To amend the Truth in Lending Act to add a rule of construction relating to certain payments to an employee of a mortgage originator.

Amends the Truth in Lending Act to deny any construction of the prohibition against residential mortgage loan originator steering incentives as prohibiting a creditor or mortgage originator from reducing compensation to an employee mortgage originator if, after the employee mortgage originator has made the consumer an initial annual percentage rate (APR) offer, the employee mortgage originator makes a subsequent offer to the consumer that: (1) consists only of a reduction in the APR, and (2) is made in response to a lower APR offer to the consumer by another creditor or mortgage originator.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4076 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4076

    To amend the Truth in Lending Act to add a rule of construction 
 relating to certain payments to an employee of a mortgage originator.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 17, 2012

  Mr. Frank of Massachusetts introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Truth in Lending Act to add a rule of construction 
 relating to certain payments to an employee of a mortgage originator.

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

SECTION 1. RULE OF CONSTRUCTION.

    Section 129B(c)(4) of the Truth in Lending Act is amended--
            (1) in subparagraph (C), by striking ``or'' at the end;
            (2) in subparagraph (D), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) prohibiting a creditor or mortgage originator 
                from reducing compensation to an employee mortgage 
                originator if, after an initial annual percentage rate 
                (`APR') offer has been disclosed to a consumer by the 
                employee mortgage originator, such employee mortgage 
                originator makes a subsequent offer to the consumer 
                that--
                            ``(i) consists only of a reduction in the 
                        APR from the initial disclosed APR; and
                            ``(ii) is made in response to a lower APR 
                        offer disclosed to the consumer by another 
                        creditor or mortgage originator.''.
                                 <all>