H.R. 2794

Promoting Mortgage Responsibility Act

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I

111th CONGRESS

1st Session

H. R. 2794

IN THE HOUSE OF REPRESENTATIVES

June 10, 2009

Ms. Fudge introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Truth in Lending Act to prohibit prepayment penalties, and for other purposes.

1.

Short title

This Act may be cited as the Promoting Mortgage Responsibility Act.

2.

Prohibition on prepayment penalties

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

129B.

Prohibition on prepayment penalties

(a)

In general

No prepayment fees or penalties may be charged or collected under the terms of any consumer credit transaction secured by an owner-occupied principal dwelling of the consumer.

(b)

Unenforceable

Any prepayment penalty in violation of subsection (a) shall be unenforceable.

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