II 111th CONGRESS 1st Session S. 911 IN THE SENATE OF THE UNITED STATES April 28, 2009 Mr. Merkley 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 prohibit prepayment penalties, and for other purposes.

1.

Short title

This Act may be cited as the Promoting Mortgage Responsibility Act.

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:

129B.

Prohibition on prepayment penalties

No prepayment fees or penalties shall be charged or collected under the terms of any consumer credit transaction secured by an owner-occupied principal dwelling of the consumer. Any prepayment penalty in violation of this section shall be unenforceable.

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