Preserving Consumer's Mortgage Origination Choices Act of 2011 - Amends the Truth in Lending Act (TILA), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, to provide that no provision of TILA shall be construed as prohibiting a mortgage broker from compensating a mortgage originator based on the principal amount of the loan, when compensation is paid directly or indirectly to the mortgage broker by the consumer in connection with such transaction.
Authorizes a mortgage originator, when requested by a borrower as the originator is producing a mortgage, to forfeit or contribute toward bona fide third party expenses or origination fees up to 30% of earned compensation to avoid making a high-cost mortgage to a consumer, to make technical corrections, or for any other reason that results in a lower cost to the consumer than if such forfeiture or contribution did not take place.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2509 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2509
To improve upon certain provisions of the Truth in Lending Act related
to the compensation of mortgage originators, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 13, 2011
Mr. Gary G. Miller of California introduced the following bill; which
was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To improve upon certain provisions of the Truth in Lending Act related
to the compensation of mortgage originators, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preserving Consumers' Mortgage
Origination Choices Act of 2011''.
SEC. 2. COMPENSATION OF MORTGAGE ORIGINATORS BY MORTGAGE BROKERS.
Subsection (c)(4) of section 129B of the Truth in Lending Act (as
added by Public Law 111-203) is amended by adding at the end the
following new subparagraph:
``(E) prohibiting a mortgage broker from
compensating a mortgage originator based on the
principal amount of the loan, when compensation is paid
directly or indirectly to the mortgage broker by the
consumer in connection with such transaction.''.
SEC. 3. LIMITED REDUCTION IN MORTGAGE ORIGINATOR COMPENSATION.
Section 129B of such Act is amended--
(1) by redesigning subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively; and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Limited Reduction in Mortgage Originator Compensation.--When
producing a mortgage, a mortgage originator, when requested by a
borrower, may forfeit or contribute toward bona fide third party
expenses or origination fees no more than 30 percent of earned
compensation to avoid making a high-cost mortgage to a consumer, to
make technical corrections, or for any other reason that results in a
lower cost to the consumer than if such forfeiture or contribution did
not take place.''.
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Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
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