Title: Mortgage Fairness Act of 2017
Policy area: Housing and Community Development

Summary:
Mortgage Fairness Act of 2017
This bill amends the Truth in Lending Act to revise the definition of "points and fees," for purposes of determining whether a mortgage is a "high-cost mortgage," to: (1) exclude compensation taken into account in setting the interest rate and for which the consumer was not separately charged, and (2) include compensation paid by a consumer or creditor to an individual employed by or contracting with a mortgage originator. (A high-cost mortgage designation restricts the terms of a loan and requires a lender to make certain disclosures to the borrower.)

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2570 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2570

 To amend the Truth in Lending Act to clarify that the points and fees 
in connection with a mortgage loan do not include certain compensation 
amounts already taken into account in setting the interest rate on such 
                     loan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2017

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

_______________________________________________________________________

                                 A BILL


 
 To amend the Truth in Lending Act to clarify that the points and fees 
in connection with a mortgage loan do not include certain compensation 
amounts already taken into account in setting the interest rate on such 
                     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 Fairness Act of 2017''.

SEC. 2. POINTS AND FEES.

    Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is 
amended--
            (1) by redesignating subsection (aa) (relating to 
        disclosure of the greater amount or percentage) as subsection 
        (bb);
            (2) by redesignating subsection (bb) (relating to high cost 
        mortgages) as subsection (aa), and moving such subsection to 
        immediately follow subsection (z); and
            (3) in paragraph (4) of subsection (aa), as so 
        redesignated, by amending subparagraph (B) to read as follows:
                    ``(B) all compensation from any source (other than 
                compensation taken into account in setting the interest 
                rate and for which there is no separate charge to the 
                consumer) paid directly or indirectly by a consumer or 
                creditor to--
                            ``(i) a mortgage originator, including a 
                        mortgage originator that is also the creditor 
                        in a table-funded transaction; or
                            ``(ii) an individual employed by or 
                        contracting with the originator or a mortgage 
                        originator;''.
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