Page 767

originator to vary based on the terms of the loan (other than the amount of the principal); ‘‘(B) limiting or affecting the amount of compensation received by a creditor upon the sale of a consummated loan to a subsequent purchaser; ‘‘(C) restricting a consumer’s ability to finance, at the option of the consumer, including through principal or rate, any origination fees or costs permitted under this sub- section, or the mortgage originator’s right to receive such fees or costs (including compensation) from any person, subject to paragraph (2)(B), so long as such fees or costs do not vary based on the terms of the loan (other than the amount of the principal) or the consumer’s decision about whether to finance such fees or costs; or ‘‘(D) prohibiting incentive payments to a mortgage originator based on the number of residential mortgage loans originated within a specified period of time.’’.

SEC. 1404. LIABILITY.
Section 129B of the Truth in Lending Act is amended by
inserting after subsection (c) (as added by section 1403) the fol-
lowing new subsection:
‘‘(d) LIABILITY FOR VIOLATIONS.—
‘‘(1) IN GENERAL.—For purposes of providing a cause of Applicability.
action for any failure by a mortgage originator, other than
a creditor, to comply with any requirement imposed under
this section and any regulation prescribed under this section,
section 130 shall be applied with respect to any such failure
by substituting ‘mortgage originator’ for ‘creditor’ each place
such term appears in each such subsection.
‘‘(2) MAXIMUM.—The maximum amount of any liability of
a mortgage originator under paragraph (1) to a consumer for
any violation of this section shall not exceed the greater of
actual damages or an amount equal to 3 times the total amount
of direct and indirect compensation or gain accruing to the
mortgage originator in connection with the residential mortgage
loan involved in the violation, plus the costs to the consumer
of the action, including a reasonable attorney’s fee.’’.

SEC. 1405. REGULATIONS.
(a) DISCRETIONARY REGULATORY AUTHORITY.—Section 129B of
the Truth in Lending Act is amended by inserting after subsection
(d) (as added by section 1404) the following new subsection:
‘‘(e) DISCRETIONARY REGULATORY AUTHORITY.—
‘‘(1) IN GENERAL.—The Board shall, by regulations, prohibit
or condition terms, acts or practices relating to residential
mortgage loans that the Board finds to be abusive, unfair,
deceptive, predatory, necessary or proper to ensure that respon-
sible, affordable mortgage credit remains available to con-
sumers in a manner consistent with the purposes of this section
and section 129C, necessary or proper to effectuate the purposes
of this section and section 129C, to prevent circumvention or
evasion thereof, or to facilitate compliance with such sections,
or are not in the interest of the borrower.
‘‘(2) APPLICATION.—The regulations prescribed under para-

LAWS graph (1) shall be applicable to all residential mortgage loans and shall be applied in the same manner as regulations pre- scribed under section 105.PUBLIC with on anorris VerDate Nov 24 2008 22:28 Sep 03, 2010 Jkt 089139 PO 00203 Frm 00767 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 PUBL203