Preserving Consumer's Mortgage Origination Choices Act of 2012 - Amends the Truth in Lending Act with respect to the prohibitions against: (1) steering incentives in connection with residential mortgage loan origination; and (2) the restructuring of a financing origination fee, except in certain circumstances.
Declares that nothing in such prohibitions shall be construed as prohibiting a mortgage originator who receives compensation directly from a consumer from compensating another mortgage originator employee, mortgage originator agent, or mortgage originator contractor based on the principal amount of the loan, provided that the amount of compensation received by such employee, agent, or contractor may not vary based on any other terms of the loan.
Allows a mortgage originator, at the consumer's request, to reduce the amount of compensation the originator is receiving to offset permitted settlement charges (other than those the originator controls) that exceed the amounts previously disclosed on the good faith estimate of the settlement charges given to that consumer, provided that the originator's compensation may not increase.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4163 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4163
To amend certain provisions of the Truth in Lending Act related to the
compensation of mortgage originators, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 7, 2012
Mr. Gary G. Miller of California (for himself and Mr. Sherman)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To amend 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 2012''.
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 originator who
receives compensation directly from a consumer in
accordance with this section from compensating another
mortgage originator employee, mortgage originator
agent, or mortgage originator contractor based on the
principal amount of the loan, provided that the amount
of compensation received by such employee, agent, or
contractor may not vary based on any other terms of the
loan.''.
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) Reduction in Mortgage Originator Compensation To Pay for Cost
Increases Beyond the Control of the Originator.--A mortgage originator,
at the request of a consumer, may reduce the amount of compensation
being received by such originator to offset settlement charges, other
than settlement charges controlled by such originator, which are
permitted under the Real Estate Settlement Procedures Act (12 U.S.C.
2601-2617), that exceed the amounts previously disclosed on the good
faith estimate of the settlement charges provided to such consumer
pursuant to section 5(c) of such Act (12 U.S.C. 2604(c)), provided that
the originator's compensation may not increase.''.
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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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