Home Equity Lending Integrity Act

Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended—

(1) in subsection (dd)(5), by inserting, including a home equity investment loan, after means any consumer credit transaction; and

(2) by adding at the end the following:

The term home equity investment loan means a transaction that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or on residential real property, including any option, future, or other derivative between a person and a consumer where the consumer receives money (or any other item of value) in exchange for—

(1) an interest (or future interest) in a dwelling or residential real property; and

(2) a contingent or certain obligation to pay an amount based, in whole or in part, on the value of the dwelling or residential real property.

The Bureau of Consumer Financial Protection shall prescribe regulations that apply section 130 of the Truth in Lending Act (15 U.S.C. 1640) with respect to violations under that Act (15 U.S.C. 1601 et seq.) with respect to home equity investment loans (as defined in subsection (ff) of section 103 of that Act (15 U.S.C. 1602), as added by subsection (a) of this section).

It is the sense of Congress that the amendment made by subsection (a)(1) reflects the state of the Truth in Lending Act (15 U.S.C. 1601 et seq.), as in effect on the day before the date of enactment of this Act, and does not make any substantive change to how that Act is administered.