II 110th CONGRESS 1st Session S. 2153 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.

1.

Short title

This Act may be cited as the Mortgage Disclosure Improvement Act of 2007.

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. .

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.