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124 STAT. 2142 PUBLIC LAW 111–203—JULY 21, 2010

‘‘(f) Section 129B and any regulations promulgated thereunder
do not apply to an extension of credit relating to a plan described
in section 101(53D) of title 11, United States Code.’’.
15 USC 1601 (b) DISCLOSURES.—Notwithstanding any other provision of this
note. title, in order to improve consumer awareness and understanding
of transactions involving residential mortgage loans through the
use of disclosures, the Board may, by rule, exempt from or modify
disclosure requirements, in whole or in part, for any class of residen-
tial mortgage loans if the Board determines that such exemption
or modification is in the interest of consumers and in the public
interest.

SEC. 1406. STUDY OF SHARED APPRECIATION MORTGAGES.
(a) STUDY.—The Secretary of Housing and Urban Development,
in consultation with the Secretary of the Treasury and other rel-
evant agencies, shall conduct a comprehensive study to determine
prudent statutory and regulatory requirements sufficient to provide
for the widespread use of shared appreciation mortgages to
strengthen local housing markets, provide new opportunities for
affordable homeownership, and enable homeowners at risk of fore-
closure to refinance or modify their mortgages.
(b) REPORT.—Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit a report
to the Congress on the results of the study, which shall include
recommendations for the regulatory and legislative requirements
referred to in subsection (a).

Subtitle B—Minimum Standards For
Mortgages

SEC. 1411. ABILITY TO REPAY. (a) IN GENERAL.— 15 USC 1639c (1) RULE OF CONSTRUCTION.—No regulation, order, or guid- note. ance issued by the Bureau under this title shall be construed as requiring a depository institution to apply mortgage under- writing standards that do not meet the minimum underwriting standards required by the appropriate prudential regulator of the depository institution. (2) AMENDMENT TO TRUTH IN LENDING ACT.—Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after section 129B (as added by section 1402(a)) the following new section:

15 USC 1639c. ‘‘§ 129C. Minimum standards for residential mortgage loans
‘‘(a) ABILITY TO REPAY.—
‘‘(1) IN GENERAL.—In accordance with regulations pre-
scribed by the Board, no creditor may make a residential mort-
gage loan unless the creditor makes a reasonable and good
faith determination based on verified and documented informa-
tion that, at the time the loan is consummated, the consumer
has a reasonable ability to repay the loan, according to its
terms, and all applicable taxes, insurance (including mortgage

LAWS guarantee insurance), and assessments. ‘‘(2) MULTIPLE LOANS.—If the creditor knows, or has reason to know, that 1 or more residential mortgage loans securedPUBLIC with on anorris VerDate Nov 24 2008 22:28 Sep 03, 2010 Jkt 089139 PO 00203 Frm 00768 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 PUBL203