and methods of calculation applicable to loans 
that are subject to the reporting requirements 
under the Home Mortgage Disclosure Act of 
1975. 
‘‘(B) 
DATE
OF
DETERMINATION
OF 
YIELD.—The yield on the securities referred to 
in subparagraph (A) shall be determined, for 
purposes of such subparagraph and paragraph 
(3) with respect to any residential mortgage 
loan, as of the 15th day of the month preceding 
the month in which a completed application is 
submitted for such loan. 
‘‘(5) 
APR 
IN
CASE
OF
INTRODUCTORY 
OFFER.—For purposes of making a determination of 
whether a residential mortgage loan that provides 
for a fixed interest rate for an introductory period 
and then resets or adjusts to an adjustable rate is 
a qualified mortgage, the determination of the an-
nual percentage rate shall be based on the greater 
of the introductory rate and the fully indexed rate 
of interest. 
‘‘(6) REGULATIONS.— 
‘‘(A) IN
GENERAL.—The Comptroller of 
the Currency, the Director of the Office of 
Thrift Supervision, and the Federal Deposit In-
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surance Corporation shall jointly prescribe reg-
ulations to carry out the purposes of this sub-
section. 
‘‘(B) 
CLASSIFICATIONS, 
DIFFERENTIA-
TIONS, MODIFICATIONS, AND
EXEMPTIONS.— 
The regulations prescribed under subparagraph 
(A) may contain such classifications, differen-
tiations, modifications of terms defined in this 
subsection, or other provisions, and may provide 
for such adjustments and exceptions, as in the 
judgement of the Federal banking agencies re-
ferred to in subparagraph (A) are necessary 
and appropriate to effectuate the purposes of 
this subsection to prevent circumvention or eva-
sion thereof, or to facilitate compliance there-
with.’’. 
SEC. 204. SECURITIZER LIABILITY. 
Section 129B of the Truth in Lending Act is amend-
ed by inserting after subsection (c) (as added by section 
203) the following new subsection: 
‘‘(d) LIABILITY FOR VIOLATIONS.— 
‘‘(1) LIMITED ASSIGNEE LIABILITY.—Notwith-
standing sections 125(e) and 131 and except as pro-
vided in paragraph (2), a civil action which may be 
maintained against a creditor with respect to a resi-
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dential mortgage loan for a violation of subsection 
(a) or (b) may be maintained against an assignee, 
including a securitizer, of such residential mortgage 
loan, acting in good faith, for the following liabilities 
only: 
‘‘(A) Rescission of the loan in accordance 
with this title. 
‘‘(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. 
‘‘(2) EXEMPTION.—No assignee, including a 
securitizer, of a residential mortgage loan shall be 
liable under paragraph (1) with respect to such loan 
if— 
‘‘(A) no later than 90 days after the re-
ceipt of notification from the consumer that the 
loan violates subsection (a) or (b), the assignee 
provides a cure so that the loan satisfies the re-
quirements of subsections (a) and (b); or 
‘‘(B) each of the following conditions are 
met: 
‘‘(i) The assignee— 
‘‘(I) has a policy against buying 
residential mortgage loans other than 
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bajohnson on PROD1PC69 with BILLS
qualified mortgages or qualified safe 
harbor mortgages (as defined in sub-
section (c)); and 
‘‘(II) exercises reasonable due 
diligence to adhere to such policy in 
purchasing residential mortgage loans 
through adequate, thorough, and con-
sistently applied sampling procedures 
established in accordance which regu-
lations which the Comptroller of the 
Currency, the Director of the Office of 
Thrift Supervision, and the Federal 
Deposit Insurance Corporation shall 
jointly prescribe. 
‘‘(ii) The contract under which such 
assignee acquired the residential mortgage 
loan from a seller or assignor of the loan 
contains representations and warranties 
that the seller or assignor— 
‘‘(I) will not sell or assign any 
residential mortgage loan which is not 
a qualified mortgage or a qualified 
safe harbor mortgage; or 
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‘‘(II) is a beneficiary of a rep-
resentation and warranty from a pre-
vious seller or assignor to that effect, 
and the assignee in good faith takes rea-
sonable steps to obtain the benefit of such 
representation or warranty. 
‘‘(3) CURE DEFINED.—For purposes of para-
graph (2)(A), 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 
would have satisfied the requirements of subsection 
(a) and (b) if the loan had contained such terms as 
of the origination of the loan. 
‘‘(4) NO
CLASS
ACTIONS
UNDER
THIS
SUB-
SECTION.—Only individual actions may be brought 
against an assignee, including a securitizer, of a res-
idential mortgage loan for a violation of subsection 
(a) or (b). 
‘‘(5) SCOPE OF APPLICATION.—Liability of an 
assignee, including a securitizer, under this sub-
section shall apply— 
‘‘(A) in any original action brought by a 
consumer for a violation of subsection (a) or (b) 
with respect to a residential mortgage loan dur-
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