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H.R. 1153 (115th): Mortgage Choice Act of 2017

The text of the bill below is as of Feb 12, 2018 (Referred to Senate Committee). The bill was not enacted into law.

Summary of this bill

Source: Republican Policy Committee

H.R. 1153 excludes insurance held in escrow and, under certain circumstances, fees paid to companies affiliated with the creditor from the costs that would be considered in calculating the three percent “points and fees” limitation for purposes of determine whether a mortgage can be considered a “Qualified Mortgage”. The legislation directs the Consumer Financial Protection Bureau (CFPB) to amend its regulations to reflect the new exclusions.

Mortgage points, also known as discount points, are fees directly paid to the lender at closing in exchange for a reduced interest rate. Essentially, some interest is paid up front in exchange for a lower interest over the life of the loan. One ...



2d Session

H. R. 1153


February 12, 2018

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs


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 Mortgage Choice Act of 2017.


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 (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).



Not later than the end of the 90-day period beginning on the date of the enactment of this Act, the Bureau of Consumer Financial Protection shall issue final

regulations to carry out the amendments made by this Act, and such regulations shall be effective upon issuance.

Passed the House of Representatives February 8, 2018.

Karen L. Haas,