Section 1 Short title
This Act may be cited as the “Mortgage Sale Transparency Act of 2017”.
Mortgage Sale Transparency Act of 2017
A BILL
To amend the Truth in Lending Act to create additional requirements for original and new creditors of mortgage loans in the case of a sale, transfer, or assignment of a mortgage loan, and for other purposes.
Sec. 2 Additional requirements for original and new creditors of mortgage loans in the case of a sale, transfer, or assignment of a mortgage loan
Section 131(g) of the Truth in Lending Act (15 U.S.C. 1641(g)) is amended—
by redesignating paragraph (2) as paragraph (3); and
by inserting after paragraph (1) the following new paragraph:
“(2) Additional requirements
“(A) Notice from original creditor—In addition to other disclosures required by this subchapter, not later than 90 days before the date on which a creditor sells, transfers, or assigns a mortgage loan to another creditor, the original creditor shall notify the borrower in writing of such sale, transfer, or assignment.
“(B) No borrower liability in case of error in transfer—With respect to a mortgage loan described in paragraph (1), the borrower of such mortgage loan may not be subject to a financial penalty from the original creditor or the creditor that is the new owner or assignee of such mortgage loan if either creditor makes an error, as determined by the Bureau, in the sale, transfer, or assignment of such mortgage loan.
“(C) Misdirected mortgage loan payments—During the 90-day period beginning on the date on which a mortgage loan is sold, transferred, or assigned to another creditor, a borrower of the mortgage loan that submits a payment on such mortgage loan to the original creditor on or before the due date for such payment may not be subject to a financial penalty for a late payment from the creditor that is the new owner or assignee of the mortgage loan.”