- Not enactedThe President has not signed this bill
- The senate has not voted
Committee on Banking, Housing, and Urban Affairs
- senate Committees
- The house Passed March 6th, 2018Passed by Voice Vote
Committee on Financial ServicesIntroducedApril 28th, 2017
- house Committees
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Portfolio Lending and Mortgage Access Act
To amend the Truth in Lending Act to provide a safe harbor from certain requirements related to qualified mortgages for residential mortgage loans held on an originating depository institution's portfolio, and for other purposes.
Portfolio Lending and Mortgage Access Act (Sec. 2) This bill amends the Truth in Lending Act to allow a depository institution or credit union with assets below a specified threshold to forgo certain ability-to-pay requirements regarding residential mortgage loans. Specifically, those requirements are waived if a loan: (1) is originated by and continuously retained by the institution, (2) complies with requirements regarding prepayment penalties and points and fees, and (3) does not have negative amortization or interest-only terms. Furthermore, for such requirements to be waived, the institution must consider and verify the debt, income, and financial resources of the consumer. The bill also provides for circumstances in which such requirements shall be waived with respect to a loan that is transferred: (1) by reason of bankruptcy or failure of the originating institution, (2) to a similar institution, (3) in the event of a merger, or (4) to a wholly owned subsidiary of the institution.
Who sits around thinking of bills to cause the collapse of our economy? Weakening Dodd-Frank came close to destroying the entire economy across the earth – much less American economy – so now we wanna try that again? Safe harbor from ethics? Safe harbor from the good of all as opposed to the profits of the privileged few? This is an appalling bill that is wrong at every level.
Have you no memory? Weakening the Dodd Frank and the Truth in a Lending legislation enacted after the Great Recession is a BAD idea! We the People paid for it in the bailouts, lower equity in our homes, lost jobs and loss of consumer confidence. Greed caused it and by relaxing regulations you will give banks and lenders the ‘green light’ to revert to the same lending practices that harm consumers and add to their ‘bottom line’. VOTE NO!
Ability to pay is not the main concern for a depository institution when it comes to residential mortgage loans. It is the mortgage lender’s and home buyer’s responsibility to become qualified for such loans, and the banks responsibility to loan the money to the buyer.