To amend the Truth in Lending Act to reform consumer mortgage practices and provide accountability for such practices, to provide certain minimum standards for consumer mortgage loans, and for other purposes.


Mortgage Reform and Anti-Predatory Lending Act - Amends the Truth in Lending Act to specify duty of care standards for originators of residential mortgages.

Prohibits steering incentives in connection with origination of mortgage loans.

Directs the federal banking agencies to prohibit or condition terms, acts, or practices relating to residential mortgage loans that are abusive, unfair, deceptive, predatory, inconsistent with reasonable underwriting standards, or not in the interest of the borrower.

Prescribes minimum standards for residential mortgage loans, including a mandatory net tangible benefit to the consumer for refinancing a residential mortgage loan.

Subjects a creditor to civil actions for rescission of a residential mortgage loan in the case of specified abuses. Limits the liability of good faith assignees or securitizers of a residential mortgage loan to loan rescission and certain other obligor costs.

Permits a consumer to assert a right to mortgage loan rescission as a defense to foreclosure.

Prohibits specified practices, including: (1) certain prepayment penalties; (2) single premium credit insurance; (3) mandatory arbitration (except for reverse mortgages); (4) mortgage loan provisions that waive a statutory cause of action by the consumer; and (5) mortgages with negative amortization.

Sets forth certain tenant protections in the case of foreclosure.

Increases civil money penalties for certain violations.

Exempts a creditor, assignee, or securitizer from liability and rescission in the case of borrower fraud or deception.

Requires a six-month notice before a hybrid adjustable rate mortgage is reset.

Requires federal banking agencies to prescribe regulations requiring any creditor that makes a residential mortgage loan that is not a qualified mortgage to retain an economic interest in a material portion of the credit risk if the creditor transfers, sells, or conveys such loanthat to a third party.

Prescribes mandatory disclosures in monthly statements for residential mortgage loans.

Directs the Secretary of Housing and Urban Development (HUD) to establish a grants program to provide legal assistance to low- and moderate-income homeowners and tenants regarding home ownership preservation, foreclosure prevention, and tenancy associated with home foreclosure.

Prohibits a high-cost mortgage from containing: (1) a scheduled payment that is more than twice as large as the average of earlier scheduled payments (balloon payments); or (2) a provision which authorizes creditor discretion to accelerate the indebtedness.

Prohibits a creditor from: (1) lending without due regard of the mortgagor's ability to repay; (2) recommending or encouraging default on an existing loan or other debt before, and in connection with, the actual or planned closing of a high-cost mortgage that refinances all or any portion of such existing loan or debt; (3) taking action in connection with a high-cost mortgage to structure a loan transaction as either an open-end credit plan or another form of loan in order to evade this Act; or (4) engaging in the unfair act or practice of flipping in connection with a high-cost mortgage.

Imposes certain limits and conditions on the charging of late payment charges.

Establishes pre-loan mortgagor counseling as a prerequisite to a high-cost mortgage.

Expand and Preserve Home Ownership Through Counseling Act - Establishes within HUD the Office of Housing Counseling.

Amends the Housing and Urban Development Act of 1968 to require the Secretary to: (1) prescribe counseling procedures; and (2) provide financial assistance to state and local governments and nonprofit organizations offering homeownership or rental counseling.

Directs the Secretary to study and report to Congress on the root causes of home loan defaults and foreclosures.

Amends the Real Estate Settlement Procedures Act of 1974 to: (1) direct the Secretary to prepare a mortgage information booklet to help applicants for federally related mortgage loans understand the nature and costs of real estate settlement services; and (2) set forth specified servicer prohibitions.

Amends the Truth in Lending Act to require a creditor, in connection with a consumer credit transaction secured by a first lien on a principal dwelling, to: (1) establish an escrow or impound account in a federally insured depository institution for the payment of taxes, hazard insurance, and other specified required periodic payments; and (2) provide specified disclosures to a consumer who waives the escrow service.

Directs the Secretary to study and report to certain congressional committees on the fraud and abuse potential of certain mortgage servicing practices.

Specifies property appraisal requirements.

Makes unlawful certain unfair and deceptive practices relating to a consumer credit transaction secured by the consumer's principal dwelling.

Amendsthe Financial Institutions Reform, Recovery, and Enforcement Act of 1989 with respect to appraisal subcommittee, appraiser independence, and approved appraiser education.

Directs the Comptroller General to study possible improvements in the appraisal process.

Amends the Equal Credit Opportunity Act to condition the requirement that a creditor furnish a mortgage applicant with a copy of all property appraisal reports upon a specific written request by the applicant.

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