[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1731 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1731

     To amend the Truth in Lending Act to require any creditor who 
  transfers, sells, or conveys certain residential mortgage loans to 
 third parties to retain an economic interest in a material portion of 
       the credit risk for any such loan, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2009

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

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                                 A BILL


 
     To amend the Truth in Lending Act to require any creditor who 
  transfers, sells, or conveys certain residential mortgage loans to 
 third parties to retain an economic interest in a material portion of 
       the credit risk for any such loan, 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 ``Credit Risk Retention Act of 2009''.

SEC. 2. CREDIT RISK RETENTION.

    Section 129 of the Truth in Lending Act (U.S.C. 1639) is amended by 
adding at the end the following new subsection:
    ``(m) Credit Risk Retention.--
            ``(1) In general.--The Federal banking agencies shall 
        prescribe regulations jointly to require any creditor that 
        makes a residential mortgage loan that is not a qualified 
        mortgage (as defined by such agencies) to retain an economic 
        interest in a material portion of the credit risk for any such 
        loan that the creditor transfers, sells, or conveys to a third 
        party.
            ``(2) Standards for regulations.--Regulations prescribed 
        under paragraph (1) shall--
                    ``(A) apply only to residential mortgage loans that 
                are not qualified mortgages (as so defined);
                    ``(B) prohibit creditors from directly or 
                indirectly hedging or otherwise transferring the credit 
                risk creditors are required to retain under the 
                regulations with respect to any residential mortgage 
                loan; and
                    ``(C) require creditors to retain at least 5 
                percent of the credit risk on any non-qualified 
                mortgage that is transferred, sold or conveyed.''.
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