S.Amdt. 4441

1. Adds TITLE VIII--MORTGAGE FRAUD at the end of the bill

   Adds a title

   In H.R. 3221 · Placed on Calendar Senate

   Passed the House of Representatives August 4, 2007.

   Inserted: TITLE VIII--MORTGAGE FRAUD

   Inserted: SEC. 801. MORTGAGE FRAUD.

   Inserted: (a) In General.--Chapter 63 of title 18, United States Code, is amended by adding at the end the following:

   Inserted: "Sec. 1351. Mortgage fraud

   Inserted: "(a) In General.--It shall be unlawful for any mortgage professional to knowingly execute, or attempt to execute, a scheme or artifice--

   Inserted: "(1) to defraud any natural person, financial institution, or purchaser of consumer credit or an interest in consumer credit in connection with the offer or extension of consumer credit (as such term is defined in subsections (e) and (h) under section 103 of the Truth in Lending Act (15 U.S.C. 1602(e) and (h))), which credit is, is to be, or is portrayed as being secured by an interest--

   Inserted: "(A) in real property; or

   Inserted: "(B) in personal property used or expected to be used as the principal dwelling (as such term is defined under section 103(v) of the Truth in Lending Act (15 U.S.C. 1602(v))) of the natural person to whom such consumer credit is offered or extended; or

   Inserted: "(2) to obtain, by means of false or fraudulent pretenses, representations, or promises, any money or property, including without limitation in the form of fees or charges, from a natural person in connection with an extension of consumer credit which is, is to be, or is portrayed as being secured by an interest--

   Inserted: "(A) in real property; or

   Inserted: "(B) in personal property used or expected to be used as the principal dwelling of such natural person;

   Inserted: "(b) Penalties.--

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   Inserted: "(1) Criminal penalties.--Any mortgage professional who violates subsection (a) shall be fined not more than $5,000,000, or imprisoned not more than 35 years, or both.

   Inserted: "(2) Civil penalties.--Any mortgage professional who violates subsection (a) shall be liable for an amount equal to the sum of all finance charges and fees paid or payable by the natural person, financial institution, or purchaser who was defrauded unless the mortgage professional demonstrates that such violation is not material.

   Inserted: "(c) Private Right of Action by Persons Aggrieved.--

   Inserted: "(1) In general.--Any person aggrieved by a violation of this section, or any regulation under this section may, but shall not be required to, file suit in any district court of the United States or any State court having jurisdiction of the parties to such suit--

   Inserted: "(A) without respect to the amount in controversy;

   Inserted: "(B) without regard to the citizenship of the parties; and

   Inserted: "(C) without regard to exhaustion of any administrative remedies.

   Inserted: "(2) Remedies.--Any court in which a civil action has been brought under paragraph (1) may--

   Inserted: "(A) award damages and appropriate declaratory and injunctive relief for each violation of this section; and

   Inserted: "(B) provide such additional relief as the court deems appropriate, including the award of court costs, investigative costs, and reasonable attorneys' fees incurred by persons aggrieved.

   Inserted: "(d) Rule of Construction.--Nothing in this section shall be construed to modify, lessen, or otherwise affect any other provision of this title relating to the rights afforded to financial institutions or purchasers of consumer credit or interests in consumer credit.

   Inserted: "(e) Definition.--As used in this section, the term 'mortgage professional' includes real estate appraisers, real estate accountants, real estate attorneys, real estate brokers, mortgage brokers, mortgage underwriters, mortgage processors, mortgage settlement companies, mortgage title companies, mortgage loan originators, and any other provider of professional services engaged in the mortgage process.".

   Inserted: (b) Table of Sections.--The table of sections for chapter 63 of title 18, United States Code, is amended by inserting after the item relating to section 1350 the following:

   Inserted: "1351. Mortgage fraud.".

   Inserted: (c) Conforming Amendment.--Section 3293(2) of title 18, United States Code, is amended by striking "or 1343" and inserting ", 1343, or 1351".

   Original wording

   At the end, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed