Mortgage Sale Transparency Act of 2017

Bill: 115-hr-3538
Sponsor: full_name: Rep. Rush, Bobby L. [D-IL-1]
Introduced: 2017-07-28
Policy area: Finance and Financial Sector
Subjects: Consumer credit

Housing finance and home ownership
Latest action: action_date: 2017-07-28
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2017-07-28
action_desc: Introduced in House
text: <p><b>Mortgage Sale Transparency Act of 2017</b></p> <p>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.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 3538 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.

1. Short title This Act may be cited as the Mortgage Sale Transparency Act of 2017 . 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. .