Home Equity Lending Integrity Act
Sponsored By: Senator Merkley, Jeff [D-OR]
Introduced
Summary
This bill would bring "home equity investment loans" under the Truth in Lending Act by adding them to the law's definition of a residential mortgage loan. It also defines those loans as transactions where a consumer gets money or value in exchange for an interest in a home and a contingent or certain payment tied to the home's value, and it directs the Consumer Financial Protection Bureau to write rules applying section 130 to violations involving these loans.
Show full summary
- Consumers: Homeowners who exchange an interest in their dwelling for cash or value would be covered by the Truth in Lending Act as if they took a residential mortgage loan. This means those arrangements fall within the Act's rules.
- Lenders and investors: Firms offering these products would be subject to the Act and could face enforcement under section 130 once the Bureau issues implementing regulations.
- Regulators: The Consumer Financial Protection Bureau is required to prescribe regulations that apply section 130 to the defined home equity investment loans.
- Congressional intent: The bill includes a statement that the change is meant to reflect the law as it stands and not to make substantive changes in administration.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
New protections for home equity contracts
If enacted, the bill would add a new definition of "home equity investment loan" to the Truth in Lending Act. It would make those loans part of the Act's residential mortgage coverage. It would require the Consumer Financial Protection Bureau to write rules making statutory damages and remedies apply to these loans. Homeowners who get money or value in exchange for an interest in their home would be covered. That includes deals where you must pay an amount tied to the home's value.
Sponsors & CoSponsors
Sponsor
Merkley, Jeff [D-OR]
OR • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov