Text of the Consumer Mortgage Choice Act

This bill was introduced on March 12, 2013, in a previous session of Congress, but was not enacted. The text of the bill below is as of Mar 12, 2013 (Introduced).



1st Session

H. R. 1077


March 12, 2013

(for himself, Mr. Royce, Mr. David Scott of Georgia, Mr. Meeks, Mr. Clay, Mr. Stivers, Mr. Peters of Michigan, and Mr. Bachus) introduced the following bill; which was referred to the Committee on Financial Services


To amend the Truth in Lending Act to improve upon the definitions provided for points and fees in connection with a mortgage transaction.


Short title

This Act may be cited as the Consumer Mortgage Choice Act .


Definition of points and fees


Amendment to section 103 of TILA

Section 103(bb)(4) of the Truth in Lending Act ( 15 U.S.C. 1602(bb)(4) ) is amended—


by striking paragraph (1)(B) and inserting paragraph (1)(A) and section 129C ;


in subparagraph (A), by striking except interest or the time-price differential and inserting the following:



interest and the time-price differential; and


the amount of any loan level price adjustment payment set by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, or similar governmental entity or government-sponsored enterprise



by striking subparagraph (B) and inserting the following new subparagraph:


all compensation paid directly by a consumer to a mortgage originator, including a mortgage originator that is also the creditor in a table-funded transaction, but not including compensation paid by a mortgage originator or a creditor to an individual employed by the mortgage originator or creditor



in subparagraph (C)


by inserting and insurance after taxes;


in clause (ii), by inserting , except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(7)) after compensation; and


by striking clause (iii) and inserting the following:


the charge is—


a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or


a charge set forth in section 106(e)(1);

; and


in subparagraph (D)


by striking accident,; and


by striking or any payments and inserting and any payments.


Amendment to section 129C of TILA

Section 129C of the Truth in Lending Act (15 U.S.C. 1639c) is amended—


in subsection (a)(5)(C), by striking 103 and all that follows through or mortgage originator and inserting 103(bb)(4) ; and


in subsection (b)(2)(C)(i), by striking 103 and all that follows through or mortgage originator) and inserting 103(bb)(4) .