Foreclosure Credit Forgiveness Act of 2008

Foreclosure Credit Forgiveness Act of 2008 - Amends the Fair Credit Reporting Act to prohibit the foreclosure on a subprime mortgage of a consumer from being taken into account by any person preparing or calculating the consumer's credit score.

Defines "subprime mortgage" as any consumer credit transaction secured by the consumer's principal dwelling that meets criteria prescribed by the Board of Governors of the Federal Reserve System.

[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5500 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5500

  To amend the Fair Credit Reporting Act to provide forbearance from 
 foreclosures of subprime mortgages in the determination of a consumer 
                 credit score, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 2008

   Mr. Wynn introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Fair Credit Reporting Act to provide forbearance from 
 foreclosures of subprime mortgages in the determination of a consumer 
                 credit score, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreclosure Credit Forgiveness Act 
of 2008''.

SEC. 2. FORBEARANCE IN CREATION OF CREDIT SCORE.

    (a) In General.--Section 609 of the Fair Credit Reporting Act (15 
U.S.C. 1681g) is amended by adding at the end the following new 
subsection:
    ``(h) Foreclosure on Subprime Not Taken Into Account for Credit 
Scores.--
            ``(1) In general.--A foreclosure on a subprime mortgage of 
        a consumer may not be taken into account by any person in 
        preparing or calculating the credit score (as defined in 
        subsection (f)(2)) for, or with respect to, the consumer.
            ``(2) Subprime defined.--The term `subprime mortgage' means 
        any consumer credit transaction secured by the principal 
        dwelling of the consumer that bears or otherwise meets the 
        terms and characteristics for such a transaction that the Board 
        has defined as a subprime mortgage.''.
    (b) Regulations.--The Board shall prescribe regulations defining a 
subprime mortgage for purposes of the amendment made by subsection (a) 
before the end of the 90-day period beginning on the date of the 
enactment of this Act.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect at the end of the 30-day period beginning on the date of 
the enactment of this Act and shall apply without regard to the date of 
the foreclosure.
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