[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2794 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2794

To amend the Truth in Lending Act to prohibit prepayment penalties, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 10, 2009

  Ms. Fudge introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Truth in Lending Act to prohibit prepayment penalties, 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 ``Promoting Mortgage Responsibility 
Act''.

SEC. 2. PROHIBITION ON PREPAYMENT PENALTIES.

    The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by 
inserting after section 129A the following new section:

``SEC. 129B. PROHIBITION ON PREPAYMENT PENALTIES.

    ``(a) In General.--No prepayment fees or penalties may be charged 
or collected under the terms of any consumer credit transaction secured 
by an owner-occupied principal dwelling of the consumer.
    ``(b) Unenforceable.--Any prepayment penalty in violation of 
subsection (a) shall be unenforceable.''.
                                 <all>