Donald Riegle: “The first amendment I am going to send to the desk contains a number of improvements to subtitle B of title I of the…”

“The first amendment I am going to send to the desk contains a number of improvements to subtitle B of title I of the bill, the Home Ownership and Equity Protection Act. Significant concerns have been expressed about this legislation by other Senators and the lending industry. To address these concerns, Senator D'Amato and I have prepared this comprehensive amendment. I will briefly describe the most important of those changes. I ask unanimous consent that a summary of the amendment be printed in the Record. There being no objection, the summary was ordered to be printed in the Record, as follows: Summary of Riegle-D'Amato Amendment to Title I, Subtitle B, the Home Ownership and Equity Protection Act Revises the entire subtitle to eliminate the term 'High Cost Mortgage.' Treats credit insurance consistently with other sections of the Truth in Lending Act. Permits balloon payment structures on mortgages covered by the legislation, provided the loan is at least 5 years in length. Allows lenders to charge points and fees on refinancing, but directs Federal Reserve to address abuses in this area. Allows lenders to charge prepayment penalties on loans covered by the legislation for 1 year. Insulates assignees from liability if the loan documents do not indicate such potential liability.”