[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4019 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4019

To amend the Truth in Lending Act to enhance disclosure of the terms of 
              home mortgage loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 31, 2007

   Mr. Baca introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Truth in Lending Act to enhance disclosure of the terms of 
              home mortgage loans, 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 ``Mortgage Disclosure Improvement Act 
of 2007''.

SEC. 2. ENHANCED MORTGAGE LOAN DISCLOSURES.

    Section 128(b)(2) of the Truth in Lending Act (15 U.S.C. 
1638(b)(2)) is amended--
            (1) by striking ``(2) In the'' and inserting ``(2) Mortgage 
        disclosures.--
                    ``(A) In general.--In the'';
            (2) by striking ``a residential mortgage transaction, as 
        defined in section 103(w)'' and inserting ``any extension of 
        credit that is secured by the dwelling of a consumer'';
            (3) by striking ``shall be made in accordance'' and all 
        that follows through ``extended, or'';
            (4) by striking ``If the'' and all that follows through the 
        end of the paragraph and inserting the following new 
        subparagraphs:
                    ``(B) Statement and timing of disclosures.--In the 
                case of an extension of credit that is secured by the 
                dwelling of a consumer, in addition to the other 
                disclosures required by subsection (a), the disclosures 
                provided under this paragraph shall--
                            ``(i) state in conspicuous type size and 
                        format, the following: `You are not required to 
                        complete this agreement merely because you have 
                        received these disclosures or signed a loan 
                        application.'; and
                            ``(ii) be furnished to the borrower not 
                        later than 7 business days before the date of 
                        consummation of the transaction, and at the 
                        time of consummation of the transaction, 
                        subject to subparagraph (D).
                    ``(C) Variable rates or payment schedules.--In the 
                case of an extension of credit that is secured by the 
                dwelling of a consumer, under which the annual rate of 
                interest is variable, or with respect to which the 
                regular payments may otherwise be variable, in addition 
                to the other disclosures required by subsection (a), 
                the disclosures provided under this paragraph shall--
                            ``(i) label the payment schedule as 
                        follows: `Payment Schedule: Payments Will Vary 
                        Based on Interest Rate Changes'; and
                            ``(ii) state the maximum amount of the 
                        regular required payments on the loan, based on 
                        the maximum interest rate allowed, introduced 
                        with the following language in conspicuous type 
                        size and format: `Your payment can go as high 
                        as ___ ', the blank to be filled in with the 
                        maximum possible payment amount.
                    ``(D) Updating apr.--In any case in which the 
                disclosure statement provided 7 business days before 
                the date of consummation of the transaction contains an 
                annual percentage rate of interest that is no longer 
                accurate, as determined under section 107(c), the 
                creditor shall furnish an additional, corrected 
                statement to the borrower, not later than 3 business 
                days before the date of consummation of the 
                transaction.''.

SEC. 3. CIVIL LIABILITY.

    Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is 
amended--
            (1) in paragraph (2)(A)(iii), by striking ``not less than 
        $200 or greater than $2,000'' and inserting ``$5,000, such 
        amount to be adjusted annually based on the consumer price 
        index, to maintain current value''; and
            (2) in the penultimate sentence of the undesignated matter 
        following paragraph (4)--
                    (A) by striking ``only for'' and inserting ``for'';
                    (B) by striking ``section 125 or'' and inserting 
                ``section 122, section 125,'';
                    (C) by inserting ``or section 128(b),'' after 
                ``128(a),''; and
                    (D) by inserting ``or section 128(b)'' before the 
                period.
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