SB3522sam001 97TH GENERAL ASSEMBLY

Sen. Jacqueline Y. Collins

Filed: 3/14/2012

09700SB3522sam001 LRB097 19115 KTG 67418 a

AMENDMENT TO SENATE BILL 3522

AMENDMENT NO. ______. Amend Senate Bill 3522 on page 3 by replacing lines 21 through 24 with the following:

"junior mortgage, the average prime offer rate, as defined in Section 129C(b)(2)(B) of the federal Truth in Lending Act, for a comparable transaction as of the date on which the interest rate for the transaction is set, yield on U.S. Treasury securities having comparable periods of maturity to the loan maturity as of the fifteenth day of the month immediately preceding the month in which the application for the loan is received by the lender"; and

on page 4 by replacing lines 3 through 24 with the following:

"and fees payable in connection with the transaction, other than bona fide third-party charges not retained by the mortgage originator, creditor, or an affiliate of the mortgage originator or creditor, by the consumer at or before closing will exceed (1) the greater of 5% of the total loan amount in the case of a transaction for $20,000 or more or (2) the lesser of 8% of the total loan amount or $1,000 (or such other dollar amount as prescribed by federal regulation pursuant to the federal Dodd-Frank Act) in the case of a transaction for less than $20,000, except that, with respect to all transactions, bona fide loan discount points may be excluded as provided for in Section 35 of this Act. or $800. The $800 figure shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor. "High risk home loan" does not"; and

on page 6 by replacing lines 4 and 5 with the following:

"closing or financed directly or indirectly into the loan for any credit life, credit"; and

on page 10 by replacing lines 14 through 21 with the following:

"finances, directly or indirectly, any points and fees. No lender shall transfer, deal in, offer, or make a high risk home loan that finances any prepayment fee or penalty payable by the consumer in a refinancing transaction if the creditor or an affiliate of the creditor is the noteholder of the note being refinanced in excess of 6% of the total loan amount.".