Home Affordability Through Mortgage Simplification Act
- Bill Number
- H.R. 9459
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2026-06-25: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-07-09T22:43:19Z
AI-Generated Summary
Purpose This legislation amends the Truth in Lending Act to simplify mortgage disclosure rules, reduce compliance burdens on lenders, and make the homebuying process more efficient while maintaining consumer protections.
Key Provisions
- Closing cost variances: Creditors meet good-faith standards if the total closing costs at closing do not exceed the loan estimate by more than $500 or 5% of third-party fees (whichever is greater). Individual fee differences alone do not trigger violations.
- Origination charges: These remain under zero-tolerance rules, but a small exception allows clerical errors up to $25 if documented and the consumer's right to restitution is preserved.
- Waiting periods: The three-day waiting period for corrected disclosures resets only for rate increases over 0.125%, loan product changes, or addition of a prepayment penalty. Consumers may waive the three-day closing disclosure period.
- Revised estimates: Lenders may issue up to two revised loan estimates for non-material changes (without proving a "changed circumstance") if delivered at least seven days before closing; tolerances reset only for affected fees.
- Settlement agent reliance: Lenders avoid liability for closing disclosure errors caused solely by settlement agents if they exercise reasonable diligence in selection and oversight.
- APR accuracy: The annual percentage rate is considered accurate if it varies by no more than 0.125 percentage points; inaccuracies can be cured through post-closing adjustments that ensure the consumer pays no more than the disclosed rate over the loan's life.
- Reliance on guidance and cure periods: Lenders are protected from liability for good-faith reliance on Bureau of Consumer Financial Protection guidance. First-time violations carry no civil penalties if cured within 60 days of notice.
Significant Changes to Existing Law The bill modifies Regulation Z (12 CFR 1026.19) by expanding tolerance thresholds for closing costs and APR, limiting when waiting periods reset, and adding safe harbors and cure mechanisms not present in current rules. It also creates new protections for reliance on agency guidance and settlement agents.
Potential Impacts
- Government agencies: Requires the Bureau to issue clarifying rules within 180 days on diligence standards and to update Regulation Z for consistency.
- Citizens: May speed up mortgage closings and reduce costs by allowing more flexibility in disclosures and corrections.
- International relations: No direct effects identified.
Main Stakeholders Affected
- Mortgage lenders and creditors (reduced compliance risk and liability).
- Homebuyers and consumers (potentially faster processes with retained restitution rights).
- Settlement agents (increased reliance by lenders).
- Federal and state regulators (new notice-and-cure requirements).
- The Bureau of Consumer Financial Protection (rulemaking duties).
Notable Legal, Constitutional, or Political Implications The changes expand safe harbors and cure provisions, which could limit private lawsuits and regulatory penalties while preserving consumer rights to restitution. No constitutional issues are raised in the bill text; the focus remains on procedural simplifications within existing federal consumer credit law.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Fitzgerald, Scott [R-WI-5]
Recent Actions
- 2026-06-25: Referred to the House Committee on Financial Services.
- 2026-06-25: Introduced in House
- 2026-06-25: Introduced in House
Bill Versions
- Home Affordability Through Mortgage Simplification Act — issued 2026-06-25 — PDF (8 pages)