[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 912 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 912

       To prohibit yield spread premiums, and for other purposes.


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                   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

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                                 A BILL


 
       To prohibit yield spread premiums, 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 ``Transparency for Homeowners Act of 
2009''.

SEC. 2. PROHIBITION ON YIELD SPREAD PREMIUMS.

    (a) In General.--No person shall provide, and no mortgage 
originator shall receive, directly or indirectly, any compensation that 
is based on, or varies with, the terms of any home mortgage loan (other 
than the amount of the loan).
    (b) Definitions.--For purposes of this Act--
            (1) the term ``home mortgage loan'' means a loan secured by 
        a mortgage or lien on residential property;
            (2) the term ``mortgage originator'' means any creditor or 
        other person, including a mortgage broker or bank lender, who, 
        for compensation or in anticipation of compensation, engages 
        either directly or indirectly in the--
                    (A) acceptance of applications for home mortgage 
                loans;
                    (B) solicitation of home mortgage loans on behalf 
                of borrowers;
                    (C) negotiation of terms or conditions of home 
                mortgage loans on behalf of borrowers or lenders; or
                    (D) negotiation of sales of existing home mortgage 
                loans to institutional or noninstitutional lenders; and
            (3) the term ``residential property'' means a 1-4 family, 
        owner-occupied residence, including a 1-family unit in a 
        condominium project, a membership interest and occupancy 
        agreement in a cooperative housing project, and a manufactured 
        home and the lot on which the home is situated.
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