H.R. 3296 · 110th Congress
Mortgage Broker Transparency and Accountability Act of 2007
- Stage
- In committee
- Sponsor
- Christopher Murphy
- Introduced
- 2007-08-01
- Latest action
- 2008-01-11 · Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Summary
Mortgage Broker Transparency and Accountability Act of 2007 Amends the Truth in Lending Act to establish mandatory responsibilities, duties, and disclosures governing mortgage brokers.
Deems any mortgage broker to have a statutory agency relationship with the consumer subject to all requirements under state or federal law.
Sets forth disclosure requirements, including disclosure of: (1) the risks and benefits of each home mortgage loan product; (2) possible payment increases at the time of any resetting of rate; (3) the extent of any prepayment penalties and balloon payments; and (4) the consumer's responsibilities to pay taxes and insurance with respect to such product.
Requires mortgage brokers to maintain a bond that inures, first, to the benefit of any consumer who has any claim against the mortgage broker under this Act.
Prohibits: (1) mortgage brokers from steering a consumer to a higher-cost mortgage than one for which the consumer would otherwise qualify; and (2) waiver by a consumer of the requirements imposed upon a mortgage broker under this Act.
Requires disclosure of specified affiliations on the part of persons involved in the home mortgage loan process.