections (n), (o) and (p) respectively; and 
(2) by inserting after subsection (i) the fol-
lowing new subsections: 
‘‘(j) RECOMMENDED DEFAULT.—No creditor shall 
recommend or encourage default on an existing loan or 
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other debt prior to and in connection with the closing or 
planned closing of a high-cost mortgage that refinances 
all or any portion of such existing loan or debt. 
‘‘(k) LATE FEES.— 
‘‘(1) IN GENERAL.—No creditor may impose a 
late payment charge or fee in connection with a 
high-cost mortgage— 
‘‘(A) in an amount in excess of 4 percent 
of the amount of the payment past due; 
‘‘(B) unless the loan documents specifically 
authorize the charge or fee; 
‘‘(C) before the end of the 15-day period 
beginning on the date the payment is due, or in 
the case of a loan on which interest on each in-
stallment is paid in advance, before the end of 
the 30-day period beginning on the date the 
payment is due; or 
‘‘(D) more than once with respect to a sin-
gle late payment. 
‘‘(2) COORDINATION WITH SUBSEQUENT LATE 
FEES.—If a payment is otherwise a full payment for 
the applicable period and is paid on its due date or 
within an applicable grace period, and the only delin-
quency or insufficiency of payment is attributable to 
any late fee or delinquency charge assessed on any 
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earlier payment, no late fee or delinquency charge 
may be imposed on such payment. 
‘‘(3) FAILURE
TO
MAKE
INSTALLMENT
PAY-
MENT.—If, in the case of a loan agreement the 
terms of which provide that any payment shall first 
be applied to any past due principal balance, the 
consumer fails to make an installment payment and 
the consumer subsequently resumes making install-
ment payments but has not paid all past due install-
ments, the creditor may impose a separate late pay-
ment 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 mort-
gage may contain a provision which permits the creditor 
to accelerate the indebtedness, except when repayment of 
the loan has been accelerated by default in payment, or 
pursuant to a due-on-sale provision, or pursuant to a ma-
terial violation of some other provision of the loan docu-
ment unrelated to 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: 
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‘‘(1) Any prepayment fee or penalty payable by 
the consumer in a refinancing transaction if the 
creditor 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 inserting 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 
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 sepa-
rate 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 sub-
section: 
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‘‘(r) MODIFICATION AND DEFERRAL FEES PROHIB-
ITED.— 
‘‘(1) CREDITORS.—A creditor may not charge a 
consumer any fee to modify, renew, extend, or 
amend a high-cost mortgage, or to defer any pay-
ment 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 secured by a consumer’s 
principal dwelling and are not high-cost mortgages. 
‘‘(2) THIRD PARTIES.—A third-party may not 
charge a consumer any fee to— 
‘‘(A) modify, renew, extend, or amend a 
high-cost mortgage, or defer any payment due 
under the terms of such mortgage; 
‘‘(B) negotiate with a creditor on behalf of 
a consumer, the modification, renewal, exten-
sion, or amendment of a high-cost mortgage; or 
‘‘(C) negotiate with a creditor on behalf of 
a consumer, the deferral of any payment due 
under the terms of such mortgage, 
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unless the modification renewal, extension or amend-
ment results in a significantly lower annual percent-
age rate on the mortgage, or a significant reduction 
in the amount of the outstanding principal 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 secured by a consumer’s 
principal dwelling and are not high-cost mortgages. 
‘‘(3) ENFORCEMENT.—Section 130 shall be ap-
plied for purposes of paragraph (2) by— 
‘‘(A) 
substituting 
‘third 
party’ 
for 
‘creditor’each place such term appears; and 
‘‘(B) substituting ‘any fee charged by a 
third party’ for ‘finance charge’ each place such 
term appears.’’. 
(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 
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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 
consumer 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 
payoff 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 cal-
endar year, the creditor or servicer may there-
after charge a reasonable fee for providing such 
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information during the remainder of the cal-
endar 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. 
‘‘(3) SERVICES
CONSIDERED
ASSIGNEE.—For 
the purposes of this subsection, a servicer shall be 
considered an assignee under the Truth in Lending 
Act.’’. 
(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 sub-
section: 
‘‘(t) PRE-LOAN COUNSELING.— 
‘‘(1) IN GENERAL.—A creditor may not extend 
credit to a consumer under a high-cost mortgage 
without first receiving certification from a counselor 
that is approved by the Secretary of Housing and 
Urban Development, or at the discretion of the Sec-
retary, a State housing finance authority, that the 
consumer has received counseling on the advisability 
of the mortgage. Such counselor shall not be em-
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ployed 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 Board may prescribe 
such regulations as the Board determines to be ap-
propriate 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 following 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. 
‘‘(2) FLIPPING DEFINED.—For purposes of this 
subsection, the term ‘flipping’ means the making of 
a loan or extension of credit in the form a high-cost 
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mortgage to a consumer which refinances an existing 
mortgage when the new loan or extension of credit 
does not have reasonable, net tangible benefit (as de-
termined in accordance with regulations prescribed 
under section 129C(b)) to the consumer considering 
all of the circumstances, including the terms of both 
the new and the refinanced loans or credit, the cost 
of the new loan or credit, and the consumer’s cir-
cumstances. 
‘‘(v) CORRECTIONS
AND UNINTENTIONAL VIOLA-
TIONS.—A creditor or assignee in a high cost loan who, 
when acting in good faith, fails to comply with any re-
quirement under this section will not be deemed to have 
violated such requirement if the creditor or assignee estab-
lishes that either— 
‘‘(1) within 30 days of the loan closing and 
prior to the institution of any action, the consumer 
is notified of or discovers the violation, appropriate 
restitution is made, and whatever adjustments are 
necessary are made to the loan to either, at the 
choice of the consumer— 
‘‘(A) make the loan satisfy the require-
ments of this chapter; or 
‘‘(B) in the case of a high-cost mortgage, 
change the terms of the loan in a manner bene-
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‘‘(V) section 33(d)(2)(B) (42 
U.S.C. 1437z–5(d)(2)(B)); and 
‘‘(VI) 
section 
302(b)(6) 
(42 
U.S.C. 1437aaa–1(b)(6)); 
‘‘(iii) section 233(b)(2) of the Cran-
ston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12773(b)(2)); 
‘‘(iv) section 106 of the Housing and 
Urban Development Act of 1968 (12 
U.S.C. 1701x); 
‘‘(v) section 422(b)(6) of the Cran-
ston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12872(b)(6)); 
‘‘(vi) section 491(b)(1)(F)(iii) of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11408(b)(1)(F)(iii)); 
‘‘(vii) 
sections 
202(3) 
and 
810(b)(2)(A) of the Native American 
Housing and Self-Determination Act of 
1996 (25 U.S.C. 4132(3), 4229(b)(2)(A)); 
and 
‘‘(viii) the rental assistance program 
under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f). 
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