summary
Introduced
03/03/2015
03/03/2015
In Committee
07/29/2015
07/29/2015
Crossed Over
11/19/2015
11/19/2015
Passed
Dead
01/03/2017
01/03/2017
Introduced Session
114th Congress
Bill Summary
Portfolio Lending and Mortgage Access Act (Sec. 2) This bill amends the Truth in Lending Act to create a safe harbor from lawsuit for creditors that are depository institutions for any failure to comply with certain requirements with respect to a residential mortgage loan, and the banking regulators are required to treat such a loan as a qualified mortgage, if the creditor has, since the loan's origination, held it on its balance sheet and all prepayment penalties with respect to the loan comply with specified limitations. A safe harbor from lawsuit is also created for mortgage originators for steering a consumer to a residential mortgage loan if: the creditor is a depository institution and has informed the mortgage originator that it intends to hold the loan on its balance sheet for the life of the loan, and the mortgage originator informs the consumer that the creditor intends to do so.
AI Summary
This bill, the Portfolio Lending and Mortgage Access Act, amends the Truth in Lending Act to create a "safe harbor" from lawsuits for certain lenders and mortgage originators regarding residential mortgage loans. A safe harbor means that if specific conditions are met, lenders and originators are protected from legal action for failing to comply with certain loan requirements. Specifically, depository institutions (banks and similar financial institutions) that hold a residential mortgage loan on their own books (on their balance sheet) since it was originated, and whose prepayment penalties (fees for paying off a loan early) meet certain limits, will be protected from lawsuits for non-compliance with specific loan rules, and banking regulators will consider these loans as "qualified mortgages," which are loans that meet certain underwriting standards. Additionally, mortgage originators are protected from lawsuits for steering consumers to a particular loan if the bank that will hold the loan has informed the originator of their intention to keep the loan long-term, and the originator informs the consumer of this intention. The bill also clarifies that this protection can extend even if a loan is transferred between depository institutions due to bankruptcy or acquisition, and it includes a provision that allows certain "balloon loans" (loans with a large final payment) to qualify for this safe harbor if they otherwise meet the bill's requirements.
Committee Categories
Business and Industry, Housing and Urban Affairs
Sponsors (55)
Andy Barr (R)*,
Mark Amodei (R),
Brian Babin (R),
Rod Blum (R),
Susan Brooks (R),
Chris Collins (R),
Kevin Cramer (R),
Carlos Curbelo (R),
Rodney Davis (R),
Robert Dold (R),
Sean Duffy (R),
Tom Emmer (R),
Stephen Fincher (R),
Chuck Fleischmann (R),
Paul Gosar (R),
Frank Guinta (R),
Brett Guthrie (R),
Vicky Hartzler (R),
French Hill (R),
Randy Hultgren (R),
Bill Johnson (R),
Dave Joyce (R),
Peter King (R),
Frank Lucas (R),
Blaine Luetkemeyer (R),
Kenny Marchant (R),
Tom McClintock (R),
Mark Meadows (R),
Luke Messer (R),
Mick Mulvaney (R),
Randy Neugebauer (R),
Kristi Noem (R),
Pete Olson (R),
Stevan Pearce (R),
Robert Pittenger (R),
Ted Poe (R),
Bruce Poliquin (R),
James Renacci (R),
Reid Ribble (R),
Tom Rice (R),
Keith Rothfus (R),
Pete Sessions (R),
Chris Stewart (R),
Steve Stivers (R),
Marlin Stutzman (R),
Scott Tipton (R),
David Valadao (R),
Ann Wagner (R),
Tim Walberg (R),
Randy Weber (R),
Roger Williams (R),
Joe Wilson (R),
David Young (R),
Lee Zeldin (R),
Ryan Zinke (R),
Last Action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (on 11/19/2015)
Official Document
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