S.Amdt. 4996

SA 4996. Mr. DORGAN submitted an amendment intended to be proposed to
amendment SA 4983 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mr. Shelby)) to the bill H.R. 3221, moving the United States toward
greater energy independence and security, developing innovative new
technologies, reducing carbon emissions, creating green jobs,
protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal
Revenue Code of 1986 to provide tax incentives for the production of
renewable energy and energy conservation; which was ordered to lie on
the table; as follows:

At the appropriate place insert the following:

SEC. ------. ENFORCEMENT OF MORTGAGE LOAN RULES.

(a) Purpose.--The purpose of this section is to enhance
enforcement of the mortgage loan rules under the Truth in
Lending Act (15 U.S.C. 1601 et seq.) and to prevent harm to
consumers and mortgage markets from detrimental practices
relating to subprime or nontraditional mortgage loans.
(b) Rulemaking Required.--Within 90 days after the date of
enactment of this Act, the Federal Trade Commission shall
initiate a rulemaking proceeding with respect to subprime
mortgage loans and nontraditional mortgage loans in
accordance with section 553 of title 5, United States Code,
notwithstanding section 18 of the Federal Trade Commission
Act (15 U.S.C. 57a) or any other provision of law. Any
violation of a rule prescribed under this subsection shall be
treated as a violation of a rule under section 18 of the
Federal Trade Commission Act (15 U.S.C. 57a) regarding unfair
or deceptive acts or practices. Violation of the rule is
punishable by a civil penalty to the same extent as if it
were a violation of a rule promulgated under that Act.
(c) Enforcement by State Attorneys General.--
(1) In general.--Except as provided in paragraph (6), a
State, as parens patriae, may bring a civil action on behalf
of its residents in an appropriate State or district court of
the United States to enforce the provisions of section 128 of
the Truth in Lending Act (15 U.S.C. 1638), any other
provision of the Truth in Lending Act, or any subprime
mortgage lending rule or nontraditional mortgage loan rule
promulgated by the Federal Trade Commission to obtain
penalties and relief provided under such Act or rule whenever
the attorney general of the State has reason to believe that
the interests of the residents of the State have been or are
being threatened or adversely affected by a violation of such
Act or rule.
(2) Notice.--The State shall serve written notice to the
Commission of any civil action under subsection (b) at least
60 days prior to initiating such civil action. The notice
shall include a copy of the complaint to be filed to initiate
such civil action, except that if it is not feasible for the
State to provide such prior notice, the State shall provide
notice immediately upon instituting such civil action.
(3) Intervention by ftc.--Upon receiving the notice
required by paragraph (2), the Commission may intervene in
such civil action and upon intervening--
(A) be heard on all matters arising in such civil action;
(B) remove the action to the appropriate United States
district court; and
(C) file petitions for appeal of a decision in such civil
action.
(4) Savings clause.--Nothing in this subsection shall
prevent the attorney general of a State from exercising the
powers conferred on the attorney general by the laws of such
State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the
production of documentary and other evidence. Nothing in this
section shall prohibit the attorney general of a State, or
other authorized State officer, from proceeding in State or
Federal court on the basis of an alleged violation of any
civil or criminal statute of that State.
(5) Venue; service of process; joinder.--In a civil action
brought under paragraph (1)--
(A) the venue shall be a judicial district in which the the
defendant is found, is an inhabitant, or transacts business
or wherever venue is proper under section 1391 of title 28,
United States Code; and
(B) process may be served without regard to the territorial
limits of the district or of the State in which the civil
action is instituted.
(6) Preemptive action by ftc.--Whenever a civil action or
an administrative action has been instituted by or on behalf
of the Commission for violation of any provision of law or
rule described in paragraph (1), no State may, during the
pendency of such action instituted by or on behalf of the
Commission, institute a civil action under that paragraph
against any defendant named in the complaint in such action
for violation of any law or rule as alleged in such
complaint.
(7) Award of costs and fees.--If the attorney general of a
State prevails in any civil action under paragraph (1), the
State can recover reasonable costs and attorney fees from the
lender or related party.
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