S.Amdt. 4135

SA 4135. Mr. LEVIN (for himself, Mr. Kaufman, and Mr. Reed) submitted
an amendment intended to be proposed to amendment SA 3789 proposed by
Mr. Brownback (for himself, Mr. Bond, and Mr. Inhofe) to the amendment
SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs.
Lincoln)) to the bill S. 3217, to promote the financial stability of
the United States by improving accountability and transparency in the
financial system, to end ``too big to fail'', to protect the American
taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of the amendment, add the following:

SEC. ____. PROHIBITION ON NEGATIVELY AMORTIZING MORTGAGES.

(a) Prohibition on Negatively Amortizing Mortgages.--
Section 129 of the Truth in Lending Act (15 U.S.C. 1639) is
amended by adding at the end following:
``(n) Prohibition on Negatively Amortizing Mortgages.--
``(1) In general.--Any person who sells, transfers, or
plans to sell or transfer at least 1,000 mortgages, mortgage-
backed securities, or similar financial instruments within a
calendar year shall not include or reference in any of such
financial instruments any mortgage in which the loan balance
may negatively amortize.
``(2) Applicability.--This subsection does not apply to
home equity conversion mortgages, as defined under section
255 of the National Housing Act (commonly referred to as
`reverse mortgages') that are otherwise regulated by a
Federal or State agency.
``(3) Rule of construction.--As used in this section, the
term `mortgage' shall not be construed to be restricted or
limited only to mortgages referred to in section 103(aa).''.
(b) Effective Date.--The requirements under subsection
(n)(1) of section 129 of the Truth in Lending Act (as added
by subsection (b)) shall take effect not later than 180 days
after the date of the enactment of this Act.
______