S 2452 · 110th Congress 2007–2009, ended

Home Ownership Preservation and Protection Act of 2007

Introduced Dec 12, 2007 Originated Senate Sponsor Christopher J. Dodd D-CT

Fact sheet

Latest action · Dec 12, 2007 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S15236-15244)

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedDec 12, 2007
  2. Passed SenateNot reached
  3. Passed HouseNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Home Ownership Preservation and Protection Act of 2007 - Amends the Truth in Lending Act to redefine high-cost mortgages and attendant lending practices. Sets forth a new formula for points and fees for open-end loans, and provides for bona fide discount points.

Prohibits: (1) prepayment penalties; (2) balloon payments; (3) yield spread premiums; (4) acceleration or debt; (5) evasions, structuring of transactions, and reciprocal arrangements; and (6) modification and deferral fees.

Prohibits creditors from financing, in connection with a high-cost mortgage, any prepayment fee or penalty, or any points or fees.

Prohibits an originator from making or arranging a high-cost mortgage loan that involves a refinancing of a prior existing home mortgage loan unless the new loan will provide a net tangible benefit to the consumer.

Sets forth prerequisites for subprime and nontraditional home loans, including: (1) an assessment of ability to pay; (2) a requirement of tax and insurance escrows; (3) prohibition of prepayment penalties and yield-spread premiums; and (4) a requirement of net tangible benefit to the consumer in the case of a subprime or nontraditional mortgage loan transaction that involves refinancing of an existing home mortgage.

Imposes a duty of care and a duty of good faith and fair dealing upon mortgage brokers and lenders, appraisers, and lenders and loan servicers.

Empowers state Attorneys General to enforce this Act.

Subjects lenders, loan servicers, creditors and mortgage brokers to civil liability for violations of this Act. Increases the amount of the penalty that may be awarded.

Amends the Real Estate Settlement Procedures Act of 1974 to require a transferor of loan servicing before the transfer tonotify the borrower of the status of the account and its full payment history.

Amends the Housing and Urban Development Act of 1968 to revise requirements for foreclosure prevention counseling.

Amends the Truth in Lending Act to expand from three to six years an obligor's right of rescission.

Imposes liability for monetary damages upon assignees of subprime or nontraditional loans for violations of this Act.

Sets forth a remedy in lieu of rescission for certain violations.

Prohibits mandatory arbitration.

Subjects a lender to liability for certain actions, omissions, and representations made by a mortgage broker in connection with a high-cost mortgage, a subprime mortgage, or a nontraditional mortgage.

Amends the Federal Trade Commission Act to require the federal banking agencies and the National Credit Union Administration Board each to establish a separate division of consumer affairs protection and regulations with respect to depository institutions and federal credit unions.

Authorizes appropriations to employ additional agents of the Federal Bureau of Investigation and additional dedicated prosecutors at the Department of Justice to coordinate prosecution of mortgage fraud efforts with the offices of the U.S. Attorneys.

Cosponsors 19

Members who signed on, in the order they did. Signatures ran from Dec 12, 2007 to Mar 10, 2008, with 15 there on the day it was introduced.

SeatCosponsorSigned on
D-MNAmy KlobucharOriginalDec 12, 2007
D-MDBarbara A. MikulskiOriginalDec 12, 2007
D-CABarbara BoxerOriginalDec 12, 2007
D-NYCharles E. SchumerOriginalDec 12, 2007
D-MOClaire McCaskillOriginalDec 12, 2007
D-HIDaniel K. AkakaOriginalDec 12, 2007
D-CADianne FeinsteinOriginalDec 12, 2007
D-MAEdward M. KennedyOriginalDec 12, 2007
D-RIJack ReedOriginalDec 12, 2007
D-MAJohn F. KerryOriginalDec 12, 2007
D-ILRichard J. DurbinOriginalDec 12, 2007
D-NJRobert MenendezOriginalDec 12, 2007
D-PARobert P. Casey Jr.OriginalDec 12, 2007
D-OHSherrod BrownOriginalDec 12, 2007
D-IATom HarkinOriginalDec 12, 2007
Show all 19 cosponsors

Actions 3

Everything that happened, newest first.

  1. Dec 12, 2007Introduced in Senate
  2. Dec 12, 2007Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S15236-15244)
  3. Dec 12, 2007Sponsor introductory remarks on measure. (CR S15235-15236)

Related bills 1

Companion bills and other measures the record links to this one.

BillTitleRelationshipLatest action
S 1299Borrower's Protection Act of 2007Related billMay 3, 2007

Subjects

Assigned by the Library of Congress. Policy area: Finance and Financial Sector.

Text 1

Each version as it was printed, newest first.

  1. Dec 12, 2007Introduced in Senate

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.