II
110th CONGRESS
1st Session
S. 2153
IN THE SENATE OF THE UNITED STATES
October 4, 2007
Mr. Reed introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To amend the Truth in Lending Act to enhance disclosure of the terms of home mortgage loans, and for other purposes.
Short title
This Act may be cited as the
Mortgage Disclosure Improvement Act of
2007
.
Enhanced mortgage loan disclosures
Section 128(b)(2) of the Truth in Lending Act (15 U.S.C. 1638(b)(2)) is amended—
by inserting
(A)
before In the
;
by striking
a residential mortgage transaction, as defined in section 103(w)
and inserting any extension of credit that is secured by the dwelling of
a consumer
;
by striking
shall be made in accordance
and all that follows through
extended, or
;
by striking
If the
and all that follows through the end of the paragraph and
inserting the following:
In the case of an extension of credit that is secured by the dwelling of a consumer, in addition to the other disclosures required by subsection (a), the disclosures provided under this paragraph shall—
state in conspicuous type size and
format, the following: You are not required to complete this agreement
merely because you have received these disclosures or signed a loan
application.
; and
be furnished to the borrower not later than 7 business days before the date of consummation of the transaction, and at the time of consummation of the transaction, subject to subparagraph (D).
In the case of an extension of credit that is secured by the dwelling of a consumer, under which the annual rate of interest is variable, or with respect to which the regular payments may otherwise be variable, in addition to the other disclosures required by subsection (a), the disclosures provided under this paragraph shall—
label the payment schedule as
follows: Payment Schedule: Payments Will Vary Based on Interest Rate
Changes
; and
state the maximum amount of the
regular required payments on the loan, based on the maximum interest rate
allowed, introduced with the following language in conspicuous type size and
format: Your payment can go as high as ___
, the blank to be
filled in with the maximum possible payment amount.
In any case in which the disclosure statement provided 7 business days before the date of consummation of the transaction contains an annual percentage rate of interest that is no longer accurate, as determined under section 107(c), the creditor shall furnish an additional, corrected statement to the borrower, not later than 3 business days before the date of consummation of the transaction.
.
Civil liability
Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended—
in paragraph
(2)(A)(iii), by striking not less than $200 or greater than
$2,000
and inserting $5,000, such amount to be adjusted annually
based on the consumer price index, to maintain current value
;
and
in the penultimate sentence of the undesignated matter following paragraph (4)—
by striking only for
and
inserting for
;
by striking
section 125 or
and inserting section 122, section
125,
;
by inserting
or section 128(b),
after 128(a),
; and
by inserting
or section 128(b)
before the period.