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Code · BILL · 116th Congress · H.R. 3621 (Received in Senate) — To amend the Fair Credit Reporting Act to remove adverse information for certain defaulted or delinquent private educ... · Sec. 404

Sec. 404. Credit restoration for victims of predatory mortgage lending and servicing

358 words·~2 min read·/bill/116/hr/3621/rds/section-404

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The Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq.) is amended by inserting after section 605B the following new section: A consumer reporting agency may not furnish any consumer report containing any adverse item of information relating to a covered residential mortgage loan (including the origination and servicing of such a loan, any loss mitigation activities related to such a loan, and any foreclosure, deed in lieu of foreclosure, or short sale related to such a loan), if the action or inaction to which the item of information relates— resulted from an unfair, deceptive, or abusive act or practice, or a fraudulent, discriminatory, or illegal activity of a financial institution, as determined by the Bureau or a court of competent jurisdiction; or is related to an unfair, deceptive, or abusive act, practice, or a fraudulent, discriminatory, or illegal activity of a financial institution that is the subject of a settlement agreement initiated on behalf of a consumer or consumers and that is between the financial institution and an agency or department of a local, State, or Federal Government, regardless of whether such settlement includes an admission of wrongdoing.
In this section, the term covered residential mortgage loan means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling (as defined in section 103(w) of the Truth in Lending Act), including a loan in which the proceeds will be used for— a manufactured home (as defined in section 603 of the Housing and Community Development Act of 1974); any installment sales contract, land contract, or contract for deed on a residential property; or a reverse mortgage transaction (as defined in section 103 of the Truth in Lending Act). .
The table of contents of the Fair Credit Reporting Act is amended by inserting after the item relating to section 605B the following new item: 605C. Credit restoration for victims of predatory mortgage lending. . The amendments made by this section shall take effect at the end of the 18-month period beginning on the date of the enactment of this Act.
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Sec. 404
Credit restoration for victims of predatory mortgage lending and servicing
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