[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2509 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2509

To improve upon certain provisions of the Truth in Lending Act related 
  to the compensation of mortgage originators, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2011

 Mr. Gary G. Miller of California introduced the following bill; which 
          was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To improve upon 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 2011''.

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 broker from 
                compensating a mortgage originator based on the 
                principal amount of the loan, when compensation is paid 
                directly or indirectly to the mortgage broker by the 
                consumer in connection with such transaction.''.

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) Limited Reduction in Mortgage Originator Compensation.--When 
producing a mortgage, a mortgage originator, when requested by a 
borrower, may forfeit or contribute toward bona fide third party 
expenses or origination fees no more than 30 percent of earned 
compensation to avoid making a high-cost mortgage to a consumer, to 
make technical corrections, or for any other reason that results in a 
lower cost to the consumer than if such forfeiture or contribution did 
not take place.''.
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