‘‘(cc) DEFINITIONS RELATING TO MORTGAGE ORIGI-
NATION.— 
‘‘(1) COMMISSION.—The term ‘Commission’ 
means the Federal Trade Commission. 
‘‘(2) 
MORTGAGE
ORIGINATOR.—The 
term 
‘mortgage originator’— 
‘‘(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 
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the activities described in subparagraph (A); 
and 
‘‘(C) does not include any person who is 
not otherwise described in subparagraph (A) or 
(B) and who performs purely administrative or 
clerical tasks on behalf of a person who is de-
scribed in any such subparagraph. 
‘‘(3) QUALIFIED
NATIONWIDE
REGISTRATION 
REGIME.—The term ‘qualified nationwide registra-
tion regime’ means a nationwide registry for the res-
idential mortgage industry, such as the registry es-
tablished by the Conference of State Bank Super-
visors and the American Association of Residential 
Mortgage Regulators, which is— 
‘‘(A) certified by the Secretary as a reg-
istry that provides a comprehensive licensing 
and supervisory database for mortgage origina-
tors; or 
‘‘(B) established by the Secretary under 
section 129A(c)(3). 
‘‘(4) 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 loan terms (includ-
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ing rates, fees, other costs), preparing loan pack-
ages, or collecting information on behalf of the con-
sumer with regard to a residential mortgage loan. 
‘‘(5) QUALIFYING STATE LICENSING LAW.—The 
term ‘qualifying State licensing law’ means the law 
in effect in a State which the Secretary determines 
satisfies the following minimum requirements: 
‘‘(A) All mortgage originators operating in 
the State which are not depository institutions 
or institution-affiliated parties of a depository 
institution are required— 
‘‘(i) to be licensed by the State; and 
‘‘(ii) to meet effective minimum re-
quirements in order to qualify for any such 
license. 
‘‘(B) All mortgage originators operating in 
the State which are not depository institutions 
or institution-affiliated parties of a depository 
institution are required at all times to main-
tain— 
‘‘(i) a minimum net worth, net of in-
tangibles, of at least $100,000, as deter-
mined in accordance with generally accept-
ed accounting principles; or 
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‘‘(ii) a surety bond in the minimum 
amount of $100,000. 
‘‘(C) A State mortgage originator super-
visory authority is maintained to provide effec-
tive supervision and enforcement of such law, 
including the suspension, termination, or non-
renewal of a license for a violation of State or 
Federal law. 
‘‘(D) The State mortgage originator super-
visory authority ensures that all mortgage origi-
nators operating in the State which are not de-
pository institutions or institution-affiliated par-
ties of a depository institution are registered 
under the qualified nationwide registration re-
gime. 
‘‘(E) The State mortgage originator super-
visory authority is required to regularly report 
violations of such law, as well as enforcement 
actions and other relevant information, to the 
qualified nationwide reporting regime. 
‘‘(F) All mortgage originators operating in 
the State which are not depository institutions 
or institution-affiliated parties of a depository 
institution are required to receive minimum 
training and undergo a background check be-
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fore receiving a license, and receive ongoing 
training or continuing education as a condition 
for maintaining and renewing the licence. 
‘‘(G) Any mortgage originator licensed 
under such law is required to provide accurate 
and effective disclosures to consumers con-
cerning the costs of the mortgage originator’s 
services and the costs and benefits of residential 
mortgage loan products, including the disclo-
sures required under section 129A(a). 
‘‘(H) Individual consumers have an effec-
tive mechanism to obtain redress for any viola-
tion of such law by a mortgage originator. 
‘‘(6) RESIDENTIAL
MORTGAGE
LOAN.—The 
term ‘residential mortgage loan’ means any con-
sumer credit transaction that is secured by a mort-
gage or deed of trust on a dwelling or on residential 
real property that includes a dwelling, other than a 
consumer credit transaction under an open end cred-
it plan or a reverse mortgage. 
‘‘(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. 
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‘‘(8) SECURITIZER.—The term ‘securitizer’ 
means any assignee who acquires or aggregates resi-
dential mortgage loans for the purpose of including 
such loans in a pool of assets for the purpose of 
issuing or selling instruments representing interests 
in such pools.’’. 
SEC. 102. 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 129 the following new section: 
‘‘§ 129A. Residential mortgage loan origination 
‘‘(a) 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, licensed, and registered 
as a mortgage originator in accordance with ap-
plicable State or Federal law; 
‘‘(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-
ucts for which the consumer qualifies and which 
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are appropriate to the consumer’s existing cir-
cumstances, based on information known by, or 
provided in good faith to, the originator; 
‘‘(C) make full, complete, and timely dis-
closure to each such consumer of— 
‘‘(i) the comparative costs and bene-
fits of each residential mortgage loan prod-
uct offered, discussed, or referred to by the 
originator; 
‘‘(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 
‘‘(iii) any relevant conflicts of interest; 
‘‘(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 
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‘‘(E) include the unique identifier of the 
originator provided by a qualified nationwide 
registration regime on all loan documents. 
‘‘(2) 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 and 
complies with all requirements of this title that 
are applicable to mortgage originators; and 
‘‘(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. 
‘‘(3) REGULATIONS.— 
‘‘(A) IN
GENERAL.—The Secretary, the 
Comptroller of the Currency, the Director of 
the Office of Thrift Supervision, and the Fed-
eral Deposit Insurance Corporation, in con-
sultation with the Commission, shall jointly pre-
scribe regulations to— 
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‘‘(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 
‘‘(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 
section 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 
loans.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended 
by inserting after the item relating to section 129 the fol-
lowing new item: 
‘‘129A. Residential mortgage loan origination.’’. 
SEC. 103. ANTI-STEERING. 
Section 129A of the Truth in Lending Act (as added 
by section 102(a)) is amended by inserting after sub-
section (a) the following new subsection: 
‘‘(b) PROHIBITION ON STEERING INCENTIVES.— 
‘‘(1) IN
GENERAL.—No mortgage originator 
may receive from any person, and no person may 
pay to any mortgage originator, directly or indi-
rectly, any incentive compensation (including yield 
spread premium) that is based on, or varies with, 
the terms of any residential mortgage loan. 
‘‘(2) ANTI-STEERING REGULATIONS.— 
‘‘(A) 
REQUIRED.—The 
Secretary, 
the 
Comptroller of the Currency, the Director of 
the Office of Thrift Supervision, and the Fed-
eral Deposit Insurance Corporation, in con-
sultation with the Commission, shall jointly pre-
scribe regulations to prohibit mortgage origina-
tors from steering any consumer to a residential 
mortgage loan that is not in the consumer’s in-
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terest (such as loans with predatory character-
istics). 
‘‘(B) CONDITIONS.—In prescribing any 
regulations under this subsection, the Sec-
retary, the Comptroller of the Currency, the Di-
rector of the Office of Thrift Supervision, and 
the Federal Deposit Insurance Corporation, in 
consultation with the Commission, shall seek to 
ensure that such regulations— 
‘‘(i) promote the interest of the con-
sumer in obtaining— 
‘‘(I) the best terms for a residen-
tial mortgage loan for which the con-
sumer qualifies; and 
‘‘(II) useful information on the 
nature of the residential mortgage 
loan and the relationship of the con-
sumer with the mortgage originator; 
and 
‘‘(ii) prohibit mortgage originators 
from steering, counseling, or directing a 
consumer into any residential mortgage 
loan that is not in the consumer’s interest. 
‘‘(3) RULES OF CONSTRUCTION.—No provision 
of this subsection shall be construed as— 
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‘‘(A) limiting or affecting the ability of a 
mortgage originator to sell residential mortgage 
loans to subsequent purchasers; or 
‘‘(B) restricting a consumer’s ability to fi-
nance origination fees to the extent that such 
fees were fully disclosed to the consumer earlier 
in the application process and do not vary 
based on the consumer’s decision about whether 
to finance such fees.’’. 
SEC. 104. LICENSING AND REGISTRATION OF MORTGAGE 
ORIGINATORS. 
Section 129A of the Truth in Lending Act is amend-
ed by inserting after subsection (b) (as added by section 
103) the following new subsections: 
‘‘(c) FEDERAL LICENSING AND REGULATION BACK-
STOP.— 
‘‘(1) IN
GENERAL.—A mortgage originator 
which is not a depository institution or an institu-
tion-affiliated party of a depository institution may 
not originate any residential mortgage loan after the 
end of the 24-month period beginning on the date of 
the enactment of the Mortgage Reform and Anti- 
Predatory Lending Act of 2007, unless such mort-
gage originator— 
‘‘(A) is licensed— 
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‘‘(i) under a qualifying State licensing 
law or by the Secretary in accordance with 
paragraph (2); and 
‘‘(B) is registered with and participating in 
a qualified nationwide registration regime. 
‘‘(2) HUD LICENSING AND REGISTRATION.— 
‘‘(A) ESTABLISHMENT.—If, on or after the 
end of the 24-month period beginning on the 
date of the enactment of the Mortgage Reform 
and Anti-Predatory Lending Act of 2007, any 
State does not have in effect a qualifying State 
licensing law, the Secretary shall establish and 
maintain a system for licensing and registering 
mortgage originators operating in such State 
which are not depository institutions or institu-
tion-affiliated parties of a depository institution. 
‘‘(B) 
REQUIREMENTS.—The 
Secretary 
shall prescribe, by regulation, such require-
ments for mortgage originators licensed under 
the system established under subparagraph (A) 
as the Secretary determines to be appropriate 
and are equivalent to the requirements for 
qualifying State licensing laws. 
‘‘(C) BEST INTERESTS OF CONSUMER RE-
QUIREMENT.—Regulations 
prescribed 
under 
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subparagraph (B) shall require a mortgage 
originator to act solely in the best interest of 
the consumer, including finding the residential 
mortgage loan that best meets the needs of the 
borrower, and to meet any other duties incum-
bent on the mortgage originator under Federal 
or State law when acting in such a capacity. 
‘‘(3) PARTICIPATION
IN
QUALIFIED
NATION-
WIDE REGISTRATION REGIME.—If the Secretary has 
not certified any registry as a qualified nationwide 
registration regime by the end of the 18-month pe-
riod beginning on the date of the enactment of the 
Mortgage Reform and Anti-Predatory Lending Act 
of 2007, or if a certified nationwide registration re-
gime fails to meet the requirements under this title 
for such a regime, the Secretary shall establish a 
qualified nationwide registration regime that pro-
vides a comprehensive licensing and supervisory 
database for mortgage originators to carry out the 
purposes of this section and the effective regulation 
of mortgage originators licensed under a qualifying 
State licensing law or by the Secretary under para-
graph (2). 
‘‘(4) ADVANCE PREPARATION.—The Secretary 
shall take such actions as the Secretary determines 
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to be appropriate in advance of the end of the 24- 
month period beginning on the date of the enact-
ment of the Mortgage Reform and Anti-Predatory 
Lending Act of 2007, to ensure the timely establish-
ment, if necessary, on or after the end of such pe-
riod of— 
‘‘(A) a system for licensing and registering 
mortgage originators under paragraph (2); or 
‘‘(B) a qualified nationwide registration re-
gime under paragraph (3). 
‘‘(5) TEMPORARY EXTENSION OF PERIOD.—The 
Secretary may extend, by not more than 6 months, 
the 24-month period referred to in paragraphs (1) 
and (2) for the licensing of mortgage originators in 
any State under a qualifying State licensing law if 
the Secretary determines that such State is making 
a good faith effort to establish a qualifying State li-
censing law and to license mortgage originators 
under such law. 
‘‘(6) MINIMUM STANDARDS FOR CERTIFICATION 
OF A NATIONWIDE REGISTRATION REGIME.—In de-
termining whether to certify a nationwide registra-
tion regime, the Secretary shall determine that the 
regime at a minimum— 
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‘‘(A) provides and maintains a unique 
identifier for each mortgage originator partici-
pating in the regime; and 
‘‘(B) provides relevant and timely informa-
tion to consumers, industry participants, and 
Federal and State regulatory agencies (includ-
ing any enforcement actions relating to any 
mortgage originator). 
‘‘(d) REGULATION OF DEPOSITORY INSTITUTIONS.— 
‘‘(1) IN GENERAL.—Any depository institution, 
and any institution-affiliated party of a depository 
institution, that is a mortgage originator shall com-
ply with regulations prescribed under paragraph (2) 
and applicable requirements for registrants of a 
qualified nationwide registration regime. 
‘‘(2) REGULATIONS.—The Comptroller of the 
Currency, the Director of the Office of Thrift Super-
vision, and the Federal Deposit Insurance Corpora-
tion, in consultation with the Secretary, shall jointly 
prescribe equivalent regulations applicable to deposi-
tory institutions, and institution-affiliated parties of 
depository institutions that act as mortgage origina-
tors, taking into account all the requirements for a 
qualifying State licensing law, and shall specifically 
require— 
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‘‘(A) licensing of any institution-affiliated 
party of a depository institution who acts as a 
mortgage originator; 
‘‘(B) registration with, and participation 
in, a qualified nationwide registration regime; 
and 
‘‘(C) minimum qualification requirements 
and pre-licensing training and continuing edu-
cation requirements. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section, the term ‘depository institution’ includes a 
credit union and the term ‘institution-affiliated 
party’ has the same meaning as in section 3(u) of 
the Federal Deposit Insurance Act.’’. 
SEC. 105. ENFORCEMENT. 
Section 129A of the Truth in Lending Act is amend-
ed by inserting after subsection (d) (as added by section 
104) the following new subsection: 
‘‘(e) 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 
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