[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4163 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4163

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 7, 2012

    Mr. Gary G. Miller of California (for himself and Mr. Sherman) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend 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 2012''.

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 originator who 
                receives compensation directly from a consumer in 
                accordance with this section from compensating another 
                mortgage originator employee, mortgage originator 
                agent, or mortgage originator contractor based on the 
                principal amount of the loan, provided that the amount 
                of compensation received by such employee, agent, or 
                contractor may not vary based on any other terms of the 
                loan.''.

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) Reduction in Mortgage Originator Compensation To Pay for Cost 
Increases Beyond the Control of the Originator.--A mortgage originator, 
at the request of a consumer, may reduce the amount of compensation 
being received by such originator to offset settlement charges, other 
than settlement charges controlled by such originator, which are 
permitted under the Real Estate Settlement Procedures Act (12 U.S.C. 
2601-2617), that exceed the amounts previously disclosed on the good 
faith estimate of the settlement charges provided to such consumer 
pursuant to section 5(c) of such Act (12 U.S.C. 2604(c)), provided that 
the originator's compensation may not increase.''.
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