House Bill 1295, The Responsible Lending Act has been introduced to Congress by Rep. Bob Ney (R-Ohio)
and Rep. Paul Kanjorski (D-Pennsylvania). This bill is designed to "protect consumers against unfair and
deceptive practices in connection with higher cost mortgage transactions, to strengthen the civil remedies
available to consumers under existing law, to provide for certain uniform lending standards, to improve
housing counseling, to better mortgage servicing, to enhance appraisal standards and oversight, to
establish licensing and minimum standards for mortgage brokers, and for other purposes."
I urge you to contact your Member of Congress via e-mail and ask them you would like for them to sign on
to this bill and that you support it. A summary of HR 1295 is displayed below along with the names of the
co-sponsors. If your Representative's name is displayed as a sponsor, email him or her and tell them you
appreciate their sponsorship and encourage their continued support. To contact your Representative go
to: http://www.house.gov/writerep/
We need to generate phone calls and emails.
Our Legislative Committee approved our support of this bill.
Chuck
Charles E. Blau, Esq. IFAC
Regional Governor
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SUMMARY AS OF:
3/15/2005--Introduced.
Responsible Lending Act - Mortgage Lending Improvements and Uniform National Standards Act - Amends the Truth in
Lending Act to define higher-cost mortgage.
Sets forth related provisions with respect to: (1) requirements for higher-cost mortgages; (2) dispute and error resolution;
(3) damages, rescission and liability; (4) State law coordination; (5) State enforcement authority; (6) prepayment penalties
and late charges; and (7) consumer counseling.
Expanding Housing Opportunities Through Education and Counseling Act - Amends the Department of Housing and
Urban Development Act to establish, in the Office of the Secretary of Housing and Urban Development (HUD), the Office
of Housing Counseling. Directs the Office to carry out HUD homeownership and rental counseling functions, including
related research, grant administration, public outreach, and development of policy and performance measures.
Amends the Housing and Urban Development Act of 1968 to direct the Secretary to: (1) establish homeownership and
rental counseling procedures, and a related a toll-free telephone number and World Wide Web site; (2) certify computer
software programs for consumer evaluation of residential mortgage loans; (3) establish a housing counseling multimedia
outreach program for vulnerable populations; (4) assist States, local government, and non-profit organizations with
consumer education programs about mortgage, refinancing, home equity, or home repair loans; and (5) make grants for
State, local government, and nonprofit organization housing counseling assistance.
Requires organizations to use HUD-certified counselors in order to qualify for specified HUD assistance.
Amends the Real Estate Settlement Procedures Act of 1974 to: (1) revise the mortgage information booklet;
(2) set forth prohibitions on a servicer of a federally related mortgage; and (3) prohibit a creditor from providing a
higher-cost mortgage to any consumer without first obtaining a written appraisal of the property.
Amends the Truth in Lending Act to require a creditor in certain transactions secured by a residence to establish an
escrow or impound account for taxes and hazard insurance payments.
Directs: (1) the Secretary to conduct studies of mortgage servicing fraud, and home loan default and foreclosures;
and (2) the Government Accountability Office (GAO) to conduct an appraisal process study.
Directs the Secretary to establish: (1) a national mortgage broker database; and (2) Federal mortgage broker
requirements. Sets forth uniform State mortgage broker law guidelines, and states that Federal requirements shall
apply to those States that have not enacted uniform laws.
Sets forth liability provisions for intentional unlawful disclosures, with a good faith exception.
