Predatory Lending Deterrence Act

Summary

Predatory Lending Deterrence Act - Amends the Truth in Lending Act with respect to certain credit transactions secured by the consumer's principal dwelling (high-cost mortgage) to revise prescriptions governing the annual percentage rate and total points and fees. (Sec. 4) Sets forth proscriptions and limitations governing high cost home loans including: (1) a proscription against balloon payments; (2) a proscription against a repayment schedule whose regular periodic payments do not cover the full amount of interest due (causing the principal balance to increase); (3) a proscription against prepaid payments; (4) mandatory creditor consideration of debtor's repayment ability; (5) restrictions on creditor's payments under home improvement contracts; (6) a proscription against creditor's sole discretion to accelerate debt repayment; (7) a proscription against modification or deferral fees; (8) a proscription against financing of fees or charges; and (9) a proscription against creditor's benefit from refinancing an existing loan with a new loan. (Sec. 6) Sets forth additional requirements and limitations for all mortgages, including prohibiting a residential mortgage transaction creditor from: (1) imposing a penalty for prepayment of all or part of the principal; (2) encouraging default on a prior debt or applying a higher post default interest rate mortgage; and (3) financing insurance premiums under the residential mortgage transaction extension of credit. (Sec. 7) Subjects violations of this Act to certain penalties of the Bank Holding Company Act of 1956 and to the authority of the Board of Governors of the Federal Reserve System. Subjects certain creditor violations to Federal Trade Commission Act penalties with respect to unfair or deceptive practices.

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Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 12 April 2000

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• Introduced in Senate (PDF)

  Introduced in Senate · EN · 12 April 2000

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• Introduced in Senate

  summary · EN · 12 April 2000

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