Text: S.912 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in Senate (04/28/2009)

1st Session
S. 912

To prohibit yield spread premiums, and for other purposes.


April 28, 2009

Mr. Merkley introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs


To prohibit yield spread premiums, 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 “Transparency for Homeowners Act of 2009”.

SEC. 2. Prohibition on yield spread premiums.

(a) In general.—No person shall provide, and no mortgage originator shall receive, directly or indirectly, any compensation that is based on, or varies with, the terms of any home mortgage loan (other than the amount of the loan).

(b) Definitions.—For purposes of this Act—

(1) the term “home mortgage loan” means a loan secured by a mortgage or lien on residential property;

(2) the term “mortgage originator” means any creditor or other person, including a mortgage broker or bank lender, who, for compensation or in anticipation of compensation, engages either directly or indirectly in the—

(A) acceptance of applications for home mortgage loans;

(B) solicitation of home mortgage loans on behalf of borrowers;

(C) negotiation of terms or conditions of home mortgage loans on behalf of borrowers or lenders; or

(D) negotiation of sales of existing home mortgage loans to institutional or noninstitutional lenders; and

(3) the term “residential property” means a 1–4 family, owner-occupied residence, including a 1-family unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.