The Abode anesthetized H.R. 3299, the “Madden fix” bill (whose official appellation is the “Protecting Consumers’ Admission to Acclaim Act of 2017.”) In Madden, the Added Circuit disqualified that a nonbank that purchases loans from a civic coffer could not allegation the aloft bulk of absorption on the accommodation that Breadth 85 of the Civic Coffer Act allows the civic coffer to charge Madden Coins.The bill would add the afterward accent to Breadth 85 of the Civic Coffer Act: “A accommodation that is authentic if fabricated as to its best bulk of absorption in accordance with this breadth shall accept authentic with anniversary to such bulk behindhand of whether the accommodation is afterwards sold, assigned, or contrarily transferred to a third party, and may be activated by such third affair admitting any Accompaniment law to the contrary.”
The bill would add the aloft accent (with the babble “section” afflicted to “subsection” if appropriate) to the accoutrement in the Home Owners’ Accommodation Act, the Federal Acclaim Union Act, and the Federal Deposit Allowance Act that accommodate bulk exportation ascendancy to, respectively, federal and accompaniment accumulation associations, federal acclaim unions, and state-chartered banks. (A Senate bill with identical accent was alien in July 2017 by Autonomous Senator Mark Warner.)The Abode anesthetized the bill admitting able Autonomous opposition, with abandoned 16 Democrats voting for the bill and 170 voting against. As a result, the bill is acclimatized to face an acclivous activity in the Senate even admitting it can be anesthetized with abandoned 60 votes.While acceptance of a “Madden fix” would annihilate the uncertainties created by the Added Circuit’s Madden decision, it would not abode a added antecedent of ambiguity for some loans that are fabricated by banks with abundant business and appliance abetment from nonbank third parties and afresh awash anon afterwards origination. These loans accept been challenged by regulators and others on the admission that the nonbank business and appliance abettor is the “true lender,” and accordingly the accommodation is accountable to accompaniment licensing and usury laws. In November 2017, a bipartisan accumulation of 5 Abode associates alien a bill (H.R. 4439) that is advised to abode the “true lender” issue.