PARITY Act of 2019

Bill: 116-hr-1036
Sponsor: full_name: Rep. Riggleman, Denver [R-VA-5]
Introduced: 2019-02-07
Policy area: Finance and Financial Sector
Subjects: Consumer credit

Housing finance and home ownership

Licensing and registrations
Latest action: action_date: 2019-02-07
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2019-02-07
action_desc: Introduced in House
text: <p><b>Preserving Access to Rural Installment Transactions for Years Act of 2019 or the PARITY Act of 2019 </b></p> <p>This bill revises the definition of a mortgage originator for the purposes of compliance with registration and compensation requirements. </p> <p>Among other things, it exempts from mortgage originator requirements those lenders providing financing to five (currently three) or fewer properties in a year, including corporations and partnerships that would otherwise be regulated as mortgage originators. The bill also removes the requirement that such lenders, in order to be exempt from these requirements, must verify the buyer's ability to repay the loan.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 1036 IN THE HOUSE OF REPRESENTATIVES February 7, 2019 Mr. Riggleman introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to clarify the exclusion for seller-financers from the definition of mortgage originator, and for other purposes.

1. Short title This Act may be cited as the Preserving Access to Rural Installment Transactions for Years Act of 2019 or the PARITY Act of 2019 . 2. Amendments related to the exclusion of seller-financers in the definition of mortgage originator Section 103(dd)(2)(E) of the Truth in Lending Act ( 15 U.S.C. 1602(dd)(2)(E) ) is amended— (1) in the matter preceding clause (i)— (A) by striking 3 properties and inserting 5 properties ; (B) by striking a person, estate, or trust and inserting a person or entity (including a corporation, partnership, proprietorship, association, cooperative, estate, or trust) ; and (C) by striking such person, estate, or trust and inserting such a person or entity ; (2) in clause (i)— (A) by inserting or after the semicolon; (B) by striking a person, estate, or trust that has constructed and inserting such a person or entity that— (I) has constructed ; and (C) by inserting at the end the following new subclause: (II) has received any other compensation related to such loan, including origination points or fees and excluding interest payments; ; (3) by striking clauses (ii), (iii), and (iv); and (4) by inserting after clause (i) the following new clauses: (ii) is not a high-cost mortgage; (iii) does not include terms under which the outstanding principal balance will increase at any time over the course of the loan because the regular periodic payments do not cover the full amount of interest due; (iv) has— (I) a fixed rate; or (II) an adjustable rate that was not determined by a prior contractual obligation between the consumer and such a person or entity and— (aa) is adjustable after 5 or more years (as determined by the addition of a margin to a widely available index rate) subject to reasonable annual and lifetime limitations on interest rate increases or is determined by a prior obligation that is included in or assumed by the terms of the loan; or (bb) with respect to any part of such loan contractually required to be used to make payments on an existing mortgage loan secured by such a property, is adjustable on or after the date of a rate adjustment on such existing mortgage loan; and .