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Full Text of this Amendment
At the end of title V, add the following:
SEC. 503. RESPA AND TILA DISCLOSURE IMPROVEMENT.
(a) Compatible Disclosures.--Not later than 6 months after the date of enactment of this Act, the Secretary of Housing and Urban Development (in this section referred to as the ``Secretary'') and the Board shall jointly issue for public comment proposed regulations providing for compatible disclosures to be made to borrowers to at the time of a mortgage application and at the time of closing of a mortgage.
(b) Requirements.--Such disclosures shall--
(1) provide clear and concise information to borrowers on the terms and costs of residential mortgage transactions and mortgage transactions covered by the Truth in Lending Act (12 U.S.C. 1601 et seq.) and the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.);
(2) satisfy the requirements of section 128 of the Truth in Lending Act (12 U.S.C. 1638) and sections 4 and 5 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2603 and 2604);
(3) include early disclosures under the Truth in Lending Act, the good faith estimate disclosures under the Real Estate Settlement Procedures Act of 1974, and final disclosures under the Truth in Lending Act and the uniform settlement statement disclosures under the Real Estate Settlement Procedures Act of 1974, and provide for standardization to the greatest extent possible among such disclosures, from mortgage origination through the mortgage settlement; and
(4) include, with respect to a residential home mortgage loan, a written statement of--
(A) the principal amount of the loan;
(B) the term of the loan;
(C) whether the loan has a fixed rate of interest or an adjustable rate of interest;
(D) the annual percentage rate of interest under the loan as of the time of the disclosure;
(E) if the rate of interest under the loan can adjust after the disclosure, for each such possible adjustment--
(i) when such adjustment will or may occur; and
(ii) the maximum annual percentage rate of interest to which it can be adjusted;
(F) the total monthly payment under the loan (including loan principal and interest, property taxes, and insurance) at the time of the disclosure;
(G) the maximum total estimated monthly maximum payment pursuant to each possible adjustment described in subparagraph (E);
(H) the total settlement charges in connection with the loan and the amount of any down payment or cash required at settlement; and
(I) whether the loan has a prepayment penalty or balloon payment and the terms, timing, and amount of any such penalty or payment.
(c) Suspension of 2008 RESPA Rule.--
(1) REQUIREMENT.--The Secretary shall, during the period beginning on the date of enactment of this Act and ending on the date on which proposed regulations are issued pursuant to subsection (a), suspend implementation of any provision of the final rule referred to in paragraph (2) that would establish and implement a new standardized good faith estimate and a new standardized uniform settlement statement. Any such provision shall be replaced by the regulations issued pursuant to subsections
(a) and (b) on the date on which such regulations are issued.
(2) 2008 RULE.--The final rule referred to in this paragraph is the rule of the Department of Housing and Urban Development published on November 17, 2008, on pages 68204-68288 of Volume 73 of the Federal Register (Docket No. FR-5180-F-03; relating to ``Real Estate Settlement Procedures Act (RESPA): Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs'').
(d) Implementation.--The regulations required under subsection (a) shall take effect, and shall provide an implementation date for the new disclosures required under such regulations, not later than 12 months after the date of enactment of this Act.
(e) Failure to Issue Compatible Disclosures.--
(1) REPORT TO CONGRESS.--If the Secretary and the Board cannot agree on compatible disclosures pursuant to subsections (a) and (b), the Secretary and the Board shall submit a report to the Congress, after the 6-month period referred to in subsection (a), explaining the reasons for such disagreement.
(2) SEPARATE PROPOSED REGULATIONS.--
(A) ISSUANCE OF PROPOSED REGULATIONS.--After the 15-day period beginning on the date of submission of a report under paragraph (1), the Secretary and the Board may separately issue for public comment regulations, as required by this section, providing for disclosures under the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) and the Truth in Lending Act (12 U.S.C. 1601 et seq.), respectively.
(B) EFFECTIVE DATE OF FINAL REGULATIOSN.--Any final disclosures as a result of such regulations issued by the Secretary and the Board shall take effect on the same date, and in no case shall such regulations take effect later than 12 months after the date of enactment of this Act.
(C) FAILURE TO ACT.--If either the Secretary or the Board fails to act as required by this paragraph during such 12-month period, the other agency may act independently to implement final regulations.
(f) Standardized Disclosure Forms.--
(1) IN GENERAL.--Any regulation proposed or issued pursuant to the requirements of this section shall include model disclosure forms.
(2) OPTION FOR MANDATORY USE.--In issuing proposed regulations under subsection (a), the Secretary and the Board shall include regulations for the mandatory use of standardized disclosure forms if the Secretary and the Board jointly determine that such forms would substantially benefit consumers.
(As printed in the Congressional Record for the Senate on May 14, 2009.)