[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3535 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3535

 To amend the Truth in Lending Act to require escrow accounts for the 
payment of property taxes and insurance for all subprime loans, and to 
 expand the coverage of the appraisal requirements under the Financial 
  Institutions Reform, Recovery, and Enforcement Act of 1989, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 2007

   Mr. Hodes (for himself and Ms. Moore of Wisconsin) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Truth in Lending Act to require escrow accounts for the 
payment of property taxes and insurance for all subprime loans, and to 
 expand the coverage of the appraisal requirements under the Financial 
  Institutions Reform, Recovery, and Enforcement Act of 1989, 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.

    This Act may be cited as the ``Homebuyer's Protection Act of 
2007''.

SEC. 2. ESCROW ACCOUNTS REQUIRED FOR SUBPRIME 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. Escrow or impound accounts relating to certain consumer 
              credit transactions
    ``(a) In General.--A creditor, in connection with the formation or 
consummation of a subprime mortgage, shall establish, at the time of 
the consummation of such mortgage, an escrow or impound account for the 
payment of taxes and hazard insurance as provided in, and in accordance 
with, this section, unless such an account already exists.
    ``(b) Duration of Escrow or Impound Account.--An escrow or impound 
account established pursuant to this section, shall remain in existence 
for as long as the subprime mortgage is outstanding.
    ``(c) Administration of Escrow or Impound Accounts.--Except as may 
otherwise be provided for in this title or in regulations prescribed by 
the Board, escrow or impound accounts established pursuant to this 
section shall be established in an insured depository institution.
    ``(d) Disclosures Relating to Escrow or Impound Account.--
            ``(1) In general.--In the case of any impound, trust, or 
        escrow account that is subject to this section, the creditor 
        shall disclose by written notice to the consumer within 3 
        business days before the consummation of the consumer credit 
        transaction giving rise to such account the following 
        information:
                    ``(A) The fact that an escrow or impound account 
                will be established at consummation of the transaction.
                    ``(B) The amount required at closing to initially 
                fund the escrow or impound account.
                    ``(C) The amount in the initial year of the 
                estimated taxes and hazard insurance premiums.
                    ``(D) The estimated monthly amount payable for 
                taxes and hazard insurance.
            ``(2) Regulations.--The Board shall prescribe by regulation 
        the contents of the notice required in paragraph (1) no later 
        than 90 days after the date of the enactment of the Homebuyer's 
        Protection Act of 2007.
    ``(e) Hazard Insurance Defined.--For purposes of this section, the 
term `hazard insurance' shall have the same meaning as provided under 
the law of the State where the real property securing the consumer 
credit transaction is located.''.
    (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. Escrow or impound accounts relating to certain consumer credit 
                            transactions.''.

SEC. 3. SCOPE OF APPRAISAL REQUIREMENTS.

    (a) In General.--Title XI of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is 
amended by striking ``federally related transaction'' and ``federally 
related transactions'' each place each such term appears and inserting 
``real estate related financial transaction'' or ``real estate related 
financial transactions'', as the case may be.
    (b) Technical and Conforming Amendments.--
            (1) The heading of section 1120 of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
        U.S.C. 3349) is amended by striking ``federally related 
        transactions'' and inserting ``real estate related financial 
        transactions''.
            (2) Section 1121 of the Financial Institutions Reform, 
        Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350) is 
        amended--
                    (A) by striking paragraph (4); and
                    (B) in paragraph (5), by striking ``any transaction 
                involving'' and inserting ``any consumer transaction 
                involving''.
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