110 HR 5500 IH: Foreclosure Credit Forgiveness Act of U.S. House of Representatives 2008-02-26 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5500 IN THE HOUSE OF REPRESENTATIVES February 26, 2008 Mr. Wynn introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Fair Credit Reporting Act to provide forbearance from foreclosures of subprime mortgages in the determination of a consumer credit score, and for other purposes.

1.

Short title

This Act may be cited as the Foreclosure Credit Forgiveness Act of 2008.

2.

Forbearance in creation of credit score

(a)

In general

Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g) is amended by adding at the end the following new subsection: (h)

Foreclosure on subprime not taken into account for credit scores

(1)

In general

A foreclosure on a subprime mortgage of a consumer may not be taken into account by any person in preparing or calculating the credit score (as defined in subsection (f)(2)) for, or with respect to, the consumer. (2)

Subprime defined

The term subprime mortgage means any consumer credit transaction secured by the principal dwelling of the consumer that bears or otherwise meets the terms and characteristics for such a transaction that the Board has defined as a subprime mortgage. . (b)

Regulations

The Board shall prescribe regulations defining a subprime mortgage for purposes of the amendment made by subsection (a) before the end of the 90-day period beginning on the date of the enactment of this Act. (c)

Effective date

The amendment made by subsection (a) shall take effect at the end of the 30-day period beginning on the date of the enactment of this Act and shall apply without regard to the date of the foreclosure.