HR 1077 · 113th Congress 2013โ€“2015, ended

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.

  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 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.

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
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
R-VARobert HurtApr 9, 2013
R-ARSteve WomackApr 9, 2013
R-AREric A. "Rick" CrawfordApr 11, 2013
D-NYWilliam L. OwensApr 11, 2013
R-TNStephen Lee FincherApr 17, 2013
R-ARTim GriffinApr 17, 2013
R-ARTom CottonApr 17, 2013
R-KYAndy BarrApr 26, 2013
R-NMStevan PearceApr 26, 2013
R-OHBill JohnsonMay 17, 2013
R-MNErik PaulsenMay 17, 2013
R-WIF. James Sensenbrenner, Jr.May 17, 2013
D-TXGene GreenMay 17, 2013
D-UTJim MathesonMay 17, 2013
R-TXKenny MarchantMay 17, 2013
R-KSLynn JenkinsMay 17, 2013
R-PAMichael G. FitzpatrickMay 17, 2013
R-COMike CoffmanMay 17, 2013
D-GASanford D. Bishop, Jr.May 17, 2013
R-MNJohn KlineMay 23, 2013
R-TXSteve StockmanMay 23, 2013
R-TXTed PoeJun 6, 2013
R-PATim MurphyJun 6, 2013
R-MITim WalbergJun 6, 2013
R-CADana RohrabacherJun 11, 2013
R-NELee TerryJun 11, 2013
R-MICandice S. MillerJun 13, 2013
D-TXFilemon VelaJun 14, 2013
R-PAPatrick MeehanJun 20, 2013
R-UTRob BishopJun 25, 2013
R-MIDan BenishekJun 28, 2013
R-CAKen CalvertJun 28, 2013
R-MIKerry L. BentivolioJul 8, 2013
D-TXSheila Jackson LeeJul 8, 2013
D-IADavid LoebsackJul 10, 2013
R-MIFred UptonJul 18, 2013
R-TXMichael C. BurgessJul 19, 2013
R-NCRobert PittengerJul 19, 2013
R-OHPatrick J. TiberiJul 22, 2013
R-VAJ. Randy ForbesJul 30, 2013
R-NCPatrick T. McHenryJul 30, 2013
R-MOAnn WagnerAug 2, 2013
R-NCHoward CobleSep 9, 2013
R-TXJohn Abney CulbersonSep 9, 2013
R-MIMike RogersSep 9, 2013
R-PAScott PerrySep 9, 2013
R-SCMick MulvaneySep 11, 2013
R-MSGregg HarperSep 17, 2013
D-MNBetty McCollumSep 18, 2013
R-TXLamar SmithSep 18, 2013
R-TXBlake FarentholdSep 28, 2013
R-MSSteven M. PalazzoSep 28, 2013
R-MSAlan NunneleeOct 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.

ChamberCommitteeWhat it did
HouseFinancial Services Committee
Referred Mar 12, 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.

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

Congress has the power to enact this legislation pursuant to the following: Pursuant to clause 7 of Rule XII of the Rules of the House of Representatives, the following statement is submitted regarding the specific powers granted to Congress in the Constitution to enact the accompanying bill or joint resolution. Congress has the power to enact this legislation pursuant to the following: Congress has the power to enact this legislation pursuant to Article I, Section 8, Clause 3.

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.

NumberHearingCommitteeHeld
Serial No. 113-60THE SEMI-ANNUAL REPORT OF THE CONSUMER FINANCIAL PROTECTION BUREAU210 pagesFinancial Services CommitteeJan 28, 2014
Serial No. 113-43THE SEMI-ANNUAL REPORT OF THE CONSUMER FINANCIAL PROTECTION BUREAU180 pagesFinancial Services CommitteeSep 12, 2013
Serial No. 113-40A LEGISLATIVE PROPOSAL TO PROTECT AMERICAN TAXPAYERS AND HOMEOWNERS BY CREATING A SUSTAINABLE HOUSING FINANCE SYSTEM311 pagesFinancial Services CommitteeJul 18, 2013
Serial No. 113-32EXAMINING HOW THE DODD-FRANK ACT HAMPERS HOME OWNERSHIP350 pagesFinancial Services CommitteeJun 18, 2013
Serial No. 113-22QUALIFIED MORTGAGES: EXAMINING THE IMPACT OF THE ABILITY TO REPAY RULE173 pagesFinancial Services CommitteeMay 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.

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

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.

  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; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.