II
111th CONGRESS
1st Session
S. 912
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 prohibit yield spread premiums, and for other purposes.
Short title
This Act may be cited as
the Transparency for Homeowners Act of
2009
.
Prohibition on yield spread premiums
In general
No person shall provide, and no mortgage originator shall receive, directly or indirectly, any compensation that is based on, or varies with, the terms of any home mortgage loan (other than the amount of the loan).
Definitions
For purposes of this Act—
the term
home mortgage loan
means a loan secured by a mortgage or lien on
residential property;
the term
mortgage originator
means any creditor or other person,
including a mortgage broker or bank lender, who, for compensation or in
anticipation of compensation, engages either directly or indirectly in
the—
acceptance of applications for home mortgage loans;
solicitation of home mortgage loans on behalf of borrowers;
negotiation of terms or conditions of home mortgage loans on behalf of borrowers or lenders; or
negotiation of sales of existing home mortgage loans to institutional or noninstitutional lenders; and
the term
residential property
means a 1–4 family, owner-occupied
residence, including a 1-family unit in a condominium project, a membership
interest and occupancy agreement in a cooperative housing project, and a
manufactured home and the lot on which the home is situated.