Home Affordability Through Mortgage Simplification Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9459 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 9459

To amend the Truth in Lending Act to modernize disclosure requirements,
     establish materiality standards and safe harbors for mortgage
 disclosures, simplify waiting period requirements, expand tolerances
      for annual percentage rate accuracy, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 2026

Mr. Fitzgerald introduced the following bill; which was referred to the
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

To amend the Truth in Lending Act to modernize disclosure requirements,
     establish materiality standards and safe harbors for mortgage
 disclosures, simplify waiting period requirements, expand tolerances
      for annual percentage rate accuracy, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Affordability Through Mortgage
Simplification Act''.

SEC. 2. REGULATORY REQUIREMENTS RELATED TO CERTAIN MORTGAGE
              TRANSACTIONS.

    Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended
by adding at the end the following:
    ``(g) Regulatory Requirements Related to Certain Mortgage
Transactions.--
            ``(1) Aggregate variance standard for estimated closing
        costs.--
                    ``(A) In general.--For the purposes of meeting the
                good faith loan estimate described in section 1026.19
                of title 12, Code of Federal Regulations (or any
                successor regulation), a creditor shall be deemed to
                have provided a good faith loan estimate of closing
                costs if the aggregate amount of closing costs the
                borrower must pay at consummation does not exceed the
                aggregate amount disclosed under subsection (a)(17) by
                more than the greater of--
                            ``(i) $500; or
                            ``(ii) 5 percent of all third-party fees
                        and charges, excluding origination charges.
                    ``(B) Individual fee variance.--No violation shall
                be found based solely on an individual fee variance
                that does not cause the aggregate variance described in
                paragraph (1) to be exceeded.
                    ``(C) Origination charges.--
                            ``(i) In general.--Origination charges
                        shall not be included in calculating the
                        aggregate variance under this subsection and
                        remain subject to zero-tolerance limitations
                        applicable under regulations issued pursuant to
                        this Act.
                            ``(ii) De minimis exception.--The zero-
                        tolerance limitations described in clause (i)
                        shall not apply to bona fide, non-intentional
                        clerical or typographical errors that--
                                    ``(I) are not more than $25;
                                    ``(II) the creditor documents such
                                error; and
                                    ``(III) expressly preserves the
                                consumer's right to restitution for any
                                resulting financial harm.
            ``(2) Waiting period reset.--The waiting period for
        corrected disclosures as described in section 1026.19(a)(2) of
        title 12, Code of Federal Regulations (or any successor
        regulation), shall be reset only if--
                    ``(A) the interest rate increases by more than
                0.125 percentage points;
                    ``(B) the loan product changes; or
                    ``(C) a prepayment penalty is added.
            ``(3) Consumer waiver of disclosure period.--A consumer may
        waive the 3-day closing disclosure waiting period for a
        corrected disclosure as described in section 1026.19(f)(2)(iI)
        of title 12, Code of Federal Regulations (or any successor
        regulation).
            ``(4) Safe harbor for revised mortgage loan estimates.--
                    ``(A) In general.--A creditor may issue not more
                than 2 revised loan estimates for non-material changes
                that do not increase the interest rate, change the loan
                product type, or increase any origination charge,
                without demonstrating a changed circumstance under
                section 1026.19(e)(3)(iv) of title 12, Code of Federal
                Regulations (or any successor regulation).
                    ``(B) Delivery period.--Any revised loan estimate
                as described in subparagraph (A) shall be delivered not
                later than 7 days prior to consummation.
                    ``(C) Tolerance reset.--Any revised loan estimate
                as described in subparagraph (A) shall reset tolerances
                only for fees affected by the specific non-material
                change prompting the revision.
            ``(5) Reliance on settlement agents.--
                    ``(A) In general.--A creditor shall not be liable
                for inaccuracies in a closing disclosure described in
                section 1026.19 of title 12, Code of Federal
                Regulations (or any successor regulation), attributable
                solely to a settlement agent if the creditor--
                            ``(i) exercised reasonable diligence in
                        selecting the agent; and
                            ``(ii) maintained reasonable oversight
                        procedures.
                    ``(B) No limitation on right to restitution.--
                Nothing in this subsection shall limit a consumer's
                right to restitution for actual financial harm with
                respect to inaccuracies in a closing disclosure.
                    ``(C) Rules related to terms.--Not later than 180
                days after the date of the enactment of this paragraph,
                the Bureau shall issue rules to define `reasonable
                diligence' and `reasonable oversight procedures' as
                such terms are used in subparagraph (A), including
                standards for vendor management, monitoring, and error
                detection systems.
            ``(6) Rulemaking.--Not later than 180 days after the date
        of the enactment of this subsection, the Bureau shall issue a
        rule to revise section 1026.19 of title 12, Code of Federal
        Regulations, to ensure consistency between such section and
        this subsection.''.

SEC. 3. APR TOLERANCE EXPANSION AND CURE.

    Section 107(c) of the Truth in Lending Act (15 U.S.C. 1606(c)) is
amended to read as follows:
    ``(c) Accuracy of Annual Percentage Rate.--
            ``(1) In general.--The annual percentage rate is accurate
        for the purposes of this title if it does not vary from the
        actual rate by more than 0.125 percentage points.
            ``(2) Curing inaccuracy.--A creditor may cure an inaccurate
        annual percentage rate through post-consummation adjustment and
        restitution that ensures the consumer pays no more over the
        life of the loan than would have been paid at the disclosed
        rate.''.

SEC. 4. RELIANCE ON GUIDANCE ISSUED BY THE BUREAU OF CONSUMER FINANCIAL
              PROTECTION.

    Section 130 of the Truth in Lending Act (15 U.S.C. 1640) is amended
by adding at the end the following:
    ``(m) Reliance on Bureau Guidance.--No creditor shall be liable for
a violation arising from an act done or omitted in good-faith reliance
on guidance issued by the Bureau.
    ``(n) Notice and Opportunity To Cure.--
            ``(1) First time violation.--No civil penalty may be
        imposed for a first time violation under this title unless the
        creditor fails to cure such violation within 60 days after
        receiving written notice from a Federal or State regulator.
            ``(2) Restitution and private remedies for consumer.--
        Nothing in this subsection affects a consumer's right to
        restitution or private remedies.
            ``(3) First time violation defined.--In this subsection,
        the term `first time violation' means the first written notice
        from a Federal or State regulator that identifies a specific
        violation under this title, for which--
                    ``(A) no prior notice of the same violation issued
                within the preceding 36-month period; and
                    ``(B) a single pattern or practice affecting
                multiple loans constitutes one violation for purposes
                of this subsection if arising from the same underlying
                error.''.
                                 <all>