Section 1 Short title
This Act may be cited as the “Consumer Mortgage Choice Act”.
Consumer Mortgage Choice Act
A BILL
To amend the Truth in Lending Act to improve upon the definitions provided for points and fees in connection with a mortgage transaction.
Sec. 2 Definition of points and fees
Amendment to section 103 of TILA— Section 103(bb)(4) of the Truth in Lending Act (15 U.S.C. 1602(bb)(4)) is amended—
by striking “paragraph (1)(B)” and inserting “paragraph (1)(A) and section 129C”;
in subparagraph (A), by striking “except interest or the time-price differential” and inserting the following:
“except—
“(i) interest and the time-price differential; and
“(ii) the amount of any loan level price adjustment payment set by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, or similar governmental entity or government-sponsored enterprise”
by striking subparagraph (B) and inserting the following new subparagraph:
“(B) all compensation paid directly by a consumer to a mortgage originator, including a mortgage originator that is also the creditor in a table-funded transaction, but not including compensation paid by a mortgage originator or a creditor to an individual employed by the mortgage originator or creditor”
in subparagraph (C)—
by inserting “and insurance” after “taxes”;
in clause (ii), by inserting “, except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(7))” after “compensation”; and
by striking clause (iii) and inserting the following:
“(iii) the charge is—
“(I) a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or
“(II) a charge set forth in section 106(e)(1);”
in subparagraph (D)—
by striking “accident,”; and
by striking “or any payments” and inserting “and any payments”.
Amendment to section 129C of TILA— Section 129C of the Truth in Lending Act (15 U.S.C. 1639c) is amended—
in subsection (a)(5)(C), by striking “103” and all that follows through “or mortgage originator” and inserting “103(bb)(4)”; and
in subsection (b)(2)(C)(i), by striking “103” and all that follows through “or mortgage originator)” and inserting “103(bb)(4)”.