I 112th CONGRESS 2d Session H. R. 4076 IN THE HOUSE OF REPRESENTATIVES February 17, 2012 Mr. Frank of Massachusetts introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to add a rule of construction relating to certain payments to an employee of a mortgage originator.

1.

Rule of construction

Section 129B(c)(4) of the Truth in Lending Act is amended— (1)in subparagraph (C), by striking or at the end; (2)in subparagraph (D), by striking the period and inserting ; or; and (3)by adding at the end the following new subparagraph: (E)prohibiting a creditor or mortgage originator from reducing compensation to an employee mortgage originator if, after an initial annual percentage rate (APR) offer has been disclosed to a consumer by the employee mortgage originator, such employee mortgage originator makes a subsequent offer to the consumer that— (i)consists only of a reduction in the APR from the initial disclosed APR; and (ii)is made in response to a lower APR offer disclosed to the consumer by another creditor or mortgage originator. .