Section 1. Short title
This Act may be cited as the Home Affordability Through Mortgage Simplification Act.
Section 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:
(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.
(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).
(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.
(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.
(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.
Section 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:
(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.
Section 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.
(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.