H. R. 2399—5
‘‘(1) IN GENERAL.—Except as otherwise specifically provided
in this title, any civil action against a creditor for a violation
of this title, and any proceeding under section 108 against
a creditor, with respect to a consumer credit transaction secured
by real property may be maintained against any assignee of
such creditor only if—
‘‘(A) the violation for which such action or proceeding
is brought is apparent on the face of the disclosure state-
ment provided in connection with such transaction pursu-
ant to this title; and
‘‘(B) the assignment to the assignee was voluntary.
‘‘(2) VIOLATION APPARENT ON THE FACE OF THE DISCLOSURE
DESCRIBED.—For the purpose of this section, a violation is
apparent on the face of the disclosure statement if—
‘‘(A) the disclosure can be determined to be incomplete
or inaccurate by a comparison among the disclosure state-
ment, any itemization of the amount financed, the note,
or any other disclosure of disbursement; or
‘‘(B) the disclosure statement does not use the terms
or format required to be used by this title.’’.
(b) SERVICER NOT TREATED AS ASSIGNEE.—Section 131 of the
Truth in Lending Act (15 U.S.C. 1641) is further amended by
adding after subsection (e) (as added by subsection (a) of this
section) the following new subsection:
‘‘(f) TREATMENT OF SERVICER.—
‘‘(1) IN GENERAL.—A servicer of a consumer obligation aris-
ing from a consumer credit transaction shall not be treated
as an assignee of such obligation for purposes of this section
unless the servicer is or was the owner of the obligation.
‘‘(2) SERVICER NOT TREATED AS OWNER ON BASIS OF ASSIGN-
MENT
FOR
ADMINISTRATIVE
CONVENIENCE.—A servicer of a
consumer obligation arising from a consumer credit transaction
shall not be treated as the owner of the obligation for purposes
of this section on the basis of an assignment of the obligation
from the creditor or another assignee to the servicer solely
for the administrative convenience of the servicer in servicing
the obligation. Upon written request by the obligor, the servicer
shall provide the obligor, to the best knowledge of the servicer,
with the name, address, and telephone number of the owner
of the obligation or the master servicer of the obligation.
‘‘(3) SERVICER DEFINED.—For purposes of this subsection,
the term ‘servicer’ has the same meaning as in section 6(i)(2)
of the Real Estate Settlement Procedures Act of 1974.
‘‘(4) APPLICABILITY.—This subsection shall apply to all
consumer credit transactions in existence or consummated on
or after the date of the enactment of the Truth in Lending
Act Amendments of 1995.’’.
SEC. 8. RESCISSION RIGHTS IN FORECLOSURE.
Section 125 of the Truth in Lending Act (15 U.S.C. 1635)
is amended by inserting after subsection (h) (as added by section
5 of this Act) the following new subsection:
‘‘(i) RESCISSION RIGHTS IN FORECLOSURE.—
‘‘(1) IN GENERAL.—Notwithstanding section 139, and subject
to the time period provided in subsection (f), in addition to
any other right of rescission available under this section for
a transaction, after the initiation of any judicial or nonjudicial
H. R. 2399—6
foreclosure process on the primary dwelling of an obligor secur-
ing an extension of credit, the obligor shall have a right to
rescind the transaction equivalent to other rescission rights
provided by this section, if—
‘‘(A) a mortgage broker fee is not included in the
finance charge in accordance with the laws and regulations
in effect at the time the consumer credit transaction was
consummated; or
‘‘(B) the form of notice of rescission for the transaction
is not the appropriate form of written notice published
and adopted by the Board or a comparable written notice,
and otherwise complied with all the requirements of this
section regarding notice.
‘‘(2) TOLERANCE FOR DISCLOSURES.—Notwithstanding sec-
tion 106(f), and subject to the time period provided in subsection
(f), for the purposes of exercising any rescission rights after
the initiation of any judicial or nonjudicial foreclosure process
on the principal dwelling of the obligor securing an extension
of credit, the disclosure of the finance charge and other disclo-
sures affected by any finance charge shall be treated as being
accurate for purposes of this section if the amount disclosed
as the finance charge does not vary from the actual finance
charge by more than $35 or is greater than the amount required
to be disclosed under this title.
‘‘(3) RIGHT OF RECOUPMENT UNDER STATE LAW.—Nothing
in this subsection affects a consumer’s right of rescission in
recoupment under State law.
‘‘(4) APPLICABILITY.—This subsection shall apply to all
consumer credit transactions in existence or consummated on
or after the date of the enactment of the Truth in Lending
Act Amendments of 1995.’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.