S Amdt 3962 - Home Loan Regulation Modifications - Key Vote
National Key Votes
- S Amdt 3826 - Consumer Financial Protection Division Within The FDIC
- S Amdt 3839 - Termination of Fannie Mae and Freddie Mac Conservatorships
- S Amdt 3938 - Study on Ending the Conservatorships of Fannie Mae and Freddie Mac
- S Amdt 3760 - Federal Reserve Audit
- S Amdt 3816 - Derivatives Regulation Modifications
- S Amdt 3962 - Home Loan Regulation Modifications
- S Amdt 3955 - Establishing New Mortgage Underwriting Requirements and Eliminating a Risk Retention Requirement
- S Amdt 3991 - Credit Rating Agency Board
- S Amdt 3832 - Establishing Bankruptcy Process for Non-bank Financial Institutions
- S Amdt 3989 - Debit Card Fee Regulations
- S Amdt 3987 - Bureau of Consumer Financial Protection Termination
- S Amdt 4051 - Prohibiting Funding of State and Local Governments to Prevent Defaulting on Debt
- S Amdt 4034 - Federal Preemption Over State Consumer Financial Laws
- S Amdt 4071 - Amending State Authority to Enforce Consumer Financial Regulations
- S Amdt 4114 - Credit Default Swap Regulations
- S Amdt 4072 - Inspector General Appointment Modification
- S Amdt 3746 - Allowing States to Limit Credit Card Interest Rates
Amendment - Amendment Adopted (Senate) (63-36) - May 12, 2010(Key vote)
Title: Home Loan Regulation Modifications
Vote to adopt an amendment to S Amdt 3739 to S 3217 that increases regulations on mortgage loans, including a requirement that the creditor determine that the borrower has a "reasonable ability" to repay the loan, based on "verified and documented" information.
- Prohibits creditors from issuing mortgage loans unless a determination can be made that the borrower has a "reasonable ability" to repay the loan and all applicable taxes, insurance, and assessments, and specifies that such determination shall consider the following (Sec. 1075):
- Credit history;
- Current income;
- Expected income;
- Current obligations;
- Debt-to-income ratio, or the residual income the consumer will have after paying non-mortgage debt and mortgage-related obligations;
- Employment status; and
- Other financial resources other than equity in the dwelling or property that secures repayment of the loan.
- Requires creditors to verify the aforementioned information by reviewing the following (Sec. 1075):
- W-2 forms;
- Tax returns;
- Payroll receipts;
- Financial institution records; or
- Other third-party documents that provide "reasonably reliable" evidence of the consumer's income or assets.
- Specifies that creditors are presumed to be in compliance with the "reasonable ability to repay" requirement if the aforementioned requirements have been met and the creditor has determined the borrower's ability to repay using the maximum rate permitted under the loan during the first 5 years following consummation and the establishment of a payment schedule (Sec. 1075).
- Specifies that the aforementioned presumption of compliance shall not be applied to a loan for which the any of the following criteria are met (Sec. 1075):
- The regular periodic payments for the loan may result in an increase of the principle balance or allow the consumer to defer repayment of principal;
- The terms result in a scheduled payment that is more than twice as large as the average of earlier scheduled payments ("balloon payments"); or
- The points and fees (15 USC 1602(aa)(4)) exceed 3 percent of the total loan amount, unless, for the purposes of calculating such points and fees, the totals attributable to any premium for mortgage guarantee insurance provided by a Federal or state agency shall exclude any amount of points and fees greater than 1 percent of the total loan amount.
- Exempts the following from all of the above requirements (Sec. 1074):
- Temporary loans ("bridge loans") with terms of 12 months or less; and
- Reverse mortgages.
- Prohibits compensating a loan originator for any mortgage loan if the compensation varies based on the terms of the loan, other than the amount of the principal (Sec. 1074).
Amendment - Introduced (Senate) - May 12, 2010
Title: Home Loan Regulation Modifications
- Mark Begich (AK - D)
- Barbara Boxer (CA - D)
- Scott P. Brown (MA - R) (Out Of Office)
- Christopher J. 'Chris' Dodd (CT - D) (Out Of Office)
- Al Franken (MN - D)
- John Forbes Kerry (MA - D) (Out Of Office)
- Amy Klobuchar (MN - D)
- Carl Levin (MI - D)
- Charles E. 'Chuck' Schumer (NY - D)
- Olympia Jean Snowe (ME - R) (Out Of Office)