SA 1028. Ms. KLOBUCHAR submitted an amendment intended to be proposed by her 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 appropriate place, insert the following:
SEC. __X PROHIBITION ON STEERING.
(a) In General.--The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after section 129 the following new section:
``SEC. 129A. PROHIBITION ON STEERING WITH RESPECT TO HOME MORTGAGE LOANS.
``(a) In General.--In connection with a home mortgage loan, a mortgage broker or creditor may not--
``(1) steer, counsel, or direct a consumer to rates, charges, principal amount, or prepayment terms that are more expensive for that which the consumer qualifies; or
``(2) make, provide, or arrange for any consumer credit transaction secured by a consumer's principal dwelling that is more expensive than that for which the consumer qualifies.
``(b) Duties to Consumers.--If unable to suggest, offer, or recommend to a consumer a home loan that is not more expensive than that for which the consumer qualifies, a mortgage originator shall--
``(1) based on the information reasonably available and using the skill, care, and diligence reasonably expected for a mortgage originator, originate or otherwise facilitate a suitable home mortgage loan by another creditor to a consumer, if permitted by and in accordance with all otherwise applicable law; or
``(2) disclose to a consumer--
``(A) that the creditor does not offer a home mortgage loan that is not more expensive than a loan for which the consumer qualifies, but that other creditors may offer such a loan; and
``(B) the reasons that the products and services offered by the mortgage originator are not available to or reasonably advantageous for the consumer.
``(c) Prohibited Conduct.--In connection with a home mortgage loan, a mortgage originator may not--
``(1) mischaracterize the credit history of a consumer or the home loans available to a consumer;
``(2) mischaracterize or suborn the mischaracterization of the appraised value of the property securing the extension of credit; and
``(3) if unable to suggest, offer, or recommend to a consumer a loan that is not more expensive than a loan for which the consumer qualifies, discourage a consumer from seeking a home mortgage loan from another creditor or with another mortgage originator.
``(d) Mortgage Broker Defined.--For purposes of this section, the term `mortgage broker' means any person who is defined as a mortgage broker under applicable State law.''.
(b) Clerical Amendment.--The table of sections for the Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after the item relating to section 129 the following new item:

``Sec..129A..Prohibition on steering with respect to home mortgage loans.''.


(As printed in the Congressional Record for the Senate on Apr 30, 2009.)