[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2153 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2153

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 4, 2007

   Mr. Reed introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 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 inserting ``(A)'' before ``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:
            ``(B) 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) 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) 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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