Introduced
by
To prohibit mortgage lenders from financing single premium credit insurance as part of a subprime mortgage; offering loans that do not consider the borrower's ability to repay the loan; “flipping” a home loan without a reasonable and tangible net benefit to the borrower (defined as repeatedly refinancing a borrower for the sole purpose of generating fee income); encouraging a borrower to default on a home loan; charging late fees that exceed certain limits specified in the bill; charging fees for loan payoff statements; unilaterally accelerating the repayment period of home loans; financing loan points and fees; imposing prepayment penalties; making “negative amortization” loans; and imposing higher “default interest” rates. The bill would also prohibit "steering" practices that encourage borrowers who are qualified for prime mortgages towards subprime rates, charges, principal amounts, or prepayment terms that are disadvantageous to the borrower.
Referred to the Committee on Banking and Financial Services
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that revises details based on extensive testimony and "fine tuning." The main substance of the bill as previously described is not changed.
The substitute passed by voice vote
Amendment offered
by
To prohibit mortgage lenders from charging an application fee.
The amendment passed by voice vote
Amendment offered
by
To tie-bar the bill to a package of Republican bills limiting the imposition of some special assessments, increasing penalties for mortgage fraud, and repealing the .75 percent real estate transfer tax (House Bills 4264, 4409 - 4411, 5642-5647, 6128 and 6129). "Tie-bar" means this bill cannot become law unless those ones do also.
The amendment failed by voice vote
Amendment offered
by
To strip out provisions requiring a lender to make a judgement as to whether a loan is "reasonably advantageous" to a borrower, and making the lender liable to be sued by the borrower on this basis.
The amendment failed by voice vote
Amendment offered
by
To establish as an affirmative defense for a lender sued by a borrower for violation of the these regulations if the lender relied upon deliberate misstatements, misrepresentations, or omissions made by the borrower in a home loan application or other loan document.
The amendment passed by voice vote
Passed in the House 81 to 28 (details)
To prohibit mortgage lenders from offering loans that do not consider the borrower's ability to repay the loan; “flipping” a home loan without a reasonable and tangible net benefit to the borrower (defined as repeatedly refinancing a borrower for the sole purpose of generating fee income); charging late fees that exceed certain limits specified in the bill; imposing prepayment penalties; mischaracterizing a home's appraisal or a borrower's credit history, and more. The bill would also prohibit "steering" a consumer to rates, charges, principal amounts, or prepayment terms that were not judged by the lender to be "reasonably advantageous" to the borrower, and make the lender liable to being sued on this basis.
Referred to the Committee on Banking and Financial Institutions
