I 112th CONGRESS 2d Session H. R. 4163 IN THE HOUSE OF REPRESENTATIVES March 7, 2012 Mr. Gary G. Miller of California (for himself and Mr. Sherman) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend certain provisions of the Truth in Lending Act related to the compensation of mortgage originators, and for other purposes.

1.

Short title

This Act may be cited as the Preserving Consumers’ Mortgage Origination Choices Act of 2012.

2.

Compensation of mortgage originators by mortgage brokers

Subsection (c)(4) of section 129B of the Truth in Lending Act (as added by Public Law 111–203) is amended by adding at the end the following new subparagraph: (E)prohibiting a mortgage originator who receives compensation directly from a consumer in accordance with this section from compensating another mortgage originator employee, mortgage originator agent, or mortgage originator contractor based on the principal amount of the loan, provided that the amount of compensation received by such employee, agent, or contractor may not vary based on any other terms of the loan. .

3.

Limited Reduction in Mortgage Originator Compensation

Section 129B of such Act is amended— (1)by redesigning subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; and (2)by inserting after subsection (c) the following new subsection: (d)

Reduction in Mortgage Originator Compensation To Pay for Cost Increases Beyond the Control of the Originator

A mortgage originator, at the request of a consumer, may reduce the amount of compensation being received by such originator to offset settlement charges, other than settlement charges controlled by such originator, which are permitted under the Real Estate Settlement Procedures Act (12 U.S.C. 2601–2617), that exceed the amounts previously disclosed on the good faith estimate of the settlement charges provided to such consumer pursuant to section 5(c) of such Act (12 U.S.C. 2604(c)), provided that the originator’s compensation may not increase. .