II
111th CONGRESS
1st Session
S. 911
IN THE SENATE OF THE UNITED STATES
April 28, 2009
Mr. Merkley 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 prohibit prepayment penalties, and for other purposes.
Short title
This Act may be cited as
the Promoting Mortgage Responsibility
Act
.
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:
Prohibition on prepayment penalties
No prepayment fees or penalties shall be charged or collected under the terms of any consumer credit transaction secured by an owner-occupied principal dwelling of the consumer. Any prepayment penalty in violation of this section shall be unenforceable.
.