[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1182 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1182
To amend the Truth in Lending Act to impose restrictions and
limitations on high-cost mortgages, to revise the permissible fees and
charges on certain loans made, to prohibit unfair or deceptive lending
practices, and to provide for public education and counseling about
predatory lenders, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 9, 2005
Mr. Miller of North Carolina (for himself, Mr. Watt, and Mr. Frank of
Massachusetts) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act to impose restrictions and
limitations on high-cost mortgages, to revise the permissible fees and
charges on certain loans made, to prohibit unfair or deceptive lending
practices, and to provide for public education and counseling about
predatory lenders, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Prohibit Predatory
Lending Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions relating to high-cost mortgages.
Sec. 3. Amendments to existing requirements for certain mortgages.
Sec. 4. Additional requirements for certain mortgages.
Sec. 5. Amendment to provision governing correction of errors.
Sec. 6. Amendment relating to right of rescission.
Sec. 7. Protections for all home loans.
Sec. 8. Amendments to civil liability provisions.
Sec. 9. Regulations.
SEC. 2. DEFINITIONS RELATING TO HIGH-COST MORTGAGES.
(a) High-Cost Mortgage Defined.--Section 103(aa) of the Truth in
Lending Act (15 U.S.C. 1602(aa)) is amended by striking all that
precedes paragraph (2) and inserting the following:
``(aa) High-Cost Mortgage.--
``(1) Definition.--
``(A) In general.--The term `high-cost mortgage',
and a mortgage referred to in this subsection, means a
consumer credit transaction that is secured by the
consumer's principal dwelling, other than a reverse
mortgage transaction, if--
``(i) in the case of a loan secured--
``(I) by a first mortgage on the
consumer's principal dwelling, the
annual percentage rate at consummation
of the transaction will exceed by more
than 8 percentage points the yield on
Treasury securities having comparable
periods of maturity on the 15th day of
the month immediately preceding the
month in which the application for the
extension of credit is received by the
creditor; or
``(II) by a subordinate or junior
mortgage on the consumer's principal
dwelling, the annual percentage rate at
consummation of the transaction will
exceed by more than 10 percentage
points the yield on Treasury securities
having comparable periods of maturity
on the 15th day of the month
immediately preceding the month in
which the application for the extension
of credit is received by the creditor;
``(ii) the total points and fees payable in
connection with the loan exceed--
``(I) in the case of a loan for
$20,000 or more, 5 percent of the total
loan amount; or
``(II) in the case of a loan for
less than $20,000, the lesser of 8
percent of the total loan amount or
$1,000; or
``(iii) the loan documents permit the
creditor to charge or collect prepayment fees
or penalties more than 30 months after the loan
closing or such fees or penalties exceed, in
the aggregate, more than 2 percent of the
amount prepaid.
``(B) Introductory rates taken into account.--For
purposes of subparagraph (A)(i), the annual percentage
rate of interest shall be determined based on the
following interest rate:
``(i) In the case of a fixed-rate loan in
which the annual percentage rate will not vary
during the term of the loan, the interest rate
in effect on the date of consummation of the
transaction.
``(ii) In the case of a loan in which the
rate of interest varies solely in accordance
with an index, the interest rate determined by
adding the index rate in effect on the date of
consummation of the transaction to the maximum
margin permitted at any time during the loan
agreement.
``(iii) In the case of any other loan in
which the rate may vary at any time during the
term of the loan for any reason, the interest
charged on the loan at the maximum rate that
may be charged during the term of the loan.''.
(b) Adjustment of Percentage Points.--Section 103(aa)(2) of the
Truth in Lending Act (15 U.S.C. 1602(aa)(2)) is amended by striking
subparagraph (B) and inserting the following new subparagraph:
``(B) An increase or decrease under subparagraph
(A)--
``(i) may not result in the number of
percentage points referred to in paragraph
(1)(A)(i)(I) being less than 6 percentage
points or greater than 10 percentage points;
and
``(ii) may not result in the number of
percentage points referred to in paragraph
(1)(A)(i)(II) being less than 8 percentage
points or greater than 12 percentage points.''.
(c) Points and Fees Defined.--
(1) In general.--Section 103(aa)(4) of the Truth in Lending
Act (15 U.S.C. 1602(aa)(4)) is amended--
(A) by striking subparagraph (B) and inserting the
following:
``(B) all compensation paid directly or indirectly
by a consumer or creditor to a mortgage broker from any
source, including a mortgage broker that originates a
loan in the name of the broker in a table-funded
transaction;'';
(B) in subparagraph (C)(ii), by striking ``and''
after the semicolon at the end;
(C) by redesignating subparagraph (D) as
subparagraph (G); and
(D) by inserting after subparagraph (C) the
following new subparagraphs:
``(D) premiums or other charges payable at or
before closing for any credit life, credit disability,
credit unemployment, or credit property insurance, or
any other accident, loss-of-income, life or health
insurance, or any payments directly or indirectly for
any debt cancellation or suspension agreement or
contract, except that insurance premiums or debt
cancellation or suspension fees calculated and paid in
full on a monthly basis shall not be considered
financed by the creditor;
``(E) except as provided in subsection (cc), the
maximum prepayment fees and penalties which may be
charged or collected under the terms of the loan
documents;
``(F) all prepayment fees or penalties that are
incurred by the consumer if the loan refinances a
previous loan made or currently held by the same
creditor or an affiliate of the creditor; and''.
(2) Calculation of points and fees for open-end loans.--
Section 103(aa) of the Truth in Lending Act (15 U.S.C.
1602(aa)) is amended--
(A) by redesignating paragraph (5) as paragraph
(6); and
(B) by inserting after paragraph (4) the following
new paragraph:
``(5) Calculation of points and fees for open-end loans.--
In the case of open-end loans, points and fees shall be
calculated, for purposes of this section and section 129, by
adding the total points and fees known at or before closing,
including the maximum prepayment penalties which may be charged
or collected under the terms of the loan documents, plus the
minimum additional fees the consumer would be required to pay
to draw down an amount equal to the total credit line.''.
(d) High Cost Mortgage Lender.--Section 103(f) of the Truth in
Lending Act (15 U.S.C. 1602(f)) is amended by striking the last
sentence and inserting the following new sentence: ``Any person who
originates or brokers 2 or more mortgages referred to in subsection
(aa) in any 12-month period, any person who originates 1 or more such
mortgages through a mortgage broker in any 12 month period, or, in
connection with a table funding transaction of such a mortgage, and any
person to whom the obligation is initially assigned at or after
settlement shall be considered to be a creditor for purposes of this
title.''.
(e) Bona Fide Discount Loan Discount Points and Prepayment
Penalties.--Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is
amended by adding at the end the following new subsection:
``(cc) Bona Fide Discount Points and Prepayment Penalties.--For the
purposes of determining the amount of points and fees for purposes of
subsection (aa), either the amounts described in paragraphs (1) or (4)
of the following paragraphs, but not both, may be excluded:
``(1) Exclusion of bona fide discount points.--The discount
points described in 1 of the following subparagraphs shall be
excluded from determining the amounts of points and fees with
respect to a high-cost mortgage for purposes of subsection
(aa):
``(A) Up to and including 2 bona fide discount
points payable by the consumer in connection with the
mortgage, but only if the interest rate from which the
mortgage's interest rate will be discounted does not
exceed by more than 1 percentage point the required net
yield for a 90-day standard mandatory delivery
commitment for a reasonably comparable loan from either
the Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation, whichever is
greater.
``(B) Unless 2 bona fide discount points have been
excluded under subparagraph (A), up to and including 1
bona fide discount points payable by the consumer in
connection with the mortgage, but only if the interest
rate from which the mortgage's interest rate will be
discounted does not exceed by more than 2 percentage
points the required net yield for a 90-day standard
mandatory delivery commitment for a reasonably
comparable loan from either the Federal National
Mortgage Association or the Federal Home Loan Mortgage
Corporation, whichever is greater.
``(2) Definition.--For purposes of paragraph (1), the term
`bona fide discount points' means loan discount points which
are knowingly paid by the consumer for the purpose of reducing,
and which in fact result in a bona fide reduction of, the
interest rate or time-price differential applicable to the
mortgage.
``(3) Exception for interest rate reductions inconsistent
with industry norms.-- Paragraph (1) shall not apply to
discount points used to purchase an interest rate reduction
unless the amount of the interest rate reduction purchased is
reasonably consistent with established industry norms and
practices for secondary mortgage market transactions.
``(4) Allowance of conventional prepayment penalty.--
Subsection (aa)(1)(4)(E) shall not apply so as to include a
prepayment penalty or fee that is authorized by law other than
this title and may be imposed pursuant to the terms of a high-
cost mortgage (or other consumer credit transaction secured by
the consumer's principal dwelling) if--
``(A) the annual percentage rate applicable with
respect to such mortgage or transaction (as determined
for purposes of subsection (aa)(1)(A)(i))--
``(i) in the case of a first mortgage on
the consumer's principal dwelling, does not
exceed by more than 2 percentage points the
yield on Treasury securities having comparable
periods of maturity on the 15th day of the
month immediately preceding the month in which
the application for the extension of credit is
received by the creditor; or
``(ii) in the case of a subordinate or
junior mortgage on the consumer's principal
dwelling, does not exceed by more than 4
percentage points the yield on such Treasury
securities; and
``(B) the total amount of any prepayment fees or
penalties permitted under the terms of the high-cost
mortgage or transaction does not exceed 2 percent of
the amount prepaid.''.
SEC. 3. AMENDMENTS TO EXISTING REQUIREMENTS FOR CERTAIN MORTGAGES.
(a) Prepayment Penalty Provisions.--Section 129(c)(2) of the Truth
in Lending Act (15 U.S.C. 1639(c)(2)) is amended--
(1) by striking ``and'' after the semicolon at the end of
subparagraph (C);
(2) by redesignating subparagraph (D) as subparagraph (E);
and
(3) by inserting after subparagraph (C) the following new
subparagraph:
``(D) the amount of the principal obligation of the
mortgage exceeds the maximum principal obligation
limitation (for the applicable size residence) under
section 203(b)(2) of the National Housing Act for the
area in which the residence subject to the mortgage is
located; and''.
(b) No Balloon Payments.--Section 129(e) of the Truth in Lending
Act (15 U.S.C. 1639(e)) is amended to read as follows:
``(e) No Balloon Payments.--No high-cost mortgage may contain a
scheduled payment that is more than twice as large as the average of
earlier scheduled payments. This subsection shall not apply when the
payment schedule is adjusted to the seasonal or irregular income of the
consumer.''.
(c) No Lending Without Due Regard to Ability to Repay.--Section
129(h) of the Truth in Lending Act (15 U.S.C. 1639(h)) is amended--
(1) by striking ``Payment Ability of Consumer.--A creditor
shall not'' and inserting ``Payment Ability of Consumer.--
``(1) Pattern or practice.--
``(A) In general.--A creditor shall not'';
(2) by inserting after subparagraph (A) (as so designated
by paragraph (1) of this subsection) the following new
subparagraph:
``(B) Presumption of violation.--There shall be a
presumption that a creditor has violated this
subsection if the creditor engages in a pattern or
practice of making high-cost mortgages without
verifying or documenting the repayment ability of
consumers with respect to such loans.''; and
(3) by adding at the end the following new paragraph:
``(2) Prohibition on extending credit without regard to
payment ability of consumer.--
``(A) In general.--A creditor may not extend credit
to a consumer under a high-cost mortgage unless a
reasonable creditor would believe at the time the loan
is closed that the consumer or consumers that are
residing or will reside in the residence subject to the
mortgage will be able to make the scheduled payments
associated with the loan, based upon a consideration of
current and expected income, current obligations,
employment status, and other financial resources, other
than equity in the residence.
``(B) Presumption of ability.--For purposes of this
subsection, there shall be a rebuttable presumption
that a consumer is able to make the scheduled payments
to repay the obligation if, at the time the loan is
consummated, the consumer's total monthly debts,
including amounts under the loan, do not exceed 50
percent of his or her monthly gross income as verified
by tax returns, payroll receipts, or other third-party
income verification.''.
SEC. 4. ADDITIONAL REQUIREMENTS FOR CERTAIN MORTGAGES.
(a) Additional Requirements for Certain Mortgages.--Section 129 of
the Truth in Lending Act (15 U.S.C. 1639) is amended--
(1) by redesignating subsections (j), (k) and (l) as
subsections (n), (o) and (p) respectively; and
(2) by inserting after subsection (i) the following new
subsections:
``(j) Recommended Default.--No creditor shall recommend or
encourage default on an existing loan or other debt prior to and in
connection with the closing or planned closing of a high-cost mortgage
that refinances all or any portion of such existing loan or debt.
``(k) Late Fees.--
``(1) In general.--No creditor may impose a late payment
charge or fee in connection with a high-cost mortgage--
``(A) in an amount in excess of 4 percent of the
amount of the payment past due;
``(B) unless the loan documents specifically
authorize the charge or fee;
``(C) before the end of the 15-day period beginning
on the date the payment is due, or in the case of a
loan on which interest on each installment is paid in
advance, before the end of the 30-day period beginning
on the date the payment is due; or
``(D) more than once with respect to a single late
payment.
``(2) Coordination with subsequent late fees.--If a payment
is otherwise a full payment for the applicable period and is
paid on its due date or within an applicable grace period, and
the only delinquency or insufficiency of payment is
attributable to any late fee or delinquency charge assessed on
any earlier payment, no late fee or delinquency charge may be
imposed on such payment.
``(3) Failure to make installment payment.--If, in the case
of a loan agreement the terms of which provide that any payment
shall first be applied to any past due principal balance, the
consumer fails to make an installment payment and the consumer
subsequently resumes making installment payments but has not
paid all past due installments, the creditor may impose a
separate late payment charge or fee for any principal due
(without deduction due to late fees or related fees) until the
default is cured.
``(l) Acceleration of Debt.--No high-cost mortgage may contain a
provision which permits the creditor, in its sole discretion, to
accelerate the indebtedness. This provision shall not apply when
repayment of the loan has been accelerated by default, pursuant to a
due-on-sale provision, or pursuant to a material violation of some
other provision of the loan documents unrelated to the payment
schedule.
``(m) Restriction on Financing Points and Fees.--No creditor may
directly or indirectly finance, in connection with any high-cost
mortgage, any of the following:
``(1) Any prepayment fee or penalty payable by the consumer
in a refinancing transaction if the creditor or an affiliate of
the creditor is the noteholder of the note being refinanced.
``(2) Any points or fees.''.
(b) Prohibitions on Evasions.--Section 129 of the Truth in Lending
Act (15 U.S.C. 1639 is amended by inserting after subsection (p) (as so
redesignated by subsection (a)(1) of this section) the following new
subsection:
``(q) Prohibitions on Evasions, Structuring of Transactions, and
Reciprocal Arrangements.--A creditor may not take any action in
connection with a high-cost mortgage--
``(1) to structure a loan transaction as an open-end credit
plan or another form of loan for the purpose and with the
intent of evading the provisions of this title; or
``(2) to divide any loan transaction into separate parts
for the purpose and with the intent of evading provisions of
this title.''.
(c) Modification or Deferral Fees.--Section 129 of the Truth in
Lending Act (15 U.S.C. 1639) is amended by inserting after subsection
(q) (as added by subsection (b) of this section) the following new
subsection:
``(r) Modification and Deferral Fees Prohibited.--A creditor may
not charge a consumer any fee to modify, renew, extend, or amend a
high-cost mortgage, or to defer any payment due under the terms of such
mortgage, unless the modification, renewal, extension or amendment
results in a lower annual percentage rate on the mortgage for the
consumer and then only if the amount of the fee is comparable to fees
imposed for similar transactions in connection with consumer credit
transactions that are secured by a consumer's principal dwelling and
are not high-cost mortgages.''.
(d) Payoff Statement.--Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection (r) (as added by
subsection (c) of this section) the following new subsection:
``(s) Payoff Statement.--
``(1) Fees.--
``(A) In general.--Except as provided in
subparagraph (B), no creditor or servicer may charge a
fee for informing or transmitting to any person the
balance due to pay off the outstanding balance on a
high-cost mortgage.
``(B) Transaction fee.--When payoff information
referred to in subparagraph (A) is provided by
facsimile transmission or by a courier service, a
creditor or servicer may charge a processing fee to
cover the cost of such transmission or service in an
amount not to exceed an amount that is comparable to
fees imposed for similar services provided in
connection with consumer credit transactions that are
secured by the consumer's principal dwelling and are
not high-cost mortgages.
``(C) Fee disclosure.--Prior to charging a
transaction fee as provided in subparagraph (B), a
creditor or servicer shall disclose that payoff
balances are available for free pursuant to
subparagraph (A).
``(D) Multiple requests.--If a creditor or servicer
has provided payoff information referred to in
subparagraph (A) without charge, other than the
transaction fee allowed by subparagraph (B), on 4
occasions during a calendar year, the creditor or
servicer may thereafter charge a reasonable fee for
providing such information during the remainder of the
calendar year.
``(2) Prompt delivery.--Payoff balances shall be provided
within a reasonable time but in any event no more than 5
business days after receiving a request by a consumer or a
person authorized by the consumer to obtain such
information.''.
(e) Pre-Loan Counseling Required.--Section 129 of the Truth in
Lending Act (15 U.S.C. 1639) is amended by inserting after subsection
(s) (as added by subsection (d) of this section) the following new
subsection:
``(t) Pre-Loan Counseling.--
``(1) In general.--A creditor may not extend credit to a
consumer under a high-cost mortgage without first receiving
certification from a counselor that is approved by the
Secretary of Housing and Urban Development, or at the
discretion of the Secretary, a state housing finance authority,
that the consumer has received counseling on the advisability
of the loan transaction. Such counselor shall not be employed
by the creditor or an affiliate of the creditor or be
affiliated with the creditor.
``(2) Disclosures required prior to counseling.--No
counselor may certify that a consumer has received counseling
on the advisability of the loan transaction unless the
counselor can verify that the consumer has received each
statement required (in connection with such loan) by section
129 of this title or by the Real Estate Settlement Procedures
Act of 1974 with respect to the transaction.
``(3) Regulations.--The Secretary of Housing and Urban
Development may prescribe such regulations as the Secretary
determines to be appropriate to carry out the requirements of
paragraph (1).''.
SEC. 5. AMENDMENT TO PROVISION GOVERNING CORRECTION OF ERRORS.
(a) Amendment to Provision Governing Correction of Errors.--Section
130(b) of the Truth in Lending Act (15 U.S.C. 1640(b)) is amended to
read as follows:
``(b) Correction of Errors.--A creditor has no liability under this
section or section 108 or 112 for any failure to comply with any
requirement imposed under this chapter or chapter 5, if--
``(1) within 30 days of the loan closing and prior to the
institution of any action, the consumer is notified of or
discovers the violation, appropriate restitution is made, and
whatever adjustments are necessary are made to the loan to
either, at the choice of the consumer--
``(A) make the loan satisfy the requirements of
this chapter; or
``(B) change the terms of the loan in a manner
beneficial to the consumer so that the loan will no
longer be a high-cost mortgage; or
``(2) within 60 days of the creditor's discovery or receipt
of notification of an unintentional violation or bona fide
error as described in subsection (c) and prior to the
institution of any action, the consumer is notified of the
compliance failure, appropriate restitution is made, and
whatever adjustments are necessary are made to the loan to
either, at the choice of the consumer--
``(A) make the loan satisfy the requirements of
this chapter or
``(B) change the terms of the loan in a manner
beneficial so that the loan will no longer be a high-
cost mortgage.''.
SEC. 6. AMENDMENT RELATING TO RIGHT OF RESCISSION.
Section 130(e) of the Truth in Lending Act (15 U.S.C. 1640(e)) is
amended by inserting after the second sentence the following new
sentence: ``This subsection also shall not bar a person from asserting
a right to rescission under section 125, in an action to collect the
debt or as a defense to a judicial or nonjudicial foreclosure after the
expiration of the time periods for affirmative actions set forth in
this section and section 125.''.
SEC. 7. PROTECTIONS FOR ALL HOME LOANS.
(a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C.
1631 et seq.) is amended by inserting after section 129 the following
new section:
``Sec. 129A. Protections for all home loans
``(a) Flipping.--
``(1) In general.--No creditor may knowingly or
intentionally engage in the unfair act or practice of flipping.
``(2) Flipping defined.--For purposes of this subsection,
the term `flipping' means the making of a loan or extension of
credit to a consumer which refinances an existing mortgage when
the new loan or extension of credit does not have reasonable,
tangible net benefit to the consumer considering all of the
circumstances, including the terms of both the new and the
refinanced loans or credit, the cost of the new loan or credit,
and the consumer's circumstances.
``(3) Tangible net benefit.--The Board may prescribe
regulations, in the discretion of the Board, defining the term
`tangible net benefit' for purposes of this subsection.
``(b) Single Premium Credit Insurance Prohibited.--No creditor may
finance, directly or indirectly, in connection with any consumer credit
transaction that is secured by the consumer's principal dwelling, any
credit life, credit disability, credit unemployment or credit property
insurance, or any other accident, loss-of-income, life or health
insurance, or any payments directly or indirectly for any debt
cancellation or suspension agreement or contract, except that insurance
premiums or debt cancellation or suspension fees calculated and paid in
full on a monthly basis shall not be considered financed by the
creditor.
``(c) Arbitration.--
``(1) In general.--A consumer credit transaction that is
secured by the consumer's principal dwelling may not include
terms which require arbitration or any other nonjudicial
procedure as the method for resolving any controversy or
settling any claims arising out of the transaction.
``(2) Post-controversy agreements.--Subject to paragraph
(3), paragraph (1) shall not be construed as limiting the right
of the consumer and the creditor to agree to arbitration or any
other nonjudicial procedure as the method for resolving any
controversy at any time after a dispute or claim under the
transaction arises.
``(3) No waiver of statutory cause of action.--No provision
of any consumer credit transaction that is secured by the
consumer's principal dwelling and no other agreement between
the consumer and the creditor shall be applied or interpreted
so as to bar a consumer from bringing an action in an
appropriate district court of the United States, or any other
court of competent jurisdiction, pursuant to section 130 or any
other provision of law, for damages or other relief in
connection with any alleged violation of this section, any
other provision of this title, or any other Federal law.''.
(b) Clerical Amendment.--The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to
section 129 the following new item:
``129A. Protections for all home loans.''.
SEC. 8. AMENDMENTS TO CIVIL LIABILITY PROVISIONS.
(a) Increase in Amount of Civil Money Penalties for Certain
Violations.--Section 130(a) of the Truth in Lending Act (15 U.S.C.
1640(a)) is amended, in the matter preceding paragraph (1), by striking
``an amount equal to the sum'' and inserting ``an amount equal to twice
the sum''.
(b) Statute of Limitations Extended for Section 129 or 129a
Violations.--Section 130(e) of the Truth in Lending Act (15 U.S.C.
1640(e)) (as amended by section 6 of this Act) is amended--
(1) in the first sentence, by striking ``Any action'' and
inserting ``Except as provided in the subsequent sentence, any
action'';
(2) by inserting after the first sentence the following new
sentence: ``Any action under this section with respect to any
violation of section 129 or 129A may be brought in any United
States district court, or in any other court of competent
jurisdiction, before the end of the 3-year period beginning on
the date of the occurrence of the violation.''; and
(3) in the 4th sentence (as determined taking into account
the amendment made by paragraph (2)), by inserting ``or 129A''
after ``section 129''.
SEC. 9. REGULATIONS.
(a) In General.--The Board of Governors of the Federal Reserve
System shall publish regulations implementing this Act and the
amendments made by this Act in final form before the end of the 6-month
period beginning on the date of enactment of this Act.
(b) Consumer Mortgage Education.--
(1) Regulations.--The Board may prescribe regulations
requiring or encouraging creditors to provide consumer mortgage
education to prospective customers or direct such customers to
qualified consumer mortgage education or counseling programs in
the vicinity of the residence of the consumer.
(2) Coordination with state law.--No requirement
established by the Board pursuant to paragraph (1) shall be
construed as affecting or superseding any requirement under the
law of any State with respect to consumer mortgage counseling
or education.
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