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Full Text of this Amendment
SA 1015. Mr. MERKLEY submitted an amendment intended to be proposed by him to the bill S. 896, to prevent mortgage foreclosures and enhance mortgage credit availability; which was ordered to lie on the table; as follows:
At the end of title I, add the following:
SEC. 103. PROHIBITION ON YIELD SPREAD PREMIUMS.
(a) In General.--No person shall provide, and no mortgage originator shall receive, directly or indirectly, any compensation that is based on, or varies with, the terms of any home mortgage loan (other than the amount of the loan).
(b) Definitions.--For purposes of this section--
(1) the term ``home mortgage loan'' means a loan secured by a mortgage or lien on residential property;
(2) the term ``mortgage originator'' means any creditor or other person, including a mortgage broker or bank lender, who, for compensation or in anticipation of compensation, engages either directly or indirectly in the--
(A) acceptance of applications for home mortgage loans;
(B) solicitation of home mortgage loans on behalf of borrowers;
(C) negotiation of terms or conditions of home mortgage loans on behalf of borrowers or lenders; or
(D) negotiation of sales of existing home mortgage loans to institutional or noninstitutional lenders; and
(3) the term ``residential property'' means a 1-4 family, owner-occupied residence, including a 1-family unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.
SEC. 104. PROHIBITION ON PREPAYMENT PENALTIES.
The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after section 129A the following new section:
``SEC. 129B. PROHIBITION ON PREPAYMENT PENALTIES.
``No prepayment fees or penalties shall be charged or collected under the terms of any consumer credit transaction secured by an owner-occupied principal dwelling of the consumer. Any prepayment penalty in violation of this section shall be unenforceable.''.
(As printed in the Congressional Record for the Senate on Apr 30, 2009.)
At the end of title I, add the following:
SEC. 103. PROHIBITION ON YIELD SPREAD PREMIUMS.
(a) In General.--No person shall provide, and no mortgage originator shall receive, directly or indirectly, any compensation that is based on, or varies with, the terms of any home mortgage loan (other than the amount of the loan).
(b) Definitions.--For purposes of this section--
(1) the term ``home mortgage loan'' means a loan secured by a mortgage or lien on residential property;
(2) the term ``mortgage originator'' means any creditor or other person, including a mortgage broker or bank lender, who, for compensation or in anticipation of compensation, engages either directly or indirectly in the--
(A) acceptance of applications for home mortgage loans;
(B) solicitation of home mortgage loans on behalf of borrowers;
(C) negotiation of terms or conditions of home mortgage loans on behalf of borrowers or lenders; or
(D) negotiation of sales of existing home mortgage loans to institutional or noninstitutional lenders; and
(3) the term ``residential property'' means a 1-4 family, owner-occupied residence, including a 1-family unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.
SEC. 104. PROHIBITION ON PREPAYMENT PENALTIES.
The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after section 129A the following new section:
``SEC. 129B. PROHIBITION ON PREPAYMENT PENALTIES.
``No prepayment fees or penalties shall be charged or collected under the terms of any consumer credit transaction secured by an owner-occupied principal dwelling of the consumer. Any prepayment penalty in violation of this section shall be unenforceable.''.
(As printed in the Congressional Record for the Senate on Apr 30, 2009.)
