1.Short title; table of contents
(a)This Act may be cited as the
Mortgage Origination Commission Act of
2008
.
(b)The table of contents for this Act is as
follows:
Sec. 1. Short title;
table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I—Establishment of the Mortgage Origination
Commission
Sec. 101. Establishment of the Mortgage Origination
Commission.
Sec. 102. Director of the Commission.
Sec. 103. Deputy Director of the Commission.
Sec. 104. Personnel, services, and facilities.
Sec. 105. Funding for Commission operations.
TITLE II—Evaluation of State mortgage supervision and
enforcement
Sec. 201. Evaluation criteria.
Sec. 202. Periodic assessment of State programs.
Sec. 203. Commission information.
TITLE III—Supervision of mortgage companies and mortgage
originators
Sec. 301. Clarification of Truth in Lending Act enforcement
responsibilities.
Sec. 302. Board of Governors examination authority.
Sec. 303. Office of Thrift Supervision examination
authority.
2.The purposes of this Act are—
(1)to enhance protection and fair treatment of
consumers in the mortgage origination process by establishing uniform State
minimum licensing and qualification standards for mortgage originators;
(2)to establish a method to evaluate the
adequacy and effectiveness of State licensing, supervision, and enforcement
programs for regulating mortgage originators other than federally regulated
depository institutions and their subsidiaries and employees;
(3)to provide disclosure and transparency to
consumers, investors, and regulators on the adequacy of such State programs;
and
(4)to clarify oversight responsibilities and
enforcement authority under Federal laws governing mortgage origination and
lending activities conducted outside of federally regulated depository
institutions and their subsidiaries.
3.For purposes of this Act, the following
definitions shall apply:
(1)The term Commission means the
Mortgage Origination Commission established under this Act.
(2)The term company means any
corporation, limited liability corporation, partnership, limited partnership,
business trust, business association, sole proprietorship, or similar
organization.
(3)The term depository
institution has the same meaning as in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813) and includes any credit union.
(4)—
(A)The term mortgage company
means a company that, through mortgage loan originators, engages in the
business of—
(i)extending residential mortgage loans to
others; or
(ii)underwriting or preparing residential
mortgage loan applications on behalf of or for submission to others.
(B)Depository institutions and subsidiaries
excludedThe term
mortgage company does not include a depository institution or
subsidiary of a depository institution.
(5)
(A)The term mortgage loan
originator—
(i)means an individual who—
(I)accepts from or prepares for a consumer a
residential mortgage loan application;
(II)assists a consumer in obtaining or applying
to obtain a residential mortgage loan; or
(III)offers or negotiates terms of a residential
mortgage loan, for direct or indirect compensation or gain, or in the
expectation of direct or indirect compensation or gain;
(ii)includes any individual who represents to
the public, through advertising or other means of communicating or providing
information (including the use of business cards, stationery, brochures, signs,
rate lists, or other promotional items), that such individual can or will
provide or perform any of the activities described in clause (i);
(iii)does not include any individual who is not
otherwise described in clause (i) or (ii) and who performs purely
administrative or clerical tasks on behalf of a person who is described in any
such clause; and
(iv)does not include a person or entity that
only performs real estate brokerage activities and is licensed or registered as
a real estate broker in accordance with applicable State law, unless the person
or entity is compensated by a lender, a mortgage broker, or other mortgage loan
originator or by any agent of such lender, mortgage broker, or other mortgage
loan originator.
(B)Other definitions relating to mortgage loan
originatorFor purposes of
this paragraph, an individual assists a consumer in obtaining or
applying to obtain a residential mortgage loan
by, among other things,
advising on loan terms (including rates, fees, and other costs), preparing loan
documents or packages, or collecting information on behalf of the consumer with
regard to a residential mortgage loan.
(C)Administrative or clerical
tasksFor purposes of this
paragraph, the term administrative or clerical tasks means the
receipt, collection, or distribution of information common for the processing
or underwriting of a loan in the mortgage industry and communication with a
consumer to obtain information necessary for the processing or underwriting of
a residential mortgage loan.
(D)Real estate brokerage activity
definedFor purposes of this
paragraph, the term real estate brokerage activity means any
activity that involves offering or providing real estate brokerage services to
the public, including—
(i)acting as a real estate agent or real
estate broker for a buyer, seller, lessor, or lessee of real property;
(ii)listing or advertising real property for
sale, purchase, lease, rental, or exchange;
(iii)providing advice in connection with sale,
purchase, lease, rental, or exchange of real property;
(iv)bringing together parties interested in the
sale, purchase, lease, rental, or exchange of real property;
(v)negotiating, on behalf of any party, any
portion of a contract relating to the sale, purchase, lease, rental, or
exchange of real property (other than in connection with providing financing
with respect to any such transaction);
(vi)engaging in any activity for which a person
engaged in the activity is required to be registered or licensed as a real
estate agent or real estate broker under any applicable law; and
(vii)offering to engage in any activity, or act
in any capacity, described in clause (i), (ii), (iii), (iv), (v), or
(vi).
(6)Nationwide mortgage licensing system and
registryThe term
Nationwide Mortgage Licensing System and Registry means—
(A)a mortgage licensing system developed and
maintained by the Conference of State Banking Supervisors and the American
Association of Residential Mortgage Regulators for the registration of, or
State licensing and registration of, mortgage loan originators; or
(B)the alternate mortgage licensing system and
registry established by the Secretary of Housing and Urban Development pursuant
to section 1508 of the Housing and Economic Recovery Act of 2008 (12 U.S.C.
5107).
(7)Residential mortgage loanThe term residential mortgage
loan means any transaction in which a mortgage, deed of trust, or other
consensual security interest is created or retained against a one-to-four
family home, individual unit of a condominium or cooperative, or a mobile home
to secure credit extended to an individual or individuals primarily for
personal, family, or household purposes.
(8)The term State means any State
of the United States, the District of Columbia, Puerto Rico, and the Virgin
Islands.
<enum>I</enum><header display-inline="yes-display-inline">Establishment of the Mortgage Origination
Commission</header>
<section commented="no" display-inline="no-display-inline" id="IDdd1045a9090d41cc841b41dfd692a8ef" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Establishment of the Mortgage Origination
Commission</header>
<subsection commented="no" display-inline="no-display-inline" id="IDe8889437c42e495fa14c24b601905d5e"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment; composition</header><text display-inline="yes-display-inline">There is established the Mortgage
Origination Commission which shall consist of the following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID3794cbec259b487fb2ce5abf839bedbf"><enum>(1)</enum><text display-inline="yes-display-inline">The Comptroller of the Currency, or
designee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDf4c2de676be54afcba24abf39a84ed9d"><enum>(2)</enum><text display-inline="yes-display-inline">The Chairman of the Board of Directors of
the Federal Deposit Insurance Corporation, or designee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID49338cbd419545c7b0d3275101cf615d"><enum>(3)</enum><text display-inline="yes-display-inline">A Governor of the Board of Governors of the
Federal Reserve System designated by the Chairman of the Board.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe30c7858ead545d48c17fcbf8af00902"><enum>(4)</enum><text display-inline="yes-display-inline">The Director, Office of Thrift Supervision,
or designee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDbd0f8fb02fe640ff808aff3081cc794d"><enum>(5)</enum><text display-inline="yes-display-inline">The Chairman of the National Credit Union
Administration Board, or designee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID38dfcb1e35364e5e99a6b6d40d799877"><enum>(6)</enum><text display-inline="yes-display-inline">The Chairman of the State Liaison Committee
of the Federal Financial Institutions Examination Council elected pursuant to
section 1007 of the Federal Financial Institutions Examination Council Act of
1978 (12 U.S.C. 3306).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID086a9dec1a3a4eb3b07e6161666f5e73"><enum>(7)</enum><text display-inline="yes-display-inline">The Director of the Commission.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID618c0bbb22b84e65a7dde143f1d0ae87"><enum>(b)</enum><header display-inline="yes-display-inline">Chairman</header><text display-inline="yes-display-inline">The Director of the Commission shall serve
as its Chairman.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID901f39a5416c43da845e68ee3f827cd0"><enum>(c)</enum><header display-inline="yes-display-inline">Meetings; quorum; voting</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7400D4BB46B24925BFA8D39D1BCA811D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall meet at least
semiannually and at the call of the Director of the Commission or a majority of
its members when there is business to be conducted.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID15a0680c370443eaa10d52f8666be40a"><enum>(2)</enum><header display-inline="yes-display-inline">Quorum</header><text display-inline="yes-display-inline">A majority of the members of the Commission
shall constitute a quorum.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5a18eb0e57d2474cb57444fb8c54d411"><enum>(3)</enum><header display-inline="yes-display-inline">Decisions</header><text display-inline="yes-display-inline">Decisions of the Commission shall be made
by the vote of a majority of its members.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDf8478b589fc344c8a044912e38e536fd"><enum>(d)</enum><header display-inline="yes-display-inline">Administration of the Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDaf9b09371ce34754a79a215a0c235d33"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall have the authority to
administer and interpret this Act, and to prescribe regulations to carry out
this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb7cb51d0378e45b5acd3dd0af7eab4bf"><enum>(2)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">Rulemaking of the Commission shall be
subject to section 553 of the Administrative Procedure Act (5 U.S.C.
553).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDdce14c74ebc341c6a99b6ee65356baee" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Director of the Commission</header>
<subsection commented="no" display-inline="no-display-inline" id="ID77aa6e807b1946dc902b1eef7651a2f0"><enum>(a)</enum><header display-inline="yes-display-inline">Appointment</header><text display-inline="yes-display-inline">The Director of the Commission shall be
appointed by the President, by and with the advice and consent of the Senate,
from among individuals who are citizens of the United States, have recognized
and extensive experience in mortgage regulation or mortgage markets, and have
demonstrated expertise in the legal and regulatory requirements and private
sector standards governing the United States primary and secondary mortgage
markets. The Director shall not hold any other appointed office during his or
her term as Director.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID40ac1de509b84631be90a370723d409b"><enum>(b)</enum><header display-inline="yes-display-inline">Term</header><text display-inline="yes-display-inline">The Director shall be appointed for a term
of 5 years.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID30c3cf3193944a549aefe872b9230bf3"><enum>(c)</enum><header display-inline="yes-display-inline">Vacancy</header><text display-inline="yes-display-inline">A vacancy in the position of the Director
shall be filled in the manner in which the original appointment was made under
subsection (a) of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID5ed6d93c613544d6b95bf2d310402528"><enum>(d)</enum><header display-inline="yes-display-inline">Service after end of term</header><text display-inline="yes-display-inline">The Director may serve after the expiration
of the term for which the Director was appointed until a successor Director has
been appointed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDbdbc9396f79a48d6a7d9c100644cffd3"><enum>(e)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">The Director is authorized to carry out,
and to delegate to officers, employees, and agents the authority to carry out,
the internal administration of the Commission, including entering into
contracts, appointing and supervising employees, and distributing business
among members, employees, and administrative units.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID70d06f3b6cf247d69826a90bc4ccfcde" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Deputy Director of the Commission</header>
<subsection commented="no" display-inline="no-display-inline" id="ID910995a391fc4568a7eea5f0f5388f71"><enum>(a)</enum><header display-inline="yes-display-inline">Appointment</header><text display-inline="yes-display-inline">The Commission shall have a Deputy Director
who shall be appointed by the Director of the Commission from among individuals
who are citizens of the United States, have recognized and extensive experience
in mortgage regulation or mortgage markets, and have demonstrated expertise in
the legal and regulatory requirements and private sector standards governing
the United States primary and secondary mortgage markets.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDda6dd4056e52414989b3d1f010262c51"><enum>(b)</enum><header display-inline="yes-display-inline">Functions</header><text display-inline="yes-display-inline">The Deputy Director shall have such
functions, powers, and duties as the Director shall prescribe. In the event of
the death, resignation, sickness, or absence of the Director, the Deputy
Director shall serve as acting Director until the return of the Director or the
appointment of a successor pursuant to section 102.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDbab9dbf843c94ef491f878d5d2ab7780" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Personnel, services, and
facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="IDbfee88719de04c399daa480d0d226297"><enum>(a)</enum><header display-inline="yes-display-inline">Use of regulatory agency personnel and
facilities</header><text display-inline="yes-display-inline">In carrying out
its functions under this Act the Commission may, to the extent practicable,
utilize the personnel, services, and facilities of the Office of the
Comptroller of the Currency, the Federal Deposit Insurance Corporation, the
Board of Governors of the Federal Reserve System, the Office of Thrift
Supervision, and the National Credit Union Administration, with their consent,
with or without reimbursement.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID8617a1a639684162a3cc7d3f15167b27"><enum>(b)</enum><header display-inline="yes-display-inline">Compensation, authority, and duties of
officers and employees; experts and consultants</header><text display-inline="yes-display-inline">In addition, the Commission may—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0b5677c1532a4f1cb7a16849306998a8"><enum>(1)</enum><text display-inline="yes-display-inline">subject to the provisions of title 5,
United States Code, relating to the competitive service, classification, and
General Schedule pay rates, appoint and fix the compensation of such officers
and employees as are necessary to carry the provisions of this Act, and to
prescribe the authority and duties of such officers and employees; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7a06999472d7443c8a5057c1b2b41cfc"><enum>(2)</enum><text display-inline="yes-display-inline">obtain the services of experts and
consultants as are necessary to carry out the provisions of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID11d985c06ce6442fa8b60dbbcd849b88" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Funding for Commission operations</header>
<subsection commented="no" display-inline="no-display-inline" id="IDe437321efa424862a300cefc38de46cc"><enum>(a)</enum><header display-inline="yes-display-inline">Annual fee</header><text display-inline="yes-display-inline">The Commission is authorized to assess a
$25 annual fee from each mortgage loan originator during the period such
individual is licensed by a State as a condition to performing the functions of
a mortgage loan originator.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDe89631360115458baf2aee0270cc47d2"><enum>(b)</enum><header display-inline="yes-display-inline">Adjusting the annual fee</header><text display-inline="yes-display-inline">The Commission may adjust the fee assessed
pursuant subsection (a) from time to time, as necessary to carry out its
functions under this Act, up to a maximum of $80 per annum.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID0fca957a448f493d80232baea7664b87"><enum>(c)</enum><header display-inline="yes-display-inline">Inflation adjustments</header><text display-inline="yes-display-inline">Ten years after the effective date of this
Act, and at the end of every 10-year period thereafter, the annual fee the
Commission is authorized to assess under subsection (a), and the maximum fee
authorized under subsection (b), shall be adjusted by a percentage equal to the
percentage by which the Consumer Price Index (or its successor) for the month
of June preceding the effective date (of this Act for the first adjustment, or
of the most recent adjustment for subsequent adjustments) differs from the
Consumer Price Index (or its successor) for the month of June in the year of
the adjustment.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID46541020cbe742e2bdc1b9b502f5d62f"><enum>(d)</enum><header display-inline="yes-display-inline">Notice of adjustments</header><text display-inline="yes-display-inline">The Commission shall publish a brief notice
describing each adjustment pursuant to subsection (b) or (c) in the Federal
Register concurrently with the effectiveness of such adjustment.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID22be500763294e1c9132505dfb979da3"><enum>(e)</enum><header display-inline="yes-display-inline">Fee collection by States</header><text display-inline="yes-display-inline">Each State that licenses individuals to
performs the functions of mortgage loan originators shall collect the annual
fee authorized under subsection (a) from each licensee, except licensees who
provide satisfactory evidence that another State collects his or her annual
Commission fee, and shall transmit such fees to the Commission on an annual
basis together with a reasonable accounting thereof.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDb8874129114a4506a61a1d65defd8450"><enum>(f)</enum><header display-inline="yes-display-inline">Fee collection by Nationwide Mortgage
Licensing System and Registry</header><text display-inline="yes-display-inline">—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID524d4055705249c9b49ffde64c07d4bd"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If the Commission, following consultation
with the Nationwide Mortgage Licensing System and Registry, determines that the
facilities of the Nationwide Mortgage Licensing System and Registry offers a
more convenient and efficient method for collecting the annual fees authorized
pursuant to subsection (a) than collection by one or more States pursuant to
subsection (e), the Commission may notify such States in writing that the
Commission will collect fees for mortgage loan originators licensed by that
State through the Nationwide Mortgage Licensing System and Registry, and the
Nationwide Mortgage Licensing System and Registry shall collect such
fees.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDf81ae817443d4c00bb0b8a237187bb2c"><enum>(2)</enum><header display-inline="yes-display-inline">Transmission</header><text display-inline="yes-display-inline">Each State that receives a notice under
paragraph (1) shall promptly transmit to the Commission any fees it has
collected under subsection (e), and shall not otherwise be obligated to collect
fees on the Commission’s behalf under subsection (e) during the effective
period of such notice.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe65ceff5035b40af9ee1bef1f4fd1fa7"><enum>(3)</enum><header display-inline="yes-display-inline">Expenses</header><text display-inline="yes-display-inline">The Nationwide Mortgage Licensing System
and Registry shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID9b9bc3651ebf4f7c953dc952593481c0"><enum>(A)</enum><text display-inline="yes-display-inline">develop reasonable methods to allocate its
existing and projected expenses to develop, operate, maintain, and upgrade the
Nationwide Mortgage Licensing System and Registry between—</text>
<clause commented="no" display-inline="no-display-inline" id="ID23dd5e34b17b4f01a07d32748ca476e7"><enum>(i)</enum><text display-inline="yes-display-inline">registered mortgage loan originators that
are employees of depository institutions or subsidiaries of depository
institutions; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID701fa9d13f9f485699160e8541ed71b0"><enum>(ii)</enum><text display-inline="yes-display-inline">other mortgage loan originators registered
or licensed through the System; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2ead1901aed44cf580f77d809e89ff3d"><enum>(B)</enum><text display-inline="yes-display-inline">in establishing the amount of fees to be
collected to defray the costs to develop, operate, maintain, and upgrade the
System, the Nationwide Mortgage Licensing System and Registry shall not charge
such mortgage loan originators described in clause (i) or (ii) of subparagraph
(A) fees that exceed amounts reasonably necessary to defray the expenses
attributable to each such group.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5b5191ffaa3347f88e25ec58ce3edfa4"><enum>(g)</enum><header display-inline="yes-display-inline">Startup funding</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID0b42a2538230499c830d14ce2de4610f"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall pay to
the Commission a one-time payment of $10,000,000 within 30 days after the
effective date of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID027d6a67f940447b9a4ea176bc32d8bf"><enum>(2)</enum><header display-inline="yes-display-inline">Repayment</header><text display-inline="yes-display-inline">The Commission shall repay the Secretary of
the Treasury for such $10,000,000, in full, no later than the 10th anniversary
of this Act’s effective date.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID61b378985da34537997f2c7d808d28ec"><enum>(h)</enum><header display-inline="yes-display-inline">Commission expenditure authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID06b756820b244aafb187748175445f1d"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall have the power to
enter into contracts, and determine its necessary expenditures under this Act
and the manner in which such expenditures shall be incurred, allowed, and paid
out of funds available to the Commission under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6ce9d563ea2c4021a53d2594b54d5c17"><enum>(2)</enum><header display-inline="yes-display-inline">Account</header><text display-inline="yes-display-inline">Funds available to the Commission under
this section shall be deposited in an account in the Treasury of the United
States, but shall not be construed to be Government funds or appropriated
monies, or subject to apportionment for the purposes of chapter 15 of title 31,
United States Code, or any other authority.</text>
</paragraph></subsection></section><enum>II</enum><header display-inline="yes-display-inline">Evaluation of State mortgage supervision
and enforcement</header>
<section commented="no" display-inline="no-display-inline" id="IDa27a902bcc1f40f38611ab2a9d1805fd" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Evaluation criteria</header>
<subsection commented="no" display-inline="no-display-inline" id="IDfacd981200e7475f838a4c75742748b9"><enum>(a)</enum><header display-inline="yes-display-inline">Criteria for evaluation of State
oversight</header><text display-inline="yes-display-inline">The Commission
shall develop criteria and a numerical rating system corresponding to
descriptive categories indicative of a State program’s strength or weakness to
evaluate the effectiveness of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0fffce2157574a77b9f34458c0e2c9c8"><enum>(1)</enum><text display-inline="yes-display-inline">systems for licensing, supervision, and
enforcement with respect to mortgage loan originators and mortgage companies
operating in the State, including but not limited to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDf5835d51c56a49d2a4030b8174f0e8a6"><enum>(A)</enum><text display-inline="yes-display-inline">implementation of licensing requirements
that take into account conduct and disciplinary history; establishment of
minimum educational requirements, testing standards, and continuing education;
establishment of appropriate license denial, suspension, or revocation
procedures;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID86d5a687b20944d1af3ca0e311b8cc5e"><enum>(B)</enum><text display-inline="yes-display-inline">ongoing supervision and periodic
examination of the activities of mortgage loan originators and mortgage
companies to review their compliance with applicable law, and to address any
deficiencies therein; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID06101cbfd4514443aebfae3ced07f9d3"><enum>(C)</enum><text display-inline="yes-display-inline">administrative and judicial enforcement
programs to take corrective action against mortgage loan originators and
mortgage companies and deter future violations of licensing requirements and
applicable law;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd81cc66606a44045972010978666eab3"><enum>(2)</enum><text display-inline="yes-display-inline">mechanisms to collect, evaluate and respond
to complaints against State-licensed mortgage loan originators and mortgage
companies; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6a60c941aa854faaa9243ed01581b08a"><enum>(3)</enum><text display-inline="yes-display-inline">such other matters as the Commission
determines appropriate in light of the purposes of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5c2eff96f00d4cc7a6fe337acd2bcdcd"><enum>(b)</enum><header display-inline="yes-display-inline">Publication of criteria</header><text display-inline="yes-display-inline">The criteria developed by the Commission
pursuant to subsection (a)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDf72193a0a1ea4ea0a75cf3b8ec4e31b0"><enum>(1)</enum><text display-inline="yes-display-inline">may be formulated through such processes as
the Commission in its discretion determines are appropriate in light of the
purposes of this Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0fd3e7f2051f499595b7913f490fe1dd"><enum>(2)</enum><text display-inline="yes-display-inline">shall be made available to the public in
accordance with section 203 of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDa19c309e52e54952be44ab713eb708b1" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Periodic assessment of State
programs</header>
<subsection commented="no" display-inline="no-display-inline" id="ID9eb0cf83714b4877b18423b66120a233"><enum>(a)</enum><header display-inline="yes-display-inline">Evaluation and reporting</header><text display-inline="yes-display-inline">The Commission shall conduct an evaluation
of each State’s programs for licensing, regulation, and enforcement with
respect to mortgage loan originators and mortgage companies under the criteria
developed pursuant to section 201, and prepare a report containing a narrative
evaluation of the adequacy of the State’s programs, including a summary
numerical rating for each class of criteria and an overall composite
rating.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID11a000ce1c4f45ae929b56d293a00770"><enum>(b)</enum><header display-inline="yes-display-inline">Publication of reports</header><text display-inline="yes-display-inline">The reports prepared by the Commission
pursuant to subsection (a) shall be made available to the public in accordance
with section 203 of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID427ca49215844a1093b289d435039176"><enum>(c)</enum><header display-inline="yes-display-inline">Evaluation frequency</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDee59f05831124f41af16ef2c47f3cbc4"><enum>(1)</enum><text display-inline="yes-display-inline">The Commission shall complete its first
evaluation and report for every State no later than 4 years after the effective
date of this Act, and thereafter shall complete an evaluation and report for
each State not less than once every 36 months.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4484cd58718a4ad9b0939d419c13317e"><enum>(2)</enum><text display-inline="yes-display-inline">If a State makes significant changes to its
programs after the Commission has issued its report, and the State submits a
written certification to the Commission describing the reasons why the State
believes changes made are material and likely to persuade the Commission to
increase one or more of the State’s summary numerical ratings, the Commission
shall review the submission and determine whether to re-evaluate the State’s
program, in part or in full, in advance of the State’s next scheduled
evaluation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1d0b4add60a045e090e34dd4498bcc0e"><enum>(3)</enum><text display-inline="yes-display-inline">If the Commission does not commence a
re-evaluation within 6 months of a State’s submission under paragraph (2), the
Commission shall issue a written statement briefly describing the basis for its
decision.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID54097c1d66064e1d97e01db30d3f56de"><enum>(4)</enum><text display-inline="yes-display-inline">Requests for re-evaluation under paragraph
(2) shall be determined by the Commission, without delegation to the Director
of the Commission.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID5fe41c43279249e8a0a462838b47863d" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Commission information</header>
<subsection commented="no" display-inline="no-display-inline" id="IDc1084514d1f54761bd50201d0708fc60"><enum>(a)</enum><header display-inline="yes-display-inline">Commission To make information publicly
available</header><text display-inline="yes-display-inline">The Commission
shall make its evaluation criteria developed pursuant to section 201(a) and its
evaluation reports prepared pursuant to section 202(a) publicly available
by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID2067ed363f4c41a481653f3766137eb6"><enum>(1)</enum><text display-inline="yes-display-inline">posting such material on the Commission’s
Internet website; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb037f0eba9c745c6a7dceb7300ee8d60"><enum>(2)</enum><text display-inline="yes-display-inline">delivering copies free of charge upon each
request to an email address and toll-free telephone number maintained by the
Commission for such requests.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1d46c006efc5445eaf4055e6ed6b2ea2"><enum>(b)</enum><header display-inline="yes-display-inline">Commission’s access to
records</header><text display-inline="yes-display-inline">The Commission shall
assign the lowest possible summary numerical rating to any State program for
which the responsible State agencies and officials do not cooperate in the
Commission’s evaluation process under section 202(a) or allow complete access
to information, records, and personnel the Commission deems relevant to its
evaluation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDcb97cfd9513441169582c6b361f4541e"><enum>(c)</enum><header display-inline="yes-display-inline">Confidentiality retained</header><text display-inline="yes-display-inline">Submission of information to the Commission
pursuant to subsection (b) does not waive or alter its treatment as
confidential, privileged, or protected information under State or Federal law,
and information submitted or obtained—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID06bca7d11cf24f19a7ba93f33dfdafea"><enum>(1)</enum><text display-inline="yes-display-inline">is not subject to Federal laws requiring
the disclosure of information held by federal officers or agencies; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8fc75d196a5043ea8452aa1009aa4849"><enum>(2)</enum><text display-inline="yes-display-inline">is not subject to discovery through
proceedings against, or subpoenas naming, the Commission or its officers or
employees.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDd5d43fdf073a476299991b6f1afb79d5"><enum>(d)</enum><header display-inline="yes-display-inline">Freedom of Information Act</header><text display-inline="yes-display-inline">The Commission shall be deemed an
<quote>agency responsible for the regulation or supervision of financial
institutions</quote> for purposes of section 552(b)(8) of title 5, United
States Code, and Commission records relating to the evaluation of a State
pursuant to section 202 of this Act shall, with the exception of the public
report prepared by the Commission, be deemed related to <quote>examination,
operating, or condition reports</quote> for purposes of such section.</text>
</subsection></section><enum>III</enum><header display-inline="yes-display-inline">Supervision of mortgage companies and
mortgage originators</header>
<section commented="no" display-inline="no-display-inline" id="IDba28d53abe974ff6ae599bc7c1e593dc" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Clarification of Truth in Lending Act
enforcement responsibilities</header><text display-inline="no-display-inline">Section 108 of the Truth in Lending Act (15
U.S.C. 1607) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDcd12b5a26f08418095da75ac665e3a05"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b), by striking each
reference to <quote>subsection (a)</quote> and inserting <quote>subsection (a)
or (f)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe47e4dc7fabe46f29173fcf382f51400"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9D928D530A7E4E2E9CC9AC53BF09C37E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID214546845f694752a1b60fa79c4d2cef"><enum>(f)</enum><header display-inline="yes-display-inline">Holding company affiliates</header><text display-inline="yes-display-inline">Compliance with the requirements imposed
under this subchapter shall be enforced under section 8 of the Federal Deposit
Insurance Act (12 U.S.C. 1818) in the case of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDd5362b09a00147b1904843c8ae9af123"><enum>(1)</enum><text display-inline="yes-display-inline">bank holding companies, and subsidiaries
(other than depository institutions or subsidiaries of depository institutions)
of bank holding companies, by the Board; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID16f3da74678d4d3bba839dfdff225be9"><enum>(2)</enum><text display-inline="yes-display-inline">savings and loan holding companies, and
subsidiaries (other than depository institutions or subsidiaries of depository
institutions) of savings and loan holding companies, by the Director of the
Office of Thrift Supervision.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID57964a40a87f4c5a9908f24c1d77abf2"><enum>(g)</enum><header display-inline="yes-display-inline">State enforcement authority</header><paragraph commented="no" display-inline="yes-display-inline" id="id1CFFF8C8E2E7441EB299176C284D292B"><enum>(1)</enum><text display-inline="yes-display-inline">State agencies are authorized to enforce
compliance with the requirements imposed under this subchapter with respect to
extensions of credit secured by a consumer’s dwelling (including residential
mortgage transactions) against mortgage companies and mortgage loan originators
regulated or licensed by each such State agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id335CE7B2FE764700996CEBC3F6229B87" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">No State agency shall have the authority
under paragraph (1) of this subsection to take any action against any person
covered under subsection (a) of this section, or any subsidiary of such person,
or any mortgage loan originators employed by the foregoing.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id943E9BB1C7A74B4BB411268E0C2EB6E0" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">The authority granted to State agencies
under paragraph (1) of this subsection does not affect the authority conferred
under subsection (c) or subsection (f) of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAD299475574244B4AA8485C384295CB9" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">For purposes of this subsection, the terms
<term>mortgage company</term> and <term>mortgage loan originator</term> have
the meanings given the terms by section 3 of the Mortgage Origination
Commission Act of
2008.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="IDf440d32d2b704267a75171b32a2be29e" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Board of Governors examination
authority</header><text display-inline="no-display-inline">Section 5 of the
Bank Holding Company Act (12 U.S.C. 1844) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDfef42c09cc9446749e6e664a2a1c2127"><enum>(1)</enum><text display-inline="yes-display-inline">in section 5(c)(2)(C)(ii), by striking
<quote>any subsidiary</quote> and inserting “except as provided in subparagraph
(F), any subsidiary,”; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDcf53147acea84b3c8a5ee41ae986ff51"><enum>(2)</enum><text display-inline="yes-display-inline">in section 5(c)(2), by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="idDD1F85E785344E97A436294CA1D6B5F7" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="ID22eb7f656e4f445f9b76555b181d6ef4"><enum>(F)</enum><header display-inline="yes-display-inline">Mortgage company examinations</header><clause commented="no" display-inline="yes-display-inline" id="id6F7B1341AB174D3FBACF96C0C3DF3914"><enum>(i)</enum><text display-inline="yes-display-inline">The Board may make examinations of each
bank holding company, and each subsidiary of such holding company, that is a
mortgage company.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id64D5069942A24B8BACD3DADB8F57FB3F" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">The Board shall conduct such examinations
not less than once every 18 months.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id34629B01FEE247B68779DBB3D14B09F9" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">For purposes of this subparagraph, the term
<term>mortgage company</term> has the meaning given the term by section 3 of
the Mortgage Origination Commission Act of
2008.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="IDdba62927ebfc47efb8beedab8db57e56" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Office of Thrift Supervision examination
authority</header><text display-inline="no-display-inline">Section 10 of the
Home Owners Loan Act (12 U.S.C. 1467a) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id9EC675DE234F4831B2A12F2831F44DE5" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID89651eefd958417ba8babddd0ae4cb59"><enum>(u)</enum><header display-inline="yes-display-inline">Mortgage company examinations</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID1b6975556ca241368bc87bac3eab50c5"><enum>(1)</enum><text display-inline="yes-display-inline">The Director may examine each savings and
loan holding company, and each subsidiary of such savings and loan holding
company, that is a mortgage company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb34dfe0c4ce94cc9bc49e2a2e61ba3d6"><enum>(2)</enum><text display-inline="yes-display-inline">The Director shall conduct such
examinations not less than once every 18 months.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID157d51329d524e529bf529381970b27a"><enum>(3)</enum><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>mortgage company</term> has the meaning given the term by section 3 of
the Mortgage Origination Commission Act of
2008.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section>