Bill > S949

This bill, known as the Consumer Mortgage Choice Act, aims to refine the definitions of "points and fees" within the Truth in Lending Act (TILA), a federal law requiring lenders to disclose key loan terms and costs to consumers. Specifically, it clarifies what constitutes compensation paid directly by a consumer to a mortgage originator, excluding payments made by the originator or lender to their own employees. The bill also expands the definition to include insurance alongside taxes and introduces exceptions for certain fees retained by a creditor or its affiliate through an affiliated business arrangement, as defined by the Real Estate Settlement Procedures Act of 1974 (RESPA). Furthermore, it specifies that only bona fide third-party charges not retained by the mortgage originator, creditor, or their affiliates, or charges listed in a specific section of RESPA, will be considered points and fees, while also making minor adjustments to other fee-related language.