[House Report 110-450]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-450

======================================================================

 
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3915) TO AMEND THE TRUTH 
   IN LENDING ACT TO REFORM CONSUMER MORTGAGE PRACTICES AND PROVIDE 
     ACCOUNTABILITY FOR SUCH PRACTICES, TO ESTABLISH LICENSING AND 
  REGISTRATION REQUIREMENTS FOR RESIDENTIAL MORTGAGE ORIGINATORS, TO 
PROVIDE CERTAIN MINIMUM STANDARDS FOR CONSUMER MORTGAGE LOANS, AND FOR 
                             OTHER PURPOSES

                                _______
                                

 November 14, 2007.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

    Mr. Arcuri, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 825]

    The Committee on Rules, having had under consideration 
House Resolution 825, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3915, the 
Mortgage Reform and Anti-Predatory Lending Act of 2007, under a 
structured rule. The rule provides one hour of general debate 
equally divided and controlled by the chairman and ranking 
minority member of the Committee on Financial Services. The 
rule waives all points of order against consideration of the 
bill except clauses 9 and 10 of rule XXI. The rule provides 
that the amendment in the nature of a substitute recommended by 
the Committee on Financial Services now printed in the bill 
shall be considered as an original bill for the purpose of 
amendment and shall be considered as read. The rule waives all 
points of order against the amendment in the nature of a 
substitute except for clause 10 of rule XXI. This waiver does 
not affect the point of order available under clause 9 of rule 
XXI (regarding earmark disclosure).
    The rule makes in order only those amendments printed in 
this report. The amendments made in order may be offered only 
in the order printed in this report, may be offered only by a 
Member designated in this report, shall be considered as read, 
shall be debatable for the time specified in this report 
equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment except as specified 
in this report, and shall not be subject to a demand for a 
division of the question in the House or in the Committee of 
the Whole. All points of order against the amendments except 
for clauses 9 and 10 of rule XXI are waived. The rule provides 
one motion to recommit with or without instructions. The rule 
provides that, notwithstanding the operation of the previous 
question, the Chair may postpone further consideration of the 
bill to a time designated by the Speaker.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except for clauses 9 and 10 of rule XXI) includes a 
waiver of Section 302(f) of the Congressional Budget Act which 
prohibits consideration of legislation providing new budget 
authority in excess of a committee's 302(a) allocation of such 
authority. The waiver of all points of order against the 
committee amendment in the nature of a substitute (except for 
clause 10 of rule XXI) includes a waiver of clause 7 of rule 
XVI, regarding germaneness.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Frank (MA)/Bachus (AL): The amendment makes a number of 
technical and conforming changes as well as enhancements to the 
bill including the following: (1) clarifies the definition of 
loan originator; (2) narrows the scope of the preemption 
provision to make it clear that states cannot use or adopt 
state laws against securitizers/assignees for violations of the 
national standards or to impose remedies outside of the unique 
Federal remedy established in the bill, and to make it clear 
that actions for fraud, misrepresentation, deception, false 
advertising or civil rights laws are not preempted; (3) 
clarifies the registration requirements for the Nationwide 
Mortgage Licensing System and Registry; (4) allows consumers to 
obtain a cure from assignee or securitizer if creditor or other 
assignees cease to exist or go bankrupt; (5) clarifies the 
incentive compensation provision; and (6) adds a monthly 
disclosure requirement for mortgages. (10 minutes)
    2. Kanjorski (PA)/Biggert (IL)/Capito (WV)/Hodes (NH)/
Moore, Gwen (WI): The amendment, reflecting provisions from 
H.R. 3837 (The Escrow, Appraisal, and Mortgage Servicing 
Improvements Act), would better consumer protection by 
improving mortgage servicing, protecting appraiser 
independence, ensuring better appraisal quality and regulatory 
oversight, requiring escrows for mortgages for borrowers who 
might experience difficulty with repayment, and establishing 
disclosure for consumers who waive escrow accounts. (10 
minutes)
    3. Maloney (NY): Would require a borrower to receive the 
option of a mortgage without a prepayment penalty, if they are 
offered an amendment with a prepayment penalty. Sets the 
maximum time for a prepayment penalty of 3 years and a maximum 
prepayment amount of 3% of the loan for the first year, 2% for 
the second year and 1% for the third year. (10 minutes)
    4. Watt (NC)/Miller, Brad (NC): This amendment allows for 
actual damages in the liability section. (10 minutes)
    5. Watt (NC)/Miller, Brad (NC): The amendment requires the 
assignee to have policies/procedures and to cure the loan to 
avoid being liable for rescission. (10 minutes)
    6. Watt (NC)/Miller, Brad (NC): The amendment changes the 
irrebuttable presumption under section 203 to a rebuttable 
presumption for all mortgages that allow a borrower to defer 
payment of principal or interest. (10 minutes)
    7. Hensarling (TX): Amendment would remove the civil 
liability of a lender and cancel the right of rescission for a 
borrower in instances when a borrower knowingly lied on their 
mortgage loan application. (10 minutes)
    8. Watt (NC)/Miller, Brad (NC): The second-degree amendment 
to Hensarling #7 adds that the obligor must have had actual 
knowledge of the false material information for the exemption 
from liability to take effect. (10 minutes)
    9. Meeks (NY): The amendment provides that the Nationwide 
Mortgage Licensing System and Registry shall not directly or 
indirectly offer educational courses for pre-licensure or 
continuing education for mortgage originators. In approving 
courses under this Act, the Nationwide Mortgage Licensing 
System and Registry shall apply reasonable standards in the 
review and approval of courses. (10 minutes)
    10. Putnam (FL): The amendment would direct the GAO to 
conduct a study to determine the effects the enactment of H.R. 
3915 will have on the availability and affordability of credit 
for homebuyers and mortgage lending, and to submit a report to 
Congress containing the findings and conclusions within one 
year of the enactment of the legislation. (10 minutes)
    11. Brown-Waite (FL): The amendment excludes loans insured 
by the Federal Housing Administration from the provisions of 
the bill. (10 minutes)
    12. Garrett (NJ): The amendment would strike the rebuttable 
presumption under section 203, stating that all qualified safe 
harbor loans that meet the requirements listed in section 
203(c)(3)(C) fall under the safe harbor. (10 minutes)
    13. Miller, Brad (NC)/Frank (MA)/Watt (NC): Allow 
regulators to fine mortgage originators, assignees and 
securitizers who more than occasionally (``pattern or 
practice'') violate the minimum standards for loans established 
in the bill at least $1 million, $25,000 per loan. Proceeds 
would be held in trust by the US Treasury for the benefit of 
borrowers who have no other avenue for obtaining a remedy. (10 
minutes)
    14. Green, Al (TX): States that educational requirements 
include instruction on fraud, consumer protection, and fair 
lending issues. (10 minutes)
    15. McHenry (NC): The amendment would strike Title III--
High-Cost Mortgages from the bill. (10 minutes)
    16. Price, Tom (GA): This amendment would exempt prime 
loans from the bill. (10 minutes)
    17. Van Hollen (MD): The amendment requires that in the 
case of a residential mortgage loan, closing costs may not 
exceed by more than 10% any estimate of closing costs disclosed 
to the consumer in advance of closing. (10 minutes)
    18. Sutton (OH): This amendment would require loan 
creditors or servicers to provide a written notice to consumers 
with hybrid adjustable rate mortgages six months before their 
interest rates are due to reset. This notice would state the 
new interest rate, an explanation of how the new interest rate 
would be determined, the creditor's or servicer's good faith 
estimate of the monthly payment that will apply after the 
reset, a list of alternatives consumers may pursue before the 
date of adjustment or reset, and contact information for local 
HUD-approved housing counseling agencies and the state housing 
finance authority. (10 minutes)

            TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE

1. An Amendment To Be Offered by Representative Frank of Massachusetts, 
               or His Designee, Debatable for 10 Minutes

  Page 6, strike line 19 and all that follows through line 22 
and insert the following new clause:
                          (iii) does not include any individual 
                        who is not otherwise described in 
                        clause (i) or (ii) and who performs 
                        purely administrative or clerical tasks 
                        on behalf of a person who is described 
                        in any such clause.
  Page 19, strike line 16 and all that follows through line 24, 
and insert the following new subparagraph:
                  (B) personal history and experience, 
                including authorization for the Nationwide 
                Mortgage Licensing System and Registry to 
                obtain information related to any 
                administrative, civil or criminal findings by 
                any governmental jurisdiction.
  Page 20, line 1, strike ``(b) Unique Identifier.--The Federal 
banking agencies'' and insert ``(b) Coordination.--
          ``(1) Unique identifier.--The Federal banking 
        agencies''.
  Page 20, after line 9, insert the following new paragraph:
          (2) Nationwide mortgage licensing system and registry 
        development.--To facilitate the transfer of information 
        required by subsection (a)(2), the Nationwide Mortgage 
        Licensing System and Registry shall coordinate with the 
        Federal banking agencies, through the Financial 
        Institutions Examination Council, concerning the 
        development and operation, by such System and Registry, 
        of the registration functionality and data requirements 
        for loan originators.
  Page 37, line 22, strike the closing quotation marks and the 
second period.
  Page 37, after line 22, insert the following new paragraph:
          ``(10) Servicer.--The term `servicer' has the same 
        meaning as in section 6(i)(2) of the Real Estate 
        Settlement Procedures Act of 1974.''.
  Page 38, beginning on line 12, strike ``, registered, and, 
when required, licensed'' and insert ``and, when required, 
registered and licensed''.
  Page 40, line 22, strike ``to repay and'' and all that 
follows through line 25 and insert ``to repay and, in the case 
of a refinancing of an existing residential mortgage loan, 
receives a net tangible benefit, as determined in accordance 
with regulations prescribed under subsections (a) and (b) of 
section 129B.''
  Page 41, line 20, insert ``, the Chairman of the State 
Liaison Committee to the Financial Institutions Examination 
Council,'' after ``Secretary''.
  Page 43, line 13, strike ``ANTI-STEERING'' and insert 
``PROHIBITION ON STEERING INCENTIVES''.
  Page 43, line 18, strike ``In general'' and insert ``Amount 
of originator compensation cannot vary based on terms''
  Page 43, beginning on line 20, strike ``(including yield 
spread premium)'' and insert ``, including yield spread premium 
or any equivalent compensation or gain,''.
  Page 44, line 1, strike ``Anti-steering regulations'' and 
insert ``Regulations''.
  Page 44, line 9, insert ``(in accordance with regulations 
prescribed under section 129B(a))'' before the semicolon.
  Page 44, line 10, insert ``in the case of a refinancing of a 
residential mortgage loan,'' after (ii).
  Page 44, line 11, insert ``(in accordance with regulations 
prescribed under section 129B(b))'' before the semicolon.
  Page 45, strike line 6 and all that follows through line 11 
and insert the following new subparagraph:
                  ``(B) restricting a consumer's ability to 
                finance, including through rate or principal, 
                any origination fees or costs permitted under 
                this subsection, or the originator's ability to 
                receive such fees or costs (including 
                compensation) from any person, so long as such 
                fees or costs were fully and clearly disclosed 
                to the consumer earlier in the application 
                process as required by 129A(a)(1)(C)(ii) and do 
                not vary based on the terms of the loan or the 
                consumer's decision about whether to finance 
                such fees or costs; or''.
  Page 61, after line 15, insert the following new paragraph 
(and redesignate subsequent paragraphs accordingly):
          ``(4) Absent parties.--
                  ``(A) Absent creditor.--Notwithstanding the 
                exemption provided in paragraph (3), if the 
                creditor with respect to a residential mortgage 
                loan made in violation of subsection (a) or (b) 
                has ceased to exist as a matter of law or has 
                filed for bankruptcy protection under title 11, 
                United States Code, or has had a receiver or 
                liquidating agent appointed, a consumer may 
                maintain a civil action against an assignee to 
                cure, but not rescind, the residential mortgage 
                loan, plus the costs and reasonable attorney's 
                fees incurred in obtaining such remedy.
                  ``(B) Absent creditor and assignee.--
                Notwithstanding the exemption provided in 
                paragraph (3), if the creditor with respect to 
                a residential mortgage loan made in violation 
                of subsection (a) or (b) and each assignee of 
                such loan have ceased to exist as a matter of 
                law or have filed for bankruptcy protection 
                under title 11, United States Code, or have had 
                receivers or liquidating agents appointed, the 
                consumer may maintain the civil action referred 
                to in subparagraph (A) against the 
                securitizer.''.
  Page 61, line 23, insert ``and the payment of such additional 
costs as the obligor may have incurred as a result of the 
violation and in connection with obtaining a cure of the loan, 
including a reasonable attorney's fee'' before the period.
  Page 62, line 15, insert ``or obtain'' after ``provide''.
  Page 62, line 16, insert ``, or a consumer cannot obtain,'' 
after ``cannot provide''.
  Page 65, line 6, insert ``and the consumer would have had a 
valid basis for such an action if it had been brought before 
the end of such period'' after ``subsection (d)''.
  Page 66, beginning on line 21, strike ``that insurance 
premiums'' and insert ``that--
          ``(1) insurance premiums''.
  Page 66, line 24, strike the period and insert ``; and''.
  Page 66, after line 24, insert the following new paragraph:
          ``(2) this subsection shall not apply to credit 
        unemployment insurance for which the unemployment 
        insurance premiums are reasonable and at no additional 
        cost to the consumer, the creditor receives no direct 
        or indirect compensation in connection with the 
        unemployment insurance premiums, and the unemployment 
        insurance premiums are paid pursuant to another 
        insurance contract and not paid to an affiliate of the 
        creditor.''.
  Page 69, strike line 1 and all that follows through line 9 
and insert the following new subparagraphs:
                  ``(A) the provision, by the successor in 
                interest, of a notice to vacate to any bona 
                fide tenant at least 90 days before the 
                effective date of the notice to vacate.
                  ``(B) the rights of any bona fide tenant, as 
                of the date of such notice of foreclosure--
                          ``(i) under any bona fide lease 
                        entered into before the notice of 
                        foreclosure to occupy the premises 
                        until the end of the remaining term of 
                        the lease or the end of the 6-month 
                        period beginning on the date of the 
                        notice of foreclosure, whichever occurs 
                        first, subject to the receipt by the 
                        tenant of the 90-day notice under 
                        subparagraph (A); or
                          ``(ii) without a lease or with a 
                        lease terminable at will under State 
                        law, subject to the receipt by the 
                        tenant of the 90-day notice under 
                        subparagraph (A); and''.
  Page 69, after line 12, insert the following new subparagraph 
(and redesignate subsequent subparagraphs accordingly):
                  ``(A) the mortgagor under the contract is not 
                the tenant;''.
  Page 69, beginning on line 15, strike ``tenant to pay'' and 
insert ``receipt of''.
   Page 69, line 19, strike ``first-time''.
  Page 70, line 17, strike ``the consumer'' and insert ``in the 
case of a first-time borrower with respect to a residential 
mortgage loan that is not a qualified mortgage, the first-time 
borrower''.
  Page 71, line 25, insert ``or application thereof'' after 
``State law''.
  Page 72, strike line 5 and all that follows through line 8, 
and insert ``of such Act or any other State law the terms of 
which address the specific subject matter of subsection (a) 
(determination of ability to repay) or (b) (requirement of a 
net tangible benefit) of such section 129B.''.
  Page 72, strike line 9 and all that follows through line 17 
and insert the following new subsection:
  (b) Rules of Construction.--No provision of this section 
shall be construed as limiting--
          (1) the application of any State law against a 
        creditor;
          (2) the availability of remedies based upon fraud, 
        misrepresentation, deception, false advertising, or 
        civil rights laws--
                  (A) against any assignee, securitizer, or 
                securitization vehicle for its own conduct 
                relating to the making of a residential 
                mortgage loan to a consumer; or
                  (B) against any assignee, securitizer, or 
                securitization vehicle in the sale or purchase 
                of residential mortgage loans or securities; or
          (3) the application of any other State law against 
        any assignee, securitizer, or securitization vehicle 
        except as specifically provided in subsection (a) of 
        this section.
  Page 79, after line 2, insert the following new section (and 
redesignate the subsequent sections accordingly):

SEC. 212. DISCLOSURES REQUIRED IN MONTHLY STATEMENTS FOR RESIDENTIAL 
                    MORTGAGE LOANS.

  Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is 
amended by adding at the end the following new subsection:
  ``(e) Periodic Statements for Residential Mortgage Loans.--
          ``(1) In general.--The creditor, assignee, or 
        servicer with respect to any residential mortgage loan 
        shall transmit to the obligor, for each billing cycle, 
        a statement setting forth each of the following items, 
        to the extent applicable, in a conspicuous and 
        prominent manner:
                  ``(A) The amount of the principal obligation 
                under the mortgage.
                  ``(B) The current interest rate in effect for 
                the loan.
                  ``(C) The date on which the interest rate may 
                next reset or adjust.
                  ``(D) The amount of any prepayment fee to be 
                charged, if any.
                  ``(E) A description of any late payment fees.
                  ``(F) A telephone number and electronic mail 
                address that may be used by the obligor to 
                obtain information regarding the mortgage.
                  ``(G) Such other information as the Board may 
                prescribe in regulations.
          ``(2) Development and use of standard form.--The 
        Federal banking agencies shall jointly develop and 
        prescribe a standard form for the disclosure required 
        under this subsection, taking into account that the 
        statements required may be transmitted in writing or 
        electronically.''.
  Page 80, line 23, insert ``(10 percentage points, if the 
dwelling is personal property and the transaction is for less 
than $50,000)'' after ``8 percentage points''.
  Page 81, beginning on line 19, strike ``(8 percent if the 
dwelling is personal property)''.
  Page 100, line 6, strike ``tangible net benefit'' and insert 
``net tangible benefit (as determined in accordance with 
regulations prescribed under section 129B(b))''.
  Page 100, line 10, after the period, insert closing quotation 
marks and a second period.
  Page 100, strike line 11 and all that follows through line 
14.
  Page 102, line 23, insert ``at the end of the 6-month period 
beginning'' before ``on the date of''.
  Page 102, beginning on line 25, strike ``on or after the 
date'' and insert ``after the end of such period''.
                              ----------                              


     2. An Amendment To Be Offered by Representative Kanjorski of 
        Pennsylvania, or His Designee, Debatable for 10 Minutes

  Page 134, after line 13 insert the following new titles (and 
conform the table of contents accordingly):

                      TITLE VI--MORTGAGE SERVICING

SEC. 601. ESCROW AND IMPOUND ACCOUNTS RELATING TO CERTAIN CONSUMER 
                    CREDIT TRANSACTIONS.

  (a) In General.--Chapter 2 of the Truth in Lending Act (15 
U.S.C. 1631 et seq.) is amended by inserting after section 129B 
(as added by section 201) the following new section:

``SEC. 129C. ESCROW OR IMPOUND ACCOUNTS RELATING TO CERTAIN CONSUMER 
                    CREDIT TRANSACTIONS.

  ``(a) In General.--Except as provided in subsection (b) or 
(c), a creditor, in connection with the formation or 
consummation of a consumer credit transaction secured by a 
first lien on the principal dwelling of the consumer, other 
than a consumer credit transaction under an open end credit 
plan or a reverse mortgage, shall establish, at the time of the 
consummation of such transaction, an escrow or impound account 
for the payment of taxes and hazard insurance, and, if 
applicable, flood insurance, mortgage insurance, ground rents, 
and any other required periodic payments or premiums with 
respect to the property or the loan terms, as provided in, and 
in accordance with, this section.
  ``(b) When Required.--No impound, trust, or other type of 
account for the payment of property taxes, insurance premiums, 
or other purposes relating to the property may be required as a 
condition of a real property sale contract or a loan secured by 
a first deed of trust or mortgage on the principal dwelling of 
the consumer, other than a consumer credit transaction under an 
open end credit plan or a reverse mortgage, except when--
          ``(1) any such impound, trust, or other type of 
        escrow or impound account for such purposes is required 
        by Federal or State law;
          ``(2) a loan is made, guaranteed, or insured by a 
        State or Federal governmental lending or insuring 
        agency;
          ``(3) the consumer's debt-to-income ratio at the time 
        the home mortgage is established taking into account 
        income from all sources including the consumer's 
        employment exceeds 50 percent;
          ``(4) the transaction is secured by a first mortgage 
        or lien on the consumer's principal dwelling and the 
        annual percentage rate on the credit, at the time of 
        consummation of the transaction, will exceed by more 
        than 3.0 percentage points the yield on Treasury 
        securities having comparable periods of maturity on the 
        15th day of the month immediately preceding the month 
        in which the application of the extension of credit is 
        received by the creditor;
          ``(5) a consumer obtains a mortgage referred to in 
        section 103(aa);
          ``(6) the original principal amount of such loan at 
        the time of consummation of the transaction is--
                  ``(A) 90 percent or more of the sale price, 
                if the property involved is purchased with the 
                proceeds of the loan; or
                  ``(B) 90 percent or more of the appraised 
                value of the property securing the loan;
          ``(7) the combined principal amount of all loans 
        secured by the real property exceeds 95 percent of the 
        appraised value of the property securing the loans at 
        the time of consummation of the last mortgage 
        transaction;
          ``(8) the consumer was the subject of a proceeding 
        under title 11, United States Code, at any time during 
        the 7-year period preceding the date of the transaction 
        (as determined on the basis of the date of entry of the 
        order for relief or the date of adjudication, as the 
        case may be, with respect to such proceeding and 
        included in a consumer report on the consumer under the 
        Fair Credit Reporting Act); or
          ``(9) so required by the Board pursuant to 
        regulation.
  ``(c) Duration of Mandatory Escrow or Impound Account.--An 
escrow or impound account established pursuant to subsection 
(b), shall remain in existence for a minimum period of 5 years 
and until such borrower has sufficient equity in the dwelling 
securing the consumer credit transaction so as to no longer be 
required to maintain private mortgage insurance, or such other 
period as may be provided in regulations to address situations 
such as borrower delinquency, unless the underlying mortgage 
establishing the account is terminated.
  ``(d) Clarification on Escrow Accounts for Loans Not Meeting 
Statutory Test.--For mortgages not covered by the requirements 
of subsection (b), no provision of this section shall be 
construed as precluding the establishment of an impound, trust, 
or other type of account for the payment of property taxes, 
insurance premiums, or other purposes relating to the 
property--
          ``(1) on terms mutually agreeable to the parties to 
        the loan;
          ``(2) at the discretion of the lender or servicer, as 
        provided by the contract between the lender or servicer 
        and the borrower; or
          ``(3) pursuant to the requirements for the escrowing 
        of flood insurance payments for regulated lending 
        institutions in section 102(d) of the Flood Disaster 
        Protection Act of 1973.
  ``(e) Administration of Mandatory Escrow or Impound 
Accounts.--
          ``(1) In general.--Except as may otherwise be 
        provided for in this title or in regulations prescribed 
        by the Board, escrow or impound accounts established 
        pursuant to subsection (b) shall be established in a 
        federally insured depository institution.
          ``(2) Administration.--Except as provided in this 
        section or regulations prescribed under this section, 
        an escrow or impound account subject to this section 
        shall be administered in accordance with--
                  ``(A) the Real Estate Settlement Procedures 
                Act of 1974 and regulations prescribed under 
                such Act;
                  ``(B) the Flood Disaster Protection Act of 
                1973 and regulations prescribed under such Act; 
                and
                  ``(C) the law of the State, if applicable, 
                where the real property securing the consumer 
                credit transaction is located.
          ``(3) Applicability of payment of interest.--If 
        prescribed by applicable State or Federal law, each 
        creditor shall pay interest to the consumer on the 
        amount held in any impound, trust, or escrow account 
        that is subject to this section in the manner as 
        prescribed by that applicable State or Federal law.
          ``(4) Penalty coordination with respa.--Any action or 
        omission on the part of any person which constitutes a 
        violation of the Real Estate Settlement Procedures Act 
        of 1974 or any regulation prescribed under such Act for 
        which the person has paid any fine, civil money 
        penalty, or other damages shall not give rise to any 
        additional fine, civil money penalty, or other damages 
        under this section, unless the action or omission also 
        constitutes a direct violation of this section.
  ``(f) Disclosures Relating to Mandatory Escrow or Impound 
Account.--In the case of any impound, trust, or escrow account 
that is subject to this section, the creditor shall disclose by 
written notice to the consumer at least 3 business days before 
the consummation of the consumer credit transaction giving rise 
to such account or in accordance with timeframes established in 
prescribed regulations the following information:
          ``(1) The fact that an escrow or impound account will 
        be established at consummation of the transaction.
          ``(2) The amount required at closing to initially 
        fund the escrow or impound account.
          ``(3) The amount, in the initial year after the 
        consummation of the transaction, of the estimated taxes 
        and hazard insurance, including flood insurance, if 
        applicable, and any other required periodic payments or 
        premiums that reflects, as appropriate, either the 
        taxable assessed value of the real property securing 
        the transaction, including the value of any 
        improvements on the property or to be constructed on 
        the property (whether or not such construction will be 
        financed from the proceeds of the transaction) or the 
        replacement costs of the property.
          ``(4) The estimated monthly amount payable to be 
        escrowed for taxes, hazard insurance (including flood 
        insurance, if applicable) and any other required 
        periodic payments or premiums.
          ``(5) The fact that, if the consumer chooses to 
        terminate the account at the appropriate time in the 
        future, the consumer will become responsible for the 
        payment of all taxes, hazard insurance, and flood 
        insurance, if applicable, as well as any other required 
        periodic payments or premiums on the property unless a 
        new escrow or impound account is established.
  ``(g) Definitions.--For purposes of this section, the 
following definitions shall apply:
          ``(1) Flood insurance.--The term `flood insurance' 
        means flood insurance coverage provided under the 
        national flood insurance program pursuant to the 
        National Flood Insurance Act of 1968.
          ``(2) Hazard insurance.--The term `hazard insurance' 
        shall have the same meaning as provided for `hazard 
        insurance', `casualty insurance', `homeowner's 
        insurance', or other similar term under the law of the 
        State where the real property securing the consumer 
        credit transaction is located.''.
  (b) Implementation.--
          (1) Regulations.--The Board of Governors of the 
        Federal Reserve System, the Comptroller of the 
        Currency, the Director of the Office of Thrift 
        Supervision, the Federal Deposit Insurance Corporation, 
        the National Credit Union Administration Board, 
        (hereafter in this Act referred to as the ``Federal 
        banking agencies'') and the Federal Trade Commission 
        shall prescribe, in final form, such regulations as 
        determined to be necessary to implement the amendments 
        made by subsection (a) before the end of the 180-day 
        period beginning on the date of the enactment of this 
        Act.
          (2) Effective date.--The amendments made by 
        subsection (a) shall only apply to covered mortgage 
        loans consummated after the end of the 1-year period 
        beginning on the date of the publication of final 
        regulations in the Federal Register.
  (c) Clerical Amendment.--The table of sections for chapter 2 
of the Truth in Lending Act is amended by inserting after the 
item relating to section 129B (as added by section 201) the 
following new item:

``129C. Escrow or impound accounts relating to certain consumer credit 
          transactions.''.

SEC. 602. DISCLOSURE NOTICE REQUIRED FOR CONSUMERS WHO WAIVE ESCROW 
                    SERVICES.

  (a) In General.--Section 129C of the Truth in Lending Act (as 
added by section 601) is amended by adding at the end the 
following new subsection:
  ``(h) Disclosure Notice Required for Consumers Who Waive 
Escrow Services.--
          ``(1) In general.--If--
                  ``(A) an impound, trust, or other type of 
                account for the payment of property taxes, 
                insurance premiums, or other purposes relating 
                to real property securing a consumer credit 
                transaction is not established in connection 
                with the transaction; or
                  ``(B) a consumer chooses, at any time after 
                such an account is established in connection 
                with any such transaction and in accordance 
                with any statute, regulation, or contractual 
                agreement, to close such account,
        the creditor or servicer shall provide a timely and 
        clearly written disclosure to the consumer that advises 
        the consumer of the responsibilities of the consumer 
        and implications for the consumer in the absence of any 
        such account.
          ``(2) Disclosure requirements.--Any disclosure 
        provided to a consumer under paragraph (1) shall 
        include the following:
                  ``(A) Information concerning any applicable 
                fees or costs associated with either the non-
                establishment of any such account at the time 
                of the transaction, or any subsequent closure 
                of any such account.
                  ``(B) A clear and prominent notice that the 
                consumer is responsible for personally and 
                directly paying the non-escrowed items, in 
                addition to paying the mortgage loan payment, 
                in the absence of any such account, and the 
                fact that the costs for taxes, insurance, and 
                related fees can be substantial.
                  ``(C) A clear explanation of the consequences 
                of any failure to pay non-escrowed items, 
                including the possible requirement for the 
                forced placement of insurance by the creditor 
                or servicer and the potentially higher cost 
                (including any potential commission payments to 
                the servicer) or reduced coverage for the 
                consumer in the event of any such creditor-
                placed insurance.''.
  (b) Implementation.--
          (1) Regulations.--The Federal banking agencies and 
        the Federal Trade Commission shall prescribe, in final 
        form, such regulations as such agencies determine to be 
        necessary to implement the amendments made by 
        subsection (a) before the end of the 180-day period 
        beginning on the date of the enactment of this Act.
          (2) Effective date.--The amendments made by 
        subsection (a) shall only apply in accordance with the 
        regulations established in paragraph (1) and beginning 
        on the date occurring 180-days after the date of the 
        publication of final regulations in the Federal 
        Register.

SEC. 603. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 AMENDMENTS.

  (a) Servicer Prohibitions.--Section 6 of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended 
by adding at the end the following new subsections:
  ``(k) Servicer Prohibitions.--
          ``(1) In general.--A servicer of a federally related 
        mortgage shall not--
                  ``(A) obtain force-placed hazard insurance 
                unless there is a reasonable basis to believe 
                the borrower has failed to comply with the loan 
                contract's requirements to maintain property 
                insurance;
                  ``(B) charge fees for responding to valid 
                qualified written requests (as defined in 
                regulations which the Secretary shall 
                prescribe) under this section;
                  ``(C) fail to take timely action to respond 
                to a borrower's requests to correct errors 
                relating to allocation of payments, final 
                balances for purposes of paying off the loan, 
                or avoiding foreclosure, or other standard 
                servicer's duties;
                  ``(D) fail to respond within 10 business days 
                to a request from a borrower to provide the 
                identity, address, and other relevant contact 
                information about the owner assignee of the 
                loan; or
                  ``(E) fail to comply with any other 
                obligation found by the Secretary, by 
                regulation, to be appropriate to carry out the 
                consumer protection purposes of this Act.
          ``(2) Force-placed insurance defined.--For purposes 
        of this subsection and subsections (l) and (m), the 
        term `force-placed insurance' means hazard insurance 
        coverage obtained by a servicer of a federally related 
        mortgage when the borrower has failed to maintain or 
        renew hazard insurance on such property as required of 
        the borrower under the terms of the mortgage.
  ``(l) Requirements for Force-Placed Insurance.--A servicer of 
a federally related mortgage shall not be construed as having a 
reasonable basis for obtaining force-placed insurance unless 
the requirements of this subsection have been met.
          ``(1) Written notices to borrower.--A servicer may 
        not impose any charge on any borrower for force-placed 
        insurance with respect to any property securing a 
        federally related mortgage unless--
                  ``(A) the servicer has sent, by first-class 
                mail, a written notice to the borrower 
                containing--
                          ``(i) a reminder of the borrower's 
                        obligation to maintain hazard insurance 
                        on the property securing the federally 
                        related mortgage;
                          ``(ii) a statement that the servicer 
                        does not have evidence of insurance 
                        coverage of such property;
                          ``(iii) a clear and conspicuous 
                        statement of the procedures by which 
                        the borrower may demonstrate that the 
                        borrower already has insurance 
                        coverage; and
                          ``(iv) a statement that the servicer 
                        may obtain such coverage at the 
                        borrower's expense if the borrower does 
                        not provide such demonstration of the 
                        borrower's existing coverage in a 
                        timely manner;
                  ``(B) the servicer has sent, by first-class 
                mail, a second written notice, at least 30 days 
                after the mailing of the notice under 
                subparagraph (A) that contains all the 
                information described in each clauses of such 
                subparagraph; and
                  ``(C) the servicer has not received from the 
                borrower any demonstration of hazard insurance 
                coverage for the property securing the mortgage 
                by the end of the 15-day period beginning on 
                the date the notice under subparagraph (B) was 
                sent by the servicer.
          ``(2) Sufficiency of demonstration.--A servicer of a 
        federally related mortgage shall accept any reasonable 
        form of written confirmation from a borrower of 
        existing insurance coverage, which shall include the 
        existing insurance policy number along with the 
        identity of, and contact information for, the insurance 
        company or agent.
          ``(3) Termination of force-placed insurance.--Within 
        15 days of the receipt by a servicer of confirmation of 
        a borrower's existing insurance coverage, the servicer 
        shall--
                  ``(A) terminate the force-placed insurance; 
                and
                  ``(B) refund to the consumer all force-placed 
                insurance premiums paid by the borrower during 
                any period during which the borrower's 
                insurance coverage and the force-placed 
                insurance coverage were each in effect, and any 
                related fees charged to the consumer's account 
                with respect to the force-placed insurance 
                during such period.
          ``(4) Clarification with respect to flood disaster 
        protection act.--No provision of this section shall be 
        construed as prohibiting a servicer from providing 
        simultaneous or concurrent notice of a lack of flood 
        insurance pursuant to section 102(e) of the Flood 
        Disaster Protection Act of 1973.
  ``(m) Limitations on Force-Placed Insurance Charges.--All 
charges for force-placed insurance premiums shall be bona fide 
and reasonable in amount.
  ``(n) Prompt Crediting of Payments Required.--
          ``(1) In general.--All amounts received by a lender 
        or a servicer on a home loan at the address where the 
        borrower has been instructed to make payments shall be 
        accepted and credited, or treated as credited, on the 
        business day received, to the extent that the borrower 
        has made the full contractual payment and has provided 
        sufficient information to credit the account.
          ``(2) Scheduled method.--If a servicer uses the 
        scheduled method of accounting, any regularly scheduled 
        payment made prior to the scheduled due date shall be 
        credited no later than the due date.
          ``(3) Notice of noncredit.--If any payment is 
        received by a lender or a servicer on a home loan and 
        not credited, or treated as credited, the borrower 
        shall be notified within 10 business days by mail at 
        the borrower's last known address of the disposition of 
        the payment, the reason the payment was not credited, 
        or treated as credited to the account, and any actions 
        necessary by the borrower to make the loan current.''.
  (b) Increase in Penalty Amounts.--Section 6(f) of the Real 
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(f)) is 
amended--
          (1) in paragraphs (1)(B) and (2)(B), by striking 
        ``$1,000'' each place such term appears and inserting 
        ``$2,000''; and
          (2) in paragraph (2)(B)(i), by striking ``$500,000'' 
        and inserting ``$1,000,000''.
  (c) Decrease in Response Times.--Section 6(e) of the Real 
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(e)) is 
amended--
          (1) in paragraph (1)(A), by striking ``20 days'' and 
        inserting ``10 days'';
          (2) in paragraph (2), by striking ``60 days'' and 
        inserting ``30 days''; and
          (3) by adding at the end the following new paragraph:
          ``(4) Limited extension of response time.--The 30-day 
        period described in paragraph (2) may be extended for 
        not more than 30 days if, before the end of such 30-day 
        period, the servicer notifies the borrower of the 
        extension and the reasons for the delay in 
        responding.''.
  (d) Requests for Pay-Off Amounts.--Section 6(e) of the Real 
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(e)) is 
amended by inserting after paragraph (4) (as added by 
subsection (c) of this section) the following new paragraph:
          ``(5) Requests for pay-off amounts.--A creditor or 
        servicer shall send a payoff balance within 7 business 
        days of the receipt of a written request for such 
        balance from or on behalf of the borrower.''.
  (e) Prompt Refund of Escrow Accounts Upon Payoff.--Section 
6(g) of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605(g)) is amended by adding at the end the following 
new sentence: ``Any balance in any such account that is within 
the servicer's control at the time the loan is paid off shall 
be promptly returned to the borrower within 20 business days or 
credited to a similar account for a new mortgage loan to the 
borrower with the same lender.''.

SEC. 604. MORTGAGE SERVICING STUDIES REQUIRED.

  (a) Mortgage Servicing Practices.--
          (1) Study.--The Secretary of Housing and Urban 
        Development, in consultation with the Federal banking 
        agencies, and the Federal Trade Commission, shall 
        conduct a comprehensive study on mortgage servicing 
        practices and their potential for fraud and abuse.
          (2) Issues to be included.--In addition to other 
        issues the Secretary of Housing and Urban Development, 
        the Federal banking agencies, and the Federal Trade 
        Commission may determine to be appropriate and possibly 
        pertinent to the study conducted under paragraph (1), 
        the study shall include the following issues:
                  (A) A survey of the industry in order to 
                examine the issue of the timely or effective 
                posting of payments by servicers.
                  (B) The employment of daily interest when 
                payments are made after a due date.
                  (C) The charging of late fees on the entire 
                outstanding principal.
                  (D) The charging of interest on servicing 
                fees.
                  (E) The utilization of collection practices 
                that failed to comply with the Fair Debt 
                Collection Practices Act.
                  (F) The charging of prepayment penalties when 
                not authorized by either the note or law.
                  (G) The employment of unconscionable 
                forbearance agreements.
                  (H) Foreclosure abuses.
          (3) Report.--Before the end of the 12-month period 
        beginning on the date of the enactment of this Act, the 
        Secretary of Housing and Urban Development shall submit 
        a report on the study conducted under this subsection 
        to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate.
  (b) Mortgage Servicing Improvements.--
          (1) Study.--The Secretary of Housing and Urban 
        Development, in consultation with the Federal banking 
        agencies, and the Federal Trade Commission, shall 
        conduct a comprehensive study on means to improve the 
        best practices of the mortgage servicing industry, and 
        Federal and State laws governing such industry.
          (2) Report.--Before the end of the 18-month period 
        beginning on the date of the enactment of this Act, the 
        Secretary of Housing and Urban Development shall submit 
        a report on the study conducted under this subsection 
        to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate, together with such 
        recommendations for administrative or legislative 
        action as the Secretary, in consultation with the Board 
        and the Commission, may determine to be appropriate.

SEC. 605. ESCROWS INCLUDED IN REPAYMENT ANALYSIS.

  (a) In General.--Section 128(b) of the Truth in Lending Act 
(15 U.S.C. 1638(b)) is amended by adding at the end the 
following new paragraph:
          ``(4) Repayment analysis required to include escrow 
        payments.--
                  ``(A) In general.--In the case of any 
                consumer credit transaction secured by a first 
                mortgage or lien on the principal dwelling of 
                the consumer, other than a consumer credit 
                transaction under an open end credit plan or a 
                reverse mortgage, for which an impound, trust, 
                or other type of account has been or will be 
                established in connection with the transaction 
                for the payment of property taxes, hazard and 
                flood (if any) insurance premiums, or other 
                periodic payments or premiums with respect to 
                the property, the information required to be 
                provided under subsection (a) with respect to 
                the number, amount, and due dates or period of 
                payments scheduled to repay the total of 
                payments shall take into account the amount of 
                any monthly payment to such account for each 
                such repayment in accordance with section 
                10(a)(2) of the Real Estate Settlement 
                Procedures Act of 1974.
                  ``(B) Assessment value.--The amount taken 
                into account under subparagraph (A) for the 
                payment of property taxes, hazard and flood (if 
                any) insurance premiums, or other periodic 
                payments or premiums with respect to the 
                property shall reflect the taxable assessed 
                value of the real property securing the 
                transaction after the consummation of the 
                transaction, including the value of any 
                improvements on the property or to be 
                constructed on the property (whether or not 
                such construction will be financed from the 
                proceeds of the transaction), if known, and the 
                replacement costs of the property for hazard 
                insurance, in the initial year after the 
                transaction.''.

                    TITLE VII--APPRAISAL ACTIVITIES

SEC. 701. PROPERTY APPRAISAL REQUIREMENTS.

  Section 129 of the Truth in Lending Act (15 U.S.C. 1639) is 
amended by inserting after subsection (u) (as added by section 
303(f)) the following new subsection:
  ``(v) Property Appraisal Requirements.--
          ``(1) In general.--A creditor may not extend credit 
        in the form of a mortgage referred to in section 
        103(aa) to any consumer without first obtaining a 
        written appraisal of the property to be mortgaged 
        prepared in accordance with the requirements of this 
        subsection.
          ``(2) Appraisal requirements.--
                  ``(A) Physical property visit.--An appraisal 
                of property to be secured by a mortgage 
                referred to in section 103(aa) does not meet 
                the requirement of this subsection unless it is 
                performed by a qualified appraiser who conducts 
                a physical property visit of the interior of 
                the mortgaged property.
                  ``(B) Second appraisal under certain 
                circumstances.--
                          ``(i) In general.--If the purpose of 
                        a mortgage referred to in section 
                        103(aa) is to finance the purchase or 
                        acquisition of the mortgaged property 
                        from a person within 180 days of the 
                        purchase or acquisition of such 
                        property by that person at a price that 
                        was lower than the current sale price 
                        of the property, the creditor shall 
                        obtain a second appraisal from a 
                        different qualified appraiser. The 
                        second appraisal shall include an 
                        analysis of the difference in sale 
                        prices, changes in market conditions, 
                        and any improvements made to the 
                        property between the date of the 
                        previous sale and the current sale.
                          ``(ii) No cost to consumer.--The cost 
                        of any second appraisal required under 
                        clause (i) may not be charged to the 
                        consumer.
                  ``(C) Qualified appraiser defined.--For 
                purposes of this subsection, the term 
                `qualified appraiser' means a person who--
                          ``(i) is certified or licensed by the 
                        State in which the property to be 
                        appraised is located; and
                          ``(ii) performs each appraisal in 
                        conformity with the Uniform Standards 
                        of Professional Appraisal Practice and 
                        title XI of the Financial Institutions 
                        Reform, Recovery, and Enforcement Act 
                        of 1989, and the regulations prescribed 
                        under such title, as in effect on the 
                        date of the appraisal.
          ``(3) Free copy of appraisal.--A creditor shall 
        provide 1 copy of each appraisal conducted in 
        accordance with this subsection in connection with a 
        mortgage referred to in section 103(aa) to the consumer 
        without charge, and at least 3 days prior to the 
        transaction closing date.
          ``(4) Consumer notification.--At the time of the 
        initial mortgage application, the consumer shall be 
        provided with a statement by the creditor that any 
        appraisal prepared for the mortgage is for the sole use 
        of the creditor, and that the consumer may choose to 
        have a separate appraisal conducted at their own 
        expense.
          ``(5) Violations.--In addition to any other liability 
        to any person under this title, a creditor found to 
        have willfully failed to obtain an appraisal as 
        required in this subsection shall be liable to the 
        consumer for the sum of $2,000.''.

SEC. 702. UNFAIR AND DECEPTIVE PRACTICES AND ACTS RELATING TO CERTAIN 
                    CONSUMER CREDIT TRANSACTIONS.

  (a) In General.--Chapter 2 of the Truth in Lending Act (15 
U.S.C. 1631 et seq.) is amended by inserting after section 129C 
(as added by section 601) the following new section:

``SEC. 129D. UNFAIR AND DECEPTIVE PRACTICES AND ACTS RELATING TO 
                    CERTAIN CONSUMER CREDIT TRANSACTIONS.

  ``(a) In General.--It shall be unlawful, in providing any 
services for a consumer credit transaction secured by the 
principal dwelling of the consumer, to engage in any unfair or 
deceptive act or practice as described in or pursuant to 
regulations prescribed under this section.
  ``(b) Appraisal Independence.--For purposes of subsection 
(a), unfair and deceptive practices shall include--
          ``(1) any appraisal of a property offered as security 
        for repayment of the consumer credit transaction that 
        is conducted in connection with such transaction in 
        which a person with an interest in the underlying 
        transaction compensates, coerces, extorts, colludes, 
        instructs, induces, bribes, or intimidates a person 
        conducting or involved in an appraisal, or attempts, to 
        compensate, coerce, extort, collude, instruct, induce, 
        bribe, or intimidate such a person, for the purpose of 
        causing the appraised value assigned, under the 
        appraisal, to the property to be based on any factor 
        other than the independent judgment of the appraiser;
          ``(2) mischaracterizing, or suborning any 
        mischaracterization of, the appraised value of the 
        property securing the extension of the credit;
          ``(3) seeking to influence an appraiser or otherwise 
        to encourage a targeted value in order to facilitate 
        the making or pricing of the transaction; and
          ``(4) failing to timely compensate an appraiser for a 
        completed appraisal regardless of whether the 
        transaction closes.
  ``(c) Exceptions.--The requirements of subsection (b) shall 
not be construed as prohibiting a mortgage lender, mortgage 
broker, mortgage banker, real estate broker, appraisal 
management company, employee of an appraisal management 
company, or any other person with an interest in a real estate 
transaction from asking an appraiser to provide 1 or more of 
the following services:
          ``(1) Consider additional, appropriate property 
        information, including the consideration of additional 
        comparable properties to make or support an appraisal.
          ``(2) Provide further detail, substantiation, or 
        explanation for the appraiser's value conclusion.
          ``(3) Correct errors in the appraisal report.
  ``(d) Rulemaking Proceedings.--The Board, the Comptroller of 
the Currency, the Director of the Office of Thrift Supervision, 
the Federal Deposit Insurance Corporation, the National Credit 
Union Administration Board, and the Federal Trade Commission--
          ``(1) shall, for purposes of this section, jointly 
        prescribe regulations defining with specificity acts or 
        practices which are unfair or deceptive in the 
        provision of mortgage lending services for a consumer 
        credit transaction secured by the principal dwelling of 
        the consumer or mortgage brokerage services for such a 
        transaction and defining any terms in this section or 
        such regulations; and
          ``(2) may jointly issue interpretive guidelines and 
        general statements of policy with respect to unfair or 
        deceptive acts or practices in the provision of 
        mortgage lending services for a consumer credit 
        transaction secured by the principal dwelling of the 
        consumer and mortgage brokerage services for such a 
        transaction, within the meaning of subsections (a), 
        (b), and (c).
  ``(e) Penalties.--
          ``(1) First violation.--In addition to the 
        enforcement provisions referred to in section 130, each 
        person who violates this section shall forfeit and pay 
        a civil penalty of not more than $10,000 for each day 
        any such violation continues.
          ``(2) Subsequent violations.--In the case of any 
        person on whom a civil penalty has been imposed under 
        paragraph (1), paragraph (1) shall be applied by 
        substituting `$20,000' for `$10,000' with respect to 
        all subsequent violations.
          ``(3) Assessment.--The agency referred to in 
        subsection (a) or (c) of section 108 with respect to 
        any person described in paragraph (1) shall assess any 
        penalty under this subsection to which such person is 
        subject.''.
  (b) Clerical Amendment.--The table of sections for chapter 2 
of the Truth in Lending Act is amended by inserting after the 
item relating to section 129C (as added by section 601) the 
following new item:

``129D. Unfair and deceptive practices and acts relating to certain 
          consumer credit transactions.''.

SEC. 703. APPRAISAL SUBCOMMITTEE OF FIEC, APPRAISER INDEPENDENCE, AND 
                    APPROVED APPRAISER EDUCATION.

  (a) Consumer Protection Mission.--
          (1) Purpose.--A purpose for the establishment and 
        operation of the Appraisal Subcommittee of the 
        Financial Institutions Examination Council (hereafter 
        in this section referred to as the ``Appraisal 
        Subcommittee'') shall be to establish a consumer 
        protection mandate.
          (2) Functions of appraisal subcommittee.--It shall be 
        a function of the Appraisal Subcommittee to protect the 
        consumer from improper appraisal practices and the 
        predations of unlicensed appraisers.
          (3) Threshold levels.--In establishing a threshold 
        level under section 1112(b) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 3341(b)), each agency shall determine 
        in writing that the threshold level provides reasonable 
        protection for consumers who purchase 1-4 unit single-
        family residences.
  (b) Annual Report of Appraisal Subcommittee.--The annual 
report of the Appraisal Subcommittee under section 1103(a)(4) 
of Financial Institutions Reform, Recovery, and Enforcement Act 
of 1989 shall detail the activities of the Appraisal 
Subcommittee, including the results of all audits of State 
appraiser regulatory agencies, and provide an accounting of 
disapproved actions and warnings taken in the previous year, 
including a description of the conditions causing the 
disapproval.
  (c) Open Meetings.--All meetings of the Appraisal 
Subcommittee shall be held in public session after notice in 
the Federal Register.
  (d) Regulations.--The Appraisal Subcommittee may prescribe 
regulations after notice and opportunity for comment. Any 
regulations prescribed by the Appraisal Subcommittee shall 
(unless otherwise provided in this section or title XI of the 
Financial Institutions Reform, Recovery, and Enforcement Act of 
1989) be limited to the following functions: temporary 
practice, national registry, information sharing, and 
enforcement. For purposes of prescribing regulations, the 
Appraisal Subcommittee shall establish an advisory committee of 
industry participants, including appraisers, lenders, consumer 
advocates, and government agencies, and hold regular meetings.
  (e) Field Appraisals and Appraisal Reviews.--All field 
appraisals performed at a property within a State shall be 
prepared by appraisers licensed in the State where the property 
is located. All Uniform Standards of Professional Appraisal 
Practice-compliant appraisal reviews shall be performed by an 
appraiser who is duly licensed by a State appraisal board.
  (f) State Agency Reporting Requirement.--Each State with an 
appraiser certifying and licensing agency whose certifications 
and licenses comply with title XI of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 shall transmit 
reports on sanctions, disciplinary actions, license and 
certification revocations, and license and certification 
suspensions on a timely basis to the national registry of the 
Appraisal Subcommittee.
  (g) Registry Fees Modified.--
          (1) In general.--The annual registry fees for persons 
        performing appraisals in federally related transactions 
        shall be increased from $25 to $40. The maximum amount 
        up to which the Appraisal Subcommittee may adjust any 
        registry fees shall be increased from $50 to $80 per 
        annum. The Appraisal Subcommittee shall consider at 
        least once every 5 years whether to adjust the dollar 
        amount of the registry fees to account for inflation. 
        In implementing any change in registry fees, the 
        Appraisal Subcommittee shall provide flexibility to the 
        States for multi-year certifications and licenses 
        already in place, as well as a transition period to 
        implement the changes in registry fees.
          (2) Incremental revenues.--Incremental revenues 
        collected pursuant to the increases required by this 
        section shall be placed in a separate account at the 
        United States Treasury, entitled the Appraisal 
        Subcommittee Account.
  (h) Grants and Reports.--
          (1) In general.--Amounts appropriated for or 
        collected by the Appraisal Subcommittee after the date 
        of the enactment of this Act shall, in addition to 
        other uses authorized, be used--
                  (A) to make grants to State appraiser 
                regulatory agencies to help defray those costs 
                relating to enforcement activities; and
                  (B) to report to all State appraiser 
                certifying and licensing agencies when a 
                license or certification is surrendered, 
                revoked, or suspended.
          (2) Limitation on obligations.--Obligations 
        authorized under this section may not exceed 75 percent 
        of the fiscal year total of incremental increase in 
        fees collected and deposited in the Appraisal 
        Subcommittee Account pursuant to section 703(g) of this 
        Act.
  (i) Criteria.--
          (1) Definition.--For purposes of this section and 
        title XI of the Financial Institutions Reform, 
        Recovery, and Enforcement Act of 1989 (notwithstanding 
        section 1116(c) of such title), the term ``State 
        licensed appraiser'' means an individual who has 
        satisfied the requirements for State licensing in a 
        State or territory whose criteria for the licensing of 
        a real estate appraiser currently meet or exceed the 
        minimum criteria issued by the Appraisal Qualifications 
        Board of The Appraisal Foundation for the licensing of 
        real estate appraisers.
          (2) Minimum qualification requirements.--Any 
        requirements established for individuals in the 
        position of ``Trainee Appraiser'' and ``Supervisory 
        Appraiser'' shall meet or exceed the minimum 
        qualification requirements of the Appraiser 
        Qualifications Board of The Appraisal Foundation. The 
        Appraisal Subcommittee shall have the authority to 
        enforce these requirements.
  (j) Monitoring of State Appraiser Certifying and Licensing 
Agencies.--The Appraisal Subcommittee shall monitor State 
appraiser certifying and licencing agencies for the purpose of 
determining whether a State agency's funding and staffing are 
consistent with the requirements of title XI of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989, 
whether a State agency processes complaints and completes exams 
in a reasonable time period, and whether a State agency reports 
claims and disciplinary actions on a timely basis to the 
national registry maintained by the Appraisal Subcommittee. The 
Appraisal Subcommittee shall have the authority to impose 
interim sanctions and suspensions.
  (k) Reciprocity.--A State appraiser certifying or licensing 
agency shall issue a reciprocal certification or license for an 
individual from another State when--
          (1) the appraiser licensing and certification program 
        of such other State is in compliance with the 
        provisions of this title; and
          (2) the appraiser holds a valid certification from a 
        State whose requirements for certification or licensing 
        meet or exceed the licensure standards established by 
        the State where an individual seeks appraisal 
        licensure.
  (l) Consideration of Professional Appraisal Designations.--No 
provision of section 1122(d) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 shall be 
construed as prohibiting consideration of designations 
conferred by recognized national professional appraisal 
organizations, such as sponsoring organizations of The 
Appraisal Foundation.
  (m) Appraiser Independence.--
          (1) Prohibitions on interested parties in a real 
        estate transaction.--No mortgage lender, mortgage 
        broker, mortgage banker, real estate broker, appraisal 
        management company, employee of an appraisal management 
        company, nor any other person with an interest in a 
        real estate transaction involving an appraisal shall 
        improperly influence, or attempt to improperly 
        influence, through coercion, extortion, collusion, 
        compensation, instruction, inducement, intimidation, 
        non-payment for services rendered, or bribery, the 
        development, reporting, result, or review of a real 
        estate appraisal sought in connection with a mortgage 
        loan.
          (2) Exceptions.--The requirements of paragraph (1) 
        shall not be construed as prohibiting a mortgage 
        lender, mortgage broker, mortgage banker, real estate 
        broker, appraisal management company, employee of an 
        appraisal management company, or any other person with 
        an interest in a real estate transaction from asking an 
        appraiser to provide 1 or more of the following 
        services:
                  (A) Consider additional, appropriate property 
                information, including the consideration of 
                additional comparable properties to make or 
                support an appraisal.
                  (B) Provide further detail, substantiation, 
                or explanation for the appraiser's value 
                conclusion.
                  (C) Correct errors in the appraisal report.
          (3) Prohibitions on conflicts of interest.--No 
        certified or licensed appraiser conducting an appraisal 
        may have a direct or indirect interest, financial or 
        otherwise, in the property or transaction involving the 
        appraisal.
          (4) Mandatory reporting.--Any mortgage lender, 
        mortgage broker, mortgage banker, real estate broker, 
        appraisal management company, employee of an appraisal 
        management company, or any other person with an 
        interest in a real estate transaction involving an 
        appraisal who has a reasonable basis to believe an 
        appraiser is violating applicable laws, or is otherwise 
        engaging in unethical conduct, shall refer the matter 
        to the applicable State appraiser certifying and 
        licensing agency.
          (5) Regulations.--The Federal financial institutions 
        regulatory agencies (as defined in section 1003(1) of 
        the Federal Financial Institutions Examination Council 
        Act of 1978) shall prescribe such regulations as may be 
        necessary to carry out the provisions of this 
        subsection.
          (6) Penalties.--Any person who violates any provision 
        of this subsection shall be subject to civil penalties 
        under section 8(i)(2) of the Federal Deposit Insurance 
        Act or section 206(k)(2) of the Federal Credit Union 
        Act, as appropriate.
          (7) Proceeding.--A proceeding with respect to a 
        violation of this subsection shall be an administrative 
        proceeding which may be conducted by a Federal 
        financial institutions regulatory agency in accordance 
        with the procedures set forth in subchapter II of 
        chapter 5 of title 5, United States Code.
  (n) Approved Education.--The Appraisal Subcommittee shall 
encourage the States to accept courses approved by the 
Appraiser Qualification Board's Course Approval Program.

SEC. 704. STUDY REQUIRED ON IMPROVEMENTS IN APPRAISAL PROCESS AND 
                    COMPLIANCE PROGRAMS.

  (a) Study.--The Comptroller General shall conduct a 
comprehensive study on possible improvements in the appraisal 
process generally, and specifically on the consistency in and 
the effectiveness of, and possible improvements in, State 
compliance efforts and programs in accordance with title XI of 
the Financial Institutions Reform, Recovery, and Enforcement 
Act of 1989. In addition, this study shall examine the existing 
de minimis loan levels established by Federal regulators for 
compliance under title XI and whether there is a need to revise 
them to reflect the addition of consumer protection to the 
purposes and functions of the Appraisal Subcommittee.
  (b) Report.--Before the end of the 18-month period beginning 
on the date of the enactment of this Act, the Comptroller 
General shall submit a report on the study under subsection (a) 
to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, together with such recommendations 
for administrative or legislative action, at the Federal or 
State level, as the Comptroller General may determine to be 
appropriate.

SEC. 705. CONSUMER APPRAISAL DISCLOSURE.

  (a) In General.--Chapter 2 of the Truth in Lending Act (15 
U.S.C. 1631 et seq.) is amended by inserting after section 129D 
(as added by section 702) the following new section:

``SEC. 129E. CONSUMER APPRAISAL DISCLOSURE.

  ``In any case in which an appraisal is performed in 
connection with an extension of credit secured by an interest 
in real property, the creditor or other mortgage originator 
shall make available to the applicant for the extension of 
credit a copy of all appraisal valuation reports upon 
completion but no later than 3 business days prior to the 
transaction closing date.''.
  (b) Clerical Amendment.--The table of sections for chapter 2 
of the Truth in Lending Act is amended by inserting after the 
item relating to section 129D (as added by section 702) the 
following new item:

``129E. Consumer appraisal disclosure.''.
                    ____________________________________________________

3. An Amendment To Be Offered by Representative Maloney of New York, or 
                 Her Designee, Debatable for 10 Minutes

  Page 66, after line 3, insert the following new paragraph 
(and redesignate the subsequent paragraph accordingly):
          ``(2) Phased-out penalties on qualified mortgages.--A 
        qualified mortgage (as defined in subsection (c)) may 
        not contain terms under which a consumer must pay a 
        prepayment penalty for paying all or part of the 
        principal after the loan is consummated in excess of 
        the following limitations:
                  ``(A) During the 1-year period beginning on 
                the date the loan is consummated, the 
                prepayment penalty shall not exceed an amount 
                equal to 3 percent of the outstanding balance 
                on the loan.
                  ``(B) During the 1-year period beginning 
                after the period described in subparagraph (A), 
                the prepayment penalty shall not exceed an 
                amount equal to 2 percent of the outstanding 
                balance on the loan.
                  ``(C) During the 1-year period beginning 
                after the 1-year period described in 
                subparagraph (B), the prepayment penalty shall 
                not exceed an amount equal to 1 percent of the 
                outstanding balance on the loan.
                  ``(D) After the end of the 3-year period 
                beginning on the date the loan is consummated, 
                no prepayment penalty may be imposed on a 
                qualified mortgage.''.
  Page 66, after line 11, insert the following new paragraph:
          ``(4) Option for no prepayment penalty required.--A 
        creditor may not offer a consumer a residential 
        mortgage loan product that has a prepayment penalty for 
        paying all or part of the principal after the loan is 
        consummated as a term of the loan without offering the 
        consumer a residential mortgage loan product that does 
        not have a prepayment penalty as a term of the loan.''.
                              ----------                              


4. An Amendment To Be Offered by Representative Watt of North Carolina, 
               or His Designee, Debatable for 10 Minutes

  Page 46, line 7, insert ``the greater of actual damages or'' 
after ``shall not exceed''.
                              ----------                              


5. An Amendment To Be Offered by Representative Watt of North Carolina, 
               or His Designee, Debatable for 10 Minutes

  Page 60, line 3, strike ``or'' and insert ``and''.
                              ----------                              


6. An Amendment To Be Offered by Representative Watt of North Carolina, 
               or His Designee, Debatable for 10 Minutes

  Page 52, strike lines 13 and 14 and insert the following new 
subparagraph:
                  ``(B) if such loan is--
                          ``(i) a qualified safe harbor 
                        mortgage; or
                          ``(ii) a nontraditional mortgage.''.
  Page 56, after line 3, insert the following new subparagraph:
                  ``(D) Nontraditional mortgage.--The term 
                `nontraditional mortgage' means any residential 
                mortgage loan that allows a borrower to defer 
                payment of principal or interest.''.
                              ----------                              


7. An Amendment To Be Offered by Representative Hensarling of Texas, or 
                 His Designee, Debatable for 10 Minutes

  Page 73, after line 25, insert the following new section (and 
redesignate subsequent sections accordingly):

SEC. 211. LENDER RIGHTS IN THE CONTEXT OF BORROWER DECEPTION.

   Section 130 of the Truth in Lending Act is amended by adding 
at the end the following new subsection:
  ``(j) Exemption From Liability and Rescission in Case of 
Borrower Fraud or Deception.--In addition to any other remedy 
available by law or contract, no creditor, assignee, or 
securitizer shall be liable to an obligor under this section, 
nor shall it be subject to the right of rescission of any 
obligor under 129B, if such obligor, or co-obligor, knowingly, 
or willfully furnished material information known to be false 
for the purpose of obtaining such residential mortgage loan.''.
                              ----------                              


     8. An Amendment to the Amendment Numbered 7 by Representative 
Hensarling To Be Offered by Representative Watt of North Carolina or a 
                   Designee, Debatable for 10 Minutes

  In the amendment, insert ``and with actual knowledge'' after 
``willfully''.
                              ----------                              


 9. An Amendment To Be Offered by Representative Meeks of New York, or 
                 His Designee, Debatable for 10 Minutes

  Page 15, line 10, strike ``reviewed, approved, and'' and 
insert ``reviewed, and''.
  Page 15, after line 12, insert the following new paragraph:
          (3) Limitation and standards.--
                  (A) Limitation.--To maintain the independence 
                of the approval process, the Nationwide 
                Mortgage Licensing System and Registry shall 
                not directly or indirectly offer pre-licensure 
                educational courses for loan originators.
                  (B) Standards.--In approving courses under 
                this section, the Nationwide Mortgage Licensing 
                System and Registry shall apply reasonable 
                standards in the review and approval of 
                courses.
  Page 15, line 13, strike ``and administered''.
  Page 15, line 14, insert ``and administered by an approved 
test provider'' before the period.
  Page 17, line 23, strike ``reviewed, approved, and'' and 
insert ``reviewed, and''.
  Page 18, after line 14, insert the following new paragraph:
          (5) Limitation and standards.--
                  (A) Limitation.--To maintain the independence 
                of the approval process, the Nationwide 
                Mortgage Licensing System and Registry shall 
                not directly or indirectly offer any continuing 
                education courses for loan originators.
                  (B) Standards.--In approving courses under 
                this section, the Nationwide Mortgage Licensing 
                System and Registry shall apply reasonable 
                standards in the review and approval of 
                courses.
                              ----------                              


10. An Amendment To Be Offered by Representative Putnam of Florida, or 
                 His Designee, Debatable for 10 Minutes

  Page 79, after line 20, insert the following new section (and 
amend the table of contents accordingly):

SEC. 214. REPORT BY THE GAO.

  (a) Report Required.--The Comptroller General shall conduct a 
study to determine the effects the enactment of this Act will 
have on the availability and affordability of credit for 
homebuyers and mortgage lending, including the effect--
          (1) on the mortgage market for mortgages that are not 
        within the safe harbor provided in the amendments made 
        by this title;
          (2) on the ability of prospective homebuyers to 
        obtain financing;
          (3) on the ability of homeowners facing resets or 
        adjustments to refinance--for example, do they have 
        fewer refinancing options due to the unavailability of 
        certain loan products that were available before the 
        enactment of this Act;
          (4) on minorities' ability to access affordable 
        credit compared with other prospective borrowers;
          (5) on home sales and construction;
          (6) of extending the rescission right, if any, on 
        adjustable rate loans and its impact on litigation;
          (7) of State foreclosure laws and, if any, an 
        investor's ability to transfer a property after 
        foreclosure;
          (8) of expanding the existing provisions of the Home 
        Ownership and Equity Protection Act of 1994;
          (9) of prohibiting prepayment penalties on high-cost 
        mortgages; and
          (10) of establishing counseling services under the 
        Department of Housing and Urban Development and offered 
        through the Office of Housing Counseling.
  (b) Report.--Before the end of the 1-year period beginning on 
the date of the enactment of this Act, the Comptroller General 
shall submit a report to the Congress containing the findings 
and conclusions of the Comptroller General with respect to the 
study conducted pursuant to subsection (a).
                              ----------                              


    11. An Amendment To Be Offered by Representative Brown-Waite of 
           Florida, or Her Designee, Debatable for 10 Minutes

  Page 54, line 14, strike ``and''.
  Page 54, line 16, strike the period and insert ``; and''.
  Page 54, after line 16, insert the following new clause:
                          ``(iv) a mortgage insured under title 
                        II of the National Housing Act (12 
                        U.S.C. 1707 et seq.).''.
                              ----------                              


12. An Amendment To Be Offered by Representative Garrett of New Jersey, 
               or His Designee, Debatable for 10 Minutes

  Page 52, strike line 9 and all that follows through line 15 
(and redesignate subsequent paragraphs accordingly).
                              ----------                              


   13. An Amendment To Be Offered by Representative Miller of North 
          Carolina, or His Designee, Debatable for 10 Minutes

  Page 64, line 12, strike the closing quotation marks and the 
second period.
  Page 64, after line 12, insert the following new paragraphs:
          ``(10) Pattern or practice of violations.--
                  ``(A) In general.--In addition to any money 
                penalty that may be imposed by any agency 
                referred to in subsection (a) or (c) of section 
                108 under any provision of law referred to in 
                such section in connection with such agency or 
                any other enforcement action taken by such 
                agency under such section, any creditor, 
                assignee, or securitizer which engages in a 
                pattern or practice of originating, assigning, 
                or securitizing residential mortgage loans that 
                violate subsection (a) or (b) shall forfeit and 
                pay a civil penalty of--
                          ``(i) not less than $25,000 for each 
                        such loan; and
                          ``(ii) $1,000,000 for engaging in 
                        such pattern or practice.
                  ``(B) Information.--Any person may submit 
                information to any agency referred to in 
                subparagraph (A) regarding any pattern or 
                practice of violating subsection (a) or (b) and 
                such agency shall promptly bring such complaint 
                to the attention of any other such agency which 
                may have jurisdiction over any person involved 
                in the alleged violation.
          ``(11) Trust fund for consumers without remedy.--
                  ``(A) In general.--Any civil money penalty 
                collected under paragraph (10) shall be 
                transferred to the Secretary of the Treasury to 
                be held in trust in the Consumers Rescission 
                and Cure Remedial Fund for the benefit of 
                borrowers with residential mortgage loans that 
                were originated in violation of subsection (a) 
                or (b) for which the consumers are eligible for 
                rescission or cure but have no party against 
                whom to assert such remedies.
                  ``(B) Regulations.--The Secretary of the 
                Treasury shall prescribe regulations 
                establishing--
                          ``(i) a claims process for consumers 
                        described in subparagraph (A) to file 
                        claims against the Consumers Rescission 
                        and Cure Remedial Fund for rescission 
                        or cure of a residential mortgage loan 
                        that was originated in violation of 
                        subsection (a) or (b);
                          ``(ii) a procedure for administrative 
                        determination of claims, and the 
                        allowance or disallowance of any such 
                        claim, and a review of such 
                        determination; and
                          ``(iii) a process for payment of any 
                        claim allowed against the Fund to 
                        effectuate a rescission or cure as part 
                        of a final settlement entered into by 
                        the consumer with the Secretary with 
                        respect to such claim.
                  ``(C) Finality.--Any determination by the 
                Secretary under this paragraph shall be final 
                and not subject to judicial review.''.
                              ----------                              


14. An Amendment To Be Offered by Representative Al Green of Texas, or 
                 His Designee, Debatable for 10 Minutes

  Page 15, line 7, insert ``which shall include instruction on 
fraud, consumer protection and fair lending issues'' before the 
period.
  Page 16, line 6, strike ``and'' after the semicolon.
  Page 16, line 8, strike the period and insert ``; and''.
  Page 16, after line 8, insert the following new clause:
                          (iv) Federal and State law and 
                        regulation, including instruction on 
                        fraud, consumer protection, and fair 
                        lending issues.
  Page 17, line 20, insert ``, including education on fraud, 
consumer protection, and fair lending issues.''.
                              ----------                              


   15. An Amendment To Be Offered by Representative McHenry of North 
          Carolina, or His Designee, Debatable for 10 Minutes

  Page 80, strike line 1 and all that follows through page 102, 
line 26 (all of title III) (and redesignate the subsequent 
title and sections and conform the table of contents 
accordingly).
                              ----------                              


16. An Amendment To Be Offered by Representative Tom Price of Georgia, 
               or His Designee, Debatable for 10 Minutes

  Page 36, line 25, insert ``or a qualified mortgage (as 
defined in section 129B(c)(3)(B))'' before the period at the 
end.
                              ----------                              


    17. An Amendment To Be Offered by Representative Van Hollen of 
          Maryland, or His Designee, Debatable for 10 Minutes

  Page 71, line 5, strike the closing quotation marks and the 
second period.
  Page 71, after line 5, insert the following new subsection:
  ``(m) Closing Costs.--In the case of a residential mortgage 
loan, any costs incurred in connection with the consummation of 
the loan may not exceed by more than 10 percent the estimate of 
the amount of such costs disclosed to the consumer in advance 
of the consummation of the loan.''.
                              ----------                              


18. An Amendment To Be Offered by Representative Sutton of Ohio, or Her 
                   Designee, Debatable for 10 Minutes

  After section 211, insert the following new section (and 
redesignate the subsequent sections accordingly):

SEC. 212. 6-MONTH NOTICE REQUIRED BEFORE RESET OF HYBRID ADJUSTABLE 
                    RATE MORTGAGES.

  (a) In General.--Chapter 2 of the Truth in Lending Act (15 
U.S.C. 1631 et seq.) is amended by inserting after section 128 
the following new section:

``Sec. 128A. Reset of hybrid adjustable rate mortgages

  ``(a) Hybrid Adjustable Rate Mortgages Defined.--For purposes 
of this section, the term `hybrid adjustable rate mortgage' 
means a consumer credit transaction secured by the consumer's 
principal residence with a fixed interest rate for an 
introductory period that adjusts or resets to a variable 
interest rate after such period.
  ``(b) Notice of Reset and Alternatives.--During the 1-month 
period that ends 6 months before the date on which the interest 
rate in effect during the introductory period of a hybrid 
adjustable rate mortgage adjusts or resets to a variable 
interest rate, the creditor or servicer of such loan shall 
provide a written notice, separate and distinct from all other 
correspondence to the consumer, that includes the following:
          ``(1) Any index or formula used in making adjustments 
        to or resetting the interest rate and a source of 
        information about the index or formula.
          ``(2) An explanation of how the new interest rate and 
        payment would be determined, including an explanation 
        of how the index was adjusted, such as by the addition 
        of a margin.
          ``(3) A good faith estimate, based on accepted 
        industry standards, of the creditor or servicer of the 
        amount of the monthly payment that will apply after the 
        date of the adjustment or reset, and the assumptions on 
        which this estimate is based.
          ``(4) A list of alternatives consumers may pursue 
        before the date of adjustment or reset, and 
        descriptions of the actions consumers must take to 
        pursue these alternatives, including--
                  ``(A) refinancing;
                  ``(B) renegotiation of loan terms;
                  ``(C) payment forbearances; and
                  ``(D) pre-foreclosure sales.
          ``(5) The names, addresses, telephone numbers, and 
        Internet addresses of counseling agencies or programs 
        reasonably available to the consumer that have been 
        certified or approved and made publicly available by 
        the Secretary of Housing and Urban Development or a 
        State housing finance authority (as defined in section 
        1301 of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989).
          ``(6) The address, telephone number, and Internet 
        address for the State housing finance authority (as so 
        defined) for the State in which the consumer 
        resides.''.
  (b) Clerical Amendment.--The table of sections for chapter 2 
of the Truth in Lending Act is amended by inserting after the 
item relating to section 128 the following new item:

``128A. Reset of hybrid adjustable rate mortgages.''.

                                  
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