H.R.3974 - Prohibit Predatory Lending Act108th Congress (2003-2004)
|Sponsor:||Rep. Miller, Brad [D-NC-13] (Introduced 03/16/2004)|
|Committees:||House - Financial Services|
|Latest Action:||House - 03/29/2004 Referred to the Subcommittee on Housing and Community Opportunity. (All Actions)|
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Summary: H.R.3974 — 108th Congress (2003-2004)All Information (Except Text)
Introduced in House (03/16/2004)
Prohibit Predatory Lending Act - Amends the Truth in Lending Act in connection with consumer credit cost disclosure to redefine: (1) the formula used to adjust certain percentage points in connection with a consumer credit transaction secured by the consumer's principal dwelling; and (2) related points and fees.
Sets forth a formula to calculate: (1) points and fees for open-end loans; and (2) bona fide discount points and prepayment penalties.
Revises requirements for: (1) prepayment penalties; (2) balloon payments; and (3) extension of credit without regard to consumer's payment ability.
Prohibits in connection with high-cost mortgages: (1) a creditor from recommending a default on an existing debt prior to and in connection with the closing of a high-cost mortgage that refinances all or any portion of such existing loan or debt; (2) specified late fees; (3) certain accelerations of debt; (4) certain evasions, structuring of transactions, and reciprocal arrangements; (5) certain modification and deferral fees; and (6) mandatory arbitration or other nonjudicial procedures.
Mandates pre-loan counseling as a prerequisite for a high-loan mortgage.
Revises guidelines governing creditor liability for correction of errors. Doubles civil money penalties for certain violations.
Extends to three years the statute of limitations for violation of certain statutory disclosure requirements.
Prohibits a creditor from knowingly or intentionally engaging in the unfair act or practice of flipping (the making of a loan or extension of credit to a consumer which refinances an existing mortgage when the new loan or credit extension does not have reasonable, tangible net benefit to the consumer, considering all of the circumstances, including the terms of both the new and the refinanced loans or credit, the cost of the new loan or credit, and the consumer's circumstances).
Prohibits single premium credit insurance.