Mortgage Borrower Protection Act of 2022

Bill: 117-hr-7049
Sponsor: full_name: Rep. Sherman, Brad [D-CA-30]
Introduced: 2022-03-09
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-03-09
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2022-03-09
action_desc: Introduced in House
text: <p><strong>Mortgage Borrower Protection Act of 2022 </strong></p> <p>This bill requires an entity extending a Property Assessed Clean Energy (PACE) financing agreement to receive written consent from each owner of any residential mortgage loan or other recorded lien on the property before extending such financing to the dwelling owner. (PACE financing is used to cover the costs of home improvements such as energy-efficient improvements. The subsequent lien is tied to the specific property in the form of a tax assessment.) </p> <p>Consent is not required if the PACE financing does not have priority over the mortgage loan or lien.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 7049 IN THE HOUSE OF REPRESENTATIVES March 9, 2022 Mr. Sherman introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to require Property Assessed Clean Energy financiers to receive the consent of mortgage holders and other lien holders before providing financing.

1. Short title This Act may be cited as the Mortgage Borrower Protection Act of 2022 . 2. Property Assessed Clean Energy financing consent requirement Section 128 of the Truth in Lending Act ( 15 U.S.C. 1638 ) is amended by adding at the end the following: (g) Property Assessed Clean Energy financing consent requirement (1) In general With respect to a dwelling of a consumer that is the subject of a residential mortgage loan or other recorded lien, it shall be unlawful to extend Property Assessed Clean Energy financing to the dwelling owner with respect to such dwelling without first receiving the written consent of each owner of each residential mortgage loan and other recorded lien, either directly from the owner or from a servicer. (2) Exception Consent shall not be required under paragraph (1) from an owner of a residential mortgage loan or other recorded lien if amounts that become due and payable under the applicable Property Assessed Clean Energy financing will not have priority over such residential mortgage loan or other recorded lien. (3) Penalty With respect to any Property Assessed Clean Energy financing extended in violation of this subsection— (A) such Property Assessed Clean Energy financing shall be null and void; and (B) the consumer shall not be required to repay any amounts received under the Property Assessed Clean Energy financing. (4) Definition of Property Assessed Clean Energy financing In this subsection, the term Property Assessed Clean Energy financing has the meaning given that term under section 129C(b)(3)(C)(i). .