To amend the Truth in Lending Act to improve upon the definitions provided for points and fees in connection with a mortgage transaction.
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 ``Consumer Mortgage Choice Act''.
SEC. 2. DEFINITION OF POINTS AND FEES.
(a) Amendment to Section 103 of TILA.--Section 103(bb)(4) of the Truth in Lending Act (15 U.S.C. 1602(bb)(4)) is amended-- (1) in subparagraph (B), by inserting ``, but not including compensation paid by a mortgage originator or a creditor to an individual person employed by the mortgage originator or creditor'' after ``transaction''; and (2) in subparagraph (C)-- (A) by striking ``an escrow for future payment of taxes'' and inserting ``the charges set forth under section 106(e)(3)''; (B) in clause (ii), by inserting ``, except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(7))'' after ``compensation''; and (C) by striking clause (iii) and inserting the following: ``(iii) the charge is-- ``(I) a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or ``(II) a charge set forth in section 106(e)(1).''. (b) Amendment to Section 129C of TILA.--Section 129C of the Truth in Lending Act (15 U.S.C. 1639c) is amended--...