Predatory Lending Consumer Protection Act of 2000
Latest action. Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: continuing resolutionA stopgap law funding the government at existing levels when the annual appropriations bills are not done by October 1.Read the full definition (opens a new tab) S2633-2635)
Predatory Lending Consumer Protection Act of 2000 - Amends the Truth in Lending Act guidelines governing certain credit transactions secured by the consumer's principal dwelling (high-cost mortgage), including: (1) the annual percentage rate of interest that shall be taken into account; (2) total points and fees incumbent upon the consumer at closing; and (3) the criteria defining a high-cost mortgage lender as creditor. (Sec. 3) Requires additional disclosures to the consumer that the consumer is contracting to pay a much higher loan than most people pay. Sets forth additional proscriptions against prepayment penalties. Prohibits all balloon payments (currently restricted to mortgages with a term of less than five years). Requires a creditor to make a case-by-case assessment of a consumer debtor's ability to pay that is based upon financial resources without taking into account equity in the dwelling which is the security for the credit. Subjects an assignee or holder of a high-cost mortgage which was made, arranged, or assigned by persons financing consumer home improvements to all the affirmative claims and defenses which the consumer may have against specified parties regarding such mortgage or home improvements. States that consummation of a high-cost mortgage that is not in compliance with this Act shall be treated as a failure to deliver requisite material disclosures. (Sec. 4) 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: (1) accelerating the debt in its sole discretion; (2) taking actions that encourage debtor's default; (3) charging a fee for mortgage modification or payment deferral unless such actions bestow a material benefit upon the consumer; (4) extending mortgage credit unless specified warnings have been furnished, including the availability of home ownership credit counseling services; and (5) requiring mandatory arbitration or any other nonjudicial procedure as a method for resolving any controversy or claims arising from the transaction. (Sec. 5) Declares that a consumer's waiver of the right of rescission shall not be effective if the creditor either advised or encouraged such waiver, or required it as a precondition for a transaction. (Sec. 6) Increases: (1) civil money penalties for creditor violations; and (2) the statute of limitations from one to three years for violations of this Act. (Sec. 7) 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 regulations or guidelines established by participants in the secondary mortgage market. (Sec. 8) Instructs the Board of Governors of the Federal Reserve System to publish implementing regulations.
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Introduced in Senate" stage on April 12, 2000. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on April 12, 2000: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S2633-2635)
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the Senate
- Passage by the House
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 106th Congress (1999-00), 580 of the 9,158 bills and joint resolutions introduced became law, about 6.3 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
PAUL SARBANES (D-MD) introduced it on April 12, 2000, and 4 members have since signed on as cosponsors.
They are 4 Democrats.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on April 12, 2000, 9694 days ago. The most recent recorded action was 9694 days ago, on April 12, 2000.
Measures do not carry over. Anything the 106th Congress has not finished by January 3, 2001 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- SenateIntroduced, no floor vote yet
- HouseAwaits Senate passage
- PresidentAwaits both chambers