Amends the Truth in Lending Act to: (1) set forth annual percentage rates that define a high-cost mortgage and related points and fees in order to apply high-cost loan protections to home purchase loans; (2) treat certain mortgage broker intermediaries as creditors covered by the Act; (3) subject a creditor to liability for mortgage broker violations of the Act; and (4) prohibit specified provisions and clauses in a high-cost mortgage.
Declares unenforceable under both Federal and State law a high-cost mortgage document in which blanks are left to be filled in after the contract is signed.
Prescribes requirements for conforming home loans. Prohibits creditors and mortgage brokers from directly or indirectly coercing, intimidating, or withholding compensation from an appraiser in order to influence the appraiser's independent judgment with respect to the value of real estate to be covered by a conforming home loan. Establishes criminal and civil penalties for violation of such prohibition.
Excludes from participation in mortgage-backed security pools high-cost or conforming home loans in violation of this Act.
Prescribes a formula for determining an alternative maximum amount of civil liability for credit or mortgage broker violations involving high-cost mortgages and conforming loans.