Amends the Truth in Lending Act, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, to make an exemption from the requirement that a creditor in a non-credit card consumer credit transaction secured by a first lien on the principal dwelling (other than a reverse mortgage) establish an escrow or impound account for mandatory periodic payments or premiums (including taxes, insurance, and ground rents).
Exempts a creditor with less than $1 billion in assets from: (1) this requirement when the consumer credit transaction has an annual percentage rate exceeding the average prime offer rate for a comparable transaction as of the date the interest rate is set by 1.5 or more percentage points; and (2) any other provision of such Act that requires the creditor to establish an escrow or impound account with respect to such a transaction.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3651 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 3651
To amend the Truth in Lending Act to exempt certain creditors from the
escrow account requirement for higher-priced mortgage loans, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 13, 2011
Mr. Barrow introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act to exempt certain creditors from the
escrow account requirement for higher-priced mortgage loans, 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. EXEMPTION FOR CERTAIN CREDITORS.
(a) In General.--Section 129D of the Truth in Lending Act, as added
by section 1461 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, is amended by adding at the end the following new
subsection:
``(k) Exemption for Certain Creditors.--A creditor with less than
$1,000,000,000 in assets shall be exempt from--
``(1) the requirements of subsection (a) with respect to a
consumer credit transaction secured by a first lien on the
consumer's principal dwelling with an annual percentage rate
that exceeds the average prime offer rate for a comparable
transaction as of the date the interest rate is set by 1.5 or
more percentage points; and
``(2) any other provision of this Act, to the extent such
provision requires the creditor to establish an escrow or
impound account described under subsection (a) with respect to
a consumer credit transaction described under paragraph (1).''.
(b) Effective Date.--Notwithstanding the date on which the other
provisions of section 129D of the Truth in Lending Act take effect,
section 129D(k) of the Truth in Lending Act, as added by this Act,
shall take effect on the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
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