H.R. 3915 - Mortgage Reform and Anti-Predatory Lending Act of 2007

1. Structured rule.

2. Provides one hour of general debate equally divided and controlled by the Chairman and Ranking Minority Member of the Committee on Financial Services.

3. Waives all points of order against consideration of the bill except for clauses 9 and 10 of rule XXI.

4. Provides that the amendment in the nature of a substitute recommended by the Committee on Financial Services, now printed in the bill, shall be considered as an original bill for the purpose of amendment and shall be considered as read.

5. Waives all points of order against the amendment in the nature of a substitute except for clause 10 of rule XXI. This waiver does not affect the point of order available under clause 9 of rule XXI (regarding earmark disclosure).

6. No amendments shall be in order except those amendments printed in the Rules Committee report accompanying the resolution.

7. Provides that the amendments made in order may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment except as specified in the report, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole.

8. Waives all points of order against the amendments printed in the report except for clauses 9 and 10 of rule XXI.

9. Provides one motion to recommit with or without instructions.

10. Provides that, notwithstanding the operation of the previous question, the Chair may postpone further consideration of the bill to a time designated by the Speaker.

—————

RESOLUTION

            Resolved, That at any time after the adoption of this resolution the Speaker may, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 3915) to amend the Truth in Lending Act to reform consumer mortgage practices and provide accountability for such practices, to establish licensing and registration requirements for residential mortgage originators, to provide certain minimum standards for consumer mortgage loans, and for other purposes.  The first reading of the bill shall be dispensed with.  All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI.  General debate shall be confined to the bill and shall not exceed one hour equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services.  After general debate the bill shall be considered for amendment under the five-minute rule.  It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill.  The committee amendment in the nature of a substitute shall be considered as read.  All points of order against the committee amendment in the nature of a substitute are waived except those arising under clause 10 of rule XXI.  Notwithstanding clause 11 of rule XVIII, no amendment to the committee amendment in the nature of a substitute shall be in order except those printed in the report of the Committee on Rules accompanying this resolution.  Each such amendment may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment except as specified in the report, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole.  All points of order against such amendments are waived except those arising under clause 9 or 10 of rule XXI.  At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted.  Any Member may demand a separate vote in the House on any amendment adopted in the Committee of the Whole to the bill or to the committee amendment in the nature of a substitute.  The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.

            Sec. 2.  During consideration in the House of H.R. 3915 pursuant to this resolution, notwithstanding the operation of the previous question, the Chair may postpone further

SUMMARY OF AMENDMENTS MADE ORDER

 1. Frank (MA)/Bachus (AL): #13,  The amendment makes a number of technical and conforming changes as well as enhancements to the bill including the following: 1) clarifies the definition of loan originator; 2) narrows the scope of the preemption provision to make it clear that states cannot use or adopt state laws against securitizers/assignees for violations of the national standards or to impose remedies outside of the unique Federal remedy established in the bill, and to make it clear that actions for fraud, misrepresentation, deception, false advertising or civil rights laws are not preempted; 3) clarifies the registration requirements for the Nationwide Mortgage Licensing System and Registry; 4) allows consumers to obtain a cure from assignee or securitizer if creditor or other assignees cease to exist or go bankrupt; 5) clarifies the incentive compensation provision; and 6) adds a monthly disclosure requirement for mortgages.,  (10 minutes)

2. Kanjorski (PA)/Biggert (IL)/Capito (WV)/Hodes (NH)/Moore, Gwen (WI): #9, The amendment, reflecting provisions from H.R. 3837 (The Escrow, Appraisal, and Mortgage Servicing Improvements Act), would better consumer protection by improving mortgage servicing, protecting appraiser independence, ensuring better appraisal quality and regulatory oversight, requiring escrows for mortgages for borrowers who might experience difficulty with repayment, and establishing disclosure for consumers who waive escrow accounts.,  (10 minutes)

3. Maloney (NY): #22,  Would require a borrower to receive the option of a mortgage without a prepayment penalty, if they are offered an amendment with a prepayment penalty.  Sets the maximum time for a prepayment penalty of 3 years and a maximum prepayment amount of 3% of the loan for the first year, 2% for the second year and 1% for the third year.,  (10 minutes)

4. Watt (NC)/Miller, Brad (NC): #15, This amendment allows for actual damages in the liability section.,  (10 minutes)

5. Watt (NC)/Miller, Brad (NC): #17, The amendment requires the assignee to have policies/procedures and to cure the loan to avoid being liable for rescission.,  (10 minutes)

6. Watt (NC)/Miller, Brad (NC): #19, The amendment changes the irrebuttable presumption under Section 203 to a rebuttable presumption for all mortgages that allow a borrower to defer payment of principal or interest.,  (10 minutes)

7. Hensarling (TX): #11, Amendment would remove the civil liability of a lender and cancel the right of rescission for a borrower in instances when a borrower knowingly lied on their mortgage loan application. ,  (10 minutes)

8. Watt (NC)/Miller, Brad (NC): #20, The second-degree amendment to Hensarling #11 adds that the obligor must have had actual knowledge of the false material information for the exemption from liability to take effect.,  (10 minutes)

9. Meeks (NY): #23, The amendment provides that the Nationwide Mortgage Licensing System and Registry shall not directly or indirectly offer educational courses for pre-licensure or continuing education for mortgage originators. In approving courses under this Act, the Nationwide Mortgage Licensing System and Registry shall apply reasonable standards in the review and approval of courses.,  (10 minutes)

10. Putnam (FL): #7, The amendment would direct the GAO to conduct a study to determine the effects the enactment of H.R. 3915 will have on the availability and affordability of credit for homebuyers and mortgage lending, and to submit a report to Congress containing the findings and conclusions within one year of the enactment of the legislation.  ,  (10 minutes)

11. Brown-Waite (FL): #8, The amendment excludes loans insured by the Federal Housing Administration from the provisions of the bill.,  (10 minutes)

12. Garrett (NJ): #10, The amendment would strike the rebuttable presumption under section 203, stating that all qualified safe harbor loans that meet the requirements listed in section 203(c)(3)(C) fall under the safe harbor.,  (10 minutes)

13. Miller, Brad (NC)/Frank (MA)/Watt (NC): #14, Allow regulators to fine mortgage originators, assignees and securitizers who more than occasionally (“pattern or practice”) violate the minimum standards for loans established in the bill at least $1 million, $25,000 per loan.  Proceeds would be held in trust by the US Treasury for the benefit of borrowers who have no other avenue for obtaining a remedy.,  (10 minutes)

14. Green, Al (TX): #16, States that educational requirements include instruction on fraud, consumer protection, and fair lending issues.,  (10 minutes)

15. McHenry (NC): #6, The amendment would strike Title III - High-Cost Mortgages - from the bill.,  (10 minutes)

16. Price, Tom (GA): #2, This amendment would exempt prime loans from the bill.,  (10 minutes)

17. Van Hollen (MD): #4, The amendment requires that in the case of a residential mortgage loan, closing costs may not exceed by more than 10% any estimate of closing costs disclosed to the consumer in advance of closing.,  (10 minutes)

18. Sutton (OH): #1,  This amendment would require loan creditors or servicers to provide a written notice to consumers with hybrid adjustable rate mortgages six months before their interest rates are due to reset.  This notice would state the new interest rate, an explanation of how the new interest rate would be determined, the creditor’s or servicer’s good faith estimate of the monthly payment that will apply after the reset, a list of alternatives consumers may pursue before the date of adjustment or reset, and contact information for local HUD-approved housing counseling agencies and the state housing finance authority.,  (10 minutes)