[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1077 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1077

   To amend the Truth in Lending Act to improve upon the definitions 
provided for points and fees in connection with a mortgage transaction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2013

 Mr. Huizenga of Michigan (for himself, Mr. Royce, Mr. David Scott of 
Georgia, Mr. Meeks, Mr. Clay, Mr. Stivers, Mr. Peters of Michigan, and 
 Mr. Bachus) 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.

    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 ``Consumer Mortgage Choice Act''.

SEC. 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) by striking ``paragraph (1)(B)'' and inserting 
        ``paragraph (1)(A) and section 129C'';
            (2) in subparagraph (A), by striking ``except interest or 
        the time-price differential'' and inserting the following:
                    ``except--
                            ``(i) interest and the time-price 
                        differential; and
                            ``(ii) the amount of any loan level price 
                        adjustment payment set by the Federal National 
                        Mortgage Association, the Federal Home Loan 
                        Mortgage Corporation, the Federal Housing 
                        Administration, or similar governmental entity 
                        or government-sponsored enterprise'';
            (3) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) all compensation paid directly by a consumer 
                to a mortgage originator, including a mortgage 
                originator that is also the creditor in a table-funded 
                transaction, but not including compensation paid by a 
                mortgage originator or a creditor to an individual 
                employed by the mortgage originator or creditor'';
            (4) in subparagraph (C)--
                    (A) by inserting ``and insurance'' after ``taxes'';
                    (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);''; and
            (5) in subparagraph (D)--
                    (A) by striking ``accident,''; and
                    (B) by striking ``or any payments'' and inserting 
                ``and any payments''.
    (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 ``103'' and all 
        that follows through ``or mortgage originator'' and inserting 
        ``103(bb)(4)''; and
            (2) in subsection (b)(2)(C)(i), by striking ``103'' and all 
        that follows through ``or mortgage originator)'' and inserting 
        ``103(bb)(4)''.
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