I 112th CONGRESS 2d Session H. R. 4323 IN THE HOUSE OF REPRESENTATIVES March 29, 2012 Mr. Huizenga of Michigan (for himself, Mr. Royce, Mr. Clay, and Mr. David Scott of Georgia) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to improve upon the definitions provided for points and fees in connection with a mortgage transaction.

1.

Short title

This Act may be cited as the Consumer Mortgage Choice Act.

2.

Definition of points and fees

(a)

Amendment to Section 103 of TILA

Section 103(bb)(4) of the Truth in Lending Act (15 U.S.C. 1602(bb)(4)) is amended— (1)in subparagraph (B), by inserting , but not including compensation paid by a mortgage originator or a creditor to an individual person employed by the mortgage originator or creditor after transaction; and (2)in subparagraph (C)— (A)by striking an escrow for future payment of taxes and inserting the charges set forth under section 106(e)(3); (B)in clause (ii), by inserting , except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(7)) after compensation; and (C)by striking clause (iii) and inserting the following: (iii)the charge is— (I)a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or (II)a charge set forth in section 106(e)(1). . (b)

Amendment to Section 129C of TILA

Section 129C of the Truth in Lending Act (15 U.S.C. 1639c) is amended— (1)in subsection (a)(5)(C), by striking , other and all that follows through or mortgage originator; and (2)in subsection (b)(2)(C)(i), by striking (other and all that follows through or mortgage originator).