Consumer Mortgage Choice Act
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.
- IntroducedMar 12, 2013
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- 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 67
Members who signed on, in the order they did. Signatures ran from Mar 12, 2013 to Oct 28, 2013; 6 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-GA | David Scott | Original | Mar 12, 2013 |
| R-CA | Edward R. Royce | Original | Mar 12, 2013 |
| D-MI | Gary C. Peters | Original | Mar 12, 2013 |
| D-NY | Gregory W. Meeks | Original | Mar 12, 2013 |
| R-AL | Spencer Bachus | Original | Mar 12, 2013 |
| R-OH | Steve Stivers | Original | Mar 12, 2013 |
| R-NY | Michael G. Grimm | Mar 15, 2013 | |
| R-NY | Peter T. King | Mar 15, 2013 | |
| R-OH | James B. Renacci | Mar 18, 2013 | |
| R-MN | Michele Bachmann | Mar 18, 2013 | |
| R-IL | Aaron Schock | Mar 21, 2013 | |
| R-MO | Blaine Luetkemeyer | Mar 21, 2013 | |
| R-TN | David P. Roe | Apr 9, 2013 | |
| D-IL | Mike Quigley | Apr 9, 2013 | |
| R-VA | Robert Hurt | Apr 9, 2013 | |
| R-AR | Steve Womack | Apr 9, 2013 | |
| R-AR | Eric A. "Rick" Crawford | Apr 11, 2013 | |
| D-NY | William L. Owens | Apr 11, 2013 | |
| R-TN | Stephen Lee Fincher | Apr 17, 2013 | |
| R-AR | Tim Griffin | Apr 17, 2013 | |
| R-AR | Tom Cotton | Apr 17, 2013 | |
| R-KY | Andy Barr | Apr 26, 2013 | |
| R-NM | Stevan Pearce | Apr 26, 2013 | |
| R-OH | Bill Johnson | May 17, 2013 | |
| R-MN | Erik Paulsen | May 17, 2013 | |
| R-WI | F. James Sensenbrenner, Jr. | May 17, 2013 | |
| D-TX | Gene Green | May 17, 2013 | |
| D-UT | Jim Matheson | May 17, 2013 | |
| R-TX | Kenny Marchant | May 17, 2013 | |
| R-KS | Lynn Jenkins | May 17, 2013 | |
| R-PA | Michael G. Fitzpatrick | May 17, 2013 | |
| R-CO | Mike Coffman | May 17, 2013 | |
| D-GA | Sanford D. Bishop, Jr. | May 17, 2013 | |
| R-MN | John Kline | May 23, 2013 | |
| R-TX | Steve Stockman | May 23, 2013 | |
| R-TX | Ted Poe | Jun 6, 2013 | |
| R-PA | Tim Murphy | Jun 6, 2013 | |
| R-MI | Tim Walberg | Jun 6, 2013 | |
| R-CA | Dana Rohrabacher | Jun 11, 2013 | |
| R-NE | Lee Terry | Jun 11, 2013 | |
| R-MI | Candice S. Miller | Jun 13, 2013 | |
| D-TX | Filemon Vela | Jun 14, 2013 | |
| R-PA | Patrick Meehan | Jun 20, 2013 | |
| R-UT | Rob Bishop | Jun 25, 2013 | |
| R-MI | Dan Benishek | Jun 28, 2013 | |
| R-CA | Ken Calvert | Jun 28, 2013 | |
| R-MI | Kerry L. Bentivolio | Jul 8, 2013 | |
| D-TX | Sheila Jackson Lee | Jul 8, 2013 | |
| D-IA | David Loebsack | Jul 10, 2013 | |
| R-MI | Fred Upton | Jul 18, 2013 | |
| R-TX | Michael C. Burgess | Jul 19, 2013 | |
| R-NC | Robert Pittenger | Jul 19, 2013 | |
| R-OH | Patrick J. Tiberi | Jul 22, 2013 | |
| R-VA | J. Randy Forbes | Jul 30, 2013 | |
| R-NC | Patrick T. McHenry | Jul 30, 2013 | |
| R-MO | Ann Wagner | Aug 2, 2013 | |
| R-NC | Howard Coble | Sep 9, 2013 | |
| R-TX | John Abney Culberson | Sep 9, 2013 | |
| R-MI | Mike Rogers | Sep 9, 2013 | |
| R-PA | Scott Perry | Sep 9, 2013 | |
| R-SC | Mick Mulvaney | Sep 11, 2013 | |
| R-MS | Gregg Harper | Sep 17, 2013 | |
| D-MN | Betty McCollum | Sep 18, 2013 | |
| R-TX | Lamar Smith | Sep 18, 2013 | |
| R-TX | Blake Farenthold | Sep 28, 2013 | |
| R-MS | Steven M. Palazzo | Sep 28, 2013 | |
| R-MS | Alan Nunnelee | Oct 28, 2013 |
Withdrew 1 Wm. Lacy Clay D-MO Sep 11, 2013
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Financial Services Committee | Referred Mar 12, 2013 |
Actions 2
Everything that happened, newest first.
- Mar 12, 2013Introduced in House
- Mar 12, 2013Referred to the House Committee on Financial Services.
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Constitutional authority
The sponsor’s statement, as printed in the page H1358.
Printed hearings 5
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| Serial No. 113-60 | THE SEMI-ANNUAL REPORT OF THE CONSUMER FINANCIAL PROTECTION BUREAU210 pages | Financial Services Committee | Jan 28, 2014 |
| Serial No. 113-43 | THE SEMI-ANNUAL REPORT OF THE CONSUMER FINANCIAL PROTECTION BUREAU180 pages | Financial Services Committee | Sep 12, 2013 |
| Serial No. 113-40 | A LEGISLATIVE PROPOSAL TO PROTECT AMERICAN TAXPAYERS AND HOMEOWNERS BY CREATING A SUSTAINABLE HOUSING FINANCE SYSTEM311 pages | Financial Services Committee | Jul 18, 2013 |
| Serial No. 113-32 | EXAMINING HOW THE DODD-FRANK ACT HAMPERS HOME OWNERSHIP350 pages | Financial Services Committee | Jun 18, 2013 |
| Serial No. 113-22 | QUALIFIED MORTGAGES: EXAMINING THE IMPACT OF THE ABILITY TO REPAY RULE173 pages | Financial Services Committee | May 21, 2013 |
CRS reports 1
Congressional Research Service work that CRS links to this bill or the law it became, newest first.
Cite it 1
Products on other subjects that cite it, usually among other measures.
| Product | Title | Kind | Published |
|---|---|---|---|
| R43081 | The Ability-to-Repay Rule: Possible Effects of the Qualified Mortgage Definition on Credit Availability and Other Selected Issues Archived | Report | Mar 11, 2014 |
Related bills 4
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| S 949 | Consumer Mortgage Choice Act | Related bill | May 14, 2013 |
| S 1577 | Mortgage Choice Act of 2013 | Related bill | Sep 16, 2014 |
| HR 2767 | Protecting American Taxpayers and Homeowners Act of 2013 | Related bill | Jul 24, 2013 |
| HR 3211 | Mortgage Choice Act of 2013 | Related bill | Jun 10, 2014 |
Titles 2
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To amend the Truth in Lending Act to improve upon the definitions provided for points and fees in connection with a mortgage transaction.
- Short Titles as Introduced
- Consumer Mortgage Choice Act
Subjects
Assigned by the Library of Congress. Policy area: Housing and Community Development.
Text 1
Each version as it was printed, newest first.
- Mar 12, 2013Introduced in House
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; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.