H.R. 3081 would amend the Truth in Lending Act to protect consumers from certain practices in connection with the origination of consumer credit transactions secured by the consumer's principal dwelling.

== Detailed Summary ==

<summary>
(LogFairness for Homeowners Act of 2007 - Amends the Truth in Lending Act to editprohibit any creditor or mortgage broker from making, providing, or arranging for any consumer credit transaction secured by a consumer's principal dwelling without verifying the wikiconsumer's reasonable ability to make the scheduled payments of principal, interest (including variable interest), real estate taxes, homeowner's insurance, assessments, and bemortgage insurance premiums.

Prescribes criteria for determining the firstreasonable ability to providemake such payments.

Prohibits steering (arranging for a detailed summarylower investment grade credit transaction if the consumer qualifies for a higher investment grade transaction) and prepayment penalties for adjustable rate mortgages (ARMs) that are not jumbo mortgages.

Limits financed points, finance charges, and fees to 5% of a transaction's principal, unless the transaction is ensured or guaranteed by the Secretary of Housing and Urban Development, the Secretary of Veterans Affairs, or the Farmers Home Administration.

Specifies duties of agency for mortgage brokers acting to obtain or arrange for any consumer credit transaction secured by the consumer's principal dwelling.

Requires creditors and mortgage brokers to obtain independent verification that a borrower seeking to refinance a special mortgage has received counseling on the transaction's advisability. Defines &quot;special mortgage&quot; as one that: (1) was originated, subsidized, funded, or guaranteed by or through a state, tribal, or local government, or nonprofit organization; and (2) bears one or more specified nonstandard payment terms which substantially benefit the bill!)consumer.

Prescribes minimum financial requirements for mortgage brokers.

Excludes reverse mortgages from coverage by this Act.
</summary>

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== Status of the Legislation ==

<status>
Latest Major Action: 7/18/2007: Referred to House committee. Status: Referred to the House Committee on Financial Services.
</status>

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== Points in Favor ==

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== Points Against ==

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