Modifications to definitions

(a)

Loan originator definition

Section 1503(4) of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5102(4)) is amended— (1)in subparagraph (A)— (A)in clause (iii), by striking and at the end; (B)in clause (iv), by striking the period and inserting ; and; and (C)by adding at the end the following new clause:

(v)does not include an individual or entity that is a seller of manufactured homes, unless such individual or entity is engaged in the business of a loan originator or receives compensation or gain for engaging in activities described under clause (i) that is in excess of any compensation or gain received in a comparable cash transaction.

; and

(2)by adding at the end the following:

(E)

Engaged in the business of a loan originator

For purposes of this paragraph, the term engaged in the business of a loan originator means to perform loan originator activities described under subparagraph (A)(i) as a regular course of trade or business in exchange for compensation or gain paid solely for engaging in the sale or distribution of residential mortgage loans.

(b)

High-Cost mortgage definition

Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended— (1)by redesignating subsection (aa) (relating to disclosure of greater amount or percentage), as so designated by section 1100A of Public Law 111–203, as subsection (bb); (2)by redesignating subsection (bb) (relating to high-cost mortgages), as so designated by section 1100A of Public Law 111–203, as subsection (aa), and moving such subsection to immediately follow subsection (z); and (3)in subsection (aa)(1)(A), as so redesignated— (A)in clause (i)(I)— (i)by striking (8.5 percentage points, if the dwelling is personal property and the transaction is for less than $50,000); and (ii)by striking or at the end; (B)in clause (i)(II), by adding or at the end; (C)in clause (i), by adding at the end the following:

(III)by a first mortgage on a consumer’s principal dwelling that is considered personal property (or is a consumer credit transaction that does not include the purchase of real property on which a dwelling is to be placed), the annual percentage rate at consummation of the transaction will exceed the average prime offer rate, as defined in section 129C(b)(2)(B), for a comparable transaction, by more than— (aa)8.5 percentage points, in the case of a transaction in an amount of $50,000 or more, but less than $75,000 (as such amounts are adjusted by the Bureau to reflect the change in the Consumer Price Index); (bb)10.5 percentage points, in the case of a transaction in an amount of more than $30,000, but less than $50,000 (as such amounts are adjusted by the Bureau to reflect the change in the Consumer Price Index); or (cc)12.5 percentage points, in the case of a transaction in an amount of $30,000 or less (as such amount is adjusted by the Bureau to reflect the change in the Consumer Price Index), or a higher percentage established by the Bureau not to exceed 14.5 percentage points in such cases, if the Bureau determines that the lower rate would restrict access to credit and that raising the rate would not have a detrimental impact on consumer protection.

; and

(D)in clause (ii)— (i)in subclause (I), by striking or at the end; and (ii)by adding at the end the following:

(III)in the case of a transaction for less than $75,000 in which the dwelling is considered personal property (or is a consumer credit transaction that does not include the purchase of real property on which a dwelling is to be placed) the greater of 5 percent of the total transaction amount or $3,000; or