Congress proposes amending Truth in Lending ActMortgagePress.comTruth in Lending Act amendments
On July 12, the House of Representatives introduced legislation
to amend the Truth in Lending Act. The primary objective of this
legislation is to strengthen fair lending practices, with a focus
on sub-prime lending.
A second component of the legislation establishes a national
licensing system for residential mortgage loan originators. Several
key elements of this legislation include:
• Pre-licensing education requirements, as well as testing
• Continued education requirements for license renewal;
• A registration system for registered loan originators,
using a unique loan identifier for all loan originators;
• The establishment and maintenance of a backup licensing
• Additional disclosures to assist the borrower in
comprehending the terms of a mortgage loan;
• Recommended preliminary credit counseling for all
• Escrow or impound accounts for the payment of taxes and
• A limitation on pre-payment penalties for hybrid
• The requirement of a written statement to inform the
borrower of possible penalties for providing false or misleading
• Borrower suitability guidelines.
The bill is currently in committee.
For more information, visit www.house.gov.