Mortgage Choice Act of 2015

Bill: 114-hr-685
Sponsor: Rep. Huizenga, Bill [R-MI-2]
Introduced: 2015-02-03 in the House
Policy area: Housing and Community Development
Subjects: Administrative law and regulatory procedures
Consumer Financial Protection Bureau
Housing finance and home ownership
User charges and fees

Summary:
action_date: 2015-02-03
text: 

Mortgage Choice Act of 2015 

 
 Amends the Truth in Lending Act with respect to requirements for disclosure to a consumer of points and fees information about a consumer credit transaction, secured by the consumer's principal dwelling, but which is not a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan, when the total points and fees the consumer must pay at or before closing will exceed 8% of the total loan amount or $400, whichever is greater. (Such consumer credit transactions might include an equity credit line to which consumer purchases or leases may be charged.)
 
Excludes from the computation of such points and fees any escrow for future payment of insurance.
 
Modifies the criteria for exclusion from the computation of points and fees of certain reasonable charges elsewhere exempted from the computation of the finance charge in extensions of credit secured by an interest in real property. Excludes from points and fees any such reasonable charges even though a creditor receives compensation, but only in so far as the creditor or its affiliate retains the compensation as a result of their participation in an affiliated business arrangement. 
 
(An "affiliated business arrangement" is one in which: (1) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1% in a provider of settlement services; and (2) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the provider's selection.)
 
Revises the additional requirement that such a reasonable charge be paid to a third party unaffiliated with the creditor. Requires the charge to be: (1) a bona fide third party charge not retained by the mortgage originator, creditor, or an affiliate; or (2) a fee or premium for title examination, title insurance, or similar purposes. 
 
Modifies the conditions under which federal departments and agencies may exempt refinancings under a streamlined refinancing from an income verification requirement that, at the time a refinancing is consummated, the consumer has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments. Repeals the exception for bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate from the requirement that total points and fees not exceed 3% of the total new loan amount. (Thus subjects such charges to the same 3% ceiling.)

action_date: 2015-04-14
text: 
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
 

Mortgage Choice Act of 2015

 
 (Sec. 2) Amends the Truth in Lending Act with respect to requirements for disclosure to a consumer of points and fees information about a consumer credit transaction, secured by the consumer's principal dwelling, but which is not a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan, when the total points and fees the consumer must pay at or before closing will exceed 8% of the total loan amount or $400, whichever is greater. (Such consumer credit transactions might include an equity credit line to which consumer purchases or leases may be charged.)
 
Excludes from the computation of such points and fees any escrow for future payment of insurance.
 
Modifies the criteria for exclusion from the computation of points and fees of certain reasonable charges elsewhere exempted from the computation of the finance charge in extensions of credit secured by an interest in real property. Excludes from points and fees any such reasonable charges even though a creditor receives compensation, but only in so far as the creditor or its affiliate retains the compensation as a result of their participation in an affiliated business arrangement. 
 
(An "affiliated business arrangement" is one in which: (1) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1% in a provider of settlement services; and (2) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the provider's selection.)
 
Revises the additional requirement that such a reasonable charge be paid to a third party unaffiliated with the creditor. Requires the charge to be: (1) a bona fide third party charge not retained by the mortgage originator, creditor, or an affiliate; or (2) a fee or premium for title examination, title insurance, or similar purposes. 
 
Modifies the conditions under which federal departments and agencies may exempt refinancings under a streamlined refinancing from an income verification requirement that, at the time a refinancing is consummated, the consumer has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments. Repeals the exception for bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate from the requirement that total points and fees not exceed 3% of the total new loan amount. (Thus subjects such charges to the same 3% ceiling.)


Legislative actions:
action_date: 2015-04-16
text: Committee on Banking, Housing, and Urban Affairs. Hearings held.
action_date: 2015-04-15
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2015-04-14
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2015-04-14
text: On passage Passed by the Yeas and Nays: 286 - 140 (Roll no. 152). (text: CR H2188)
action_date: 2015-04-14
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 286 - 140 (Roll no. 152).(text: CR H2188)
action_date: 2015-04-14
text: Considered as unfinished business. (consideration: CR H2197)
action_date: 2015-04-14
text: POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 685, the Chair put the question on adoption of the bill, and by voice vote announced that the ayes had prevailed. Ms. Waters (CA) demanded the yeas and nays, and the Chair postponed further proceedings on adoption until later in the legislative day.
action_date: 2015-04-14
text: The previous question was ordered pursuant to the rule. (consideration: CR H2194)
action_date: 2015-04-14
text: DEBATE - The House proceeded with one hour of debate on H.R. 685.
action_date: 2015-04-14
text: Considered under the provisions of rule H. Res. 189. (consideration: CR H2188-2194)
action_date: 2015-04-13
text: Rules Committee Resolution H. Res. 189 Reported to House. Resolution provides for consideration of 3 measures: H.R. 650; H.R. 685; and S. Con. Res. 11.
action_date: 2015-04-06
text: Placed on the Union Calendar, Calendar No. 35.
action_date: 2015-04-06
text: Reported by the Committee on Financial Services. H. Rept. 114-54.
action_date: 2015-04-06
text: Reported by the Committee on Financial Services. H. Rept. 114-54.
action_date: 2015-03-26
text: Ordered to be Reported by the Yeas and Nays: 43 - 12.
action_date: 2015-03-26
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-03-25
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-02-03
text: Referred to the House Committee on Financial Services.
action_date: 2015-02-03
text: Introduced in House
action_date: 2015-02-03
text: Introduced in House