H.R.5037 - Residential Mortgage Credit Fairness Act of 1992102nd Congress (1991-1992)
|Sponsor:||Rep. Gallo, Dean A. [R-NJ-11] (Introduced 04/30/1992)|
|Committees:||House - Banking, Finance, and Urban Affairs|
|Latest Action:||House - 05/15/1992 Referred to the Subcommittee on Consumer Affairs and Coinage. (All Actions)|
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Summary: H.R.5037 — 102nd Congress (1991-1992)All Information (Except Text)
Introduced in House (04/30/1992)
Residential Mortgage Credit Fairness Act of 1992 - Amends the Truth in Lending Act to prohibit a creditor from: (1) imposing terms and conditions for a residential mortgage transaction which are less favorable to the consumer than the terms and conditions which were originally disclosed to the consumer; or (2) limiting the availability or effectiveness of such terms and conditions to a specified period. Allows an exception to such requirements if: (1) the disclosure contains a clear and conspicuous statement that such terms and conditions are subject to change; or (2) any delay in consummating the transaction is due to an unreasonable delay caused by the consumer.
Requires that any disclosure made in connection with a residential mortgage shall: (1) be mailed or delivered before the earlier of the date on which the credit is extended or three days after the creditor receives the consumer's application; and (2) include a statement of the rights and duties of the creditor and the consumer and any form to be used by the consumer to exercise the right to withdraw the application.
Allows a consumer to withdraw a mortgage application without incurring any obligation to the creditor (other than certain reasonable fees) if the consumer provides the creditor written notice within three days after receiving the required disclosure statement from the creditor.
Specifies that, for purposes of such required disclosure statements, the term "finance change" shall include any fee imposed by the creditor for any such extension of credit.
Increases the civil penalty for failure to make a required disclosure for a residential mortgage from a minimum of $100 and a maximum of $1,000 to a minimum of $1,000 and a maximum of $10,000.