S.1928 - Predatory Lending Consumer Protection Act of 2003108th Congress (2003-2004)
|Sponsor:||Sen. Sarbanes, Paul S. [D-MD] (Introduced 11/21/2003)|
|Committees:||Senate - Banking, Housing, and Urban Affairs|
|Latest Action:||Senate - 11/21/2003 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (All Actions)|
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Summary: S.1928 — 108th Congress (2003-2004)All Information (Except Text)
Predatory Lending Consumer Protection Act of 2003 - Amends the Truth in Lending Act guidelines for certain credit transactions secured by the consumer's principal dwelling (high-cost mortgage). Redefines a high-cost mortgage, lowering the maximum interest rates involved. Specifies additional costs, fees, and penalties included among points and fees. Defines bona fide discount points and benchmark rate.
Introduced in Senate (11/21/2003)
Requires additional disclosures that the consumer is contracting to pay a much higher loan than most people pay. Specifies additional prohibitions against prepayment penalties, except in certain circumstances. Prohibits all balloon payments. Prohibits the terms of a high-cost mortgage from including advance collection of a premium on a single premium basis for specified credit insurance products.
Restricts the number of points and amount of fees which a creditor may finance in connection with a high-cost mortgage. Prohibits certain creditors from financing the prepayment fees or penalties due from the consumer.
Prohibits a high-cost mortgage creditor from engaging in specified practices, including actions encouraging default and requiring arbitration or any other nonjudicial procedure as a method for resolving any controversy or claims arising from the transaction. Prescribes consumer counseling requirements.
Declares a consumer's waiver of the right of rescission ineffective if the creditor either advised, or encouraged such waiver, or required it as a precondition for a transaction.
Amends the Fair Credit Reporting Act to require that each high-cost mortgage creditor (including the successor creditor) report the debtor's complete payment history to certain consumer reporting agencies in accordance with specified regulations.