An amendment numbered 1 printed in House Report 111-98 as a manager's amendment to provide for various and sundry clarifying changes in the bill.

1. 1

   Change 1: Inserts “All rule writing by the 'Federal banking agencies' as designated by the Mortgage Reform a…” at the end of section 103(cc)(2) of the Truth in Lending Act (as added by section 101 of the bill)

   Inserts

   Inserted: All rule writing by the 'Federal banking agencies' as designated by the Mortgage Reform and Anti-Predatory Lending Act will be coordinated through the Financial Institutions Examination Council in consultation with the Chairman of the State Liaison Committee.

   Original wording

   In section 103(cc)(2) of the Truth in Lending Act (as added by section 101 of the bill), insert at the end the following: “All rule writing by the ‘Federal banking agencies' as designated by the Mortgage Reform and Anti-Predatory Lending Act will be coordinated through the Financial Institutions Examination Council in consultation with the Chairman of the State Liaison Committee.”.

2. 2

   Change 2: Inserts “and who does not advise a consumer on loan terms (including rates, fees, and other costs)” before the semicolon

   InsertsSection 103(cc)(3)(C) of the Truth in Lending Act (as added by section 101 of the bill)

   Inserted: and who does not advise a consumer on loan terms (including rates, fees, and other costs)

   Original wording

   In section 103(cc)(3)(C) of the Truth in Lending Act (as added by section 101 of the bill), insert before the semicolon the following: “and who does not advise a consumer on loan terms (including rates, fees, and other costs)”.

3. 3

   Change 3: Replaces the period at the end at the section 103(cc)(3)(E) with “; and”

   Replaces

   …[struck: .][inserted: ; and]

   Original wording

   (2) in subparagraph (E), strike the period at the end and insert “; and”; and

4. 4

   Change 4: Inserts new text at the end of the bill

   Inserts

   In H.R. 1728 · Reported in House

   (b) Sense of the Congress.--It is the sense of the Congress that efforts to enhance by the protection, limitation, and regulation of the terms of residential mortgage credit and the practices related to such credit would be incomplete without enactment of meaningful structural reforms of Fannie Mae and Freddie Mac. Union Calendar No. 42

   Inserted: (F) does not include a servicer or servicer employees, agents and contractors, including but not limited to those who offer or negotiate terms of a residential mortgage loan for purposes of renegotiating, modifying, replacing and subordinating principal of existing mortgages where borrowers are behind in their payments, in default or have a reasonable likelihood of being in default or falling behind.

   Original wording

   (3) add at the end the following:

5. 5

   Change 5: Replaces “128(a)(f) and 128(b)(4)” at the section 103(cc)(6) of the Truth in Lending Act (as added by section 101 of the bill) with “and 128(f)”

   Replaces

   [struck: 128(a)(f) and 128(b)(4)][inserted: and 128(f)]

   Original wording

   In section 103(cc)(6) of the Truth in Lending Act (as added by section 101 of the bill), strike “128(a)(f) and 128(b)(4)” and insert “and 128(f)”.

6. 6

   Change 6: Strikes “, the Chairman of the State Liaison Committee to the Financial Institutions Examination C…” at the section 129B(b)(4)(A) of the Truth in Lending Act (as added by section 102 of the bill)

   Strikes

   Struck: , the Chairman of the State Liaison Committee to the Financial Institutions Examination Council,

   Original wording

   In section 129B(b)(4)(A) of the Truth in Lending Act (as added by section 102 of the bill), strike “, the Chairman of the State Liaison Committee to the Financial Institutions Examination Council,”.

7. 7

   Change 7: Inserts new text after section 129B(c)(1) of the Truth in Lending Act (as added by section 103 of the bill)

   Inserts

   Inserted: (2) Restructuring of financing origination fee.--

   Inserted: (A) In general.--For any mortgage loan, a mortgage originator may not arrange for a consumer to finance through rate any origination fee or cost except bona fide third party settlement charges not retained by the creditor or mortgage originator.

   Inserted: (B) Exception.--Notwithstanding paragraph subparagraph (A), a mortgage originator may arrange for a consumer to finance through rate an origination fee or cost if--

   Inserted: (i) the mortgage originator does not receive any other compensation from the consumer except the compensation that is financed through rate; and

   Inserted: (ii) the mortgage is a qualified mortgage.

   Original wording

   In section 129B(c) of the Truth in Lending Act (as added by section 103 of the bill), insert after paragraph (1) the following (and redesignate succeeding paragraphs accordingly):

8. 8

   Change 8: Replaces the period at the section 129B(c)(2)(D) with “; and”

   Replaces

   …[struck: .][inserted: ; and]

   Original wording

   (2) in subparagraph (D), strike the period and insert “; and”; and

9. 9

   Change 9: Inserts new text at the end of the bill

   Inserts

   In H.R. 1728 · Reported in House

   (b) Sense of the Congress.--It is the sense of the Congress that efforts to enhance by the protection, limitation, and regulation of the terms of residential mortgage credit and the practices related to such credit would be incomplete without enactment of meaningful structural reforms of Fannie Mae and Freddie Mac. Union Calendar No. 42

   Inserted: (E) mortgage originators from--

   Inserted: (i) mischaracterizing the credit history of a consumer or the residential mortgage loans available to a consumer;

   Inserted: (ii) mischaracterizing or suborning the mischaracterization of the appraised value of the property securing the extension of credit; or

   Inserted: (iii) if unable to suggest, offer, or recommend to a consumer a loan that is not more expensive than a loan for which the consumer qualifies, discouraging a consumer from seeking a home mortgage loan secured by a consumer's principal dwelling from another mortgage originator.

   Original wording

   (3) add at the end the following new subparagraph:

10. 10

    Change 10: Strikes “rate or” at the section 129B(c)(3)(D) of the Truth in Lending Act (as added by section 103 of the bill)

    Strikes

    Struck: rate or

    Original wording

    In section 129B(c)(3)(D) of the Truth in Lending Act (as added by section 103 of the bill), strike “rate or”.

11. 11

    Change 11: Inserts “necessary or proper to ensure that responsible, affordable mortgage credit remains availa…” after “standards”

    InsertsSection 129B(e)(1) of the Truth in Lending Act (as added by section 105 of the bill)

    …standards[inserted: necessary or proper to ensure that responsible, affordable mortgage credit remains available to consumers in a manner consistent with the purposes of this section and section 129B,]…

    Original wording

    In section 129B(e)(1) of the Truth in Lending Act (as added by section 105 of the bill), insert after “standards” the following: “necessary or proper to ensure that responsible, affordable mortgage credit remains available to consumers in a manner consistent with the purposes of this section and section 129B,”.

12. 12

    Change 12: Inserts new text after section 106(e)

    Inserts

    In H.R. 1728 · Reported in House

    (e) Failure To Issue Compatible Disclosures.--If the Secretary of Housing and Urban Development and the Board of Governors of the Federal Reserve System cannot agree on compatible disclosures pursuant to subsections (a) and (b), the Secretary and the Board shall submit a report to the Congress, after the 6-month period referred to in subsection (a), explaining the reasons for such disagreement. After the 15-day period beginning upon submission of such report, the Secretary and the Board may separately issue for public comment regulations providing for disclosures under the Real Estate Settlement Procedures Act of 1974 and the Truth in Lending Act, respectively. Any final disclosures as a result of such regulations issued by the Secretary and the Board shall take effect on the same date, and not later than the expiration of the 12-month period beginning on the date of the enactment of this Act. If either the Secretary or the Board fails to act during such 12-month period, either such agency may act independently and implement final regulations.

    Inserted: (f) Standardized Disclosure Forms.--

    Inserted: (1) In general.--Any regulations proposed or issued pursuant to the requirements of this section shall include model disclosure forms.

    Inserted: (2) Option for mandatory use.--In issuing proposed regulations under subsection (a), the Secretary of Housing and Urban Development and the Board of Governors of the Federal Reserve System shall include regulations for the mandatory use of standardized disclosure forms if they jointly determine that it would substantially benefit the consumer.

    Original wording

    Section 106 is amended by inserting after subsection (e) the following new subsection:

13. 13

    Change 13: Adds SEC. 107. STUDY OF SHARED APPRECIATION MORTGAGES at the end of title I

    Adds a section

    In H.R. 1728 · Reported in House

    (e) Failure To Issue Compatible Disclosures.--If the Secretary of Housing and Urban Development and the Board of Governors of the Federal Reserve System cannot agree on compatible disclosures pursuant to subsections (a) and (b), the Secretary and the Board shall submit a report to the Congress, after the 6-month period referred to in subsection (a), explaining the reasons for such disagreement. After the 15-day period beginning upon submission of such report, the Secretary and the Board may separately issue for public comment regulations providing for disclosures under the Real Estate Settlement Procedures Act of 1974 and the Truth in Lending Act, respectively. Any final disclosures as a result of such regulations issued by the Secretary and the Board shall take effect on the same date, and not later than the expiration of the 12-month period beginning on the date of the enactment of this Act. If either the Secretary or the Board fails to act during such 12-month period, either such agency may act independently and implement final regulations.

    Inserted: SEC. 107. STUDY OF SHARED APPRECIATION MORTGAGES.

    Inserted: (a) Study.--The Secretary of Housing and Urban Development, in consultation with the Secretary of the Treasury and other relevant agencies, shall conduct a comprehensive study to determine prudent statutory and regulatory requirements sufficient to provide for the widespread use of shared appreciation mortgages to strengthen local housing markets, provide new opportunities for affordable homeownership, and enable homeowners at-risk of foreclosure to refinance or modify their mortgages.

    Inserted: (b) Report.--Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development shall submit a report to the Congress on the results of the study, which shall include recommendations for the regulatory and legislative requirements referred to in subsection (a).

    Inserted: In paragraph (4) of section 129C(a) of the Truth in Lending Act (as added by section 201(a) of the bill), insert after subparagraph (D) the following new subparagraph:

    Inserted: "(E) Refinance of hybrid loans with current lender.--In considering any application for refinancing an existing hybrid loan by the creditor into a standard loan to be made by the same creditor in any case in which the sole net-tangible benefit to the mortgagor would be a reduction in monthly payment and the mortgagor has not been delinquent on any payment on the existing hybrid loan, the creditor may--

    Inserted: "(i) consider the mortgagor's good standing on the existing mortgage;

    Inserted: "(ii) consider if the extension of new credit would prevent a likely default should the original mortgage reset and give such concerns a higher priority as an acceptable underwriting practice; and

    Inserted: "(iii) offer rate discounts and other favorable terms to such mortgagor that would be available to new customers with high credit ratings based on such underwriting practice.".

    Original wording

    At the end of title I, add the following new section:

14. 14

    Change 14: Replaces “the contract's repayment schedule shall be used in this calculation” at the section 129C(a)(4)(D)(ii) of the Truth in Lending Act (as added by section 201 of the bill) with “the calculation shall be made (I) in accordance with regulations prescribed by the Federa…”

    Replaces

    [struck: the contract's repayment schedule shall be used in this calculation][inserted: the calculation shall be made (I) in accordance with regulations prescribed by the Federal banking agencies, with respect to any loan which has an annual percentage rate that does not exceed the average prime offer rate for a comparable transaction, as of the date the interest rate is set, by 1.5 or more percentage points for a first lien residential mortgage loan; and by 3.5 or more percentage points for a subordinate lien residential mortgage loan; or (II) using the contract's repayment schedule, with respect to a loan which has an annual percentage rate, as of the date the interest rate is set, that is at least 1.5 percentage points above the average prime offer rate for a first lien residential mortgage loan; and 3.5 percentage points above the average prime offer rate for a subordinate lien residential mortgage loan]

    Original wording

    In section 129C(a)(4)(D)(ii) of the Truth in Lending Act (as added by section 201 of the bill), strike “the contract's repayment schedule shall be used in this calculation” and insert the following: “the calculation shall be made (I) in accordance with regulations prescribed by the Federal banking agencies, with respect to any loan which has an annual percentage rate that does not exceed the average prime offer rate for a comparable transaction, as of the date the interest rate is set, by 1.5 or more percentage points for a first lien residential mortgage loan; and by 3.5 or more percentage points for a subordinate lien residential mortgage loan; or (II) using the contract's repayment schedule, with respect to a loan which has an annual percentage rate, as of the date the interest rate is set, that is at least 1.5 percentage points above the average prime offer rate for a first lien residential mortgage loan; and 3.5 percentage points above the average prime offer rate for a subordinate lien residential mortgage loan”.

15. 15

    Change 15: Replaces “does not exceed” at the section 129C(c)(2)(A)(iv)(I) with “is equal to or less than”

    Replaces

    [struck: does not exceed][inserted: is equal to or less than]

    Original wording

    (1) strike “does not exceed” and insert “is equal to or less than”; and

16. 16

    Change 16: Replaces “exceeds” at the section 129C(c)(2)(A)(iv)(II) with “is more than”

    Replaces

    [struck: exceeds][inserted: is more than]

    Original wording

    (1) strike “exceeds” and insert “is more than”; and

17. 17

    Change 17: Strikes the semicolon at the section 129C(c)(2)(A)(iv)(II)

    Strikes

    …[struck: ;]

    Original wording

    (2) strike the semicolon

18. 18

    Change 18: Inserts new text at the end of section 129C(c)(2)(A)(iv) of the Truth in Lending Act (as added by section 203 of the bill)

    Inserts

    Inserted: (III) by 3.5 or more percentage points, in the case of a subordinate lien residential mortgage loan;

    Original wording

    In section 129C(c)(2)(A)(iv) of the Truth in Lending Act (as added by section 203 of the bill), add at the end the following:

19. 19

    Change 19: Replaces the period at the section 129C(c)(3)(B) with “; and”

    Replaces

    …[struck: .][inserted: ; and]

    Original wording

    (2) in subparagraph (B), strike the period and insert “; and”; and

20. 20

    Change 20: Inserts new text at the end of the bill

    Inserts

    In H.R. 1728 · Reported in House

    (b) Sense of the Congress.--It is the sense of the Congress that efforts to enhance by the protection, limitation, and regulation of the terms of residential mortgage credit and the practices related to such credit would be incomplete without enactment of meaningful structural reforms of Fannie Mae and Freddie Mac. Union Calendar No. 42

    Inserted: (C) shall adjust the thresholds of 1.50 percentage points in paragraph (2)(A)(iv)(I), 2.50 percentage points in paragraph (2)(A)(iv)(II), and 3.50 percentage points in paragraph (2)(A)(v)(III), as necessary to reflect significant changes in market conditions and to effectuate the purposes of the Mortgage Reform and Anti-Predatory Lending Act.

    Original wording

    (3) add at the end the following:

21. 21

    Change 21: Inserts “necessary or proper to ensure that responsible, affordable mortgage credit remains availa…” after “are”

    InsertsSection 129C(c)(4)(B)(i) of the Truth in Lending Act (as added by section 203 of the bill)

    …are[inserted: necessary or proper to ensure that responsible, affordable mortgage credit remains available to consumers in a manner consistent with the purposes of this section,]…

    Original wording

    In section 129C(c)(4)(B)(i) of the Truth in Lending Act (as added by section 203 of the bill), after “are” insert the following: “necessary or proper to ensure that responsible, affordable mortgage credit remains available to consumers in a manner consistent with the purposes of this section,”.

22. 22

    Change 22: Inserts “, in consultation with the Federal banking agencies,” after “shall”

    InsertsSection 129C(c)(4)(B)(ii) of the Truth in Lending Act (as added by section 203 of the bill)

    …shall[inserted: , in consultation with the Federal banking agencies,]…

    Original wording

    In section 129C(c)(4)(B)(ii) of the Truth in Lending Act (as added by section 203 of the bill), after “shall” insert the following: “, in consultation with the Federal banking agencies,”.

23. 23

    Change 23: Replaces “creditor provides” at the section 129C(d)(1)(B) of the Truth in Lending Act (as added by section 204 of the bill) with “creditor, acting in good faith,”

    Replaces

    [struck: creditor provides][inserted: creditor, acting in good faith,]

    Original wording

    In section 129C(d)(1)(B) of the Truth in Lending Act (as added by section 204 of the bill), strike “creditor provides” and insert “creditor, acting in good faith,”.

24. 24

    Change 24: Replaces “and (b) shall” at the section 129C(d)(3) of the Truth in Lending Act (as added by section 204 of the bill) with “and (b), consistent with reasonable due diligence practices prescribed by the Federal ban…”

    Replaces

    [struck: and (b) shall][inserted: and (b), consistent with reasonable due diligence practices prescribed by the Federal banking agencies, shall]

    Original wording

    In section 129C(d)(3) of the Truth in Lending Act (as added by section 204 of the bill), strike “and (b) shall” and insert “and (b), consistent with reasonable due diligence practices prescribed by the Federal banking agencies, shall”.

25. 25

    Change 25: Inserts “any trustee that holds such loans solely for the benefit of the securitization vehicle,” before “the pools of such loans”

    InsertsSection 129C(d)(10)

    …[inserted: any trustee that holds such loans solely for the benefit of the securitization vehicle, ]the pools of such loans…

    Original wording

    (2) insert before “the pools of such loans” the following: “any trustee that holds such loans solely for the benefit of the securitization vehicle,”.

26. 26

    Change 26: Inserts “subject to the rights of the consumer described in this subsection,” after “designees,”

    InsertsSection 129C(g)(2) of the Truth in Lending Act (as added by section 205 of the bill)

    …designees,[inserted: subject to the rights of the consumer described in this subsection,]…

    Original wording

    In section 129C(g)(2) of the Truth in Lending Act (as added by section 205 of the bill), after “designees,” insert the following: “subject to the rights of the consumer described in this subsection,”.

27. 27

    Change 27: Strikes section 129C(h)(3)

    StrikesSection 129C(h)(3) of the Truth in Lending Act (as added by section 206 of the bill)

    Removes section 129C(h)(3).

    Original wording

    In section 129C(h) of the Truth in Lending Act (as added by section 206 of the bill), strike paragraph (3) (and redesignate succeeding paragraphs accordingly).

28. 28

    Change 28: Inserts new text at the end of section 206

    Inserts

    In H.R. 1728 · Reported in House

    "(7) sections 21B and 21C of the Securities Exchange Act of 1934, in the case of a broker or dealer, other than a depository institution, by the Securities and Exchange Commission.".

    Inserted: (c) Protection Against Loss of Anti-Deficiency Protection.--Section 129C of the Truth in Lending Act is amended by inserting after subsection (k) (as added by subsection (a) of this section) the following new subsection (and designated succeeding subsections accordingly):

    Inserted: "(l) Protection Against Loss of Anti-Deficiency Protection.--

    Inserted: "(1) Definition.--For purposes of this subsection, the term 'anti-deficiency law' means the law of any State which provides that, in the event of foreclosure on the residential property of a consumer securing a mortgage, the consumer is not liable, in accordance with the terms and limitations of such State law, for any deficiency between the sale price obtained on such property through foreclosure and the outstanding balance of the mortgage.

    Inserted: "(2) Notice at time of consummation.--In the case of any residential mortgage loan that is, or upon consummation will be, subject to protection under an anti-deficiency law, the creditor or mortgage originator shall provide a written notice to the consumer describing the protection provided by the anti-deficiency law and the significance for the consumer of the loss of such protection before such loan is consummated.

    Inserted: "(3) Notice before refinancing that would cause loss of protection.--In the case of any residential mortgage loan that is subject to protection under an anti-deficiency law, if a creditor or mortgage originator provides an application to a consumer, or receives an application from a consumer, for any type of refinancing for such loan that would cause the loan to lose the protection of such anti-deficiency law, the creditor or mortgage originator shall provide a written notice to the consumer describing the protection provided by the anti-deficiency law and the significance for the consumer of the loss of such protection before any agreement for any such refinancing is consummated.".

    Inserted: (d) Policy Regarding Acceptance of Partial Payment.--Section 129C of the Truth in Lending Act is amended by inserting after subsection (l) the following new subsection (and redesignating subsequent subsections of such section accordingly):

    Inserted: "(m) Policy Regarding Acceptance of Partial Payment.--In the case of any residential mortgage loan, a creditor shall disclose prior to settlement or, in the case of a person becoming a creditor with respect to an existing residential mortgage loan, at the time such person becomes a creditor--

    Inserted: "(1) the creditor's policy regarding the acceptance of partial payments; and

    Inserted: "(2) if partial payments are accepted, how such payments will be applied to such mortgage and if such payments will be placed in escrow;".

    Original wording

    In section 206, insert at the end the following new subsections:

29. 29

    Change 29: Strikes the period at the section 208(b)(4)

    Strikes

    In H.R. 1728 · Reported in House

    (4) the availability of any equitable remedies, including injunctive relief, under State law[struck: .]

    Original wording

    (2) in paragraph (4), strike the period

30. 30

    Change 30: Inserts new text at the end of the bill

    Inserts

    In H.R. 1728 · Reported in House

    (b) Sense of the Congress.--It is the sense of the Congress that efforts to enhance by the protection, limitation, and regulation of the terms of residential mortgage credit and the practices related to such credit would be incomplete without enactment of meaningful structural reforms of Fannie Mae and Freddie Mac. Union Calendar No. 42

    Inserted: (5) notwithstanding paragraph (2), the availability of any remedies under State law against any assignee, securitizer or securitization vehicle that--

    Inserted: (A) are in addition to those remedies provided for in section 129C; and

    Inserted: (B) were in effect on the date of enactment of this Act.

    Original wording

    (3) add at the end the following new paragraph:

31. 31

    Change 31: Replaces “in section” at the section 129C(l)(1) of the Truth in Lending Act (as added by section 213 of the bill) with “under section”

    Replaces

    [struck: in section][inserted: under section]

    Original wording

    In section 129C(l)(1) of the Truth in Lending Act (as added by section 213 of the bill), strike “in section” and insert “under section”.

32. 32

    Change 32: Replaces “prohibit creditors” at the section 129C(l)(2)(B) with “prohibit a creditor”

    Replaces

    [struck: prohibit creditors][inserted: prohibit a creditor]

    Original wording

    (1) strike “prohibit creditors” and insert “prohibit a creditor”; and

33. 33

    Change 33: Replaces “creditors are required” at the section 129C(l)(2)(B) with “such creditor is required”

    Replaces

    [struck: creditors are required][inserted: such creditor is required]

    Original wording

    (2) strike “creditors are required” and insert “such creditor is required”.

34. 34

    Change 34: Replaces “require creditors” at the section 129C(l)(2)(C) with “require a creditor”

    Replaces

    [struck: require creditors][inserted: require a creditor]

    Original wording

    (1) strike “require creditors” and insert “require a creditor”; and

35. 35

    Change 35: Inserts “by such creditor” before the semicolon

    InsertsSection 129C(l)(2)(C)

    Inserted: by such creditor

    Original wording

    (2) insert before the semicolon the following: “by such creditor”.

36. 36

    Change 36: Inserts “jointly” after “authority to”

    InsertsSection 129C(l)(3)(A) of the Truth in Lending Act (as added by section 213 of the bill)

    …authority to[inserted: jointly]…

    Original wording

    In section 129C(l)(3)(A) of the Truth in Lending Act (as added by section 213 of the bill), after “authority to” insert the following: “jointly”.

37. 37

    Change 37: Replaces “mortgage lenders” at the section 129C(l)(3)(B)(i) of the Truth in Lending Act (as added by section 213 of the bill) with “creditors that make residential mortgage loans that are not qualified mortgages”

    Replaces

    [struck: mortgage lenders][inserted: creditors that make residential mortgage loans that are not qualified mortgages]

    Original wording

    In section 129C(l)(3)(B)(i) of the Truth in Lending Act (as added by section 213 of the bill), strike “mortgage lenders” and insert “creditors that make residential mortgage loans that are not qualified mortgages”.

38. 38

    Change 38: Replaces “mortgage lenders” at the section 129C(l)(3)(B)(ii) of the Truth in Lending Act (as added by section 213 of the bill) with “such creditors”

    Replaces

    [struck: mortgage lenders][inserted: such creditors]

    Original wording

    In section 129C(l)(3)(B)(ii) of the Truth in Lending Act (as added by section 213 of the bill), strike “mortgage lenders” and insert “such creditors”.

39. 39

    Change 39: Replaces “agencies shall have discretion to” at the section 129C(l)(4) with “agencies may jointly, in their discretion,”

    Replaces

    [struck: agencies shall have discretion to][inserted: agencies may jointly, in their discretion,]

    Original wording

    (2) strike “agencies shall have discretion to” and insert “agencies may jointly, in their discretion,”;

40. 40

    Change 40: Replaces “non-qualified mortgages in addition to or in place of creditors that make non-qualified m…” at the section 129C(l)(4) with “residential mortgages (or particular types of residential mortgages) that are not qualifi…”

    Replaces

    [struck: non-qualified mortgages in addition to or in place of creditors that make non-qualified mortgages if the agencies determine that applying the requirements to securitization sponsors rather than originators][inserted: residential mortgages (or particular types of residential mortgages) that are not qualified mortgages in addition to or in substitution for any or all of the requirements that apply to creditors that make such mortgages if the agencies jointly determine that applying the requirements to such securitizers]

    Original wording

    (3) strike “non-qualified mortgages in addition to or in place of creditors that make non-qualified mortgages if the agencies determine that applying the requirements to securitization sponsors rather than originators” and insert “residential mortgages (or particular types of residential mortgages) that are not qualified mortgages in addition to or in substitution for any or all of the requirements that apply to creditors that make such mortgages if the agencies jointly determine that applying the requirements to such securitizers”;

41. 41

    Change 41: Replaces “mortgage lenders” at the section 129C(l)(4)(A) with “creditors of residential mortgage loans that are not qualified mortgages”

    Replaces

    [struck: mortgage lenders][inserted: creditors of residential mortgage loans that are not qualified mortgages]

    Original wording

    (4) in subparagraph (A), strike “mortgage lenders” and insert “creditors of residential mortgage loans that are not qualified mortgages”; and

42. 42

    Change 42: Replaces “mortgage lenders, or” at the section 129C(l)(4) with “such creditors,”

    Replaces

    [struck: mortgage lenders, or][inserted: such creditors,]

    Original wording

    (A) strike “mortgage lenders, or” and insert “such creditors,”; and

43. 43

    Change 43: Inserts “, or otherwise serve the public interest” before the period at the end

    InsertsSection 129C(l)(4)

    Inserted: , or otherwise serve the public interest

    Original wording

    (B) before the period, insert “, or otherwise serve the public interest”.

44. 44

    Change 44: Inserts new text after section 128(a)(18) of the Truth in Lending Act (as added by section 214(a) of the bill)

    Inserts

    Inserted: (19) In the case of a residential mortgage loan, the total amount of interest that the consumer will pay over the life of the loan as a percentage of the principal of the loan. Such amount shall be computed assuming the consumer makes each monthly payment in full and on-time, and does not make any over-payments.

    Original wording

    After section 128(a)(18) of the Truth in Lending Act (as added by section 214(a) of the bill) add the following:

45. 45

    Change 45: Strikes section 214(b)

    Strikes

    In H.R. 1728 · Reported in House

    Struck: (b) Timing.--Section 128(b) of the Truth in Lending Act (15 U.S.C. 1638(b)) is amended by adding at the end the following new paragraph:

    Struck: "(4) Residential mortgage loan disclosures.--In the case of a residential mortgage loan, the information required to be disclosed under subsection (a) with respect to such loan shall be disclosed before the earlier of--

    Struck: "(A) the time required under the first sentence of paragraph (1); or

    Struck: "(B) the end of the 3-business-day period beginning on the date the application for the loan from a consumer is received by the creditor.".

    Original wording

    Strike section 214(b).

46. 46

    Change 46: Inserts new text after section 128(f)(1)(F) of the Truth in Lending Act (as added by section 215 of the bill)

    Inserts

    Inserted: (G) The names, addresses, telephone numbers, and Internet addresses of counseling agencies or programs reasonably available to the consumer that have been certified or approved and made publicly available by the Secretary of Housing and Urban Development or a State housing finance authority (as defined in section 1301 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989).

    Inserted: In subsection (c) of section 218, insert ", including an analysis of the exceptions and adjustments authorized in section 129C(l)(3)(A) of the Truth in Lending Act and a recommendation on whether a uniform standard is needed" before the period at the end.

    Original wording

    In subsection (f)(1) of section 128 of the Truth in Lending Act (as added by section 215 of the bill), insert after subparagraph (F) the following new subparagraph (and redesignate the subsequent subparagraph accordingly):

47. 47

    Change 47: Inserts new text at the end of section 218

    Inserts

    In H.R. 1728 · Reported in House

    (c) Examination Related to Certain Credit Risk Retention Provisions.--The report required by subsection (b) shall also include an analysis by the Comptroller General of the effect on the capital reserves and funding of lenders of credit risk retention provisions for non-qualified mortgages.

    Inserted: (d) Analysis of Credit Risk Retention Provisions.--The report required by subsection (b) shall also include--

    Inserted: (1) an analysis by the Comptroller General of whether the credit risk retention provisions have significantly reduced risks to the larger credit market of the repackaging and selling of securitized loans on a secondary market; and

    Inserted: (2) recommendations to the Congress on adjustments that should be made, or additional measures that should be undertaken.

    Original wording

    At the end of section 218, insert the following new subsection:

48. 48

    Change 48: Replaces “section 219” at the section 130(e) of the Truth in Lending Act (as amended by section 219 of the bill) with “section 220”

    Replaces

    [struck: section 219][inserted: section 220]

    Original wording

    In section 130(e) of the Truth in Lending Act (as amended by section 219 of the bill), strike “section 219” and insert “section 220”.

49. 49

    Change 49: Inserts new text after section 220(b)

    Inserts

    In H.R. 1728 · Reported in House

    "(ii) for the family's reasonable moving costs, including security deposit costs; except that this subparagraph and the provisions related to foreclosure in subparagraph (C) shall not affect any State or local law that provides longer time periods or other additional protections for tenants.".

    Inserted: (c) Landlord Notice to Tenants.--Notwithstanding the law of any State or the terms of any consumer residential lease, each person who owns a dwelling or residential real property--

    Inserted: (1) which is leased to a bona fide tenant (including a tenancy terminable at will), or which the landlord offers to lease to a prospective tenant; and

    Inserted: (2) which, pursuant to the terms of a valid loan to such person which is secured by such dwelling or property, is or becomes subject to foreclosure or with respect to which the person is in default, shall promptly notify any such tenant or prospective tenant of the circumstances prevailing with respect to such property and the effect of any such default or foreclosure. The requirements of this subsection shall have no effect on any State or local law that provides additional notice or other additional protections for tenants.

    Original wording

    In section 220 of the bill, insert after subsection (b) the following new subsection (and redesignate succeeding subsections accordingly):

50. 50

    Change 50: Replaces “broker” at the section 103(aa)(4)(B) with “originator”

    Replaces

    [struck: broker][inserted: originator]

    Original wording

    (1) strike “broker” and insert “originator”; and

51. 51

    Change 51: Replaces “the originator” at the section 103(aa)(4)(B) with “the creditor”

    Replaces

    [struck: the originator][inserted: the creditor]

    Original wording

    (2) strike “the originator” and insert “the creditor”.

52. 52

    Change 52: Replaces “(4)” at the section 103(dd) with “(2)”

    Replaces

    [struck: (4)][inserted: (2)]

    Original wording

    (A) strike “(4)” and insert “(2)”; and

53. 53

    Change 53: Replaces “may” at the section 103(dd) with “shall”

    Replaces

    [struck: may][inserted: shall]

    Original wording

    (B) strike “may” and insert “shall”;

54. 54

    Change 54: Renumbers paragraphs (2) and (3) as (3) and (4)

    RenumbersSection 103(dd)
    Original wording

    (3) redesignate paragraphs (2) and (3) as paragraphs (3) and (4), respectively;

55. 55

    Change 55: Rewrites section 103(dd)(1)

    Replaces

    Removes section 103(dd)(1).

    Inserted: (1) Up to and including 2 bona fide discount points payable by the consumer in connection with the mortgage, but only if the interest rate from which the mortgage's interest rate will be discounted does not exceed by more than 1 percentage point--

    Inserted: (A) the required net yield for a 90-day standard mandatory delivery commitment for a reasonably comparable loan from either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, whichever is greater; or

    Inserted: (B) if secured by a personal property loan, the average rate on a loan in connection with which insurance is provided under title I of the National Housing Act (12 U.S.C. 1702 et seq.).

    Inserted: (2) Unless 2 bona fide discount points have been excluded under paragraph (1), up to and including 1 bona fide discount point payable by the consumer in connection with the mortgage, but only if the interest rate from which the mortgage's interest rate will be discounted does not exceed by more than 2 percentage points--

    Inserted: (A) the required net yield for a 90-day standard mandatory delivery commitment for a reasonably comparable loan from either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, whichever is greater; or

    Inserted: (B) if secured by a personal property loan, the average rate on a loan in connection with which insurance is provided under title I of the National Housing Act (12 U.S.C. 1702 et seq.).

    Inserted: In subsection (r) of section 129 of the Truth in Lending Act, as added by section 303(c) of the bill, strike "Deferral Fees Prohibited.--A creditor" and insert "Deferral Fees Prohibited.--

    Inserted: "(1) Creditors.--A creditor".

    Inserted: At the end of paragraph (1) of subsection (r) of section 129 of the Truth in Lending Act, (as so designated by the preceding amendment) insert the following new paragraphs:

    Inserted: "(2) Third parties.-- A third-party may not charge a consumer any fee to--

    Inserted: "(A) modify, renew, extend, or amend a high-cost mortgage, or defer any payment due under the terms of such mortgage;

    Inserted: "(B) negotiate with a creditor on behalf of a consumer, the modification, renewal, extension, or amendment of a high-cost mortgage; or

    Show 5 more inserted paragraphsShow less

    Inserted: "(C) negotiate with a creditor on behalf of a consumer, the deferral of any payment due under the terms of such mortgage, unless the modification renewal, extension or amendment results in a significantly lower annual percentage rate on the mortgage, or a significant reduction in the amount of the outstanding principal on the mortgage, for the consumer and then only if the amount of the fee is comparable to fees imposed for similar transactions in connection with consumer credit transactions that are secured by a consumer's principal dwelling and are not high-cost mortgages.

    Inserted: "(3) Enforcement.--Section 130 shall be applied for purposes of paragraph (2) by--

    Inserted: "(A) substituting 'third party' for 'creditor'each place such term appears; and

    Inserted: "(B) substituting 'any fee charged by a third party' for 'finance charge' each place such term appears.".

    Inserted: In subsection (g)(3)(B)(ix) of section 4 of the Department of Housing and Urban Development Act (as added by section 402) insert ", including underdeveloped areas that lack basic water and sewer systems, electricity services, and safe, sanitary housing" before the period at the end.

    Original wording

    (5) strike paragraph (1) and insert the following:

56. 56

    Change 56: Inserts “, and the role of computer registries of mortgages, including those used for trading mort…” before the period at the end

    InsertsSection 406

    In H.R. 1728 · Reported in House

    The Secretary of Housing and Urban Development shall conduct an extensive study of the root causes of default and foreclosure of home loans, using as much empirical data as are available. The study shall also examine the role of escrow accounts in helping prime and nonprime borrowers to avoid defaults and foreclosures. Not later than 12 months after the date of the enactment of this Act, the Secretary shall submit to the Congress a preliminary report regarding the study. Not later than 24 months after such date of enactment, the Secretary shall submit a final report regarding the results of the study, which shall include any recommended legislation relating to the study, and recommendations for best practices and for a process to identify populations that need counseling the most[inserted: , and the role of computer registries of mortgages, including those used for trading mortgage loans].

    Original wording

    In section 406, insert “, and the role of computer registries of mortgages, including those used for trading mortgage loans” before the period at the end

57. 57

    Change 57: Adds SEC. 407. DEFAULT AND FORECLOSURE DATABASE after section 406

    Adds a section

    In H.R. 1728 · Reported in House

    The Secretary of Housing and Urban Development shall conduct an extensive study of the root causes of default and foreclosure of home loans, using as much empirical data as are available. The study shall also examine the role of escrow accounts in helping prime and nonprime borrowers to avoid defaults and foreclosures. Not later than 12 months after the date of the enactment of this Act, the Secretary shall submit to the Congress a preliminary report regarding the study. Not later than 24 months after such date of enactment, the Secretary shall submit a final report regarding the results of the study, which shall include any recommended legislation relating to the study, and recommendations for best practices and for a process to identify populations that need counseling the most.

    Inserted: SEC. 407. DEFAULT AND FORECLOSURE DATABASE.

    Inserted: (a) Establishment.--The Secretary of Housing and Urban Development, in consultation with the Federal agencies responsible for regulation of banking and financial institutions involved in residential mortgage lending and servicing, shall establish and maintain a database of information on foreclosures and defaults on mortgage loans for one- to four-unit residential properties and shall make such information publicly available.

    Inserted: (b) Census Tract Data.--Information in the database shall be collected, aggregated, and made available on a census tract basis.

    Inserted: (c) Requirements.--Information collected and made available through the database shall include--

    Inserted: (1) the number and percentage of such mortgage loans that are delinquent by more than 30 days;

    Inserted: (2) the number and percentage of such mortgage loans that are delinquent by more than 90 days;

    Inserted: (3) the number and percentage of such properties that are real estate-owned;

    Inserted: (4) number and percentage of such mortgage loans that are in the foreclosure process;

    Inserted: (5) the number and percentage of such mortgage loans that have an outstanding principal obligation amount that is greater than the value of the property for which the loan was made; and

    Inserted: (6) such other information as the Secretary considers appropriate.

    Original wording

    After section 406, insert the following new section (and redesignate succeeding sections in title IV accordingly):

58. 58

    Change 58: Replaces “clauses” at the section 6(l)(1)(B) of the Real Estate Settlement Procedures Act of 1974 (as added by section 503 of the bill) with “clause”

    Replaces

    [struck: clauses][inserted: clause]

    Original wording

    In section 6(l)(1)(B) of the Real Estate Settlement Procedures Act of 1974 (as added by section 503 of the bill), strike “clauses” and insert “clause”.

59. 59

    Change 59: Rewrites section 129D(b)(3)

    ReplacesSection 129D(b)(3) of the Truth in Lending Act (as added by section 501 of the bill)

    Removes section 129D(b)(3).

    Inserted: (3) the transaction is secured by a first mortgage or lien on the consumer's principal dwelling having an original principal obligation amount that--

    Inserted: (A) does not exceed the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date such interest rate set, pursuant to the sixth sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), and the annual percentage rate will exceed the average prime offer rate for a comparable transaction by 1.5 or more percentage points; or

    Inserted: (B) exceeds the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date such interest rate set, pursuant to the sixth sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), and the annual percentage rate will exceed the average prime offer rate for a comparable transaction by 2.5 or more percentage points; or

    Original wording

    In section 129D(b) of the Truth in Lending Act (as added by section 501 of the bill), amend paragraph (3) to read as follows:

60. 60

    Change 60: Renumbers sections (b) and (5) and (as added by section 505 of the bill) as (b) and (4)

    RenumbersWherever the words appear
    Original wording

    Redesignate section 128(b)(5) of the Truth in Lending Act (as added by section 505 of the bill) as section 128(b)(4)

61. 61

    Change 61: Strikes section 603(a)(2)(B)

    Strikes

    In H.R. 1728 · Reported in House

    Struck: (B) by striking the period at the end of paragraph (4) and inserting ";"; and

    Original wording

    Strike section 603(a)(2)(B) (and redesignate succeeding subparagraphs accordingly).

62. 62

    Change 62: Replaces “; and” at the section 1103(a)(5) with new text

    Replaces

    Struck: ; and

    Original wording

    (1) in paragraph (5), strike “; and” and insert a period; and

63. 63

    Change 63: Strikes section 1103(a)(4)

    Strikes

    Removes section 1103(a)(4).

    Original wording

    (2) strike paragraph (4)

64. 64

    Change 64: Renumbers paragraph (6) as (4)

    RenumbersSection 1103(a)(4)
    Original wording

    redesignate paragraph (6) as paragraph (4).

65. 65

    Change 65: Replaces “10 certified” at the section 1121 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(e)(4) of the bill) with “15 certified”

    Replaces

    [struck: 10 certified][inserted: 15 certified]

    Original wording

    In section 1121 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(e)(4) of the bill), strike “10 certified” and insert “15 certified”.

66. 66

    Change 66: Inserts “, in consultation with the Appraisal Standards Board of the Appraisal Foundation and othe…” after “member agencies”

    InsertsSection 1125(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(q) of the bill)

    …member agencies[inserted: , in consultation with the Appraisal Standards Board of the Appraisal Foundation and other interested parties,]…

    Original wording

    In section 1125(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(q) of the bill), after “member agencies” insert the following: “, in consultation with the Appraisal Standards Board of the Appraisal Foundation and other interested parties,”.

67. 67

    Change 67: Replaces “institution or regulatory” at the section 1125(c)(1) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(q) of the bill) with “institution regulatory”

    Replaces

    [struck: institution or regulatory][inserted: institution regulatory]

    Original wording

    In section 1125(c)(1) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(q) of the bill), strike “institution or regulatory” and insert “institution regulatory”.

68. 68

    Change 68: Rewrites section 1126(a)(b)(c)

    ReplacesSection 1126(a)(b)(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(r) of the bill)

    Removes section 1126(a)(b)(c).

    Inserted: (a) General Prohibition.--In conjunction with the purchase of a consumer's principal dwelling, broker price opinions may not be used as the primary basis to determine the value of a piece of property for the purpose of a loan origination of a residential mortgage loan secured by such piece of property.

    Inserted: (b) Broker Price Opinion Defined.--For purposes of this section, the term 'broker price opinion' means an estimate prepared by a real estate broker, agent, or sales person that details the probable selling price of a particular piece of real estate property and provides a varying level of detail about the property's condition, market, and neighborhood, and information on comparable sales, but does not include an automated valuation model, as defined in section 1125(c).

    Original wording

    In section 1126 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (as added by section 603(r) of the bill), strike subsections (a), (b), and (c), and insert the following:

69. 69

    Change 69: Inserts new text at the end of section 604

    Inserts

    In H.R. 1728 · Reported in House

    (b) Report.--Before the end of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report on the study under subsection (a) to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for administrative or legislative action, at the Federal or State level, as the Comptroller General may determine to be appropriate.

    Inserted: (c) Additional Study Required.--The Comptroller General shall conduct an additional study to determine the effects that the changes to the seller-guide appraisal requirements of Fannie Mae and Freddie Mac contained in the Home Valuation Code of Conduct have on small business, like mortgage brokers and independent appraisers, and consumers, including the effect on the--

    Inserted: (1) quality and costs of appraisals;

    Inserted: (2) length of time for obtaining appraisals;

    Inserted: (3) impact on consumer protection, especially regarding maintaining appraisal independence, abating appraisal inflation, and mitigating acts of appraisal fraud;

    Inserted: (4) structure of the appraisal industry, especially regarding appraisal management companies, fee-for-service appraisers, and the regulation of appraisal management companies by the states; and

    Inserted: (5) impact on mortgage brokers and other small business professionals in the financial services industry.

    Inserted: (d) Additional Report.--Before the end of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit an additional report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing the findings and conclusions of the Comptroller General with respect to the study conducted pursuant to subsection (c). Such additional report shall take into consideration the Small Business Administration's views on how small businesses are affected by the Home Valuation Code of Conduct.

    Inserted: Insert after title VII the following new title (and conform the table of contents accordingly):

    Inserted: TITLE VIII--REPORTS

    Inserted: SEC. 801. GAO STUDY REPORT ON GOVERNMENT EFFORTS TO COMBAT MORTGAGE FORECLOSURE RESCUE SCAMS AND LOAN MODIFICATION FRAUD.

    Inserted: (a) Study.--The Comptroller General of the United States shall conduct a study of the current inter-agency efforts of the Secretary of the Treasury, the Secretary of Housing and Urban Development, the Attorney General, and the Federal Trade Commission to crackdown on mortgage foreclosure rescue scams and loan modification fraud in order to advise the Congress to the risks and vulnerabilities of emerging schemes in the loan modification arena.

    Inserted: (b) Report.--

    Show 20 more inserted paragraphsShow less

    Inserted: (1) In general.--The Comptroller General shall submit a report to the Congress on the study conducted under subsection (a) containing such recommendations for legislative and administrative actions as the Comptroller General may determine to be appropriate in addition to the recommendations required under paragraph (2).

    Inserted: (2) Specific topics.--The report made under paragraph (1) shall include--

    Inserted: (A) an evaluation of the effectiveness of the inter-agency task force current efforts to combat mortgage foreclosure rescue scams and loan modification fraud scams;

    Inserted: (B) specific recommendations on agency or legislative action that are essential to properly protect homeowners from mortgage foreclosure rescue scams and loan modification fraud scams; and

    Inserted: (C) the adequacy of financial resources that the Federal Government is allocating to--

    Inserted: (i) crackdown on loan modification and foreclosure rescue scams; and

    Inserted: (ii) the education of homeowners about fraudulent scams relating to loan modification and foreclosure rescues.

    Inserted: Insert after title VIII the following new title (and conform the table of contents accordingly):

    Inserted: TITLE IX--MULTIFAMILY MORTGAGE RESOLUTION

    Inserted: SEC. 901. MULTIFAMILY MORTGAGE RESOLUTION PROGRAM.

    Inserted: (a) Establishment.--Subject to subsection (e), the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, shall develop a program to stabilize multifamily properties which are delinquent, at risk of default or disinvestment, or in foreclosure.

    Inserted: (b) Focus of Program.--The program developed under this section shall be used to ensure the protection of current and future tenants of at risk multifamily properties, where feasible, by--

    Inserted: (1) creating sustainable financing of such properties that is based on--

    Inserted: (A) the current rental income generated by such properties; and

    Inserted: (B) the preservation of adequate operating reserves;

    Inserted: (2) maintaining the level of Federal, State, and city subsidies in effect as of the date of enactment of this Act; and

    Inserted: (3) facilitating the transfer, when necessary, of such properties to responsible new owners.

    Inserted: (c) Coordination.--The Secretary of the Treasury shall in carrying out the program developed under this section coordinate with the Secretary of Housing and Urban Development, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Federal Housing Finance Agency, and any other Federal Government agency that the Secretary considers appropriate.

    Inserted: (d) Definition.--For purposes of this section, the term "multifamily properties" means a residential structure that consists of 5 or more dwelling units.

    Inserted: (e) Authority.--This section shall not limit the ability of the Secretary of the Treasury to use any existing authority to carry out the program under this section.

    Original wording

    In section 604, add at the end the following:

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

As printed