Bill > S2995

This bill, titled the Portfolio Lending and Mortgage Access Act, amends the Truth in Lending Act to create a "safe harbor" for certain residential mortgage loans that are kept by the originating bank on its own books, meaning the bank doesn't sell them to other investors. This means that if a bank holds a mortgage loan on its balance sheet and any prepayment penalties are within specific limits, the bank won't be sued for not meeting certain requirements for "qualified mortgages" (loans that meet specific consumer protection standards) and banking regulators will treat these loans as qualified. The bill also provides protection for mortgage originators who steer consumers to these types of loans, as long as the bank informs the originator and the consumer that the loan will be held on the bank's books. Importantly, if a bank transfers such a loan due to bankruptcy or failure, it's still considered to have met the holding requirement, and this provision does not prevent balloon loans (loans with a large final payment) from qualifying for this safe harbor if they otherwise meet the conditions.