Predatory Lending Consumer Protection Act of 2002

Hozzl · 2023-01-16T01:47:38Z

Explore the details of Senate Bill 2438 Predatory Lending Consumer Protection Act of 2002 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

1/16/2023, 1:47 AM

Congressional Summary of S 2438

Predatory Lending Consumer Protection Act of 2002 - Amends the Truth in Lending Act guidelines for certain credit transactions secured by the consumer's principal dwelling (high-cost mortgage).

Requires additional disclosures that the consumer is contracting to pay a much higher loan than most people pay. Specifies additional prohibitions against prepayment penalties, except in certain circumstances. Prohibits all balloon payments. 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 engaging in specified practices, including requiring arbitration or any other nonjudicial procedure as a method for resolving any controversy or claims arising from the transaction.

Declares a consumer's waiver of the right of rescission ineffective if the creditor either advised, or encouraged such waiver, or required it as a precondition for a transaction.

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 specified regulations.

Read the Full Bill

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Current Status of Bill S 2438

Bill S 2438 is currently in the status of Bill Introduced since May 1, 2002. Bill S 2438 was introduced during Congress 107 and was introduced to the Senate on May 1, 2002. Bill S 2438's most recent activity was Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of May 1, 2002

Bipartisan Support of Bill S 2438

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill S 2438

Primary Policy Focus

Finance and Financial Sector

Potential Impact Areas

Civil actions and liabilityCollection of accountsCommerceCommercial arbitrationConsumer creditConsumer educationConsumer protectionCredit insuranceCredit life insuranceDebtor and creditorFeesHousing and Community DevelopmentLawLoan defaultsMortgage interest ratesMortgage loansMortgagesRestrictive trade practices

Alternate Title(s) of Bill S 2438

Predatory Lending Consumer Protection Act of 2002A bill to amend the Truth in Lending Act to protect consumers against predatory practices in connection with high cost mortgage transactions, to strengthen the civil remedies available to consumers under existing law, and for other purposes.Predatory Lending Consumer Protection Act of 2002

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