[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3484 Introduced in Senate (IS)]
112th CONGRESS
2d Session
S. 3484
To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide an
exception from the definition of loan originator for certain loans made
with respect to manufactured homes, to amend the Truth in Lending Act
to modify the definition of a high-cost mortgage, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 2, 2012
Mr. Brown of Ohio introduced the following bill; which was read twice
and referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide an
exception from the definition of loan originator for certain loans made
with respect to manufactured homes, to amend the Truth in Lending Act
to modify the definition of a high-cost mortgage, 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 ``Preserving Access to Manufactured
Housing Act''.
SEC. 2. MODIFICATIONS TO DEFINITIONS.
(a) Loan Originator Definition.--Section 1503(4) of the S.A.F.E.
Mortgage Licensing Act of 2008 (12 U.S.C. 5102(4)) is amended--
(1) in subparagraph (A)--
(A) in clause (iii), by striking ``and'' at the
end;
(B) in clause (iv), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following new clause:
``(v) does not include an individual or
entity that is a seller of manufactured homes,
unless such individual or entity is engaged in
the business of a loan originator or receives
compensation or gain for engaging in activities
described under clause (i) that is in excess of
any compensation or gain received in a
comparable cash transaction.''; and
(2) by adding at the end the following:
``(E) Engaged in the business of a loan
originator.--For purposes of this paragraph, the term
`engaged in the business of a loan originator' means to
perform loan originator activities described under
subparagraph (A)(i) as a regular course of trade or
business in exchange for compensation or gain paid
solely for engaging in the sale or distribution of
residential mortgage loans.''.
(b) High-Cost Mortgage Definition.--Section 103 of the Truth in
Lending Act (15 U.S.C. 1602) is amended--
(1) by redesignating subsection (aa) (relating to
disclosure of greater amount or percentage), as so designated
by section 1100A of Public Law 111-203, as subsection (bb);
(2) by redesignating subsection (bb) (relating to high-cost
mortgages), as so designated by section 1100A of Public Law
111-203, as subsection (aa), and moving such subsection to
immediately follow subsection (z); and
(3) in subsection (aa)(1)(A), as so redesignated--
(A) in clause (i)(I)--
(i) by striking ``(8.5 percentage points,
if the dwelling is personal property and the
transaction is for less than $50,000)''; and
(ii) by striking ``or'' at the end;
(B) in clause (i)(II), by adding ``or'' at the end;
(C) in clause (i), by adding at the end the
following:
``(III) by a first mortgage on a
consumer's principal dwelling that is
considered personal property (or is a
consumer credit transaction that does
not include the purchase of real
property on which a dwelling is to be
placed), the annual percentage rate at
consummation of the transaction will
exceed the average prime offer rate, as
defined in section 129C(b)(2)(B), for a
comparable transaction, by more than--
``(aa) 8.5 percentage
points, in the case of a
transaction in an amount of
$50,000 or more, but less than
$75,000 (as such amounts are
adjusted by the Bureau to
reflect the change in the
Consumer Price Index);
``(bb) 10.5 percentage
points, in the case of a
transaction in an amount of
more than $30,000, but less
than $50,000 (as such amounts
are adjusted by the Bureau to
reflect the change in the
Consumer Price Index); or
``(cc) 12.5 percentage
points, in the case of a
transaction in an amount of
$30,000 or less (as such amount
is adjusted by the Bureau to
reflect the change in the
Consumer Price Index), or a
higher percentage established
by the Bureau not to exceed
14.5 percentage points in such
cases, if the Bureau determines
that the lower rate would
restrict access to credit and
that raising the rate would not
have a detrimental impact on
consumer protection.''; and
(D) in clause (ii)--
(i) in subclause (I), by striking ``or'' at
the end; and
(ii) by adding at the end the following:
``(III) in the case of a
transaction for less than $75,000 in
which the dwelling is considered
personal property (or is a consumer
credit transaction that does not
include the purchase of real property
on which a dwelling is to be placed)
the greater of 5 percent of the total
transaction amount or $3,000; or''.
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