Protecting Habitat Homeownership Act

Bill: 113-hr-3529
Sponsor: full_name: Rep. Meadows, Mark [R-NC-11]
Introduced: 2013-11-19
Policy area: Housing and Community Development
Subjects: Consumer affairs

Consumer credit

Housing finance and home ownership

Interest, dividends, interest rates

Low- and moderate-income housing

Social work, volunteer service, charitable organizations

Tax-exempt organizations
Latest action: action_date: 2013-11-19
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2013-11-19
action_desc: Introduced in House
text: <p>Protecting Habitat Homeownership Act - Amends the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974 to exempt residential mortgage loans originated by non-profit low-income housing providers from certain minimum loan standards as well as appraisal, servicing, and billing requirements.</p> <p>Defines &quot;non-profit low-income housing provider&quot; as a tax-exempt charitable organization that does not engage in the business of a loan originator or mortgage broker but does make residential mortgage loans: (1) to promote or facilitate homeownership for poor or low-income, disabled, or other disadvantaged persons or families; and (2) at interest rates lower than the bank prime loan rate; or (3) that are, after adjusting for inflation, no-interest loans or loans with interest rates significantly below the interest rates for loans for purchase of single-family housing generally available in the market. Prescribes additional requirements.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 3529 IN THE HOUSE OF REPRESENTATIVES November 19, 2013 Mr. Meadows (for himself, Mrs. Capito , Mr. Murphy of Florida , and Mr. Butterfield ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide exemptions from certain mortgage, servicing, and appraisal requirements for non-profit low-income housing providers, and for other purposes.

1. Short title This Act may be cited as the Protecting Habitat Homeownership Act . 2. Exemptions (a) Truth in Lending Act The Truth in Lending Act ( 15 U.S.C. 1601 et seq. ) is amended— (1) in section 128(f) ( 15 U.S.C. 1638(f) )— (A) in paragraph (3)— (i) by striking apply to any fixed rate and inserting the following: apply to— (A) any fixed rate ; (ii) by striking the period and inserting ; or ; and (iii) by adding at the end the following: (B) any residential mortgage loan originated by a non-profit low-income housing provider. ; and (B) by adding at the end the following: (4) Non-profit low-income housing provider defined For purposes of this subsection, the term non-profit low-income housing provider means an organization that— (A) is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986; (B) makes residential mortgage loans— (i) for the purpose of promoting or facilitating homeownership for poor or low-income, disabled, or other disadvantaged persons or families; and (ii) sets interest rates on such loans that— (I) are lower than the bank prime loan rate, as determined under the Federal Reserve Statistical Release of selected interest rates (commonly referred to as the H.15) by the Board of Governors of the Federal Reserve System, for the last day of the most recent weekly release of such rates; or (II) are, after adjusting for inflation, no-interest loans or loans with interest rates significantly below the interest rates for loans for purchase of single-family housing generally available in the market; (C) except as described under subparagraph (B), does not engage in the business of a loan originator or mortgage broker; (D) conducts its activities in a manner that serves public or charitable purposes; (E) receives funding and revenue and charges fees in a manner that does not incentivize the organization or its employees to act other than in the best interests of its clients; (F) compensates employees in a manner that does not incentivize employees to act other than in the best interests of its clients; and (G) meets such other requirements as the Bureau determines appropriate. . (2) in section 129C(a) ( 15 U.S.C. 1639c(a) ), by adding at the end the following: (10) Exemption for non-profit low-income housing providers This subsection shall not apply to a residential mortgage loan made by a non-profit low-income housing provider (as such term is defined under section 128(f)(4)). ; (3) in section 129E ( 15 U.S.C. 1638e ), by adding at the end the following: (l) Exemption for non-Profit low-Income housing providers This section shall not apply to a residential mortgage loan made by a non-profit low-income housing provider (as such term is defined under section 128(f)(4)), or any services provided with respect to such a mortgage loan. ; and (4) in section 129H ( 15 U.S.C. 1638h ), by adding at the end the following: (g) Exemption for non-Profit low-Income housing providers This section shall not apply to a residential mortgage loan made by a non-profit low-income housing provider (as such term is defined under section 128(f)(4)). . (b) Real Estate Settlement Procedures Act of 1974 Section 6(k) of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2605(k) ) is amended by adding at the end the following: (3) Exemption for non-profit low-income housing providers This subsection and subsections (l) and (m) shall not apply to the servicing of a residential mortgage loan made by a non-profit low-income housing provider (as such term is defined under section 128(f)(4) of the Truth in Lending Act). .