Also left out Sec 3 - High-Cost Mortgage Definition, which also works in our favor. If you’re a licensed “retailer”, my read is that you’re now excluded from the definition assuming you don’t trip “compensation” issues, which is a bit unclear, but my guess is refers to usurious origination fees, etc, that we wouldn’t care about anyway. I’m curious to hear @frankrolfe view on this vs. rent credit or rent to own, and the pros/cons looking forward now. In a default scenario you’re dealing with a foreclosure process vs. a straight eviction which is more cumbersome, time consuming, and expensive. Nice to no longer have to deal with property taxes or insurance, but the reality is those costs can be baked into rent credit anyway.
SEC. 3. HIGH-COST MORTGAGE DEFINITION.
Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended—
(1) by redesignating subsection (aa) (relating to disclosure of greater amount or percentage), as so designated by section 1100A of the Consumer Financial Protection Act of 2010, as subsection (bb);
(2) by redesignating subsection (bb) (relating to high-cost mortgages), as so designated by section 1100A of the Consumer Financial Protection Act of 2010, as subsection (aa), and moving such subsection to immediately follow subsection (z); and
(3) in subsection (aa)(1)(A), as so redesignated—
(A) in clause (i)(I), by striking “(8.5 percentage points, if the dwelling is personal property and the transaction is for less than $50,000)” and inserting “(10 percentage points if the dwelling is personal property or is a transaction that does not include the purchase of real property on which a dwelling is to be placed, and the transaction is for less than $75,000 (as such amount is adjusted by the Bureau to reflect the change in the Consumer Price Index))”; and
(B) in clause (ii)—
(i) in subclause (I), by striking “or” at the end; and
(ii) by adding at the end the following:
“(III) notwithstanding subclauses (I) and (II), in the case of a transaction for less than $75,000 (as such amount is adjusted by the Bureau to reflect the change in the Consumer Price Index) in which the dwelling is personal property (or is a consumer credit transaction that does not include the purchase of real property on which a dwelling is to be placed) the greater of 5 percent of the total transaction amount or $3,000 (as such amount is adjusted by the Bureau to reflect the change in the Consumer Price Index); or”.