Home Ownership Preservation and Protection Act of 2007

A bill to amend the Truth in Lending Act to provide protection to consumers with respect to certain high-cost loans, and for other purposes.

12/12/2007--Introduced.
Home Ownership Preservation and Protection Act of 2007 - Amends the Truth in Lending Act to redefine high-cost mortgages and attendant lending practices. Sets forth a new formula for points and fees for open-end loans, and provides for bona fide discount points. Prohibits:
(1) prepayment penalties;
(2) balloon payments;
(3) yield spread premiums;
(4) acceleration or debt;
(5) evasions, structuring of transactions, and reciprocal arrangements; and
(6) modification and deferral fees. Prohibits creditors from financing, in connection with a high-cost mortgage, any prepayment fee or penalty, or any points or fees. Prohibits an originator from making or arranging a high-cost mortgage loan that involves a refinancing of a prior existing home mortgage loan unless the new loan will provide a net tangible benefit to the consumer. Sets forth prerequisites for subprime and nontraditional home loans, including:
(1) an assessment of ability to pay;
(2) a requirement of tax and insurance escrows;
(3) prohibition of prepayment penalties and yield-spread premiums; and
(4) a requirement of net tangible benefit to the consumer in the case of a subprime or nontraditional mortgage loan transaction that involves refinancing of an existing home mortgage. Imposes a duty of care and a duty of good faith and fair dealing upon mortgage brokers and lenders, appraisers, and lenders and loan servicers. Empowers state Attorneys General to enforce this Act. Subjects lenders, loan servicers, creditors and mortgage brokers to civil liability for violations of this Act. Increases the amount of the penalty that may be awarded. Amends the Real Estate Settlement Procedures Act of 1974 to require a transferor of loan servicing before the transfer tonotify the borrower of the status of the account and its full payment history. Amends the Housing and Urban Development Act of 1968 to revise requirements for foreclosure prevention counseling. Amends the Truth in Lending Act to expand from three to six years an obligor's right of rescission. Imposes liability for monetary damages upon assignees of subprime or nontraditional loans for violations of this Act.
Sets forth a remedy in lieu of rescission for certain violations.
Prohibits mandatory arbitration. Subjects a lender to liability for certain actions, omissions, and representations made by a mortgage broker in connection with a high-cost mortgage, a subprime mortgage, or a nontraditional mortgage. Amends the Federal Trade Commission Act to require the federal banking agencies and the National Credit Union Administration Board each to establish a separate division of consumer affairs protection and regulations with respect to depository institutions and federal credit unions. Authorizes appropriations to employ additional agents of the Federal Bureau of Investigation and additional dedicated prosecutors at the Department of Justice to coordinate prosecution of mortgage fraud efforts with the offices of the U.S. Attorneys.


... morehide bill summary

Sponsor

• Sen. Christopher Dodd [D, CT]
• and 19 Co-Sponsors
  • Sen. Daniel Akaka [D, HI]
  • Sen. Barbara Boxer [D, CA]
  • Sen. Sherrod Brown [D, OH]
  • Sen. Robert Casey [D, PA]
  • Sen. Hillary Clinton [D, NY]
  • Sen. Richard Durbin [D, IL]
  • Sen. Dianne Feinstein [D, CA]
  • Sen. Thomas Harkin [D, IA]
  • Sen. Edward Kennedy [D, MA]
  • Sen. John Kerry [D, MA]
  • Sen. Amy Klobuchar [D, MN]
  • Sen. Frank Lautenberg [D, NJ]
  • Sen. Claire McCaskill [D, MO]
  • Sen. Robert Menéndez [D, NJ]
  • Sen. Barbara Mikulski [D, MD]
  • Barack Obama
  • Sen. John Reed [D, RI]
  • Sen. Charles Schumer [D, NY]
  • Sen. Sheldon Whitehouse [D, RI]
  close

Committees

• Senate Banking, Housing, and Urban Affairs

Amendments

This bill has no amendments.

Amendments to S.2452

Number	Status	Purpose

Bill Status

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Introduced		Voted on by Senate		Voted on by House		Considered By President		Bill Becomes Law
December 12, 2007

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All Bill Actions

• Dec 12, 2007: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
• Introduced on Dec 12, 2007.
• Dec 12, 2007: Sponsor introductory remarks on measure. (CR S15235-15236)

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Related Bills:

• S.1299

Related Issue Areas:

• Finance
• Administrative procedure
• Business
• Commercial arbitration
• 35 more
• Consumer credit
• Consumer protection
• Consumers
• Credit unions
• Criminal justice
• Damages
• Department of Justice
• Executive departments
• Executive reorganization
• Federal Bureau of Investigation (FBI)
• Federal Deposit Insurance Corporation
• Federal law enforcement officers
• Federal reserve system
• Fees
• Foreclosure
• Fraud
• Government corporations
• Government employees
• Housing
• Insurance premiums
• Law
• Liability (Law)
• Loan defaults
• Mortgage guaranty insurance
• Mortgage interest rates
• Mortgages
• National Credit Union Administration
• Property insurance
• Property tax
• Prosecution
• Public prosecutors
• Real estate appraisal
• Restrictive trade practices
• Settlement costs
• Taxation

Data from the Congressional Research Service

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Blog Coverage

December 19, 2008 Appraisers and the Coming Financial Storm | Las Vegas Real Estate ...

Now a Senate Bill (S. 2452) has been introduced that would require appraisers to post a 1% bond based on the aggregate value of their appraisals. For most appraisers this would mean that their entire life’s savings would have to be ...

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Source: Las Vegas Real Estate Attorneys

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December 12, 2008 Abusive Lending In The Subprime Market - Issue Summary | RIRealty.com

On December 12, 2007, Senate Banking Committee Chairman Chris Dodd (D-CT) introduced S. 2452, the “Homeownership Preservation and Protection Act of 2007,” which focuses on tighter lending standards, tougher consumer remedies and ...

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Source: RIRealty.com

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December 09, 2008 The Christian Post Intelligencer: The Creation of Department of ...

A year later, on May 2, 2002, after refining and widening the scope of his original resolution, Representative Thornberry joined with Senator Lieberman to introduce H.R. 4660 and S. 2452 that will establish the Department of National ...

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Source: The Christian Post Intelligencer

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