S.Amdt. 1028

1. Inserts new text wherever appropriate

   Inserts

   Inserted: SEC. ___ PROHIBITION ON STEERING.

   Inserted: (a) In General.--The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after section 129 the following new section:

   Inserted: "SEC. 129A. PROHIBITION ON STEERING WITH RESPECT TO HOME MORTGAGE LOANS.

   Inserted: "(a) In General.--In connection with a home mortgage loan, a mortgage broker or creditor may not--

   Inserted: "(1) steer, counsel, or direct a consumer to rates, charges, principal amount, or prepayment terms that are more expensive for that which the consumer qualifies; or

   Inserted: "(2) make, provide, or arrange for any consumer credit transaction secured by a consumer's principal dwelling that is more expensive than that for which the consumer qualifies.

   Inserted: "(b) Duties to Consumers.--If unable to suggest, offer, or recommend to a consumer a home loan that is not more expensive than that for which the consumer qualifies, a mortgage originator shall--

   Inserted: "(1) based on the information reasonably available and using the skill, care, and diligence reasonably expected for a mortgage originator, originate or otherwise facilitate a suitable home mortgage loan by another creditor to a consumer, if permitted by and in accordance with all otherwise applicable law; or

   Inserted: "(2) disclose to a consumer--

   Inserted: "(A) that the creditor does not offer a home mortgage loan that is not more expensive than a loan for which the consumer qualifies, but that other creditors may offer such a loan; and

   Inserted: "(B) the reasons that the products and services offered by the mortgage originator are not available to or reasonably advantageous for the consumer.

   Inserted: "(c) Prohibited Conduct.--In connection with a home mortgage loan, a mortgage originator may not--

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   Inserted: "(1) mischaracterize the credit history of a consumer or the home loans available to a consumer;

   Inserted: "(2) mischaracterize or suborn the mischaracterization of the appraised value of the property securing the extension of credit; and

   Inserted: "(3) 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, discourage a consumer from seeking a home mortgage loan from another creditor or with another mortgage originator.

   Inserted: "(d) Mortgage Broker Defined.--For purposes of this section, the term 'mortgage broker' means any person who is defined as a mortgage broker under applicable State law.".

   Inserted: (b) Clerical Amendment.--The table of sections for the Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after the item relating to section 129 the following new item:

   Inserted: "Sec. 129A. Prohibition on steering with respect to home mortgage loans.".

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

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As printed