Bill Summary & Status for the 107th Congress

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S.2438
Title: A bill to amend the Truth in Lending Act to protect consumers against predatory practices in connection with high cost mortgage transactions, to strengthen the civil remedies available to consumers under existing law, and for other purposes.
Sponsor: Sen Sarbanes, Paul S. [MD] (introduced 5/1/2002)      Cosponsors: 15
Latest Major Action: 5/1/2002 Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Jump to: Titles, Status, Committees, Related Bill Details, Amendments, Cosponsors, Summary
TITLE(S):  (italics indicate a title for a portion of a bill)
STATUS: (color indicates Senate actions)
5/1/2002:
Introductory remarks on measure. (CR S3629)
5/1/2002:
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
COMMITTEE(S):
RELATED BILL DETAILS:

***NONE***

AMENDMENT(S):

***NONE***

COSPONSORS(15), ALPHABETICAL [followed by Cosponsors withdrawn]:     (Sort: by date)

Sen Boxer, Barbara - 5/1/2002 [CA] Sen Carnahan, Jean - 6/27/2002 [MO]
Sen Clinton, Hillary Rodham - 5/1/2002 [NY] Sen Corzine, Jon - 5/1/2002 [NJ]
Sen Dayton, Mark - 5/1/2002 [MN] Sen Dodd, Christopher J. - 5/1/2002 [CT]
Sen Durbin, Richard J. - 5/1/2002 [IL] Sen Kennedy, Edward M. - 5/1/2002 [MA]
Sen Kerry, John F. - 5/1/2002 [MA] Sen Levin, Carl - 5/1/2002 [MI]
Sen Mikulski, Barbara A. - 5/1/2002 [MD] Sen Schumer, Charles E. - 5/1/2002 [NY]
Sen Stabenow, Debbie - 5/1/2002 [MI] Sen Torricelli, Robert G. - 5/1/2002 [NJ]
Sen Wellstone, Paul D. - 5/1/2002 [MN]

SUMMARY AS OF:
5/1/2002--Introduced.

Predatory Lending Consumer Protection Act of 2002 - Amends the Truth in Lending Act guidelines for certain credit transactions secured by the consumer's principal dwelling (high-cost mortgage).

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 amount of points and 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 requiring arbitration or any other nonjudicial procedure as a method for resolving any controversy or claims arising from the transaction.

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 mandate 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.