HR 1077 · 113th Congress 2013–2015, ended

Consumer Mortgage Choice Act

Fact sheet

Latest action · Mar 12, 2013 Referred to the House Committee on Financial Services.

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. IntroducedMar 12, 2013
  2. Passed HouseNot reached
  3. Passed SenateNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Consumer Mortgage Choice Act - Amends the Truth in Lending Act with respect to requirements for disclosure to a consumer of points and fees information about a consumer credit transaction, secured by the consumer's principal dwelling, but which is not a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan, when the total points and fees the consumer must pay at or before closing will exceed 8% percent of the total loan amount or $400, whichever is greater. (Such consumer credit transactions might include an equity credit line to which consumer purchases or leases may be charged.)

Excludes from the computation of such points and fees: (1) the amount of any loan level price adjustment payment set by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal Housing Administration (FHA), or similar government entity or government-sponsored enterprise; (2) any compensation paid by a mortgage originator or a creditor to an individual person employed by the mortgage originator or creditor; and (3) any escrow for future payment of insurance.

Modifies the inclusion in the computation of points and fees of all compensation paid to mortgage brokers. Specifies instead 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.

Modifies the criteria for exclusion from the computation of points and fees of certain reasonable charges elsewhere exempted from the computation of the finance charge in extensions of credit secured by an interest in real property. Excludes from points and fees any such reasonable charges even though a creditor receives compensation, but only in so far as the creditor or its affiliate retains the compensation as a result of their participation in an affiliated business arrangement.

(An "affiliated business arrangement" is one in which: (1) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1% in a provider of settlement services; and (2) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the provider's selection.)

Revises the additional requirement that such a reasonable charge be paid to a third party unaffiliated with the creditor. Requires the charge to be: (1) a bona fide third party charge not retained by the mortgage originator, creditor, or an affiliate; or (2) a fee or premium for title examination, title insurance, or similar purposes.

Modifies the conditions under which federal departments and agencies may exempt refinancings under a streamlined refinancing from an income verification requirement that, at the time a refinancing is consummated, the consumer has a reasonable ability to repay the loan and all applicable taxes, insurance, and assessments. Repeals the exception for bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate from the requirement that total points and fees not exceed 3% of the total new loan amount. (Thus subjects such charges to the same 3% ceiling.)

Cosponsors 68

Members who signed on, in the order they did. Signatures ran from Mar 12, 2013 to Oct 28, 2013, with 7 there on the day it was introduced.

SeatCosponsorSigned on
D-GADavid ScottOriginalMar 12, 2013
R-CAEdward R. RoyceOriginalMar 12, 2013
D-MIGary C. PetersOriginalMar 12, 2013
D-NYGregory W. MeeksOriginalMar 12, 2013
R-ALSpencer BachusOriginalMar 12, 2013
R-OHSteve StiversOriginalMar 12, 2013
D-MOWm. Lacy ClayOriginalMar 12, 2013
R-NYMichael G. GrimmMar 15, 2013
R-NYPeter T. KingMar 15, 2013
R-OHJames B. RenacciMar 18, 2013
R-MNMichele BachmannMar 18, 2013
R-ILAaron SchockMar 21, 2013
R-MOBlaine LuetkemeyerMar 21, 2013
R-TNDavid P. RoeApr 9, 2013
D-ILMike QuigleyApr 9, 2013

Actions 2

Everything that happened, newest first.

  1. Mar 12, 2013Introduced in House
  2. Mar 12, 2013Referred to the House Committee on Financial Services.

Related bills 4

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

BillTitleRelationshipLatest action
S 949Consumer Mortgage Choice ActRelated billMay 14, 2013
S 1577Mortgage Choice Act of 2013Related billSep 16, 2014
HR 2767Protecting American Taxpayers and Homeowners Act of 2013Related billJul 24, 2013
HR 3211Mortgage Choice Act of 2013Related billJun 10, 2014

Subjects

Assigned by the Library of Congress. Policy area: Housing and Community Development.

Text 1

Each version as it was printed, newest first.

  1. Mar 12, 2013Introduced in House

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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.