An amendment numbered 4 printed in House Report 111-98 to reduce the grace period for renters renting a unit in violation of a mortgage contract when that property is sold to a purchaser who intends to use such property as an owner-occupied unit from 90 days to 30 days. Additionally, creditors may only accelerate debt repayment in certain circumstances.

1. 1

   Change 1: Inserts “(i)” before “such notice to vacate”

   InsertsSection 220(a)(2)(B)

   In H.R. 1728 · Reported in House

   (B) [inserted: (i) ]such notice to vacate shall be provided by the purchaser to the tenant in such unit at least 90 days before the effective date of such notice.

   Original wording

   (1) insert “(i)” before “such notice to vacate”; and

2. 2

   Change 2: Inserts “; and (ii) with respect to a single-family residence for which the borrower rented the un…” before the period

   InsertsSection 220(a)(2)(B)

   In H.R. 1728 · Reported in House

   Struck: (B) such notice to vacate shall be provided by the purchaser to the tenant in such unit at least 90 days before the effective date of such notice.

   Inserted: (B) such notice to vacate shall be provided by the purchaser to the tenant in such unit at least 90 days before the effective date of such notice; and (ii) with respect to a single-family residence for which the borrower rented the unit in violation of the mortgage contract, such notice to vacate shall be provided by the purchaser to the tenant in such unit at least 30 days before the effective date of such notice, and shall include a copy of the mortgage contract prohibiting the rental of the unit.

   Original wording

   (2) insert before the period the following: “; and (ii) with respect to a single-family residence for which the borrower rented the unit in violation of the mortgage contract, such notice to vacate shall be provided by the purchaser to the tenant in such unit at least 30 days before the effective date of such notice, and shall include a copy of the mortgage contract prohibiting the rental of the unit”.

3. 3

   Change 3: Rewrites subsection (l) of section 129 of subparagraph (B) of paragraph (2) of subsection (a) of section 220

   ReplacesSubsection (l) of section 129 of subparagraph (B) of paragraph (2) of subsection (a) of section 220 of the Truth in Lending Act (as added by section 303 of the bill)

   Removes subsection (l) of section 129 of subparagraph (B) of paragraph (2) of subsection (a) of section 220.

   Inserted: (l) Acceleration of Debt.--No high-cost mortgage may contain a provision which permits the creditor to accelerate the indebtedness, except when repayment of the loan has been accelerated by default in payment, or pursuant to a due-on-sale provision, or pursuant to a material violation of some other provision of the loan document unrelated to payment schedule.

   Original wording

   Amend section 129(l) of the Truth in Lending Act (as added by section 303 of the bill) to read as follows:

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

As printed