Title: Mortgage Sale Transparency Act of 2017
Policy area: Finance and Financial Sector

Summary:
Mortgage Sale Transparency Act of 2017
This bill amends the Truth in Lending Act to require in the event of a mortgage loan sale, transfer, or assignment to another creditor: (1) notice of the transfer to the borrower from the original creditor, (2) exemption from liability for the borrower in the event of an error in the transfer, and (3) a 90-day grace period for loan payments made by the borrower to the wrong lender.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3538 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3538

To amend the Truth in Lending Act to create additional requirements for 
  original and new creditors of mortgage loans in the case of a sale, 
  transfer, or assignment of a mortgage loan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 28, 2017

   Mr. Rush introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Truth in Lending Act to create additional requirements for 
  original and new creditors of mortgage loans in the case of a sale, 
  transfer, or assignment of a mortgage loan, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mortgage Sale Transparency Act of 
2017''.

SEC. 2. ADDITIONAL REQUIREMENTS FOR ORIGINAL AND NEW CREDITORS OF 
              MORTGAGE LOANS IN THE CASE OF A SALE, TRANSFER, OR 
              ASSIGNMENT OF A MORTGAGE LOAN.

    Section 131(g) of the Truth in Lending Act (15 U.S.C. 1641(g)) is 
amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Additional requirements.--
                    ``(A) Notice from original creditor.--In addition 
                to other disclosures required by this subchapter, not 
                later than 90 days before the date on which a creditor 
                sells, transfers, or assigns a mortgage loan to another 
                creditor, the original creditor shall notify the 
                borrower in writing of such sale, transfer, or 
                assignment.
                    ``(B) No borrower liability in case of error in 
                transfer.--With respect to a mortgage loan described in 
                paragraph (1), the borrower of such mortgage loan may 
                not be subject to a financial penalty from the original 
                creditor or the creditor that is the new owner or 
                assignee of such mortgage loan if either creditor makes 
                an error, as determined by the Bureau, in the sale, 
                transfer, or assignment of such mortgage loan.
                    ``(C) Misdirected mortgage loan payments.--During 
                the 90-day period beginning on the date on which a 
                mortgage loan is sold, transferred, or assigned to 
                another creditor, a borrower of the mortgage loan that 
                submits a payment on such mortgage loan to the original 
                creditor on or before the due date for such payment may 
                not be subject to a financial penalty for a late 
                payment from the creditor that is the new owner or 
                assignee of the mortgage loan.''.
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