Preserving Access to Rural Installment Transactions for Years Act of 2019 or the PARITY Act of 2019
This bill revises the definition of a mortgage originator for the purposes of compliance with registration and compensation requirements.
Among other things, it exempts from mortgage originator requirements those lenders providing financing to five (currently three) or fewer properties in a year, including corporations and partnerships that would otherwise be regulated as mortgage originators. The bill also removes the requirement that such lenders, in order to be exempt from these requirements, must verify the buyer's ability to repay the loan.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1036 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 1036
To amend the Truth in Lending Act to clarify the exclusion for seller-
financers from the definition of mortgage originator, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2019
Mr. Riggleman introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act to clarify the exclusion for seller-
financers from the definition of mortgage originator, 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 ``Preserving Access to Rural
Installment Transactions for Years Act of 2019'' or the ``PARITY Act of
2019''.
SEC. 2. AMENDMENTS RELATED TO THE EXCLUSION OF SELLER-FINANCERS IN THE
DEFINITION OF MORTGAGE ORIGINATOR.
Section 103(dd)(2)(E) of the Truth in Lending Act (15 U.S.C.
1602(dd)(2)(E)) is amended--
(1) in the matter preceding clause (i)--
(A) by striking ``3 properties'' and inserting ``5
properties'';
(B) by striking ``a person, estate, or trust'' and
inserting ``a person or entity (including a
corporation, partnership, proprietorship, association,
cooperative, estate, or trust)''; and
(C) by striking ``such person, estate, or trust''
and inserting ``such a person or entity'';
(2) in clause (i)--
(A) by inserting ``or'' after the semicolon;
(B) by striking ``a person, estate, or trust that
has constructed'' and inserting ``such a person or
entity that--
``(I) has constructed''; and
(C) by inserting at the end the following new
subclause:
``(II) has received any other
compensation related to such loan,
including origination points or fees
and excluding interest payments;'';
(3) by striking clauses (ii), (iii), and (iv); and
(4) by inserting after clause (i) the following new
clauses:
``(ii) is not a high-cost mortgage;
``(iii) does not include terms under which
the outstanding principal balance will increase
at any time over the course of the loan because
the regular periodic payments do not cover the
full amount of interest due;
``(iv) has--
``(I) a fixed rate; or
``(II) an adjustable rate that was
not determined by a prior contractual
obligation between the consumer and
such a person or entity and--
``(aa) is adjustable after
5 or more years (as determined
by the addition of a margin to
a widely available index rate)
subject to reasonable annual
and lifetime limitations on
interest rate increases or is
determined by a prior
obligation that is included in
or assumed by the terms of the
loan; or
``(bb) with respect to any
part of such loan contractually
required to be used to make
payments on an existing
mortgage loan secured by such a
property, is adjustable on or
after the date of a rate
adjustment on such existing
mortgage loan; and''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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