,,ii #aah? ,,congress #b;d ,session ,s4 #cgbj ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #a1 #bjbd,ms4 ,smi? 7= h]self & ,ms4 ,lummis7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to am5d ! ,consum] ,cr$it ,protection ,act to provide = additional requirem5ts = l& in/allm5t contract transactions4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,pres]v+ ,pa?ways to ,home[n]%ip ,act ( #bjbd4 #b4 ,l& in/allm5t contracts ,! ,consum] ,cr$it ,protection ,act 7#ae ,u4,s4,c4 #afja et seq47 is am5d$ by add+ at ! end ! foll[+3 ,x ,l& in/allm5t contracts #ajja4 ,f9d+s & purposes 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,l& in/allm5t contracts1 :5 us$ to pur*ase a home1 are a =m ( consum] cr$it transaction "u ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afja et seq47 9 t ! contracts create a debt1 :i* is ! pur*ase price1 & def] ! paym5t ( ! debt4 7#b7 ,! lack ( recordation ( l& in/allm5t contracts 9 real e/ate records subjects buy]s to ! risk ( o!r cr$itors sup]s$+ _! int]e/ 9 ! l& despite ! ext5sive inve/m5t ( ! buy] 9 ! home4 7#c7 ,! frequ5cy ( use ( l& in/allm5t contracts v>ies by region4 ,/ates diff] 9 treatm5t ( h[ ! contracts are record$ & ! use ( =feiture & =eclosure to t]m9ate ! contracts4 ,buy]s1 !re=e1 are af=d$ diff]5t protections because ( ! location ( ! prop]ty !y pur*ase1 mak+ ?is an issue t ,congress mu/ address4 7#d7 ,l& in/allm5t contracts involve int]/ate comm]ce because cr$it is (t5 ext5d$ across ,/ate l9es by ! sell]s or to ! sell]s to f9ance ! acquisition ( ! home 9 ord] to (f] x = sale ?r\gh a l& in/allm5t contract4 ,buy]s ent]+ into l& in/allm5t contracts are frequ5tly solicit$ ov] ! phone1 ?r\gh ! mails1 ?r\gh int]net adv]tisem5ts1 & ?r\gh o!r electronic communications4 ,buy]s use int]/ate comm]ce to ent] into ! transaction1 to make paym5ts on ! transaction1 & to obta9 p>ts & s]vices requir$ to make repairs to ! home z contemplat$ by ! transaction4 7b7 ,purposes ,! purposes ( ?is title are-- 7#a7 to ensure basic consum] protections 9 l& in/allm5t contract transactions to ensure t buy]s h _! int]e/s 9 ! home protect$ f o!r cr$itors or claimants 9 ! real e/ate m>ket2 & 7#b7 to protect consum]s aga9/ unfair =feitures ( equity aft] mak+ paym5ts ?r\gh a consum] cr$it transaction4 #ajjb4 ,def9itions ,9 ?is title3 7#a7 ,cov]$ l& in/allm5t contract transaction ,! t]m cov]$ l& in/allm5t contract transaction means a sale ( resid5tial real prop]ty involv+ a l& in/allm5t contract1 if ! resid5tial real prop]ty has n be5 ! pr9cipal place ( resid5ce ( ! sell] dur+ ! prec$+ #b ye>s4 7#b7 ,l& in/allm5t contract ,! t]m l& in/allm5t contract means an agreem5t "u :i*-- 7,a7 a sell] agrees to sell an int]e/ 9 real prop]ty to a pur*as]2 7,b7 ! pur*as] agrees to pay ! pur*ase price 9 in/allm5ts2 & 7,c7 ! sell] reta9s title to ! real prop]ty z security = ! obligation ( ! pur*as] "u ! agreem5t4 7#c7 ,sell] ,! t]m sell] means-- 7,a7 an individual or entity sell+ an int]e/ 9 resid5tial real prop]ty2 7,b7 any p>ty relat$ to ! sell]1 z def9$ by section #bfg7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7,c7 any assignee or transf]ee ( a sell] n describ$ 9 subp>agraph 7,b74 #ajjc4 ,gov]nance ( l& in/allm5t contract transactions 7a7 ,9 g5]al ,! ,/ates %all1 n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is title1 enhance consum] protection = cov]$ l& in/allm5t contract transactions by enact+ ! requirem5ts describ$ 9 subsections 7b7 & 7c74 7b7 ,recordation 7#a7 ,9 g5]al ,! sell] 9 a cov]$ l& in/allm5t contract transaction %all record ! executory contract ) ! (fice :]e de$s are record$ n lat] ?an #e days aft] ! date on :i* ! contract is execut$4 7#b7 ,/ates 7,a7 ,9 g5]al ,! ,/ates %all1 by law 7includ+ regulations7 det] noncompliance ) ! recordation requirem5t by-- 7i7 prohibit+ ! sell] f compell+ p]=mance ( ! l& in/allm5t contract or ex]cis+ rem$ies pursuant to ! contract if ! contract is n record$ 9 accordance ) p>agraph 7#a72 7ii7 provid+ ! buy] ! "r to resc9d ! l& in/allm5t contract & receive a refund = any paym5ts made to ! sell] 9 connection ) ! l& in/allm5t contract transaction2 7iii7 provid+ t any violation ( ! requirem5ts impos$ 9 compliance ) ?is p>agraph %all give rise to liability 9 ! same mann] & by ! same means z "u p>agraphs 7#a7 & 7#b7 ( section #adj7;a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afdj7;a772 & 7iv7 provid+ au?ority to en=ce compliance ) ! recordation requirem5t to an appropriate en=cem5t body4 7,b7 ,additional p5alties = noncompliance ,no?+ 9 subp>agraph 7,a7 %all prev5t a ,/ate f impos+ additional p5alties = noncompliance if ! p5alties are great] ?an ! pot5tial h>m a pur*as] may suff]1 or ! ga9 a sell] may realize1 z a result ( ! failure ( ! sell] to record a contract 9 accordance ) p>agraph 7#a74 7c7 ,protection ( pur*as]'s equity ,if a pur*as] defaults1 ! sell] may liquidate ! int]e/ ( ! pur*as] 9 ! prop]ty pursuant to ! resid5tial mortgage =eclosure law ( ! ,/ate1 includ+ all notice & curative requirem5ts !re94 ,! sell] may n en=ce ! rem$y ( rescission or =feiture & no su* rem$y )9 a l& in/allm5t contract %all be b9d+ on ! pur*as]4 7d7 ,regulations ,if ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection det]m9es t a ,/ate does n h ! requirem5ts describ$ 9 subsections 7b7 & 7c7 9 effect by law 7includ+ regulations7 on ! date t is #b ye>s aft] ! date ( enactm5t ( ?is title1 ! ,director %all adopt rules applicable to t ,/ate t a*ieve ! purposes ( subsection 7a7 t are consi/5t ) ! /&>ds adopt$ 9 ! ,/ates t h ! requirem5ts ( subsections 7b7 & 7c7 9 effect4 ,! ,director may ext5d ! deadl9e "u ?is subsection = n m ?an #a ye> if a ,/ate has %[n a good fai? ef=t t[>ds implem5tation4 ,! ,director may promulgate regulations to monitor ,/ate compliance ) ?is section4 7e7 ,applicability ,! requirem5ts describ$ 9 subsections 7b7 & 7c7 %all only apply to cov]$ l& contract transactions ent]$ into aft] su* requirem5ts are 9 effect by law 7includ+ regulations74 4